INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES

The company’s non-consolidated joint ventures and related direct ownership interest are as follows:



	September 30,
	2015		2014		2013
Meritor WABCO Vehicle Control Systems (Commercial Truck & Industrial)	50	%	50	%	50	%
Master Sistemas Automotivos Ltda. (Commercial Truck & Industrial)	49	%	49	%	49	%
Sistemas Automotrices de Mexico S.A. de C.V. (Commercial Truck & Industrial)	50	%	50	%	50	%
Ege Fren Sanayii ve Ticaret A.S. (Commercial Truck & Industrial)	49	%	49	%	49	%
Automotive Axles Limited (Commercial Truck & Industrial)	36	%	36	%	36	%
ZF Meritor LLC (Commercial Truck & Industrial)	—	%	50	%	50	%

In June 2014, ZF Meritor LLC, a joint venture between ZF Friedrichshafen AG and the company's subsidiary, Meritor Transmission LLC, entered into a settlement agreement with Eaton Corporation relating to an antitrust lawsuit filed by ZF Meritor in 2006. Pursuant to the terms of the settlement agreement, Eaton agreed to pay $500 million to ZF Meritor. In July 2014, ZF Meritor received proceeds of $400 million net of attorney's contingency fees. In July 2014, the company received proceeds of $210 million representing its share based on the company's ownership interest in ZF Meritor and including a recovery of current and prior years' attorney expenses paid by Meritor. ZF Meritor and Meritor Transmission agreed to dismiss all pending antitrust litigation with Eaton. ZF Meritor did not have any operating activities and was dissolved in fiscal year 2015.

The company's pre-tax share of the settlement was $210 million ($209 million after-tax), of which $190 million was recognized as equity in earnings of ZF Meritor, and $20 million for the recovery of legal expenses from ZF Meritor was recognized as a reduction of selling, general and administrative expenses in the consolidated statement of operations. The company recognized the recovery in SG&A as the historical incurrence of these costs was included in SG&A in the consolidated statement of operations in prior periods.

The company’s investments in non-consolidated joint ventures are as follows (in millions):



	September 30,
	2015		2014
Commercial Truck & Industrial	$	96	$	106
Aftermarket & Trailer	—		—
Total investments in non-consolidated joint ventures	$	96	$	106

The company’s equity in earnings of non-consolidated joint ventures is as follows (in millions):



	Year Ended September 30,
	2015		2014		2013
Commercial Truck & Industrial	$	39	$	38	$	36
Aftermarket & Trailer	—		—		6
Total equity in earnings of affiliates	$	39	$	38	$	42

The summarized financial information presented below represents the combined accounts of the company’s non-consolidated joint ventures related to its continuing operations (in millions):



	September 30,
	2015		2014
Current assets	$	393	$	441
Non-current assets	140		152
Total assets	$	533	$	593

Current liabilities	$	239	$	262
Non-current liabilities	111		127
Total liabilities	$	350	$	389



	Year Ended September 30,
	2015		2014		2013
Sales	$	1,288	$	1,268	$	1,552
Gross profit	187		167		201
Net income	83		458		96

Dividends received from the company’s non-consolidated joint ventures were $32 million in fiscal year 2015, $36 million in fiscal year 2014 and $30 million in fiscal year 2013.

The company had sales to its non-consolidated joint ventures of approximately $5 million, $3 million and $11 million in fiscal years 2015, 2014 and 2013, respectively. These sales exclude sales of $135 million, $141 million and $151 million in fiscal years 2015, 2014 and 2013, respectively, to a joint venture in the company’s Commercial Truck & Industrial segment, which are eliminated as the company purchases these components back after value add provided by the joint venture. The company had purchases from its non-consolidated joint ventures of approximately $855 million, $760 million and $885 million in fiscal years 2015, 2014 and 2013, respectively. Additionally, the company leases space and provides certain administrative and technical services to various non-consolidated joint ventures. The company collected $9 million, $5 million and $8 million for such leases and services during fiscal years 2015, 2014 and 2013, respectively.

Amounts due from the company’s non-consolidated joint ventures were $35 million and $46 million at September 30, 2015 and 2014, respectively, and are included in Receivables, trade and other, net in the consolidated balance sheet. Amounts due to the company’s non-consolidated joint ventures were $107 million and $101 million at September 30, 2015 and 2014, respectively, and are included in Accounts payable in the consolidated balance sheet.

The fair value of the company’s investment in its Automotive Axles Limited joint venture was approximately $57 million and $59 million at September 30, 2015 and 2014, respectively, based on quoted market prices as this joint venture is listed and publicly traded on the Bombay Stock Exchange in India.

The company holds a variable interest in a joint venture accounted for under the equity method of accounting. The joint venture manufactures components for commercial vehicle applications primarily on behalf of the company. The variable interest relates to a supply arrangement between the company and the joint venture whereby the company supplies certain components to the joint venture on a cost-plus basis. The company is not the primary beneficiary of the joint venture, as the joint venture partner has shared or absolute control over key manufacturing operations, labor relationships, financing activities and certain other functions of the joint venture. Therefore, the company does not consolidate the joint venture. At September 30, 2015 and 2014, the company’s investment in the joint venture was $42 million and $43 million, respectively, representing the company’s maximum exposure to loss. This amount is included in investments in non-consolidated joint ventures (see Note 12).