Business Segment Information

6 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

22. Business Segment Information

     The company defines its operating segments as components of its business where separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The company’s chief operating decision maker (CODM) is the Chief Executive Officer.

The company has three reportable segments at March 31, 2012, as follows:

• The Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, primarily for medium- and heavy-duty trucks in North America, South America and Europe;

• The Industrial segment supplies drivetrain systems including axles, brakes, drivelines and suspensions for off-highway, military, construction, bus and coach, fire and emergency and other industrial applications. This segment also includes the company’s OE businesses in Asia Pacific, including all on- and off-highway activities; and
   
• The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts, including transmissions, to commercial vehicle aftermarket customers. This segment also supplies a wide variety of undercarriage products and systems for trailer applications in North America.

Segment EBITDA is defined as income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization, non-controlling interests in consolidated joint ventures, loss on sale of receivables, restructuring costs and asset impairment charges. The company uses Segment EBITDA as the primary basis for the Chief Operating Decision Maker (CODM) to evaluate the performance of each of its reportable segments.

The accounting policies of the segments are the same as those applied in the Consolidated Financial Statements, except for the use of Segment EBITDA. The company may allocate certain common costs, primarily corporate functions, between the segments differently than the company would for stand alone financial information prepared in accordance with GAAP. These allocated costs include expenses for shared services such as information technology, finance, communications, legal and human resources. The company does not allocate interest expense and certain legacy and other corporate costs not directly associated with the Segments’ EBITDA.

Segment information is summarized as follows (in millions):

	Commercial				Aftermarket
	Truck		Industrial		& Trailer		Eliminations			Total
Three months ended March 31, 2012:
External Sales	$	632	$	269	$	259	$	—		$	1,160
Intersegment Sales		61		20		4		(85	)		—
Total Sales	$	693		289		263	$	(85	)	$	1,160
Three months ended March 31, 2011:
External Sales	$	635	$	289	$	252	$	—		$	1,176
Intersegment Sales		58		17		5		(80	)		—
Total Sales	$	693	$	306	$	257	$	(80	)	$	1,176
	Commercial				Aftermarket
	Truck		Industrial		& Trailer		Eliminations			Total
Six months ended March 31, 2012:
External Sales	$	1,329	$	500	$	490	$	—		$	2,319
Intersegment Sales		115		37		8		(160	)		—
Total Sales	$	1,444	$	537	$	498	$	(160	)	$	2,319
Six months ended March 31, 2011:
External Sales	$	1,166	$	506	$	461	$	—		$	2,133
Intersegment Sales		102		30		7		(139	)		—
Total Sales	$	1,268	$	536	$	468	$	(139	)	$	2,133

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
Segment EBITDA:
Commercial Truck	$	49		$	40		$	96		$	73
Industrial		22			18			33			35
Aftermarket & Trailer		28			29			48			45
Segment EBITDA		99			87			177			153
Unallocated legacy and corporate costs (1)		(4	)		(5	)		(3	)		(6	)
Interest expense, net		(23	)		(24	)		(47	)		(51	)
Provision for income taxes		(17	)		(21	)		(37	)		(41	)
Depreciation and amortization		(16	)		(17	)		(33	)		(33	)
Loss on sale of receivables		(3	)		(2	)		(6	)		(3	)
Restructuring costs		(3	)		(5	)		(27	)		(8	)
Other loss		—			(2	)		—			(2	)
Noncontrolling interests		(4	)		(5	)		(8	)		(9	)
Income from continuing operations
attributable to Meritor, Inc.	$	29		$	6		$	16		$	—

(1) Unallocated legacy and corporate costs represent items that are not directly related to our business segments and include pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability matters.

				September 30,
Segment Assets:	March 31, 2012			2011
Commercial Truck	$	1,512		$	1,482
Industrial		480			470
Aftermarket & Trailer		526			504
Total segment assets		2,518			2,456
Corporate(1)		334			483
Discontinued operations		—			4
Less: Accounts receivable sold under off-balance
sheet factoring programs(2)		(287	)		(280	)
Total assets	$	2,565		$	2,663

(1)	Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs.
(2)	At March 31, 2012 and September 30, 2011 segment assets include $287 million and $280 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (See Note 9). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.