Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Statement of Operations

	Three Months Ended December 31, 2019
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	535		$	366		$	—		$	901
Subsidiaries	—			23			35			(58		)	—
Total sales	—			558			401			(58		)	901
Cost of sales	(16		)	(469		)	(347		)	58			(774		)
GROSS MARGIN	(16		)	89			54			—			127
Selling, general and administrative	(24		)	(29		)	(17		)	—			(70		)
Other operating expense, net	—			—			(5		)	—			(5		)
OPERATING INCOME (LOSS)	(40		)	60			32			—			52
Other income, net	—			7			3			—			10
Equity in earnings of affiliates	—			4			2			—			6
Interest income (expense), net	(31		)	11			6			—			(14		)
INCOME (LOSS) BEFORE INCOME TAXES	(71		)	82			43			—			54
Benefit (provision) for income taxes	12			(15		)	(10		)	—			(13		)
Equity income from continuing operations of subsidiaries	98			28			—			(126		)	—
INCOME FROM CONTINUING OPERATIONS	39			95			33			(126		)	41
INCOME FROM DISCONTINUED OPERATIONS, net of tax	—			—			—			—			—
NET INCOME	39			95			33			(126		)	41
Less: Net income attributable to noncontrolling interests	—			—			(2		)	—			(2		)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	39		$	95		$	31		$	(126	)	$	39

	Three Months Ended December 31, 2018
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	589		$	449		$	—		$	1,038
Subsidiaries	—			32			57			(89		)	—
Total sales	—			621			506			(89		)	1,038
Cost of sales	(15		)	(534		)	(437		)	89			(897		)
GROSS MARGIN	(15		)	87			69			—			141
Selling, general and administrative	(25		)	(27		)	18			—			(34		)
OPERATING INCOME (LOSS)	(40		)	60			87			—			107
Other income, net	—			5			6			—			11
Equity in earnings of affiliates	—			7			2			—			9
Interest income (expense), net	(32		)	12			6			—			(14		)
INCOME (LOSS) BEFORE INCOME TAXES	(72		)	84			101			—			113
Benefit (provision) for income taxes	11			(12		)	(20		)	—			(21		)
Equity income from continuing operations of subsidiaries	151			40			—			(191		)	—
INCOME FROM CONTINUING OPERATIONS	90			112			81			(191		)	92
INCOME FROM DISCONTINUED OPERATIONS, net of tax	—			—			—			—			—
NET INCOME	90			112			81			(191		)	92
Less: Net income attributable to noncontrolling interests	—			—			(2		)	—			(2		)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	90		$	112		$	79		$	(191	)	$	90

Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss)

	Three Months Ended December 31, 2019
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income	$	39	$	95	$	33		$	(126	)	$	41
Other comprehensive income, net of tax	26		30		32			(62		)	26
Total comprehensive income	65		125		65			(188		)	67
Less: Comprehensive income attributable to noncontrolling interests	—		—		(2		)	—			(2		)
Comprehensive income attributable to Meritor, Inc.	$	65	$	125	$	63		$	(188	)	$	65

	Three Months Ended December 31, 2018
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Net income	$	90		$	112		$	81		$	(191	)	$	92
Other comprehensive loss, net of tax	(3		)	(8		)	(9		)	18			(2		)
Total comprehensive income	87			104			72			(173		)	90
Less: Comprehensive income attributable to noncontrolling interests	—			—			(3		)	—			(3		)
Comprehensive income attributable to Meritor, Inc.	$	87		$	104		$	69		$	(173	)	$	87

