DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 17, 2014 | Mar. 28, 2014 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'MERITOR INC | ' | ' |
Entity Central Index Key | '0001113256 | ' | ' |
Current Fiscal Year End Date | '--09-28 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Trading Symbol | 'MTOR | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 97,844,611 | ' |
Document Period End Date | 28-Sep-14 | ' | ' |
Document Type | '10-K | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-Known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1,147,375,565 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Sales | $3,766 | $3,672 | $4,384 |
Cost of sales | -3,279 | -3,277 | -3,902 |
GROSS MARGIN | 487 | 395 | 482 |
Selling, general and administrative | -258 | -253 | -282 |
Pension settlement losses | 0 | -109 | 0 |
Restructuring costs | -10 | -23 | -39 |
Gain on sale of property | 0 | 0 | 16 |
Other operating expense, net | -2 | -3 | -4 |
OPERATING INCOME | 217 | 7 | 173 |
Other income, net | 0 | 3 | 7 |
Gain on sale of equity investment | 0 | 125 | 0 |
Equity in earnings of affiliates | 38 | 42 | 52 |
Interest expense, net | -130 | -126 | -95 |
INCOME BEFORE INCOME TAXES | 315 | 51 | 137 |
Provision for income taxes | -31 | -64 | -57 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 284 | -13 | 80 |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | -30 | -7 | -17 |
NET INCOME (LOSS) | 254 | -20 | 63 |
Less: Net income attributable to noncontrolling interests | -5 | -2 | -11 |
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. | 249 | -22 | 52 |
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. | ' | ' | ' |
Net income (loss) from continuing operations | 279 | -15 | 69 |
Loss from discontinued operations | -30 | -7 | -17 |
Net income (loss) | 249 | -22 | 52 |
BASIC EARNINGS (LOSS) PER SHARE | ' | ' | ' |
Continuing operations (in dollars per share) | $2.86 | ($0.15) | $0.72 |
Discontinued operations (in dollars per share) | ($0.31) | ($0.07) | ($0.18) |
Basic earnings (loss) per share (in dollars per share) | $2.55 | ($0.22) | $0.54 |
DILUTED EARNINGS (LOSS) PER SHARE | ' | ' | ' |
Continuing operations (in dollars per share) | $2.81 | ($0.15) | $0.71 |
Discontinued operations (in dollars per share) | ($0.30) | ($0.07) | ($0.17) |
Diluted earnings (loss) per share (in dollars per share) | $2.51 | ($0.22) | $0.54 |
Basic average common shares outstanding (in shares) | 97.5 | 97.1 | 95.9 |
Diluted average common shares outstanding (in shares) | 99.2 | 97.1 | 97.2 |
ZF Meritor LLC [Member] | ' | ' | ' |
Equity in earnings of affiliates | 190 | 0 | 0 |
Other equity method investments [Member] | ' | ' | ' |
Equity in earnings of affiliates | $38 | $42 | $52 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $254 | ($20) | $63 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | -20 | -32 | -18 |
Pension and other postretirement benefit related adjustments (net of tax of $2, $12 and $2 at September 30, 2014, 2013 and 2012, respectively) | 3 | 218 | -68 |
Unrealized gain (loss) on investments and foreign exchange contracts | 2 | -5 | 1 |
Reclassification adjustment for gain on sale of investments | 0 | 0 | -2 |
Total comprehensive income (loss) | 239 | 161 | -24 |
Less: Comprehensive income attributable to noncontrolling interest | -5 | -2 | -10 |
Comprehensive income (loss) attributable to Meritor, Inc. | $234 | $159 | ($34) |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Pension and other postretirement benefit, tax | $2 | $12 | $2 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $247 | $318 |
Receivables, trade and other, net | 610 | 596 |
Inventories | 379 | 414 |
Other current assets | 56 | 56 |
TOTAL CURRENT ASSETS | 1,292 | 1,384 |
NET PROPERTY | 424 | 417 |
GOODWILL | 431 | 434 |
OTHER ASSETS | 355 | 335 |
TOTAL ASSETS | 2,502 | 2,570 |
LIABILITIES AND EQUITY (DEFICIT) | ' | ' |
Short-term debt | 7 | 13 |
Accounts and notes payable | 680 | 694 |
Other current liabilities | 351 | 339 |
TOTAL CURRENT LIABILITIES | 1,038 | 1,046 |
LONG-TERM DEBT | 965 | 1,125 |
RETIREMENT BENEFITS | 775 | 886 |
OTHER LIABILITIES | 309 | 335 |
TOTAL LIABILITIES | 3,087 | 3,392 |
COMMITMENTS AND CONTINGENCIES (NOTE 22) | ' | ' |
EQUITY (DEFICIT): | ' | ' |
Common stock (September 30, 2014 and 2013, 97.8 and 97.4 shares issued and outstanding, respectively) | 97 | 97 |
Additional paid-in capital | 918 | 914 |
Accumulated deficit | -878 | -1,127 |
Accumulated other comprehensive loss | -749 | -734 |
Total deficit attributable to Meritor, Inc. | -612 | -850 |
Noncontrolling interests | 27 | 28 |
TOTAL DEFICIT | -585 | -822 |
TOTAL LIABILITIES AND DEFICIT | $2,502 | $2,570 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, shares issued | 97.8 | 97.4 |
Common stock, shares outstanding | 97.8 | 97.4 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES | ' | ' | ' |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (see Note 25) | $215 | ($96) | $77 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -77 | -54 | -89 |
Proceeds from sale of equity investment | 0 | 182 | 0 |
Proceeds from sale of property | 0 | 0 | 18 |
Other investing activities | 0 | 3 | 3 |
Net investing cash flows provided by (used for) continuing operations | -77 | 131 | -68 |
Net investing cash flows provided by discontinued operations | 7 | 6 | 28 |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | -70 | 137 | -40 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from debt issuances | 225 | 500 | 100 |
Repayment of notes and term loan | -439 | -475 | -86 |
Other financing activities | 12 | 11 | 0 |
Net change in debt | -202 | 36 | 14 |
Debt issuance costs | -10 | -12 | -12 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | -212 | 24 | 2 |
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | -4 | -4 | 1 |
CHANGE IN CASH AND CASH EQUIVALENTS | -71 | 61 | 40 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 318 | 257 | 217 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $247 | $318 | $257 |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (USD $) | Total | Total Deficit Attributable to Meritor, Inc. [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
In Millions, unless otherwise specified | |||||||
Beginning balance at Sep. 30, 2011 | ($961) | ($995) | $94 | $897 | ($1,157) | ($829) | $34 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss) | -24 | -34 | ' | ' | 52 | -86 | 10 |
Equity based compensation expense | 6 | 6 | ' | 6 | ' | ' | ' |
Vesting of restricted stock | 0 | ' | 2 | -2 | ' | ' | ' |
Non-controlling interest dividends | -3 | ' | ' | ' | ' | ' | -3 |
Ending Balance at Sep. 30, 2012 | -982 | -1,023 | 96 | 901 | -1,105 | -915 | 41 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss) | 161 | 159 | ' | ' | -22 | 181 | 2 |
Equity based compensation expense | 5 | 5 | ' | 5 | ' | ' | ' |
Vesting of restricted stock | 0 | ' | 1 | -1 | ' | ' | ' |
Repurchase of convertible notes | -2 | -2 | ' | -2 | ' | ' | ' |
Issuance of convertible notes | 9 | 9 | ' | 9 | ' | ' | ' |
Non-controlling interest dividends | -15 | ' | ' | ' | ' | ' | -15 |
Other | 2 | 2 | ' | 2 | ' | ' | ' |
Ending Balance at Sep. 30, 2013 | -822 | -850 | 97 | 914 | -1,127 | -734 | 28 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income (loss) | 239 | 234 | ' | ' | 249 | -15 | 5 |
Equity based compensation expense | 8 | 8 | ' | 8 | ' | ' | ' |
Repurchase of convertible notes | -4 | -4 | ' | -4 | ' | ' | ' |
Non-controlling interest dividends | -6 | ' | ' | ' | ' | ' | -6 |
Ending Balance at Sep. 30, 2014 | ($585) | ($612) | $97 | $918 | ($878) | ($749) | $27 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Meritor, Inc. (the "company" or "Meritor"), headquartered in Troy, Michigan, is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers (“OEMs”) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The company serves commercial truck, trailer, military, bus and coach, construction and other industrial OEMs and certain aftermarkets. The consolidated financial statements are those of the company and its consolidated subsidiaries. | |
Certain businesses are reported in discontinued operations in the consolidated statement of operations, statement of cash flows and related notes for all periods presented. In the fourth quarter of fiscal year 2014, the company sold substantially all of its inventory and other assets of its Mascot business and liquidated the remaining assets. The results of operations, loss on disposal and cash flows of the company's Mascot business are presented in discontinued operations in the consolidated statements of operations, and consolidated statement of cash flows, and prior period information has been recast to reflect this presentation. Additional information regarding discontinued operations is discussed in Note 3. | |
The company’s fiscal year ends on the Sunday nearest September 30. The 2014, 2013 and 2012 fiscal years ended on September 28, 2014, September 29, 2013, and September 30, 2012. All year and quarter references relate to the company’s fiscal year and fiscal quarters, unless otherwise stated. For ease of presentation, September 30 is used consistently throughout this report to represent the fiscal year end. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (U.S.) (GAAP) requires the use of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and related disclosures. Actual results could differ from these estimates. Significant estimates and assumptions were used to review goodwill and other long-lived assets, for impairment (see Notes 4 and 10), costs associated with the company’s restructuring actions (see Note 5), product warranty liabilities (see Note 13), long-term incentive compensation plan obligations (see Note 18), retiree medical and pension obligations (see Notes 19 and 20), income taxes (see Note 21), and contingencies including asbestos and environmental matters (see Note 22). | |||||||||
Concentration of Credit Risk | |||||||||
In the normal course of business, the company provides credit to customers. The company limits its credit risk by performing ongoing credit evaluations of its customers and maintaining reserves for potential credit losses and through accounts receivable factoring programs. The company’s accounts receivable is due from medium- and heavy-duty truck OEMs, specialty vehicle manufacturers, aftermarket customers, and trailer producers. The company’s ten largest customers accounted for 76 percent and 71 percent of sales in fiscal year 2014 and 2013, respectively. Sales to the company's top three customers were 57 percent and 49 percent of total sales in fiscal 2014 and 2013, respectively. At September 30, 2014 and 2013, 21 percent of the company's trade accounts receivable were from the company's three largest customers. | |||||||||
Consolidation and Joint Ventures | |||||||||
The consolidated financial statements include the accounts of the company and those subsidiaries in which the company has control. All intercompany balances and transactions are eliminated in consolidation. The results of operations of controlled subsidiaries are included in the consolidated financial statements and are offset by a related noncontrolling interest recorded for the noncontrolling partners’ ownership. Investments in affiliates that are not controlled or majority-owned are reported using the equity method of accounting (see Note 12). | |||||||||
Foreign Currency | |||||||||
Local currencies are generally considered the functional currencies for operations outside the U.S. For operations reporting in local currencies, assets and liabilities are translated at year-end exchange rates with cumulative currency translation adjustments included as a component of Accumulated Other Comprehensive Loss in the consolidated balance sheet. Income and expense items are translated at average rates of exchange during the year. | |||||||||
Impairment of Long-Lived Assets | |||||||||
Long-lived assets, excluding goodwill, to be held and used are reviewed for impairment whenever adverse events or changes in circumstances indicate a possible impairment. An impairment loss is recognized when a long-lived asset’s carrying value exceeds the fair value. | |||||||||
Long-lived assets held for sale are recorded at the lower of their carrying amount or estimated fair value less cost to sell. | |||||||||
Discontinued Operations | |||||||||
A business component that either has been disposed of or is classified as held for sale is reported as discontinued operations if the cash flows of the component have been or will be eliminated from the ongoing operations of the company, and the company will no longer have any significant continuing involvement in the business component. The results of discontinued operations are aggregated and presented separately in the consolidated statement of operations and consolidated statement of cash flows (see Note 3). | |||||||||
Revenue Recognition | |||||||||
Revenues are recognized upon shipment of product and transfer of ownership to the customer. Provisions for customer sales allowances and incentives are recorded as a reduction of sales at the time of product shipment. | |||||||||
Allowance for Doubtful Accounts | |||||||||
An allowance for uncollectible trade receivables is recorded when accounts are deemed uncollectible based on consideration of write-off history, aging analysis, and any specific, known troubled accounts. | |||||||||
Earnings per Share | |||||||||
Basic earnings (loss) per share is calculated using the weighted average number of shares outstanding during each period. The diluted earnings (loss) per share calculation includes the impact of dilutive common stock options, restricted shares, performance share awards, and convertible securities, if applicable. | |||||||||
A reconciliation of basic average common shares outstanding to diluted average common shares outstanding is as follows (in millions): | |||||||||
Year Ended September 30, | |||||||||
2014 | 2013 | 2012 | |||||||
Basic average common shares outstanding | 97.5 | 97.1 | 95.9 | ||||||
Impact of stock options | 0.1 | — | — | ||||||
Impact of restricted shares, performance shares and share units | 1.6 | — | 1.3 | ||||||
Diluted average common shares outstanding | 99.2 | 97.1 | 97.2 | ||||||
On November 7, 2013, the Board of Directors approved a grant of performance restricted share units to all executives eligible to participate in the long-term incentive plan. Each performance share unit represents the right to receive one share of common stock upon achievement of certain performance and time vesting criteria. The fair value of each share unit is $7.97, the company’s share price on the grant date of December 1, 2013. | |||||||||
The actual number of performance units that will vest will depend upon the company’s performance relative to the established M2016 goals for the three-year performance period of October 1, 2013 to September 30, 2016, measured at the end of the performance period. The number of potential performance units will depend on meeting the established M2016 goals at the following weights: 50% associated with achieving Adjusted EBITDA margin targets, 25% associated with reducing net debt, including retirement benefit liabilities targets, and 25% associated with generating incremental booked revenue targets. The number of shares that vest will be between 0% and 200% of the estimated grant date amount of 1.8 million shares including incremental shares that were issued subsequent to the December 1, 2013 grant date. For the year ended September 30, 2014, compensation cost recognized related to the performance shares was $4 million. There were 0.1 million of performance shares included in diluted earnings per share calculation for the year ended September 30, 2014 as the M2016 net debt target was reached in the fourth quarter of fiscal year 2014. | |||||||||
At September 30, 2014, 2013, and 2012 options to purchase 0.3 million, 0.9 million, and 0.7 million shares of common stock, respectively, were excluded in the computation of diluted earnings per share because their exercise price exceeded the average market price for the twelve-month period and thus their inclusion would be anti-dilutive. | |||||||||
The potential effects of restricted shares and share units were excluded from the diluted earnings per share calculation for the fiscal year ended September 30, 2013 because their inclusion in a loss from continuing operations period would reduce the loss per share from continuing operations attributable to common shareholders. Therefore, 0.8 million shares of restricted stock were excluded from the computation of diluted earnings per share for the fiscal year ended September 30, 2013. The company’s convertible senior unsecured notes are excluded from the computation of diluted earnings per share for each period presented, as the company’s average stock price during each period is less than the conversion price. | |||||||||
Other | |||||||||
Other significant accounting policies are included in the related notes, specifically, goodwill (Note 4), inventories (Note 8), property and depreciation (Note 10), capitalized software (Note 11), product warranties (Note 13), financial instruments (Note 16), equity based compensation (Note 18), retirement medical plans (Note 19), retirement pension plans (Note 20), income taxes (Note 21) and environmental and asbestos-related liabilities (Note 22). | |||||||||
Accounting standards to be implemented | |||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. A strategic shift could include a disposal of: (1) a major geographical area of operations; (2) a major line of business; and (3) a major equity method investment. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2015. The potential impact of this new guidance on its consolidated financial statements is dependent upon future business divestitures. Previous divestitures and amounts currently in discontinued operations will not be impacted. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 merges revenue recognition standards of the FASB and International Accounting Standards Board (IASB). The FASB and IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS) that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2016, and interim periods within those annual periods. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2017 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. | |||||||||
In June 2014, the FASB issued ASU 2014- 12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2015 and interim periods within those annual periods. The company plans to implement this standard in the first quarter of fiscal year 2017 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements— Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The standard is required to be adopted by public business entities in annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The company plans to implement this standard in the fiscal year beginning October 1, 2016 and currently expects this new guidance to have no impact on the company's consolidated financial statements. | |||||||||
Accounting standards implemented during fiscal year 2014 | |||||||||
In January 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The company adopted this guidance at the beginning of the first quarter of fiscal year 2014 within Note 16. | |||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires that reclassification adjustments for items that are reclassified from accumulated other comprehensive income to net income be presented on the financial statements or in a note to the financial statements. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The company adopted this guidance at the beginning of the first quarter of fiscal year 2014 within Note 17. | |||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 eliminates the option of presenting unrecognized tax benefits as a liability or as a reduction of a deferred tax asset for a net operating loss or tax credit carryforward. An unrecognized tax benefit, or portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 with early adoption permitted. The company adopted this guidance at the beginning of the first quarter of fiscal year 2014. The adoption of ASU 2013-11 did not have a material effect on the company's consolidated statement of financial position, results of operations, or cash flows. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
DISCONTINUED OPERATIONS | ' | |||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Results of the discontinued operations are summarized as follows (in millions): | ||||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales | $ | 29 | $ | 29 | $ | 36 | ||||||
Operating losses, net (primarily Mascot) | $ | (8 | ) | $ | (3 | ) | $ | — | ||||
Net loss on sales of businesses | (23 | ) | — | (1 | ) | |||||||
Charge for contingency and indemnity obligation (see Note 22) | — | — | (10 | ) | ||||||||
Restructuring costs | — | (3 | ) | (1 | ) | |||||||
Environmental remediation charges (see Note 22) | (4 | ) | (5 | ) | (3 | ) | ||||||
Other, net | (2 | ) | (1 | ) | (5 | ) | ||||||
Income (loss) before income taxes | (37 | ) | (12 | ) | (20 | ) | ||||||
Benefit for income taxes | 7 | 5 | 3 | |||||||||
Loss from discontinued operations attributable to Meritor, Inc. | $ | (30 | ) | $ | (7 | ) | $ | (17 | ) | |||
Total discontinued operations assets and liabilities as of September 30, 2014 were $8 million and $21 million, respectively. | ||||||||||||
Mascot Divestiture | ||||||||||||
On August 15, 2014, the company completed its strategic review of certain remanufacturing product lines within the aftermarket business in North America, and the Board of Directors concluded the company should exit the Mascot business. Mascot is a remanufacturer and distributor of all makes differentials, transmissions and steering gears primarily for OEMs. In the fourth quarter of fiscal year 2014, the company disposed of its Mascot business which was part of the company's Aftermarket & Trailer segment. All manufacturing operations and use of productive assets ceased prior to September 30, 2014. The company sold certain long-lived and current assets of the business to a third party and recognized a loss of $23 million during the fourth quarter of fiscal year 2014 in connection with the disposal. These charges include loss on sale, severance and other disposal costs. Total sales from this business were $29 million in fiscal years 2014 and 2013, and $34 million in 2012. | ||||||||||||
During the first quarter of fiscal year 2013, the company announced the planned consolidation of its Mascot remanufacturing operations in the Aftermarket & Trailer segment resulting in the closure of one remanufacturing plant in Canada. The closure resulted in the elimination of 85 hourly positions, including approximately 65 positions which were transferred to the company's facility in Indiana. The company recorded restructuring charges of $3 million during fiscal year 2013, primarily associated with employee severance charges. Restructuring actions associated with the remanufacturing consolidation were substantially complete as of September 30, 2013. | ||||||||||||
The results of operations and cash flows of the company's Mascot business are presented in discontinued operations in the consolidated statements of operations and consolidated statement of cash flows, and prior period information has been recast to reflect this presentation. | ||||||||||||
Prior Period Divestitures | ||||||||||||
In conjunction with the company’s long-term strategic objective to focus on supplying the commercial vehicle on- and off-highway markets for original equipment manufacturers and aftermarket and industrial customers, the company divested its Light Vehicle Systems (LVS) business groups in various transactions. The company completed the divestiture of its LVS businesses in November 2011. Adjustments to amounts previously reported in discontinued operations that are related to the disposal of the company’s LVS businesses are reflected in discontinued operations for all periods presented. | ||||||||||||
On January 3, 2011, the company completed the sale of its Body Systems business to Inteva Products Holding Coöperatieve U.A., an assignee of 81 Acquisition LLC and an affiliate of Inteva Products, LLC. Pursuant to the sale agreement signed in August 2010. The purchase price included a five-year, 8-percent promissory note for $15 million, payable in five annual installments beginning in January 2012. The current portion of the promissory note is included in receivables, trade and other, net in the accompanying consolidated balance sheet. The long-term portion of the note is included in other assets in the accompanying consolidated balance sheet. | ||||||||||||
In addition to the purchase price, the company was entitled to receive the cash held at the time of the sale by the Body Systems entities operating in China and Brazil of approximately $33 million, before applicable taxes and other withholding, at such time as it becomes available for distribution, as provided in the sale agreement. At September 30, 2011, the company recognized a receivable of approximately $28 million, net of applicable taxes and other withholding, for cash balances available for distribution based on the then-current distribution capacity. During fiscal year 2012, the company received approximately $24 million, net of withholdings, of cash balances for which a receivable was recorded at September 30, 2011. Cash flows associated with the receipt of cash balances in fiscal year 2012 and outflows associated with the sale of Body Systems are included in net investing cash flows used for for discontinued operations in the accompanying consolidated statement of cash flows. The company expects to collect a receivable for the remaining amount of approximately $3 million, before applicable taxes and other withholding, at such time when the balance becomes available for distribution by the respective entities. | ||||||||||||
The sale agreement contains certain customary representations, warranties and covenants of the seller and the purchaser as further set forth in the agreement. The agreement also includes provisions governing post-closing indemnities between the seller and the purchaser for losses arising from specified events. Adjustments to amounts previously reported in discontinued operations that are related to the disposal of the company’s Body Systems business are reflected in discontinued operations for all periods presented. | ||||||||||||
On June 24, 2009, the company entered into a binding letter of intent to sell its 57 percent interest in MSSC, a joint venture that manufactured and supplied automotive coil springs, torsion bars and stabilizer bars in North America, to the joint venture partner, a subsidiary of Mitsubishi Steel Mfg. Co., LTD (MSM). The sale transaction closed in October 2009. In connection with the sale of its interest in MSSC, the company provided certain indemnifications to the buyer for its share of potential obligations related to pension funding shortfall, environmental and other contingencies, and valuation of certain accounts receivable and inventories. The company’s estimated exposure under these indemnities at September 30, 2014 and September 30, 2013 is $5 million and $11 million, respectively, and is included in other current liabilities and other liabilities in the consolidated balance sheet. Adjustments to amounts previously reported in discontinued operations that are related to the disposal of the company’s MSSC business are reflected in discontinued operations for all periods presented. | ||||||||||||
EU Trailer | ||||||||||||
In the second quarter of fiscal year 2011, the company announced the planned closure of its EU Trailer business which was part of the company’s Aftermarket & Trailer segment. All manufacturing operations and use of productive assets ceased prior to September 30, 2011. In the fourth quarter of fiscal year 2014, the company recognized a $5 million charge, included in other, net, related to a specific product warranty matter. |
GOODWILL
GOODWILL | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
GOODWILL | ' | |||||||||||||||||||
GOODWILL | ||||||||||||||||||||
In accordance with FASB Accounting Standards Codification (ASC) Topic 350-20, “Intangibles – Goodwill and Other”, goodwill is reviewed for impairment annually during the fourth quarter of the fiscal year or more frequently if certain indicators arise. If business conditions or other factors cause the operating results and cash flows of a reporting unit to decline, the company may be required to record impairment charges for goodwill at that time. The company tests goodwill for impairment at a level of reporting referred to as a reporting unit, which is an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. When two or more components of an operating segment have similar economic characteristics, the components are aggregated and deemed a single reporting unit. An operating segment is deemed to be a reporting unit if all of its components are similar, if none of its components are a reporting unit, or if the segment comprises only a single component. | ||||||||||||||||||||
Reorganization of Reporting Units | ||||||||||||||||||||
As discussed in Note 23, "Business Segment Information," the company reorganized its management reporting structure in the first quarter of fiscal year 2013 resulting in two reportable segments. As a result of the change in reporting segments, the company's reporting units changed. The Commercial Truck and Industrial segment now contains two reporting units. The Aftermarket and Trailer segment remains a single reporting unit. Goodwill was reassigned to the new reporting units using a relative fair value allocation. Giving specific consideration to the changes in reporting units, the company did not observe any factors which caused the company to believe that goodwill was more likely than not impaired at the date of reallocation. | ||||||||||||||||||||
Annual Impairment Analysis | ||||||||||||||||||||
In September 2011, the FASB issued revised guidance which allows entities to perform an initial qualitative evaluation to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The results of this qualitative assessment determine whether it is necessary to perform step one of the required two-step impairment test. As allowed by the revised guidance, the company has elected to bypass the qualitative assessment for fiscal year 2014 and proceed directly to the two-step impairment test. | ||||||||||||||||||||
Excluding the qualitative evaluation discussed above, the goodwill impairment review is a two-step process. Step one consists of a comparison of the fair value of a reporting unit with its carrying amount. An impairment loss may be recognized if the review indicates that the carrying value of a reporting unit exceeds its fair value. Estimates of fair value are primarily determined by using discounted cash flows and market multiples on earnings. If the carrying amount of a reporting unit exceeds its fair value, step two requires the fair value of the reporting unit to be allocated to the underlying assets and liabilities of that reporting unit, resulting in an implied fair value of goodwill. If the carrying amount of the goodwill of the reporting unit exceeds the implied fair value, an impairment charge is recorded equal to the excess. | ||||||||||||||||||||
The impairment review is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions have a significant impact on the amount of any impairment charge recorded. Discounted cash flow methods are dependent upon assumptions of future sales trends, market conditions and cash flows of each reporting unit over several years. Actual cash flows in the future may differ significantly from those previously forecasted. For fiscal years 2014, 2013 and 2012, the fair value of the company’s reporting units exceeded their carrying values. | ||||||||||||||||||||
Given that our primary military program is winding down, failure to secure new military contracts could result in a significant decline in the projected cash flows of the defense reporting unit, which could require us to impair the goodwill. The defense reporting unit is included within the Commercial Truck & Industrial segment and has $20 million of goodwill allocated to it. | ||||||||||||||||||||
A summary of the changes in the carrying value of goodwill is presented below (in millions): | ||||||||||||||||||||
Commercial Truck & Industrial | Aftermarket | Commercial Truck | Industrial | Total | ||||||||||||||||
& Trailer | ||||||||||||||||||||
Balance at September 30, 2012 | $ | — | $ | 171 | $ | 153 | $ | 109 | $ | 433 | ||||||||||
Segment reorganization | 262 | — | (153 | ) | (109 | ) | — | |||||||||||||
Foreign currency translation | — | 1 | — | — | 1 | |||||||||||||||
Balance at September 30, 2013 | 262 | 172 | — | — | 434 | |||||||||||||||
Foreign currency translation | (1 | ) | (2 | ) | — | — | (3 | ) | ||||||||||||
Balance at September 30, 2014 | $ | 261 | $ | 170 | $ | — | $ | — | $ | 431 | ||||||||||
RESTRUCTURING_COSTS
RESTRUCTURING COSTS | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
RESTRUCTURING COSTS | ' | |||||||||||||||
RESTRUCTURING COSTS | ||||||||||||||||
At September 30, 2014 and 2013, $11 million and $12 million, respectively, of restructuring reserves primarily related to unpaid employee termination benefits remained in the consolidated balance sheet. Asset impairment charges relate to manufacturing facilities that have been sold and machinery and equipment that became idle and obsolete as a result of these actions. | ||||||||||||||||
The following table summarizes changes in restructuring reserves (in millions): | ||||||||||||||||
Employee | Asset | Plant | Total | |||||||||||||
Termination | Impairment | Shutdown | ||||||||||||||
Benefits | & Other | |||||||||||||||
Balance at September 30, 2011 | $ | 19 | $ | — | $ | — | $ | 19 | ||||||||
Activity during the period: | ||||||||||||||||
Charges to continuing operations | 18 | 19 | 2 | 39 | ||||||||||||
Charges to discontinued operations (1) | — | — | 1 | 1 | ||||||||||||
Asset write-offs | — | (19 | ) | — | (19 | ) | ||||||||||
Cash payments – continuing operations | (20 | ) | — | (2 | ) | (22 | ) | |||||||||
Cash payments – discontinued operations | (2 | ) | — | (1 | ) | (3 | ) | |||||||||
Balance at September 30, 2012 | 15 | — | — | 15 | ||||||||||||
Activity during the period: | ||||||||||||||||
Charges to continuing operations | 18 | 1 | 4 | 23 | ||||||||||||
Charges to discontinued operations (1) | 3 | — | — | 3 | ||||||||||||
Asset write-offs | — | (1 | ) | — | (1 | ) | ||||||||||
Cash payments – continuing operations | (19 | ) | — | (4 | ) | (23 | ) | |||||||||
Cash payments – discontinued operations (1) | (3 | ) | — | — | (3 | ) | ||||||||||
Other | (2 | ) | — | — | (2 | ) | ||||||||||
Balance at September 30, 2013 | 12 | — | — | 12 | ||||||||||||
Activity during the period: | ||||||||||||||||
Charges to continuing operations | 10 | — | — | 10 | ||||||||||||
Cash payments – continuing operations | (10 | ) | — | — | (10 | ) | ||||||||||
Other | (1 | ) | — | — | (1 | ) | ||||||||||
Total restructuring reserves, end of year | 11 | — | — | 11 | ||||||||||||
Less: non-current restructuring reserves | (2 | ) | — | — | (2 | ) | ||||||||||
Restructuring reserves – current, at September 30, 2014 | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
____________________ | ||||||||||||||||
-1 | Charges to discontinued operations are included in discontinued operations in the consolidated statement of operations. Amounts for prior periods have been recast for discontinued operations. | |||||||||||||||
Restructuring costs attributable to in the company’s business segments during fiscal years 2014, 2013 and 2012 are as follows (in millions): | ||||||||||||||||
Commercial | Aftermarket & Trailer | Corporate | Total | |||||||||||||
Truck & Industrial | ||||||||||||||||
Fiscal year 2014: | ||||||||||||||||
South America labor reduction | $ | 7 | $ | — | $ | — | $ | 7 | ||||||||
Other | 1 | 1 | 1 | 3 | ||||||||||||
Total restructuring costs | $ | 8 | $ | 1 | $ | 1 | $ | 10 | ||||||||
Fiscal year 2013: | ||||||||||||||||
Variable labor reductions | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||
Segment reorganization and Asia-Pacific realignment | 10 | 3 | 3 | 16 | ||||||||||||
M2016 footprint actions | 2 | — | — | 2 | ||||||||||||
Total restructuring costs | $ | 17 | $ | 3 | $ | 3 | $ | 23 | ||||||||
Fiscal year 2012: | ||||||||||||||||
Performance Plus actions | $ | 24 | $ | — | $ | — | $ | 24 | ||||||||
Fiscal Year 2012 European action | 7 | — | — | 7 | ||||||||||||
Variable labor reductions | 5 | — | — | 5 | ||||||||||||
Other | — | 2 | 1 | 3 | ||||||||||||
Total restructuring costs | $ | 36 | $ | 2 | $ | 1 | $ | 39 | ||||||||
South America Labor Reduction: During the fourth quarter of fiscal year 2014, the company initiated a South America headcount reduction plan intended to reduce labor costs in response to softening economic conditions in the region. In response to decreasing production volumes in South America, the company plans to eliminate approximately 190 hourly and 20 salaried positions and incurred $7 million of restructuring costs, primarily severance benefits, in the Commercial Truck & Industrial segment. | ||||||||||||||||
Variable Labor Reductions: During the fourth quarter of fiscal year 2012, the company initiated a global variable labor headcount reduction plan intended to reduce labor and other costs in response to market conditions. In response to further deterioration in the global markets, the company approved further headcount reductions under this action during the fourth quarter of fiscal year 2013. As part of this action, the company eliminated approximately 600 hourly and 120 salaried positions and incurred $10 million of restructuring costs, primarily severance benefits, in the Commercial Truck & Industrial segment of which $5 million was recognized in fiscal year 2013, and $5 million was recognized in fiscal year 2012. Restructuring actions associated with the variable labor reductions were substantially complete as of September 30, 2013. | ||||||||||||||||
Segment Reorganization and Asia-Pacific Realignment: On November 12, 2012, the company announced a revised management reporting structure resulting in two business segments to drive efficiencies. On January 8, 2013, the company announced restructuring actions related to the business segment rationalization. On March 26, 2013, the company announced plans to consolidate its operations in China by transferring manufacturing operations to the company's majority owned off-highway joint venture facility and closing its facilities in Wuxi, China and Nanjing, China. During fiscal year 2013, the company recorded employee severance charges and other exit costs associated with the elimination of approximately 200 salaried positions (including contract employees) and 50 hourly positions of $8 million and $3 million in the Commercial Truck & Industrial and Aftermarket & Trailer segments, respectively, as well as $3 million at a corporate location. The company also recognized $2 million within the Commercial Truck & Industrial segment related to a lease termination. Restructuring actions associated with this program were substantially complete as of September 30, 2013. | ||||||||||||||||
M2016 Footprint Actions: As part of the company's recently announced M2016 Strategy, a three-year plan to achieve sustainable financial strength, the company approved a North American footprint realignment action and a European Shared Services Reorganization, which is expected to be completed over the next twelve months. As part of these actions, the company expects to eliminate 74 hourly and 27 salaried positions and incur approximately $2 million of restructuring costs in the Commercial Truck & Industrial segment. The company has recognized costs of approximately $2 million within the Commercial Truck & Industrial segment, primarily related to severance benefits, during the fiscal year 2013. | ||||||||||||||||
Performance Plus: During fiscal year 2007, the company launched a long-term profit improvement and cost reduction initiative called “Performance Plus.” As part of this program, the company identified significant restructuring actions which would eliminate up to 2,800 positions in North America and Europe and consolidate and combine certain global facilities. The company’s continuing operations recognized restructuring costs in its Commercial Truck & Industrial segment of $24 million and $16 million in fiscal years 2013 and 2012, respectively, related to Performance Plus. Fiscal year 2012 Performance Plus costs include $19 million of non-cash charges, including an impairment charge of $17 million for assets held for sale at December 31, 2011. In connection with the then-planned sale of St. Priest, France manufacturing facility to Renault Trucks SAS, the company classified certain assets and associated liabilities as held for sale (collectively the “Disposal Group”) at December 31, 2011. Upon comparing the carrying value of the Disposal Group to its fair value less cost to sell, an impairment was identified. The sale of Disposal Group was completed on January 2, 2012. In addition, other restructuring charges of approximately $5 million associated with employee headcount reduction and plant rationalization costs were recognized in connection with the sale of St. Priest facility. Performance Plus costs recognized in fiscal years 2011 and 2010 were also related to employee headcount reductions, asset write-downs and facility rationalization at the company's St. Priest location. | ||||||||||||||||
Restructuring actions associated with Performance Plus were complete as of September 30, 2012. Cumulative restructuring costs recorded for this program as of September 30, 2012 were $186 million, including $93 million reported in discontinued operations in the consolidated statement of operations. These costs primarily related to employee severance and related costs of $117 million, asset impairment charges of $41 million and $28 million primarily associated with pension termination benefits. The company’s Commercial Truck & Industrial segment has recognized cumulative restructuring costs associated with Performance Plus of $82 million. Cumulative restructuring costs of $11 million were recognized by corporate locations and the company’s Aftermarket & Trailer segment. | ||||||||||||||||
Fiscal Year 2012 European Action: During the second quarter of fiscal year 2012, the company approved a European headcount reduction plan in response to the ongoing economic weakness and uncertainty in that region. The company recognized approximately $7 million of restructuring costs associated with this plan in its Commercial Truck & Industrial segment. Restructuring actions associated with this plan were substantially complete as of September 30, 2012. | ||||||||||||||||
Other Actions: The remaining restructuring costs incurred during the fiscal year 2012 were primarily associated with the company’s previously announced executive headcount reduction. |
ACCOUNTS_RECEIVABLE_FACTORING_
ACCOUNTS RECEIVABLE FACTORING AND SECURITIZATION | 12 Months Ended |
Sep. 30, 2014 | |
Accounts Receivable Securitization and Factoring Disclosure [Abstract] | ' |
ACCOUNTS RECEIVABLE FACTORING AND SECURITIZATION | ' |
ACCOUNTS RECEIVABLE FACTORING AND SECURITIZATION | |
Off-balance sheet arrangements | |
Swedish Factoring Facility: The company has an arrangement to sell trade receivables due from AB Volvo through one of its European subsidiaries. Under this arrangement, which was renewed on June 27, 2014 and terminates on June 28, 2015, the company can sell up to, at any point in time, €150 million ($191 million) of eligible trade receivables. The receivables under this program are sold at face value and are excluded from the consolidated balance sheet. The company had utilized €99 million ($127 million) and €148 million ($199 million) of this accounts receivable factoring facility as of September 30, 2014 and 2013, respectively. | |
U.S. Factoring Facility: The company has an arrangement to sell trade receivables due from AB Volvo and its subsidiaries. Under this arrangement, which was renewed on June 27, 2014 and terminates on October 29, 2015, the company can sell up to, at any point in time, €65 million ($83 million) of eligible trade receivables. The receivables under this program are sold at face value and are excluded from the consolidated balance sheet. The company had utilized €64 million ($81 million) and €48 million ($65 million) of this accounts receivable factoring facility as of September 30, 2014 and 2013, respectively. | |
The above facilities are backed by 364-day liquidity commitments from Nordea Bank which were renewed through September 2015. The commitments are subject to standard terms and conditions for these types of arrangements. | |
United Kingdom Factoring Facility: The company has an arrangement to sell trade receivables from AB Volvo and its European subsidiaries through one of its United Kingdom subsidiaries. Under this arrangement, which was renewed on January 24, 2013 and expires in February 2018, the company can sell up to, at any point in time, €25 million ($32 million) of eligible trade receivables. The receivables under this program are sold at face value and are excluded from the consolidated balance sheet. The company had utilized €6 million ($7 million) and €7 million ($9 million) of this accounts receivable factoring facility as of September 30, 2014 and 2013, respectively. The agreement is subject to standard terms and conditions for these types of arrangements including a sole discretion clause whereby the bank retains the right to not purchase receivables, which has not been invoked since the inception of the program. | |
Italy Factoring Facility: The company has an arrangement to sell trade receivables from AB Volvo and its European subsidiaries through one of its Italian subsidiaries. Under this arrangement, which expires in June 2017, the company can sell up to, at any point in time, €30 million ($38 million) of eligible trade receivables. The receivables under this program are sold at face value and are excluded from the consolidated balance sheet. The company had utilized €8 million ($10 million) and €10 million ($14 million) of this accounts receivable factoring facility as of September 30, 2014 and 2013, respectively. The agreement is subject to standard terms and conditions for these types of arrangements including a sole discretion clause whereby the bank retains the right to not purchase receivables, which has not been invoked since the inception of the program. | |
Brazil Factoring Facility: The company entered into an arrangement to sell trade receivables from MAN and its subsidiaries. Under this arrangement, which began in October 2013 and was valid for invoices dated no later than March 31, 2014, the company could sell up to, at any point in time, R$100 million eligible trade receivables. The receivables under this program were sold at face value and were excluded from the consolidated balance sheet. The company had no balance utilized on this accounts receivable factoring facility as of September 30, 2014, and the agreement has expired. | |
In addition, several of the company’s subsidiaries, primarily in Europe, factor eligible accounts receivable with financial institutions. Certain receivables are factored without recourse to the company and are excluded from accounts receivable in the consolidated balance sheet. The amount of factored receivables excluded from accounts receivable was $19 million and $18 million at September 30, 2014 and 2013, respectively. | |
Total costs associated with these off-balance sheet arrangements were $8 million, $6 million and $9 million in fiscal years 2014, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in the consolidated statement of operations. | |
On-balance sheet arrangements | |
The company has a $100 million U.S. accounts receivables securitization facility. On October 15, 2014, the company entered into an amendment which extends the facility expiration date to October 15, 2017 and sets the maximum permitted priority-debt-to-EBITDA ratio as of the last day of each fiscal quarter under the U.S. securitization facility at 2.25 to 1.00. This program is provided by PNC, as Administrator and Purchaser, and the other Purchasers and Purchaser Agents from time to time (participating lenders), which are party to the agreement. Under this program, the company has the ability to sell an undivided percentage ownership interest in substantially all of its trade receivables (excluding the receivables due from AB Volvo and subsidiaries eligible for sale under the U.S. factoring facility) of certain U.S. subsidiaries to ArvinMeritor Receivables Corporation (ARC), a wholly-owned, special purpose subsidiary. ARC funds these purchases with borrowings from participating lenders under a loan agreement. This program also includes a letter of credit facility pursuant to which ARC may request the issuance of letters of credit issued for the company's U.S. subsidiaries (originators) or their designees, which when issued will constitute a utilization of the facility for the amount of letters of credit issued. Amounts outstanding under this agreement are collateralized by eligible receivables purchased by ARC and are reported as short-term debt in the consolidated balance sheet. At September 30, 2014 and 2013, no amounts, including letters of credit, were outstanding under this program. This program contains a cross-default to the revolving credit facility. At September 30, 2014, the company was in compliance with all covenants under its credit agreement (see Note 15). |
GAIN_ON_SALE_OF_PROPERTY_OTHER
GAIN ON SALE OF PROPERTY, OTHER OPERATING EXPENSE, NET AND OTHER INCOME, NET | 12 Months Ended |
Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | ' |
GAIN ON SALE OF PROPERTY, OTHER OPERATING EXPENSE, NET AND OTHER INCOME, NET | ' |
GAIN ON SALE OF PROPERTY, OTHER OPERATING EXPENSE, NET AND OTHER INCOME, NET | |
The company recognized a gain on sale of property of $16 million during fiscal year 2012. This gain is associated with the sale of excess land at the company's facility at Cwmbran, Wales. | |
Other operating expense, net for fiscal years 2014, 2013 and 2012 primarily relates to environmental remediation costs incurred by the company (see Note 22). | |
Other income, net for fiscal year 2012 includes a $3 million non-operating gain related to the sale of the company’s remaining ownership interest in Gabriel India, Ltd during the first quarter of fiscal year 2012. The company’s ownership interest in Gabriel India, Ltd was a legacy investment accounted for under the cost method that the company deemed non-core upon the completion of the sale of its light vehicle businesses. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories are stated at the lower of cost (using FIFO or average methods) or market (determined on the basis of estimated realizable values) and are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 146 | $ | 184 | ||||
Work in process | 36 | 32 | ||||||
Raw materials, parts and supplies | 197 | 198 | ||||||
Total | $ | 379 | $ | 414 | ||||
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Current Assets Disclosure [Abstract] | ' | |||||||
OTHER CURRENT ASSETS | ' | |||||||
OTHER CURRENT ASSETS | ||||||||
Other current assets are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Current deferred income tax assets (see Note 21) | $ | 21 | $ | 23 | ||||
Asbestos-related recoveries (see Note 22) | 15 | 12 | ||||||
Deposits and collateral | 4 | 4 | ||||||
Prepaid and other | 16 | 17 | ||||||
Other current assets | $ | 56 | $ | 56 | ||||
NET_PROPERTY
NET PROPERTY | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
NET PROPERTY | ' | |||||||
NET PROPERTY | ||||||||
