Business Combinations Acquisition of WABCO Automotive South Africa On December 1, 2017, the Company acquired the remaining 51% interest in its South African partnership with Sturrock and Robson Industries Pty Ltd. for total consideration of $7.9 million , of which $7.4 million was paid in cash and $0.5 million related to non-cash consideration for payables from the partnership assumed in acquisition accounting. This acquisition extends the Company's global product portfolio, including its recently acquired product lines, to the Sub-Saharan region and further improves the Company's proximity to customers in this region. The acquisition of the remaining interests was accounted for as a step-acquisition, resulting in a net gain on remeasurement of equity method investment of $4.2 million . This included a $6.0 million gain related to the remeasurement of the Company's existing equity method investment to the acquisition date fair value of $7.1 million , offset by the release of foreign currency translation of $1.8 million associated with the equity method investment prior to the acquisition. As part of the transaction, the consolidated interest in the South African partnership was integrated into the newly formed WABCO South Africa Pty Ltd. (WABCO South Africa). The allocation of the purchase consideration to the assets acquired and liabilities assumed as of the acquisition date remains preliminary as of September 30, 2018 , pending a final valuation of deferred taxes and intangible assets. The following table summarizes the preliminary allocation of the net purchase consideration: (Amounts in millions) Accounts receivable $ 1.8 Inventory 1.4 Other current assets 0.3 Property, plant and equipment 1.1 Intangible assets 7.3 Total liabilities (1.4 ) Identifiable net assets $ 10.5 Goodwill 4.5 Total estimated fair value of net assets $ 15.0 Less: fair value of equity method investment (7.1 ) Net purchase consideration $ 7.9 The intangible assets include amounts recognized for the fair value of distribution rights. The fair value of intangible assets was determined based on an income and cost approach. The intangible assets are being amortized over a weighted-average useful life of approximately 10 years. The goodwill generated is primarily attributable to expected synergies and is not deductible for tax purposes. The transaction-related costs were expensed as incurred and were recorded within operating expenses. The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented and as a result, no pro forma financial statements have been presented. Acquisition of Meritor WABCO Vehicle Control Systems (now known as WABCO USA LLC) On October 1, 2017, the Company acquired the remaining interest in its Meritor WABCO joint venture from Meritor Inc. for $250.0 million , less cash acquired of $16.4 million , resulting in net cash consideration of $233.6 million . A final closing partnership distribution was received by Meritor immediately prior to acquisition, which effectively reduced their ownership interest from 50% to 49.21% . This acquisition of the remaining 49.21% interest in Meritor WABCO unifies the Company's operations in North America and allows customers to access an integrated WABCO product portfolio and benefit from an integrated supply chain. In connection with the acquisition, the Company entered into a new ten-year distribution agreement with a Meritor affiliate to serve as the exclusive distributor for a certain range of WABCOs Aftermarket products in the U.S. and Canada and its non-exclusive distributor in Mexico. The Company has the option to reacquire the distribution rights, and Meritor has the option to put these distribution rights to the Company, at certain points in the next three and half years for an exercise price between $225 million and $265 million , based on the earnings of the distribution business. The acquisition of Meritor WABCO was accounted for as a step-acquisition. The equity investment held by the Company immediately prior to acquisition was remeasured to an acquisition-date fair value of $258.0 million based on the pro rata value of the new equity interest acquired given that prior to the final closing partnership distribution, both partners had equal proportions of equity interest in the prior joint venture with the same rights and preferences, and that the acquired equity interest was consummated on an arms length basis by knowledgeable, unrelated parties. This valuation was corroborated by applying an income approach that utilized discounted future estimated cash flows based on projections of revenues and expenses and our weighted-average cost of capital. The resulting gain on remeasurement of equity method investment amounted to $243.5 million . During the nine month period ended September 30, 2018 , adjustments to the purchase price allocation were not material. The