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SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2019
Condensed Financial Information Disclosure [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, 2018 (1)
 
Parent
 
Guarantors
 
Non-Guarantors
 
Elims
 
Consolidated
Sales
 
 
 
 
 
 
 
 
 
External
$
—

 
$
2,290

 
$
1,888

 
$
—

 
$
4,178

Subsidiaries
—

 
143

 
219

 
(362
)
 
—

Total sales
—

 
2,433

 
2,107

 
(362
)
 
4,178

Cost of sales
(74
)
 
(2,037
)
 
(1,804
)
 
362

 
(3,553
)
GROSS MARGIN
(74
)
 
396

 
303

 
—

 
625

Selling, general and administrative
(91
)
 
(104
)
 
(118
)
 
—

 
(313
)
Restructuring costs
(1
)
 
(3
)
 
(2
)
 
—

 
(6
)
Other operating expense, net
(14
)
 
(1
)
 
1

 
—

 
(14
)
OPERATING INCOME (LOSS)
(180
)
 
288

 
184

 
—

 
292

Other income (expense), net
77

 
17

 
(68
)
 
—

 
26

Equity in earnings of affiliates
—

 
19

 
8

 
—

 
27

Interest income (expense), net
(118
)
 
29

 
22

 
—

 
(67
)
INCOME (LOSS) BEFORE INCOME TAXES
(221
)
 
353

 
146

 
—

 
278

Benefit (provision) for income taxes
(2
)
 
(81
)
 
(66
)
 
—

 
(149
)
Equity income from continuing operations of subsidiaries
343

 
88

 
—

 
(431
)
 
—

INCOME FROM CONTINUING OPERATIONS
120

 
360

 
80

 
(431
)
 
129

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

 
(3
)
NET INCOME
117

 
359

 
79

 
(429
)
 
126

Less: Net income attributable to noncontrolling interests
—

 
—

 
(9
)
 
—

 
(9
)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
$
117

 
$
359

 
$
70

 
$
(429
)
 
$
117



(1) Prior period has been recast for ASU 2017-07, Compensation Retirement Benefits (Topic 715).



 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Sales
 
 
 
 
 
 
 
 
 
External
$
—

 
$
2,621

 
$
1,767

 
$
—

 
$
4,388

Subsidiaries
—

 
110

 
201

 
(311
)
 
—

Total sales
—

 
2,731

 
1,968

 
(311
)
 
4,388

Cost of sales
(65
)
 
(2,298
)
 
(1,696
)
 
311

 
(3,748
)
GROSS MARGIN
(65
)
 
433

 
272

 
—

 
640

Selling, general and administrative
(92
)
 
(127
)
 
(37
)
 
—

 
(256
)
Restructuring costs
—

 
(6
)
 
(2
)
 
—

 
(8
)
Other operating expense, net
(3
)
 
(10
)
 
—

 
—

 
(13
)
OPERATING INCOME (LOSS)
(160
)
 
290

 
233

 
—

 
363

       Other income (expense), net
50

 
36

 
(46
)
 
—

 
40

Equity in earnings of affiliates
—

 
21

 
10

 
—

 
31

Interest income (expense), net
(130
)
 
47

 
26

 
—

 
(57
)
INCOME (LOSS) BEFORE INCOME TAXES
(240
)
 
394

 
223

 
—

 
377

Benefit (provision) for income taxes
53

 
(84
)
 
(51
)
 
—

 
(82
)
Equity income from continuing operations of subsidiaries
477

 
108

 
—

 
(585
)
 
—

INCOME FROM CONTINUING OPERATIONS
290

 
418

 
172

 
(585
)
 
295

LOSS FROM DISCONTINUED OPERATIONS, net of tax
1

 
—

 
—

 
—

 
1

NET INCOME
291

 
418

 
172

 
(585
)
 
296

Less: Net income attributable to noncontrolling interests
—

 
—

 
(5
)
 
—

 
(5
)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
$
291

 
$
418

 
$
167

 
$
(585
)
 
$
291


 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2017 (1)
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Sales
 
 
 
 
 
 
 
 
 
External
$
—

 
$
1,762

 
$
1,585

 
$
—

 
$
3,347

Subsidiaries
—

 
123

 
149

 
(272
)
 
