Note 2. Business Acquisition On February 1, 2020 (or, the  Acquisition Date ), we acquired from Conifex Timber Inc. all of the equity securities and membership interests in certain of its subsidiaries, the business of which consists mainly in the operation of three sawmills and related assets in Cross City (Florida) and in Glenwood and El Dorado (Arkansas) (or, the  U.S. Sawmill Business ). The U.S. Sawmill Business acquired produces construction-grade dimensional lumber and decking products from locally sourced southern yellow pine for distribution within the U.S. This acquisition will diversify our lumber production, and increase our operating capacity in the U.S. South. The fair value of the consideration, paid in cash, for the U.S. Sawmill Business acquired is $173 million. We intend to structure the acquisition as an asset purchase for tax purposes. We account for business combinations using the acquisition method as of the date control is transferred to us. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in Goodwill in our Consolidated Balance Sheets. Transaction costs are expensed as incurred in our Consolidated Statements of Operations. The following table summarizes our preliminary allocation of the purchase price to the fair values of assets acquired and liabilities assumed at the Acquisition Date: (Unaudited, in millions) Current assets (1) $ 19 Fixed assets 114 Amortizable intangible assets (2) 21 Operating lease right-of-use assets 2 Goodwill (3) 31 Total assets acquired and goodwill $ 187 Current liabilities $ 11 Long-term debt, net of current portion 2 Operating lease liabilities, net of current portion 1 Total liabilities assumed $ 14 Net assets acquired $ 173 Fair value of consideration transferred $ 173 (1) Includes cash and cash equivalents of $1 million. (2) These intangible assets are being amortized over a weighted-average useful life of 10 years. The fair value of the customer relationships was determined using the income approach through an excess earnings analysis discounted at a rate of 12.6%. (3) The goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to the U.S. Sawmill Businesss assembled workforce and synergies expected from combining our operations with the U.S. Sawmill Business. Goodwill has been assigned to the wood products reportable segment for the purposes of impairment testing. The total amount of goodwill is deductible for tax purposes. The allocation of the purchase price to assets acquired and liabilities assumed was based upon a preliminary valuation for all items and may be subject to adjustment during the 12-month measurement period following the Acquisition Date since we are finalizing the assumptions in regards to the fair values of these assets and liabilities. The allocation of the purchase price was based on managements estimate of the fair values of the acquired identifiable assets and assumed liabilities using valuation techniques including income, cost and market approaches. We utilized both the cost and market approaches to value fixed assets, and both the income and cost approaches to value intangible assets (Level 3). From the Acquisition Date to the nine months period ended September 30, 2020, our consolidated financial results included sales of $98 million and net income of $32 million attributable to the U.S. Sawmill Business. In connection with the acquisition of the U.S. Sawmill Business, we also recognized transaction costs of $3 million in Other (expense) income, net in our Consolidated Statements of Operations for the nine months ended September 30, 2020. The following unaudited pro forma information for the three and nine months ended September 30, 2020 and 2019, represents our results of operations as if the acquisition of the U.S. Sawmill Business had occurred on January 1, 2019, excluding the results of operations of the El Dorado sawmill that has been idled since October 2019. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. Three Months Ended September 30, Nine Months Ended September 30, (Unaudited, in millions) 2020 2019 2020 2019 Sales $ 730 $ 729 $ 2,039 $ 2,328 Net income (loss) attributable to Resolute Forest Products Inc. $ 57 $ (48) $ 65 $ 6