Long-Term Debt (Tables)

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of long-term debt

Long-Term debt, net of discounts where applicable, is summarized as follows (in millions):

	December 31, 2018			September 30, 2018
3.25 percent convertible notes due 2037(1)(3)	$	319		$	318
4.0 percent convertible notes due 2027(1)(4)	24			24
7.875 percent convertible notes due 2026(1)(5)	22			22
6.25 percent notes due 2024(2)(6)	444			444
Capital lease obligation	7			7
Borrowings and securitization	124			46
Unamortized discount on convertible notes (7)	(37		)	(37		)
Subtotal	903			824
Less: current maturities	(172		)	(94		)
Long-term debt	$	731		$	730

⁽¹⁾ The 3.25 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2025, 2019 and 2020, respectively.

⁽²⁾ The 6.25 percent notes contain a call option, which allows for early redemption by Meritor.

⁽³⁾ The 3.25 percent convertible notes are presented net of $6 million and $7 million unamortized issuance costs as of December 31, 2018 and September 30, 2018, respectively.

⁽⁴⁾ The 4.0 percent convertible notes are presented net of unamortized issuance costs of an insignificant amount as of December 31, 2018 and September 30, 2018.

⁽⁵⁾ The 7.875 percent convertible notes are presented net of unamortized issuance costs of an insignificant amount as of December 31, 2018 and September 30, 2018, and $1 million original issuance discount as of December 31, 2018 and September 30, 2018.

⁽⁶⁾ The 6.25 percent notes are presented net of $6 million unamortized issuance costs as of December 31, 2018 and September 30, 2018, respectively.

⁽⁷⁾ The carrying amount of the equity component related to convertible debt.