Property is stated at cost. Depreciation of property is based on estimated useful lives, generally using the straight-line method. Estimated useful lives for buildings and improvements range from 10 to 50 years and estimated useful lives for machinery and equipment range from 3 to 20 years. Significant improvements are capitalized, and disposed or replaced property is written off. Maintenance and repairs are charged to expense in the period they are incurred. Company-owned tooling is classified as property and depreciated over the shorter of its expected life or the life of the related vehicle platform, generally not to exceed three years. | ||||||||
In accordance with the FASB guidance on property, plant and equipment, the company reviews the carrying value of long-lived assets, excluding goodwill, to be held and used, for impairment whenever events or changes in circumstances indicate a possible impairment. An impairment loss is recognized when a long-lived asset’s carrying value is not recoverable and exceeds estimated fair value. | ||||||||
Net property is summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Property at cost: | ||||||||
Land and land improvements | $ | 34 | $ | 35 | ||||
Buildings | 236 | 239 | ||||||
Machinery and equipment | 906 | 915 | ||||||
Company-owned tooling | 155 | 152 | ||||||
Construction in progress | 66 | 48 | ||||||
Total | 1,397 | 1,389 | ||||||
Less accumulated depreciation | (973 | ) | (972 | ) | ||||
Net property | $ | 424 | $ | 417 | ||||
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
OTHER ASSETS | ' | |||||||
OTHER ASSETS | ||||||||
Other assets are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Investments in non-consolidated joint ventures (see Note 12) | $ | 106 | $ | 102 | ||||
Asbestos-related recoveries (see Note 22) | 45 | 59 | ||||||
Unamortized debt issuance costs (see Note 15) | 30 | 32 | ||||||
Capitalized software costs, net | 25 | 28 | ||||||
Non-current deferred income tax assets (see Note 21) | 15 | 13 | ||||||
Assets for uncertain tax positions (see Note 21) | 5 | 5 | ||||||
Prepaid pension costs (see Note 20) | 104 | 55 | ||||||
Other | 25 | 41 | ||||||
Other assets | $ | 355 | $ | 335 | ||||
In accordance with FASB ASC Topic 350-40, costs relating to internally developed or purchased software in the preliminary project stage and the post-implementation stage are expensed as incurred. Costs in the application development stage that meet the criteria for capitalization are capitalized and amortized using the straight-line basis over the estimated economic useful life of the software. |
INVESTMENTS_IN_NONCONSOLIDATED
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES | ' | |||||||||||
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES | ||||||||||||
The company’s non-consolidated joint ventures and related direct ownership interest are as follows: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Meritor WABCO Vehicle Control Systems (Commercial Truck & Industrial) | 50 | % | 50 | % | 50 | % | ||||||
Master Sistemas Automotivos Ltda. (Commercial Truck & Industrial) | 49 | % | 49 | % | 49 | % | ||||||
Suspensys Sistemas Automotivos Ltda. (1) (Aftermarket & Trailer) | — | % | — | % | 24 | % | ||||||
Sistemas Automotrices de Mexico S.A. de C.V. (Commercial Truck & Industrial) | 50 | % | 50 | % | 50 | % | ||||||
Ege Fren Sanayii ve Ticaret A.S. (Commercial Truck & Industrial) | 49 | % | 49 | % | 49 | % | ||||||
Automotive Axles Limited (Commercial Truck & Industrial) | 36 | % | 36 | % | 36 | % | ||||||
ZF Meritor LLC (Commercial Truck & Industrial) | 50 | % | 50 | % | 50 | % | ||||||
____________________ | ||||||||||||
(1) Total direct and indirect ownership interest in fiscal year 2012 of 50 percent. | ||||||||||||
In June 2014, ZF Meritor LLC, a joint venture between ZF Friedrichshafen AG and the company's subsidiary, Meritor Transmission LLC, entered into a settlement agreement with Eaton Corporation relating to an antitrust lawsuit filed by ZF Meritor in 2006. Pursuant to the terms of the settlement agreement, Eaton agreed to pay $500 million to ZF Meritor. In July 2014, ZF Meritor received proceeds of $400 million net of attorney's contingency fees. In July 2014, the company received proceeds of $210 million representing its share based on the company's ownership interest in ZF Meritor and including a recovery of current and prior years' attorney expenses paid by Meritor. ZF Meritor and Meritor Transmission agreed to dismiss all pending antitrust litigation with Eaton. ZF Meritor does not have any operating activities. | ||||||||||||
The company's pre-tax share of the settlement was $210 million ($209 million after-tax), of which $190 million was recognized as equity in earnings of ZF Meritor, and $20 million for the recovery of legal expenses from ZF Meritor was recognized as a reduction of selling, general and administrative expenses in the consolidated statement of operations. The company recognized the recovery in SG&A as the historical incurrence of these costs was included in SG&A in the consolidated statement of operations in prior periods. | ||||||||||||
On July 30, 2013, subsidiaries of Meritor completed the sale of the company's overall 50-percent ownership interest in Suspensys Sistemas Automotivos LTDA (the “Suspensys joint venture”) to the company's joint venture partner, Randon S.A. Implementos E Participações (“Randon”). The Suspensys joint venture was formed in 2002 and is primarily engaged in the manufacture and sale of air and mechanical suspension systems for trucks, buses and trailers, trailer axles, third axles, hubs and drums for trucks, buses and trailers. The purchase price for the sale was $195 million, which was composed of $190 million in cash (approximately $4 million of which was in the form of a pre-closing cash dividend) and $5 million in lease abatements for a facility in Brazil leased to the company from the Suspensys joint venture. The sale was completed pursuant to a Purchase and Sale Agreement dated as of April 29, 2013. The company recognized a $125 million pre-tax ($92 million, after-tax) gain associated with this sale. | ||||||||||||
The company’s investments in non-consolidated joint ventures are as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Commercial Truck & Industrial | $ | 106 | $ | 102 | ||||||||
Aftermarket & Trailer | — | — | ||||||||||
Total investments in non-consolidated joint ventures | $ | 106 | $ | 102 | ||||||||
The company’s equity in earnings of non-consolidated joint ventures is as follows (in millions): | ||||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Commercial Truck & Industrial | $ | 38 | $ | 36 | $ | 45 | ||||||
Aftermarket & Trailer | — | 6 | 7 | |||||||||
Total equity in earnings of affiliates | $ | 38 | $ | 42 | $ | 52 | ||||||
The summarized financial information presented below represents the combined accounts of the company’s non-consolidated joint ventures related to its continuing operations (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Current assets | $ | 441 | $ | 382 | ||||||||
Non-current assets | 152 | 150 | ||||||||||
Total assets | $ | 593 | $ | 532 | ||||||||
Current liabilities | $ | 262 | $ | 219 | ||||||||
Non-current liabilities | 127 | 118 | ||||||||||
Total liabilities | $ | 389 | $ | 337 | ||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales | $ | 1,268 | $ | 1,552 | $ | 1,787 | ||||||
Gross profit | 167 | 201 | 215 | |||||||||
Net income | 458 | 96 | 123 | |||||||||
Dividends received from the company’s non-consolidated joint ventures were $36 million in fiscal year 2014, $30 million in fiscal year 2013 and $47 million in fiscal year 2012. | ||||||||||||
The company had sales to its non-consolidated joint ventures of approximately $3 million, $11 million and $6 million in fiscal years 2014, 2013 and 2012, respectively. These sales exclude sales of $141 million, $151 million and $165 million in fiscal years 2014, 2013 and 2012, respectively, to a joint venture in the company’s Commercial Truck & Industrial segment, which are eliminated as the company purchases these components back after value add provided by the joint venture. The company had purchases from its non-consolidated joint ventures of approximately $760 million, $885 million and $973 million in fiscal years 2014, 2013 and 2012, respectively. Additionally, the company leases space and provides certain administrative and technical services to various non-consolidated joint ventures. The company collected $5 million, $8 million and $3 million for such leases and services during fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||
Amounts due from the company’s non-consolidated joint ventures were $46 million and $38 million at September 30, 2014 and 2013, respectively, and are included in Receivables, trade and other, net in the consolidated balance sheet. Amounts due to the company’s non-consolidated joint ventures were $101 million and $94 million at September 30, 2014 and 2013, respectively, and are included in Accounts payable in the consolidated balance sheet. | ||||||||||||
The fair value of the company’s investment in its Automotive Axles Limited joint venture was approximately $59 million and $18 million at September 30, 2014 and 2013, respectively, based on quoted market prices as this joint venture is listed and publicly traded on the Bombay Stock Exchange in India. | ||||||||||||
The company holds a variable interest in a joint venture accounted for under the equity method of accounting. The joint venture manufactures components for commercial vehicle applications primarily on behalf of the company. The variable interest relates to a supply arrangement between the company and the joint venture whereby the company supplies certain components to the joint venture on a cost-plus basis. The company is not the primary beneficiary of the joint venture, as the joint venture partner has shared or absolute control over key manufacturing operations, labor relationships, financing activities and certain other functions of the joint venture. Therefore, the company does not consolidate the joint venture. At September 30, 2014 and 2013, the company’s investment in the joint venture was $43 million and $35 million, respectively, representing the company’s maximum exposure to loss. This amount is included in investments in non-consolidated joint ventures (see Note 11). |
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Other Current Liabilities Disclosure [Abstract] | ' | |||||||||||
OTHER CURRENT LIABILITIES | ' | |||||||||||
OTHER CURRENT LIABILITIES | ||||||||||||
Other current liabilities are summarized as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Compensation and benefits | $ | 146 | $ | 141 | ||||||||
Income taxes | 8 | 8 | ||||||||||
Taxes other than income taxes | 50 | 47 | ||||||||||
Accrued interest | 15 | 16 | ||||||||||
Product warranties | 27 | 20 | ||||||||||
Restructuring (see Note 5) | 9 | 9 | ||||||||||
Asbestos-related liabilities (see Note 22) | 17 | 18 | ||||||||||
Indemnity obligations (see Note 22) | 11 | 12 | ||||||||||
Other | 68 | 68 | ||||||||||
Other current liabilities | $ | 351 | $ | 339 | ||||||||
The company records estimated product warranty costs at the time of shipment of products to customers. Warranty reserves are primarily based on factors that include past claims experience, sales history, product manufacturing and engineering changes and industry developments. Liabilities for product recall campaigns are recorded at the time the company’s obligation is probable and can be reasonably estimated. Policy repair actions to maintain customer relationship are recorded as other liabilities at the time an obligation is probable and can be reasonably estimated. Product warranties, including recall campaigns, not expected to be paid within one year are recorded as a non-current liability. | ||||||||||||
A summary of the changes in product warranties is as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Total product warranties – beginning of year | $ | 57 | $ | 44 | $ | 48 | ||||||
Accruals for product warranties (1) | 22 | 31 | 22 | |||||||||
Payments | (22 | ) | (20 | ) | (18 | ) | ||||||
Change in estimates and other | (6 | ) | 2 | (8 | ) | |||||||
Total product warranties – end of year | 51 | 57 | 44 | |||||||||
Less: non-current product warranties (see Note 14) | (24 | ) | (37 | ) | (28 | ) | ||||||
Product warranties – current | $ | 27 | $ | 20 | $ | 16 | ||||||
(1) Includes an accrual of $12 million for a specific warranty contingency related to a non-safety, product performance issue recognized during fiscal year 2013. Of the $12 million, $8 million was reversed in fiscal year 2014 as the company moved from a full recall campaign to a fix-as-find approach (see Note 22). |
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
OTHER LIABILITIES | ' | |||||||
OTHER LIABILITIES | ||||||||
Other liabilities are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Asbestos-related liabilities (see Note 22) | $ | 105 | $ | 96 | ||||
Restructuring (see Note 5) | 2 | 3 | ||||||
Non-current deferred income tax liabilities (see Note 21) | 103 | 100 | ||||||
Liabilities for uncertain tax positions (see Note 21) | 14 | 17 | ||||||
Product warranties (see Note 13) | 24 | 37 | ||||||
Environmental (see Note 22) | 7 | 11 | ||||||
Indemnity obligations (see Note 22) | 17 | 26 | ||||||
Other | 37 | 45 | ||||||
Other liabilities | $ | 309 | $ | 335 | ||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
LONG-TERM DEBT | ' | |||||||||||||||||||||||||||
LONG-TERM DEBT | ||||||||||||||||||||||||||||
Long-Term Debt, net of discounts where applicable, is summarized as follows (in millions): | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
8.125 percent notes due 2015 | $ | — | $ | 84 | ||||||||||||||||||||||||
10.625 percent notes due 2018 (net of issuance discount of $3) | — | 247 | ||||||||||||||||||||||||||
4.625 percent convertible notes due 2026 (1) | 55 | 55 | ||||||||||||||||||||||||||
4.0 percent convertible notes due 2027 (1) | 162 | 200 | ||||||||||||||||||||||||||
7.875 percent convertible notes due 2026 (net of issuance discount of $21 and $23, respectively) (1) | 229 | 227 | ||||||||||||||||||||||||||
6.75 percent notes due 2021 (2) | 275 | 275 | ||||||||||||||||||||||||||
6.25 percent notes due 2024 (2) | 225 | — | ||||||||||||||||||||||||||
Term loan | — | 45 | ||||||||||||||||||||||||||
Capital lease obligation | 26 | 28 | ||||||||||||||||||||||||||
Export financing arrangements | 31 | 18 | ||||||||||||||||||||||||||
Unamortized gain on interest rate swap termination | — | 2 | ||||||||||||||||||||||||||
Unamortized discount on convertible notes | (31 | ) | (43 | ) | ||||||||||||||||||||||||
Subtotal | 972 | 1,138 | ||||||||||||||||||||||||||
Less: current maturities | (7 | ) | (13 | ) | ||||||||||||||||||||||||
Long-term debt | $ | 965 | $ | 1,125 | ||||||||||||||||||||||||
-1 | The 4.625 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | |||||||||||||||||||||||||||
-2 | The 6.75 percent,and the 6.25 percent notes contain a call option, which allows for early redemption. | |||||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||||
On February 13, 2014, the company amended and restated its senior secured revolving credit facility. Pursuant to the revolving credit agreement as amended, the company has a $499 million revolving credit facility, $89 million of which matures in April 2017 for banks that elected not to extend their commitments under the revolving credit facility existing at December 31, 2013, and $410 million of which matures in February 2019. The availability under this facility is dependent upon various factors, including principally performance against certain financial covenants as highlighted below. | ||||||||||||||||||||||||||||
The availability under the revolving credit facility is subject to certain financial covenants based on (i) the ratio of the company's priority debt (consisting principally of amounts outstanding under the revolving credit facility, U.S. accounts receivable securitization and factoring programs, and third-party non-working capital foreign debt) to EBITDA and (ii) the amount of annual capital expenditures. The company is required to maintain a total priority-debt-to-EBITDA ratio, as defined in the agreement, of 2.25 to 1.00 as of the last day of the fiscal quarter throughout the term of the agreement. At September 30, 2014, the company was in compliance with all covenants under the revolving credit facility with a ratio of approximately 0.36x for the priority debt-to-EBITDA covenant. | ||||||||||||||||||||||||||||
The availability under the revolving credit facility is also subject to a collateral test, pursuant to which borrowings on the revolving credit facility cannot exceed 1.0x the collateral test value. The collateral test is performed on a quarterly basis. At September 30, 2014, the revolving credit facility was collateralized by approximately $615 million of the company's assets, primarily consisting of eligible domestic U.S. accounts receivable, inventory, plant, property and equipment, intellectual property and the company's investment in all or a portion of certain of its wholly-owned subsidiaries. | ||||||||||||||||||||||||||||
Borrowings under the revolving credit facility are subject to interest based on quoted LIBOR rates plus a margin and a commitment fee on undrawn amounts, both of which are based upon the company's current corporate credit rating for senior secured facilities. At September 30, 2014, the margin over LIBOR rate was 350 basis points and the commitment fee was 50 basis points. Overnight revolving credit loans are at the prime rate plus a margin of 250 basis points. | ||||||||||||||||||||||||||||
Certain of the company's subsidiaries, as defined in the revolving credit agreement, irrevocably and unconditionally guarantee amounts outstanding under the revolving credit facility. Similar subsidiary guarantees are provided for the benefit of the holders of the publicly held notes outstanding under the company's indentures (see Note 26). | ||||||||||||||||||||||||||||
No borrowings were outstanding under the revolving credit facility at September 30, 2014 and September 30, 2013. The amended and extended revolving credit facility includes $100 million of availability for the issuance of letters of credit. At September 30, 2014 and September 30, 2013, there were no letters of credit outstanding under the revolving credit facility. | ||||||||||||||||||||||||||||
Term Loan | ||||||||||||||||||||||||||||
As part of the amendment and restatement of the revolving credit facility, on April 23, 2012 the company entered into a $100 million term loan agreement with a maturity date of April 23, 2017. On February 13, 2014, the company repaid the outstanding balance on the term loan of $41 million and recognized a $2 million loss on the repayment associated with unamortized debt issuance costs. At September 30, 2014, there was no outstanding balance on the term loan. | ||||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||
In February 2012, the company filed a shelf registration statement with the Securities and Exchange Commission, which was amended in November 2012, registering up to $750 million of debt and/or equity securities that the company may offer in one or more series on terms to be determined at the time of sale. The amount remaining at September 30, 2014 is $250 million. | ||||||||||||||||||||||||||||
Issuance of Debt Securities - 2024 Notes | ||||||||||||||||||||||||||||
On February 13, 2014 the company completed an offering of debt securities consisting of the issuance of $225 million of 10-year, 6.25 percent notes due February 15, 2024 (the "2024 Notes"). The offering and sale were made pursuant to the company's shelf registration statement. The 2024 Notes were issued under the company's indenture dated as of April 1, 1998, as supplemented. The 2024 Notes were issued at 100 percent of their principal amount. The proceeds from the sale of the 2024 Notes were $225 million and were primarily used to redeem the company’s previously outstanding $250 million 10.625 percent notes due 2018. | ||||||||||||||||||||||||||||
The 2024 Notes bear interest at a fixed rate of 6.25 percent per annum. The company pays interest on the 2024 Notes semi-annually, in arrears, on February 15 and August 15 of each year. The 2024 Notes constitute senior unsecured obligations of the company and rank equally in right of payment with existing and future senior unsecured indebtedness, and effectively junior to existing and future secured indebtedness to the extent of the security therefor. The 2024 Notes are guaranteed on a senior unsecured basis by each of the company's subsidiaries from time to time guaranteeing its senior secured credit facility. The guarantees rank equally with existing and future senior unsecured indebtedness of the guarantors and will be effectively subordinated to all of the existing and future secured indebtedness of the guarantors, to the extent of the value of the assets securing such indebtedness. | ||||||||||||||||||||||||||||
Prior to February 15, 2019, the company may redeem, at its option, from time to time, the 2024 Notes, in whole or in part, at a redemption price equal to 100 percent of the principal amount of the 2024 Notes to be redeemed plus an applicable premium (as defined in the indenture under which the 2024 Notes were issued) and any accrued and unpaid interest. On or after February 15, 2019, the company may redeem, at its option, from time to time, the 2024 Notes, in whole or in part, at the redemption prices (expressed as percentages of the principal amount of the 2024 Notes to be redeemed) set forth below, plus accrued and unpaid interest, if any, if redeemed during the 12-month period beginning on February 15 of the years indicated below: | ||||||||||||||||||||||||||||
Year | Redemption Price | |||||||||||||||||||||||||||
2019 | 103.13% | |||||||||||||||||||||||||||
2020 | 102.08% | |||||||||||||||||||||||||||
2021 | 101.04% | |||||||||||||||||||||||||||
2022 and thereafter | 100.00% | |||||||||||||||||||||||||||
Prior to February15, 2017, the company may redeem, at its option, from time to time, up to 35 percent of the aggregate principal amount of the 2024 Notes with the net cash proceeds of one or more public sales of the company's common stock at a redemption price equal to 106.25 percent of the principal amount, plus accrued and unpaid interest, if any, provided that at least 65 percent of the aggregate principal amount of 2024 Notes originally issued remains outstanding after each such redemption and notice of any such redemption is mailed within 90 days of any such sale of common stock. | ||||||||||||||||||||||||||||
If a Change of Control (as defined in the indenture under which the 2024 Notes were issued) occurs, unless the company has exercised its right to redeem the 2024 Notes, each holder of 2024 Notes may require the company to repurchase some or all of such holder's 2024 Notes at a purchase price equal to 101 percent of the principal amount of the 2024 Notes to be repurchased, plus accrued and unpaid interest, if any. | ||||||||||||||||||||||||||||
Issuance of Debt Securities - 2021 Notes | ||||||||||||||||||||||||||||
On May 31, 2013, the company completed an offering of debt securities consisting of the issuance of $275 million of 8-year, 6.75 percent notes due June 15, 2021 (the "2021 Notes"). The offering and sale were made pursuant to the company's shelf registration statement. The 2021 Notes were issued under the company's indenture dated as of April 1, 1998, as supplemented. The 2021 Notes were issued at 100 percent of their principal amount. The proceeds from the sale of the 2021 Notes were $275 million and were primarily used to complete a cash tender offer for $167 million of the company’s previously outstanding $250 million 8.125 percent notes due 2015. | ||||||||||||||||||||||||||||
The 2021 Notes bear interest at a fixed rate of 6.75 percent per annum. The company pays interest on the 2021 Notes semi-annually, in arrears, on June 15 and December 15 of each year. The 2021 Notes constitute senior unsecured obligations of the company and rank equally in right of payment with existing and future senior unsecured indebtedness, and effectively junior to existing and future secured indebtedness to the extent of the security therefor. The 2021 Notes are guaranteed on a senior unsecured basis by each of the company's subsidiaries from time to time guaranteeing its senior secured credit facility. The guarantees rank equally with existing and future senior unsecured indebtedness of the guarantors and will be effectively subordinated to all of the existing and future secured indebtedness of the guarantors, to the extent of the value of the assets securing such indebtedness. | ||||||||||||||||||||||||||||
Prior to June 15, 2016, the company may redeem, at its option, from time to time, the 2021 Notes, in whole or in part, at a redemption price equal to the 100 percent of the principal amount of the 2021 Notes to be redeemed plus an applicable premium (as defined in the indenture under which the 2021 Notes were issued) and any accrued and unpaid interest. On or after June 15, 2016, the company may redeem, at its option, from time to time, the 2021 Notes, in whole or in part, at the redemption prices (expressed as percentages of the principal amount of the 2021 Notes to be redeemed) set forth below, plus accrued and unpaid interest, if any, if redeemed during the 12-month period beginning on June 15 of the years indicated below: | ||||||||||||||||||||||||||||
Year | Redemption Price | |||||||||||||||||||||||||||
2016 | 105.06% | |||||||||||||||||||||||||||
2017 | 103.38% | |||||||||||||||||||||||||||
2018 | 101.69% | |||||||||||||||||||||||||||
2019 and thereafter | 100.00% | |||||||||||||||||||||||||||
Prior to June 15, 2016, the company also may redeem, at its option, from time to time, up to 35 percent of the aggregate principal amount of the 2021 Notes with the net cash proceeds of one or more public sales of the company's common stock at a redemption price equal to 106.75 percent of the principal amount, plus accrued and unpaid interest, if any, so long as at least 65 percent the aggregate principal amount of 2021 Notes originally issued remains outstanding after each such redemption and notice of any such redemption is mailed within 90 days of any such sale of common stock. | ||||||||||||||||||||||||||||
If a Change of Control (as defined in the indenture under which the 2021 Notes were issued) occurs, unless the company has exercised its right to redeem the 2021 Notes, each holder of 2021 Notes may require the company to repurchase some or all of such holder's 2021 Notes at a purchase price equal to 101 percent of the principal amount of the 2021 Notes to be repurchased, plus accrued and unpaid interest, if any. | ||||||||||||||||||||||||||||
Repurchase of Debt Securities | ||||||||||||||||||||||||||||
On September 20, 2014, the company completed the redemption of its outstanding 8.125 percent notes due September 15, 2015. The notes were redeemed at a premium equal to 7 percent of their principal amount. The repurchase of $84 million of 8.125 percent notes was accounted for as an extinguishment of debt, and accordingly, the company recognized a net loss on debt extinguishment of $5 million consisting of $6 million of premium net of $1 million acceleration of the remaining unamortized gain on a related interest rate swap termination. The net loss on debt extinguishment is included in interest expense, net in the consolidated statement of operations. | ||||||||||||||||||||||||||||
On August 5, 2014, the company repurchased $38 million of its 4.0 percent convertible notes due February 15, 2027. The notes were purchased at a premium equal to 7 percent of their principal amount. The repurchase of $38 million of 4.0 percent convertible notes were accounted for as an extinguishment of debt, and accordingly, the company recognized a net loss on debt extinguishment of $5 million, the majority of which is premium. The net loss on debt extinguishment is included in interest expense, net in the consolidated statement of operations. | ||||||||||||||||||||||||||||
On March 15, 2014, the company completed the redemption of its 10.625 percent notes due March 15, 2018. The notes were redeemed at a premium equal to 5 percent of their principal amount. The repurchase of $250 million of 10.625 percent notes was accounted for as an extinguishment of debt, and accordingly, the company recognized a net loss on debt extinguishment of $19 million, which consisted of $6 million of unamortized discount and deferred issuance costs and $13 million of premium. The net loss on debt extinguishment is included in interest expense, net in the consolidated statement of operations. | ||||||||||||||||||||||||||||
On June 5, 2013, the company completed a cash tender offer for its 8.125 percent notes due September 15, 2015. The notes were repurchased at a premium equal to 14 percent of their principal amount. The repurchase of $167 million of 8.125 percent notes was accounted for as an extinguishment of debt, and accordingly, the company recognized a net loss on debt extinguishment of $19 million, which is included in interest expense, net in the consolidated statement of operations. | ||||||||||||||||||||||||||||
2013 Convertible Senior Unsecured Notes | ||||||||||||||||||||||||||||
In December 2012, the company issued $250 million of 7.875 percent convertible senior unsecured notes due 2026 (the “2013 convertible notes”). The 2013 convertible notes were sold by the company to qualified institutional buyers in a private placement exempt from the registration requirements of the Securities Act of 1933. The 2013 convertible notes have an initial principal amount of $900 per note and will accrete to $1,000 per note on December 1, 2020 at an effective interest rate of 10.9 percent. Net proceeds received by the company, after issuance costs and discounts, were approximately $220 million. | ||||||||||||||||||||||||||||
The company pays 7.875 percent cash interest on the principal amount of the 2013 convertible notes semi-annually in arrears on June 1 and December 1 of each year to holders of record at the close of business on the preceding May 15 and November 15, respectively, and at maturity to the holders that present the 2013 convertible notes for payment. Interest accrues on the principal amount thereof from and including the date the 2013 convertible notes are issued or from, and including, the last date in respect of which interest has been paid or provided for, as the case may be, to, but excluding, the next interest payment date. | ||||||||||||||||||||||||||||
The 2013 convertible notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the company's subsidiaries. The 2013 convertible notes are senior unsecured obligations and rank equally in right of payment with all of the company's existing and future senior unsecured indebtedness and are junior to any of the company existing and future secured indebtedness. | ||||||||||||||||||||||||||||
The 2013 convertible notes will be convertible in certain circumstances into cash up to the principal amount at maturity of the 2013 Convertible Note surrendered for conversion and, if applicable, shares of the company's common stock (subject to a conversion share cap as described below), based on an initial conversion rate, subject to adjustment, equivalent to 83.3333 shares per $1,000 principal amount at maturity of 2013 convertible notes (which represents an initial conversion price of $12.00 per share), only under the following circumstances: | ||||||||||||||||||||||||||||
(1) Prior to June 1, 2025, during any calendar quarter after the calendar quarter ending December 31, 2012, if the closing sale price of the company's common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 120 percent of the applicable conversion price in effect on the last trading day of the immediately preceding calendar quarter; | ||||||||||||||||||||||||||||
(2) Prior to June 1, 2025, during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount at maturity of 2013 convertible notes was equal to or less than 97 percent of the conversion value of the 2013 convertible notes on each trading day during such five consecutive trading day period; | ||||||||||||||||||||||||||||
(3) Prior to June 1, 2025, if the company has called the 2013 convertible notes for redemption; | ||||||||||||||||||||||||||||
(4) Prior to June 1, 2025, upon the occurrence of specified corporate transactions; or | ||||||||||||||||||||||||||||
(5) At any time on or after June 1, 2025. | ||||||||||||||||||||||||||||
On or after December 1, 2020, the company may redeem the 2013 convertible notes at its option, in whole or in part, at a redemption price in cash equal to 100 percent of the principal amount at maturity of the 2013 convertible notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Further, holders may require the company to purchase all or a portion of their 2013 convertible notes at a purchase price in cash equal to 100 percent of the principal amount at maturity of the 2013 convertible notes to be purchased, plus accrued and unpaid interest, on December 1, 2020 or upon certain fundamental changes. The maximum number of shares of common stock those Notes are convertible into is approximately 19 million shares. | ||||||||||||||||||||||||||||
The company used the net proceeds of approximately $220 million from the offering of the 2013 convertible notes (after discounts and issuance costs) and additional cash to acquire a portion of its outstanding 4.625 percent convertible senior notes due 2026 (the “4.625 percent notes”) in transactions that settled concurrently with the closing of the 2013 Convertible Note offering. Approximately $245 million of $300 million principal amount of the 4.625 percent notes were acquired for an aggregate purchase price of approximately $236 million (including accrued interest). The company recognized a loss on debt extinguishment of $5 million. | ||||||||||||||||||||||||||||
Accounting guidance requires that cash-settled convertible debt, such as the 2013 convertible notes, be separated into debt and equity components at issuance and a value be assigned to each. The value assigned to the debt component is the estimated fair value, as of the issuance date, of a similar bond without the conversion feature. The difference between the bond cash proceeds and this estimated fair value, representing the value assigned to the equity component, is recorded as a debt discount. The company measures the debt component at fair value by utilizing a discounted cash flow model. This model utilizes observable inputs such as contractual repayment terms, benchmark forward yield curves, and yield curves and quoted market prices of its own nonconvertible debt. The yield curves are acquired from an independent source that is widely used in the financial industry and reviewed internally by personnel with appropriate expertise in valuation methodologies. The estimated fair value of the debt component of the Notes was $216 million (Level 2). The amount of the equity component recognized was $9 million. | ||||||||||||||||||||||||||||
2026 and 2027 convertible notes | ||||||||||||||||||||||||||||
In February 2007, the company issued $200 million of 4.00 percent convertible senior unsecured notes due 2027 (the "2027 convertible notes"). In August 2014, the company acquired approximately $38 million of the $200 million principal amount of the 2027 convertible notes. The 2027 convertible notes bear cash interest at a rate of 4.00 percent per annum from the date of issuance through February 15, 2019, payable semi-annually in arrears on February 15 and August 15 of each year. After February 15, 2019, the principal amount of the notes will be subject to accretion at a rate that provides holders with an aggregate annual yield to maturity of 4.00 percent. | ||||||||||||||||||||||||||||
The 2027 convertible notes are convertible into shares of the company’s common stock at an initial conversion rate, subject to adjustment, equivalent to 37.4111 shares of common stock per $1,000 initial principal amount of notes, which represents an initial conversion price of approximately $26.73 per share. If converted, the accreted principal amount will be settled in cash and the remainder of the company’s conversion obligation, if any, in excess of such accreted principal amount will be settled in cash, shares of common stock, or a combination thereof, at the company’s election. Holders may convert their 2027 convertible notes | ||||||||||||||||||||||||||||
at any time on or after February 15, 2025. The maximum number of shares of common stock the 2027 convertible notes are convertible into is approximately 6 million shares. | ||||||||||||||||||||||||||||
In March 2006, the company issued $300 million of 4.625 percent convertible senior unsecured notes due 2026 (the "2026 convertible notes"). In December 2012, the company acquired approximately $245 million of $300 million principal amount of the 2026 convertible notes. The 2026 convertible notes bear cash interest at a rate of 4.625 percent per annum from the date of issuance through March 1, 2016, payable semi-annually in arrears on March 1 and September 1 of each year. After March 1, 2016, the principal amount of the 2026 convertible notes will be subject to accretion at a rate that provides holders with an aggregate annual yield to maturity of 4.625 percent. | ||||||||||||||||||||||||||||
The 2026 convertible notes are convertible into shares of the company’s common stock at an initial conversion rate, subject to adjustment, equivalent to 47.6667 shares of common stock per $1,000 initial principal amount of notes, which represents an initial conversion price of approximately $20.98 per share. If converted, the accreted principal amount will be settled in cash and the remainder of the company’s conversion obligation, if any, in excess of such accreted principal amount will be settled in cash, shares of common stock, or a combination thereof, at the company’s election. Holders may convert their 2026 convertible notes at any time on or after March 1, 2024. The maximum number of shares of common stock the 2026 convertible notes are convertible into is approximately 3 million shares. | ||||||||||||||||||||||||||||
Prior to February 15, 2025 (for the 2027 convertible notes) and March 1, 2024 (for the 2026 convertible notes), holders may convert their notes only under the following circumstances: | ||||||||||||||||||||||||||||
• | during any calendar quarter, if the closing price of the company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 120 percent of the applicable conversion price; | |||||||||||||||||||||||||||
• | during the five business day period after any five consecutive trading day period in which the average trading price per $1,000 initial principal amount of notes is equal to or less than 97 percent of the average conversion value of the notes during such five consecutive trading day period; | |||||||||||||||||||||||||||
• | upon the occurrence of specified corporate transactions; or | |||||||||||||||||||||||||||
• | if the notes are called by the company for redemption. | |||||||||||||||||||||||||||
On or after February 15, 2019, the company may redeem the 2027 convertible notes, in whole or in part, for cash at a redemption price equal to 100 percent of the accreted principal amount plus any accrued and unpaid interest. On each of February 15, 2019 and 2022, or upon certain fundamental changes, holders may require the company to purchase all or a portion of their 2027 convertible notes at a purchase price in cash equal to 100 percent of the accreted principal amount plus any accrued and unpaid interest. On or after March 1, 2016, the company may redeem the 2026 convertible notes, in whole or in part, for cash at a redemption price equal to 100 percent of the accreted principal amount plus any accrued and unpaid interest. On each of March 1, 2016, 2018, 2020, 2022 and 2024, or upon certain fundamental changes, holders may require the company to purchase all or a portion of their 2026 convertible notes at a purchase price in cash equal to 100 percent of the accreted principal amount plus any accrued and unpaid interest. | ||||||||||||||||||||||||||||
Both the 2027 convertible notes and 2026 convertible notes are fully and unconditionally guaranteed by certain subsidiaries of the company that currently guarantee the company’s obligations under its senior secured credit facility and other publicly held notes (see Revolving Credit Facility above). | ||||||||||||||||||||||||||||
The estimated aggregate fair value of the equity component of the 2026 convertible notes and 2027 convertible notes of $108 million was recognized in additional paid-in capital upon adoption of the accounting guidance for cash-settled convertible debt mentioned above. In addition, the company allocated $4 million of unamortized debt issuance costs to the equity component and recognized this amount as a reduction to additional paid-in capital. The company also recognized a discount on convertible notes of $108 million, which is being amortized as non-cash interest expense over periods of ten and twelve years for the 2026 convertible notes and 2027 convertible notes, respectively. Upon recognition of the equity component of the convertible notes, the company also recognized a deferred tax liability of $39 million as the tax effect of the basis difference between carrying and notional values of the convertible notes. The carrying value of this deferred tax liability was offset with certain net deferred tax assets in the first quarter of fiscal year 2009 for determining valuation allowances against those deferred tax assets (see Note 21). | ||||||||||||||||||||||||||||
The following table summarizes the principal amounts and related unamortized discount on all convertible notes (in millions): | ||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Principal amount of convertible notes | $ | 467 | $ | 505 | ||||||||||||||||||||||||
Unamortized discount on convertible notes | (52 | ) | (66 | ) | ||||||||||||||||||||||||
Net carrying value | $ | 415 | $ | 439 | ||||||||||||||||||||||||
The following table summarizes other information related to the convertible notes: | ||||||||||||||||||||||||||||
2026 convertible notes | 2027 convertible notes | 2013 convertible notes | ||||||||||||||||||||||||||
Total amortization period for debt discount (in years): | 10 | 12 | 8 | |||||||||||||||||||||||||
Remaining amortization period for debt discount (in years): | 2 | 5 | 6 | |||||||||||||||||||||||||
Effective interest rates on convertible notes: | 7 | % | 7.7 | % | 10.9 | % | ||||||||||||||||||||||
The following table summarizes interest costs recognized on convertible notes (in millions): | ||||||||||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Contractual interest coupon | $ | 30 | $ | 29 | $ | 22 | ||||||||||||||||||||||
Amortization of debt discount | 9 | 8 | 10 | |||||||||||||||||||||||||
Repurchase of convertible notes | 5 | 5 | — | |||||||||||||||||||||||||
Total | $ | 44 | $ | 42 | $ | 32 | ||||||||||||||||||||||
At September 30, 2014 and 2013, the carrying amount of the equity component related to convertible debt was $70 million and $73 million, respectively. | ||||||||||||||||||||||||||||
Debt Maturities | ||||||||||||||||||||||||||||
As of September 30, 2014, the company is contractually obligated to make payments as follows (in millions): | ||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter (2) | ||||||||||||||||||||||
Total debt (1) | $ | 1,024 | $ | 7 | $ | 22 | $ | 17 | $ | 4 | $ | 2 | $ | 972 | ||||||||||||||
-1 | Total debt excludes the unamortized discount on convertible notes of $31 million and discount of $21 million on the 7.875 percent notes due March 1, 2026. | |||||||||||||||||||||||||||
-2 | Includes the company's 4.625 percent, 4.0 percent and 7.875 percent convertible notes, which contain a put and call feature that allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | |||||||||||||||||||||||||||
Capital Leases | ||||||||||||||||||||||||||||
On March 20, 2012, the company entered into an arrangement to finance equipment acquisitions for various U.S. locations. Under this arrangement, the company can request financing from GE Capital Commercial, Inc. (GE Capital) for progress payments for equipment under construction, not to exceed $10 million at any point in time. The financing rate is equal to the 30-day LIBOR plus 475 basis points per annum. Under this arrangement, the company can also enter into lease arrangements with GE Capital for completed equipment. The lease term is 60 months and the lease interest rate is equal to the 5-year Swap Rate published by the Federal Reserve Board plus 564 basis points. As of September 30, 2014 and 2013, the company had $13 million and $15 million outstanding under this capital lease arrangement, respectively. In addition, the company had another $13 million outstanding through other capital lease arrangements at both September 30, 2014 and September 30, 2013. | ||||||||||||||||||||||||||||
As of September 30, 2014, the future minimum lease payments for noncancelable capital leases with initial terms in excess of one year were as follows: | ||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
Capital lease obligation | $ | 35 | $ | 7 | $ | 7 | $ | 6 | $ | 4 | $ | 3 | $ | 8 | ||||||||||||||
Less amounts representing interest | (9 | ) | (2 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||||||||
Principal on capital lease | $ | 26 | $ | 5 | $ | 5 | $ | 5 | $ | 3 | $ | 2 | $ | 6 | ||||||||||||||
Letter of Credit Facilities | ||||||||||||||||||||||||||||
On February 21, 2014, the company entered into an arrangement to amend and restate the letter of credit facility with Citicorp USA, Inc., as administrative agent and issuing bank, and the other lenders party thereto. Under the terms of this amended credit agreement, the company has the right to obtain the issuance, renewal, extension and increase of letters of credit up to an aggregate availability of $30 million through December 19, 2015. From December 20, 2015 through March 19, 2019 the aggregate availability is $25 million.This facility contains covenants and events of default generally similar to those existing in the company’s public debt indentures. At September 30, 2014 and 2013, $25 million and $27 million of letters of credit were outstanding under this facility. In addition, the company had $9 million of letters of credit outstanding through other letters of credit facilities at both September 30, 2014 and 2013. | ||||||||||||||||||||||||||||
Export financing arrangements | ||||||||||||||||||||||||||||
The company entered into a number of export financing arrangements through its Brazilian subsidiary during fiscal years 2014 and 2013. The export financing arrangements are issued under an incentive program of the Brazilian government to fund working capital for Brazilian companies in exportation programs. The arrangements bear interest at 5.5 percent and have maturity dates in 2016 and 2017. There were $29 million and $18 million outstanding under these arrangements at September 30, 2014 and 2013, respectively. In addition, the company had another $2 million outstanding through a similar arrangement through its India subsidiary at September 30, 2014. | ||||||||||||||||||||||||||||
Interest Rate Swap Agreements | ||||||||||||||||||||||||||||
In August 2012, the company entered into a four-year interest rate swap arrangement that effectively converted the variable interest rate on its term loan expressed as a LIBOR-based rate into a variable interest rate based on U.S. federal funds rate. In February 2014, the company repaid the outstanding balance on the term loan and then subsequently terminated the interest rate swap arrangement. | ||||||||||||||||||||||||||||
In September 2014, the company recognized $1 million of the remaining unamortized gain on an interest rate swap termination upon the repurchase of $84 million of principal of the 8.125 percent notes due September 15, 2015, which is included in net loss on debt extinguishment. | ||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||
The company has various operating leasing arrangements. Future minimum lease payments under these operating leases are $16 million in 2015, $14 million in 2016, $13 million in 2017, $13 million in 2018, $12 million in 2019 and $24 million thereafter. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||
The company’s financial instruments include cash and cash equivalents, short-term debt, long-term debt, and foreign exchange forward and options contracts. The company uses derivatives for hedging and non-trading purposes in order to manage its foreign exchange rate exposures. | ||||||||||||||||||
Foreign Exchange Contracts | ||||||||||||||||||
As a result of the company’s substantial international operations, it is exposed to foreign currency risks that arise from normal business operations, including in connection with transactions that are denominated in foreign currencies. In addition, the company translates sales and financial results denominated in foreign currencies into U.S. dollars for purposes of its consolidated financial statements. As a result, appreciation of the U.S. dollar against these foreign currencies generally will have a negative impact on reported revenues and operating income, while depreciation of the U.S. dollar against these foreign currencies will generally have a positive effect on reported revenues and operating income. For fiscal years 2014, 2013 and 2012, the company's reported financial results were adversely affected by appreciation of the U.S. dollar against foreign currencies relative to the prior years. | ||||||||||||||||||
The company has a foreign currency cash flow hedging program to reduce the company’s exposure to changes in exchange rates on foreign currency purchases and sales. The company uses foreign currency forward contracts to manage the company’s exposures arising from foreign currency exchange risk. Gains and losses on the underlying foreign currency exposures are partially offset with gains and losses on the foreign currency forward contracts. Under this foreign currency cash flow hedging program, the company has designated the foreign exchange contracts (the “contracts”) as cash flow hedges of underlying forecasted foreign currency purchases and sales. The effective portion of changes in the fair value of the contracts is recorded in Accumulated Other Comprehensive Loss (AOCL) in the consolidated balance sheet and is recognized in operating income when the underlying forecasted transaction impacts earnings. The terms of the foreign exchange contracts generally require the company to place cash on deposit as collateral if the fair value of these contracts represents a liability for the company. The fair values of the foreign exchange derivative instruments and any related collateral cash deposits are presented on a net basis as the derivative contracts are subject to master netting arrangements. The company’s foreign exchange contracts generally mature within twelve months. | ||||||||||||||||||
At September 30, 2014, 2013 and 2012, the notional amount of the company's foreign exchange contracts outstanding under its foreign currency cash flow hedging program were $47 million, $75 million, and $113 million respectively. The company classifies the cash flows associated with the contracts in cash flows from operating activities in the consolidated statement of cash flows. This is consistent with the classification of the cash flows associated with the underlying hedged item. | ||||||||||||||||||
The company generally does not hedge against its foreign currency exposure related to translations to U.S. dollars of its financial results denominated in foreign currencies. However, due to increasing foreign currency exchange risk associated with purchasing economics related to the Indian Rupee, the company entered into foreign currency option contracts on expected future purchases tied to the Indian Rupee. The contracts were entered into during April 2014 with effective dates from the start of fiscal year 2015 through the end of fiscal year 2016. Changes in fair value associated with these contracts are recorded in cost of sales. | ||||||||||||||||||
