ACQUISITIONS AND DIVESTITURE (Tables)

12 Months Ended

Sep. 30, 2019

Schedule of Pro Forma Financial Information

Pro forma financial information of the company is presented in the following table for the years ended September 30, 2019 and 2018 as if the AxleTech acquisition had occurred on October 1, 2017. The pro forma financial information is unaudited and is provided for informational purposes only and does not purport to be indicative of the results which would have actually been attained had the acquisition occurred on October 1, 2017 (in millions).



	Pro Forma Combined
	Year Ended September 30,
	2019		2018
	(Unaudited)
Sales	$	4,590	$	4,413
Net income attributable to Meritor, Inc. ⁽¹⁾	$	360	$	121

(1) Fiscal year 2019 includes the sale of EV Systems

Schedule of Purchase Price Allocation

The provisional purchase price allocation, which is subject to change and may be subsequently adjusted to reflect final valuation results and other adjustments, is shown below (in millions).



	July 26, 2019
Purchase price	$	179

Assets acquired and liabilities assumed
Cash	11
Receivables	37
Inventories	70
Identifiable intangible assets	46
Other assets	9
PP&E	26
Accounts payable	(33		)
Other liabilities	(48		)
Identifiable net assets acquired	118

Goodwill resulting from the acquisition of AxleTech	61
	$	179



		Estimated Fair Value
		As of September 30, 2017			Measurement Period Adjustments			As of September 30, 2018
Purchase price		$	34		$	—		$	34

Assets acquired and liabilities assumed
	Receivables	5			—			5
	Inventories	13			(1		)	12
	Property, plant and equipment	9			(2		)	7
	Intangible assets	—			3			3
	Accounts payable	(6		)	—			(6		)
	Other current liabilities	(6		)	(1		)	(7		)
Total identifiable net assets acquired		15			(1		)	14

Goodwill resulting from the acquisition of Fabco		19			1			20
		$	34		$	—		$	34