Schedule of Condensed Consolidating Balance Sheet

	December 31, 2019
	Parent		Guarantors			Non- Guarantors		Elims			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	13	$	5		$	90	$	—		$	108
Receivables trade and other, net	3		82			393		—			478
Inventories	—		308			248		—			556
Other current assets	7		10			20		—			37
TOTAL CURRENT ASSETS	23		405			751		—			1,179
NET PROPERTY	22		257			238		—			517
GOODWILL	—		337			149		—			486
OTHER ASSETS	182		252			280		—			714
INVESTMENTS IN SUBSIDIARIES	4,575		958			—		(5,533		)	—
TOTAL ASSETS	$	4,802	$	2,209		$	1,418	$	(5,533	)	$	2,896
CURRENT LIABILITIES:
Short-term debt	$	97	$	—		$	81	$	—		$	178
Accounts and notes payable	19		251			270		—			540
Other current liabilities	74		88			102		—			264
TOTAL CURRENT LIABILITIES	190		339			453		—			982
LONG-TERM DEBT	897		—			4		—			901
RETIREMENT BENEFITS	305		1			24		—			330
INTERCOMPANY PAYABLE (RECEIVABLE)	2,997		(3,012		)	15		—			—
OTHER LIABILITIES	61		124			114		—			299
EQUITY ATTRIBUTABLE TO MERITOR, INC.	352		4,757			776		(5,533		)	352
NONCONTROLLING INTERESTS	—		—			32		—			32
TOTAL LIABILITIES AND EQUITY	$	4,802	$	2,209		$	1,418	$	(5,533	)	$	2,896

	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
EQUITY ATTRIBUTABLE TO MERITOR, INC.	385		4,619			712		(5,331		)	385
NONCONTROLLING INTERESTS	—		—			30		—			30
TOTAL LIABILITIES AND EQUITY	$	4,636	$	2,119		$	1,391	$	(5,331	)	$	2,815

Schedule of Condensed Consolidating Statement of Cash Flows

	Three Months Ended December 31, 2019
	Parent			Guarantors			Non- Guarantors			Elims		Consolidated
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	$	65		$	9		$	(93	)	$	—	$	(19	)
INVESTING ACTIVITIES
Capital expenditures	—			(8		)	(8		)	—		(16		)
CASH USED FOR INVESTING ACTIVITIES	—			(8		)	(8		)	—		(16		)
FINANCING ACTIVITIES
Securitization	—			—			72			—		72
Borrowings against revolving line of credit	65			—			—			—		65
Term loan payments	(3		)	—			—			—		(3		)
Repurchase of common stock	(100		)	—			—			—		(100		)
Intercompany advances	(18		)	—			18			—		—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(56		)	—			90			—		34
EFFECT OF CHANGES IN FOREIGN CURRENCY        EXCHANGE RATES ON CASH AND CASH        EQUIVALENTS	—			—			1			—		1
CHANGE IN CASH AND CASH EQUIVALENTS	9			1			(10		)	—		—
CASH AND CASH EQUIVALENTS AT BEGINNING        OF PERIOD	4			4			100			—		108
CASH AND CASH EQUIVALENTS AT END OF        PERIOD	$	13		$	5		$	90		$	—	$	108

	Three Months Ended December 31, 2018
	Parent			Guarantors			Non- Guarantors			Elims		Consolidated
CASH PROVIDED BY (USED FOR)        OPERATING ACTIVITIES	$	(9	)	$	15		$	5		$	—	$	11
INVESTING ACTIVITIES
Capital expenditures	(1		)	(12		)	(10		)	—		(23		)
Cash paid for investment in Transportation Power, Inc.	(3		)	—			—			—		(3		)
Other investing activities	—			—			(1		)	—		(1		)
CASH USED FOR INVESTING ACTIVITIES	(4		)	(12		)	(11		)	—		(27		)
FINANCING ACTIVITIES
Securitization	—			—			33			—		33
Borrowings against revolving line of credit	45			—			—			—		45
Repurchase of common stock	(50		)	—			—			—		(50		)
Intercompany advances	18			—			(18		)	—		—
Other financing activities	—			(1		)	—			—		(1		)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	13			(1		)	15			—		27
EFFECT OF CHANGES IN FOREIGN CURRENCY        EXCHANGE RATES ON CASH AND CASH        EQUIVALENTS	—			—			1			—		1
CHANGE IN CASH AND CASH EQUIVALENTS	—			2			10			—		12
CASH AND CASH EQUIVALENTS AT BEGINNING        OF PERIOD	24			6			85			—		115
CASH AND CASH EQUIVALENTS AT END OF        PERIOD	$	24		$	8		$	95		$	—	$	127