Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating statement of operations



	Three Months Ended March 31, 2017
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	391		$	415		$	—		$	806
Subsidiaries	—			30			14			(44		)	—
Total sales	—			421			429			(44		)	806
Cost of sales	(15		)	(345		)	(369		)	44			(685		)
GROSS MARGIN	(15		)	76			60			—			121
Selling, general and administrative	(20		)	(35		)	(11		)	—			(66		)
Restructuring costs	—			(2		)	(2		)	—			(4		)
Other operating expense, net	(2		)	—			—			—			(2		)
OPERATING INCOME (LOSS)	(37		)	39			47			—			49
Other income (expense), net	25			(5		)	(20		)	—			—
Equity in earnings of affiliates	—			6			2			—			8
Interest income (expense), net	(34		)	9			4			—			(21		)
INCOME (LOSS) BEFORE INCOME TAXES	(46		)	49			33			—			36
Provision for income taxes	15			(15		)	(13		)	—			(13		)
Equity income (loss) from continuing operations of subsidiaries	53			13			—			(66		)	—
INCOME (LOSS) FROM CONTINUING OPERATIONS	22			47			20			(66		)	23
LOSS FROM DISCONTINUED OPERATIONS, net of tax	—			—			—			—			—
NET INCOME (LOSS)	22			47			20			(66		)	23
Less: Net income attributable to noncontrolling interests	—			—			(1		)	—			(1		)
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC.	$	22		$	47		$	19		$	(66	)	$	22



	Three Months Ended March 31, 2016
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	420		$	401		$	—		$	821
Subsidiaries	—			28			16			(44		)	—
Total sales	—			448			417			(44		)	821
Cost of sales	(12		)	(369		)	(363		)	44			(700		)
GROSS MARGIN	(12		)	79			54			—			121
Selling, general and administrative	(19		)	(21		)	(20		)	—			(60		)
Restructuring costs	—			(1		)	(1		)	—			(2		)
Other operating expense, net	(3		)	—			—			—			(3		)
OPERATING INCOME (LOSS)	(34		)	57			33			—			56
Other income (expense), net	35			(9		)	(28		)	—			(2		)
Equity in earnings of affiliates	—			7			—			—			7
Interest income (expense), net	(28		)	7			—			—			(21		)
INCOME (LOSS) BEFORE INCOME TAXES	(27		)	62			5			—			40
Provision for income taxes	—			—			(7		)	—			(7		)
Equity income (loss) from continuing operations of subsidiaries	60			(6		)	—			(54		)	—
INCOME (LOSS) FROM CONTINUING OPERATIONS	33			56			(2		)	(54		)	33
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(1		)	(2		)	(1		)	3			(1		)
NET INCOME (LOSS)	32			54			(3		)	(51		)	32
Less: Net income attributable to noncontrolling interests	—			—			—			—			—
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC.	$	32		$	54		$	(3	)	$	(51	)	$	32



	Six Months Ended March 31, 2017
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	716		$	789		$	—		$	1,505
Subsidiaries	—			56			26			(82		)	—
Total sales	—			772			815			(82		)	1,505
Cost of sales	(29		)	(642		)	(706		)	82			(1,295		)
GROSS MARGIN	(29		)	130			109			—			210
Selling, general and administrative	(43		)	(53		)	(23		)	—			(119		)
Restructuring costs	2			(2		)	(4		)	—			(4		)
Other operating expense, net	(2		)	—			(3		)	—			(5		)
OPERATING INCOME (LOSS)	(72		)	75			79			—			82
Other income (expense), net	24			(5		)	(19		)	—			—
Equity in earnings of affiliates	—			15			3			—			18
Interest income (expense), net	(67		)	19			6			—			(42		)
INCOME (LOSS) BEFORE INCOME TAXES	(115		)	104			69			—			58
Provision for income taxes	35			(35		)	(19		)	—			(19		)
Equity income (loss) from continuing operations of subsidiaries	117			41			—			(158		)	—
INCOME (LOSS) FROM CONTINUING OPERATIONS	37			110			50			(158		)	39
LOSS FROM DISCONTINUED OPERATIONS, net of tax	—			—			—			—			—
NET INCOME (LOSS)	37			110			50			(158		)	39
Less: Net income attributable to noncontrolling interests	—			—			(2		)	—			(2		)
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC.	$	37		$	110		$	48		$	(158	)	$	37