The following table summarizes the impact of the company’s derivatives instruments on comprehensive income for fiscal years ended September 30 (in millions): | ||||||||||||||||||
Location of | 2014 | 2013 | 2012 | |||||||||||||||
Gain (Loss) | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Amount of gain recognized in AOCL | AOCL | $ | 3 | $ | — | $ | 3 | |||||||||||
(effective portion) | ||||||||||||||||||
Amount of gain (loss) reclassified from AOCL | Cost of Sales | 1 | 1 | 3 | ||||||||||||||
into income (effective portion) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | Cost of Sales | — | — | — | ||||||||||||||
Amount of gain recognized in income | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Fair values of financial instruments are summarized as follows (in millions): | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Value | Value | Value | Value | |||||||||||||||
Cash and cash equivalents | $ | 247 | $ | 247 | $ | 318 | $ | 318 | ||||||||||
Short-term debt | 7 | 7 | 13 | 13 | ||||||||||||||
Long-term debt | 965 | 1,143 | 1,125 | 1,266 | ||||||||||||||
Foreign exchange forward contracts (asset) | 2 | 2 | — | — | ||||||||||||||
Foreign exchange forward contracts (liability) | — | — | 1 | 1 | ||||||||||||||
Short-term foreign currency option contracts (asset) | 2 | 2 | — | — | ||||||||||||||
Long-term foreign currency option contracts (asset) | 1 | 1 | — | — | ||||||||||||||
The following table reflects the offsetting of derivative assets and liabilities (in millions): | ||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||
Gross | Gross Amounts | Net Amounts | Gross | Gross Amounts | Net Amounts | |||||||||||||
Amounts Recognized | Offset | Reported | Amounts Recognized | Offset | Reported | |||||||||||||
Derivative Asset | ||||||||||||||||||
Foreign exchange forward contract | 2 | — | 2 | — | — | — | ||||||||||||
Derivative Liabilities | ||||||||||||||||||
Foreign exchange forward contract | — | — | — | 1 | — | 1 | ||||||||||||
Fair Value | ||||||||||||||||||
The current FASB guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical instruments (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||||||||||||||||||
• | Level 1 inputs use quoted prices in active markets for identical instruments. | |||||||||||||||||
• | Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar instruments in active markets and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | |||||||||||||||||
• | Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related instrument. | |||||||||||||||||
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest priority level input that is significant to the valuation. The company's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. | ||||||||||||||||||
Fair value of financial instruments by the valuation hierarchy at September 30, 2014 is as follows (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||
Cash and cash equivalents | $ | 247 | $ | — | $ | — | ||||||||||||
Short-term debt | — | — | 7 | |||||||||||||||
Long-term debt | — | 1,093 | 50 | |||||||||||||||
Foreign exchange forward contracts (asset) | — | 2 | — | |||||||||||||||
Short Term foreign currency option contracts | — | — | 2 | |||||||||||||||
Long Term foreign currency option contracts | — | — | 1 | |||||||||||||||
Cash and cash equivalents — All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. The carrying value approximates fair value because of the short maturity of these instruments. The company did not have any cash equivalents at September 30, 2014 or September 30, 2013. | ||||||||||||||||||
Short- and Long-term debt — Fair values are based on transaction prices at public exchange for publicly traded debt. For debt instruments that are not publicly traded, fair values are based on interest rates that would be currently available to the company for issuance of similar types of debt instruments with similar terms and remaining maturities. | ||||||||||||||||||
Foreign exchange forward contracts — The company uses foreign exchange forward purchase and sale contracts with terms of one year or less to hedge its exposure to changes in foreign currency exchange rates. The fair value of foreign exchange forward contracts is based on a model which incorporates observable inputs including quoted spot rates, forward exchange rates and discounted future expected cash flows utilizing market interest rates with similar quality and maturity characteristics. | ||||||||||||||||||
Foreign currency option contracts — The company uses foreign currency option contracts on expected future purchases tied to the Indian Rupee due to increasing foreign currency exchange risk. The contracts were entered into during April 2014 with effective dates from the start of fiscal year 2015 through the end of fiscal year 2016. The fair value of foreign currency option contracts is based on a third-party proprietary model, which incorporates inputs at varying unobservable weights of quoted spot rates, market volatility, forward rates, and time element utilizing market rates with similar quality and maturity characteristics. Changes in fair value associated with these contracts are recorded in cost of sales in the consolidated statement of operations. |
SHAREOWNERS_EQUITY
SHAREOWNERS' EQUITY | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
SHAREOWNERS' EQUITY | ' | |||||||||||||||
SHAREOWNERS’ EQUITY | ||||||||||||||||
Common Stock | ||||||||||||||||
The company is authorized to issue 500 million shares of Common Stock, with a par value of $1 per share, and 30 million shares of Preferred Stock, without par value, of which 2 million shares are designated as Series A Junior Participating Preferred Stock (Junior Preferred Stock). No shares of Preferred Stock and Junior Preferred Stock have been issued. | ||||||||||||||||
In February 2012, the company filed a shelf registration statement with the Securities and Exchange Commission, which was amended in November 2012, registering up to $750 million of debt and/or equity securities that may be offered in one or more series on terms to be determined at the time of sale. The amount remaining at September 30, 2014 was $250 million. | ||||||||||||||||
The company has reserved approximately 10 million shares of Common Stock in connection with its 2010 Long-Term Incentive Plan, as amended (LTIP) for grants of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, performance shares, restricted share units and stock awards to key employees and directors. At September 30, 2014, there were 4.8 million shares available for future grants under these plans. | ||||||||||||||||
Accumulated Other Comprehensive Loss (AOCL) | ||||||||||||||||
The components of AOCL as reported in the Consolidated Balance Sheet and Statement of Equity (Deficit), and the changes in AOCL by components, net of tax, are as follows (in millions): | ||||||||||||||||
Foreign Currency Translation | Employee Benefit Related Adjustments | Unrealized Loss, net of tax | Total | |||||||||||||
Balance at September 30, 2013 | $ | 61 | $ | (792 | ) | $ | (3 | ) | $ | (734 | ) | |||||
Other comprehensive income (loss) before reclassification | (20 | ) | (21 | ) | 2 | (39 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss - net of tax | — | 24 | — | 24 | ||||||||||||
Net current-period other comprehensive income (loss) | $ | (20 | ) | $ | 3 | $ | 2 | $ | (15 | ) | ||||||
Balance at September 30, 2014 | $ | 41 | $ | (789 | ) | $ | (1 | ) | $ | (749 | ) | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statement of Operations | ||||||||||||||
Employee Benefit Related Adjustment | ||||||||||||||||
Amortization of prior service costs | $ | (7 | ) | (a) | ||||||||||||
Amortization of actuarial losses | 46 | (a) | ||||||||||||||
Recognized prior service costs due to curtailment | (15 | ) | (a) | |||||||||||||
24 | Total before tax | |||||||||||||||
— | Tax (benefit) expense | |||||||||||||||
$ | 24 | Net of tax | ||||||||||||||
Total reclassifications for the period | 24 | Net of tax | ||||||||||||||
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 19 and 20 for additional details). | ||||||||||||||||
EQUITY_BASED_COMPENSATION
EQUITY BASED COMPENSATION | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
EQUITY BASED COMPENSATION | ' | |||||||||||||||
EQUITY BASED COMPENSATION | ||||||||||||||||
Stock Options | ||||||||||||||||
Under the company’s incentive plans, stock options are typically granted at prices equal to the fair value on the date of grant and have a maximum term of 10 years. Stock options generally vest over a three-year period from the date of grant. No stock options were granted or exercised during fiscal year 2014. During fiscal year 2013, the company granted 350,000 stock options to the Chief Executive Officer as a hiring incentive. These options vest based on the satisfaction of certain service and market performance conditions. The fair value of this option award was $1.3 million at the grant date with a derived service period of 12 months. No stock options were granted during fiscal year 2012. | ||||||||||||||||
The following is a rollforward of stock options for fiscal year 2014 (shares in thousands, exercise price and remaining contractual term represent weighted averages and aggregate intrinsic values in millions): | ||||||||||||||||
Shares | Exercise | Remaining | Aggregate | |||||||||||||
Price | Contractual | Intrinsic | ||||||||||||||
Life (years) | Value | |||||||||||||||
Outstanding — beginning of year | 864 | $ | 12.27 | |||||||||||||
Cancelled or expired | (214 | ) | 18.19 | |||||||||||||
Outstanding — end of year | 650 | $ | 10.32 | 3 | — | |||||||||||
Exercisable — end of year | 533 | $ | 10.79 | 2.7 | — | |||||||||||
The following table provides additional information about outstanding stock options at September 30, 2014 (shares in thousands, exercise price represents a weighted average): | ||||||||||||||||
Outstanding | Exercisable | |||||||||||||||
Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||
Contractual | Price | Price | ||||||||||||||
Life (years) | ||||||||||||||||
$8.00 to $12.00 | 350 | 4 | $ | 8.22 | 233 | $ | 8.22 | |||||||||
$12.01 to $16.00 | 300 | 1.8 | 12.78 | 300 | 12.78 | |||||||||||
Total | 650 | 533 | ||||||||||||||
Stock-based compensation is measured at the grant date based on the fair value of the award and is generally recognized as expense ratably on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. | ||||||||||||||||
Compensation expense is recognized for the non-vested portion of previously issued stock options. During fiscal year 2014, the company recognized $1.2 million in compensation expense associated with the expensing of stock options. Compensation expense associated with the expensing of stock options was not significant in fiscal years 2013. No compensation expense associated with the expensing of stock options was recognized in fiscal year 2012. No options were exercised in fiscal years 2014, 2013 and 2012. | ||||||||||||||||
The fair market value of the service and market performance-based option award was determined using the Monte Carlo simulation method. The Monte Carlo simulation method is subject to variability as several factors utilized must be estimated, including the derived service period, which is estimated based on the company’s judgment of likely future stock price performance as well as the company’s stock price volatility. The weighted-average fair value of options granted in fiscal year 2013 was $3.69 per share. The fair value of each option was estimated using following assumptions: | ||||||||||||||||
2013 | ||||||||||||||||
Risk-free interest rate | 1.7 | % | ||||||||||||||
Expected dividend yield | — | % | ||||||||||||||
Expected volatility | 60.4 | % | ||||||||||||||
Expected life (years) | 5 | |||||||||||||||
Restricted Stock and Restricted Units | ||||||||||||||||
The company has granted shares of restricted stock and restricted share units to certain employees and non-employee members of the Board of Directors in accordance with the existing plans. The company measures the grant price fair value of these stock-based awards at the market price of the company’s common stock as of the date of the grant. Employee awards typically vest at the end of three years and are subject to continued employment by the employee. Compensation cost associated with stock-based awards is recognized ratably over the vesting period. Cash dividends on the restricted stock, if any, are reinvested in additional shares of common stock during the vesting period. | ||||||||||||||||
In fiscal years 2014, 2013 and 2012, the company granted 218,816, 1,003,723, and 1,325,447 shares of restricted share units, respectively. The grant date weighted average fair value of these shares was $9.23, $4.43, and $6.14 for shares granted in fiscal years 2014, 2013 and 2012, respectively. The number of non-vested restricted shares and restricted share units as of September 30, 2014 was 2,038,853. The per share weighted average fair value of these non-vested shares was $7.16. | ||||||||||||||||
As of September 30, 2014, there was $2 million of total unrecognized compensation costs related to non-vested restricted shares and restricted share units. These costs are expected to be recognized over a weighted average period of one year. Total compensation expense recognized for restricted stock and restricted share units was $4 million for fiscal year 2014, $5 million in fiscal year 2013, and $6 million in fiscal year 2012. | ||||||||||||||||
Performance Share Units | ||||||||||||||||
The company has granted performance share units to all executives eligible to participate in the long-term incentive plan. The company measures the grant price fair value of these units based awards at the market price of the company’s common stock as of the date of the grant. Compensation cost associated with these stock based awards is recognized ratably over the vesting period. | ||||||||||||||||
On November 7, 2013, the Board of Directors approved a grant of performance share units to all executives eligible to participate in the long-term incentive plan. Each performance share unit represents the right to receive one share of common stock upon achievement of certain performance and time vesting criteria. The fair value of each share unit is $7.97, the company’s share price on the grant date of December 1, 2013. The number of shares that vest will be between 0% and 200% of the estimated grant date amount of 1.5 million shares. The plan allows for incremental performance share units to be issued for executive promotions on a quarterly basis. | ||||||||||||||||
The actual number of performance share units that will vest will depend upon the company’s performance relative to the established M2016 goals for the three-year performance period of October 1, 2013 to September 30, 2016, measured at the end of the performance period. The number of potential performance units will depend on meeting the established M2016 goals at the following weights: 50% associated with achieving the Adjusted EBITDA margin targets, 25% associated with reducing net debt including retirement benefit liabilities targets, and 25% associated with generating incremental booked revenue targets. | ||||||||||||||||
There were 1.8 million performance share units granted during fiscal 2014, of which 1,634,561 were not vested as of September 30, 2014. The per share weighted average fair value of the performance share units was $8.27 as of September 30, 2014. | ||||||||||||||||
For the year ended September 30, 2014, compensation cost recognized related to the performance share units was $4 million. As of September 30, 2014, there were $10 million of total unrecognized compensation costs related to non-vested performance share unit equity compensation arrangements. These costs are expected to be recognized over a weighted average period of 2 years. |
RETIREMENT_MEDICAL_PLANS
RETIREMENT MEDICAL PLANS | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ' | |||||||||||
RETIREMENT MEDICAL PLANS | ' | |||||||||||
RETIREMENT MEDICAL PLANS | ||||||||||||
The company has retirement medical plans that cover certain of its U.S. and non-U.S. employees, including certain employees of divested businesses, and provide for medical payments to eligible employees and dependents upon retirement. These plans are unfunded. | ||||||||||||
The company approved amendments to certain retiree medical plans in fiscal years 2002 and 2004. Certain of these plan amendments were challenged in lawsuits that were filed in the United States District Court for the Eastern District of Michigan (District Court) alleging the changes breached the terms of various collective bargaining agreements entered into with the United Auto Workers (the UAW lawsuit) at facilities that have either been closed or sold and alleging a companion claim under the Employee Retirement Income Security Act of 1974 (ERISA). | ||||||||||||
On December 22, 2005, the District Court issued a preliminary injunction enjoining the company from implementing the changes to retiree health benefits and ordered the company to reinstate and resume paying the full cost of health benefits for the UAW retirees at the levels existing prior to the changes made in 2002 and 2004. On August 17, 2006, the District Court granted a motion by the UAW for summary judgment and granted the UAW’s request to make the terms of the preliminary injunction permanent (the injunction). The company accounted for the injunction as a rescission of the 2002 and 2004 plan amendments and began recording the impact of the injunction in March 2006. In addition, the injunction ordered the defendants to reimburse the plaintiffs for out-of-pocket expenses incurred since the date of the earlier benefit modifications. The company has recorded a $2 million reserve at September 30, 2014 and 2013, as the best estimate of its liability for these retroactive benefits. The company continues to believe it has meritorious defenses to these actions and has appealed the District Court’s order to the U.S. Court of Appeals for the Sixth Circuit. The ultimate outcome of the UAW lawsuit may result in future plan amendments. The impact of any future plan amendments cannot be currently estimated. | ||||||||||||
On September 26, 2014, Meritor amended its retiree medical and retiree life insurance plan in the United States to cease retiree medical coverage for salaried and non-union hourly employees under the age of 65, and eliminate retiree life insurance coverage with face amounts ranging from $3,750 to $15,000. The amendment triggered a curtailment in the fourth quarter of fiscal year 2014 which immediately reduced the retiree medical liability by $16 million (i.e., a curtailment gain) and reduced retiree medical expense by $15 million. The reduction in expense was primarily attributable to the required immediate recognition of negative prior service costs which were previously being amortized into net periodic expense over the active participants remaining average service life. The $16 million reduction to the retiree medical liability established a new negative prior service cost base, which will be amortized into net period expense over the remaining average service life of approximately 8 years. | ||||||||||||
The company’s retiree medical obligations were measured as of September 30, 2014 and 2013. The following are the assumptions used in the measurement of the APBO and retiree medical expense: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.2 | % | 4.8 | % | 3.9 | % | ||||||
Health care cost trend rate | 7.4 | % | 7 | % | 7.2 | % | ||||||
Ultimate health care trend rate | 5 | % | 5 | % | 5 | % | ||||||
Year ultimate rate is reached | 2022 | 2022 | 2023 | |||||||||
The assumptions noted above are used to calculate the APBO for each fiscal year end and retiree medical expense for the subsequent fiscal year. | ||||||||||||
The discount rate is used to calculate the present value of the APBO. This rate is determined based on high-quality fixed income investments that match the duration of expected retiree medical benefits. The company has used the corporate AA/Aa bond rate for this assumption. The health care cost trend rate represents the company’s expected annual rates of change in the cost of health care benefits. The company’s projection for fiscal year 2015 is an increase in health care costs of 7.40 percent. | ||||||||||||
The APBO as of the September 30, 2014 and 2013 measurement dates are summarized as follows (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
Retirees | $ | 465 | $ | 495 | ||||||||
Employees eligible to retire | 4 | 8 | ||||||||||
Employees not eligible to retire | 8 | 8 | ||||||||||
Total | $ | 477 | $ | 511 | ||||||||
The following reconciles the change in APBO and the amounts included in the consolidated balance sheet for years ended September 30, 2014 and 2013, respectively (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
APBO — beginning of year | $ | 511 | $ | 554 | ||||||||
Service cost | — | 1 | ||||||||||
Interest cost | 23 | 21 | ||||||||||
Participant contributions | 2 | 3 | ||||||||||
Actuarial gain | (2 | ) | (20 | ) | ||||||||
Foreign currency rate changes | (1 | ) | (1 | ) | ||||||||
Curtailment gain | (16 | ) | (5 | ) | ||||||||
Benefit payments | (40 | ) | (42 | ) | ||||||||
APBO — end of year | 477 | 511 | ||||||||||
Other (1) | 2 | 2 | ||||||||||
Retiree medical liability | $ | 479 | $ | 513 | ||||||||
-1 | The company recorded a $2 million reserve for retiree medical liabilities at September 30, 2014 and 2013 as its best estimate for retroactive benefits related to the previously mentioned injunction. | |||||||||||
Actuarial losses/(gains) relate to changes in the discount rate and other actuarial assumptions. In accordance with FASB ASC Topic 715, “Compensation – Retirement Benefits”, a portion of the actuarial losses is not subject to amortization. The actuarial losses that are subject to amortization are generally amortized over the average expected remaining service life, which is approximately 8 years. Union plan amendments are generally amortized over the contract period, or 3 years. | ||||||||||||
The Medicare Prescription Drug Improvement and Modernization Act of 2003 provides for a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit at least actuarially equivalent to the benefit established by the law. The company provides retiree medical benefits under certain plans that exceed the value of the benefits that are provided by the Medicare Part D plan. Therefore, management concluded that these plans are at least actuarially equivalent to the Medicare Part D plan and the company is eligible for the federal subsidy. The impact of the subsidy was a reduction in the fiscal year 2013 and 2012 retiree medical expense of $9 million and $12 million, respectively. In September 2011, in connection with the Health Care and Education Reconciliation Act of 2010, the company converted its current prescription drug program for certain retirees to a group-based, company-sponsored Medicare Part D program, or Employer Group Waiver Plan (EGWP). In September 2012, the company converted certain additional groups of retirees to EGWP and as a result, reduced its APBO by an additional amount of approximately $25 million. These reductions to APBO are being amortized over an average expected remaining service life of approximately 8 years. In 2013, the company began using use the Part D subsidies delivered through EGWP to reduce its net retiree medical costs. As a result of this change in assumption, the company reduced its APBO by approximately $35 million. | ||||||||||||
The retiree medical liability is included in the consolidated balance sheet as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Current — included in compensation and benefits | $ | 33 | $ | 37 | ||||||||
Long-term — included in retirement benefits | 446 | 476 | ||||||||||
Retiree medical liability | $ | 479 | $ | 513 | ||||||||
The following table summarizes the amounts included in Accumulated Other Comprehensive Loss net of tax related to retiree medical liabilities as of September 30, 2014 and 2013 and changes recognized in Other Comprehensive Income (Loss) net of tax for the years ended September 30, 2014 and 2013. | ||||||||||||
Net Actuarial | Prior | Total | ||||||||||
Loss | Service | |||||||||||
Cost | ||||||||||||
(Benefit) | ||||||||||||
Balance at September 30, 2013 | $ | 169 | $ | (19 | ) | $ | 150 | |||||
Net actuarial gain for the year | (3 | ) | — | (3 | ) | |||||||
Curtailment gain | — | (16 | ) | (16 | ) | |||||||
Recognized prior service costs due to curtailment | — | 15 | 15 | |||||||||
Amortization for the year | (23 | ) | 7 | (16 | ) | |||||||
Deferred tax impact | (1 | ) | — | (1 | ) | |||||||
Balance at September 30, 2014 | $ | 142 | $ | (13 | ) | $ | 129 | |||||
Balance at September 30, 2012 | $ | 197 | $ | (6 | ) | $ | 191 | |||||
Net actuarial (gain) loss for the year | 1 | (21 | ) | (20 | ) | |||||||
Amortization for the year | (27 | ) | 8 | (19 | ) | |||||||
Curtailment gain | (5 | ) | — | (5 | ) | |||||||
Deferred tax impact | 3 | — | 3 | |||||||||
Balance at September 30, 2013 | $ | 169 | $ | (19 | ) | $ | 150 | |||||
The net actuarial loss and prior service benefit that are estimated to be amortized from accumulated other comprehensive loss into net periodic retiree medical expense in fiscal year 2015 are $22 million and $1 million, respectively. | ||||||||||||
The components of retiree medical expense for years ended September 30 are as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | — | $ | 1 | $ | 1 | ||||||
Interest cost | 23 | 21 | 24 | |||||||||
Amortization of: | ||||||||||||
Prior service benefit | (7 | ) | (8 | ) | (9 | ) | ||||||
Actuarial losses | 23 | 27 | 26 | |||||||||
Recognized prior service costs due to curtailment | $ | (15 | ) | $ | — | $ | — | |||||
Retiree medical expense | $ | 24 | $ | 41 | $ | 42 | ||||||
A one-percentage point change in the assumed health care cost trend rate for all years to, and including, the ultimate rate would have the following effects (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
Effect on total service and interest cost | ||||||||||||
1% Increase | $ | 2 | $ | 3 | ||||||||
1% Decrease | (2 | ) | (2 | ) | ||||||||
Effect on APBO | ||||||||||||
1% Increase | 46 | 50 | ||||||||||
1% Decrease | (40 | ) | (43 | ) | ||||||||
The company expects future benefit payments as follows (in millions): | ||||||||||||
Gross | Gross | |||||||||||
Benefit | Receipts(1) | |||||||||||
Payments | ||||||||||||
Fiscal 2015 | $ | 38 | $ | 5 | ||||||||
Fiscal 2016 | 39 | 6 | ||||||||||
Fiscal 2017 | 39 | 6 | ||||||||||
Fiscal 2018 | 40 | 7 | ||||||||||
Fiscal 2019 | 40 | 7 | ||||||||||
Fiscal 2020 – 2024 | 202 | 41 | ||||||||||
____________________ | ||||||||||||
-1 | Consists of subsidies and rebates available under EGWP. |
RETIREMENT_PENSION_PLANS
RETIREMENT PENSION PLANS | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
RETIREMENT PENSION PLANS | ' | |||||||||||||||||||||||
RETIREMENT PENSION PLANS | ||||||||||||||||||||||||
The company sponsors defined benefit pension plans that cover certain of its U.S. and non-U.S. employees. Pension benefits for salaried employees are based on years of credited service and compensation. Pension benefits for hourly employees are based on years of service and specified benefit amounts. The company’s funding policy provides that annual contributions to the pension trusts will be at least equal to the minimum amounts required by ERISA in the U.S. and the actuarial recommendations or statutory requirements in other countries. | ||||||||||||||||||||||||
On August 1, 2010, Meritor amended its defined benefit pension plan in the United Kingdom to cease the accrual of future benefits for all of its active plan participants. Subsequent to the freeze date, the company began making contributions to its defined contribution savings plan on behalf of the affected employees. The amount of the savings plan contribution is based on a percentage of the employees’ pay. These changes did not affect then-current retirees. The company began recording the impact of the plan freeze in the fourth quarter of fiscal year 2010. The amendment to freeze the plan triggered a curtailment in the fourth quarter of fiscal year 2010 reducing pension expense by $7 million. The reduction in expense was primarily attributable to the required immediate recognition of negative prior service costs which were previously being amortized into net periodic pension expense over the active participants remaining average service life. Subsequent to the plan freeze, accumulated actuarial losses are being amortized into net periodic pension expense over the average life expectancy of inactive plan participants of approximately 28 years rather than over their remaining average service life. | ||||||||||||||||||||||||
In April 2007, the company announced a freeze of its defined benefit pension plan for salaried and non-represented employees in the United States, effective January 1, 2008. The change affected approximately 3,800 employees including certain employees who continued to accrue benefits for an additional transition period, ending June 30, 2011. After these freeze dates, the company started making additional contributions to its defined contribution savings plan on behalf of the affected employees. The amount of the savings plan contribution is based on a percentage of the employees’ pay, with the contribution percentage increasing as a function of employees’ age. These changes do not affect plan participants who had retired prior to the freeze dates or represented employees. Accumulated actuarial losses are being amortized into net periodic pension expense over the average life expectancy of inactive plan participants of approximately 22 years. | ||||||||||||||||||||||||
During the third quarter of fiscal year 2013, the company settled five Canadian pension plans via lump-sum payments out of plan assets to participants and annuity contract purchases with an insurance company. A non-cash pre-tax settlement loss of approximately $36 million associated with the annuity purchase and lump-sum actions was recognized. In accordance with settlement accounting, $68 million of benefit obligations and $72 million of pension plan assets associated with the actions were derecognized during the quarter ended June 30, 2013. | ||||||||||||||||||||||||
In June 2013, the company amended its U.S. Retirement Plan to allow all terminated vested participants with an accrued benefit of $5,000 or less to receive a full lump-sum distribution of their benefit. The lump-sum amounts were rolled into individual retirement accounts for those participants that had an accrued benefit of $1,000 to $5,000 who did not make an affirmative election to receive their benefits. For those participants with an accrued benefit of less than $1,000, the benefits were automatically distributed to the participant. | ||||||||||||||||||||||||
Additionally, in June 2013, the company announced a special election window to offer voluntary lump-sum pension payouts to eligible terminated vested participants with an accrued benefit in the U.S. Retirement Plan that settled the company's obligation to those who accepted the offer. The program provided participants with a one-time choice of electing to receive a lump-sum settlement of their remaining pension benefit. Lump-sum distributions under this election window were paid in September 2013. The company recognized a $73 million non-cash settlement loss during the fourth quarter of fiscal year 2013 associated with these payouts. In addition, pension plan assets and pension benefit obligations of $157 million and $178 million, respectively, were derecognized as a result of the U.S. lump-sum settlements. | ||||||||||||||||||||||||
The company’s pension obligations were measured as of September 30, 2014, 2013 and 2012, except for the five Canadian pension plans which were settled in the third quarter of fiscal year 2013. The pension obligation associated with the settled Canadian pension plans were measured as of June 30, 3013 and September 30, 2012. The U.S. plans include qualified and non-qualified pension plans. The company’s most significant non-U.S. plan is located in the United Kingdom. Other non-U.S. plans include plans primarily in Canada, Germany and Switzerland. | ||||||||||||||||||||||||
The following are the significant assumptions used in the measurement of the projected benefit obligation (PBO) and net periodic pension expense: | ||||||||||||||||||||||||
U.S. Plans | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate | 4.2 | % | — | 4.3 | % | 4.75 | % | — | 4.95 | % | 4.2 | % | ||||||||||||
Assumed return on plan assets (beginning of the year) | 8.00% | 8.00% | 8 | % | ||||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate (1) | 1.9 | % | — | 4.1 | % | 2.4 | % | — | 4.7 | % | 2.1 | % | — | 4.6 | % | |||||||||
Assumed return on plan assets (beginning of the year) (1) | 2.25 | % | — | 7.25 | % | 2.5 | % | — | 7.25 | % | 2.5 | % | — | 7.5 | % | |||||||||
Rate of compensation increase (2) | 2 | % | — | 3 | % | 2 | % | — | 3 | % | 2 | % | — | 3 | % | |||||||||
____________________ | ||||||||||||||||||||||||
(1) | The discount rate for the company’s U.K. pension plan was 4.10 percent, 4.70 percent and 4.60 percent for 2014, 2013 and 2012, respectively. The assumed return on plan assets for this plan was 7.25 percent, 7.25 percent and 7.50 percent for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
(2) | The rate of compensation increase for the company's Canadian pension plans was 3.00 percent for 2014, 2013 and 2012. The rate of compensation increase for the company's Swiss pension plans was 2.00 percent for 2014, 2013 and 2012. | |||||||||||||||||||||||
The discount rate is used to calculate the present value of the PBO at the balance sheet date and net periodic pension expense for the subsequent fiscal year. The rate used reflects a rate of return on high-quality fixed income investments that match the duration of expected benefit payments. The company uses a portfolio of long-term corporate AA/Aa bonds that match the duration of the expected benefit payments to establish the discount rate for this assumption. | ||||||||||||||||||||||||
The assumed return on plan assets is used to determine net periodic pension expense. The rate of return assumptions are based on projected long-term market returns for the various asset classes in which the plans are invested, weighted by the target asset allocations. An incremental amount for active plan asset management and diversification, where appropriate, is included in the rate of return assumption. The return assumption is reviewed annually. | ||||||||||||||||||||||||
The rate of compensation increase represents the long-term assumption for expected increases to salaries for pay-related plans. The accompanying disclosures include pension obligations associated with businesses classified as discontinued operations. | ||||||||||||||||||||||||
The following table reconciles the change in the PBO, the change in plan assets and amounts included in the consolidated balance sheet for the years ended September 30, 2014 and 2013, respectively (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
U.S. | Non- U.S. | Total | U.S. | Non- U.S. | Total | |||||||||||||||||||
PBO — beginning of year | $ | 1,017 | $ | 691 | $ | 1,708 | $ | 1,312 | $ | 754 | $ | 2,066 | ||||||||||||
Service cost | 1 | 1 | 2 | 1 | 2 | 3 | ||||||||||||||||||
Interest cost | 49 | 31 | 80 | 54 | 29 | 83 | ||||||||||||||||||
Actuarial loss (gain) | 67 | 38 | 105 | (102 | ) | 17 | (85 | ) | ||||||||||||||||
Curtailment gain | — | — | — | (4 | ) | (1 | ) | (5 | ) | |||||||||||||||
Settlements | — | — | — | (178 | ) | (70 | ) | (248 | ) | |||||||||||||||
Amendments | (4 | ) | — | (4 | ) | — | — | — | ||||||||||||||||
Benefit payments | (71 | ) | (28 | ) | (99 | ) | (66 | ) | (33 | ) | (99 | ) | ||||||||||||
Foreign currency rate changes | — | 2 | 2 | — | (7 | ) | (7 | ) | ||||||||||||||||
PBO — end of year | $ | 1,059 | $ | 735 | $ | 1,794 | $ | 1,017 | $ | 691 | $ | 1,708 | ||||||||||||
Change in plan assets | ||||||||||||||||||||||||
Fair value of assets — beginning of year | $ | 710 | $ | 657 | $ | 1,367 | $ | 864 | $ | 673 | $ | 1,537 | ||||||||||||
Actual return on plan assets | 94 | 69 | 163 | 3 | 53 | 56 | ||||||||||||||||||
Employer contributions | 99 | 38 | 137 | 66 | 49 | 115 | ||||||||||||||||||
Settlements | — | — | — | (157 | ) | (74 | ) | (231 | ) | |||||||||||||||
Benefit payments | (71 | ) | (28 | ) | (99 | ) | (66 | ) | (33 | ) | (99 | ) | ||||||||||||
Foreign currency rate changes | — | 7 | 7 | — | (11 | ) | (11 | ) | ||||||||||||||||
Fair value of assets — end of year | $ | 832 | $ | 743 | $ | 1,575 | $ | 710 | $ | 657 | $ | 1,367 | ||||||||||||
Funded status | $ | (227 | ) | $ | 8 | $ | (219 | ) | $ | (307 | ) | $ | (34 | ) | $ | (341 | ) | |||||||
Amounts included in the consolidated balance sheet at September 30 are comprised of the following (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Non-current assets | $ | — | $ | 104 | $ | 104 | $ | — | $ | 55 | $ | 55 | ||||||||||||
Current liabilities | (5 | ) | (3 | ) | (8 | ) | (6 | ) | (3 | ) | (9 | ) | ||||||||||||
Retirement benefits-non-current | (222 | ) | (93 | ) | (315 | ) | (301 | ) | (86 | ) | (387 | ) | ||||||||||||
Net amount recognized | $ | (227 | ) | $ | 8 | $ | (219 | ) | $ | (307 | ) | $ | (34 | ) | $ | (341 | ) | |||||||
The following tables summarize the amounts included in Accumulated Other Comprehensive Loss net of tax related to pension liabilities as of September 30, 2014 and 2013 and changes recognized in Other Comprehensive Income (Loss) net of tax for the year ended September 30, 2014. | ||||||||||||||||||||||||
Net Actuarial Loss | ||||||||||||||||||||||||
U.S. | Non-U.S. | Total | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 408 | $ | 234 | $ | 642 | ||||||||||||||||||
Net actuarial loss for the year | 26 | 16 | 42 | |||||||||||||||||||||
Amortization for the year | (15 | ) | (8 | ) | (23 | ) | ||||||||||||||||||
Deferred tax impact | — | (1 | ) | (1 | ) | |||||||||||||||||||
Balance at September 30, 2014 | $ | 419 | $ | 241 | $ | 660 | ||||||||||||||||||
Balance at September 30, 2012 | $ | 560 | $ | 259 | $ | 819 | ||||||||||||||||||
Net actuarial loss (gain) for the year | (58 | ) | 13 | (45 | ) | |||||||||||||||||||
Amortization for the year | (17 | ) | (9 | ) | (26 | ) | ||||||||||||||||||
Curtailment gain | (4 | ) | — | (4 | ) | |||||||||||||||||||
Deferred tax impact | — | 9 | 9 | |||||||||||||||||||||
Settlements | (73 | ) | (38 | ) | (111 | ) | ||||||||||||||||||
Balance at September 30, 2013 | $ | 408 | $ | 234 | $ | 642 | ||||||||||||||||||
The company estimates that $27 million of net actuarial losses will be amortized from accumulated other comprehensive loss into net periodic pension expense during fiscal year 2015. The non-current portion of the pension liability is included in Retirement Benefits in the consolidated balance sheet as follows (in millions): | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension liability | $ | 315 | $ | 387 | ||||||||||||||||||||
Retiree medical liability — long term (see Note 19) | 446 | 476 | ||||||||||||||||||||||
Other | 14 | 23 | ||||||||||||||||||||||
Total retirement benefits | $ | 775 | $ | 886 | ||||||||||||||||||||
In accordance with FASB guidance, the PBO, accumulated benefit obligation (ABO) and fair value of plan assets are required to be disclosed for all plans where the ABO is in excess of plan assets. The difference between the PBO and ABO is that the PBO includes projected compensation increases. | ||||||||||||||||||||||||
Additional information is as follows (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
ABO | Assets | Total | ABO | Assets | Total | |||||||||||||||||||
Exceeds | Exceed | Exceeds | Exceed | |||||||||||||||||||||
Assets | ABO | Assets | ABO | |||||||||||||||||||||
PBO | $ | 1,180 | $ | 614 | $ | 1,794 | $ | 1,116 | $ | 592 | $ | 1,708 | ||||||||||||
ABO | 1,180 | 613 | 1,793 | 1,115 | 592 | 1,707 | ||||||||||||||||||
Plan Assets | 857 | 718 | 1,575 | 719 | 648 | 1,367 | ||||||||||||||||||
The components of net periodic pension expense are as follows (in millions): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost | $ | 2 | $ | 3 | $ | 2 | ||||||||||||||||||
Interest cost | 80 | 83 | 91 | |||||||||||||||||||||
Assumed rate of return on plan assets | (104 | ) | (112 | ) | (105 | ) | ||||||||||||||||||
Amortization of — | ||||||||||||||||||||||||
Actuarial losses | 23 | 26 | 22 | |||||||||||||||||||||
Curtailment gain | — | (1 | ) | — | ||||||||||||||||||||
Settlement loss | — | 111 | 1 | |||||||||||||||||||||
Net periodic pension expense | 1 | 110 | 11 | |||||||||||||||||||||
____________________ | ||||||||||||||||||||||||
Disclosures on investment policies and strategies, categories of plan assets, fair value measurements of plan assets, and significant concentrations of risk are included below. | ||||||||||||||||||||||||
Investment Policy and Strategy | ||||||||||||||||||||||||
The company’s primary investment objective for its pension plan assets is to generate a total investment return sufficient to meet present and future benefit payments while minimizing the company’s cash contributions over the life of the plans. In order to accomplish this objective, the company maintains target allocations to identify and manage exposures. The target asset allocation ranges for the U.S. plan are 30–50 percent equity investments, 30–50 percent fixed income investments and 10–30 percent alternative investments. Alternative investments include private equities, real estate, hedge funds and partnership interests. The target asset allocation ranges for the non-U.S. plans are 15–40 percent equity investments, 30–60 percent fixed income investments, 0–10 percent real estate and 10–40 percent alternative investments. | ||||||||||||||||||||||||
Investment strategies and policies for the company’s pension plan assets reflect a balance of risk-reducing and return-seeking considerations. The objective of minimizing the volatility of assets relative to liabilities is addressed primarily through asset diversification. Assets are broadly diversified across several asset classes to achieve risk-adjusted returns that accomplish this objective. | ||||||||||||||||||||||||
The majority of pension plan assets are externally managed through active managers. Managers are only permitted to invest within established asset classes and follow the strategies for which they have been appointed. The company uses investment guidelines and reviews assets returns and investment decisions made by the managers to ensure that they are in accordance with the company’s strategies. | ||||||||||||||||||||||||
Concentration of Risk | ||||||||||||||||||||||||
The company seeks to mitigate risks relative to performance of the plan assets. Assets are invested in various classes with different risk and return characteristics in order to ensure that they are sufficient to pay benefits. The company’s investment strategies incorporate a return-seeking approach through equity and alternative investments, while seeking to minimize the volatility of the plans’ assets relative to its liabilities through investments in fixed income securities. The significant areas of risk related to these strategies include equity, interest rate, and operating risk. | ||||||||||||||||||||||||
A portion of plan assets is allocated to equity and alternative investments that are expected, over time, to earn higher returns. Within this return seeking portfolio, asset diversification is utilized to reduce uncompensated risk. | ||||||||||||||||||||||||
Plan assets are also allocated to fixed income investments, which seek to minimize interest rate risk volatility relative to pension liabilities. The fixed income portfolio partially matches the long-dated nature of the pension liabilities reducing interest rate risk. Interest rate decreases generally increase the value of fixed income assets, partially offsetting the related increase in the liabilities, while interest rate increases generally result in a decline in the value of fixed income assets while reducing the present value of the liabilities. | ||||||||||||||||||||||||
Operating risks consist of the risks of inadequate diversification and weak controls. The company has established policies and procedures in order to mitigate this risk by monitoring investment manager performance, reviewing periodic compliance information, and ensuring that the plans’ managers invest in accordance with the company’s investment strategies. | ||||||||||||||||||||||||
Fair Value of Investments | ||||||||||||||||||||||||
The current FASB guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||||||||||||||||||||||||
• | Level 1 inputs use quoted prices in active markets for identical assets that the Plan has the ability to access. | |||||||||||||||||||||||
• | Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets in active markets and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | |||||||||||||||||||||||
• | Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. | |||||||||||||||||||||||
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest priority level input that is significant to the valuation. The company's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. | ||||||||||||||||||||||||
Following are descriptions, valuation methodologies and other information related to plan assets. | ||||||||||||||||||||||||
Cash and cash equivalents: The fair value of cash and cash equivalents is valued at cost. | ||||||||||||||||||||||||
Equity Securities: The overall equity category includes common and preferred stocks issued by U.S. and international companies as well as equity funds that invest in these instruments. All investments generally allow near-term (within 90 days of the measurement date) liquidity and are held in issues that are actively traded to facilitate transactions at minimum cost. The aggregate equity portfolio is diversified to avoid exposure to any investment strategy, single economic sector, industry group, or individual security. | ||||||||||||||||||||||||
The fair value of equity securities is determined by either direct or indirect quoted market prices. When the value of assets held in separate accounts is not published, the value is based on the underlying holdings, which are primarily direct quoted market prices on regulated financial exchanges. | ||||||||||||||||||||||||
Most of the equity investments allow daily redemptions, with some providing monthly liquidity or requiring a 30-day notice. | ||||||||||||||||||||||||
Fixed Income Securities: The overall fixed income category includes U.S. dollar-denominated and international marketable bonds and convertible debt securities as well as fixed income funds that invest in these instruments. All assets generally allow near-term liquidity and are held in issues which are actively traded to facilitate transactions at minimum cost. The aggregate fixed income portfolio is diversified to avoid exposure to any investment strategy, maturity, issuer or credit quality. | ||||||||||||||||||||||||
The fair value of fixed income securities is determined by either direct or indirect quoted market prices. When the value of assets held in separate accounts is not published, the value is based on the underlying holdings, which are primarily direct quoted market prices on regulated financial exchanges. | ||||||||||||||||||||||||
U.S. fixed income securities typically offer daily liquidity, with only one Level 2 investment allowing quarterly redemptions. International and emerging fixed income investment vehicles generally provide daily liquidity. | ||||||||||||||||||||||||
Commingled Funds: The fair value of commingled funds is accounted for by a custodian. The custodian obtains valuations from underlying managers based on market quotes for the most liquid assets and alternative methods for assets that do not have sufficient trading activity to derive prices. The company and custodian review the methods used by the underlying managers to value the assets. | ||||||||||||||||||||||||
Real Estate: Real estate provides an indirect investment into a diversified and multi-sector portfolio of property assets. The fair value of real estate investments is valued by the fund managers. The fund managers value the real estate investments via independent third-party appraisals on a periodic basis. Assumptions used to revalue the properties are updated every quarter. For the component of the real estate portfolio under development, the investments are carried at cost, which approximates fair value, until they are completed and valued by a third-party appraiser. | ||||||||||||||||||||||||
Due to the long-term nature of real estate investments, liquidity is provided on a quarterly to semi-annual basis. These investments were classified accordingly to reflect these restrictions. | ||||||||||||||||||||||||
Partnerships/Private Equity: This category includes investments in private equity and hedge funds. Such investments may be made directly or through pooled funds, including fund of funds structures. The fair market value of the company’s interest in partnerships and private equity is valued by the fund managers. The valuation is based on the net present value of observable inputs (dividends, cash flows, earnings, etc.), which are discounted at applicable discount rates. The company and custodian review the methods used by the underlying managers to value the assets. | ||||||||||||||||||||||||
Most of these investments offer quarterly redemption opportunities. Some partnerships and private equity investments, due to the nature of their investment strategy and underlying holdings, offer less frequent liquidity. When available, liquidity events are closely evaluated. | ||||||||||||||||||||||||
The valuation methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | ||||||||||||||||||||||||
The fair value of plan assets at September 30, 2014 by asset category is as follows (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
U.S. – Large cap | $ | 104 | $ | — | $ | — | $ | 104 | ||||||||||||||||
U.S. – Small cap | 25 | — | — | 25 | ||||||||||||||||||||
Emerging equity | — | 22 | — | 22 | ||||||||||||||||||||
Private equity | — | — | 80 | 80 | ||||||||||||||||||||
International equity | 65 | 12 | — | 77 | ||||||||||||||||||||
Partnerships – equity | — | 57 | 1 | 58 | ||||||||||||||||||||
Total equity investments | $ | 194 | $ | 91 | $ | 81 | $ | 366 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
U.S. fixed income | $ | 24 | $ | 252 | $ | — | $ | 276 | ||||||||||||||||
Emerging fixed income | — | 22 | — | 22 | ||||||||||||||||||||
International fixed income | — | — | 11 | 11 | ||||||||||||||||||||
U.S. high yield | — | 15 | — | 15 | ||||||||||||||||||||
Partnerships fixed income | — | — | 18 | 18 | ||||||||||||||||||||
Total fixed income | $ | 24 | $ | 289 | $ | 29 | $ | 342 | ||||||||||||||||
Alternatives – Partnerships | — | 63 | 60 | 123 | ||||||||||||||||||||
Cash and cash equivalents | — | 1 | — | 1 | ||||||||||||||||||||
Total assets at fair value | $ | 218 | $ | 444 | $ | 170 | $ | 832 | ||||||||||||||||
Non-U.S. Plans | 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
International equity | $ | 103 | $ | 112 | $ | — | $ | 215 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
Corporate bonds | — | 139 | — | 139 | ||||||||||||||||||||
Other fixed income investments | — | 205 | — | 205 | ||||||||||||||||||||
Total fixed income | $ | — | $ | 344 | $ | — | $ | 344 | ||||||||||||||||
Real estate | — | — | 67 | 67 | ||||||||||||||||||||
Commingled funds | — | 9 | — | 9 | ||||||||||||||||||||
Alternative investments | — | — | 61 | 61 | ||||||||||||||||||||
Cash and cash equivalents | — | 47 | — | 47 | ||||||||||||||||||||
Total assets at fair value | $ | 103 | $ | 512 | $ | 128 | $ | 743 | ||||||||||||||||
