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SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2015
Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]  
Schedule of Condensed Consolidating Statement of Operations
 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2014
 
Parent
 
Guarantors
 
Non-Guarantors
 
Elims
 
Consolidated
Sales
 
 
 
 
 
 
 
 
 
External
$
—

 
$
1,467

 
$
2,299

 
$
—

 
$
3,766

Subsidiaries
—

 
142

 
62

 
(204
)
 
—

Total sales
—

 
1,609

 
2,361

 
(204
)
 
3,766

Cost of sales
(56
)
 
(1,343
)
 
(2,084
)
 
204

 
(3,279
)
GROSS MARGIN
(56
)
 
266

 
277

 
—

 
487

Selling, general and administrative
(65
)
 
(102
)
 
(91
)
 
—

 
(258
)
Restructuring costs
—

 
(1
)
 
(9
)
 
—

 
(10
)
Other operating expense, net
(1
)
 
(1
)
 
—

 
—

 
(2
)
OPERATING INCOME (LOSS)
(122
)
 
162

 
177

 
—

 
217

Other income (expense), net
35

 
23

 
(58
)
 
—

 
—

Equity in earnings of ZF Meritor
—

 
190

 
—

 
—

 
190

Equity in earnings of affiliates
—

 
30

 
8

 
—

 
38

Interest income (expense), net
(159
)
 
35

 
(6
)
 
—

 
(130
)
INCOME (LOSS) BEFORE INCOME TAXES
(246
)
 
440

 
121

 
—

 
315

Provision for income taxes
—

 
(1
)
 
(30
)
 
—

 
(31
)
Equity income from continuing operations of subsidiaries
525

 
71

 
—

 
(596
)
 
—

INCOME FROM CONTINUING OPERATIONS
279

 
510

 
91

 
(596
)
 
284

LOSS FROM DISCONTINUED OPERATIONS, net of tax
(30
)
 
$
(31
)
 
$
(12
)
 
$
43

 
$
(30
)
NET INCOME
249

 
479

 
79

 
(553
)
 
254

Less: Net income attributable to noncontrolling interests
—

 
—

 
(5
)
 
—

 
(5
)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
$
249

 
$
479

 
$
74

 
$
(553
)
 
$
249

 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Sales
 
 
 
 
 
 
 
 
 
External
$
—

 
$
1,734

 
$
1,771

 
$
—

 
$
3,505

Subsidiaries
—

 
129

 
71

 
(200
)
 
—

Total sales
—

 
1,863

 
1,842

 
(200
)
 
3,505

Cost of sales
(52
)
 
(1,579
)
 
(1,612
)
 
200

 
(3,043
)
GROSS MARGIN
(52
)
 
284

 
230

 
—

 
462

Selling, general and administrative
(53
)
 
(118
)
 
(72
)
 
—

 
(243
)
Pension settlement loss
—

 
—

 
(59
)
 
—

 
(59
)
Restructuring costs
(2
)
 
(5
)
 
(9
)
 
—

 
(16
)
Goodwill impairment
—

 
(15
)
 
—

 
—

 
(15
)
Other operating income (expense), net
(2
)
 
(2
)
 
3

 
—

 
(1
)
OPERATING INCOME (LOSS)
(109
)
 
144

 
93

 
—

 
128

       Other income (expense), net
36

 
18

 
(49
)
 
—

 
5

Equity in earnings of affiliates
—

 
36

 
3

 
—

 
39

Interest income (expense), net
(138
)
 
26

 
7

 
—

 
(105
)
INCOME (LOSS) BEFORE INCOME TAXES
(211
)
 
224

 
54

 
—

 
67

Provision for income taxes
(2
)
 
2

 
(1
)
 
—

 
(1
)
Equity income from continuing operations of subsidiaries
278

 
38

 
—

 
(316
)
 
—

INCOME FROM CONTINUING OPERATIONS
65

 
264

 
53

 
(316
)
 
66

LOSS FROM DISCONTINUED OPERATIONS, net of tax
(1
)
 
(2
)
 
(3
)
 
5

 
(1
)
NET INCOME
64

 
262

 
50

 
(311
)
 