	Six Months Ended March 31, 2016
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	837		$	793		$	—		$	1,630
Subsidiaries	—			55			32			(87		)	—
Total sales	—			892			825			(87		)	1,630
Cost of sales	(26		)	(746		)	(720		)	87			(1,405		)
GROSS MARGIN	(26		)	146			105			—			225
Selling, general and administrative	(39		)	(42		)	(35		)	—			(116		)
Restructuring costs	—			(1		)	(2		)	—			(3		)
Other operating expense, net	(3		)	—			—			—			(3		)
OPERATING INCOME (LOSS)	(68		)	103			68			—			103
Other income (loss), net	34			(9		)	(26		)	—			(1		)
Equity in earnings of affiliates	—			16			1			—			17
Interest income (expense), net	(59		)	15			1			—			(43		)
INCOME (LOSS) BEFORE INCOME TAXES	(93		)	125			44			—			76
Provision for income taxes	—			—			(14		)	—			(14		)
Equity income from continuing operations of subsidiaries	154			21			—			(175		)	—
INCOME FROM CONTINUING OPERATIONS	61			146			30			(175		)	62
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(3		)	(5		)	(4		)	9			(3		)
NET INCOME	58			141			26			(166		)	59
Less: Net income attributable to noncontrolling interests	—			—			(1		)	—			(1		)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	58		$	141		$	25		$	(166	)	$	58

Schedule of condensed consolidating statement of comprehensive income (loss)



	Three Months Ended March 31, 2017
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income (loss)	$	22	$	47	$	20		$	(66	)	$	23
Other comprehensive income (loss)	30		—		21			(19		)	32
Total comprehensive income (loss)	52		47		41			(85		)	55
Less: Comprehensive income attributable to noncontrolling interests	—		—		(2		)	—			(2		)
Comprehensive income (loss) attributable to Meritor, Inc.	$	52	$	47	$	39		$	(85	)	$	53



	Three Months Ended March 31, 2016
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income (loss)	$	32	$	54	$	(3	)	$	(51	)	$	32
Other comprehensive income (loss)	18		23		(10		)	(13		)	18
Total comprehensive income (loss)	50		77		(13		)	(64		)	50
Less: Comprehensive income attributable to noncontrolling interests	—		—		—			—			—
Comprehensive income (loss) attributable to Meritor, Inc.	$	50	$	77	$	(13	)	$	(64	)	$	50



	Six Months Ended March 31, 2017
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income (loss)	$	37	$	110	$	50		$	(158	)	$	39
Other comprehensive income (loss)	14		2		(6		)	4			14
Total comprehensive income (loss)	51		112		44			(154		)	53
Less: Comprehensive income attributable to noncontrolling interests	—		—		(1		)	—			(1		)
Comprehensive income (loss) attributable to Meritor, Inc.	$	51	$	112	$	43		$	(154	)	$	52



	Six Months Ended March 31, 2016
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income	$	58	$	141	$	26		$	(166	)	$	59
Other comprehensive income (loss)	24		12		(2		)	(10		)	24
Total comprehensive income	82		153		24			(176		)	83
Less: Comprehensive income attributable to noncontrolling interests	—		—		(1		)	—			(1		)
Comprehensive income attributable to Meritor, Inc.	$	82	$	153	$	23		$	(176	)	$	82

Schedule of condensed consolidating balance sheet



	March 31, 2017
	Parent			Guarantors			Non- Guarantors		Elims			Consolidated
CURRENT ASSETS:
Cash and cash equivalents ⁽¹⁾	$	67		$	4		$	67	$	—		$	138
Receivables trade and other, net ⁽¹⁾	1			57			384		—			442
Inventories ⁽¹⁾	—			151			187		—			338
Other current assets	7			14			21		—			42
TOTAL CURRENT ASSETS	75			226			659		—			960
NET PROPERTY	22			202			206		—			430
GOODWILL ⁽¹⁾	—			219			166		—			385
OTHER ASSETS	443			130			188		—			761
INVESTMENTS IN SUBSIDIARIES	2,728			714			—		(3,442		)	—
TOTAL ASSETS	$	3,268		$	1,491		$	1,219	$	(3,442	)	$	2,536
CURRENT LIABILITIES:
Short-term debt	$	128		$	3		$	1	$	—		$	132
Accounts and notes payable ⁽¹⁾	40			198			290		—			528
Other current liabilities	85			73			87		—			245
TOTAL CURRENT LIABILITIES	253			274			378		—			905
LONG-TERM DEBT	848			1			8		—			857
RETIREMENT BENEFITS	659			—			21		—			680
INTERCOMPANY PAYABLE (RECEIVABLE)	1,629			(1,859		)	230		—			—
OTHER LIABILITIES	29			149			41		—			219
MEZZANINE EQUITY	13			—			—		—			13
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.	(163		)	2,926			516		(3,442		)	(163		)
NONCONTROLLING INTERESTS ⁽¹⁾	—			—			25		—			25
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	3,268		$	1,491		$	1,219	$	(3,442	)	$	2,536

⁽¹⁾ As of March 31, 2017, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $6 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. These assets and liabilities held for sale are included in the Non-Guarantors column.