The fair value of plan assets at September 30, 2013 by asset category is as follows (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
U.S. – Large cap | $ | 97 | $ | — | $ | — | $ | 97 | ||||||||||||||||
U.S. – Small cap | 29 | — | — | 29 | ||||||||||||||||||||
Emerging equity | — | 22 | — | 22 | ||||||||||||||||||||
Private equity | — | — | 50 | 50 | ||||||||||||||||||||
International equity | 81 | — | — | 81 | ||||||||||||||||||||
Partnerships – equity | — | 41 | — | 41 | ||||||||||||||||||||
Total equity investments | $ | 207 | $ | 63 | $ | 50 | $ | 320 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
U.S. fixed income | $ | 21 | $ | 173 | $ | — | $ | 194 | ||||||||||||||||
Emerging fixed income | — | 20 | — | 20 | ||||||||||||||||||||
International fixed income | — | — | 9 | 9 | ||||||||||||||||||||
U.S. high yield | — | — | 12 | 12 | ||||||||||||||||||||
Partnerships fixed income | — | — | 19 | 19 | ||||||||||||||||||||
Total fixed income | $ | 21 | $ | 193 | $ | 40 | $ | 254 | ||||||||||||||||
Alternatives – Partnerships | — | 71 | 53 | 124 | ||||||||||||||||||||
Cash and cash equivalents | — | 12 | — | 12 | ||||||||||||||||||||
Total assets at fair value | $ | 228 | $ | 339 | $ | 143 | $ | 710 | ||||||||||||||||
Non-U.S. Plans | 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
International equity | $ | 94 | $ | 102 | $ | — | $ | 196 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
Corporate bonds | — | 145 | — | 145 | ||||||||||||||||||||
Other fixed income investments | — | 137 | — | 137 | ||||||||||||||||||||
Total fixed income | $ | — | $ | 282 | $ | — | $ | 282 | ||||||||||||||||
Real estate | — | — | 59 | 59 | ||||||||||||||||||||
Commingled funds | — | 9 | — | 9 | ||||||||||||||||||||
Alternative investments | — | — | 56 | 56 | ||||||||||||||||||||
Cash and cash equivalents | — | 55 | — | 55 | ||||||||||||||||||||
Total assets at fair value | $ | 94 | $ | 448 | $ | 115 | $ | 657 | ||||||||||||||||
Unfunded Commitment | ||||||||||||||||||||||||
As of September 30, 2014, the U.S. plan had $20 million of unfunded investment commitments related to plan assets. The majority of this amount is attributed to partnership investments that the plan will invest in gradually over the course of several years. Non-U.S. plans currently do not have any unfunded commitments. | ||||||||||||||||||||||||
The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended September 30, 2014 (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2014 | |||||||||||||||||||||||
Fair Value at October 1, 2013 | Return on Plan Assets: Attributable to Assets Held at September 30, 2014 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2014 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Private equity | $ | 50 | $ | 23 | $ | 13 | $ | (6 | ) | $ | — | $ | 80 | |||||||||||
U.S. high yield | 12 | 1 | 2 | — | (15 | ) | — | |||||||||||||||||
International fixed income | 9 | 2 | — | — | — | 11 | ||||||||||||||||||
Partnerships – | ||||||||||||||||||||||||
Fixed income | 19 | 1 | 2 | (4 | ) | — | 18 | |||||||||||||||||
Equity | — | — | — | — | 1 | 1 | ||||||||||||||||||
Alternatives – | ||||||||||||||||||||||||
Partnerships | 53 | 9 | — | (2 | ) | — | 60 | |||||||||||||||||
Total Level 3 fair value | $ | 143 | $ | 36 | $ | 17 | $ | (12 | ) | $ | (14 | ) | $ | 170 | ||||||||||
Non-U.S. Plans | 2014 | |||||||||||||||||||||||
Fair Value at October 1, 2013 | Return on Plan Assets: Attributable to Assets Held at September 30, 2014 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2014 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Real estate | $ | 59 | $ | 9 | $ | — | $ | (1 | ) | $ | — | $ | 67 | |||||||||||
Alternative investments | 56 | 5 | — | — | — | 61 | ||||||||||||||||||
Total Level 3 fair value | $ | 115 | $ | 14 | $ | — | $ | (1 | ) | $ | — | $ | 128 | |||||||||||
The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended September 30, 2013 (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2013 | |||||||||||||||||||||||
Fair Value at October 1, 2012 | Return on Plan Assets: Attributable to Assets Held at September 30, 2013 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2013 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Private equity | $ | 48 | $ | 1 | $ | 3 | $ | (2 | ) | $ | — | $ | 50 | |||||||||||
U.S. high yield | 10 | 2 | — | — | — | 12 | ||||||||||||||||||
International fixed income | 10 | (1 | ) | — | — | — | 9 | |||||||||||||||||
Partnerships – | ||||||||||||||||||||||||
Fixed income | 13 | 1 | 9 | (4 | ) | — | 19 | |||||||||||||||||
Equity | 13 | — | — | — | (13 | ) | — | |||||||||||||||||
Alternatives – | ||||||||||||||||||||||||
Partnerships | 49 | 7 | — | (3 | ) | — | 53 | |||||||||||||||||
Total Level 3 fair value | $ | 143 | $ | 10 | $ | 12 | $ | (9 | ) | $ | (13 | ) | $ | 143 | ||||||||||
Non-U.S. Plans | 2013 | |||||||||||||||||||||||
Fair Value at October 1, 2012 | Return on Plan Assets: Attributable to Assets Held at September 30, 2011 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2013 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Real estate | $ | 50 | $ | 1 | $ | 10 | $ | (2 | ) | $ | — | $ | 59 | |||||||||||
Alternative investments | 64 | 4 | — | (12 | ) | — | 56 | |||||||||||||||||
Total Level 3 fair value | $ | 114 | $ | 5 | $ | 10 | $ | (14 | ) | $ | — | $ | 115 | |||||||||||
Information about the expected cash flows for the U.S. and non-U.S. pension plans is as follows (in millions): | ||||||||||||||||||||||||
U.S. | Non U.S. | Total | ||||||||||||||||||||||
Expected employer contributions: | ||||||||||||||||||||||||
Fiscal 2015 | $ | 5 | $ | 5 | $ | 10 | ||||||||||||||||||
Expected benefit payments: | ||||||||||||||||||||||||
Fiscal 2015 | 77 | 28 | 105 | |||||||||||||||||||||
Fiscal 2016 | 76 | 29 | 105 | |||||||||||||||||||||
Fiscal 2017 | 74 | 30 | 104 | |||||||||||||||||||||
Fiscal 2018 | 73 | 31 | 104 | |||||||||||||||||||||
Fiscal 2019 | 72 | 32 | 104 | |||||||||||||||||||||
Fiscal 2020-2024 | 345 | 175 | 520 | |||||||||||||||||||||
The company also sponsors certain defined contribution savings plans for eligible employees. Expense related to these plans, including company matching contributions, was $14 million, $13 million and $14 million for fiscal years 2014, 2013 and 2012, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The income tax provisions were calculated based upon the following components of income (loss) before income taxes (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. income (loss) | $ | 204 | $ | (59 | ) | $ | 23 | |||||
Foreign income | 111 | 110 | 114 | |||||||||
Total | $ | 315 | $ | 51 | $ | 137 | ||||||
The components of the benefit (provision) for income taxes are summarized as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax benefit (expense): | ||||||||||||
U.S. | $ | (1 | ) | $ | (11 | ) | $ | 4 | ||||
Foreign | (32 | ) | (59 | ) | (47 | ) | ||||||
State and local | — | 2 | (1 | ) | ||||||||
Total current tax expense | (33 | ) | (68 | ) | (44 | ) | ||||||
Deferred tax benefit (expense): | ||||||||||||
U.S. | (1 | ) | (6 | ) | (7 | ) | ||||||
Foreign | 3 | 13 | (5 | ) | ||||||||
State and local | — | (3 | ) | (1 | ) | |||||||
Total deferred tax benefit (expense) | 2 | 4 | (13 | ) | ||||||||
Income tax expense | $ | (31 | ) | $ | (64 | ) | $ | (57 | ) | |||
The deferred tax expense or benefit represents tax effects of current year deductions or items of income that will be recognized in future periods for tax purposes. The foreign current tax expense in fiscal year 2013 includes the tax effect of the Suspensys JV sale. The foreign deferred tax benefit in fiscal year 2013 primarily relates to the benefit received from the Canadian pension settlement charge. | ||||||||||||
Net current and non-current deferred income tax assets (liabilities) included in the consolidated balance sheet consist of the tax effects of temporary differences related to the following (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Accrued compensation and benefits | $ | 18 | $ | 18 | ||||||||
Accrued product warranties | 18 | 22 | ||||||||||
Inventory costs | 19 | 17 | ||||||||||
Receivables | 13 | 12 | ||||||||||
Accrued retiree healthcare benefits | 190 | 209 | ||||||||||
Retirement pension plans | 102 | 131 | ||||||||||
Property | 4 | 1 | ||||||||||
Loss and credit carryforwards | 678 | 733 | ||||||||||
Other | 64 | 90 | ||||||||||
Sub-total | 1,106 | 1,233 | ||||||||||
Less: Valuation allowances | (1,030 | ) | (1,166 | ) | ||||||||
Deferred income taxes - asset | $ | 76 | $ | 67 | ||||||||
Taxes on undistributed income | $ | (46 | ) | $ | (32 | ) | ||||||
Intangible assets | (88 | ) | (89 | ) | ||||||||
Debt basis difference | (12 | ) | (16 | ) | ||||||||
Deferred income taxes - liability | $ | (146 | ) | $ | (137 | ) | ||||||
Net deferred income tax liabilities | $ | (70 | ) | $ | (70 | ) | ||||||
Net current and non-current deferred income tax assets (liabilities) are included in the consolidated balance sheet as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Other current assets (see Note 9) | $ | 21 | $ | 23 | ||||||||
Other current liabilities | (3 | ) | (6 | ) | ||||||||
Net current deferred income taxes — asset | 18 | 17 | ||||||||||
Other assets (see Note 11) | 15 | 13 | ||||||||||
Other liabilities (see Note 14) | (103 | ) | (100 | ) | ||||||||
Net non-current deferred income taxes — liability | $ | (88 | ) | $ | (87 | ) | ||||||
In prior years, the company established valuation allowances against its U.S. net deferred tax assets and the net deferred tax assets of its 100%-owned subsidiaries in France, Germany, Italy, Sweden, U.K. and certain other countries. The company evaluates deferred income taxes quarterly to determine if valuation allowances are required. The company is required to assess whether valuation allowances should be established against its deferred tax assets based on the consideration of all available evidence using a “more-likely-than-not” standard. As of September 30, 2014 and 2013, the company continues to maintain valuation allowances in these jurisdictions. | ||||||||||||
The expiration periods for $678 million of deferred tax assets related to net operating losses and tax credit carryforwards are as follows: $26 million between fiscal years 2015 and 2019; $326 million between fiscal years 2020 and 2029; $28 million between fiscal years 2030 and 2034; and $298 million can be carried forward indefinitely. The company has provided valuation allowances on these deferred tax assets of approximately $22 million, $323 million, $24 million and $298 million, respectively. Realization of deferred tax assets representing net operating loss carryforwards for which a valuation allowance has not been provided is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of such deferred tax assets will be realized. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if the company is unable to generate sufficient future taxable income during the carryforward period. | ||||||||||||
For fiscal years 2014 and 2013, no provision has been made for U.S., state or additional foreign income taxes related to approximately $666 million and $661 million of undistributed earnings of foreign subsidiaries that have been or are intended to be permanently reinvested. Quantification of the deferred tax liability, if any, associated with permanently reinvested earnings is not practicable. | ||||||||||||
The company’s provision for income taxes was different from the provision for income taxes calculated at the U.S. statutory rate for the reasons set forth below (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expense for income taxes at statutory tax rate of 35% | $ | (110 | ) | $ | (18 | ) | $ | (48 | ) | |||
State and local income taxes | — | 1 | (2 | ) | ||||||||
Foreign income taxed at rates other than 35% | 13 | 3 | 7 | |||||||||
Joint venture equity income | 5 | 6 | 13 | |||||||||
Tax effect of Suspensys JV sale | — | (16 | ) | — | ||||||||
Refunds of prior year taxes | — | — | 5 | |||||||||
Goodwill | (1 | ) | (8 | ) | (6 | ) | ||||||
Medicare Part D subsidy | — | 1 | 4 | |||||||||
U.S. tax impact on distributions from subsidiaries and joint ventures | (18 | ) | 19 | (90 | ) | |||||||
Nondeductible expenses | (10 | ) | (9 | ) | (11 | ) | ||||||
Valuation allowances | 89 | (44 | ) | 68 | ||||||||
Other | 1 | 1 | 3 | |||||||||
Income tax expense | $ | (31 | ) | $ | (64 | ) | $ | (57 | ) | |||
In fiscal year 2014, the company recorded $210 million of earnings related to the antitrust lawsuit settlement with Eaton Corporation. The earnings did not impact U.S. federal income tax expense, since they were offset by a corresponding release of a valuation allowance in the U.S. | ||||||||||||
In fiscal year 2013, the company changed its permanently reinvested assertion in certain jurisdictions, which resulted in a non-cash benefit of $42 million. This benefit does not impact income tax expense, since it is offset by a corresponding release of a valuation allowance in the U.S. | ||||||||||||
In fiscal year 2012, the company recorded a non-cash charge of $90 million primarily related to the impact of foreign distributions as a result of legal entity restructuring actions. This charge does not impact income tax expense, since it is offset by a corresponding release of a valuation allowance in the U.S. | ||||||||||||
The total amount of gross unrecognized tax benefits the company recorded in accordance with FASB ASC Topic 740 as of September 30, 2014 was $88 million, of which $9 million represents the amount, if recognized, would favorably affect the effective income tax rate in future periods. | ||||||||||||
A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period is as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of the period | $ | 94 | $ | 107 | $ | 109 | ||||||
Additions to tax positions recorded during the current year | 3 | 3 | 11 | |||||||||
Additions to tax positions recorded during the prior year | — | — | — | |||||||||
Reduction to tax position recorded in prior years | (2 | ) | (6 | ) | (5 | ) | ||||||
Reductions to tax positions due to lapse of statutory limits | (7 | ) | (10 | ) | (8 | ) | ||||||
Translation, other | — | — | — | |||||||||
Balance at end of the period | $ | 88 | $ | 94 | $ | 107 | ||||||
The company’s continuing practice is to recognize interest and penalties on uncertain tax positions in the provision for income taxes in the consolidated statement of operations. At September 30, 2014 and September 30, 2013, the company recorded $3 million and $2 million, respectively, of interest on uncertain tax positions in the consolidated balance sheet. In addition, penalties of $2 million were recorded at each of September 30, 2014 and September 30, 2013. The company recorded an income tax benefit of $3 million related to interest for the year end September 30, 2013. The amount was immaterial for years ended September 30, 2014 and September 30, 2012. The company recorded an income tax benefit of $2 million related to penalties for year ended September 30, 2013. The amount was immaterial for the years ended September 30, 2014 and 2012. | ||||||||||||
The company files tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. The company’s Canadian federal income tax returns for fiscal years 2008 through 2010 are currently under audit. The company’s Brazil subsidiary is currently under audit for calendar year 2008. The company's German subsidiary is currently under audit for fiscal years 2009 through 2013. In addition, the company is under audit in various U.S. state tax jurisdictions for various years. It is reasonably possible that audit settlements, the conclusion of current examinations or the expiration of the statute of limitations in several jurisdictions could change the company’s unrecognized tax benefits during the next twelve months. Due to the expected expiration of the statue of limitations in several jurisdictions, the company estimates that the unrecognized tax benefits could decrease in the next twelve months between $2 million and $4 million. | ||||||||||||
In addition to the audits listed above, the company has open tax years primarily from 1999-2013 with various significant taxing jurisdictions including the United States, Brazil, Canada, China, France, Mexico and the U.K. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing or inclusion of revenue and expenses or the sustainability of income tax credits for a given audit cycle. The company has recorded a tax benefit only for those positions that meet the more-likely-than-not standard. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
CONTINGENCIES | ' | |||||||||||
CONTINGENCIES | ||||||||||||
Environmental | ||||||||||||
Federal, state and local requirements relating to the discharge of substances into the environment, the disposal of hazardous wastes and other activities affecting the environment have, and will continue to have, an impact on the operations of the company. The process of estimating environmental liabilities is complex and dependent upon evolving physical and scientific data at the sites, uncertainties as to remedies and technologies to be used and the outcome of discussions with regulatory agencies. The company records liabilities for environmental issues in the accounting period in which they are considered to be probable and the cost can be reasonably estimated. At environmental sites in which more than one potentially responsible party has been identified, the company records a liability for its allocable share of costs related to its involvement with the site, as well as an allocable share of costs related to insolvent parties or unidentified shares. At environmental sites in which Meritor is the only potentially responsible party, the company records a liability for the total probable and estimable costs of remediation before consideration of recovery from insurers or other third parties. | ||||||||||||
The company has been designated as a potentially responsible party at nine Superfund sites, excluding sites as to which the company’s records disclose no involvement or as to which the company’s liability has been finally determined. Management estimates the total reasonably possible costs the company could incur for the remediation of Superfund sites at September 30, 2014 to be approximately $18 million, of which $2 million is recorded as a liability. Included in reasonably possible amounts are estimates for certain remediation actions that may be required if current actions are deemed inadequate by the regulators. Environmental remediation costs recorded with respect to the Superfund sites were $1 million, $1 million, and $1 million in fiscal years 2014, 2013, and 2012, respectively. | ||||||||||||
In addition to the Superfund sites, various other lawsuits, claims and proceedings have been asserted against the company, alleging violations of federal, state and local environmental protection requirements, or seeking remediation of alleged environmental impairments, principally at previously disposed-of properties. For these matters, management has estimated the total reasonably possible costs the company could incur at September 30, 2014 to be approximately $38 million, of which $17 million is probable and recorded as a liability. During fiscal years 2014, 2013 and 2012, the company recorded environmental remediation costs of $5 million, $7 million and $6 million, respectively, with respect to these matters, resulting from revised estimates to remediate these sites. | ||||||||||||
Included in the company’s environmental liabilities are costs for on-going operation, maintenance and monitoring at environmental sites in which remediation has been put into place. This liability is discounted using discount rates in the range of 0.25 to 3.75 percent and is approximately $10 million at September 30, 2014. The undiscounted estimate of these costs is approximately $11 million. | ||||||||||||
Following are the components of the Superfund and non-Superfund environmental reserves (in millions): | ||||||||||||
Superfund Sites | Non-Superfund | Total | ||||||||||
Sites | ||||||||||||
Balance at September 30, 2013 | $ | 2 | $ | 17 | $ | 19 | ||||||
Payments | (1 | ) | (5 | ) | (6 | ) | ||||||
Accruals | 1 | 5 | 6 | |||||||||
Balance at September 30, 2014 | $ | 2 | $ | 17 | $ | 19 | ||||||
___________________ | ||||||||||||
There were $2 million, $3 million, and $4 million of environmental remediation costs recognized in other operating expense in the consolidated statement of operations in fiscal years 2014, 2013 and 2012, respectively. In addition, $4 million, $5 million and $3 million of environmental remediation costs were recorded in loss from discontinued operations in the consolidated statement of operations for fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||
Environmental reserves are included in Other Current Liabilities (see Note 13) and Other Liabilities (see Note 14) in the consolidated balance sheet. | ||||||||||||
The actual amount of costs or damages for which the company may be held responsible could materially exceed the foregoing estimates because of uncertainties, including the financial condition of other potentially responsible parties, the success of the remediation, discovery of new contamination and other factors that make it difficult to predict actual costs accurately. However, based on management’s assessment, after consulting with outside advisors that specialize in environmental matters, and subject to the difficulties inherent in estimating these future costs, the company believes that its expenditures for environmental capital investment and remediation necessary to comply with present regulations governing environmental protection and other expenditures for the resolution of environmental claims will not have a material effect on the company’s business, financial condition or results of operations. In addition, in future periods, new laws and regulations, changes in remediation plans, advances in technology and additional information about the ultimate clean-up remedies could significantly change the company’s estimates. Management cannot assess the possible effect of compliance with future requirements. | ||||||||||||
Asbestos | ||||||||||||
Maremont Corporation (“Maremont”), a subsidiary of Meritor, manufactured friction products containing asbestos from 1953 through 1977, when it sold its friction product business. Arvin Industries, Inc., a predecessor of the company, acquired Maremont in 1986. Maremont and many other companies are defendants in suits brought by individuals claiming personal injuries as a result of exposure to asbestos-containing products. Maremont had approximately 5,700 and 5,400 pending asbestos-related claims at September 30, 2014 and 2013, respectively. Although Maremont has been named in these cases, in the cases where actual injury has been alleged, very few claimants have established that a Maremont product caused their injuries. Plaintiffs’ lawyers often sue dozens or even hundreds of defendants in individual lawsuits, seeking damages against all named defendants irrespective of the disease or injury and irrespective of any causal connection with a particular product. For these reasons, the total number of claims filed is not necessarily the most meaningful factor in determining Maremont's asbestos related liability. | ||||||||||||
Maremont’s asbestos-related reserves and corresponding asbestos-related recoveries are summarized as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Pending and future claims | $ | 73 | $ | 73 | ||||||||
Billed but unpaid claims | 3 | 1 | ||||||||||
Asbestos-related liabilities | $ | 76 | $ | 74 | ||||||||
Asbestos-related insurance recoveries | 49 | 58 | ||||||||||
A portion of the asbestos-related recoveries and reserves are included in Other Current Assets and Liabilities , with the majority of the amounts recorded in Other Assets and Liabilities (see Notes 9, 11, 13 and 14). | ||||||||||||
Pending and Future Claims: Maremont engaged Bates White LLC (Bates White), a consulting firm with extensive experience estimating costs associated with asbestos litigation, to assist with determining the estimated cost of resolving pending and future asbestos-related claims that have been, and could reasonably be expected to be, filed against Maremont. Although it is not possible to estimate the full range of costs because of various uncertainties, Bates White advised Maremont that it would be possible to determine an estimate of a reasonable forecast of the cost of the probable settlement and defense costs of resolving pending and future asbestos-related claims, based on historical data and certain assumptions with respect to events that may occur in the future. | ||||||||||||
Bates White provided a reasonable and probable estimate that consisted of a range of equally likely possibilities of Maremont’s obligation for asbestos personal injury claims over the next ten years of $73 million to $105 million. After consultation with Bates White, Maremont recognized a liability for pending and future claims over the next ten years of $73 million as of September 30, 2014 and 2013. The ultimate cost of resolving pending and future claims is estimated based on the history of claims and expenses for plaintiffs represented by law firms in jurisdictions with an established history with Maremont. Historically, Maremont has recognized incremental insurance receivables associated with recoveries expected for asbestos-related liabilities as the estimate of asbestos-related liabilities for pending and future claims changes. However, Maremont currently expects to exhaust the limits of its settled insurance coverage prior to the end of the ten-year forecasted liability period. Maremont believes it has additional insurance coverage, however, certain carriers have disputed coverage under policies they issued (see “Recoveries” below). Because no insurance receivable is recognized for these policies in dispute, Maremont recognized a $10 million and $9 million charge in the fourth quarter of fiscal years 2014 and 2013, respectively, associated with its annual valuation of asbestos-related liabilities. | ||||||||||||
Assumptions: The following assumptions were made by Maremont after consultation with Bates White and are included in their study: | ||||||||||||
• | Pending and future claims were estimated for a ten-year period ending in fiscal year 2024; | |||||||||||
• | Maremont believes that the litigation environment could change significantly beyond ten years and that the reliability of estimates of future probable expenditures in connection with asbestos-related personal injury claims will decline for each year further in the future. As a result, estimating a probable liability beyond ten years is difficult and uncertain; | |||||||||||
• | On a per claim basis, defense and processing costs for pending and future claims will be at the level consistent with Maremont’s prior experience; | |||||||||||
• | Potential payments made to claimants from other sources, including other defendants and 524(g) trusts, favorably impact Maremont's estimated liability in the future; and | |||||||||||
• | The ultimate indemnity cost of resolving nonmalignant claims with plaintiffs’ law firms in jurisdictions without an established history with Maremont cannot be reasonably estimated. | |||||||||||
Recoveries: Maremont has insurance that reimburses a substantial portion of the costs incurred defending against asbestos-related claims. The insurance receivable related to asbestos-related liabilities is $49 million and $58 million as of September 30, 2014 and 2013, respectively. The receivable is for coverage provided by one insurance carrier based on a coverage in place agreement. Maremont currently expects to exhaust the remaining limits provided by this coverage sometime in the next ten years. Maremont maintained insurance coverage with other insurance carriers that management believes covers indemnity and defense costs. Maremont has incurred liabilities allocable to these policies, but has not yet billed these insurance carriers, and no receivable has been recorded for these policies. During fiscal year 2013, Maremont reinitiated a lawsuit against these carriers, seeking a declaration of its rights to insurance for asbestos claims and to facilitate an orderly and timely collection of insurance proceeds. The difference between the estimated liability and insurance receivable is primarily related to exhaustion of settled insurance coverage within the forcasted period and proceeds from settled insurance policies. Certain insurance policies have been settled in cash prior to the ultimate settlement of the related asbestos liabilities. Amounts received from insurance settlements generally reduce recorded insurance receivables. | ||||||||||||
The amounts recorded for the asbestos-related reserves and recoveries from insurance companies are based upon assumptions and estimates derived from currently known facts. All such estimates of liabilities and recoveries for asbestos-related claims are subject to considerable uncertainty because such liabilities and recoveries are influenced by variables that are difficult to predict. The future litigation environment for Maremont could change significantly from its past experience, due, for example, to changes in the mix of claims filed against Maremont in terms of plaintiffs’ law firm, jurisdiction and disease; legislative or regulatory developments; Maremont’s approach to defending claims; or payments to plaintiffs from other defendants. Estimated recoveries are influenced by coverage issues among insurers and the continuing solvency of various insurance companies. If the assumptions with respect to the estimation period, the nature of pending and future claims, the cost to resolve claims and the amount of available insurance prove to be incorrect, the actual amount of liability for Maremont’s asbestos-related claims, and the effect on the company, could differ materially from current estimates and, therefore, could have a material impact on the company’s financial condition and results of operations. | ||||||||||||
Rockwell International ("Rockwell") — ArvinMeritor, Inc. (AM), a subsidiary of Meritor, along with many other companies, has also been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos used in certain components of Rockwell products many years ago. Liability for these claims was transferred at the time of the spin-off of the automotive business from Rockwell in 1997. Rockwell had approximately 2,800 and 2,600 pending active asbestos claims in lawsuits that name AM, together with many other companies, as defendants at September 30, 2014 and 2013, respectively. | ||||||||||||
A significant portion of the claims do not identify any of Rockwell’s products or specify which of the claimants, if any, were exposed to asbestos attributable to Rockwell’s products, and past experience has shown that the vast majority of the claimants will likely never identify any of Rockwell’s products. Historically, AM has been dismissed from the vast majority of similar claims filed in the past with no payment to claimants. For those claimants who do show that they worked with Rockwell’s products, management nevertheless believes it has meritorious defenses, in substantial part due to the integrity of the products involved and the lack of any impairing medical condition on the part of many claimants. | ||||||||||||
The Rockwell legacy asbestos-related reserves and corresponding asbestos-related recoveries are summarized as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Pending and future claims | $ | 48 | $ | 39 | ||||||||
Billed but unpaid claims | 2 | 1 | ||||||||||
Asbestos-related liabilities | $ | 50 | $ | 40 | ||||||||
Asbestos-related insurance recoveries | 11 | 13 | ||||||||||
Pending and Future Claims: The company engaged Bates White to assist with determining whether it would be possible to estimate the cost of resolving pending and future Rockwell legacy asbestos-related claims that have been, and could reasonably be expected to be, filed against the company. As of September 30, 2014, Bates White provided a reasonable and probable estimate that consisted of a range of equally likely possibilities of Rockwell’s obligation for asbestos personal injury claims over the next ten years of $48 million to $62 million. After consultation with Bates White, management recognized a liability for pending and future claims over the next ten years of $48 million as of September 30, 2014 compared to $39 million as of September 30, 2013. The ultimate cost of resolving pending and future claims is estimated based on the history of claims and expenses for plaintiffs represented by law firms in jurisdictions with an established history with Rockwell. The increase in the estimated liability is primarily due to higher defense and processing costs, on a per claim basis, compared to the prior year. Rockwell recognized a $10 million charge in the fourth quarter of fiscal year 2014 associated with its annual valuation of asbestos-related liabilities. | ||||||||||||
Assumptions: The following assumptions were made by the company after consultation with Bates White and are included in their study: | ||||||||||||
• | Pending and future claims were estimated for a ten-year period ending in fiscal year 2024; | |||||||||||
• | The company believes that the litigation environment could change significantly beyond ten years and that the reliability of estimates of future probable expenditures in connection with asbestos-related personal injury claims declines for each year further in the future. As a result, estimating a probable liability beyond ten years is difficult and uncertain; | |||||||||||
• | On a per claim basis, defense and processing costs for pending and future claims will be at the level consistent with the company's prior experience; | |||||||||||
• | Potential payments made to claimants from other sources, including other defendants and 524(g) trusts, favorably impact the company's estimated liability in the future; and | |||||||||||
• | The ultimate indemnity cost of resolving nonmalignant claims with plaintiff’s law firms in jurisdictions without an established history with Rockwell cannot be reasonably estimated. | |||||||||||
Recoveries: The insurance receivable related to asbestos-related liabilities is $11 million and $13 million as of September 30, 2014 and 2013, respectively. Included in these amounts are insurance receivables of $8 million and $9 million at September 30, 2014 and 2013, respectively, which are associated with policies in dispute. Rockwell has insurance coverage that management believes covers indemnity and defense costs, over and above self-insurance retentions, for most of these claims. The company has initiated claims against certain of these carriers to enforce the insurance policies, which are in various stages of the litigation process. The company expects to recover some portion of defense and indemnity costs it has incurred to date, over and above self-insured retentions, and some portion of the costs for defending asbestos claims going forward.The amounts recognized for policies in dispute are based on consultation with advisors, status of settlement negotiations with certain insurers and underlying analysis performed by management. The remaining receivable recognized is related to coverage provided by one carrier based on a coverage-in-place insurance. If the assumptions with respect to the estimation period, the nature of pending claims, the cost to resolve claims and the amount of available insurance prove to be incorrect, the actual amount of liability for Rockwell asbestos-related claims, and the effect on the company, could differ materially from current estimates and, therefore, could have a material impact on the company’s financial condition and results of operations. | ||||||||||||
Indemnifications | ||||||||||||
In December 2005, the company guaranteed a third party’s obligation to reimburse another party for payment of health and prescription drug benefits to a group of retired employees. The retirees were former employees of a wholly-owned subsidiary of the company prior to it being acquired by the company. The wholly-owned subsidiary, which was part of the company’s light vehicle aftermarket business, was sold by the company in fiscal year 2006. Prior to May 2009, except as set forth hereinafter, the third party met its obligations to reimburse the other party. In May 2009, the third party filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code requiring the company to recognize its obligations under the guarantee. The company recorded a $28 million liability in fiscal year 2009 for this matter. At September 30, 2014 and September 30, 2013, the remaining estimated liability for this matter was approximately $14 million and $17 million, respectively. | ||||||||||||
The company has provided indemnifications in conjunction with certain transactions, primarily divestitures. These indemnities address a variety of matters, which may include environmental, tax, asbestos and employment-related matters, and the periods of indemnification vary in duration. | ||||||||||||
On January 3, 2011, the company completed the sale of its Body Systems business. The sale agreement contains certain customary representations, warranties and covenants of the seller and the purchaser. The agreement also includes provisions governing post-closing indemnities between the seller and the purchaser for losses arising from specified events. At September 30, 2014 and September 30, 2013 the company has recognized estimates for such indemnities, primarily related to income tax matters, of $2 million and $3 million, respectively. This amount is included in other liabilities in the accompanying condensed consolidated balance sheet. | ||||||||||||
In connection with the sale of its interest in MSSC in October 2009, the company provided certain indemnifications to the buyer for its share of potential obligations related to pension funding shortfall, environmental and other contingencies, and valuation of certain accounts receivable and inventories. The company's estimated exposure under these indemnities at September 30, 2014 and September 30, 2013 is approximately $5 million and $11 million, respectively, and is included in other current liabilities and other liabilities in the condensed consolidated balance sheet. | ||||||||||||
The company is not aware of any other claims or other information that would give rise to material payments under such indemnifications. | ||||||||||||
Other | ||||||||||||
As a result of performing ongoing product conformance testing in the ordinary course of business, the company identified a non-safety related, potential product performance issue arising from a defective supplier component. During fiscal year 2013, the company notified all major customers and initiated a sampling campaign. Management estimated the total costs the company could incur for a full campaign to be in the range of $12 million to $20 million, of which $12 million was recorded as a specific warranty contingency reserve (see Note 13). In the fourth quarter of fiscal 2013, the company received $5 million of non-cash cost recovery from the component supplier. As of September 30, 2014, no field failures were identified during the sampling campaign, and only minor defects were found in a small number of components tested. During the second half of fiscal year 2014, the company worked with customers to determine the appropriate next steps. As a result, in the fourth quarter of fiscal year 2014, the company determined a full campaign to be unnecessary and moved to a fix-as-find approach with an extended warranty. As of September 30, 2014, the estimated cost the company could incur for this non-safety related, potential product performance issue was reduced significantly to $3 million. | ||||||||||||
The company is evaluating certain sale transactions to determine if value-added tax was required to be remitted to certain tax jurisdictions for the tax years 2007 through 2012. The company's estimated reasonably possible exposure for this matter is $6 million to $9 million. At September 30, 2014 and 2013, the company recorded $6 million as its estimate of the probable liability. | ||||||||||||
In the fourth quarter of fiscal year 2013, the company identified additional sales transactions for which value-added tax was required to be remitted. At September 30, 2014 and 2013, the company recorded a $5 million liability primarily associated with tax years 2009 through 2013. | ||||||||||||
In addition, various lawsuits, claims and proceedings, other than those specifically disclosed in the consolidated financial statements, have been or may be instituted or asserted against the company, relating to the conduct of the company’s business, including those pertaining to product liability, warranty or recall claims, intellectual property, safety and health, contract and employment matters. Although the outcome of other litigation cannot be predicted with certainty, and some lawsuits, claims or proceedings may be disposed of unfavorably to the company, management believes the disposition of matters that are pending will not have a material effect on the company’s business, financial condition, results of operations or cash flows. |
BUSINESS_SEGMENT_INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||||
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. On November 12, 2012, the company announced a revised management reporting structure resulting in two business segments. Prior period segment financial information presented has been recast to reflect the revised reporting structure. | ||||||||||||||||
The company has two reportable segments at September 30, 2014, as follows: | ||||||||||||||||
• | The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, primarily for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia-Pacific. This segment also includes the company's aftermarket business in Asia-Pacific and South America; and | |||||||||||||||
• | The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement parts to commercial vehicle and industrial 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 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. Amounts related to prior quarters have been recast to reflect Mascot in discontinued operations (see Note 3). | ||||||||||||||||
Segment information is summarized as follows (in millions): | ||||||||||||||||
Commercial | Aftermarket & | Elims | Total | |||||||||||||
Truck & Industrial | Trailer | |||||||||||||||
Fiscal year 2014 Sales: | ||||||||||||||||
External Sales | $ | 2,876 | $ | 890 | $ | — | $ | 3,766 | ||||||||
Intersegment Sales | 104 | 30 | (134 | ) | — | |||||||||||
Total Sales | $ | 2,980 | $ | 920 | $ | (134 | ) | $ | 3,766 | |||||||
Fiscal year 2013 Sales: | ||||||||||||||||
External Sales | $ | 2,825 | $ | 847 | $ | — | $ | 3,672 | ||||||||
Intersegment Sales | 95 | 24 | (119 | ) | — | |||||||||||
Total Sales | $ | 2,920 | $ | 871 | $ | (119 | ) | $ | 3,672 | |||||||
Fiscal year 2012 Sales: | ||||||||||||||||
External Sales | $ | 3,508 | $ | 876 | $ | — | $ | 4,384 | ||||||||
Intersegment Sales | 105 | 30 | (135 | ) | — | |||||||||||
Total Sales | $ | 3,613 | $ | 906 | $ | (135 | ) | $ | 4,384 | |||||||
Segment EBITDA: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial | $ | 218 | $ | 192 | $ | 270 | ||||||||||
Aftermarket & Trailer | 106 | 87 | 81 | |||||||||||||
Segment EBITDA | 324 | 279 | 351 | |||||||||||||
Unallocated legacy and corporate expense, net (1) | (10 | ) | (15 | ) | (24 | ) | ||||||||||
Interest expense, net | (130 | ) | (126 | ) | (95 | ) | ||||||||||
Provision for income taxes | (31 | ) | (64 | ) | (57 | ) | ||||||||||
Depreciation and amortization | (67 | ) | (67 | ) | (63 | ) | ||||||||||
Loss on sale of receivables | (8 | ) | (6 | ) | (9 | ) | ||||||||||
Restructuring costs | (10 | ) | (23 | ) | (39 | ) | ||||||||||
Antitrust settlement with Eaton, net of tax (2) | 208 | — | — | |||||||||||||
Specific warranty contingency, net of supplier recovery | 8 | (7 | ) | — | ||||||||||||
Pension settlement losses | — | (109 | ) | — | ||||||||||||
Gain on sale of equity investment | — | 125 | — | |||||||||||||
Gain on sale of property | — | — | 16 | |||||||||||||
Noncontrolling interests | (5 | ) | (2 | ) | (11 | ) | ||||||||||
Income (loss) from continuing operations attributable to Meritor, Inc. | $ | 279 | $ | (15 | ) | $ | 69 | |||||||||
-1 | Unallocated legacy and corporate costs, net represents items that are not directly related to the company's business segments. These costs primarily include asbestos-related charges associated with the company's year-end liability remeasurement, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability. In fiscal year 2013, unallocated legacy and corporate costs, net includes approximately $4 million of executive severance related to the company's former Chief Executive Officer. | |||||||||||||||
-2 | Adjustment associated with the company's share of the antitrust settlement with Eaton less legal expenses incurred in fiscal year 2014. | |||||||||||||||
Depreciation and Amortization: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial (1) | $ | 61 | $ | 60 | $ | 58 | ||||||||||
Aftermarket & Trailer (1) | 6 | 7 | 5 | |||||||||||||
Total depreciation and amortization | $ | 67 | $ | 67 | $ | 63 | ||||||||||
Capital Expenditures: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial (1) | $ | 71 | $ | 46 | $ | 79 | ||||||||||
Aftermarket & Trailer (1) | 6 | 8 | 10 | |||||||||||||
Total capital expenditures | $ | 77 | $ | 54 | $ | 89 | ||||||||||
Segment Assets: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial (1) | $ | 1,755 | $ | 1,822 | $ | 1,799 | ||||||||||
Aftermarket & Trailer (1) | 458 | 485 | 470 | |||||||||||||
Total segment assets | 2,213 | 2,307 | 2,269 | |||||||||||||
Corporate(2) | 533 | 568 | ||||||||||||||
Less: Accounts receivable sold under off-balance sheet factoring programs(3) | (244 | ) | (305 | ) | ||||||||||||
Total assets | $ | 2,502 | $ | 2,570 | ||||||||||||
-1 | In fiscal year 2013, the company reorganized its management structure resulting in two reportable segments. Prior period segment financial information presented has been recast to reflect the revised reporting structure. | |||||||||||||||
-2 | Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. | |||||||||||||||
-3 | At September 30, 2014 and September 30, 2013, segment assets include $244 million and $305 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (See Note 6). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances. | |||||||||||||||
Sales by geographic area are based on the location of the selling unit. Information on the company’s geographic areas is summarized as follows (in millions): | ||||||||||||||||
Sales by Geographic Area: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
U.S. | $ | 1,466 | $ | 1,408 | $ | 1,679 | ||||||||||
Canada | 68 | 68 | 72 | |||||||||||||
Mexico | 652 | 615 | 726 | |||||||||||||
Total North America | 2,186 | 2,091 | 2,477 | |||||||||||||
Sweden | 369 | 366 | 403 | |||||||||||||
Italy | 234 | 216 | 189 | |||||||||||||
United Kingdom | 82 | 82 | 84 | |||||||||||||
Other Europe | 111 | 108 | 198 | |||||||||||||
Total Europe | 796 | 772 | 874 | |||||||||||||
Brazil | 408 | 449 | 470 | |||||||||||||
China | 146 | 138 | 255 | |||||||||||||
India | 114 | 114 | 194 | |||||||||||||
Other Asia-Pacific | 116 | 108 | 114 | |||||||||||||
Total sales | $ | 3,766 | $ | 3,672 | $ | 4,384 | ||||||||||
Assets by Geographic Area: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
U.S. | $ | 1,067 | $ | 1,130 | ||||||||||||
Canada | 50 | 81 | ||||||||||||||
Mexico | 251 | 240 | ||||||||||||||
Total North America | 1,368 | 1,451 | ||||||||||||||
Sweden | 104 | 125 | ||||||||||||||
United Kingdom | 216 | 157 | ||||||||||||||
Italy | 81 | 86 | ||||||||||||||
Other Europe | 182 | 192 | ||||||||||||||
Total Europe | 583 | 560 | ||||||||||||||
Brazil | 272 | 297 | ||||||||||||||
China | 154 | 153 | ||||||||||||||
Other Asia-Pacific | 125 | 109 | ||||||||||||||
Total | $ | 2,502 | $ | 2,570 | ||||||||||||
Sales to AB Volvo represented approximately 27 percent, 24 percent and 22 percent of the company’s sales in each of fiscal years 2014, 2013 and 2012, respectively. Sales to Daimler AG represented approximately 18 percent, 15 percent and 15 percent of the company’s sales in fiscal years 2014, 2013 and 2012, respectively. Sales to Navistar International Corporation represented approximately 12 percent of the company’s sales in fiscal year 2014, 10 percent in fiscal year 2013 and 11 percent in fiscal year 2012, respectively. No other customer comprised 10 percent or more of the company’s sales in any of the three fiscal years ended September 30, 2014. |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ' | |||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
The following is a condensed summary of the company’s unaudited quarterly results of continuing operations for fiscal years 2014 and 2013. Amounts related to prior quarters have been recast to reflect Mascot in discontinued operations (see Note 3). Per share amounts are based on the weighted average shares outstanding for that quarter. Earnings per share for the year may not equal the sum of the four fiscal quarters’ earnings per share due to changes in basic and diluted shares outstanding. | ||||||||||||||||||||
2014 Fiscal Quarters (Unaudited) | ||||||||||||||||||||
First | Second | Third | Fourth | 2014 | ||||||||||||||||
(In millions, except share related data) | ||||||||||||||||||||
Sales | $ | 900 | $ | 954 | $ | 979 | $ | 933 | $ | 3,766 | ||||||||||
Cost of sales | (795 | ) | (836 | ) | (855 | ) | (793 | ) | (3,279 | ) | ||||||||||
Gross margin | 105 | 118 | 124 | 140 | 487 | |||||||||||||||
Provision for income taxes | (11 | ) | (8 | ) | (12 | ) | — | (31 | ) | |||||||||||
Net income | 13 | 3 | 234 | 4 | 254 | |||||||||||||||
Net income from continuing operations attributable to Meritor, Inc. | 12 | 1 | 237 | 29 | 279 | |||||||||||||||
Net income attributable to Meritor, Inc. | 11 | 1 | 234 | 3 | 249 | |||||||||||||||
Basic income per share from continuing operations | $ | 0.12 | $ | 0.01 | $ | 2.43 | $ | 0.3 | $ | 2.86 | ||||||||||
Diluted income per share from continuing operations | $ | 0.12 | $ | 0.01 | $ | 2.34 | $ | 0.29 | $ | 2.81 | ||||||||||
The company recognized restructuring costs in its continuing operations during fiscal year 2014 as follows: $1 million in the first quarter, $2 million in the second quarter and $7 million in the fourth quarter (see Note 5). During the fourth quarter of fiscal year 2014, the company reduced retiree medical expense by $15 million, in cost of sales on the consolidated statement of operations, due to a triggered curtailment (see Note 19). Net income in the third quarter of fiscal year 2014 includes after-tax proceeds of $209 million representing our share based on our ownership interest in ZF Meritor including a recovery of current and prior years' attorney expenses paid by Meritor. | ||||||||||||||||||||
2013 Fiscal Quarters (Unaudited) | ||||||||||||||||||||
First | Second | Third | Fourth | 2013 | ||||||||||||||||
(In millions, except share related data) | ||||||||||||||||||||
Sales | $ | 884 | $ | 900 | $ | 986 | $ | 902 | $ | 3,672 | ||||||||||
Cost of sales | (802 | ) | (805 | ) | (877 | ) | (793 | ) | (3,277 | ) | ||||||||||
Gross margin | 82 | 95 | 109 | 109 | 395 | |||||||||||||||
Provision for income taxes | (11 | ) | (7 | ) | (1 | ) | (45 | ) | (64 | ) | ||||||||||
Net income | (20 | ) | (4 | ) | (39 | ) | 43 | (20 | ) | |||||||||||
Net income (loss) from continuing operations attributable to Meritor, Inc. | (15 | ) | (3 | ) | (37 | ) | 40 | (15 | ) | |||||||||||
Net income (loss) attributable to Meritor, Inc. | (21 | ) | (3 | ) | (39 | ) | 41 | (22 | ) | |||||||||||
Basic income (loss) per share from continuing operations | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.38 | ) | $ | 0.41 | $ | (0.15 | ) | ||||||
Diluted income (loss) per share from continuing operations | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.38 | ) | $ | 0.41 | $ | (0.15 | ) | ||||||