—

Total sales
—

 
1,885

 
1,734

 
(272
)
 
3,347

Cost of sales
(37
)
 
(1,583
)
 
(1,502
)
 
272

 
(2,850
)
GROSS MARGIN
(37
)
 
302

 
232

 
—

 
497

Selling, general and administrative
(82
)
 
(100
)
 
(84
)
 
—

 
(266
)
Restructuring costs
2

 
(2
)
 
(6
)
 
—

 
(6
)
Other operating expense, net
(3
)
 
(1
)
 
(3
)
 
—

 
(7
)
OPERATING INCOME (LOSS)
(120
)
 
199

 
139

 
—

 
218

Other income (expense), net
14

 
(11
)
 
(12
)
 
—

 
(9
)
Gain on sale of equity investment
—

 
243

 
—

 
—

 
243

Equity in earnings of affiliates
—

 
42

 
6

 
—

 
48

Interest income (expense), net
(168
)
 
35

 
14

 
—

 
(119
)
INCOME (LOSS) BEFORE INCOME TAXES
(274
)
 
508

 
147

 
—

 
381

Benefit (provision) for income taxes
96

 
(126
)
 
(22
)
 
—

 
(52
)
Equity income from continuing operations of subsidiaries
503

 
114

 
—

 
(617
)
 
—

INCOME FROM CONTINUING OPERATIONS
325

 
496

 
125

 
(617
)
 
329

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

 
(1
)
NET INCOME
324

 
495

 
124

 
(615
)
 
328

Less: Net income attributable to noncontrolling interests
—

 
—

 
(4
)
 
—

 
(4
)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
$
324

 
$
495

 
$
120

 
$
(615
)
 
$
324



(1) Prior period has been recast for ASU 2017-07, Compensation Retirement Benefits (Topic 715).
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, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Net income
$
291

 
$
418

 
$
172

 
$
(585
)
 
$
296

Other comprehensive income, net of tax
(115
)
 
(62
)
 
(64
)
 
125

 
(116
)
Total comprehensive income
176

 
356

 
108

 
(460
)
 
180

Less: Comprehensive income attributable to
noncontrolling interests
—

 
—

 
(4
)
 
—

 
(4
)
Comprehensive income attributable to Meritor, Inc.
$
176

 
$
356

 
$
104

 
$
(460
)
 
$
176


 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2017 (1)
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Net income
$
324

 
$
495

 
$
124

 
$
(615
)
 
$
328

Other comprehensive income, net of tax
264

 
21

 
23

 
(44
)
 
264

Total comprehensive income
588

 
516

 
147

 
(659
)
 
592

Less: Comprehensive income attributable to
noncontrolling interests
—

 
—

 
(4
)
 
—

 
(4
)
Comprehensive income attributable to Meritor, Inc.
$
588

 
$
516

 
$
143

 
$
(659
)
 
$
588



(1) Prior period has been recast for ASU 2017-07, Compensation Retirement Benefits (Topic 715).


 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2018 (1)
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
Net income
$
117

 
$
359

 
$
79

 
$
(429
)
 
$
126

Other comprehensive income, net of tax
(21
)
 
(42
)
 
(41
)
 
81

 
(23
)
Total comprehensive income
96

 
317

 
38

 
(348
)
 
103

Less: Comprehensive income attributable to
noncontrolling interests
—

 
—

 
(7
)
 
—

 
(7
)
Comprehensive income attributable to Meritor, Inc.
$
96

 
$
317

 
$
31

 
$
(348
)
 
$
96


 
(1) Prior period has been recast for ASU 2017-07, Compensation Retirement Benefits (Topic 715).
Schedule of Condensed Consolidating Balance Sheet
 MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING BALANCE SHEET
(In millions)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
4

 
$
4

 
$
100

 
$
—

 
$
108

Receivables, trade and other, net
3

 
92

 
456

 
—

 
551

Inventories
—

 
292

 
234

 
—

 
526

Other current assets
6

 
10

 
15

 
—

 
31

TOTAL CURRENT ASSETS
13

 
398

 
805

 
—

 
1,216

NET PROPERTY
21

 
260

 
234

 
—

 
515

GOODWILL
—

 
337

 
141

 
—

 
478

OTHER ASSETS
170

 
225

 
211

 
—

 
606

INVESTMENTS IN SUBSIDIARIES
4,432

 
899

 
—

 
(5,331
)
 
