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Business Segment Information
 6 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
The company defines its operating segments as components of its business where separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The company’s Chief Operating Decision Maker (CODM) is the Chief Executive Officer.
      The company has two reportable segments at March 31, 2015, as follows:
•
The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, primarily for medium- and heavy-duty trucks, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. This segment also includes the company's aftermarket businesses in Asia Pacific and South America; and
•
The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement parts to commercial vehicle and industrial aftermarket customers. This segment also supplies a wide variety of undercarriage products and systems for trailer applications in North America.

     Segment EBITDA is defined as income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization, non-controlling interests in consolidated joint ventures, loss on sale of receivables, restructuring expense and asset impairment charges. The company uses Segment EBITDA as the primary basis for the CODM to evaluate the performance of each of its reportable segments.
     The accounting policies of the segments are the same as those applied in the Consolidated Financial Statements, except for the use of Segment EBITDA. The company may allocate certain common costs, primarily corporate functions, between the segments differently than the company would for stand alone financial information prepared in accordance with GAAP. These allocated costs include expenses for shared services such as information technology, finance, communications, legal and human resources. The company does not allocate interest expense and certain legacy and other corporate costs not directly associated with the Segments’ EBITDA. Amounts related to prior quarters have been recast to reflect Mascot in discontinued operations (see Note 4).
     Segment information is summarized as follows (in millions):
 
Commercial Truck
& Industrial
 
Aftermarket
& Trailer
 
Eliminations
 
Total
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
External Sales
$
660

 
$
204

 
$
—

 
$
864

Intersegment Sales
21

 
8

 
(29
)
 
—

Total Sales
$
681

 
$
212

 
$
(29
)
 
$
864

Three Months Ended March 31, 2014
 
 
 
 
 
 
 
External Sales
$
736

 
$
218

 
$
—

 
$
954

Intersegment Sales
27

 
7

 
(34
)
 
—

Total Sales
$
763

 
$
225

 
$
(34
)
 
$
954

 
 
 
 
 
 
 
 
 
Commercial Truck
& Industrial
 
Aftermarket
& Trailer
 
Eliminations
 
Total
Six Months Ended March 31, 2015
 
 
 
 
 
 
 
External Sales
$
1,338

 
$
405

 
$
—

 
$
1,743

Intersegment Sales
46

 
15

 
(61
)
 
—

Total Sales
$
1,384

 
$
420

 
$
(61
)
 
$
1,743

Six Months Ended March 31, 2014
 
 
 
 
 
 
 
External Sales
$
1,439

 
$
415

 
$
—

 
$
1,854

Intersegment Sales
51

 
12

 
(63
)
 
—

Total Sales
$
1,490

 
$
427

 
$
(63
)
 
$
1,854



 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014 (2)
 
2015
 
2014 (2)
Segment EBITDA:
 
 
 
 
 
 
 
Commercial Truck & Industrial
$
57

 
$
57

 
$
113

 
$
110

Aftermarket & Trailer
30

 
24

 
55

 
45

Segment EBITDA
87


81


168

 
155

Unallocated legacy and corporate costs, net (1)
—

 
(1
)
 
(2
)
 
(3
)
Interest expense, net
(21
)
 
(48
)
 
(40
)
 
(75
)
Provision for income taxes
(6
)
 
(8
)
 
(13
)
 
(19
)
Depreciation and amortization
(17
)
 
(17
)
 
(32
)
 
(33
)
Noncontrolling interests
—

 
(2
)
 
(1
)
 
(4
)
Loss on sale of receivables
(1
)
 
(2
)
 
(3
)
 
(5
)
Restructuring costs
(3
)
 
(2
)
 
(6
)
 
(3
)
Income from continuing operations attributable to Meritor, Inc.
$
39


$
1


$
71

 
$
13


(1)
Unallocated legacy and corporate costs, net represents items that are not directly related to the company's business segments. These costs primarily include asbestos-related charges, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability.
(2) Amounts for prior periods have been recast for discontinued operations.

Segment Assets:
March 31,
2015
 
September 30,
2014
Commercial Truck & Industrial
$
1,657

 
$
1,755

Aftermarket & Trailer
441

 
458

Total segment assets
2,098

 
2,213

Corporate (1)
473

 
533

Less: Accounts receivable sold under off-balance sheet factoring programs (2)
(254
)
 
(244
)
Total assets
$
2,317

 
$
2,502


(1) 
Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs.
(2) 
At March 31, 2015 and September 30, 2014, segment assets include $254 million and $244 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (see Note 8). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.