The company recognized restructuring costs in its continuing operations during fiscal year 2013 as follows: $3 million in the first quarter, $11 million in the second quarter, $12 million in the third quarter and a reversal of $3 million in the fourth quarter (see Note 5). Net loss in the third quarter of fiscal year 2013 includes an after-tax settlement loss of approximately $27 million associated with the company settling five of its Canadian pension plans via lump-sum payments out of plan assets to participants and annuity contract purchases with an insurance company. During the fourth quarter of fiscal year 2013, the company recognized a $73 million non-cash settlement loss associated with lump-sum settlements to participants of its U.S. Retirement Plan. Also, the fourth quarter includes a $92 million gain (net of tax) associated with the sale of the company's 50-percent ownership interest in the Suspensys joint venture. |
OPERATING_CASH_FLOWS_AND_OTHER
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Operating Cash Flow Disclosure [Abstract] | ' | |||||||||||
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION | ' | |||||||||||
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $ | 254 | $ | (20 | ) | $ | 63 | |||||
Less: Loss from discontinued operations, net of tax | (30 | ) | (7 | ) | (17 | ) | ||||||
Income (loss) from continuing operations | 284 | (13 | ) | 80 | ||||||||
Adjustments to income (loss) from continuing operations to arrive at cash provided by (used for) operating activities: | ||||||||||||
Depreciation and amortization | 67 | 67 | 63 | |||||||||
Deferred income tax expense (benefit) | (2 | ) | (4 | ) | 13 | |||||||
Restructuring costs | 10 | 23 | 39 | |||||||||
Loss on debt extinguishment | 31 | 24 | — | |||||||||
Equity in earnings of ZF Meritor | (190 | ) | — | — | ||||||||
Equity in earnings of other affiliates | (38 | ) | (42 | ) | (52 | ) | ||||||
Stock compensation expense | 8 | 5 | 6 | |||||||||
Provision for doubtful accounts | — | 3 | 2 | |||||||||
Pension and retiree medical expense | 25 | 151 | 53 | |||||||||
Gain on sale of equity investment | — | (125 | ) | — | ||||||||
Gain on sale of property | — | — | (16 | ) | ||||||||
Dividends received from ZF Meritor | 190 | — | — | |||||||||
Dividends received from other equity method investments | 36 | 30 | 47 | |||||||||
Pension and retiree medical contributions | (177 | ) | (153 | ) | (140 | ) | ||||||
Restructuring payments | (10 | ) | (23 | ) | (22 | ) | ||||||
Changes in off-balance sheet receivable securitization and factoring programs | (46 | ) | 43 | (24 | ) | |||||||
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations: | ||||||||||||
Receivables | 34 | (87 | ) | 150 | ||||||||
Inventories | (9 | ) | 18 | 11 | ||||||||
Accounts payable | (5 | ) | (31 | ) | (118 | ) | ||||||
Other current assets and liabilities | 19 | 37 | (20 | ) | ||||||||
Other assets and liabilities | — | (1 | ) | 24 | ||||||||
Operating cash flows provided by (used by) continuing operations | 227 | (78 | ) | 96 | ||||||||
Operating cash flows used for discontinued operations | (12 | ) | (18 | ) | (19 | ) | ||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 215 | $ | (96 | ) | $ | 77 | |||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance sheet data: | ||||||||||||
Allowance for doubtful accounts | $ | 6 | $ | 9 | $ | 7 | ||||||
Statement of operations data: | ||||||||||||
Maintenance and repairs expense | 59 | 61 | 44 | |||||||||
Research, development and engineering expense | 71 | 71 | 73 | |||||||||
Depreciation expense | 62 | 61 | 59 | |||||||||
Rental expense | 16 | 25 | 20 | |||||||||
Interest income | 2 | 2 | 2 | |||||||||
Interest expense | (132 | ) | (128 | ) | (97 | ) | ||||||
Statement of cash flows data: | ||||||||||||
Interest payments | 84 | 77 | 83 | |||||||||
Income tax payments, net of refunds | 26 | 63 | 51 | |||||||||
Non-cash investing activities - capital asset additions from capital leases | 5 | 22 | 19 | |||||||||
SUPPLEMENTAL_PARENT_AND_GUARAN
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract] | ' | |||||||||||||||||||
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ' | |||||||||||||||||||
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||
Article 3-10 of Regulation S-X (S-X Rule 3-10) requires that separate financial information for issuers and guarantors of registered securities be filed in certain circumstances. Certain of the company's 100% owned subsidiaries, as defined in the credit agreement (the Guarantors) irrevocably and unconditionally guarantee amounts outstanding under the senior secured revolving credit facility. Similar subsidiary guarantees were provided for the benefit of the holders of the publicly-held notes outstanding under the company's indentures (see Note 15). | ||||||||||||||||||||
Schedule I of Article 5-04 of Regulation S-X (S-X Rule 5-04) requires that condensed financial information of the registrant (Parent) be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. As of September 30, 2014, net assets that exceed 25 percent of the consolidated net assets of Meritor, Inc. of certain subsidiaries in China and India and certain unconsolidated subsidiaries are restricted by law from transfer by cash dividends, loans or advances to Meritor, Inc. As of September 30, 2014 the amount of the net assets restricted from transfer by law was $57 million. | ||||||||||||||||||||
In lieu of providing separate audited financial statements for the Parent and Guarantors, the company has included the accompanying condensed consolidating financial statements as permitted by S-X Rules 3-10 and 5-04. These condensed consolidating financial statements are presented on the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the parent's share of the subsidiary's cumulative results of operations, capital contributions and distribution and other equity changes. The Guarantor subsidiaries are combined in the condensed consolidated financial statements. | ||||||||||||||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Sales | ||||||||||||||||||||
External | $ | — | $ | 1,467 | $ | 2,299 | $ | — | $ | 3,766 | ||||||||||
Subsidiaries | — | 142 | 62 | (204 | ) | — | ||||||||||||||
Total sales | — | 1,609 | 2,361 | (204 | ) | 3,766 | ||||||||||||||
Cost of sales | (56 | ) | (1,343 | ) | (2,084 | ) | 204 | (3,279 | ) | |||||||||||
GROSS MARGIN | (56 | ) | 266 | 277 | — | 487 | ||||||||||||||
Selling, general and administrative | (65 | ) | (102 | ) | (91 | ) | — | (258 | ) | |||||||||||
Restructuring costs | — | (1 | ) | (9 | ) | — | (10 | ) | ||||||||||||
Other operating expense, net | (1 | ) | (1 | ) | — | — | (2 | ) | ||||||||||||
OPERATING INCOME (LOSS) | (122 | ) | 162 | 177 | — | 217 | ||||||||||||||
Other income (expense), net | 35 | 23 | (58 | ) | — | — | ||||||||||||||
Equity in earnings of ZF Meritor | — | 190 | — | — | 190 | |||||||||||||||
Equity in earnings of affiliates | — | 30 | 8 | — | 38 | |||||||||||||||
Interest income (expense), net | (159 | ) | 35 | (6 | ) | — | (130 | ) | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (246 | ) | 440 | 121 | — | 315 | ||||||||||||||
Provision for income taxes | — | (1 | ) | (30 | ) | — | (31 | ) | ||||||||||||
Equity income from continuing operations of subsidiaries | 525 | 71 | — | (596 | ) | — | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 279 | 510 | 91 | (596 | ) | 284 | ||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (30 | ) | $ | (31 | ) | $ | (12 | ) | $ | 43 | $ | (30 | ) | |||||||
NET INCOME | 249 | 479 | 79 | (553 | ) | 254 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (5 | ) | — | (5 | ) | |||||||||||||
NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 249 | $ | 479 | $ | 74 | $ | (553 | ) | $ | 249 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Net income | $ | 249 | $ | 479 | $ | 79 | $ | (553 | ) | $ | 254 | |||||||||
Other comprehensive income (loss) | (15 | ) | (54 | ) | 25 | 29 | (15 | ) | ||||||||||||
Total comprehensive income | 234 | 425 | 104 | (524 | ) | 239 | ||||||||||||||
Less: Comprehensive income attributable to | — | — | (5 | ) | — | (5 | ) | |||||||||||||
noncontrolling interests | ||||||||||||||||||||
Comprehensive income attributable to Meritor, Inc. | $ | 234 | $ | 425 | $ | 99 | $ | (524 | ) | $ | 234 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Elims | Consolidated | ||||||||||||||||
Sales | ||||||||||||||||||||
External | $ | — | $ | 1,409 | $ | 2,263 | $ | — | $ | 3,672 | ||||||||||
Subsidiaries | — | 136 | 56 | (192 | ) | — | ||||||||||||||
Total sales | — | 1,545 | 2,319 | (192 | ) | 3,672 | ||||||||||||||
Cost of sales | (54 | ) | (1,339 | ) | (2,076 | ) | 192 | (3,277 | ) | |||||||||||
GROSS MARGIN | (54 | ) | 206 | 243 | — | 395 | ||||||||||||||
Selling, general and administrative | (72 | ) | (87 | ) | (94 | ) | — | (253 | ) | |||||||||||
Pension Settlement losses | (73 | ) | — | (36 | ) | — | (109 | ) | ||||||||||||
Restructuring | (3 | ) | (8 | ) | (12 | ) | — | (23 | ) | |||||||||||
Other operating expense, net | (2 | ) | (1 | ) | — | — | (3 | ) | ||||||||||||
OPERATING INCOME (LOSS) | (204 | ) | 110 | 101 | — | 7 | ||||||||||||||
Other income (loss), net | 39 | 21 | (57 | ) | — | 3 | ||||||||||||||
Gain on sale of equity investment | — | 60 | 65 | — | 125 | |||||||||||||||
Equity in earnings of affiliates | — | 24 | 18 | — | 42 | |||||||||||||||
Interest income (expense), net | (154 | ) | 34 | (6 | ) | — | (126 | ) | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (319 | ) | 249 | 121 | — | 51 | ||||||||||||||
Provision for income taxes | (1 | ) | (17 | ) | (46 | ) | — | (64 | ) | |||||||||||
Equity income from continuing operations of subsidiaries | 305 | 57 | — | (362 | ) | — | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | (15 | ) | 289 | 75 | (362 | ) | (13 | ) | ||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (7 | ) | $ | (8 | ) | $ | (237 | ) | $ | 245 | $ | (7 | ) | |||||||
NET INCOME (LOSS) | (22 | ) | 281 | (162 | ) | (117 | ) | (20 | ) | |||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | |||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. | $ | (22 | ) | $ | 281 | $ | (164 | ) | $ | (117 | ) | $ | (22 | ) | ||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Net income (loss) | $ | (22 | ) | $ | 281 | $ | (162 | ) | $ | (117 | ) | $ | (20 | ) | ||||||
Other comprehensive income (loss) | 181 | 13 | (12 | ) | (1 | ) | 181 | |||||||||||||
Total comprehensive income (loss) | 159 | 294 | (174 | ) | (118 | ) | 161 | |||||||||||||
Less: Comprehensive income attributable to | — | — | (2 | ) | — | (2 | ) | |||||||||||||
noncontrolling interests | ||||||||||||||||||||
Comprehensive income (loss) attributable to Meritor, Inc. | $ | 159 | $ | 294 | $ | (176 | ) | $ | (118 | ) | $ | 159 | ||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Sales | ||||||||||||||||||||
External | $ | — | $ | 1,679 | $ | 2,705 | $ | — | $ | 4,384 | ||||||||||
Subsidiaries | — | 149 | 71 | (220 | ) | — | ||||||||||||||
Total sales | — | 1,828 | 2,776 | (220 | ) | 4,384 | ||||||||||||||
Cost of sales | (50 | ) | (1,579 | ) | (2,493 | ) | 220 | (3,902 | ) | |||||||||||
GROSS MARGIN | (50 | ) | 249 | 283 | — | 482 | ||||||||||||||
Selling, general and administrative | (75 | ) | (102 | ) | (105 | ) | — | (282 | ) | |||||||||||
Restructuring costs | — | — | (39 | ) | — | (39 | ) | |||||||||||||
Gain on sale of property | — | — | 16 | — | 16 | |||||||||||||||
Other operating income (expense), net | (2 | ) | — | (2 | ) | — | (4 | ) | ||||||||||||
OPERATING INCOME (LOSS) | (127 | ) | 147 | 153 | — | 173 | ||||||||||||||
Other income (expense), net | 42 | 27 | (62 | ) | — | 7 | ||||||||||||||
Equity in earnings of affiliates | — | 34 | 18 | — | 52 | |||||||||||||||
Interest income (expense), net | (121 | ) | 22 | 4 | — | (95 | ) | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (206 | ) | 230 | 113 | — | 137 | ||||||||||||||
Provision for income taxes | — | (5 | ) | (52 | ) | — | (57 | ) | ||||||||||||
Equity income from continuing operations of subsidiaries | 275 | 35 | — | (310 | ) | — | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 69 | 260 | 61 | (310 | ) | 80 | ||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (17 | ) | (5 | ) | (1 | ) | 6 | (17 | ) | |||||||||||
NET INCOME | 52 | 255 | 60 | (304 | ) | 63 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (11 | ) | — | (11 | ) | |||||||||||||
NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 52 | $ | 255 | $ | 49 | $ | (304 | ) | $ | 52 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Net income | $ | 52 | $ | 255 | $ | 60 | $ | (304 | ) | $ | 63 | |||||||||
Other comprehensive loss | (86 | ) | (41 | ) | (1 | ) | 41 | (87 | ) | |||||||||||
Total comprehensive income (loss) | (34 | ) | 214 | 59 | (263 | ) | (24 | ) | ||||||||||||
Less: Comprehensive income attributable to | — | — | (10 | ) | — | (10 | ) | |||||||||||||
noncontrolling interests | ||||||||||||||||||||
Comprehensive income (loss) attributable to Meritor, Inc. | $ | (34 | ) | $ | 214 | $ | 49 | $ | (263 | ) | $ | (34 | ) | |||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 71 | $ | 5 | $ | 171 | $ | — | $ | 247 | ||||||||||
Receivables, trade and other, net | 1 | 45 | 564 | — | 610 | |||||||||||||||
Inventories | — | 151 | 228 | — | 379 | |||||||||||||||
Other current assets | 9 | 18 | 29 | — | 56 | |||||||||||||||
TOTAL CURRENT ASSETS | 81 | 219 | 992 | — | 1,292 | |||||||||||||||
NET PROPERTY | 13 | 158 | 253 | — | 424 | |||||||||||||||
GOODWILL | — | 277 | 154 | — | 431 | |||||||||||||||
OTHER ASSETS | 75 | 128 | 152 | — | 355 | |||||||||||||||
INVESTMENTS IN SUBSIDIARIES | 2,185 | 267 | — | (2,452 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 2,354 | $ | 1,049 | $ | 1,551 | $ | (2,452 | ) | $ | 2,502 | |||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Short-term debt | $ | 1 | $ | 3 | $ | 3 | $ | — | $ | 7 | ||||||||||
Accounts and notes payable | 46 | 230 | 404 | — | 680 | |||||||||||||||
Other current liabilities | 97 | 87 | 167 | — | 351 | |||||||||||||||
TOTAL CURRENT LIABILITIES | 144 | 320 | 574 | — | 1,038 | |||||||||||||||
LONG-TERM DEBT | 916 | 10 | 39 | — | 965 | |||||||||||||||
RETIREMENT BENEFITS | 656 | — | 119 | — | 775 | |||||||||||||||
INTERCOMPANY PAYABLE (RECEIVABLE) | 1,198 | (1,736 | ) | 538 | — | — | ||||||||||||||
OTHER LIABILITIES | 52 | 208 | 49 | — | 309 | |||||||||||||||
EQUITY (DEFICIT) ATTRIBUTABLE TO | (612 | ) | 2,247 | 205 | (2,452 | ) | (612 | ) | ||||||||||||
MERITOR, INC. | ||||||||||||||||||||
NONCONTROLLING INTERESTS | — | — | 27 | — | 27 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | 2,354 | $ | 1,049 | $ | 1,551 | $ | (2,452 | ) | $ | 2,502 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 144 | $ | 6 | $ | 168 | $ | — | $ | 318 | ||||||||||
Receivables, trade and other, net | 1 | 24 | 571 | — | 596 | |||||||||||||||
Inventories | 164 | 250 | — | 414 | ||||||||||||||||
Other current assets | 4 | 17 | 35 | — | 56 | |||||||||||||||
TOTAL CURRENT ASSETS | 149 | 211 | 1,024 | — | 1,384 | |||||||||||||||
NET PROPERTY | 10 | 145 | 262 | — | 417 | |||||||||||||||
GOODWILL | — | 277 | 157 | — | 434 | |||||||||||||||
OTHER ASSETS | 77 | 134 | 124 | — | 335 | |||||||||||||||
INVESTMENTS IN SUBSIDIARIES | 1,718 | 109 | — | (1,827 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 1,954 | $ | 876 | $ | 1,567 | $ | (1,827 | ) | $ | 2,570 | |||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Short-term debt | $ | 5 | $ | 7 | $ | 1 | $ | — | $ | 13 | ||||||||||
Accounts and notes payable | 51 | 199 | 444 | — | 694 | |||||||||||||||
Other current liabilities | 95 | 76 | 168 | — | 339 | |||||||||||||||
TOTAL CURRENT LIABILITIES | 151 | 282 | 613 | — | 1,046 | |||||||||||||||
LONG-TERM DEBT | 1,088 | 8 | 29 | — | 1,125 | |||||||||||||||
RETIREMENT BENEFITS | 775 | — | 111 | — | 886 | |||||||||||||||
INTERCOMPANY PAYABLE (RECEIVABLE) | 723 | (1,412 | ) | 689 | — | — | ||||||||||||||
OTHER LIABILITIES | 67 | 204 | 64 | — | 335 | |||||||||||||||
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | (850 | ) | 1,794 | 33 | (1,827 | ) | (850 | ) | ||||||||||||
NONCONTROLLING INTERESTS | — | — | 28 | — | 28 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY(DEFICIT) | $ | 1,954 | $ | 876 | $ | 1,567 | $ | (1,827 | ) | $ | 2,570 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 245 | 34 | (64 | ) | $ | — | $ | 215 | |||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | (4 | ) | (37 | ) | (36 | ) | — | (77 | ) | |||||||||||
Net investing cash flows provided by discontinued operations | — | 4 | 3 | — | 7 | |||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | (4 | ) | (33 | ) | (33 | ) | — | (70 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from debt issuances | 225 | — | — | — | 225 | |||||||||||||||
Repayment of notes and term loan | (439 | ) | — | — | — | (439 | ) | |||||||||||||
Other financing cash flows | — | (2 | ) | 14 | — | 12 | ||||||||||||||
Debt issuance costs | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Intercompany advances | (90 | ) | — | 90 | — | — | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (314 | ) | (2 | ) | 104 | — | (212 | ) | ||||||||||||
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — | — | (4 | ) | — | (4 | ) | |||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (73 | ) | (1 | ) | 3 | — | (71 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 144 | 6 | 168 | — | 318 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 71 | $ | 5 | $ | 171 | $ | — | $ | 247 | ||||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 34 | $ | (63 | ) | $ | (67 | ) | $ | — | $ | (96 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | (3 | ) | (26 | ) | (25 | ) | — | (54 | ) | |||||||||||
Proceeds from sale of equity investment | — | 87 | 95 | — | 182 | |||||||||||||||
Other investing activities | 2 | 1 | — | — | 3 | |||||||||||||||
Net investing cash flows provided by discontinued operations | — | 3 | 3 | — | 6 | |||||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | (1 | ) | 65 | 73 | — | 137 | ||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from debt issuance | 500 | — | — | — | 500 | |||||||||||||||
Repayment of notes and term loan | (475 | ) | — | — | — | (475 | ) | |||||||||||||
Debt issuance costs | (12 | ) | — | — | — | (12 | ) | |||||||||||||
Other financing cash flows | — | 1 | 10 | — | 11 | |||||||||||||||
Intercompany advances | 7 | — | (7 | ) | — | — | ||||||||||||||
CASH PROVIDED BY FINANCING ACTIVITIES | 20 | 1 | 3 | — | 24 | |||||||||||||||
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — | — | (4 | ) | — | (4 | ) | |||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 53 | 3 | 5 | — | 61 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 91 | 3 | 163 | — | 257 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 144 | $ | 6 | $ | 168 | $ | — | $ | 318 | ||||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | (13 | ) | $ | 31 | $ | 59 | $ | — | $ | 77 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | (3 | ) | (33 | ) | (53 | ) | — | (89 | ) | |||||||||||
Proceeds from sale of property | — | — | 18 | — | 18 | |||||||||||||||
Other investing activities | — | 1 | 2 | — | 3 | |||||||||||||||
Net investing cash flows provided by discontinued operations | — | — | 28 | — | 28 | |||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | (3 | ) | (32 | ) | (5 | ) | — | (40 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from debt issuance | 100 | — | — | — | 100 | |||||||||||||||
Repayment of notes and term loan | (86 | ) | — | — | — | (86 | ) | |||||||||||||
Debt issuance costs | (12 | ) | — | — | — | (12 | ) | |||||||||||||
Intercompany advances | 13 | — | (13 | ) | — | — | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 15 | — | (13 | ) | — | 2 | ||||||||||||||
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — | — | 1 | — | 1 | |||||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (1 | ) | (1 | ) | 42 | — | 40 | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 92 | 4 | 121 | — | 217 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 91 | $ | 3 | $ | 163 | $ | — | $ | 257 | ||||||||||
Basis of Presentation | ||||||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the SEC. As of September 30, 2014 and 2013, parent company only obligations included $684 million and $805 million, respectively, of pension and retiree medical benefits (see Notes 19 and 20). All debt is debt of the parent company other than $55 million and $45 million at September 30, 2014, and 2013 respectively (see Note 15) and is primarily related to capital lease obligations and lines of credit. Cash dividends paid to the parent by subsidiaries and investments accounted for by the equity method were $5 million, $54 million, $19 million for 2014, 2013, and 2012, respectively. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
MERITOR, INC. | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
For the Year Ended September 30, 2014, 2013, 2012 | |||||||||||||||||
Description (In millions) | Balance at | Charged to | Other Deductions | Balance at End of year | |||||||||||||
Beginning of Year | costs and expenses | ||||||||||||||||
Year ended September 30, 2014: | |||||||||||||||||
Allowance for doubtful accounts | $ | 9 | $ | (2 | ) | $ | (1 | ) | (a) | $ | 6 | ||||||
Deferred tax asset valuation allowance | 1,166 | (89 | ) | (47 | ) | (b) | 1,030 | ||||||||||
Year ended September 30, 2013: | |||||||||||||||||
Allowance for doubtful accounts | $ | 7 | $ | 3 | $ | (1 | ) | (a) | $ | 9 | |||||||
Deferred tax asset valuation allowance | 1,204 | 44 | (82 | ) | (b) | 1,166 | |||||||||||
Year ended September 30, 2012: | |||||||||||||||||
Allowance for doubtful accounts | $ | 5 | $ | 2 | $ | — | (a) | $ | 7 | ||||||||
Deferred tax asset valuation allowance | 1,255 | (68 | ) | 17 | (b) | 1,204 | |||||||||||
____________________ | |||||||||||||||||
(a) | Uncollectible accounts written off. | ||||||||||||||||
(b) | Primarily relates to revaluation of defined pension and retiree medical obligations. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Use of Estimates | ' | ||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (U.S.) (GAAP) requires the use of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and related disclosures. Actual results could differ from these estimates. Significant estimates and assumptions were used to review goodwill and other long-lived assets, for impairment (see Notes 4 and 10), costs associated with the company’s restructuring actions (see Note 5), product warranty liabilities (see Note 13), long-term incentive compensation plan obligations (see Note 18), retiree medical and pension obligations (see Notes 19 and 20), income taxes (see Note 21), and contingencies including asbestos and environmental matters (see Note 22). | |||||||||
Concentration of Credit Risk | ' | ||||||||
In the normal course of business, the company provides credit to customers. The company limits its credit risk by performing ongoing credit evaluations of its customers and maintaining reserves for potential credit losses and through accounts receivable factoring programs. The company’s accounts receivable is due from medium- and heavy-duty truck OEMs, specialty vehicle manufacturers, aftermarket customers, and trailer producers. The company’s ten largest customers accounted for 76 percent and 71 percent of sales in fiscal year 2014 and 2013, respectively. Sales to the company's top three customers were 57 percent and 49 percent of total sales in fiscal 2014 and 2013, respectively. At September 30, 2014 and 2013, 21 percent of the company's trade accounts receivable were from the company's three largest customers. | |||||||||
Consolidation and Joint Ventures | ' | ||||||||
The consolidated financial statements include the accounts of the company and those subsidiaries in which the company has control. All intercompany balances and transactions are eliminated in consolidation. The results of operations of controlled subsidiaries are included in the consolidated financial statements and are offset by a related noncontrolling interest recorded for the noncontrolling partners’ ownership. Investments in affiliates that are not controlled or majority-owned are reported using the equity method of accounting (see Note 12). | |||||||||
Foreign Currency | ' | ||||||||
Local currencies are generally considered the functional currencies for operations outside the U.S. For operations reporting in local currencies, assets and liabilities are translated at year-end exchange rates with cumulative currency translation adjustments included as a component of Accumulated Other Comprehensive Loss in the consolidated balance sheet. Income and expense items are translated at average rates of exchange during the year. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
Long-lived assets, excluding goodwill, to be held and used are reviewed for impairment whenever adverse events or changes in circumstances indicate a possible impairment. An impairment loss is recognized when a long-lived asset’s carrying value exceeds the fair value. | |||||||||
Long-lived assets held for sale are recorded at the lower of their carrying amount or estimated fair value less cost to sell. | |||||||||
Discontinued Operations | ' | ||||||||
A business component that either has been disposed of or is classified as held for sale is reported as discontinued operations if the cash flows of the component have been or will be eliminated from the ongoing operations of the company, and the company will no longer have any significant continuing involvement in the business component. The results of discontinued operations are aggregated and presented separately in the consolidated statement of operations and consolidated statement of cash flows (see Note 3). | |||||||||
Revenue Recognition | ' | ||||||||
Revenues are recognized upon shipment of product and transfer of ownership to the customer. Provisions for customer sales allowances and incentives are recorded as a reduction of sales at the time of product shipment. | |||||||||
Allowance for Doubtful Accounts | ' | ||||||||
An allowance for uncollectible trade receivables is recorded when accounts are deemed uncollectible based on consideration of write-off history, aging analysis, and any specific, known troubled accounts. | |||||||||
Earnings per Share | ' | ||||||||
Basic earnings (loss) per share is calculated using the weighted average number of shares outstanding during each period. The diluted earnings (loss) per share calculation includes the impact of dilutive common stock options, restricted shares, performance share awards, and convertible securities, if applicable. | |||||||||
A reconciliation of basic average common shares outstanding to diluted average common shares outstanding is as follows (in millions): | |||||||||
Year Ended September 30, | |||||||||
2014 | 2013 | 2012 | |||||||
Basic average common shares outstanding | 97.5 | 97.1 | 95.9 | ||||||
Impact of stock options | 0.1 | — | — | ||||||
Impact of restricted shares, performance shares and share units | 1.6 | — | 1.3 | ||||||
Diluted average common shares outstanding | 99.2 | 97.1 | 97.2 | ||||||
On November 7, 2013, the Board of Directors approved a grant of performance restricted share units to all executives eligible to participate in the long-term incentive plan. Each performance share unit represents the right to receive one share of common stock upon achievement of certain performance and time vesting criteria. The fair value of each share unit is $7.97, the company’s share price on the grant date of December 1, 2013. | |||||||||
The actual number of performance units that will vest will depend upon the company’s performance relative to the established M2016 goals for the three-year performance period of October 1, 2013 to September 30, 2016, measured at the end of the performance period. The number of potential performance units will depend on meeting the established M2016 goals at the following weights: 50% associated with achieving Adjusted EBITDA margin targets, 25% associated with reducing net debt, including retirement benefit liabilities targets, and 25% associated with generating incremental booked revenue targets. The number of shares that vest will be between 0% and 200% of the estimated grant date amount of 1.8 million shares including incremental shares that were issued subsequent to the December 1, 2013 grant date. For the year ended September 30, 2014, compensation cost recognized related to the performance shares was $4 million. There were 0.1 million of performance shares included in diluted earnings per share calculation for the year ended September 30, 2014 as the M2016 net debt target was reached in the fourth quarter of fiscal year 2014. | |||||||||
At September 30, 2014, 2013, and 2012 options to purchase 0.3 million, 0.9 million, and 0.7 million shares of common stock, respectively, were excluded in the computation of diluted earnings per share because their exercise price exceeded the average market price for the twelve-month period and thus their inclusion would be anti-dilutive. | |||||||||
The potential effects of restricted shares and share units were excluded from the diluted earnings per share calculation for the fiscal year ended September 30, 2013 because their inclusion in a loss from continuing operations period would reduce the loss per share from continuing operations attributable to common shareholders. Therefore, 0.8 million shares of restricted stock were excluded from the computation of diluted earnings per share for the fiscal year ended September 30, 2013. The company’s convertible senior unsecured notes are excluded from the computation of diluted earnings per share for each period presented, as the company’s average stock price during each period is less than the conversion price. | |||||||||
Other | ' | ||||||||
Other significant accounting policies are included in the related notes, specifically, goodwill (Note 4), inventories (Note 8), property and depreciation (Note 10), capitalized software (Note 11), product warranties (Note 13), financial instruments (Note 16), equity based compensation (Note 18), retirement medical plans (Note 19), retirement pension plans (Note 20), income taxes (Note 21) and environmental and asbestos-related liabilities (Note 22). | |||||||||
Accounting Standards to be Implemented and Implemented in Fiscal Year 2014 | ' | ||||||||
Accounting standards to be implemented | |||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. A strategic shift could include a disposal of: (1) a major geographical area of operations; (2) a major line of business; and (3) a major equity method investment. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2015. The potential impact of this new guidance on its consolidated financial statements is dependent upon future business divestitures. Previous divestitures and amounts currently in discontinued operations will not be impacted. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 merges revenue recognition standards of the FASB and International Accounting Standards Board (IASB). The FASB and IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS) that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2016, and interim periods within those annual periods. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2017 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. | |||||||||
In June 2014, the FASB issued ASU 2014- 12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2015 and interim periods within those annual periods. The company plans to implement this standard in the first quarter of fiscal year 2017 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements— Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The standard is required to be adopted by public business entities in annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The company plans to implement this standard in the fiscal year beginning October 1, 2016 and currently expects this new guidance to have no impact on the company's consolidated financial statements. | |||||||||
Accounting standards implemented during fiscal year 2014 | |||||||||
In January 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The company adopted this guidance at the beginning of the first quarter of fiscal year 2014 within Note 16. | |||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires that reclassification adjustments for items that are reclassified from accumulated other comprehensive income to net income be presented on the financial statements or in a note to the financial statements. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The company adopted this guidance at the beginning of the first quarter of fiscal year 2014 within Note 17. | |||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 eliminates the option of presenting unrecognized tax benefits as a liability or as a reduction of a deferred tax asset for a net operating loss or tax credit carryforward. An unrecognized tax benefit, or portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The new disclosure requirements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 with early adoption permitted. The company adopted this guidance at the beginning of the first quarter of fiscal year 2014. The adoption of ASU 2013-11 did not have a material effect on the company's consolidated statement of financial position, results of operations, or cash flows. | |||||||||
Inventory | ' | ||||||||
Inventories are stated at the lower of cost (using FIFO or average methods) or market (determined on the basis of estimated realizable values) | |||||||||
Property, Plant and Equipment | ' | ||||||||
Property is stated at cost. Depreciation of property is based on estimated useful lives, generally using the straight-line method. Estimated useful lives for buildings and improvements range from 10 to 50 years and estimated useful lives for machinery and equipment range from 3 to 20 years. Significant improvements are capitalized, and disposed or replaced property is written off. Maintenance and repairs are charged to expense in the period they are incurred. Company-owned tooling is classified as property and depreciated over the shorter of its expected life or the life of the related vehicle platform, generally not to exceed three years. | |||||||||
In accordance with the FASB guidance on property, plant and equipment, the company reviews the carrying value of long-lived assets, excluding goodwill, to be held and used, for impairment whenever events or changes in circumstances indicate a possible impairment. An impairment loss is recognized when a long-lived asset’s carrying value is not recoverable and exceeds estimated fair value. | |||||||||
Internal Use Software | ' | ||||||||
In accordance with FASB ASC Topic 350-40, costs relating to internally developed or purchased software in the preliminary project stage and the post-implementation stage are expensed as incurred. Costs in the application development stage that meet the criteria for capitalization are capitalized and amortized using the straight-line basis over the estimated economic useful life of the software. | |||||||||
Standard Product Warranty | ' | ||||||||
The company records estimated product warranty costs at the time of shipment of products to customers. Warranty reserves are primarily based on factors that include past claims experience, sales history, product manufacturing and engineering changes and industry developments. Liabilities for product recall campaigns are recorded at the time the company’s obligation is probable and can be reasonably estimated. Policy repair actions to maintain customer relationship are recorded as other liabilities at the time an obligation is probable and can be reasonably estimated. Product warranties, including recall campaigns, not expected to be paid within one year are recorded as a non-current liability. | |||||||||
Environmental Costs | ' | ||||||||
Federal, state and local requirements relating to the discharge of substances into the environment, the disposal of hazardous wastes and other activities affecting the environment have, and will continue to have, an impact on the operations of the company. The process of estimating environmental liabilities is complex and dependent upon evolving physical and scientific data at the sites, uncertainties as to remedies and technologies to be used and the outcome of discussions with regulatory agencies. The company records liabilities for environmental issues in the accounting period in which they are considered to be probable and the cost can be reasonably estimated. At environmental sites in which more than one potentially responsible party has been identified, the company records a liability for its allocable share of costs related to its involvement with the site, as well as an allocable share of costs related to insolvent parties or unidentified shares. At environmental sites in which Meritor is the only potentially responsible party, the company records a liability for the total probable and estimable costs of remediation before consideration of recovery from insurers or other third parties. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Reconciliation of Basic Average Common Shares Outstanding to Diluted Average Common Shares Outstanding | ' | ||||||||
A reconciliation of basic average common shares outstanding to diluted average common shares outstanding is as follows (in millions): | |||||||||
Year Ended September 30, | |||||||||
2014 | 2013 | 2012 | |||||||
Basic average common shares outstanding | 97.5 | 97.1 | 95.9 | ||||||
Impact of stock options | 0.1 | — | — | ||||||
Impact of restricted shares, performance shares and share units | 1.6 | — | 1.3 | ||||||
Diluted average common shares outstanding | 99.2 | 97.1 | 97.2 | ||||||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Summary of discontinued operations | ' | |||||||||||
Results of the discontinued operations are summarized as follows (in millions): | ||||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales | $ | 29 | $ | 29 | $ | 36 | ||||||
Operating losses, net (primarily Mascot) | $ | (8 | ) | $ | (3 | ) | $ | — | ||||
Net loss on sales of businesses | (23 | ) | — | (1 | ) | |||||||
Charge for contingency and indemnity obligation (see Note 22) | — | — | (10 | ) | ||||||||
Restructuring costs | — | (3 | ) | (1 | ) | |||||||
Environmental remediation charges (see Note 22) | (4 | ) | (5 | ) | (3 | ) | ||||||
Other, net | (2 | ) | (1 | ) | (5 | ) | ||||||
Income (loss) before income taxes | (37 | ) | (12 | ) | (20 | ) | ||||||
Benefit for income taxes | 7 | 5 | 3 | |||||||||
Loss from discontinued operations attributable to Meritor, Inc. | $ | (30 | ) | $ | (7 | ) | $ | (17 | ) |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of the Changes in the Carrying Value of Goodwill | ' | |||||||||||||||||||
A summary of the changes in the carrying value of goodwill is presented below (in millions): | ||||||||||||||||||||
Commercial Truck & Industrial | Aftermarket | Commercial Truck | Industrial | Total | ||||||||||||||||
& Trailer | ||||||||||||||||||||
Balance at September 30, 2012 | $ | — | $ | 171 | $ | 153 | $ | 109 | $ | 433 | ||||||||||
Segment reorganization | 262 | — | (153 | ) | (109 | ) | — | |||||||||||||
Foreign currency translation | — | 1 | — | — | 1 | |||||||||||||||
Balance at September 30, 2013 | 262 | 172 | — | — | 434 | |||||||||||||||
Foreign currency translation | (1 | ) | (2 | ) | — | — | (3 | ) | ||||||||||||
Balance at September 30, 2014 | $ | 261 | $ | 170 | $ | — | $ | — | $ | 431 | ||||||||||
RESTRUCTURING_COSTS_Tables
RESTRUCTURING COSTS (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Changes in Restructuring Reserves | ' | |||||||||||||||
The following table summarizes changes in restructuring reserves (in millions): | ||||||||||||||||
Employee | Asset | Plant | Total | |||||||||||||
Termination | Impairment | Shutdown | ||||||||||||||
Benefits | & Other | |||||||||||||||
Balance at September 30, 2011 | $ | 19 | $ | — | $ | — | $ | 19 | ||||||||
Activity during the period: | ||||||||||||||||
Charges to continuing operations | 18 | 19 | 2 | 39 | ||||||||||||
Charges to discontinued operations (1) | — | — | 1 | 1 | ||||||||||||
Asset write-offs | — | (19 | ) | — | (19 | ) | ||||||||||
Cash payments – continuing operations | (20 | ) | — | (2 | ) | (22 | ) | |||||||||
Cash payments – discontinued operations | (2 | ) | — | (1 | ) | (3 | ) | |||||||||
Balance at September 30, 2012 | 15 | — | — | 15 | ||||||||||||
Activity during the period: | ||||||||||||||||
Charges to continuing operations | 18 | 1 | 4 | 23 | ||||||||||||
Charges to discontinued operations (1) | 3 | — | — | 3 | ||||||||||||
Asset write-offs | — | (1 | ) | — | (1 | ) | ||||||||||
Cash payments – continuing operations | (19 | ) | — | (4 | ) | (23 | ) | |||||||||
Cash payments – discontinued operations (1) | (3 | ) | — | — | (3 | ) | ||||||||||
Other | (2 | ) | — | — | (2 | ) | ||||||||||
Balance at September 30, 2013 | 12 | — | — | 12 | ||||||||||||
Activity during the period: | ||||||||||||||||
Charges to continuing operations | 10 | — | — | 10 | ||||||||||||
Cash payments – continuing operations | (10 | ) | — | — | (10 | ) | ||||||||||
Other | (1 | ) | — | — | (1 | ) | ||||||||||
Total restructuring reserves, end of year | 11 | — | — | 11 | ||||||||||||
Less: non-current restructuring reserves | (2 | ) | — | — | (2 | ) | ||||||||||
Restructuring reserves – current, at September 30, 2014 | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
____________________ | ||||||||||||||||
-1 | Charges to discontinued operations are included in discontinued operations in the consolidated statement of operations. Amounts for prior periods have been recast for discontinued operations. | |||||||||||||||
Schedule of Restructuring Expense Recognized By Segment | ' | |||||||||||||||
Restructuring costs attributable to in the company’s business segments during fiscal years 2014, 2013 and 2012 are as follows (in millions): | ||||||||||||||||
Commercial | Aftermarket & Trailer | Corporate | Total | |||||||||||||
Truck & Industrial | ||||||||||||||||
Fiscal year 2014: | ||||||||||||||||
South America labor reduction | $ | 7 | $ | — | $ | — | $ | 7 | ||||||||
Other | 1 | 1 | 1 | 3 | ||||||||||||
Total restructuring costs | $ | 8 | $ | 1 | $ | 1 | $ | 10 | ||||||||
Fiscal year 2013: | ||||||||||||||||
Variable labor reductions | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||
Segment reorganization and Asia-Pacific realignment | 10 | 3 | 3 | 16 | ||||||||||||
M2016 footprint actions | 2 | — | — | 2 | ||||||||||||
Total restructuring costs | $ | 17 | $ | 3 | $ | 3 | $ | 23 | ||||||||
Fiscal year 2012: | ||||||||||||||||
Performance Plus actions | $ | 24 | $ | — | $ | — | $ | 24 | ||||||||
Fiscal Year 2012 European action | 7 | — | — | 7 | ||||||||||||
Variable labor reductions | 5 | — | — | 5 | ||||||||||||
Other | — | 2 | 1 | 3 | ||||||||||||
Total restructuring costs | $ | 36 | $ | 2 | $ | 1 | $ | 39 | ||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory | ' | |||||||
Inventories are stated at the lower of cost (using FIFO or average methods) or market (determined on the basis of estimated realizable values) and are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 146 | $ | 184 | ||||
Work in process | 36 | 32 | ||||||
Raw materials, parts and supplies | 197 | 198 | ||||||
Total | $ | 379 | $ | 414 | ||||
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Current Assets Disclosure [Abstract] | ' | |||||||
Schedule of Other Current Assets | ' | |||||||
Other current assets are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Current deferred income tax assets (see Note 21) | $ | 21 | $ | 23 | ||||
Asbestos-related recoveries (see Note 22) | 15 | 12 | ||||||
Deposits and collateral | 4 | 4 | ||||||
Prepaid and other | 16 | 17 | ||||||
Other current assets | $ | 56 | $ | 56 | ||||
NET_PROPERTY_Tables
NET PROPERTY (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of Net Property | ' | |||||||
Net property is summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Property at cost: | ||||||||
Land and land improvements | $ | 34 | $ | 35 | ||||
Buildings | 236 | 239 | ||||||
Machinery and equipment | 906 | 915 | ||||||
Company-owned tooling | 155 | 152 | ||||||
Construction in progress | 66 | 48 | ||||||
Total | 1,397 | 1,389 | ||||||
Less accumulated depreciation | (973 | ) | (972 | ) | ||||
Net property | $ | 424 | $ | 417 | ||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Schedule of Other Assets | ' | |||||||
Other assets are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Investments in non-consolidated joint ventures (see Note 12) | $ | 106 | $ | 102 | ||||
Asbestos-related recoveries (see Note 22) | 45 | 59 | ||||||
Unamortized debt issuance costs (see Note 15) | 30 | 32 | ||||||
Capitalized software costs, net | 25 | 28 | ||||||
Non-current deferred income tax assets (see Note 21) | 15 | 13 | ||||||
Assets for uncertain tax positions (see Note 21) | 5 | 5 | ||||||
Prepaid pension costs (see Note 20) | 104 | 55 | ||||||
Other | 25 | 41 | ||||||
Other assets | $ | 355 | $ | 335 | ||||
INVESTMENTS_IN_NONCONSOLIDATED1
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Schedule of Equity Method Investments | ' | |||||||||||
The company’s non-consolidated joint ventures and related direct ownership interest are as follows: | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Meritor WABCO Vehicle Control Systems (Commercial Truck & Industrial) | 50 | % | 50 | % | 50 | % | ||||||
Master Sistemas Automotivos Ltda. (Commercial Truck & Industrial) | 49 | % | 49 | % | 49 | % | ||||||
Suspensys Sistemas Automotivos Ltda. (1) (Aftermarket & Trailer) | — | % | — | % | 24 | % | ||||||
Sistemas Automotrices de Mexico S.A. de C.V. (Commercial Truck & Industrial) | 50 | % | 50 | % | 50 | % | ||||||
Ege Fren Sanayii ve Ticaret A.S. (Commercial Truck & Industrial) | 49 | % | 49 | % | 49 | % | ||||||
Automotive Axles Limited (Commercial Truck & Industrial) | 36 | % | 36 | % | 36 | % | ||||||
ZF Meritor LLC (Commercial Truck & Industrial) | 50 | % | 50 | % | 50 | % | ||||||
____________________ | ||||||||||||
(1) Total direct and indirect ownership interest in fiscal year 2012 of 50 percent. | ||||||||||||
Schedule Of Investments In Non-Consolidated Joint Ventures | ' | |||||||||||
The company’s investments in non-consolidated joint ventures are as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Commercial Truck & Industrial | $ | 106 | $ | 102 | ||||||||
Aftermarket & Trailer | — | — | ||||||||||
Total investments in non-consolidated joint ventures | $ | 106 | $ | 102 | ||||||||
Income Loss From Equity Method Investments | ' | |||||||||||
The company’s equity in earnings of non-consolidated joint ventures is as follows (in millions): | ||||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Commercial Truck & Industrial | $ | 38 | $ | 36 | $ | 45 | ||||||
Aftermarket & Trailer | — | 6 | 7 | |||||||||
Total equity in earnings of affiliates | $ | 38 | $ | 42 | $ | 52 | ||||||
Summarized Balance Sheet Information Of Non-Consolidated Joint Ventures | ' | |||||||||||
The summarized financial information presented below represents the combined accounts of the company’s non-consolidated joint ventures related to its continuing operations (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Current assets | $ | 441 | $ | 382 | ||||||||
Non-current assets | 152 | 150 | ||||||||||
Total assets | $ | 593 | $ | 532 | ||||||||
Current liabilities | $ | 262 | $ | 219 | ||||||||
Non-current liabilities | 127 | 118 | ||||||||||
Total liabilities | $ | 389 | $ | 337 | ||||||||
Summarized Income Statement Information Of Non-Consolidated Joint Ventures | ' | |||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Sales | $ | 1,268 | $ | 1,552 | $ | 1,787 | ||||||
Gross profit | 167 | 201 | 215 | |||||||||
Net income | 458 | 96 | 123 | |||||||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Other Current Liabilities Disclosure [Abstract] | ' | |||||||||||
Schedule Of Other Current Liabilities | ' | |||||||||||
Other current liabilities are summarized as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Compensation and benefits | $ | 146 | $ | 141 | ||||||||
Income taxes | 8 | 8 | ||||||||||
Taxes other than income taxes | 50 | 47 | ||||||||||
Accrued interest | 15 | 16 | ||||||||||
Product warranties | 27 | 20 | ||||||||||
Restructuring (see Note 5) | 9 | 9 | ||||||||||
Asbestos-related liabilities (see Note 22) | 17 | 18 | ||||||||||
Indemnity obligations (see Note 22) | 11 | 12 | ||||||||||
Other | 68 | 68 | ||||||||||
Other current liabilities | $ | 351 | $ | 339 | ||||||||
Schedule of Product Warranty Liability | ' | |||||||||||
A summary of the changes in product warranties is as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Total product warranties – beginning of year | $ | 57 | $ | 44 | $ | 48 | ||||||
Accruals for product warranties (1) | 22 | 31 | 22 | |||||||||
Payments | (22 | ) | (20 | ) | (18 | ) | ||||||
Change in estimates and other | (6 | ) | 2 | (8 | ) | |||||||
Total product warranties – end of year | 51 | 57 | 44 | |||||||||
Less: non-current product warranties (see Note 14) | (24 | ) | (37 | ) | (28 | ) | ||||||
Product warranties – current | $ | 27 | $ | 20 | $ | 16 | ||||||
(1) Includes an accrual of $12 million for a specific warranty contingency related to a non-safety, product performance issue recognized during fiscal year 2013. Of the $12 million, $8 million was reversed in fiscal year 2014 as the company moved from a full recall campaign to a fix-as-find approach (see Note 22). |
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule Of Other Liabilities, Noncurrent | ' | |||||||
Other liabilities are summarized as follows (in millions): | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Asbestos-related liabilities (see Note 22) | $ | 105 | $ | 96 | ||||
Restructuring (see Note 5) | 2 | 3 | ||||||
Non-current deferred income tax liabilities (see Note 21) | 103 | 100 | ||||||
Liabilities for uncertain tax positions (see Note 21) | 14 | 17 | ||||||
Product warranties (see Note 13) | 24 | 37 | ||||||
Environmental (see Note 22) | 7 | 11 | ||||||
Indemnity obligations (see Note 22) | 17 | 26 | ||||||
Other | 37 | 45 | ||||||
Other liabilities | $ | 309 | $ | 335 | ||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||||||||||||||||
Long-Term Debt, net of discounts where applicable, is summarized as follows (in millions): | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
8.125 percent notes due 2015 | $ | — | $ | 84 | ||||||||||||||||||||||||
10.625 percent notes due 2018 (net of issuance discount of $3) | — | 247 | ||||||||||||||||||||||||||
4.625 percent convertible notes due 2026 (1) | 55 | 55 | ||||||||||||||||||||||||||
4.0 percent convertible notes due 2027 (1) | 162 | 200 | ||||||||||||||||||||||||||
7.875 percent convertible notes due 2026 (net of issuance discount of $21 and $23, respectively) (1) | 229 | 227 | ||||||||||||||||||||||||||
6.75 percent notes due 2021 (2) | 275 | 275 | ||||||||||||||||||||||||||
6.25 percent notes due 2024 (2) | 225 | — | ||||||||||||||||||||||||||
Term loan | — | 45 | ||||||||||||||||||||||||||
Capital lease obligation | 26 | 28 | ||||||||||||||||||||||||||
Export financing arrangements | 31 | 18 | ||||||||||||||||||||||||||
Unamortized gain on interest rate swap termination | — | 2 | ||||||||||||||||||||||||||
Unamortized discount on convertible notes | (31 | ) | (43 | ) | ||||||||||||||||||||||||
Subtotal | 972 | 1,138 | ||||||||||||||||||||||||||
Less: current maturities | (7 | ) | (13 | ) | ||||||||||||||||||||||||
Long-term debt | $ | 965 | $ | 1,125 | ||||||||||||||||||||||||
-1 | The 4.625 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | |||||||||||||||||||||||||||
-2 | The 6.75 percent,and the 6.25 percent notes contain a call option, which allows for early redemption. | |||||||||||||||||||||||||||
Debt instrument redemption summary | ' | |||||||||||||||||||||||||||
On or after June 15, 2016, the company may redeem, at its option, from time to time, the 2021 Notes, in whole or in part, at the redemption prices (expressed as percentages of the principal amount of the 2021 Notes to be redeemed) set forth below, plus accrued and unpaid interest, if any, if redeemed during the 12-month period beginning on June 15 of the years indicated below: | ||||||||||||||||||||||||||||