—

TOTAL ASSETS
$
4,636

 
$
2,119

 
$
1,391

 
$
(5,331
)
 
$
2,815

CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Short-term debt
$
32

 
$
—

 
$
9

 
$
—

 
$
41

Accounts and notes payable
53

 
283

 
274

 
—

 
610

Other current liabilities
77

 
109

 
99

 
—

 
285

TOTAL CURRENT LIABILITIES
162

 
392

 
382

 
—

 
936

LONG-TERM DEBT
898

 
—

 
4

 
—

 
902

RETIREMENT BENEFITS
312

 
1

 
23

 
—

 
336

INTERCOMPANY PAYABLE (RECEIVABLE)
2,833

 
(3,005
)
 
172

 
—

 
—

OTHER LIABILITIES
46

 
112

 
68

 
—

 
226

MEZZANINE EQUITY
—

 
—

 
—

 
—

 
—

EQUITY ATTRIBUTABLE TO
       MERITOR, INC.
385

 
4,619

 
712

 
(5,331
)
 
385

NONCONTROLLING INTERESTS
—

 
—

 
30

 
—

 
30

TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY
$
4,636

 
$
2,119

 
$
1,391

 
$
(5,331
)
 
$
2,815


 
MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING BALANCE SHEET
(In millions)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
24

 
$
6

 
$
85

 
$
—

 
$
115

Receivables, trade and other, net
2

 
62

 
524

 
—

 
588

Inventories
—

 
242

 
235

 
—

 
477

Other current assets
6

 
12

 
28

 
—

 
46

TOTAL CURRENT ASSETS
32

 
322

 
872

 
—

 
1,226

NET PROPERTY
24

 
241

 
218

 
—

 
483

GOODWILL
—

 
250

 
171

 
—

 
421

OTHER ASSETS
179

 
182

 
235

 
—

 
596

INVESTMENTS IN SUBSIDIARIES
3,583

 
855

 
—

 
(4,438
)
 
—

TOTAL ASSETS
$
3,818

 
$
1,850

 
$
1,496

 
$
(4,438
)
 
$
2,726

CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Short-term debt
$
47

 
$
—

 
$
47

 
$
—

 
$
94

Accounts and notes payable
64

 
297

 
339

 
—

 
700

Other current liabilities
77

 
71

 
142

 
—

 
290

TOTAL CURRENT LIABILITIES
188

 
368

 
528

 
—

 
1,084

LONG-TERM DEBT
726

 
—

 
4

 
—

 
730

RETIREMENT BENEFITS
241

 
—

 
21

 
—

 
262

INTERCOMPANY PAYABLE (RECEIVABLE)
2,325

 
(2,640
)
 
315

 
—

 
—

OTHER LIABILITIES
50

 
124

 
158

 
—

 
332

MEZZANINE EQUITY
1

 
—

 
—

 
—

 
1

EQUITY ATTRIBUTABLE TO MERITOR, INC.
287

 
3,998

 
440

 
(4,438
)
 
287

NONCONTROLLING INTERESTS
—

 
—

 
30

 
—

 
30

TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY
$
3,818

 
$
1,850

 
$
1,496

 
$
(4,438
)
 
$
2,726
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, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
$
91

 
$
49

 
$
116

 
$
—

 
$
256

INVESTING ACTIVITIES
 
 
 
 
 
 
 

 
 
Capital expenditures
(4
)
 
(50
)
 
(49
)
 
—

 
(103
)
Cash paid for investment in Transportation Power, Inc.
(6
)
 
—

 
—

 
—

 
(6
)
Cash paid for business acquisitions, net of cash acquired
(168
)
 
—

 
—

 
—

 
(168
)
Other investing activities
6

 
—

 
—

 
—

 
6

CASH (USED FOR) INVESTING ACTIVITIES
(172
)
 
(50
)
 
(49
)
 
—

 
(271
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 

 
 
Securitization
—

 
—

 
(38
)
 
—

 
(38
)
Redemption of notes
(24
)
 
