Question-and-Answer Session
Operator
(Operator Instructions). And our first question will come from the line of Jonathan Steinmetz with Morgan Stanley. Please proceed.
Jonathan Steinmetz - Morgan Stanley
Great, thanks. Good morning everyone.
Jim Donlon
Good morning Jonathan.
Jonathan Steinmetz - Morgan Stanley
Just a few follow-up questions here on the cash flow, specifically on the payables on slide 14. Could you go into a little bit more detail, you listed four factors here. Which was the largest in terms of the drain, and can you be a little bit more specific about some of these payments that distress suppliers cost you?
Jim Donlon
Well, I would just mostly say that the biggest factor overall Jonathan, is more expeditious rate of dealing with our payables than was our previous practice. We've been working on some service centers and some collection of various activities from individual plants into better servicing center. And as we have done that, we find that we are paying at a more expeditious rate than we previously had before.
Jonathan Steinmetz - Morgan Stanley
And the reason you made that change and is that desirable?
Jim Donlon
It's difficult from a cash flow standpoint, but it is appropriate for interaction with our suppliers and our vendors and over the term, we will get to a better cost situation for ArvinMeritor with the bringing together of our efforts from individual plants into service centers.
Jonathan Steinmetz - Morgan Stanley
Okay. Do you get better [returns] in terms of pricing for doing that then?
Jim Donlon
As we would reduce variability with the supply community overtime, that may be possible, but in the short term, that's not something that is an immediate driving factor.
Jonathan Steinmetz - Morgan Stanley
Okay. And do you have any specific number on what the payments that the distressed suppliers cost you?
Jim Donlon
We won't say. It's a significant double-digit number, but we won't go into a specific numbers. It was significant.
Jonathan Steinmetz - Morgan Stanley
Okay, two other quick questions. One, how much you gave a walk on the LVS side with the 0.5 from Europe and South America as a benefit, can you just comment on between those two reasons with South America especially important. And then secondly on LVS, you also talked about a legal or commercial dispute. Can you just clarify those about $10 million, what exactly was that?
Chip McClure
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