Year | Redemption Price | |||||||||||||||||||||||||||
2016 | 105.06% | |||||||||||||||||||||||||||
2017 | 103.38% | |||||||||||||||||||||||||||
2018 | 101.69% | |||||||||||||||||||||||||||
2019 and thereafter | 100.00% | |||||||||||||||||||||||||||
On or after February 15, 2019, the company may redeem, at its option, from time to time, the 2024 Notes, in whole or in part, at the redemption prices (expressed as percentages of the principal amount of the 2024 Notes to be redeemed) set forth below, plus accrued and unpaid interest, if any, if redeemed during the 12-month period beginning on February 15 of the years indicated below: | ||||||||||||||||||||||||||||
Year | Redemption Price | |||||||||||||||||||||||||||
2019 | 103.13% | |||||||||||||||||||||||||||
2020 | 102.08% | |||||||||||||||||||||||||||
2021 | 101.04% | |||||||||||||||||||||||||||
2022 and thereafter | 100.00% | |||||||||||||||||||||||||||
Schedule of amortization periods and effective interest rates on convertible notes | ' | |||||||||||||||||||||||||||
The following table summarizes the principal amounts and related unamortized discount on all convertible notes (in millions): | ||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Principal amount of convertible notes | $ | 467 | $ | 505 | ||||||||||||||||||||||||
Unamortized discount on convertible notes | (52 | ) | (66 | ) | ||||||||||||||||||||||||
Net carrying value | $ | 415 | $ | 439 | ||||||||||||||||||||||||
Summary of convertible debt | ' | |||||||||||||||||||||||||||
The following table summarizes other information related to the convertible notes: | ||||||||||||||||||||||||||||
2026 convertible notes | 2027 convertible notes | 2013 convertible notes | ||||||||||||||||||||||||||
Total amortization period for debt discount (in years): | 10 | 12 | 8 | |||||||||||||||||||||||||
Remaining amortization period for debt discount (in years): | 2 | 5 | 6 | |||||||||||||||||||||||||
Effective interest rates on convertible notes: | 7 | % | 7.7 | % | 10.9 | % | ||||||||||||||||||||||
Schedule of interest costs on convertible notes | ' | |||||||||||||||||||||||||||
The following table summarizes interest costs recognized on convertible notes (in millions): | ||||||||||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Contractual interest coupon | $ | 30 | $ | 29 | $ | 22 | ||||||||||||||||||||||
Amortization of debt discount | 9 | 8 | 10 | |||||||||||||||||||||||||
Repurchase of convertible notes | 5 | 5 | — | |||||||||||||||||||||||||
Total | $ | 44 | $ | 42 | $ | 32 | ||||||||||||||||||||||
Maturities of long-term debt | ' | |||||||||||||||||||||||||||
As of September 30, 2014, the company is contractually obligated to make payments as follows (in millions): | ||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter (2) | ||||||||||||||||||||||
Total debt (1) | $ | 1,024 | $ | 7 | $ | 22 | $ | 17 | $ | 4 | $ | 2 | $ | 972 | ||||||||||||||
-1 | Total debt excludes the unamortized discount on convertible notes of $31 million and discount of $21 million on the 7.875 percent notes due March 1, 2026. | |||||||||||||||||||||||||||
-2 | Includes the company's 4.625 percent, 4.0 percent and 7.875 percent convertible notes, which contain a put and call feature that allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | |||||||||||||||||||||||||||
Future minimum lease payments for capital leases | ' | |||||||||||||||||||||||||||
As of September 30, 2014, the future minimum lease payments for noncancelable capital leases with initial terms in excess of one year were as follows: | ||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
Capital lease obligation | $ | 35 | $ | 7 | $ | 7 | $ | 6 | $ | 4 | $ | 3 | $ | 8 | ||||||||||||||
Less amounts representing interest | (9 | ) | (2 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||||||||
Principal on capital lease | $ | 26 | $ | 5 | $ | 5 | $ | 5 | $ | 3 | $ | 2 | $ | 6 | ||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of impact of the company's derivative instruments on comprehensive income | ' | |||||||||||||||||
The following table summarizes the impact of the company’s derivatives instruments on comprehensive income for fiscal years ended September 30 (in millions): | ||||||||||||||||||
Location of | 2014 | 2013 | 2012 | |||||||||||||||
Gain (Loss) | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Amount of gain recognized in AOCL | AOCL | $ | 3 | $ | — | $ | 3 | |||||||||||
(effective portion) | ||||||||||||||||||
Amount of gain (loss) reclassified from AOCL | Cost of Sales | 1 | 1 | 3 | ||||||||||||||
into income (effective portion) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | Cost of Sales | — | — | — | ||||||||||||||
Amount of gain recognized in income | ||||||||||||||||||
Summary of fair values of financial instruments | ' | |||||||||||||||||
Fair values of financial instruments are summarized as follows (in millions): | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Value | Value | Value | Value | |||||||||||||||
Cash and cash equivalents | $ | 247 | $ | 247 | $ | 318 | $ | 318 | ||||||||||
Short-term debt | 7 | 7 | 13 | 13 | ||||||||||||||
Long-term debt | 965 | 1,143 | 1,125 | 1,266 | ||||||||||||||
Foreign exchange forward contracts (asset) | 2 | 2 | — | — | ||||||||||||||
Foreign exchange forward contracts (liability) | — | — | 1 | 1 | ||||||||||||||
Short-term foreign currency option contracts (asset) | 2 | 2 | — | — | ||||||||||||||
Long-term foreign currency option contracts (asset) | 1 | 1 | — | — | ||||||||||||||
Offsetting Assets And Liabilities | ' | |||||||||||||||||
The following table reflects the offsetting of derivative assets and liabilities (in millions): | ||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||
Gross | Gross Amounts | Net Amounts | Gross | Gross Amounts | Net Amounts | |||||||||||||
Amounts Recognized | Offset | Reported | Amounts Recognized | Offset | Reported | |||||||||||||
Derivative Asset | ||||||||||||||||||
Foreign exchange forward contract | 2 | — | 2 | — | — | — | ||||||||||||
Derivative Liabilities | ||||||||||||||||||
Foreign exchange forward contract | — | — | — | 1 | — | 1 | ||||||||||||
Fair value of financial instruments by the valuation hierarchy | ' | |||||||||||||||||
Fair value of financial instruments by the valuation hierarchy at September 30, 2014 is as follows (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||
Cash and cash equivalents | $ | 247 | $ | — | $ | — | ||||||||||||
Short-term debt | — | — | 7 | |||||||||||||||
Long-term debt | — | 1,093 | 50 | |||||||||||||||
Foreign exchange forward contracts (asset) | — | 2 | — | |||||||||||||||
Short Term foreign currency option contracts | — | — | 2 | |||||||||||||||
Long Term foreign currency option contracts | — | — | 1 | |||||||||||||||
SHAREOWNERS_EQUITY_Tables
SHAREOWNERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | ' | |||||||||||||||
The components of AOCL as reported in the Consolidated Balance Sheet and Statement of Equity (Deficit), and the changes in AOCL by components, net of tax, are as follows (in millions): | ||||||||||||||||
Foreign Currency Translation | Employee Benefit Related Adjustments | Unrealized Loss, net of tax | Total | |||||||||||||
Balance at September 30, 2013 | $ | 61 | $ | (792 | ) | $ | (3 | ) | $ | (734 | ) | |||||
Other comprehensive income (loss) before reclassification | (20 | ) | (21 | ) | 2 | (39 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss - net of tax | — | 24 | — | 24 | ||||||||||||
Net current-period other comprehensive income (loss) | $ | (20 | ) | $ | 3 | $ | 2 | $ | (15 | ) | ||||||
Balance at September 30, 2014 | $ | 41 | $ | (789 | ) | $ | (1 | ) | $ | (749 | ) | |||||
Reclassification out of accumulated other comprehensive income | ' | |||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statement of Operations | ||||||||||||||
Employee Benefit Related Adjustment | ||||||||||||||||
Amortization of prior service costs | $ | (7 | ) | (a) | ||||||||||||
Amortization of actuarial losses | 46 | (a) | ||||||||||||||
Recognized prior service costs due to curtailment | (15 | ) | (a) | |||||||||||||
24 | Total before tax | |||||||||||||||
— | Tax (benefit) expense | |||||||||||||||
$ | 24 | Net of tax | ||||||||||||||
Total reclassifications for the period | 24 | Net of tax | ||||||||||||||
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 19 and 20 for additional details). | ||||||||||||||||
EQUITY_BASED_COMPENSATION_Tabl
EQUITY BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock Options Activity | ' | |||||||||||||||
The following is a rollforward of stock options for fiscal year 2014 (shares in thousands, exercise price and remaining contractual term represent weighted averages and aggregate intrinsic values in millions): | ||||||||||||||||
Shares | Exercise | Remaining | Aggregate | |||||||||||||
Price | Contractual | Intrinsic | ||||||||||||||
Life (years) | Value | |||||||||||||||
Outstanding — beginning of year | 864 | $ | 12.27 | |||||||||||||
Cancelled or expired | (214 | ) | 18.19 | |||||||||||||
Outstanding — end of year | 650 | $ | 10.32 | 3 | — | |||||||||||
Exercisable — end of year | 533 | $ | 10.79 | 2.7 | — | |||||||||||
Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | |||||||||||||||
The following table provides additional information about outstanding stock options at September 30, 2014 (shares in thousands, exercise price represents a weighted average): | ||||||||||||||||
Outstanding | Exercisable | |||||||||||||||
Shares | Remaining | Exercise | Shares | Exercise | ||||||||||||
Contractual | Price | Price | ||||||||||||||
Life (years) | ||||||||||||||||
$8.00 to $12.00 | 350 | 4 | $ | 8.22 | 233 | $ | 8.22 | |||||||||
$12.01 to $16.00 | 300 | 1.8 | 12.78 | 300 | 12.78 | |||||||||||
Total | 650 | 533 | ||||||||||||||
Stock Options Valuation Assumptions | ' | |||||||||||||||
The fair value of each option was estimated using following assumptions: | ||||||||||||||||
2013 | ||||||||||||||||
Risk-free interest rate | 1.7 | % | ||||||||||||||
Expected dividend yield | — | % | ||||||||||||||
Expected volatility | 60.4 | % | ||||||||||||||
Expected life (years) | 5 | |||||||||||||||
RETIREMENT_MEDICAL_PLANS_Table
RETIREMENT MEDICAL PLANS (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ' | |||||||||||
Schedule Of Retiree Medical Liability Expense Assumptions | ' | |||||||||||
The company’s retiree medical obligations were measured as of September 30, 2014 and 2013. The following are the assumptions used in the measurement of the APBO and retiree medical expense: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.2 | % | 4.8 | % | 3.9 | % | ||||||
Health care cost trend rate | 7.4 | % | 7 | % | 7.2 | % | ||||||
Ultimate health care trend rate | 5 | % | 5 | % | 5 | % | ||||||
Year ultimate rate is reached | 2022 | 2022 | 2023 | |||||||||
Retiree Medical Liability Components At Balance Sheet Date | ' | |||||||||||
The APBO as of the September 30, 2014 and 2013 measurement dates are summarized as follows (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
Retirees | $ | 465 | $ | 495 | ||||||||
Employees eligible to retire | 4 | 8 | ||||||||||
Employees not eligible to retire | 8 | 8 | ||||||||||
Total | $ | 477 | $ | 511 | ||||||||
Rollforward Of Retiree Medical Liability | ' | |||||||||||
The following reconciles the change in APBO and the amounts included in the consolidated balance sheet for years ended September 30, 2014 and 2013, respectively (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
APBO — beginning of year | $ | 511 | $ | 554 | ||||||||
Service cost | — | 1 | ||||||||||
Interest cost | 23 | 21 | ||||||||||
Participant contributions | 2 | 3 | ||||||||||
Actuarial gain | (2 | ) | (20 | ) | ||||||||
Foreign currency rate changes | (1 | ) | (1 | ) | ||||||||
Curtailment gain | (16 | ) | (5 | ) | ||||||||
Benefit payments | (40 | ) | (42 | ) | ||||||||
APBO — end of year | 477 | 511 | ||||||||||
Other (1) | 2 | 2 | ||||||||||
Retiree medical liability | $ | 479 | $ | 513 | ||||||||
-1 | The company recorded a $2 million reserve for retiree medical liabilities at September 30, 2014 and 2013 as its best estimate for retroactive benefits related to the previously mentioned injunction. | |||||||||||
Schedule Of Retiree Medical Liability Current and Long Term Components | ' | |||||||||||
The retiree medical liability is included in the consolidated balance sheet as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Current — included in compensation and benefits | $ | 33 | $ | 37 | ||||||||
Long-term — included in retirement benefits | 446 | 476 | ||||||||||
Retiree medical liability | $ | 479 | $ | 513 | ||||||||
Amount Of Retiree Medical Obligations Recorded In Accumulated Other Comprehensive Loss Net Of Tax | ' | |||||||||||
The following table summarizes the amounts included in Accumulated Other Comprehensive Loss net of tax related to retiree medical liabilities as of September 30, 2014 and 2013 and changes recognized in Other Comprehensive Income (Loss) net of tax for the years ended September 30, 2014 and 2013. | ||||||||||||
Net Actuarial | Prior | Total | ||||||||||
Loss | Service | |||||||||||
Cost | ||||||||||||
(Benefit) | ||||||||||||
Balance at September 30, 2013 | $ | 169 | $ | (19 | ) | $ | 150 | |||||
Net actuarial gain for the year | (3 | ) | — | (3 | ) | |||||||
Curtailment gain | — | (16 | ) | (16 | ) | |||||||
Recognized prior service costs due to curtailment | — | 15 | 15 | |||||||||
Amortization for the year | (23 | ) | 7 | (16 | ) | |||||||
Deferred tax impact | (1 | ) | — | (1 | ) | |||||||
Balance at September 30, 2014 | $ | 142 | $ | (13 | ) | $ | 129 | |||||
Balance at September 30, 2012 | $ | 197 | $ | (6 | ) | $ | 191 | |||||
Net actuarial (gain) loss for the year | 1 | (21 | ) | (20 | ) | |||||||
Amortization for the year | (27 | ) | 8 | (19 | ) | |||||||
Curtailment gain | (5 | ) | — | (5 | ) | |||||||
Deferred tax impact | 3 | — | 3 | |||||||||
Balance at September 30, 2013 | $ | 169 | $ | (19 | ) | $ | 150 | |||||
Components Of Retiree Medical Expense | ' | |||||||||||
The components of retiree medical expense for years ended September 30 are as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | — | $ | 1 | $ | 1 | ||||||
Interest cost | 23 | 21 | 24 | |||||||||
Amortization of: | ||||||||||||
Prior service benefit | (7 | ) | (8 | ) | (9 | ) | ||||||
Actuarial losses | 23 | 27 | 26 | |||||||||
Recognized prior service costs due to curtailment | $ | (15 | ) | $ | — | $ | — | |||||
Retiree medical expense | $ | 24 | $ | 41 | $ | 42 | ||||||
Retiree Medical Plan Effect Of One Percentage Point Change In Assumed Health Care Cost Trend Rates | ' | |||||||||||
A one-percentage point change in the assumed health care cost trend rate for all years to, and including, the ultimate rate would have the following effects (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
Effect on total service and interest cost | ||||||||||||
1% Increase | $ | 2 | $ | 3 | ||||||||
1% Decrease | (2 | ) | (2 | ) | ||||||||
Effect on APBO | ||||||||||||
1% Increase | 46 | 50 | ||||||||||
1% Decrease | (40 | ) | (43 | ) | ||||||||
Retiree Medical Plan Estimated Future Benefit Payments | ' | |||||||||||
The company expects future benefit payments as follows (in millions): | ||||||||||||
Gross | Gross | |||||||||||
Benefit | Receipts(1) | |||||||||||
Payments | ||||||||||||
Fiscal 2015 | $ | 38 | $ | 5 | ||||||||
Fiscal 2016 | 39 | 6 | ||||||||||
Fiscal 2017 | 39 | 6 | ||||||||||
Fiscal 2018 | 40 | 7 | ||||||||||
Fiscal 2019 | 40 | 7 | ||||||||||
Fiscal 2020 – 2024 | 202 | 41 | ||||||||||
____________________ | ||||||||||||
-1 | Consists of subsidies and rebates available under EGWP. |
RETIREMENT_PENSION_PLANS_Table
RETIREMENT PENSION PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of US Pension Liability Expense Assumptions | ' | |||||||||||||||||||||||
The following are the significant assumptions used in the measurement of the projected benefit obligation (PBO) and net periodic pension expense: | ||||||||||||||||||||||||
U.S. Plans | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate | 4.2 | % | — | 4.3 | % | 4.75 | % | — | 4.95 | % | 4.2 | % | ||||||||||||
Assumed return on plan assets (beginning of the year) | 8.00% | 8.00% | 8 | % | ||||||||||||||||||||
Schedule of Non-US Pension Liability Expense Assumptions | ' | |||||||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate (1) | 1.9 | % | — | 4.1 | % | 2.4 | % | — | 4.7 | % | 2.1 | % | — | 4.6 | % | |||||||||
Assumed return on plan assets (beginning of the year) (1) | 2.25 | % | — | 7.25 | % | 2.5 | % | — | 7.25 | % | 2.5 | % | — | 7.5 | % | |||||||||
Rate of compensation increase (2) | 2 | % | — | 3 | % | 2 | % | — | 3 | % | 2 | % | — | 3 | % | |||||||||
____________________ | ||||||||||||||||||||||||
(1) | The discount rate for the company’s U.K. pension plan was 4.10 percent, 4.70 percent and 4.60 percent for 2014, 2013 and 2012, respectively. The assumed return on plan assets for this plan was 7.25 percent, 7.25 percent and 7.50 percent for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
(2) | The rate of compensation increase for the company's Canadian pension plans was 3.00 percent for 2014, 2013 and 2012. The rate of compensation increase for the company's Swiss pension plans was 2.00 percent for 2014, 2013 and 2012. | |||||||||||||||||||||||
Rollforward of Pension Liability and Pension Plan Assets | ' | |||||||||||||||||||||||
The following table reconciles the change in the PBO, the change in plan assets and amounts included in the consolidated balance sheet for the years ended September 30, 2014 and 2013, respectively (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
U.S. | Non- U.S. | Total | U.S. | Non- U.S. | Total | |||||||||||||||||||
PBO — beginning of year | $ | 1,017 | $ | 691 | $ | 1,708 | $ | 1,312 | $ | 754 | $ | 2,066 | ||||||||||||
Service cost | 1 | 1 | 2 | 1 | 2 | 3 | ||||||||||||||||||
Interest cost | 49 | 31 | 80 | 54 | 29 | 83 | ||||||||||||||||||
Actuarial loss (gain) | 67 | 38 | 105 | (102 | ) | 17 | (85 | ) | ||||||||||||||||
Curtailment gain | — | — | — | (4 | ) | (1 | ) | (5 | ) | |||||||||||||||
Settlements | — | — | — | (178 | ) | (70 | ) | (248 | ) | |||||||||||||||
Amendments | (4 | ) | — | (4 | ) | — | — | — | ||||||||||||||||
Benefit payments | (71 | ) | (28 | ) | (99 | ) | (66 | ) | (33 | ) | (99 | ) | ||||||||||||
Foreign currency rate changes | — | 2 | 2 | — | (7 | ) | (7 | ) | ||||||||||||||||
PBO — end of year | $ | 1,059 | $ | 735 | $ | 1,794 | $ | 1,017 | $ | 691 | $ | 1,708 | ||||||||||||
Change in plan assets | ||||||||||||||||||||||||
Fair value of assets — beginning of year | $ | 710 | $ | 657 | $ | 1,367 | $ | 864 | $ | 673 | $ | 1,537 | ||||||||||||
Actual return on plan assets | 94 | 69 | 163 | 3 | 53 | 56 | ||||||||||||||||||
Employer contributions | 99 | 38 | 137 | 66 | 49 | 115 | ||||||||||||||||||
Settlements | — | — | — | (157 | ) | (74 | ) | (231 | ) | |||||||||||||||
Benefit payments | (71 | ) | (28 | ) | (99 | ) | (66 | ) | (33 | ) | (99 | ) | ||||||||||||
Foreign currency rate changes | — | 7 | 7 | — | (11 | ) | (11 | ) | ||||||||||||||||
Fair value of assets — end of year | $ | 832 | $ | 743 | $ | 1,575 | $ | 710 | $ | 657 | $ | 1,367 | ||||||||||||
Funded status | $ | (227 | ) | $ | 8 | $ | (219 | ) | $ | (307 | ) | $ | (34 | ) | $ | (341 | ) | |||||||
Schedule of Balance Sheet Classification of Net Pension Liability | ' | |||||||||||||||||||||||
Amounts included in the consolidated balance sheet at September 30 are comprised of the following (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Non-current assets | $ | — | $ | 104 | $ | 104 | $ | — | $ | 55 | $ | 55 | ||||||||||||
Current liabilities | (5 | ) | (3 | ) | (8 | ) | (6 | ) | (3 | ) | (9 | ) | ||||||||||||
Retirement benefits-non-current | (222 | ) | (93 | ) | (315 | ) | (301 | ) | (86 | ) | (387 | ) | ||||||||||||
Net amount recognized | $ | (227 | ) | $ | 8 | $ | (219 | ) | $ | (307 | ) | $ | (34 | ) | $ | (341 | ) | |||||||
Schedule of Pension Costs Recognized in Other Comprehensive Loss | ' | |||||||||||||||||||||||
The following tables summarize the amounts included in Accumulated Other Comprehensive Loss net of tax related to pension liabilities as of September 30, 2014 and 2013 and changes recognized in Other Comprehensive Income (Loss) net of tax for the year ended September 30, 2014. | ||||||||||||||||||||||||
Net Actuarial Loss | ||||||||||||||||||||||||
U.S. | Non-U.S. | Total | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 408 | $ | 234 | $ | 642 | ||||||||||||||||||
Net actuarial loss for the year | 26 | 16 | 42 | |||||||||||||||||||||
Amortization for the year | (15 | ) | (8 | ) | (23 | ) | ||||||||||||||||||
Deferred tax impact | — | (1 | ) | (1 | ) | |||||||||||||||||||
Balance at September 30, 2014 | $ | 419 | $ | 241 | $ | 660 | ||||||||||||||||||
Balance at September 30, 2012 | $ | 560 | $ | 259 | $ | 819 | ||||||||||||||||||
Net actuarial loss (gain) for the year | (58 | ) | 13 | (45 | ) | |||||||||||||||||||
Amortization for the year | (17 | ) | (9 | ) | (26 | ) | ||||||||||||||||||
Curtailment gain | (4 | ) | — | (4 | ) | |||||||||||||||||||
Deferred tax impact | — | 9 | 9 | |||||||||||||||||||||
Settlements | (73 | ) | (38 | ) | (111 | ) | ||||||||||||||||||
Balance at September 30, 2013 | $ | 408 | $ | 234 | $ | 642 | ||||||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||||||||||
The non-current portion of the pension liability is included in Retirement Benefits in the consolidated balance sheet as follows (in millions): | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Pension liability | $ | 315 | $ | 387 | ||||||||||||||||||||
Retiree medical liability — long term (see Note 19) | 446 | 476 | ||||||||||||||||||||||
Other | 14 | 23 | ||||||||||||||||||||||
Total retirement benefits | $ | 775 | $ | 886 | ||||||||||||||||||||
Schedule of Projected Benefit Obligation Accumulated Benefit Obligation and Plan Assets | ' | |||||||||||||||||||||||
Additional information is as follows (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
ABO | Assets | Total | ABO | Assets | Total | |||||||||||||||||||
Exceeds | Exceed | Exceeds | Exceed | |||||||||||||||||||||
Assets | ABO | Assets | ABO | |||||||||||||||||||||
PBO | $ | 1,180 | $ | 614 | $ | 1,794 | $ | 1,116 | $ | 592 | $ | 1,708 | ||||||||||||
ABO | 1,180 | 613 | 1,793 | 1,115 | 592 | 1,707 | ||||||||||||||||||
Plan Assets | 857 | 718 | 1,575 | 719 | 648 | 1,367 | ||||||||||||||||||
Schedule of Net Periodic Pension Benefit Costs | ' | |||||||||||||||||||||||
The components of net periodic pension expense are as follows (in millions): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost | $ | 2 | $ | 3 | $ | 2 | ||||||||||||||||||
Interest cost | 80 | 83 | 91 | |||||||||||||||||||||
Assumed rate of return on plan assets | (104 | ) | (112 | ) | (105 | ) | ||||||||||||||||||
Amortization of — | ||||||||||||||||||||||||
Actuarial losses | 23 | 26 | 22 | |||||||||||||||||||||
Curtailment gain | — | (1 | ) | — | ||||||||||||||||||||
Settlement loss | — | 111 | 1 | |||||||||||||||||||||
Net periodic pension expense | 1 | 110 | 11 | |||||||||||||||||||||
Pension Plan Investments Measured at Fair Value by Level Within Fair Value Hierarchy | ' | |||||||||||||||||||||||
The fair value of plan assets at September 30, 2014 by asset category is as follows (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
U.S. – Large cap | $ | 104 | $ | — | $ | — | $ | 104 | ||||||||||||||||
U.S. – Small cap | 25 | — | — | 25 | ||||||||||||||||||||
Emerging equity | — | 22 | — | 22 | ||||||||||||||||||||
Private equity | — | — | 80 | 80 | ||||||||||||||||||||
International equity | 65 | 12 | — | 77 | ||||||||||||||||||||
Partnerships – equity | — | 57 | 1 | 58 | ||||||||||||||||||||
Total equity investments | $ | 194 | $ | 91 | $ | 81 | $ | 366 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
U.S. fixed income | $ | 24 | $ | 252 | $ | — | $ | 276 | ||||||||||||||||
Emerging fixed income | — | 22 | — | 22 | ||||||||||||||||||||
International fixed income | — | — | 11 | 11 | ||||||||||||||||||||
U.S. high yield | — | 15 | — | 15 | ||||||||||||||||||||
Partnerships fixed income | — | — | 18 | 18 | ||||||||||||||||||||
Total fixed income | $ | 24 | $ | 289 | $ | 29 | $ | 342 | ||||||||||||||||
Alternatives – Partnerships | — | 63 | 60 | 123 | ||||||||||||||||||||
Cash and cash equivalents | — | 1 | — | 1 | ||||||||||||||||||||
Total assets at fair value | $ | 218 | $ | 444 | $ | 170 | $ | 832 | ||||||||||||||||
Non-U.S. Plans | 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
International equity | $ | 103 | $ | 112 | $ | — | $ | 215 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
Corporate bonds | — | 139 | — | 139 | ||||||||||||||||||||
Other fixed income investments | — | 205 | — | 205 | ||||||||||||||||||||
Total fixed income | $ | — | $ | 344 | $ | — | $ | 344 | ||||||||||||||||
Real estate | — | — | 67 | 67 | ||||||||||||||||||||
Commingled funds | — | 9 | — | 9 | ||||||||||||||||||||
Alternative investments | — | — | 61 | 61 | ||||||||||||||||||||
Cash and cash equivalents | — | 47 | — | 47 | ||||||||||||||||||||
Total assets at fair value | $ | 103 | $ | 512 | $ | 128 | $ | 743 | ||||||||||||||||
The fair value of plan assets at September 30, 2013 by asset category is as follows (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
U.S. – Large cap | $ | 97 | $ | — | $ | — | $ | 97 | ||||||||||||||||
U.S. – Small cap | 29 | — | — | 29 | ||||||||||||||||||||
Emerging equity | — | 22 | — | 22 | ||||||||||||||||||||
Private equity | — | — | 50 | 50 | ||||||||||||||||||||
International equity | 81 | — | — | 81 | ||||||||||||||||||||
Partnerships – equity | — | 41 | — | 41 | ||||||||||||||||||||
Total equity investments | $ | 207 | $ | 63 | $ | 50 | $ | 320 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
U.S. fixed income | $ | 21 | $ | 173 | $ | — | $ | 194 | ||||||||||||||||
Emerging fixed income | — | 20 | — | 20 | ||||||||||||||||||||
International fixed income | — | — | 9 | 9 | ||||||||||||||||||||
U.S. high yield | — | — | 12 | 12 | ||||||||||||||||||||
Partnerships fixed income | — | — | 19 | 19 | ||||||||||||||||||||
Total fixed income | $ | 21 | $ | 193 | $ | 40 | $ | 254 | ||||||||||||||||
Alternatives – Partnerships | — | 71 | 53 | 124 | ||||||||||||||||||||
Cash and cash equivalents | — | 12 | — | 12 | ||||||||||||||||||||
Total assets at fair value | $ | 228 | $ | 339 | $ | 143 | $ | 710 | ||||||||||||||||
Non-U.S. Plans | 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||
International equity | $ | 94 | $ | 102 | $ | — | $ | 196 | ||||||||||||||||
Fixed income investments | ||||||||||||||||||||||||
Corporate bonds | — | 145 | — | 145 | ||||||||||||||||||||
Other fixed income investments | — | 137 | — | 137 | ||||||||||||||||||||
Total fixed income | $ | — | $ | 282 | $ | — | $ | 282 | ||||||||||||||||
Real estate | — | — | 59 | 59 | ||||||||||||||||||||
Commingled funds | — | 9 | — | 9 | ||||||||||||||||||||
Alternative investments | — | — | 56 | 56 | ||||||||||||||||||||
Cash and cash equivalents | — | 55 | — | 55 | ||||||||||||||||||||
Total assets at fair value | $ | 94 | $ | 448 | $ | 115 | $ | 657 | ||||||||||||||||
Changes in Level 3, Pension Plan Investments | ' | |||||||||||||||||||||||
The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended September 30, 2014 (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2014 | |||||||||||||||||||||||
Fair Value at October 1, 2013 | Return on Plan Assets: Attributable to Assets Held at September 30, 2014 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2014 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Private equity | $ | 50 | $ | 23 | $ | 13 | $ | (6 | ) | $ | — | $ | 80 | |||||||||||
U.S. high yield | 12 | 1 | 2 | — | (15 | ) | — | |||||||||||||||||
International fixed income | 9 | 2 | — | — | — | 11 | ||||||||||||||||||
Partnerships – | ||||||||||||||||||||||||
Fixed income | 19 | 1 | 2 | (4 | ) | — | 18 | |||||||||||||||||
Equity | — | — | — | — | 1 | 1 | ||||||||||||||||||
Alternatives – | ||||||||||||||||||||||||
Partnerships | 53 | 9 | — | (2 | ) | — | 60 | |||||||||||||||||
Total Level 3 fair value | $ | 143 | $ | 36 | $ | 17 | $ | (12 | ) | $ | (14 | ) | $ | 170 | ||||||||||
Non-U.S. Plans | 2014 | |||||||||||||||||||||||
Fair Value at October 1, 2013 | Return on Plan Assets: Attributable to Assets Held at September 30, 2014 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2014 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Real estate | $ | 59 | $ | 9 | $ | — | $ | (1 | ) | $ | — | $ | 67 | |||||||||||
Alternative investments | 56 | 5 | — | — | — | 61 | ||||||||||||||||||
Total Level 3 fair value | $ | 115 | $ | 14 | $ | — | $ | (1 | ) | $ | — | $ | 128 | |||||||||||
The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended September 30, 2013 (in millions): | ||||||||||||||||||||||||
U.S. Plans | 2013 | |||||||||||||||||||||||
Fair Value at October 1, 2012 | Return on Plan Assets: Attributable to Assets Held at September 30, 2013 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2013 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Private equity | $ | 48 | $ | 1 | $ | 3 | $ | (2 | ) | $ | — | $ | 50 | |||||||||||
U.S. high yield | 10 | 2 | — | — | — | 12 | ||||||||||||||||||
International fixed income | 10 | (1 | ) | — | — | — | 9 | |||||||||||||||||
Partnerships – | ||||||||||||||||||||||||
Fixed income | 13 | 1 | 9 | (4 | ) | — | 19 | |||||||||||||||||
Equity | 13 | — | — | — | (13 | ) | — | |||||||||||||||||
Alternatives – | ||||||||||||||||||||||||
Partnerships | 49 | 7 | — | (3 | ) | — | 53 | |||||||||||||||||
Total Level 3 fair value | $ | 143 | $ | 10 | $ | 12 | $ | (9 | ) | $ | (13 | ) | $ | 143 | ||||||||||
Non-U.S. Plans | 2013 | |||||||||||||||||||||||
Fair Value at October 1, 2012 | Return on Plan Assets: Attributable to Assets Held at September 30, 2011 | Purchases | Settlements | Net Transfers Into (Out of) Level 3 | Fair Value at September 30, 2013 | |||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Real estate | $ | 50 | $ | 1 | $ | 10 | $ | (2 | ) | $ | — | $ | 59 | |||||||||||
Alternative investments | 64 | 4 | — | (12 | ) | — | 56 | |||||||||||||||||
Total Level 3 fair value | $ | 114 | $ | 5 | $ | 10 | $ | (14 | ) | $ | — | $ | 115 | |||||||||||
Pension Plan Estimated Future Contributions and Benefit Payments | ' | |||||||||||||||||||||||
Information about the expected cash flows for the U.S. and non-U.S. pension plans is as follows (in millions): | ||||||||||||||||||||||||
U.S. | Non U.S. | Total | ||||||||||||||||||||||
Expected employer contributions: | ||||||||||||||||||||||||
Fiscal 2015 | $ | 5 | $ | 5 | $ | 10 | ||||||||||||||||||
Expected benefit payments: | ||||||||||||||||||||||||
Fiscal 2015 | 77 | 28 | 105 | |||||||||||||||||||||
Fiscal 2016 | 76 | 29 | 105 | |||||||||||||||||||||
Fiscal 2017 | 74 | 30 | 104 | |||||||||||||||||||||
Fiscal 2018 | 73 | 31 | 104 | |||||||||||||||||||||
Fiscal 2019 | 72 | 32 | 104 | |||||||||||||||||||||
Fiscal 2020-2024 | 345 | 175 | 520 | |||||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of Income Loss Before Income Tax | ' | |||||||||||
The income tax provisions were calculated based upon the following components of income (loss) before income taxes (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. income (loss) | $ | 204 | $ | (59 | ) | $ | 23 | |||||
Foreign income | 111 | 110 | 114 | |||||||||
Total | $ | 315 | $ | 51 | $ | 137 | ||||||
Schedule of Components of Income Tax Expense | ' | |||||||||||
The components of the benefit (provision) for income taxes are summarized as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax benefit (expense): | ||||||||||||
U.S. | $ | (1 | ) | $ | (11 | ) | $ | 4 | ||||
Foreign | (32 | ) | (59 | ) | (47 | ) | ||||||
State and local | — | 2 | (1 | ) | ||||||||
Total current tax expense | (33 | ) | (68 | ) | (44 | ) | ||||||
Deferred tax benefit (expense): | ||||||||||||
U.S. | (1 | ) | (6 | ) | (7 | ) | ||||||
Foreign | 3 | 13 | (5 | ) | ||||||||
State and local | — | (3 | ) | (1 | ) | |||||||
Total deferred tax benefit (expense) | 2 | 4 | (13 | ) | ||||||||
Income tax expense | $ | (31 | ) | $ | (64 | ) | $ | (57 | ) | |||
Schedule of Components of Deferred Tax Asets and Liabitlies | ' | |||||||||||
Net current and non-current deferred income tax assets (liabilities) included in the consolidated balance sheet consist of the tax effects of temporary differences related to the following (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Accrued compensation and benefits | $ | 18 | $ | 18 | ||||||||
Accrued product warranties | 18 | 22 | ||||||||||
Inventory costs | 19 | 17 | ||||||||||
Receivables | 13 | 12 | ||||||||||
Accrued retiree healthcare benefits | 190 | 209 | ||||||||||
Retirement pension plans | 102 | 131 | ||||||||||
Property | 4 | 1 | ||||||||||
Loss and credit carryforwards | 678 | 733 | ||||||||||
Other | 64 | 90 | ||||||||||
Sub-total | 1,106 | 1,233 | ||||||||||
Less: Valuation allowances | (1,030 | ) | (1,166 | ) | ||||||||
Deferred income taxes - asset | $ | 76 | $ | 67 | ||||||||
Taxes on undistributed income | $ | (46 | ) | $ | (32 | ) | ||||||
Intangible assets | (88 | ) | (89 | ) | ||||||||
Debt basis difference | (12 | ) | (16 | ) | ||||||||
Deferred income taxes - liability | $ | (146 | ) | $ | (137 | ) | ||||||
Net deferred income tax liabilities | $ | (70 | ) | $ | (70 | ) | ||||||
Net Current and Non-Current Deferred Income Tax Assets Liabilities | ' | |||||||||||
Net current and non-current deferred income tax assets (liabilities) are included in the consolidated balance sheet as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Other current assets (see Note 9) | $ | 21 | $ | 23 | ||||||||
Other current liabilities | (3 | ) | (6 | ) | ||||||||
Net current deferred income taxes — asset | 18 | 17 | ||||||||||
Other assets (see Note 11) | 15 | 13 | ||||||||||
Other liabilities (see Note 14) | (103 | ) | (100 | ) | ||||||||
Net non-current deferred income taxes — liability | $ | (88 | ) | $ | (87 | ) | ||||||
Reconciliation of Income Tax Benefit Provision at the U.S Statotory Rate Total Benefit Provision for Income Taxes | ' | |||||||||||
The company’s provision for income taxes was different from the provision for income taxes calculated at the U.S. statutory rate for the reasons set forth below (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expense for income taxes at statutory tax rate of 35% | $ | (110 | ) | $ | (18 | ) | $ | (48 | ) | |||
State and local income taxes | — | 1 | (2 | ) | ||||||||
Foreign income taxed at rates other than 35% | 13 | 3 | 7 | |||||||||
Joint venture equity income | 5 | 6 | 13 | |||||||||
Tax effect of Suspensys JV sale | — | (16 | ) | — | ||||||||
Refunds of prior year taxes | — | — | 5 | |||||||||
Goodwill | (1 | ) | (8 | ) | (6 | ) | ||||||
Medicare Part D subsidy | — | 1 | 4 | |||||||||
U.S. tax impact on distributions from subsidiaries and joint ventures | (18 | ) | 19 | (90 | ) | |||||||
Nondeductible expenses | (10 | ) | (9 | ) | (11 | ) | ||||||
Valuation allowances | 89 | (44 | ) | 68 | ||||||||
Other | 1 | 1 | 3 | |||||||||
Income tax expense | $ | (31 | ) | $ | (64 | ) | $ | (57 | ) | |||
Summary of Income Tax Contingencies | ' | |||||||||||
A reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period is as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of the period | $ | 94 | $ | 107 | $ | 109 | ||||||
Additions to tax positions recorded during the current year | 3 | 3 | 11 | |||||||||
Additions to tax positions recorded during the prior year | — | — | — | |||||||||
Reduction to tax position recorded in prior years | (2 | ) | (6 | ) | (5 | ) | ||||||
Reductions to tax positions due to lapse of statutory limits | (7 | ) | (10 | ) | (8 | ) | ||||||
Translation, other | — | — | — | |||||||||
Balance at end of the period | $ | 88 | $ | 94 | $ | 107 | ||||||
CONTINGENCIES_Tables
CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Schedule of Environmental Loss Contingencies by Site | ' | |||||||||||
Following are the components of the Superfund and non-Superfund environmental reserves (in millions): | ||||||||||||
Superfund Sites | Non-Superfund | Total | ||||||||||
Sites | ||||||||||||
Balance at September 30, 2013 | $ | 2 | $ | 17 | $ | 19 | ||||||
Payments | (1 | ) | (5 | ) | (6 | ) | ||||||
Accruals | 1 | 5 | 6 | |||||||||
Balance at September 30, 2014 | $ | 2 | $ | 17 | $ | 19 | ||||||
___________________ | ||||||||||||
There were $2 million, $3 million, and $4 million of environmental remediation costs recognized in other operating expense in the consolidated statement of operations in fiscal years 2014, 2013 and 2012, respectively. In addition, $4 million, $5 million and $3 million of environmental remediation costs were recorded in loss from discontinued operations in the consolidated statement of operations for fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||
Maremont Asbestos [Member] | ' | |||||||||||
Loss Contingencies [Line Items] | ' | |||||||||||
Asbestos Related Reserves and Recoveries | ' | |||||||||||
Maremont’s asbestos-related reserves and corresponding asbestos-related recoveries are summarized as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Pending and future claims | $ | 73 | $ | 73 | ||||||||
Billed but unpaid claims | 3 | 1 | ||||||||||
Asbestos-related liabilities | $ | 76 | $ | 74 | ||||||||
Asbestos-related insurance recoveries | 49 | 58 | ||||||||||
Rockwell Asbestos [Member] | ' | |||||||||||
Loss Contingencies [Line Items] | ' | |||||||||||
Asbestos Related Reserves and Recoveries | ' | |||||||||||
Rockwell legacy asbestos-related reserves and corresponding asbestos-related recoveries are summarized as follows (in millions): | ||||||||||||
September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Pending and future claims | $ | 48 | $ | 39 | ||||||||
Billed but unpaid claims | 2 | 1 | ||||||||||
Asbestos-related liabilities | $ | 50 | $ | 40 | ||||||||
Asbestos-related insurance recoveries | 11 | 13 | ||||||||||
BUSINESS_SEGMENT_INFORMATION_T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ' | |||||||||||||||
Segment information is summarized as follows (in millions): | ||||||||||||||||
Commercial | Aftermarket & | Elims | Total | |||||||||||||
Truck & Industrial | Trailer | |||||||||||||||
Fiscal year 2014 Sales: | ||||||||||||||||
External Sales | $ | 2,876 | $ | 890 | $ | — | $ | 3,766 | ||||||||
Intersegment Sales | 104 | 30 | (134 | ) | — | |||||||||||
Total Sales | $ | 2,980 | $ | 920 | $ | (134 | ) | $ | 3,766 | |||||||
Fiscal year 2013 Sales: | ||||||||||||||||
External Sales | $ | 2,825 | $ | 847 | $ | — | $ | 3,672 | ||||||||
Intersegment Sales | 95 | 24 | (119 | ) | — | |||||||||||
Total Sales | $ | 2,920 | $ | 871 | $ | (119 | ) | $ | 3,672 | |||||||
Fiscal year 2012 Sales: | ||||||||||||||||
External Sales | $ | 3,508 | $ | 876 | $ | — | $ | 4,384 | ||||||||
Intersegment Sales | 105 | 30 | (135 | ) | — | |||||||||||
Total Sales | $ | 3,613 | $ | 906 | $ | (135 | ) | $ | 4,384 | |||||||
Reconciliation of Assets from Segment to Consolidated | ' | |||||||||||||||
Segment EBITDA: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial | $ | 218 | $ | 192 | $ | 270 | ||||||||||
Aftermarket & Trailer | 106 | 87 | 81 | |||||||||||||
Segment EBITDA | 324 | 279 | 351 | |||||||||||||
Unallocated legacy and corporate expense, net (1) | (10 | ) | (15 | ) | (24 | ) | ||||||||||
Interest expense, net | (130 | ) | (126 | ) | (95 | ) | ||||||||||
Provision for income taxes | (31 | ) | (64 | ) | (57 | ) | ||||||||||
Depreciation and amortization | (67 | ) | (67 | ) | (63 | ) | ||||||||||
Loss on sale of receivables | (8 | ) | (6 | ) | (9 | ) | ||||||||||
Restructuring costs | (10 | ) | (23 | ) | (39 | ) | ||||||||||
Antitrust settlement with Eaton, net of tax (2) | 208 | — | — | |||||||||||||
Specific warranty contingency, net of supplier recovery | 8 | (7 | ) | — | ||||||||||||
Pension settlement losses | — | (109 | ) | — | ||||||||||||
Gain on sale of equity investment | — | 125 | — | |||||||||||||
Gain on sale of property | — | — | 16 | |||||||||||||
Noncontrolling interests | (5 | ) | (2 | ) | (11 | ) | ||||||||||
Income (loss) from continuing operations attributable to Meritor, Inc. | $ | 279 | $ | (15 | ) | $ | 69 | |||||||||
-1 | Unallocated legacy and corporate costs, net represents items that are not directly related to the company's business segments. These costs primarily include asbestos-related charges associated with the company's year-end liability remeasurement, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability. In fiscal year 2013, unallocated legacy and corporate costs, net includes approximately $4 million of executive severance related to the company's former Chief Executive Officer. | |||||||||||||||
-2 | Adjustment associated with the company's share of the antitrust settlement with Eaton less legal expenses incurred in fiscal year 2014. | |||||||||||||||
Schedule of Segment Reporting Information Assets, by Segment | ' | |||||||||||||||
Depreciation and Amortization: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial (1) | $ | 61 | $ | 60 | $ | 58 | ||||||||||
Aftermarket & Trailer (1) | 6 | 7 | 5 | |||||||||||||
Total depreciation and amortization | $ | 67 | $ | 67 | $ | 63 | ||||||||||
Capital Expenditures: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial (1) | $ | 71 | $ | 46 | $ | 79 | ||||||||||
Aftermarket & Trailer (1) | 6 | 8 | 10 | |||||||||||||
Total capital expenditures | $ | 77 | $ | 54 | $ | 89 | ||||||||||
Segment Assets: | 2014 | 2013 | 2012 | |||||||||||||
Commercial Truck & Industrial (1) | $ | 1,755 | $ | 1,822 | $ | 1,799 | ||||||||||
Aftermarket & Trailer (1) | 458 | 485 | 470 | |||||||||||||
Total segment assets | 2,213 | 2,307 | 2,269 | |||||||||||||
Corporate(2) | 533 | 568 | ||||||||||||||
Less: Accounts receivable sold under off-balance sheet factoring programs(3) | (244 | ) | (305 | ) | ||||||||||||
Total assets | $ | 2,502 | $ | 2,570 | ||||||||||||
-1 | In fiscal year 2013, the company reorganized its management structure resulting in two reportable segments. Prior period segment financial information presented has been recast to reflect the revised reporting structure. | |||||||||||||||
-2 | Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. | |||||||||||||||
-3 | At September 30, 2014 and September 30, 2013, segment assets include $244 million and $305 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (See Note 6). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances. | |||||||||||||||
Schedule of Revenues from External Customers and Total Assets by Geographical Areas | ' | |||||||||||||||
Sales by geographic area are based on the location of the selling unit. Information on the company’s geographic areas is summarized as follows (in millions): | ||||||||||||||||
Sales by Geographic Area: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
U.S. | $ | 1,466 | $ | 1,408 | $ | 1,679 | ||||||||||
Canada | 68 | 68 | 72 | |||||||||||||
Mexico | 652 | 615 | 726 | |||||||||||||
Total North America | 2,186 | 2,091 | 2,477 | |||||||||||||
Sweden | 369 | 366 | 403 | |||||||||||||
Italy | 234 | 216 | 189 | |||||||||||||
United Kingdom | 82 | 82 | 84 | |||||||||||||
Other Europe | 111 | 108 | 198 | |||||||||||||
Total Europe | 796 | 772 | 874 | |||||||||||||
Brazil | 408 | 449 | 470 | |||||||||||||
China | 146 | 138 | 255 | |||||||||||||
India | 114 | 114 | 194 | |||||||||||||
Other Asia-Pacific | 116 | 108 | 114 | |||||||||||||
Total sales | $ | 3,766 | $ | 3,672 | $ | 4,384 | ||||||||||
Assets by Geographic Area: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
U.S. | $ | 1,067 | $ | 1,130 | ||||||||||||
Canada | 50 | 81 | ||||||||||||||
Mexico | 251 | 240 | ||||||||||||||
Total North America | 1,368 | 1,451 | ||||||||||||||
Sweden | 104 | 125 | ||||||||||||||
United Kingdom | 216 | 157 | ||||||||||||||
Italy | 81 | 86 | ||||||||||||||
Other Europe | 182 | 192 | ||||||||||||||
Total Europe | 583 | 560 | ||||||||||||||
Brazil | 272 | 297 | ||||||||||||||
China | 154 | 153 | ||||||||||||||
Other Asia-Pacific | 125 | 109 | ||||||||||||||
Total | $ | 2,502 | $ | 2,570 | ||||||||||||
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||||||
2013 Fiscal Quarters (Unaudited) | ||||||||||||||||||||
First | Second | Third | Fourth | 2013 | ||||||||||||||||
(In millions, except share related data) | ||||||||||||||||||||
Sales | $ | 884 | $ | 900 | $ | 986 | $ | 902 | $ | 3,672 | ||||||||||
Cost of sales | (802 | ) | (805 | ) | (877 | ) | (793 | ) | (3,277 | ) | ||||||||||
Gross margin | 82 | 95 | 109 | 109 | 395 | |||||||||||||||
Provision for income taxes | (11 | ) | (7 | ) | (1 | ) | (45 | ) | (64 | ) | ||||||||||
Net income | (20 | ) | (4 | ) | (39 | ) | 43 | (20 | ) | |||||||||||
Net income (loss) from continuing operations attributable to Meritor, Inc. | (15 | ) | (3 | ) | (37 | ) | 40 | (15 | ) | |||||||||||
Net income (loss) attributable to Meritor, Inc. | (21 | ) | (3 | ) | (39 | ) | 41 | (22 | ) | |||||||||||
Basic income (loss) per share from continuing operations | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.38 | ) | $ | 0.41 | $ | (0.15 | ) | ||||||
Diluted income (loss) per share from continuing operations | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.38 | ) | $ | 0.41 | $ | (0.15 | ) | ||||||
2014 Fiscal Quarters (Unaudited) | ||||||||||||||||||||
First | Second | Third | Fourth | 2014 | ||||||||||||||||
(In millions, except share related data) | ||||||||||||||||||||
Sales | $ | 900 | $ | 954 | $ | 979 | $ | 933 | $ | 3,766 | ||||||||||
Cost of sales | (795 | ) | (836 | ) | (855 | ) | (793 | ) | (3,279 | ) | ||||||||||
Gross margin | 105 | 118 | 124 | 140 | 487 | |||||||||||||||
Provision for income taxes | (11 | ) | (8 | ) | (12 | ) | — | (31 | ) | |||||||||||
Net income | 13 | 3 | 234 | 4 | 254 | |||||||||||||||
Net income from continuing operations attributable to Meritor, Inc. | 12 | 1 | 237 | 29 | 279 | |||||||||||||||
Net income attributable to Meritor, Inc. | 11 | 1 | 234 | 3 | 249 | |||||||||||||||
Basic income per share from continuing operations | $ | 0.12 | $ | 0.01 | $ | 2.43 | $ | 0.3 | $ | 2.86 | ||||||||||
Diluted income per share from continuing operations | $ | 0.12 | $ | 0.01 | $ | 2.34 | $ | 0.29 | $ | 2.81 | ||||||||||
OPERATING_CASH_FLOWS_AND_OTHER1
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Operating Cash Flow Disclosure [Abstract] | ' | |||||||||||
Schedule of Operating Cash Flows | ' | |||||||||||
Year Ended September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $ | 254 | $ | (20 | ) | $ | 63 | |||||
Less: Loss from discontinued operations, net of tax | (30 | ) | (7 | ) | (17 | ) | ||||||
Income (loss) from continuing operations | 284 | (13 | ) | 80 | ||||||||
Adjustments to income (loss) from continuing operations to arrive at cash provided by (used for) operating activities: | ||||||||||||
Depreciation and amortization | 67 | 67 | 63 | |||||||||
Deferred income tax expense (benefit) | (2 | ) | (4 | ) | 13 | |||||||
Restructuring costs | 10 | 23 | 39 | |||||||||
Loss on debt extinguishment | 31 | 24 | — | |||||||||
Equity in earnings of ZF Meritor | (190 | ) | — | — | ||||||||
Equity in earnings of other affiliates | (38 | ) | (42 | ) | (52 | ) | ||||||
Stock compensation expense | 8 | 5 | 6 | |||||||||
Provision for doubtful accounts | — | 3 | 2 | |||||||||
Pension and retiree medical expense | 25 | 151 | 53 | |||||||||
Gain on sale of equity investment | — | (125 | ) | — | ||||||||
Gain on sale of property | — | — | (16 | ) | ||||||||
Dividends received from ZF Meritor | 190 | — | — | |||||||||
Dividends received from other equity method investments | 36 | 30 | 47 | |||||||||
Pension and retiree medical contributions | (177 | ) | (153 | ) | (140 | ) | ||||||
Restructuring payments | (10 | ) | (23 | ) | (22 | ) | ||||||
Changes in off-balance sheet receivable securitization and factoring programs | (46 | ) | 43 | (24 | ) | |||||||
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations: | ||||||||||||
Receivables | 34 | (87 | ) | 150 | ||||||||
Inventories | (9 | ) | 18 | 11 | ||||||||
Accounts payable | (5 | ) | (31 | ) | (118 | ) | ||||||
Other current assets and liabilities | 19 | 37 | (20 | ) | ||||||||
Other assets and liabilities | — | (1 | ) | 24 | ||||||||
Operating cash flows provided by (used by) continuing operations | 227 | (78 | ) | 96 | ||||||||
Operating cash flows used for discontinued operations | (12 | ) | (18 | ) | (19 | ) | ||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 215 | $ | (96 | ) | $ | 77 | |||||
Schedule of Supplemental Financial Information | ' | |||||||||||
September 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance sheet data: | ||||||||||||
Allowance for doubtful accounts | $ | 6 | $ | 9 | $ | 7 | ||||||
Statement of operations data: | ||||||||||||
Maintenance and repairs expense | 59 | 61 | 44 | |||||||||
Research, development and engineering expense | 71 | 71 | 73 | |||||||||
Depreciation expense | 62 | 61 | 59 | |||||||||
Rental expense | 16 | 25 | 20 | |||||||||
Interest income | 2 | 2 | 2 | |||||||||
Interest expense | (132 | ) | (128 | ) | (97 | ) | ||||||
Statement of cash flows data: | ||||||||||||
Interest payments | 84 | 77 | 83 | |||||||||
Income tax payments, net of refunds | 26 | 63 | 51 | |||||||||
Non-cash investing activities - capital asset additions from capital leases | 5 | 22 | 19 | |||||||||
SUPPLEMENTAL_PARENT_AND_GUARAN1
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Supplemental Guarantor Condensed Consolidating Financial Statements [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, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Elims | Consolidated | ||||||||||||||||
Sales | ||||||||||||||||||||
External | $ | — | $ | 1,409 | $ | 2,263 | $ | — | $ | 3,672 | ||||||||||
Subsidiaries | — | 136 | 56 | (192 | ) | — | ||||||||||||||
Total sales | — | 1,545 | 2,319 | (192 | ) | 3,672 | ||||||||||||||
Cost of sales | (54 | ) | (1,339 | ) | (2,076 | ) | 192 | (3,277 | ) | |||||||||||
GROSS MARGIN | (54 | ) | 206 | 243 | — | 395 | ||||||||||||||
Selling, general and administrative | (72 | ) | (87 | ) | (94 | ) | — | (253 | ) | |||||||||||
Pension Settlement losses | (73 | ) | — | (36 | ) | — | (109 | ) | ||||||||||||
Restructuring | (3 | ) | (8 | ) | (12 | ) | — | (23 | ) | |||||||||||
Other operating expense, net | (2 | ) | (1 | ) | — | — | (3 | ) | ||||||||||||
OPERATING INCOME (LOSS) | (204 | ) | 110 | 101 | — | 7 | ||||||||||||||
Other income (loss), net | 39 | 21 | (57 | ) | — | 3 | ||||||||||||||
Gain on sale of equity investment | — | 60 | 65 | — | 125 | |||||||||||||||
Equity in earnings of affiliates | — | 24 | 18 | — | 42 | |||||||||||||||
Interest income (expense), net | (154 | ) | 34 | (6 | ) | — | (126 | ) | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (319 | ) | 249 | 121 | — | 51 | ||||||||||||||
Provision for income taxes | (1 | ) | (17 | ) | (46 | ) | — | (64 | ) | |||||||||||
Equity income from continuing operations of subsidiaries | 305 | 57 | — | (362 | ) | — | ||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | (15 | ) | 289 | 75 | (362 | ) | (13 | ) | ||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (7 | ) | $ | (8 | ) | $ | (237 | ) | $ | 245 | $ | (7 | ) | |||||||
NET INCOME (LOSS) | (22 | ) | 281 | (162 | ) | (117 | ) | (20 | ) | |||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | |||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. | $ | (22 | ) | $ | 281 | $ | (164 | ) | $ | (117 | ) | $ | (22 | ) | ||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Sales | ||||||||||||||||||||
External | $ | — | $ | 1,467 | $ | 2,299 | $ | — | $ | 3,766 | ||||||||||
Subsidiaries | — | 142 | 62 | (204 | ) | — | ||||||||||||||
Total sales | — | 1,609 | 2,361 | (204 | ) | 3,766 | ||||||||||||||
Cost of sales | (56 | ) | (1,343 | ) | (2,084 | ) | 204 | (3,279 | ) | |||||||||||
GROSS MARGIN | (56 | ) | 266 | 277 | — | 487 | ||||||||||||||
Selling, general and administrative | (65 | ) | (102 | ) | (91 | ) | — | (258 | ) | |||||||||||
Restructuring costs | — | (1 | ) | (9 | ) | — | (10 | ) | ||||||||||||