65

Less: Net income attributable to noncontrolling interests
—

 
—

 
(1
)
 
—

 
(1
)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
$
64

 
$
262

 
$
49

 
$
(311
)
 
$
64

 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2013
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Sales
 
 
 
 
 
 
 
 
 
External
$
—

 
$
1,409

 
$
2,263

 
$
—

 
$
3,672

Subsidiaries
—

 
136

 
56

 
(192
)
 
—

Total sales
—

 
1,545

 
2,319

 
(192
)
 
3,672

Cost of sales
(54
)
 
(1,339
)
 
(2,076
)
 
192

 
(3,277
)
GROSS MARGIN
(54
)
 
206

 
243

 
—

 
395

Selling, general and administrative
(72
)
 
(87
)
 
(94
)
 
—

 
(253
)
Restructuring costs
(3
)
 
(8
)
 
(12
)
 
—

 
(23
)
Pension Settlement losses
(73
)
 
—

 
(36
)
 
—

 
(109
)
Other operating expense, net
(2
)
 
(1
)
 
—

 
—

 
(3
)
OPERATING INCOME (LOSS)
(204
)
 
110

 
101

 
—

 
7

Other income (expense), net
39

 
21

 
(57
)
 
—

 
3

Gain on sale of equity investment
—

 
60

 
65

 
—

 
125

Equity in earnings of affiliates
—

 
24

 
18

 
—

 
42

Interest income (expense), net
(154
)
 
34

 
(6
)
 
—

 
(126
)
INCOME (LOSS) BEFORE INCOME TAXES
(319
)
 
249

 
121

 
—

 
51

Provision for income taxes
(1
)
 
(17
)
 
(46
)
 
—

 
(64
)
Equity income from continuing operations of subsidiaries
305

 
57

 
—

 
(362
)
 
—

INCOME FROM CONTINUING OPERATIONS
(15
)
 
289

 
75

 
(362
)
 
(13
)
LOSS FROM DISCONTINUED OPERATIONS, net of tax
(7
)
 
(8
)
 
(237
)
 
245

 
(7
)
NET INCOME
(22
)
 
281

 
(162
)
 
(117
)
 
(20
)
Less: Net income attributable to noncontrolling interests
—

 
—

 
(2
)
 
—

 
(2
)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
$
(22
)
 
$
281

 
$
(164
)
 
$
(117
)
 
$
(22
)
Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss)
 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Net income (loss)
$
249

 
$
479

 
$
79

 
$
(553
)
 
$
254

Other comprehensive income (loss)
(15
)
 
(54
)
 
25

 
29

 
(15
)
Total comprehensive income
234

 
425

 
104

 
(524
)
 
239

Less: Comprehensive income attributable to
noncontrolling interests
—

 
—

 
(5
)
 
—

 
(5
)
Comprehensive income attributable to Meritor, Inc.
$
234

 
$
425

 
$
99

 
$
(524
)
 
$
234

 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2013
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Net income
$
(22
)
 
$
281

 
$
(162
)
 
$
(117
)
 
$
(20
)
Other comprehensive income (loss)
181

 
13

 
(12
)
 
(1
)
 
181

Total comprehensive income (loss)
159

 
294

 
(174
)
 
(118
)
 
161

Less: Comprehensive income attributable to
noncontrolling interests
—

 
—

 
(2
)
 
—

 
(2
)
Comprehensive income (loss) attributable to Meritor, Inc.
$
159

 
$
294

 
$
(176
)
 
$
(118
)
 
$
159

 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Net income
$
64

 
$
262

 
$
50

 
$
(311
)
 
$
65

Other comprehensive loss
(19
)
 
(61
)
 
(16
)
 
77

 
(19
)
Total comprehensive income
45

 
201

 
34

 
(234
)
 
46

Less: Comprehensive income attributable to
noncontrolling interests
2

 
—

 
(1
)
 
—

 
1

Comprehensive income attributable to Meritor, Inc.
$
47

 
$
201

 
$
33

 
$
(234
)
 
$
47
Schedule of Condensed Consolidating Balance Sheet
 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING BALANCE SHEET
(In millions)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
73