	September 30, 2016
	Parent			Guarantors			Non- Guarantors		Elims			Consolidated
CURRENT ASSETS:
Cash and cash equivalents ⁽¹⁾	$	90		$	4		$	66	$	—		$	160
Receivables trade and other, net ⁽¹⁾	1			39			356		—			396
Inventories ⁽¹⁾	—			143			173		—			316
Other current assets	5			12			16		—			33
TOTAL CURRENT ASSETS	96			198			611		—			905
NET PROPERTY ⁽¹⁾	22			198			219		—			439
GOODWILL	—			219			171		—			390
OTHER ASSETS	447			132			181		—			760
INVESTMENTS IN SUBSIDIARIES	2,575			679			—		(3,254		)	—
TOTAL ASSETS	$	3,140		$	1,426		$	1,182	$	(3,254	)	$	2,494
CURRENT LIABILITIES:
Short-term debt	$	1		$	4		$	9	$	—		$	14
Accounts and notes payable ⁽¹⁾	42			172			261		—			475
Other current liabilities	90			74			104		—			268
TOTAL CURRENT LIABILITIES	133			250			374		—			757
LONG-TERM DEBT	971			3			8		—			982
RETIREMENT BENEFITS	680			—			23		—			703
INTERCOMPANY PAYABLE (RECEIVABLE)	1,534			(1,768		)	234		—			—
OTHER LIABILITIES	34			162			42		—			238
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.	(212		)	2,779			476		(3,254		)	(211		)
NONCONTROLLING INTERESTS ⁽¹⁾	—			—			25		—			25
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	3,140		$	1,426		$	1,182	$	(3,254	)	$	2,494

⁽¹⁾ As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.These assets and liabilities held for sale are included in the Non-Guarantors column.

Schedule of condensed consolidating statement of cash flows



	Six Months Ended March 31, 2017
	Parent			Guarantors			Non- Guarantors			Elims		Consolidated
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	$	(51	)	$	21		$	60		$	—	$	30
INVESTING ACTIVITIES
Capital expenditures	(6		)	(21		)	(13		)	—		(40		)
Net investing cash flows provided by discontinued operations	—			2			—			—		2
CASH USED FOR INVESTING ACTIVITIES	(6		)	(19		)	(13		)	—		(38		)
FINANCING ACTIVITIES
Debt issuance costs	(4		)	—			—			—		(4		)
Intercompany advances	38			—			(38		)	—		—
Other financing activities	—			(2		)	(9		)	—		(11		)
CASH USED FOR FINANCING ACTIVITIES	34			(2		)	(47		)	—		(15		)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	—			—			1			—		1
CHANGE IN CASH AND CASH EQUIVALENTS	(23		)	—			1			—		(22		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	90			4			66			—		160
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	67		$	4		$	67		$	—	$	138



	Six Months Ended March 31, 2016
	Parent			Guarantors			Non- Guarantors			Elims		Consolidated
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	$	(20	)	$	18		$	41		$	—	$	39
INVESTING ACTIVITIES
Capital expenditures	(12		)	(22		)	(13		)	—		(47		)
Other investing activities	—			4			(1		)	—		3
Net investing cash flows provided by discontinued operations	—			1			3			—		4
CASH USED FOR INVESTING ACTIVITIES	(12		)	(17		)	(11		)	—		(40		)
FINANCING ACTIVITIES
Repayment of notes	(55		)	—			—			—		(55		)
Repurchase of common stock	(43		)	—			—			—		(43		)
Intercompany advances	81			—			(81		)	—		—
Other financing activities	—			(2		)	—			—		(2		)
CASH USED FOR FINANCING ACTIVITIES	(17		)	(2		)	(81		)	—		(100		)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	—			—			2			—		2
CHANGE IN CASH AND CASH EQUIVALENTS	(49		)	(1		)	(49		)	—		(99		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	73			6			114			—		193
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	24		$	5		$	65		$	—	$	94