Other operating expense, net | (1 | ) | (1 | ) | — | — | (2 | ) | ||||||||||||
OPERATING INCOME (LOSS) | (122 | ) | 162 | 177 | — | 217 | ||||||||||||||
Other income (expense), net | 35 | 23 | (58 | ) | — | — | ||||||||||||||
Equity in earnings of ZF Meritor | — | 190 | — | — | 190 | |||||||||||||||
Equity in earnings of affiliates | — | 30 | 8 | — | 38 | |||||||||||||||
Interest income (expense), net | (159 | ) | 35 | (6 | ) | — | (130 | ) | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (246 | ) | 440 | 121 | — | 315 | ||||||||||||||
Provision for income taxes | — | (1 | ) | (30 | ) | — | (31 | ) | ||||||||||||
Equity income from continuing operations of subsidiaries | 525 | 71 | — | (596 | ) | — | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 279 | 510 | 91 | (596 | ) | 284 | ||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (30 | ) | $ | (31 | ) | $ | (12 | ) | $ | 43 | $ | (30 | ) | |||||||
NET INCOME | 249 | 479 | 79 | (553 | ) | 254 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (5 | ) | — | (5 | ) | |||||||||||||
NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 249 | $ | 479 | $ | 74 | $ | (553 | ) | $ | 249 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Sales | ||||||||||||||||||||
External | $ | — | $ | 1,679 | $ | 2,705 | $ | — | $ | 4,384 | ||||||||||
Subsidiaries | — | 149 | 71 | (220 | ) | — | ||||||||||||||
Total sales | — | 1,828 | 2,776 | (220 | ) | 4,384 | ||||||||||||||
Cost of sales | (50 | ) | (1,579 | ) | (2,493 | ) | 220 | (3,902 | ) | |||||||||||
GROSS MARGIN | (50 | ) | 249 | 283 | — | 482 | ||||||||||||||
Selling, general and administrative | (75 | ) | (102 | ) | (105 | ) | — | (282 | ) | |||||||||||
Restructuring costs | — | — | (39 | ) | — | (39 | ) | |||||||||||||
Gain on sale of property | — | — | 16 | — | 16 | |||||||||||||||
Other operating income (expense), net | (2 | ) | — | (2 | ) | — | (4 | ) | ||||||||||||
OPERATING INCOME (LOSS) | (127 | ) | 147 | 153 | — | 173 | ||||||||||||||
Other income (expense), net | 42 | 27 | (62 | ) | — | 7 | ||||||||||||||
Equity in earnings of affiliates | — | 34 | 18 | — | 52 | |||||||||||||||
Interest income (expense), net | (121 | ) | 22 | 4 | — | (95 | ) | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (206 | ) | 230 | 113 | — | 137 | ||||||||||||||
Provision for income taxes | — | (5 | ) | (52 | ) | — | (57 | ) | ||||||||||||
Equity income from continuing operations of subsidiaries | 275 | 35 | — | (310 | ) | — | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 69 | 260 | 61 | (310 | ) | 80 | ||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | (17 | ) | (5 | ) | (1 | ) | 6 | (17 | ) | |||||||||||
NET INCOME | 52 | 255 | 60 | (304 | ) | 63 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (11 | ) | — | (11 | ) | |||||||||||||
NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 52 | $ | 255 | $ | 49 | $ | (304 | ) | $ | 52 | |||||||||
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, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Net income (loss) | $ | (22 | ) | $ | 281 | $ | (162 | ) | $ | (117 | ) | $ | (20 | ) | ||||||
Other comprehensive income (loss) | 181 | 13 | (12 | ) | (1 | ) | 181 | |||||||||||||
Total comprehensive income (loss) | 159 | 294 | (174 | ) | (118 | ) | 161 | |||||||||||||
Less: Comprehensive income attributable to | — | — | (2 | ) | — | (2 | ) | |||||||||||||
noncontrolling interests | ||||||||||||||||||||
Comprehensive income (loss) attributable to Meritor, Inc. | $ | 159 | $ | 294 | $ | (176 | ) | $ | (118 | ) | $ | 159 | ||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Net income | $ | 52 | $ | 255 | $ | 60 | $ | (304 | ) | $ | 63 | |||||||||
Other comprehensive loss | (86 | ) | (41 | ) | (1 | ) | 41 | (87 | ) | |||||||||||
Total comprehensive income (loss) | (34 | ) | 214 | 59 | (263 | ) | (24 | ) | ||||||||||||
Less: Comprehensive income attributable to | — | — | (10 | ) | — | (10 | ) | |||||||||||||
noncontrolling interests | ||||||||||||||||||||
Comprehensive income (loss) attributable to Meritor, Inc. | $ | (34 | ) | $ | 214 | $ | 49 | $ | (263 | ) | $ | (34 | ) | |||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
Net income | $ | 249 | $ | 479 | $ | 79 | $ | (553 | ) | $ | 254 | |||||||||
Other comprehensive income (loss) | (15 | ) | (54 | ) | 25 | 29 | (15 | ) | ||||||||||||
Total comprehensive income | 234 | 425 | 104 | (524 | ) | 239 | ||||||||||||||
Less: Comprehensive income attributable to | — | — | (5 | ) | — | (5 | ) | |||||||||||||
noncontrolling interests | ||||||||||||||||||||
Comprehensive income attributable to Meritor, Inc. | $ | 234 | $ | 425 | $ | 99 | $ | (524 | ) | $ | 234 | |||||||||
Schedule of Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 71 | $ | 5 | $ | 171 | $ | — | $ | 247 | ||||||||||
Receivables, trade and other, net | 1 | 45 | 564 | — | 610 | |||||||||||||||
Inventories | — | 151 | 228 | — | 379 | |||||||||||||||
Other current assets | 9 | 18 | 29 | — | 56 | |||||||||||||||
TOTAL CURRENT ASSETS | 81 | 219 | 992 | — | 1,292 | |||||||||||||||
NET PROPERTY | 13 | 158 | 253 | — | 424 | |||||||||||||||
GOODWILL | — | 277 | 154 | — | 431 | |||||||||||||||
OTHER ASSETS | 75 | 128 | 152 | — | 355 | |||||||||||||||
INVESTMENTS IN SUBSIDIARIES | 2,185 | 267 | — | (2,452 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 2,354 | $ | 1,049 | $ | 1,551 | $ | (2,452 | ) | $ | 2,502 | |||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Short-term debt | $ | 1 | $ | 3 | $ | 3 | $ | — | $ | 7 | ||||||||||
Accounts and notes payable | 46 | 230 | 404 | — | 680 | |||||||||||||||
Other current liabilities | 97 | 87 | 167 | — | 351 | |||||||||||||||
TOTAL CURRENT LIABILITIES | 144 | 320 | 574 | — | 1,038 | |||||||||||||||
LONG-TERM DEBT | 916 | 10 | 39 | — | 965 | |||||||||||||||
RETIREMENT BENEFITS | 656 | — | 119 | — | 775 | |||||||||||||||
INTERCOMPANY PAYABLE (RECEIVABLE) | 1,198 | (1,736 | ) | 538 | — | — | ||||||||||||||
OTHER LIABILITIES | 52 | 208 | 49 | — | 309 | |||||||||||||||
EQUITY (DEFICIT) ATTRIBUTABLE TO | (612 | ) | 2,247 | 205 | (2,452 | ) | (612 | ) | ||||||||||||
MERITOR, INC. | ||||||||||||||||||||
NONCONTROLLING INTERESTS | — | — | 27 | — | 27 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | 2,354 | $ | 1,049 | $ | 1,551 | $ | (2,452 | ) | $ | 2,502 | |||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 144 | $ | 6 | $ | 168 | $ | — | $ | 318 | ||||||||||
Receivables, trade and other, net | 1 | 24 | 571 | — | 596 | |||||||||||||||
Inventories | 164 | 250 | — | 414 | ||||||||||||||||
Other current assets | 4 | 17 | 35 | — | 56 | |||||||||||||||
TOTAL CURRENT ASSETS | 149 | 211 | 1,024 | — | 1,384 | |||||||||||||||
NET PROPERTY | 10 | 145 | 262 | — | 417 | |||||||||||||||
GOODWILL | — | 277 | 157 | — | 434 | |||||||||||||||
OTHER ASSETS | 77 | 134 | 124 | — | 335 | |||||||||||||||
INVESTMENTS IN SUBSIDIARIES | 1,718 | 109 | — | (1,827 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 1,954 | $ | 876 | $ | 1,567 | $ | (1,827 | ) | $ | 2,570 | |||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Short-term debt | $ | 5 | $ | 7 | $ | 1 | $ | — | $ | 13 | ||||||||||
Accounts and notes payable | 51 | 199 | 444 | — | 694 | |||||||||||||||
Other current liabilities | 95 | 76 | 168 | — | 339 | |||||||||||||||
TOTAL CURRENT LIABILITIES | 151 | 282 | 613 | — | 1,046 | |||||||||||||||
LONG-TERM DEBT | 1,088 | 8 | 29 | — | 1,125 | |||||||||||||||
RETIREMENT BENEFITS | 775 | — | 111 | — | 886 | |||||||||||||||
INTERCOMPANY PAYABLE (RECEIVABLE) | 723 | (1,412 | ) | 689 | — | — | ||||||||||||||
OTHER LIABILITIES | 67 | 204 | 64 | — | 335 | |||||||||||||||
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | (850 | ) | 1,794 | 33 | (1,827 | ) | (850 | ) | ||||||||||||
NONCONTROLLING INTERESTS | — | — | 28 | — | 28 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY(DEFICIT) | $ | 1,954 | $ | 876 | $ | 1,567 | $ | (1,827 | ) | $ | 2,570 | |||||||||
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, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 245 | 34 | (64 | ) | $ | — | $ | 215 | |||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | (4 | ) | (37 | ) | (36 | ) | — | (77 | ) | |||||||||||
Net investing cash flows provided by discontinued operations | — | 4 | 3 | — | 7 | |||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | (4 | ) | (33 | ) | (33 | ) | — | (70 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from debt issuances | 225 | — | — | — | 225 | |||||||||||||||
Repayment of notes and term loan | (439 | ) | — | — | — | (439 | ) | |||||||||||||
Other financing cash flows | — | (2 | ) | 14 | — | 12 | ||||||||||||||
Debt issuance costs | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Intercompany advances | (90 | ) | — | 90 | — | — | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (314 | ) | (2 | ) | 104 | — | (212 | ) | ||||||||||||
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — | — | (4 | ) | — | (4 | ) | |||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (73 | ) | (1 | ) | 3 | — | (71 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 144 | 6 | 168 | — | 318 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 71 | $ | 5 | $ | 171 | $ | — | $ | 247 | ||||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 34 | $ | (63 | ) | $ | (67 | ) | $ | — | $ | (96 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | (3 | ) | (26 | ) | (25 | ) | — | (54 | ) | |||||||||||
Proceeds from sale of equity investment | — | 87 | 95 | — | 182 | |||||||||||||||
Other investing activities | 2 | 1 | — | — | 3 | |||||||||||||||
Net investing cash flows provided by discontinued operations | — | 3 | 3 | — | 6 | |||||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | (1 | ) | 65 | 73 | — | 137 | ||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from debt issuance | 500 | — | — | — | 500 | |||||||||||||||
Repayment of notes and term loan | (475 | ) | — | — | — | (475 | ) | |||||||||||||
Debt issuance costs | (12 | ) | — | — | — | (12 | ) | |||||||||||||
Other financing cash flows | — | 1 | 10 | — | 11 | |||||||||||||||
Intercompany advances | 7 | — | (7 | ) | — | — | ||||||||||||||
CASH PROVIDED BY FINANCING ACTIVITIES | 20 | 1 | 3 | — | 24 | |||||||||||||||
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — | — | (4 | ) | — | (4 | ) | |||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 53 | 3 | 5 | — | 61 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 91 | 3 | 163 | — | 257 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 144 | $ | 6 | $ | 168 | $ | — | $ | 318 | ||||||||||
MERITOR, INC. | ||||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Fiscal Year Ended September 30, 2012 | ||||||||||||||||||||
Parent | Guarantors | Non- | Elims | Consolidated | ||||||||||||||||
Guarantors | ||||||||||||||||||||
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | (13 | ) | $ | 31 | $ | 59 | $ | — | $ | 77 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | (3 | ) | (33 | ) | (53 | ) | — | (89 | ) | |||||||||||
Proceeds from sale of property | — | — | 18 | — | 18 | |||||||||||||||
Other investing activities | — | 1 | 2 | — | 3 | |||||||||||||||
Net investing cash flows provided by discontinued operations | — | — | 28 | — | 28 | |||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | (3 | ) | (32 | ) | (5 | ) | — | (40 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from debt issuance | 100 | — | — | — | 100 | |||||||||||||||
Repayment of notes and term loan | (86 | ) | — | — | — | (86 | ) | |||||||||||||
Debt issuance costs | (12 | ) | — | — | — | (12 | ) | |||||||||||||
Intercompany advances | 13 | — | (13 | ) | — | — | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 15 | — | (13 | ) | — | 2 | ||||||||||||||
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — | — | 1 | — | 1 | |||||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (1 | ) | (1 | ) | 42 | — | 40 | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 92 | 4 | 121 | — | 217 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 91 | $ | 3 | $ | 163 | $ | — | $ | 257 | ||||||||||
Basis of Presentation |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Basic average common shares outstanding | 97.5 | 97.1 | 95.9 |
Impact of stock options | 0.1 | 0 | 0 |
Impact of restricted shares, performance shares and share units | 1.6 | 0 | 1.3 |
Diluted average common shares outstanding | 99.2 | 97.1 | 97.2 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 02, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 07, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock and Restricted Stock Units [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Sales [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||
Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | Executive Officer [Member] | customer | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Trade Accounts Receivable [Member] | Trade Accounts Receivable [Member] | Trade Accounts Receivable [Member] | Trade Accounts Receivable [Member] | ||||||
Minimum [Member] | Maximum [Member] | Performance Objective One [Member] | Performance Objective Two [Member] | Performance Objective Three [Member] | customer | Top Ten Customers [Member] | Top Ten Customers [Member] | Top Three Customers [Member] | Top Three Customers [Member] | customer | customer | Top Three Customers [Member] | Top Three Customers [Member] | |||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of significant customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 10 | ' | ' | ' | ' | 3 | 3 | ' | ' |
Concentration risk from significant customers, percentage | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76.00% | 71.00% | 57.00% | 49.00% | ' | ' | 21.00% | 21.00% |
Number of shares issuable per performance share unit | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price (usd per share) | ' | ' | ' | ' | ' | $7.97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance period (in years) | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance-based vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for grant (in shares) | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation costs recognized | ' | ' | ' | ' | ' | ' | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Number of Shares, Contingently Issuable | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | ' | 300,000 | 900,000 | 700,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' | ||
Sales | $29 | $29 | $36 | ||
Operating losses, net (primarily Mascot) | -8 | -3 | 0 | ||
Net gain (loss) on sales of businesses | -23 | 0 | -1 | ||
Charge for contingency and indemnity obligation (see Note 22) | 0 | 0 | -10 | ||
Restructuring costs | 0 | -3 | [1] | -1 | [1] |
Environmental remediation charges (see Note 22) | -4 | -5 | -3 | ||
Other, net | -2 | -1 | -5 | ||
Income (loss) before income taxes | -37 | -12 | -20 | ||
Benefit for income taxes | 7 | 5 | 3 | ||
Loss from discontinued operations attributable to Meritor, Inc. | ($30) | ($7) | ($17) | ||
[1] | Charges to discontinued operations are included in discontinued operations in the consolidated statement of operations. Amounts for prior periods have been recast for discontinued operations. |
DISCONTINUED_OPERATIONS_Detail1
DISCONTINUED OPERATIONS (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2011 | Jun. 24, 2009 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Remanufacturing Consolidation [Member] | Hourly Positions [Member] | Hourly Positions Transferred [Member] | Mascot [Member] | Mascot [Member] | Mascot [Member] | Mascot [Member] | Body Systems [Member] | Body Systems [Member] | Body Systems [Member] | Body Systems [Member] | MSSC [Member] | MSSC [Member] | MSSC [Member] | EU Trailer [Member] | ||||||||||
Aftermarket and Trailer Segment [Member] | Remanufacturing Consolidation [Member] | Remanufacturing Consolidation [Member] | Promissory Notes [Member] | |||||||||||||||||||||
Aftermarket and Trailer Segment [Member] | Aftermarket and Trailer Segment [Member] | |||||||||||||||||||||||
position | position | |||||||||||||||||||||||
Discontinued operations assets | $8 | ' | ' | ' | ' | ' | $8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations liabilities | 21 | ' | ' | ' | ' | ' | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss on sales of businesses | ' | ' | ' | ' | ' | ' | 23 | 0 | 1 | ' | ' | ' | 23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | 29 | 29 | 36 | ' | ' | ' | ' | 29 | 29 | 34 | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges to continuing operations | 7 | 2 | 1 | 12 | 11 | 3 | 10 | 23 | 39 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' |
Cash to be received in addition to purchase consideration, held at the time of divestiture of business, Before Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' |
Receivable for cash, held at the time of divestiture of business, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 28 | ' | ' | ' | ' | ' |
Receivable expected to be recognized for cash held at the time of divestiture of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Ownership before transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57.00% | ' | ' | ' |
Exposure under Indemnity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 11 | ' |
Expense related to specific warranty matter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Nov. 12, 2012 | Sep. 30, 2014 | Sep. 30, 2013 |
segment | segment | ||
Goodwill [Line Items] | ' | ' | ' |
Number of reportable segments | 2 | 2 | 2 |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | ' | $434 | $433 |
Segment reorganization | ' | ' | 0 |
Foreign currency translation | ' | -3 | 1 |
Goodwill, ending balance | ' | 431 | 434 |
Commercial Truck & Industrial [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Number of reporting units | ' | 2 | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | ' | 262 | 0 |
Segment reorganization | ' | ' | 262 |
Foreign currency translation | ' | -1 | 0 |
Goodwill, ending balance | ' | 261 | 262 |
Commercial Truck & Industrial [Member] | Defense Reporting Unit [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, ending balance | ' | 20 | ' |
Aftermarket & Trailer [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Number of reporting units | ' | 1 | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | ' | 172 | 171 |
Segment reorganization | ' | ' | 0 |
Foreign currency translation | ' | -2 | 1 |
Goodwill, ending balance | ' | 170 | 172 |
Commercial Truck [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | ' | 0 | 153 |
Segment reorganization | ' | ' | -153 |
Foreign currency translation | ' | 0 | 0 |
Goodwill, ending balance | ' | 0 | 0 |
Industrial [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning balance | ' | 0 | 109 |
Segment reorganization | ' | ' | -109 |
Foreign currency translation | ' | 0 | 0 |
Goodwill, ending balance | ' | $0 | $0 |
RESTRUCTURING_COSTS_Details
RESTRUCTURING COSTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring reserve, period start | ' | ' | $12 | ' | ' | $15 | $12 | $15 | $19 | ||
Charges to continuing operations | 7 | 2 | 1 | 12 | 11 | 3 | 10 | 23 | 39 | ||
Charges to discontinued operations, net of reversals | ' | ' | ' | ' | ' | ' | 0 | 3 | [1] | 1 | [1] |
Asset write-offs | ' | ' | ' | ' | ' | ' | ' | -1 | -19 | ||
Cash payments b continuing operations | ' | ' | ' | ' | ' | ' | -10 | -23 | -22 | ||
Cash payments b discontinued operations | ' | ' | ' | ' | ' | ' | ' | -3 | [1] | -3 | |
Other | ' | ' | ' | ' | ' | ' | -1 | -2 | ' | ||
Restructuring reserve, period end | 11 | ' | ' | ' | ' | ' | 11 | 12 | 15 | ||
Less: non-current restructuring reserves | -2 | ' | ' | ' | ' | ' | -2 | -3 | ' | ||
Restructuring reserves b current | 9 | ' | ' | ' | ' | ' | 9 | 9 | ' | ||
Employee Termination Benefits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring reserve, period start | ' | ' | 12 | ' | ' | 15 | 12 | 15 | 19 | ||
Charges to continuing operations | ' | ' | ' | ' | ' | ' | 10 | 18 | 18 | ||
Charges to discontinued operations, net of reversals | ' | ' | ' | ' | ' | ' | ' | 3 | [1] | 0 | [1] |
Asset write-offs | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||
Cash payments b continuing operations | ' | ' | ' | ' | ' | ' | -10 | -19 | -20 | ||
Cash payments b discontinued operations | ' | ' | ' | ' | ' | ' | ' | -3 | [1] | -2 | |
Other | ' | ' | ' | ' | ' | ' | -1 | -2 | ' | ||
Restructuring reserve, period end | 11 | ' | ' | ' | ' | ' | 11 | 12 | 15 | ||
Less: non-current restructuring reserves | -2 | ' | ' | ' | ' | ' | -2 | ' | ' | ||
Restructuring reserves b current | 9 | ' | ' | ' | ' | ' | 9 | ' | ' | ||
Asset Impairment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring reserve, period start | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | ||
Charges to continuing operations | ' | ' | ' | ' | ' | ' | 0 | 1 | 19 | ||
Charges to discontinued operations, net of reversals | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] |
Asset write-offs | ' | ' | ' | ' | ' | ' | ' | -1 | -19 | ||
Cash payments b continuing operations | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||
Cash payments b discontinued operations | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | |
Other | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ||
Restructuring reserve, period end | 0 | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||
Less: non-current restructuring reserves | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ||
Restructuring reserves b current | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ||
Plant Shutdown & Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring reserve, period start | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | ||
Charges to continuing operations | ' | ' | ' | ' | ' | ' | 0 | 4 | 2 | ||
Charges to discontinued operations, net of reversals | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 1 | [1] |
Asset write-offs | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ||
Cash payments b continuing operations | ' | ' | ' | ' | ' | ' | 0 | -4 | -2 | ||
Cash payments b discontinued operations | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | -1 | |
Other | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ||
Restructuring reserve, period end | 0 | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||
Less: non-current restructuring reserves | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ||
Restructuring reserves b current | $0 | ' | ' | ' | ' | ' | $0 | ' | ' | ||
[1] | Charges to discontinued operations are included in discontinued operations in the consolidated statement of operations. Amounts for prior periods have been recast for discontinued operations. |
RESTRUCTURING_COSTS_Details_1
RESTRUCTURING COSTS (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
South America labor reduction | ' | ' | ' | ' | ' | ' | $7 | ' | ' |
Performance Plus actions | ' | ' | ' | ' | ' | ' | ' | ' | 24 |
Fiscal Year 2012 European Action | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Variable Labor Reductions | ' | ' | ' | ' | ' | ' | ' | 5 | 5 |
Other | ' | ' | ' | ' | ' | ' | 3 | ' | 3 |
Segment Reorganization and Asia Pacific Realignment | ' | ' | ' | ' | ' | ' | ' | 16 | ' |
M2016 footprint actions | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Total restructuring costs | 7 | 2 | 1 | 12 | 11 | 3 | 10 | 23 | 39 |
Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
South America labor reduction | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
Performance Plus actions | ' | ' | ' | ' | ' | ' | ' | ' | 24 |
Fiscal Year 2012 European Action | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Variable Labor Reductions | ' | ' | ' | ' | ' | ' | ' | 5 | 5 |
Other | ' | ' | ' | ' | ' | ' | 1 | ' | 0 |
Segment Reorganization and Asia Pacific Realignment | ' | ' | ' | ' | ' | ' | ' | 10 | ' |
M2016 footprint actions | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Total restructuring costs | ' | ' | ' | ' | ' | ' | 8 | 17 | 36 |
Aftermarket & Trailer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
South America labor reduction | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Performance Plus actions | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Fiscal Year 2012 European Action | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Variable Labor Reductions | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Other | ' | ' | ' | ' | ' | ' | 1 | ' | 2 |
Segment Reorganization and Asia Pacific Realignment | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
M2016 footprint actions | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Total restructuring costs | ' | ' | ' | ' | ' | ' | 1 | 3 | 2 |
Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
South America labor reduction | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Performance Plus actions | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Fiscal Year 2012 European Action | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Variable Labor Reductions | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Other | ' | ' | ' | ' | ' | ' | 1 | ' | 1 |
Segment Reorganization and Asia Pacific Realignment | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
M2016 footprint actions | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Total restructuring costs | ' | ' | ' | ' | ' | ' | $1 | $3 | $1 |
RESTRUCTURING_COSTS_Details_Te
RESTRUCTURING COSTS (Details Textuals) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Nov. 12, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
segment | segment | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | $11 | ' | ' | ' | ' | ' | $11 | $12 | $15 | $19 |
Restructuring costs | ' | 7 | 2 | 1 | 12 | 11 | 3 | 10 | 23 | 39 | ' |
Number of reportable segments | 2 | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' |
Restructuring costs and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 19 | ' |
Employee Termination Benefits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | 11 | ' | ' | ' | ' | ' | 11 | 12 | 15 | 19 |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | 10 | 18 | 18 | ' |
Restructuring costs and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | 8 | 17 | 36 | ' |
Aftermarket & Trailer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | 1 | 3 | 2 | ' |
Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | 1 | 3 | 1 | ' |
South America Labor Reductions [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
South America Labor Reductions [Member] | Hourly Positions [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
No. of Positions expected to be eliminated through Performance Plus Program restructuring actions in North America and Europe | ' | ' | ' | ' | ' | ' | ' | 190 | ' | ' | ' |
South America Labor Reductions [Member] | Salaried Position [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
No. of Positions expected to be eliminated through Performance Plus Program restructuring actions in North America and Europe | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' |
Variable Labor Reductions [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred to date | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' |
Variable Labor Reductions [Member] | Hourly Positions [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | ' | 600 | ' | ' |
Variable Labor Reductions [Member] | Salaried Position [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | ' | 120 | ' | ' |
Segment Reorganization and Asia-Pacific Realignment [Member] | Commercial Truck & Industrial [Member] | Employee Severance Charges and Other Exit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Segment Reorganization and Asia-Pacific Realignment [Member] | Commercial Truck & Industrial [Member] | Lease Termination [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Segment Reorganization and Asia-Pacific Realignment [Member] | Aftermarket & Trailer [Member] | Employee Severance Charges and Other Exit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Segment Reorganization and Asia-Pacific Realignment [Member] | Corporate [Member] | Employee Severance Charges and Other Exit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Segment Reorganization and Asia-Pacific Realignment [Member] | Hourly Positions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' |
Segment Reorganization and Asia-Pacific Realignment [Member] | Salaried Position [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | ' | 200 | ' | ' |
M2016 Footprint Actions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected restructuring period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
M2016 Footprint Actions [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred to date | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Expected remaining cost for restructuring under Performance Plus Program | ' | 2 | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
M2016 Footprint Actions [Member] | Hourly Positions [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | 74 | ' | ' | ' |
M2016 Footprint Actions [Member] | Salaried Position [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' | ' |
Performance Plus Program [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs under Performance Plus Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 186 | ' |
Cumulative restructuring costs under Performance Plus Program for discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93 | ' |
Performance Plus Program [Member] | Asset Impairment Charges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs under Performance Plus Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41 | ' |
Performance Plus Program [Member] | Employee Termination Benefits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs under Performance Plus Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117 | ' |
Performance Plus Program [Member] | Pension Termination Benefits [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs under Performance Plus Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' |
Performance Plus Program [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 16 | ' |
Restructuring costs and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' |
Performance Plus Program [Member] | Commercial Truck & Industrial [Member] | Asset Impairment Charges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' |
Performance Plus Program [Member] | St Priest [Member] | Employee Severance Charges and Other Exit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Performance Plus Program [Member] | Commercial Truck, Performance Plus [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs under Performance Plus Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82 | ' |
Performance Plus Program [Member] | Corporate Locations and Aftermarket and Trailer Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs under Performance Plus Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' |
Performance Plus Program [Member] | Salaried Position [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | 2,800 | ' | ' | ' |
European Action [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7 | ' |
ACCOUNTS_RECEIVABLE_FACTORING_1
ACCOUNTS RECEIVABLE FACTORING AND SECURITIZATION (Details) | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 15, 2014 | |
USD ($) | USD ($) | USD ($) | Sweden Factoring Facility [Member] | Sweden Factoring Facility [Member] | Sweden Factoring Facility [Member] | Sweden Factoring Facility [Member] | U.S Factoring Facility [Member] | U.S Factoring Facility [Member] | U.S Factoring Facility [Member] | U.S Factoring Facility [Member] | United Kingdom Factoring Facility [Member] | United Kingdom Factoring Facility [Member] | United Kingdom Factoring Facility [Member] | United Kingdom Factoring Facility [Member] | Italy Factoring Facility [Member] | Italy Factoring Facility [Member] | Italy Factoring Facility [Member] | Italy Factoring Facility [Member] | Brazil Factoring Facility [Member] | Brazil Factoring Facility [Member] | Other Factoring Facility [Member] | Other Factoring Facility [Member] | U.S. Securitization Financing Facility [Member] | U.S. Securitization Financing Facility [Member] | Subsequent Event [Member] | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | BRL | USD ($) | USD ($) | USD ($) | USD ($) | U.S. Securitization Financing Facility [Member] | ||||
Accounts Receivable Factoring and Securitization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Limit For Sale Of Eligible Trade Receivables | ' | ' | ' | $191,000,000 | € 150,000,000 | ' | ' | $83,000,000 | € 65,000,000 | ' | ' | $32,000,000 | € 25,000,000 | ' | ' | $38,000,000 | € 30,000,000 | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' |
Utilization Of Accounts Receivable Factoring Facility Under Arrangement | ' | ' | ' | 127,000,000 | 99,000,000 | 199,000,000 | 148,000,000 | 81,000,000 | 64,000,000 | 65,000,000 | 48,000,000 | 7,000,000 | 6,000,000 | 9,000,000 | 7,000,000 | 10,000,000 | 8,000,000 | 14,000,000 | 10,000,000 | ' | ' | 19,000,000 | 18,000,000 | ' | ' | ' |
Costs Associated With Off Balance Sheet Factoring Arrangements | 8,000,000 | 6,000,000 | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Limit For Securitization Financing Arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' |
Required Ratio of Total Priority Debt to EBITDA Through Period Ended | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25 |
Outstanding Balance Under Accounts Receivable Securitization Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | ' |
GAIN_ON_SALE_OF_PROPERTY_OTHER1
GAIN ON SALE OF PROPERTY, OTHER OPERATING EXPENSE, NET AND OTHER INCOME, NET (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Gain on sale of property | ' | $0 | $0 | $16 |
Gain on investments | $3 | ' | ' | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $146 | $184 |
Work in process | 36 | 32 |
Raw materials, parts and supplies | 197 | 198 |
Total | $379 | $414 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Other Current Assets Disclosure [Abstract] | ' | ' |
Current deferred income tax assets (see Note 21) | $21 | $23 |
Asbestos-related recoveries (see Note 22) | 15 | 12 |
Deposits and collateral | 4 | 4 |
Prepaid and other | 16 | 17 |
Other current assets | $56 | $56 |
NET_PROPERTY_Details
NET PROPERTY (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, gross | $1,397 | $1,389 |
Less accumulated depreciation | -973 | -972 |
Net property | 424 | 417 |
Land and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, gross | 34 | 35 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, gross | 236 | 239 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, gross | 906 | 915 |
Company-owned Tooling [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, gross | 155 | 152 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, gross | $66 | $48 |
NET_PROPERTY_Details_Textuals
NET PROPERTY (Details Textuals) | 12 Months Ended |
Sep. 30, 2014 | |
Minimum [Member] | Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of property (in years) | '10 years |
Minimum [Member] | Machinery and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of property (in years) | '3 years |
Maximum [Member] | Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of property (in years) | '50 years |
Maximum [Member] | Machinery and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of property (in years) | '20 years |
Maximum [Member] | Company-owned Tooling [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of property (in years) | '3 years |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Other Assets, Noncurrent [Abstract] | ' | ' |
Investments in non-consolidated joint ventures (see Note 12) | $106 | $102 |
Asbestos-related recoveries (see Note 22) | 45 | 59 |
Unamortized debt issuance costs (see Note 15) | 30 | 32 |
Capitalized software costs, net | 25 | 28 |
Non-current deferred income tax assets (see Note 21) | 15 | 13 |
Assets for uncertain tax positions (see Note 21) | 5 | 5 |
Prepaid pension costs (see Note 20) | 104 | 55 |
Other | 25 | 41 |
Other assets | $355 | $335 |
INVESTMENTS_IN_NONCONSOLIDATED2
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Details) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 100.00% | ' | ' | |||
Meritor WABCO Vehicle Control Systems [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 50.00% | 50.00% | 50.00% | |||
Master Sistemas Automotivos Limitada [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 49.00% | 49.00% | 49.00% | |||
Suspensys Sistemas Automotivos Ltda. [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 0.00% | [1] | 0.00% | [1] | 24.00% | [1] |
Sistemas Automotrices De Mexico S.A. De C.V. [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 50.00% | 50.00% | 50.00% | |||
Ege Fren Sanayii Ve Ticaret A.S. [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 49.00% | 49.00% | 49.00% | |||
Automotive Axles Limited [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 36.00% | 36.00% | 36.00% | |||
ZF Meritor LLC [Member] | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Non-consolidated joint ventures and related direct ownership interest | 50.00% | 50.00% | 50.00% | |||
[1] | Total direct and indirect ownership interest in fiscal year 2012 of 50 percent. |
INVESTMENTS_IN_NONCONSOLIDATED3
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Investments in non-consolidated joint ventures | $106 | $102 |
Commercial Truck & Industrial [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Investments in non-consolidated joint ventures | 106 | 102 |
Aftermarket & Trailer [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Investments in non-consolidated joint ventures | $0 | $0 |
INVESTMENTS_IN_NONCONSOLIDATED4
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity in earnings of affiliates | $38 | $42 | $52 |
Commercial Truck & Industrial [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity in earnings of affiliates | 38 | 36 | 45 |
Aftermarket & Trailer [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity in earnings of affiliates | $0 | $6 | $7 |
INVESTMENTS_IN_NONCONSOLIDATED5
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ' | ' |
Current assets | $441 | $382 |
Non-current assets | 152 | 150 |
Total assets | 593 | 532 |
Equity Method Investment, Summarized Financial Information, Liabilities [Abstract] | ' | ' |
Current liabilities | 262 | 219 |
Non-current liabilities | 127 | 118 |
Total liabilities | $389 | $337 |
INVESTMENTS_IN_NONCONSOLIDATED6
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ' | ' | ' |
Sales | $1,268 | $1,552 | $1,787 |
Gross profit | 167 | 201 | 215 |
Net income | $458 | $96 | $123 |
INVESTMENTS_IN_NONCONSOLIDATED7
INVESTMENTS IN NON-CONSOLIDATED JOINT VENTURES (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2014 | Jun. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jul. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Meritor, Inc.[Member] | Meritor, Inc.[Member] | Meritor, Inc.[Member] | Antitrust Lawsuit [Member] | Antitrust Lawsuit [Member] | Antitrust Lawsuit [Member] | Antitrust Lawsuit [Member] | Antitrust Lawsuit [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Automotive Axles Limited [Member] | Automotive Axles Limited [Member] | ||||||||||||
ZF Meritor LLC [Member] | ZF Meritor LLC [Member] | Meritor, Inc.[Member] | Meritor, Inc.[Member] | Meritor, Inc.[Member] | Pre-closing Cash Dividend [Member] | |||||||||||||||||||||
Equity in earnings of ZF Meritor [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Direct and indirect ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | ' | ' | ' |
Litigation settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500 | $210 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' | 210 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 3 | 234 | 1 | 11 | 41 | -39 | -3 | -21 | 249 | -22 | 52 | 249 | -22 | 52 | ' | ' | 209 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 42 | 52 | ' | 0 | 0 | ' | ' | ' | 190 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Settlement, Reimbursement Of Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' |
Purchase price for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 195 | ' | ' | ' | ' | ' | ' |
Cash from sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190 | ' | ' | ' | 4 | ' | ' |
Lease abatements included in proceeds from sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' |
Gain on sale of ownership in joint venture, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' | ' |
Gain on sale of ownership in joint venture, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92 | 92 | ' | ' | ' | ' | ' |
Dividends received from the company's non-consolidated joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 30 | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to non-consolidated joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 11 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales excluded from non-consolidated joint ventures through intercompany eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 141 | 151 | 165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases from non-consolidated joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 760 | 885 | 973 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease and services payments from non-consolidated joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 8 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from non-consolidated joint ventures | 46 | ' | ' | ' | 38 | ' | ' | ' | 46 | 38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due to non-consolidated joint ventures | 101 | ' | ' | ' | 94 | ' | ' | ' | 101 | 94 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59 | 18 |
Maximum exposure to loss in non-consolidated joint venture | $43 | ' | ' | ' | $35 | ' | ' | ' | $43 | $35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OTHER_CURRENT_LIABILITIES_Deta
OTHER CURRENT LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Other Current Liabilities Disclosure [Abstract] | ' | ' | ' |
Compensation and benefits | $146 | $141 | ' |
Income taxes | 8 | 8 | ' |
Taxes other than income taxes | 50 | 47 | ' |
Accrued interest | 15 | 16 | ' |
Product warranties | 27 | 20 | 16 |
Restructuring (see Note 5) | 9 | 9 | ' |
Asbestos-related liabilities (see Note 22) | 17 | 18 | ' |
Indemnity obligations (see Note 22) | 11 | 12 | ' |
Other | 68 | 68 | ' |
Other current liabilities | $351 | $339 | ' |
OTHER_CURRENT_LIABILITIES_Deta1
OTHER CURRENT LIABILITIES (Details 1) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Other Liabilities, Current [Roll Forward] | ' | ' | ' | |||
Total product warranties - beginning of year | $57 | $44 | $48 | |||
Accruals for product warranties | 22 | [1] | 31 | [1] | 22 | [1] |
Payments | -22 | -20 | -18 | |||
Total product warranties - end of year | 51 | 57 | 44 | |||
Less: Non-current product warranties (see Note 14) | -24 | -37 | -28 | |||
Product warranties | 27 | 20 | 16 | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | -6 | 2 | -8 | |||
Potential Product Performance Issue [Member] | ' | ' | ' | |||
Other Liabilities, Current [Roll Forward] | ' | ' | ' | |||
Accruals for product warranties | ($8) | $12 | ' | |||
[1] | Includes an accrual of $12 million for a specific warranty contingency related to a non-safety, product performance issue recognized during fiscal year 2013. Of the $12 million, $8 million was reversed in fiscal year 2014 as the company moved from a full recall campaign to a fix-as-find approach (see Note 22). |
OTHER_LIABILITIES_Details
OTHER LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Other Liabilities Disclosure [Abstract] | ' | ' | ' |
Asbestos-related liabilities (see Note 22) | $105 | $96 | ' |
Restructuring (see Note 5) | 2 | 3 | ' |
Non-current deferred income tax liabilities (see Note 21) | 103 | 100 | ' |
Liabilities for uncertain tax positions (see Note 21) | 14 | 17 | ' |
Product warranties (see Note 13) | 24 | 37 | 28 |
Environmental (see Note 22) | 7 | 11 | ' |
Indemnity obligations (see Note 22) | 17 | 26 | ' |
Other | 37 | 45 | ' |
Other liabilities | $309 | $335 | ' |
LONGTERM_DEBT_Summary_of_Debt_
LONG-TERM DEBT (Summary of Debt) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 15, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||||||||
In Millions, unless otherwise specified | 8.125% Notes Due 2015 [Member] | 10.625% Notes Due 2018 [Member] | 10.625% Notes Due 2018 [Member] | 10.625% Notes Due 2018 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 7.875% convertible notes due 2026 [Member] | 7.875% convertible notes due 2026 [Member] | 6.75% notes due 2021 [Member] | 6.25% Percent Notes Due 2024 [Member] | Lines of credit and other borrowings [Member] | Lines of credit and other borrowings [Member] | Unamortized Gain On Interest Rate Swap Termination [Member] | Unamortized Gain On Interest Rate Swap Termination [Member] | Unamortized Discount On Convertible Notes [Member] | Unamortized Discount On Convertible Notes [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Term Loan [Member] | Term Loan [Member] | ||||||||||||
8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.25% Percent Notes Due 2024 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 7.875% convertible notes due 2026 [Member] | 7.875% convertible notes due 2026 [Member] | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Long-term debt, total | ' | ' | ' | $0 | ' | $247 | ' | $162 | [1] | ' | ' | ' | ' | $31 | $18 | $0 | $2 | ($31) | ($43) | $0 | $84 | $275 | [2] | $275 | [2] | ' | $225 | [2] | $0 | [2] | ' | $55 | [1] | $55 | [1] | $300 | ' | $200 | [1] | $229 | [1] | $227 | [1] | $0 | $45 |
Long-term Debt and Capital Lease Obligations | 972 | 1,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Capital lease obligation | 26 | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Less: current maturities | -7 | -13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Long-term debt | 965 | 1,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Stated interest rate | ' | ' | 8.13% | 10.63% | ' | ' | 4.63% | 4.00% | 7.88% | ' | 6.75% | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.75% | ' | ' | ' | 4.63% | ' | ' | 4.00% | ' | ' | ' | ' | ' | ||||||||||
Unamortized discount on convertible notes | $52 | $66 | ' | $0 | $6 | $3 | ' | ' | $21 | $23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31 | ' | ' | ' | ' | ' | $21 | ' | ' | ' | ||||||||||
[1] | The 4.625 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | ||||||||||||||||||||||||||||||||||||||||||||
[2] | The 6.75 percent,and the 6.25 percent notes contain a call option, which allows for early redemption. |
LONGTERM_DEBT_Revolving_Credit
LONG-TERM DEBT (Revolving Credit Facility) (Details) (Revolving Credit Facility [Member], USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Feb. 13, 2014 | Sep. 30, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | ' | $499,000,000 | ' |
Actual Ratio Of Total Priority Debt To Ebitda At Period End | 0.36 | ' | ' |
Commitment fee percentage | 0.50% | ' | ' |
Amount outstanding | 0 | ' | 0 |
Amount outstanding | 0 | ' | 0 |
Amended Revolving Credit Facility [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum Collateral Test Value | 1 | ' | ' |
Value Of Company Assets Collateralized | 615,000,000 | ' | ' |
Maximum limit on issuance of letters of credit | 100,000,000 | ' | ' |
Revolving Credit Facility - Amended - Matures In February 2019 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | ' | 410,000,000 | ' |
Revolving Credit Facility - Amended - Matures In April 2017 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | ' | $89,000,000 | ' |
Triggering Event One [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Required Ratio of Total Priority Debt to EBITDA Through Period Ended | 2.25 | ' | ' |
LIBOR [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread on variable rate | 3.50% | ' | ' |
Prime Rate [Member] | Overnight Revolving Credit Loans [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Basis spread on variable rate | 2.50% | ' | ' |
LONGTERM_DEBT_Term_Loan_Detail
LONG-TERM DEBT (Term Loan) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 13, 2014 | Apr. 23, 2012 |
Term Loan [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | $100 |
Repurchased amount of debt | ' | ' | ' | 41 | ' |
Repayments of debt | 439 | 475 | 86 | ' | ' |
Repurchase of convertible notes | $31 | $24 | $0 | $2 | ' |
LONGTERM_DEBT_Debt_Securities_
LONG-TERM DEBT (Debt Securities) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2012 | Sep. 30, 2014 | Jun. 05, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 13, 2014 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 05, 2014 | Aug. 05, 2014 | Sep. 20, 2014 | Aug. 20, 2014 | Jun. 05, 2013 | Sep. 20, 2014 | Mar. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 13, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | 31-May-14 | Mar. 31, 2014 | Sep. 30, 2013 | 31-May-14 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||||||
6.25% Percent Notes Due 2024 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 10.625% Notes Due 2018 [Member] | 10.625% Notes Due 2018 [Member] | 10.625% Notes Due 2018 [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Debt Instrument, Redemption Period, Equity Clawback [Member] | U.S. Securitization Financing Facility [Member] | U.S. Securitization Financing Facility [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | ||||||||||
Change in Control Redemption [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 10.625% Notes Due 2018 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.25% Percent Notes Due 2024 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 10.625% Notes Due 2018 [Member] | Redemption period one [Member] | Redemption period one [Member] | Redemption period two [Member] | Redemption period two [Member] | Redemption period two [Member] | Redemption period two [Member] | Redemption period three [Member] | Redemption period three [Member] | Redemption period four [Member] | Redemption period four [Member] | Debt Instrument, Redemption Period, Equity Clawback [Member] | Change in Control Redemption [Member] | |||||||||||||||||||||||
6.25% Percent Notes Due 2024 [Member] | 6.75% notes due 2021 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.75% notes due 2021 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.75% notes due 2021 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.75% notes due 2021 [Member] | 6.25% Percent Notes Due 2024 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | 6.75% notes due 2021 [Member] | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Value of aggregate debt and equity securities included in registration statement | $750,000,000 | ' | ' | $750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Corporate Securities, Amount Available For Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | 275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt term | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Issuance Price Percentage of the Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Proceeds from debt issuances | 225,000,000 | 500,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | 225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Repurchased amount of debt | ' | ' | ' | ' | ' | 167,000,000 | 84,000,000 | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | 38,000,000 | ' | ' | ' | 84,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,000,000 | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Redemption price percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 103.13% | 105.06% | 102.08% | 103.38% | 101.04% | 101.69% | 100.00% | 100.00% | 106.75% | 101.00% | |||||