allocation of the purchase consideration to the assets acquired and liabilities assumed as of the acquisition date is final as of September 30, 2018 . The following table summarizes the final allocation of the net purchase consideration: (Amounts in millions) Cash and cash equivalents $ 16.4 Accounts receivable 38.6 Inventories 43.5 Other current assets 0.3 Property, plant and equipment 2.1 Intangible assets 165.0 Accounts payable (56.2 ) Accrued liabilities (17.4 ) Identifiable net assets acquired $ 192.3 Goodwill 321.0 Total fair value of net assets 513.3 Less: fair value of equity method investment $ (258.0 ) Less: elimination of unrealized profits on inventory (5.3 ) Net purchase consideration $ 250.0 The intangible assets include amounts recognized for the fair value of trade name and customer-based assets. The fair value of intangible assets was determined based on an income and cost approach. The intangible assets are being amortized over a weighted-average useful life of approximately 42 years. The goodwill generated is primarily attributable to expected synergies and its portion relating to the step-acquisition is deductible for tax purposes. The transaction-related costs were expensed as incurred and were recorded within operating expenses.The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented and as a result, no pro forma financial statements have been presented. Acquisition of R.H. Sheppard Co., Inc. On September 18, 2017 , the Company acquired R.H. Sheppard Co., Inc. (Sheppard) for cash consideration of $158.8 million , excluding cash acquired of $17.1 million , resulting in net cash paid of $141.7 million . During the first quarter of 2018, the purchase price was adjusted under the purchase agreement for an additional cash payment of $6.4 million , bringing the total purchase price to $165.2 million . Sheppard is a supplier of steering technologies, precision-engineered engine pumps and remanufacturing services for commercial vehicles. The allocation of the purchase consideration to the assets acquired and liabilities assumed as of the acquisition date is final as of September 30, 2018 . During the three -month period ended September 30, 2018 , the Company made adjustments to the purchase price allocation, to increase other liabilities by $8.0 million , and to decrease inventories, intangible assets, deferred tax liabilities and accrued expenses by $3.3 million , $4.6 million , $3.2 million and $1.1 million , respectively, resulting in a total net increase of $11.6 million to goodwill from the second quarter of 2018 preliminary purchase price allocation. During the nine -month period ended September 30, 2018 , the Company made adjustments to the purchase price allocation, to increase property, plant and equipments and other liabilities by $17.4 million and $8.0 million , respectively, and to decrease inventories, intangible assets, accrued expenses and deferred tax liabilities by $3.3 million , $2.8 million , $0.5 million and $3.2 million , respectively. This resulted in a total net decrease of $0.6 million to goodwill, considering the increase to the purchase price of $6.4 million mentioned above. The following table summarizes the allocation of the net purchase consideration: (Amounts in millions) Cash and cash equivalents $ 17.1 Accounts receivable 17.5 Inventories 21.4 Other current assets 1.1 Property, plant and equipment 66.4 Intangible assets 23.1 Other assets acquired 4.8 Trade payables (4.3 ) Accrued expenses (4.2 ) Deferred tax liabilities (22.6 ) Other liabilities (8.0 ) Identifiable net assets acquired $ 112.3 Goodwill 52.9 Net purchase consideration $ 165.2 The intangible assets include amounts recognized for the fair value customer-based assets and developed technology. The fair value of intangible assets was determined based on an income and cost approach. The intangible assets are being amortized over a weighted-average useful life of approximately 14 years. The goodwill generated is primarily attributable to expected synergies and is not deductible for tax purposes. The transaction-related costs were expensed as incurred and were recorded within operating expenses. The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented and as a result, no pro forma financial statements have been presented. Other Acquisitions On June 6, 2018 , the Company acquired Asset Trackr Private Limited ( Asset Trackr) for total purchase consideration of $2.9 million , primarily for goodwill and intangible assets. Of the total purchase consideration, $2.2 million has been paid and the remaining cash consideration is expected to be paid in the next 18 months, in accordance with the terms of the acquisition agreement. Asset Trackr is an India-based start-up company that helps commercial vehicle fleets track, analyze and optimize their transportation resources and assets in real time.