 
$
6

 
$
114

 
$
—

 
$
193

Receivables, trade and other, net
1

 
40

 
420

 
—

 
461

Inventories
—

 
159

 
179

 
—

 
338

Other current assets
4

 
20

 
26

 
—

 
50

TOTAL CURRENT ASSETS
78

 
225

 
739

 
—

 
1,042

NET PROPERTY
15

 
183

 
221

 
—

 
419

GOODWILL
—

 
219

 
183

 
—

 
402

OTHER ASSETS(1)
61

 
129

 
142

 
—

 
332

INVESTMENTS IN SUBSIDIARIES
2,354

 
313

 
—

 
(2,667
)
 
—

TOTAL ASSETS
$
2,508

 
$
1,069

 
$
1,285

 
$
(2,667
)
 
$
2,195

CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Short-term debt
$
1

 
$
4

 
$
10

 
$
—

 
$
15

Accounts and notes payable
55

 
213

 
306

 
—

 
574

Other current liabilities
93

 
83

 
103

 
—

 
279

TOTAL CURRENT LIABILITIES
149

 
300

 
419

 
—

 
868

LONG-TERM DEBT(1)
1,017

 
6

 
13

 
—

 
1,036

RETIREMENT BENEFITS
603

 
—

 
29

 
—

 
632

INTERCOMPANY PAYABLE (RECEIVABLE)
1,365

 
(1,886
)
 
521

 
—

 
—

OTHER LIABILITIES
45

 
217

 
43

 
—

 
305

EQUITY (DEFICIT) ATTRIBUTABLE TO
       MERITOR, INC.
(671
)
 
2,432

 
235

 
(2,667
)
 
(671
)
NONCONTROLLING INTERESTS
—

 
—

 
25

 
—

 
25

TOTAL LIABILITIES AND EQUITY (DEFICIT)
$
2,508

 
$
1,069

 
$
1,285

 
$
(2,667
)
 
$
2,195

(1)
Prior year amounts have been recast to reflect the early adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.

 
MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING BALANCE SHEET
(In millions)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
71

 
$
5

 
$
171

 
$
—

 
$
247

Receivables, trade and other, net
1

 
45

 
564

 
—

 
610

Inventories
—

 
151

 
228

 
—

 
379

Other current assets
9

 
18

 
29

 
—

 
56

TOTAL CURRENT ASSETS
81

 
219

 
992

 
—

 
1,292

NET PROPERTY
13

 
158

 
253

 
—

 
424

GOODWILL
—

 
277

 
154

 
—

 
431

OTHER ASSETS(1)
58

 
128

 
152

 
—

 
338

INVESTMENTS IN SUBSIDIARIES
2,185

 
267

 
—

 
(2,452
)
 
—

TOTAL ASSETS
$
2,337

 
$
1,049

 
$
1,551

 
$
(2,452
)
 
$
2,485

CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Short-term debt
$
1

 
$
3

 
$
3

 
$
—

 
$
7

Accounts and notes payable
46

 
230

 
404

 
—

 
680

Other current liabilities
97

 
87

 
167

 
—

 
351

TOTAL CURRENT LIABILITIES
144

 
320

 
574

 
—

 
1,038

LONG-TERM DEBT(1)
899

 
10

 
39

 
—

 
948

RETIREMENT BENEFITS
656

 
—

 
119

 
—

 
775

INTERCOMPANY PAYABLE (RECEIVABLE)
1,198

 
(1,736
)
 
538

 
—

 
—

OTHER LIABILITIES
52

 
208

 
49

 
—

 
309

EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.
(612
)
 
2,247

 
205

 
(2,452
)
 
(612
)
NONCONTROLLING INTERESTS
—

 
—

 
27

 
—

 
27

TOTAL LIABILITIES AND EQUITY(DEFICIT)
$
2,337

 
$
1,049

 
$
1,551

 
$
(2,452
)
 
$
2,485
Schedule of Condensed Consolidating Statement of Cash Flows
MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES
$
57

 
62

 
(22
)
 
$
—

 
$
97

INVESTING ACTIVITIES
 
 
 
 
 
 
 

 
 
Capital expenditures
(4
)
 
(41
)
 