—

 
—

 
—

 
(24
)
Term loan borrowings
175

 
—

 
—

 
—

 
175

Intercompany advances
11

 
—

 
(11
)
 
—

 
—

Repurchase of common stock
(96
)
 
—

 
—

 
—

 
(96
)
Deferred issuance costs
(4
)
 
—

 
—

 
—

 
(4
)
Other financing activities
(1
)
 
(1
)
 
—

 
—

 
(2
)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
61

 
(1
)
 
(49
)
 
—

 
11

EFFECT OF CHANGES IN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
—

 
—

 
(3
)
 
—

 
(3
)
CHANGE IN CASH AND CASH EQUIVALENTS
(20
)
 
(2
)
 
15

 
—

 
(7
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
24

 
6

 
85

 
—

 
115

CASH AND CASH EQUIVALENTS AT END OF YEAR
$
4

 
$
4

 
$
100

 
$
—

 
$
108

MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES
$
59

 
$
55

 
$
137

 
$
—

 
$
251

INVESTING ACTIVITIES
 
 
 
 
 
 
 

 
 
Capital expenditures
(10
)
 
(49
)
 
(45
)
 
—

 
(104
)
Cash paid for business acquisitions, net of cash acquired
(35
)
 
—

 
—

 
—

 
(35
)
Cash paid for investment in Transportation Power, Inc.
(6
)
 
—

 
—

 
—

 
(6
)
Proceeds from sale of equity method investment
250

 
—

 
—

 
—

 
250

Other investing activities
4

 
—

 
2

 
—

 
6

CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES
203

 
(49
)
 
(43
)
 
—

 
111

FINANCING ACTIVITIES
 
 
 
 
 
 
 

 
 
Securitization
—

 
—

 
(43
)
 
—

 
(43
)
Redemption of notes
(181
)
 
—

 
—

 
—

 
(181
)
Repurchase of common stock
(100
)
 
—

 
—

 
—

 
(100
)
Other financing activities
(2
)
 
(3
)
 
—

 
—

 
(5
)
Intercompany advances
35

 
—

 
(35
)
 
—

 
—

CASH USED FOR FINANCING ACTIVITIES
(248
)
 
(3
)
 
(78
)
 
—

 
(329
)
EFFECT OF CHANGES IN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
—

 
—

 
(6
)
 
—

 
(6
)
CHANGE IN CASH AND CASH EQUIVALENTS
14

 
3

 
10

 
—

 
27

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
10

 
3

 
75

 
—

 
88

CASH AND CASH EQUIVALENTS AT END OF YEAR
$
24

 
$
6

 
$
85

 
$
—

 
$
115



 
MERITOR, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30, 2017
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Elims
 
Consolidated
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
$
33

 
$
85

 
$
58

 
$
—

 
$
176

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Capital expenditures
(9
)
 
(51
)
 
(35
)
 
—

 
(95
)
Cash paid for business acquisitions, net of cash acquired
—

 
(32
)
 
(2
)
 
—

 
(34
)
Net investing cash flows provided by discontinued operations
—

 
2

 
—

 
—

 
2

CASH USED FOR INVESTING ACTIVITIES
(9
)
 
(81
)
 
(37
)
 
—

 
(127
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Securitization
—

 
—

 
89

 
—

 
89

Proceeds from debt issuance
325

 
—

 
—

 
—

 
325

Redemption of notes
(103
)
 
—

 
—

 
—

 
(103
)
Repayment of notes and term loan
(408
)
 
—

 
—

 
—

 
(408
)
Other financing activities
(1
)
 
(3
)
 
(9
)
 
—

 
(13
)
Debt issuance costs
(12
)
 
—

 
—

 
—

 
(12
)
Intercompany advances
95

 
—

 
(95
)
 
—

 
—

CASH USED FOR FINANCING ACTIVITIES
(104
)
 
(3
)
 
(15
)
 
—

 
(122
)
EFFECT OF CHANGES IN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
—

 
—

 
1

 
—

 
1

CHANGE IN CASH AND CASH EQUIVALENTS
(80
)
 
1

 
7

 
—

 
(72
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
90

 
2

 
68

 
—

 
160

CASH AND CASH EQUIVALENTS AT END OF YEAR
$
10

 
$
3

 
$
75

 
$
—

 
$
88