(34
)
 
—

 
(79
)
Proceeds from sale of property
—

 
—

 
4

 
—

 
4

Cash paid for acquisition of Morganton
—

 
(16
)
 
—

 
—

 
(16
)
Net investing cash flows provided by discontinued operations
—

 
1

 
3

 
—

 
4

CASH USED FOR INVESTING ACTIVITIES
(4
)
 
(56
)
 
(27
)
 
—

 
(87
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 

 
 
Proceeds from debt issuances
225

 
—

 
—

 
—

 
225

Repayment of notes and term loan
(199
)
 
—

 
—

 
—

 
(199
)
Other financing cash flows
—

 
(5
)
 
(4
)
 
—

 
(9
)
Repurchase of common stock
(55
)
 
—

 
—

 
—

 
(55
)
Debt issuance costs
(4
)
 
—

 
—

 
—

 
(4
)
Intercompany advances
—

 
—

 
—

 
—

 
—

CASH USED FOR FINANCING ACTIVITIES
(33
)
 
(5
)
 
(4
)
 
—

 
(42
)
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
—

 
—

 
(22
)
 
—

 
(22
)
CHANGE IN CASH AND CASH EQUIVALENTS
2

 
1

 
(57
)
 
—

 
(54
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
71

 
5

 
171

 
—

 
247

CASH AND CASH EQUIVALENTS AT END OF YEAR
$
73

 
$
6

 
$
114

 
$
—

 
$
193

MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES
$
245

 
$
34

 
$
(64
)
 
$
—

 
$
215

INVESTING ACTIVITIES
 
 
 
 
 
 
 

 
 
Capital expenditures
(4
)
 
(37
)
 
(36
)
 
—

 
(77
)
Net investing cash flows provided by discontinued operations
—

 
4

 
3

 
—

 
7

CASH USED FOR INVESTING ACTIVITIES
(4
)
 
(33
)
 
(33
)
 
—

 
(70
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 

 
 
Proceeds from debt issuance
225

 
—

 
—

 
—

 
225

Repayment of notes and term loan
(439
)
 
—

 
—

 
—

 
(439
)
Debt issuance costs
(10
)
 
—

 
—

 
—

 
(10
)
Other financing cash flows
—

 
(2
)
 
14

 
—

 
12

Intercompany advances
(90
)
 
—

 
90

 
—

 
—

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
(314
)
 
(2
)
 
104

 
—

 
(212
)
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
—

 
—

 
(4
)
 
—

 
(4
)
CHANGE IN CASH AND CASH EQUIVALENTS
(73
)
 
(1
)
 
3

 
—

 
(71
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
144

 
6

 
168

 
—

 
318

CASH AND CASH EQUIVALENTS AT END OF YEAR
$
71

 
$
5

 
$
171

 
$
—

 
$
247

 
MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2013
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES
$
34

 
$
(63
)
 
$
(67
)
 
$
—

 
$
(96
)
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Capital expenditures
(3
)
 
(26
)
 
(25
)
 
—

 
(54
)
Proceeds from sale of equity investment
—

 
87

 
95

 
—

 
182

Other investing activities
2

 
1

 


 
—

 
3

Net investing cash flows provided by discontinued operations
—

 
3

 
3

 
—

 
6

CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES
(1
)
 
65

 
73

 
—

 
137

FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
500

 
—

 
—

 
—

 
500

Repayment of notes and term loan
(475
)
 
—

 
—

 
—

 
(475
)
Debt issuance costs
(12
)
 
—

 
—

 
—

 
(12
)
Other financing cash flows
—

 
1

 
10

 
—

 
11

Intercompany advances
7

 
—

 
(7
)
 
—

 
—

CASH PROVIDED BY FINANCING ACTIVITIES
20

 
1

 
3

 
—

 
24

EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
—

 
—

 
(4
)
 
—

 
(4
)
CHANGE IN CASH AND CASH EQUIVALENTS
53

 
3

 
5

 
—

 
61

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
91

 
3

 
163

 
—

 
257

CASH AND CASH EQUIVALENTS AT END OF YEAR
$
144

 
$
6

 
$
168

 
$
—

 
$
318