Percentage of principal amount that may be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of principal amount redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Maximum Limit For Securitization Financing Arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Stated interest rate | ' | ' | ' | ' | 6.25% | ' | 8.13% | 4.00% | ' | ' | 6.75% | ' | ' | 10.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Derivative, Gain (Loss) On Unamortized Premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | 162,000,000 | [1] | ' | ' | ' | ' | ' | 0 | 247,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | [2] | ' | 0 | [2] | 0 | ' | ' | 84,000,000 | ' | ' | 275,000,000 | [2] | 275,000,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of convertible notes | 31,000,000 | 24,000,000 | 0 | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | -5,000,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt Instrument, Redemption Price, Premium Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt Instrument, Redemption, Premium On Principal, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | 7.00% | 14.00% | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of principal amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Written notice period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Redemption price as a percentage of the principal amount to be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Outstanding balance under accounts receivable securitization program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Unamortized discount | 52,000,000 | 66,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 0 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt Instrument, Redemption Premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
[1] | The 4.625 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The 6.75 percent,and the 6.25 percent notes contain a call option, which allows for early redemption. |
LONGTERM_DEBT_Schedule_of_Conv
LONG-TERM DEBT (Schedule of Convertible Notes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Principal amount of convertible notes | $467 | $505 | ' |
Unamortized discount on convertible notes | -52 | -66 | ' |
Net carrying value | 415 | 439 | ' |
Repurchase of convertible notes | 31 | 24 | 0 |
Convertible Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Unamortized discount on convertible notes | -31 | ' | ' |
Contractual interest coupon | 30 | 29 | 22 |
Amortization of debt discount | 9 | 8 | 10 |
Repurchase of convertible notes | 5 | 5 | 0 |
Total | $44 | $42 | $32 |
LONGTERM_DEBT_Convertible_Note
LONG-TERM DEBT (Convertible Notes) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Aug. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||||
7.875% convertible notes due 2026 [Member] | 7.875% convertible notes due 2026 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Triggering Event One [Member] | Triggering Event One [Member] | Triggering Event Two [Member] | ||||||||||
Convertible Notes 2006 Member] | Convertible Notes 2007 [Member] | Convertible Notes 2013 [Member] | D | 7.875% convertible notes due 2026 [Member] | 7.875% convertible notes due 2026 [Member] | 7.875% convertible notes due 2026 [Member] | Adoption Of Guidance For Debt With Conversion and Other Options [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.625 Percent Convertible Notes Due 2026 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 4.0 Percent Convertible Notes Due 2027 [Member] | 0.625 Percent Convertible Notes Due 2026 [Member] | Convertible Notes 2006 Member] | Convertible Notes 2007 [Member] | Convertible Notes [Member] | Convertible Notes [Member] | Convertible Notes [Member] | ||||||||||||||||||
D | Convertible Notes 2013 [Member] | Convertible Notes 2013 [Member] | |||||||||||||||||||||||||||||||||||
D | D | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Initial principal amount per note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Face principal amount per note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt Instrument, Convertible, Effective Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.70% | 10.90% | ' | ' | ' | ' | ' | 10.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Proceeds from Convertible Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Equivalent Shares Of Common Stock Per 1000 Principal Amount Of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83.3333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.6667 | 37.4111 | ' | ' | ' | ||||||
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.98 | $26.73 | ' | ' | ' | ||||||
Total amortization period for debt discount (in years): | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '12 years | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Remaining amortization period for debt discount (in years): | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '5 years | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Maximum Number Of Shares Of Common Stock Convertible Notes Are Convertible Into | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | 6,000,000 | ' | ' | ' | ||||||
Debt Instrument, Convertible, Threshold Trading Days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 20 | 5 | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | '30 days | '5 days | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97.00% | 120.00% | 97.00% | ||||||
Repurchased amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Long-term debt | ' | ' | ' | ' | ' | ' | 162,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,000,000 | [1] | 227,000,000 | [1] | ' | 300,000,000 | 55,000,000 | [1] | 55,000,000 | [1] | ' | ' | 200,000,000 | [1] | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | 7.88% | ' | 4.63% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.63% | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt Instrument, Repurchase Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||||
Convertible note repurchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 236,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Repurchase of convertible notes | 31,000,000 | 24,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 5,000,000 | 0 | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair value of debt component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 216,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair value of equity component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Recognition Of Estimated Equity Component Ofconvertible Notes Before Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Allocation Of Unamortized Debt Issuance Costs To Equity Component Reduction Of Paid In Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Recognition Of Discount On Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Deferred Tax Liabilities Conversion Of Equity Component Of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Convertible Notes Redemption Option Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Convertible Notes Repurchase Option Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | 73,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Unamortized discount on convertible notes | $52,000,000 | $66,000,000 | ' | $21,000,000 | $23,000,000 | ' | ' | ' | ' | ' | ' | ' | $31,000,000 | ' | ' | ' | $21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | The 4.625 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. |
LONGTERM_DEBT_Debt_Maturities_
LONG-TERM DEBT (Debt Maturities) (Details) (USD $) | Sep. 30, 2014 | Mar. 15, 2014 | Sep. 30, 2013 | ||
In Millions, unless otherwise specified | |||||
Debt Instrument [Line Items] | ' | ' | ' | ||
Unamortized discount on convertible notes | $52 | ' | $66 | ||
10.625% Notes Due 2018 [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Unamortized discount on convertible notes | 0 | 6 | 3 | ||
Long-term debt by fiscal year maturity [Abstract] | ' | ' | ' | ||
Long-term debt, total | 0 | ' | 247 | ||
7.875% convertible notes due 2026 [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Unamortized discount on convertible notes | 21 | ' | 23 | ||
Debt maturities at Principal Amount [Member] | ' | ' | ' | ||
Long-term debt by fiscal year maturity [Abstract] | ' | ' | ' | ||
Long-term debt, total | 1,024 | [1] | ' | ' | |
2015 | 7 | [1] | ' | ' | |
2016 | 22 | [1] | ' | ' | |
2017 | 17 | [1] | ' | ' | |
2018 | 4 | [1] | ' | ' | |
2019 | 2 | [1] | ' | ' | |
Thereafter | 972 | [1],[2] | ' | ' | |
Convertible Notes [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Unamortized discount on convertible notes | 31 | ' | ' | ||
Convertible Notes [Member] | 7.875% convertible notes due 2026 [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Unamortized discount on convertible notes | 21 | ' | ' | ||
Long-term debt by fiscal year maturity [Abstract] | ' | ' | ' | ||
Long-term debt, total | $229 | [3] | ' | $227 | [3] |
[1] | Total debt excludes the unamortized discount on convertible notes of $31 million and discount of $21 million on the 7.875 percent notes due March 1, 2026. | ||||
[2] | Includes the company's 4.625 percent, 4.0 percent and 7.875 percent convertible notes, which contain a put and call feature that allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. | ||||
[3] | The 4.625 percent, 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016, 2019 and 2020, respectively. |
LONGTERM_DEBT_Capital_Leases_D
LONG-TERM DEBT (Capital Leases) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Future Minimum Payments Due by Fiscal Year Maturity | ' | ' |
Capital lease obligation, total | $35 | ' |
Capital lease obligation, 2015 | 7 | ' |
Capital lease obligation, 2016 | 7 | ' |
Capital lease obligation, 2017 | 6 | ' |
Capital lease obligation, 2018 | 4 | ' |
Capital lease obligation, 2019 | 3 | ' |
Capital lease obligation, Thereafter | 8 | ' |
Less amounts representing interest, total | -9 | ' |
Amounts representing interest, 2015 | -2 | ' |
Amounts representing interest, 2016 | -2 | ' |
Amounts representing interest, 2017 | -1 | ' |
Amounts representing interest, 2018 | -1 | ' |
Amounts representing interest, 2019 | -1 | ' |
Amounts representing interest, Thereafter | -2 | ' |
Principal on capital lease, total | 26 | ' |
Principal on capital lease, 2015 | 5 | ' |
Principal on capital lease, 2016 | 5 | ' |
Principal on capital lease, 2017 | 5 | ' |
Principal on capital lease, 2018 | 3 | ' |
Principal on capital lease, 2019 | 2 | ' |
Principal on capital lease, Thereafter | 6 | ' |
Financing Arrangements For Capital Leases [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Maximum amount of financing for progress payments for equipment under construction | 10 | ' |
Financing Arrangements For Capital Leases [Member] | Thirty-Day LIBOR [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Basis spread on variable rate | 4.75% | ' |
Capital Lease Arrangements [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Capital lease term | '60 months | ' |
Amount outstanding under capital leases | 13 | 15 |
Capital Lease Arrangements [Member] | Five-Year Swap Rate [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Basis spread on variable rate | 5.64% | ' |
Other Capital Lease Arrangements [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Amount outstanding under capital leases | $13 | $13 |
LONGTERM_DEBT_Letter_of_Credit
LONG-TERM DEBT (Letter of Credit Facility) (Details) (USD $) | Sep. 30, 2014 | Feb. 21, 2014 | Sep. 30, 2013 | Dec. 20, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Standby Letters of Credit [Member] | Standby Letters of Credit [Member] | Standby Letters of Credit [Member] | Forecasted [Member] | Other Letters of Credit Arrangements [Member] | Other Letters of Credit Arrangements [Member] | |
Standby Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum limit on issuance of letters of credit | ' | $30,000,000 | ' | $25,000,000 | ' | ' |
Amount outstanding | $25,000,000 | ' | $27,000,000 | ' | $9,000,000 | $9,000,000 |
LONGTERM_DEBT_Export_Financing
LONG-TERM DEBT (Export Financing Arrangements) (Details) (Promissory Notes [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Export financing arrangements [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 5.50% | ' |
Long-term Debt | $29 | $18 |
Other Export Financing Arrangements [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | ' | $2 |
LONGTERM_DEBT_Interest_Rate_Sw
LONG-TERM DEBT (Interest Rate Swaps) (Details) (USD $) | 1 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 05, 2013 |
Term Loan Interest Rate Swap [Member] | Unamortized Gain On Interest Rate Swap Termination [Member] | Unamortized Gain On Interest Rate Swap Termination [Member] | 8.125% Notes Due 2015 [Member] | 8.125% Notes Due 2015 [Member] | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | 8.13% | ' |
Description of Variable Rate Basis | 'LIBOR-based rate | ' | ' | ' | ' |
Derivative, Type of Interest Rate Paid on Swap | 'U.S. federal funds rate | ' | ' | ' | ' |
Long-term debt | ' | $0 | $2 | ' | ' |
Debt term | '4 years | ' | ' | ' | ' |
Gain From Acceleration Of Deferred Unamortized Interest Rate Swap | ' | 1 | ' | ' | ' |
Repurchased amount of debt | ' | ' | ' | $84 | $167 |
LONGTERM_DEBT_Operating_Leases
LONG-TERM DEBT (Operating Leases) (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Future Minimum Lease Payments Under Operating Leases | ' |
2015 | $16 |
2016 | 14 |
2017 | 13 |
2018 | 13 |
2019 | 12 |
Thereafter | $24 |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of gain recognized in AOCL (effective portion) | $3 | $0 | $3 |
Designated as Hedging Instrument [Member] | Cost of Sales [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of gain (loss) reclassified from AOCL into income (effective portion) | 1 | 1 | 3 |
Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivatives not designated as hedging instruments: Amount of gain recognized in income | $0 | $0 | $0 |
FINANCIAL_INSTRUMENTS_Details_
FINANCIAL INSTRUMENTS (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Reported Value Measurement [Member] | ' | ' |
Fair Value | ' | ' |
Cash and cash equivalents | $247 | $318 |
Short-term debt | 7 | 13 |
Long-term debt | 965 | 1,125 |
Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value | ' | ' |
Cash and cash equivalents | 247 | 318 |
Short-term debt | 7 | 13 |
Long-term debt | 1,143 | 1,266 |
Foreign Exchange Forward [Member] | Reported Value Measurement [Member] | ' | ' |
Fair Value | ' | ' |
Foreign exchange forward contracts (asset) | 2 | 0 |
Foreign exchange forward contracts (liability) | 0 | 1 |
Foreign Exchange Forward [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value | ' | ' |
Foreign exchange forward contracts (asset) | 2 | 0 |
Foreign exchange forward contracts (liability) | 0 | 1 |
Foreign Currency Option Contracts [Member] | Reported Value Measurement [Member] | ' | ' |
Fair Value | ' | ' |
Short-term foreign currency option contracts (asset) | 2 | 0 |
Long-term foreign currency option contracts (asset) | 1 | 0 |
Foreign Currency Option Contracts [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value | ' | ' |
Short-term foreign currency option contracts (asset) | 2 | 0 |
Long-term foreign currency option contracts (asset) | $1 | $0 |
FINANCIAL_INSTRUMENTS_Details_1
FINANCIAL INSTRUMENTS (Details 2) (Foreign Exchange Forward [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Foreign Exchange Forward [Member] | ' | ' |
Offsetting Derivative Asset | ' | ' |
Gross Amounts Recognized | $2 | $0 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Reported | 2 | 0 |
Offsetting Derivative Liabilities | ' | ' |
Gross Amounts Recognized | 0 | 1 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Reported | $0 | $1 |
FINANCIAL_INSTRUMENTS_Details_2
FINANCIAL INSTRUMENTS (Details 3) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Level 1 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Cash and cash equivalents | $247 |
Short-term debt | 0 |
Long-term debt | 0 |
Level 2 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Cash and cash equivalents | 0 |
Short-term debt | 0 |
Long-term debt | 1,093 |
Level 3 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Cash and cash equivalents | 0 |
Short-term debt | 7 |
Long-term debt | 50 |
Foreign Exchange Forward [Member] | Level 1 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Foreign exchange forward contracts (asset) | 0 |
Foreign Exchange Forward [Member] | Level 2 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Foreign exchange forward contracts (asset) | 2 |
Foreign Exchange Forward [Member] | Level 3 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Foreign exchange forward contracts (asset) | 0 |
Foreign Currency Option Contracts [Member] | Level 1 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Short Term foreign currency option contracts | 0 |
Long Term foreign currency option contracts | 0 |
Foreign Currency Option Contracts [Member] | Level 2 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Short Term foreign currency option contracts | 0 |
Long Term foreign currency option contracts | 0 |
Foreign Currency Option Contracts [Member] | Level 3 [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Short Term foreign currency option contracts | 2 |
Long Term foreign currency option contracts | $1 |
FINANCIAL_INSTRUMENTS_Details_3
FINANCIAL INSTRUMENTS (Details Textuals) (Designated as Hedging Instrument [Member], Cash Flow Hedging [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Notional amount of foreign exchange contracts outstanding | $47 | $75 | $113 |
SHAREOWNERS_EQUITY_Narrative_D
SHAREOWNERS' EQUITY (Narrative) (Details) (USD $) | Sep. 30, 2014 | Nov. 30, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Class of Stock [Line Items] | ' | ' |
Common stock, shares authorized | 500,000,000 | ' |
Common shares, par value | $1 | ' |
Preferred stock, shares authorized | 30,000,000 | ' |
Value of aggregate debt and equity securities included in registration statement | $750 | $750 |
Common stock reserved for issuance under Long Term Incentive Plan | 10,000,000 | ' |
Common stock shares available for future grants under long-term incentive plan | 4,800,000 | ' |
Corporate Debt Securities [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Corporate Securities, Amount Available For Issuance | $250 | ' |
Series A Junior Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Preferred stock, shares authorized | 2,000,000 | ' |
Preferred stock, shares issued | 0 | ' |
SHAREOWNERS_EQUITY_Accumulated
SHAREOWNERS' EQUITY (Accumulated Other Comprehensive Loss (AOCL)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' | ' |
Beginning balance | ($734) | ' | ' |
Other comprehensive income (loss) before reclassification | -39 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss - net of tax | 24 | ' | ' |
Net current-period other comprehensive income (loss) | -15 | 181 | -87 |
Ending balance | -749 | -734 | ' |
Foreign Currency Translation [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' | ' |
Beginning balance | 61 | ' | ' |
Other comprehensive income (loss) before reclassification | -20 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss - net of tax | 0 | ' | ' |
Net current-period other comprehensive income (loss) | -20 | ' | ' |
Ending balance | 41 | ' | ' |
Employee Benefit Related Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' | ' |
Beginning balance | -792 | ' | ' |
Other comprehensive income (loss) before reclassification | -21 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss - net of tax | 24 | ' | ' |
Net current-period other comprehensive income (loss) | 3 | ' | ' |
Ending balance | -789 | ' | ' |
Unrealized Loss, net of tax [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' | ' |
Beginning balance | -3 | ' | ' |
Other comprehensive income (loss) before reclassification | 2 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss - net of tax | 0 | ' | ' |
Net current-period other comprehensive income (loss) | 2 | ' | ' |
Ending balance | ($1) | ' | ' |
SHAREOWNERS_EQUITY_Reclassific
SHAREOWNERS' EQUITY (Reclassifications from AOCI) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ($284) | $13 | ($80) | |
Provision for income taxes | 0 | -12 | -8 | -11 | -45 | -1 | -7 | -11 | -31 | -64 | -57 | |
Net income (loss) | -4 | -234 | -3 | -13 | -43 | 39 | 4 | 20 | -254 | 20 | -63 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 24 | ' | ' | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Employee Benefit Related Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Prior service costs | ' | ' | ' | ' | ' | ' | ' | ' | -7 | [1] | ' | ' |
Actuarial losses | ' | ' | ' | ' | ' | ' | ' | ' | 46 | [1] | ' | ' |
Recognized prior service costs due to curtailment | ' | ' | ' | ' | ' | ' | ' | ' | -15 | [1] | ' | ' |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 24 | ' | ' | |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $24 | ' | ' | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 19 and 20 for additional details). |
EQUITY_BASED_COMPENSATION_Deta
EQUITY BASED COMPENSATION (Details) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2014 |
Options Outstanding [Roll Forward] | ' |
Outstanding - beginning of year (in shares) | 864 |
Cancelled or expired (in shares) | -214 |
Outstanding - end of year (in shares) | 650 |
Exercisable - end of year (in shares) | 533 |
Options Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Exercise Price - outstanding options - beginning of year | $12.27 |
Exercise Price - cancelled or expired | $18.19 |
Exercise Price - outstanding options - end of year | $10.32 |
Exercise Price - exercisable options | $10.79 |
Remaining Contractual Life (years) - outstanding | '3 years |
Remaining Contractual Life (years) - exercisable | '2 years 8 months 12 days |
Aggregate Intrinsic Value - outstanding options | $0 |
Aggregate Intrinsic Value - exercisable options | $0 |
EQUITY_BASED_COMPENSATION_Deta1
EQUITY BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Outstanding Options (in shares) | 650 |
Exercisable Options | 533 |
$8.00 to $12.00 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Lower exercise price range limit | $8 |
Upper exercise price range limit | $12 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Outstanding Options (in shares) | 350 |
Outstanding Options Remaining Contractual Life (years) | '4 years |
Outstanding Options Exercise Price | $8.22 |
Exercisable Options | 233 |
Exercisable Options Exercise Price | $8.22 |
$12.01 to $16.00 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Lower exercise price range limit | $12.01 |
Upper exercise price range limit | $16 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Outstanding Options (in shares) | 300 |
Outstanding Options Remaining Contractual Life (years) | '1 year 9 months 18 days |
Outstanding Options Exercise Price | $12.78 |
Exercisable Options | 300 |
Exercisable Options Exercise Price | $12.78 |
EQUITY_BASED_COMPENSATION_Deta2
EQUITY BASED COMPENSATION (Details 2) (Stock Options [Member], USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted-average fair value per share | $3.69 |
Risk-free interest rate | 1.70% |
Expected dividend yield | 0.00% |
Expected volatility | 60.40% |
Expected life (years) | '5 years |
EQUITY_BASED_COMPENSATION_Deta3
EQUITY BASED COMPENSATION (Details Textuals) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 07, 2013 | Sep. 30, 2014 | Dec. 01, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | Nov. 07, 2013 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | ||
Hiring Incentive Plan [Member] | Hiring Incentive Plan [Member] | Hiring Incentive Plan [Member] | Minimum [Member] | Maximum [Member] | Performance Objective One [Member] | Performance Objective Two [Member] | Performance Objective Three [Member] | ||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options expiration period | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting term | ' | '3 years | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | ' | 0 | 0 | 0 | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of award | ' | ' | ' | ' | ' | $1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requisite service period | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense recognized for share based payments | ' | 1,200,000 | ' | 0 | ' | ' | ' | 4,000,000 | 5,000,000 | 6,000,000 | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value per share | ' | ' | $3.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted in period | ' | ' | ' | ' | ' | ' | ' | 218,816 | 1,003,723 | 1,325,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value non-vested restricted shares and share units granted during period | ' | ' | ' | ' | ' | ' | ' | $9.23 | $4.43 | $6.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | 2,038,853 | ' | ' | ' | 1,634,561 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $8.27 | ' | ' | ' | ' | ' | ' | $7.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation costs related to non-vested equity compensation arrangements | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for compensation cost recognition | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' |
Share price on grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.97 | ' | ' | ' | ' | ' | ' |
Award vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 200.00% | 50.00% | 25.00% | 25.00% |
Number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,772,000 | ' | ' | ' | ' | ' | ' | ' |
RETIREMENT_MEDICAL_PLANS_Detai
RETIREMENT MEDICAL PLANS (Details) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Assumptions Used In Measurement of Retiree Medical Liability and Expense | ' | ' | ' |
Health care cost trend rate (weighted average) | 7.40% | ' | ' |
Retiree Medical Plan [Member] | ' | ' | ' |
Assumptions Used In Measurement of Retiree Medical Liability and Expense | ' | ' | ' |
Discount Rate | 4.20% | 4.80% | 3.90% |
Health care cost trend rate (weighted average) | 7.40% | 7.00% | 7.20% |
Ultimate health care trend rate | 5.00% | 5.00% | 5.00% |
Year ultimate rate is reached | '2022 | '2022 | '2023 |
RETIREMENT_MEDICAL_PLANS_Detai1
RETIREMENT MEDICAL PLANS (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan, Benefit Obligation | $1,794 | $1,708 | ' |
Retired Employees [Member] | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 465 | 495 | ' |
Employees Eligible to Retire [Member] | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 4 | 8 | ' |
Employees Not Eligible to Retire [Member] | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 8 | 8 | ' |
Retiree Medical Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | $477 | $511 | $554 |
RETIREMENT_MEDICAL_PLANS_Detai2
RETIREMENT MEDICAL PLANS (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2015 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | ||||||
APBO - beginning of year | $1,794 | $1,708 | ' | $511 | $554 | |||
Service cost | ' | ' | ' | 0 | 1 | |||
Interest cost | ' | ' | ' | 23 | 21 | |||
Participant contributions | ' | ' | ' | 2 | 3 | |||
Actuarial gain | 27 | ' | ' | -2 | -20 | |||
Foreign currency rate changes | ' | ' | ' | -1 | -1 | |||
Curtailment gain | ' | ' | -16 | -16 | -5 | |||
Benefit payments | ' | ' | ' | -40 | -42 | |||
APBO - end of year | ' | 1,708 | 477 | 477 | 511 | |||
Other | ' | ' | 2 | [1] | 2 | [1] | 2 | [1] |
Retiree medical liability | ' | ' | $479 | $479 | $513 | |||
[1] | The company recorded a $2 million reserve for retiree medical liabilities at September 30, 2014 and 2013 as its best estimate for retroactive benefits related to the previously mentioned injunction. |
RETIREMENT_MEDICAL_PLANS_Detai3
RETIREMENT MEDICAL PLANS (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Retiree Medical Liability Current And Long Term Components | ' | ' |
Long-term - included in retirement benefits | $775 | $886 |
Retiree Medical Plan [Member] | ' | ' |
Retiree Medical Liability Current And Long Term Components | ' | ' |
Current - included in compensation and benefits | 33 | 37 |
Long-term - included in retirement benefits | 446 | 476 |
Retiree medical liability | $479 | $513 |
RETIREMENT_MEDICAL_PLANS_Detai4
RETIREMENT MEDICAL PLANS (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Amount Of Retiree Medical Obligations Recorded In Accumulated Other Comprehensive Loss Net Of Tax [Abstract] | ' | ' | ' |
Deferred tax impact | ($2) | ($12) | ($2) |
Retiree Medical Plan [Member] | ' | ' | ' |
Amount Of Retiree Medical Obligations Recorded In Accumulated Other Comprehensive Loss Net Of Tax [Abstract] | ' | ' | ' |
Balance, beginning | 150 | 191 | ' |
Net actuarial gain for the year | -3 | -20 | ' |
Curtailment gain | -16 | -5 | ' |
Recognized prior service costs due to curtailment | 15 | ' | ' |
Amortization for the year | -16 | -19 | ' |
Deferred tax impact | -1 | 3 | ' |
Balance, ending | 129 | 150 | ' |
Retiree Medical Plan [Member] | Net Actuarial Loss [Member] | ' | ' | ' |
Amount Of Retiree Medical Obligations Recorded In Accumulated Other Comprehensive Loss Net Of Tax [Abstract] | ' | ' | ' |
Balance, beginning | 169 | 197 | ' |
Net actuarial gain for the year | -3 | 1 | ' |
Curtailment gain | 0 | -5 | ' |
Recognized prior service costs due to curtailment | 0 | ' | ' |
Amortization for the year | -23 | -27 | ' |
Deferred tax impact | -1 | 3 | ' |
Balance, ending | 142 | 169 | ' |
Retiree Medical Plan [Member] | Prior Service Cost (Benefit) [Member] | ' | ' | ' |
Amount Of Retiree Medical Obligations Recorded In Accumulated Other Comprehensive Loss Net Of Tax [Abstract] | ' | ' | ' |
Balance, beginning | -19 | -6 | ' |
Net actuarial gain for the year | 0 | -21 | ' |
Curtailment gain | -16 | 0 | ' |
Recognized prior service costs due to curtailment | 15 | ' | ' |
Amortization for the year | 7 | 8 | ' |
Deferred tax impact | 0 | 0 | ' |
Balance, ending | ($13) | ($19) | ' |
RETIREMENT_MEDICAL_PLANS_Detai5
RETIREMENT MEDICAL PLANS (Details 5) (Retiree Medical Plan Expense Component [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Retiree Medical Plan Expense Component [Member] | ' | ' | ' |
Service cost | $0 | $1 | $1 |
Interest cost | 23 | 21 | 24 |
Amortization of - Prior service cost (benefit) | -7 | -8 | -9 |
Actuarial losses | 23 | 27 | 26 |
Recognized prior service costs due to curtailment | -15 | 0 | 0 |
Retiree medical expense - total company | $24 | $41 | $42 |
RETIREMENT_MEDICAL_PLANS_Detai6
RETIREMENT MEDICAL PLANS (Details 6) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Retiree Medical Plan Effect Of One Percentage Point Change In Assumed Health Care Cost Trend Rates [Abstract] | ' | ' |
Effect on total service and interest cost 1% increase | $2 | $3 |
Effect on total service and interest cost 1% decrease | -2 | -2 |
Effect on APBO 1% increase | 46 | 50 |
Effect on APBO 1% decrease | ($40) | ($43) |
RETIREMENT_MEDICAL_PLANS_Detai7
RETIREMENT MEDICAL PLANS (Details 7) (Retiree Medical Plan [Member], USD $) | Sep. 30, 2014 | |
In Millions, unless otherwise specified | ||
Gross Benefit Payments [Member] | ' | |
Retiree Medical Plan Estimated Future Benefit Payments [Abstract] | ' | |
Fiscal 2015 | $38 | |
Fiscal 2016 | 39 | |
Fiscal 2017 | 39 | |
Fiscal 2018 | 40 | |
Fiscal 2019 | 40 | |
Fiscal 2020-2024 | 202 | |
EGWP Subsidy Receipts [Member] | ' | |
Retiree Medical Plan Estimated Future Benefit Payments [Abstract] | ' | |
Fiscal 2015 | 5 | [1] |
Fiscal 2016 | 6 | [1] |
Fiscal 2017 | 6 | [1] |
Fiscal 2018 | 7 | [1] |
Fiscal 2019 | 7 | [1] |
Fiscal 2020-2024 | $41 | [1] |
[1] | Consists of subsidies and rebates available under EGWP. |
RETIREMENT_MEDICAL_PLANS_Detai8
RETIREMENT MEDICAL PLANS (Details Textuals) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 26, 2014 | Sep. 26, 2014 | ||||
Retiree Medical Plan [Member] | Union Plan Amendments [Member] | Prescription Drug Benefit [Member] | Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | Retiree Medical Plan [Member] | |||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||
Liability for retroactive benefits | ' | ' | ' | ' | ' | ' | $2,000,000 | [1] | $2,000,000 | [1] | $2,000,000 | [1] | ' | ' | ' |
Face amount of employee life insurance coverage per employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750 | 15,000 | |||
Curtailment gain | ' | ' | ' | ' | ' | ' | 16,000,000 | 16,000,000 | 5,000,000 | ' | ' | ' | |||
Health care cost trend rate (weighted average) | 7.40% | ' | ' | ' | ' | ' | ' | 7.40% | 7.00% | 7.20% | ' | ' | |||
Average remaining service period of active participants | ' | ' | ' | '8 years | '3 years | '8 years | ' | ' | ' | ' | ' | ' | |||
Reduction in retiree medical expense from subsidy | ' | -9,000,000 | -12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reduction in APBO from subsidy | ' | 35,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net actuarial loss estimated to be amortized from accumulated other comprehensive loss | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
The prior service benefit estimated to be amortized from accumulated other comprehensive loss to periodic benefits cost | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Decrease in retiree medical expense | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | |||
[1] | The company recorded a $2 million reserve for retiree medical liabilities at September 30, 2014 and 2013 as its best estimate for retroactive benefits related to the previously mentioned injunction. |
RETIREMENT_PENSION_PLANS_Detai
RETIREMENT PENSION PLANS (Details) (U.S. Plans [Member]) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Discount Rate | ' | ' | 4.20% |
Assumed return on plan assets (beginning of the year) | 8.00% | 8.00% | 8.00% |
Minimum [Member] | ' | ' | ' |
Discount Rate | 4.20% | 4.75% | ' |
Maximum [Member] | ' | ' | ' |
Discount Rate | 4.30% | 4.95% | ' |
RETIREMENT_PENSION_PLANS_Detai1
RETIREMENT PENSION PLANS (Details 1) | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Foreign Pension Plans, Defined Benefit, Low end of range [Member] | ' | ' | ' | |||
Discount Rate | 1.90% | [1] | 2.40% | [1] | 2.10% | [1] |
Assumed return on plan assets (beginning of the year) | 2.25% | [1] | 2.50% | [1] | 2.50% | [1] |
Rate of compensation increase | ' | 2.00% | [2] | 2.00% | [2] | |
Foreign Pension Plans, Defined Benefit, High end of range [Member] | ' | ' | ' | |||
Discount Rate | 4.10% | [1] | 4.70% | [1] | 4.60% | [1] |
Assumed return on plan assets (beginning of the year) | 7.25% | [1] | 7.25% | [1] | 7.50% | [1] |
Rate of compensation increase | ' | 3.00% | [2] | 3.00% | [2] | |
[1] | The discount rate for the companybsB U.K. pension plan was 4.10 percent, 4.70 percent and 4.60 percent for 2014, 2013 and 2012, respectively. The assumed return on plan assets for this plan was 7.25 percent, 7.25 percent and 7.50 percent for fiscal years 2014, 2013 and 2012, respectively. | |||||
[2] | The rate of compensation increase for the company's Canadian pension plans was 3.00 percent for 2014, 2013 and 2012. The rate of compensation increase for the company's Swiss pension plans was 2.00 percent for 2014, 2013 and 2012. |
RETIREMENT_PENSION_PLANS_Detai2
RETIREMENT PENSION PLANS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
U.S. Plans [Member] | U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Total Pension Plans [Member] | Total Pension Plans [Member] | Total Pension Plans [Member] | ||||
Change in PBO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
APBO - beginning of year | ' | ' | $1,794 | $1,017 | $1,312 | $691 | $754 | $1,708 | $2,066 | ' |
Service cost | ' | ' | ' | 1 | 1 | 1 | 2 | 2 | 3 | 2 |
Interest cost | ' | ' | ' | 49 | 54 | 31 | 29 | 80 | 83 | 91 |
Actuarial gain | ' | ' | 27 | 67 | -102 | 38 | 17 | 105 | -85 | ' |
Curtailment gain | ' | ' | ' | 0 | -4 | 0 | -1 | 0 | -5 | ' |
Settlements | -178 | -68 | ' | 0 | -178 | 0 | -70 | 0 | -248 | ' |
Amendments | ' | ' | ' | -4 | 0 | 0 | 0 | -4 | 0 | ' |
Benefit payments | ' | ' | ' | -71 | -66 | -28 | -33 | -99 | -99 | ' |
Foreign currency rate changes | ' | ' | ' | 0 | 0 | 2 | -7 | 2 | -7 | ' |
APBO - end of year | 1,708 | ' | ' | 1,059 | 1,017 | 735 | 691 | 1,794 | 1,708 | 2,066 |
Change in plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets - beginning of year | ' | ' | 1,575 | 710 | 864 | 657 | 673 | 1,367 | 1,537 | ' |
Actual return on plan assets | ' | ' | ' | 94 | 3 | 69 | 53 | 163 | 56 | ' |
Employer contributions | ' | ' | ' | 99 | 66 | 38 | 49 | 137 | 115 | ' |
Settlements | -157 | -72 | ' | 0 | -157 | 0 | -74 | 0 | -231 | ' |
Benefit payments | ' | ' | ' | -71 | -66 | -28 | -33 | -99 | -99 | ' |
Foreign currency rate changes | ' | ' | ' | 0 | 0 | 7 | -11 | 7 | -11 | ' |
Fair value of assets - end of year | 1,367 | ' | ' | 832 | 710 | 743 | 657 | 1,575 | 1,367 | 1,537 |
Funded status | ' | ' | ' | ($227) | ($307) | $8 | ($34) | ($219) | ($341) | ' |
RETIREMENT_PENSION_PLANS_Detai3
RETIREMENT PENSION PLANS (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Retirement benefits-non-current | ($775) | ($886) |
U.S. Plans [Member] | ' | ' |
Non-current assets | 0 | 0 |
Current liabilities | -5 | -6 |
Retirement benefits-non-current | -222 | -301 |
Net amount recognized | -227 | -307 |
Non- U.S. Plans [Member] | ' | ' |
Non-current assets | 104 | 55 |
Current liabilities | -3 | -3 |
Retirement benefits-non-current | -93 | -86 |
Net amount recognized | 8 | -34 |
Total Pension Plans [Member] | ' | ' |
Non-current assets | 104 | 55 |
Current liabilities | -8 | -9 |
Retirement benefits-non-current | -315 | -387 |
Net amount recognized | ($219) | ($341) |
RETIREMENT_PENSION_PLANS_Detai4
RETIREMENT PENSION PLANS (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Settlements | ($178) | ($68) | ' | ' | ' |
Deferred tax impact | ' | ' | -2 | -12 | -2 |
U.S. Plans [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Settlements | ' | ' | 0 | -178 | ' |
Non- U.S. Plans [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Settlements | ' | ' | 0 | -70 | ' |
Total Pension Plans [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Settlements | ' | ' | 0 | -248 | ' |
Net Actuarial Loss [Member] | U.S. Plans [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Balance, beginning | ' | ' | 408 | 560 | ' |
Net actuarial gain for the year | ' | ' | 26 | -58 | ' |
Amortization for the year | ' | ' | -15 | -17 | ' |
Curtailment gain | ' | ' | ' | -4 | ' |
Settlements | ' | ' | ' | -73 | ' |
Deferred tax impact | ' | ' | 0 | 0 | ' |
Balance, ending | 408 | ' | 419 | 408 | ' |
Net Actuarial Loss [Member] | Non- U.S. Plans [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Balance, beginning | ' | ' | 234 | 259 | ' |
Net actuarial gain for the year | ' | ' | 16 | 13 | ' |
Amortization for the year | ' | ' | -8 | -9 | ' |
Curtailment gain | ' | ' | ' | 0 | ' |
Settlements | ' | ' | ' | -38 | ' |
Deferred tax impact | ' | ' | -1 | 9 | ' |
Balance, ending | 234 | ' | 241 | 234 | ' |
Net Actuarial Loss [Member] | Total Pension Plans [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' |
Balance, beginning | ' | ' | 642 | 819 | ' |
Net actuarial gain for the year | ' | ' | 42 | -45 | ' |
Amortization for the year | ' | ' | -23 | -26 | ' |
Curtailment gain | ' | ' | ' | -4 | ' |
Settlements | ' | ' | ' | -111 | ' |
Deferred tax impact | ' | ' | -1 | 9 | ' |
Balance, ending | $642 | ' | $660 | $642 | ' |
RETIREMENT_PENSION_PLANS_Detai5
RETIREMENT PENSION PLANS (Details 5) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
RETIREMENT BENEFITS | $775 | $886 |
Pension liability [Member] | ' | ' |
RETIREMENT BENEFITS | 315 | 387 |
Retiree medical liability b long term [Member] | ' | ' |
RETIREMENT BENEFITS | 446 | 476 |
Other [Member] | ' | ' |
RETIREMENT BENEFITS | 14 | 23 |
Total retirement benefits [Member] | ' | ' |
RETIREMENT BENEFITS | $775 | $886 |
RETIREMENT_PENSION_PLANS_Detai6
RETIREMENT PENSION PLANS (Details 6) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
PBO | $1,794 | $1,708 |
ABO | 1,793 | 1,707 |
Plan Assets | 1,575 | 1,367 |
Accumulated Benefit Obligation Exceeds Asset [Member] | ' | ' |
PBO | 1,180 | 1,116 |
ABO | 1,180 | 1,115 |
Plan Assets | 857 | 719 |
Assets Exceeds Accumulated Benefit Obligation [Member] | ' | ' |
PBO | 614 | 592 |
ABO | 613 | 592 |
Plan Assets | $718 | $648 |
RETIREMENT_PENSION_PLANS_Detai7
RETIREMENT PENSION PLANS (Details 7) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Settlement loss | $73 | $36 | $0 | $109 | $0 |
Total Pension Plans [Member] | ' | ' | ' | ' | ' |
Service cost | ' | ' | 2 | 3 | 2 |
Interest cost | ' | ' | 80 | 83 | 91 |
Assumed rate of return on plan assets | ' | ' | -104 | -112 | -105 |
Amortization of - Actuarial losses | ' | ' | 23 | 26 | 22 |
Curtailment gain | ' | ' | 0 | -1 | 0 |
Settlement loss | ' | ' | 0 | 111 | 1 |
Retiree medical expense - total company | ' | ' | $1 | $110 | $11 |
RETIREMENT_PENSION_PLANS_Detai8
RETIREMENT PENSION PLANS (Details 8) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | $1,575 | $1,367 | ' |
U.S. Plans [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 832 | 710 | 864 |
U.S. Plans [Member] | U.S. b Large cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 104 | 97 | ' |
U.S. Plans [Member] | U.S. b Small cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 25 | 29 | ' |
U.S. Plans [Member] | Emerging equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 22 | 22 | ' |
U.S. Plans [Member] | Private equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 80 | 50 | ' |
U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 77 | 81 | ' |
U.S. Plans [Member] | Partnerships equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 58 | 41 | ' |
U.S. Plans [Member] | Total equity investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 366 | 320 | ' |
U.S. Plans [Member] | U.S. fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 276 | 194 | ' |
U.S. Plans [Member] | Emerging fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 22 | 20 | ' |
U.S. Plans [Member] | International fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 11 | 9 | ' |
U.S. Plans [Member] | U.S. high yield [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 15 | 12 | ' |
U.S. Plans [Member] | Partnerships fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 18 | 19 | ' |
U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 342 | 254 | ' |
U.S. Plans [Member] | Alternatives - Partnerships [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Other investments | 123 | 124 | ' |
U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 1 | 12 | ' |
U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 832 | 710 | ' |
Non- U.S. Plans [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 743 | 657 | 673 |
Non- U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 215 | 196 | ' |
Non- U.S. Plans [Member] | Corporate bonds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 139 | 145 | ' |
Non- U.S. Plans [Member] | Other fixed income investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 205 | 137 | ' |
Non- U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 344 | 282 | ' |
Non- U.S. Plans [Member] | Real estate [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Real estate | 67 | 59 | ' |
Non- U.S. Plans [Member] | Commingled funds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Comingled funds | 9 | 9 | ' |
Non- U.S. Plans [Member] | Alternative investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Alternative investments | 61 | 56 | ' |
Non- U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 47 | 55 | ' |
Non- U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 743 | 657 | ' |
Level 1 [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' |
Level 1 [Member] | U.S. Plans [Member] | U.S. b Large cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 104 | 97 | ' |
Level 1 [Member] | U.S. Plans [Member] | U.S. b Small cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 25 | 29 | ' |
Level 1 [Member] | U.S. Plans [Member] | Emerging equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | Private equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 65 | 81 | ' |
Level 1 [Member] | U.S. Plans [Member] | Partnerships equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | Total equity investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 194 | 207 | ' |
Level 1 [Member] | U.S. Plans [Member] | U.S. fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 24 | 21 | ' |
Level 1 [Member] | U.S. Plans [Member] | Emerging fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | International fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | U.S. high yield [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | Partnerships fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 24 | 21 | ' |
Level 1 [Member] | U.S. Plans [Member] | Alternatives - Partnerships [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Other investments | 0 | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | ' | 0 | ' |
Level 1 [Member] | U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 218 | 228 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 103 | 94 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Corporate bonds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Other fixed income investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Real estate [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Real estate | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Commingled funds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Comingled funds | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Alternative investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Alternative investments | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Level 1 [Member] | Non- U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 103 | 94 | ' |
Level 2 [Member] | U.S. Plans [Member] | U.S. b Large cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | U.S. b Small cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | Emerging equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 22 | 22 | ' |
Level 2 [Member] | U.S. Plans [Member] | Private equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 12 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | Partnerships equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 57 | 41 | ' |
Level 2 [Member] | U.S. Plans [Member] | Total equity investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 91 | 63 | ' |
Level 2 [Member] | U.S. Plans [Member] | U.S. fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 252 | 173 | ' |
Level 2 [Member] | U.S. Plans [Member] | Emerging fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 22 | 20 | ' |
Level 2 [Member] | U.S. Plans [Member] | International fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | U.S. high yield [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 15 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | Partnerships fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 2 [Member] | U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 289 | 193 | ' |
Level 2 [Member] | U.S. Plans [Member] | Alternatives - Partnerships [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Other investments | 63 | 71 | ' |
Level 2 [Member] | U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 1 | 12 | ' |
Level 2 [Member] | U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 444 | 339 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 112 | 102 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Corporate bonds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 139 | 145 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Other fixed income investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 205 | 137 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 344 | 282 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Real estate [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Real estate | 0 | 0 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Commingled funds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Comingled funds | 9 | 9 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Alternative investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Alternative investments | 0 | 0 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 47 | 55 | ' |
Level 2 [Member] | Non- U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 512 | 448 | ' |
Level 3 [Member] | U.S. Plans [Member] | U.S. b Large cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | U.S. b Small cap [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | Emerging equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | Private equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 80 | 50 | ' |
Level 3 [Member] | U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | Partnerships equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 1 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | Total equity investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 81 | 50 | ' |
Level 3 [Member] | U.S. Plans [Member] | U.S. fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | Emerging fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | International fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 11 | 9 | ' |
Level 3 [Member] | U.S. Plans [Member] | U.S. high yield [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 12 | ' |
Level 3 [Member] | U.S. Plans [Member] | Partnerships fixed income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 18 | 19 | ' |
Level 3 [Member] | U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 29 | 40 | ' |
Level 3 [Member] | U.S. Plans [Member] | Alternatives - Partnerships [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Other investments | 60 | 53 | ' |
Level 3 [Member] | U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Level 3 [Member] | U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | 170 | 143 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | International equity [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Equity investments | 0 | 0 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Corporate bonds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Other fixed income investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Total Fixed Income [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Fixed income investments | 0 | 0 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Real estate [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Real estate | 67 | 59 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Commingled funds [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Comingled funds | 0 | 0 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Alternative investments [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Alternative investments | 61 | 56 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Level 3 [Member] | Non- U.S. Plans [Member] | Total assets at fair value [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Total assets at fair value | $128 | $115 | ' |
RETIREMENT_PENSION_PLANS_Detai9
RETIREMENT PENSION PLANS (Details 9) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
U.S. Plans [Member] | ' | ' |
Return on Plan Assets: Attributable to Assets Held | $94 | $3 |
Non- U.S. Plans [Member] | ' | ' |
Return on Plan Assets: Attributable to Assets Held | 69 | 53 |
Level 3 [Member] | U.S. Plans [Member] | Private equity [Member] | ' | ' |
Fair Value | 50 | 48 |
Return on Plan Assets: Attributable to Assets Held | 23 | 1 |
Purchases | 13 | 3 |
Settlements | -6 | -2 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | 80 | 50 |
Level 3 [Member] | U.S. Plans [Member] | U.S. high yield [Member] | ' | ' |
Fair Value | 12 | 10 |
Return on Plan Assets: Attributable to Assets Held | 1 | 2 |
Purchases | 2 | 0 |
Settlements | 0 | 0 |
Net Transfers Into (Out of) Level 3 | -15 | 0 |
Fair Value | 0 | 12 |
Level 3 [Member] | U.S. Plans [Member] | International fixed income [Member] | ' | ' |
Fair Value | 9 | 10 |
Return on Plan Assets: Attributable to Assets Held | 2 | -1 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | 11 | 9 |
Level 3 [Member] | U.S. Plans [Member] | Partnerships fixed income [Member] | ' | ' |
Fair Value | 19 | 13 |
Return on Plan Assets: Attributable to Assets Held | 1 | 1 |
Purchases | 2 | 9 |
Settlements | -4 | -4 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | 18 | 19 |
Level 3 [Member] | U.S. Plans [Member] | Partnerships equity [Member] | ' | ' |
Fair Value | 0 | 13 |
Return on Plan Assets: Attributable to Assets Held | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Net Transfers Into (Out of) Level 3 | 1 | -13 |
Fair Value | 1 | 0 |
Level 3 [Member] | U.S. Plans [Member] | Alternatives - Partnerships [Member] | ' | ' |
Fair Value | 53 | 49 |
Return on Plan Assets: Attributable to Assets Held | 9 | 7 |
Purchases | 0 | 0 |
Settlements | -2 | -3 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | 60 | 53 |
Level 3 [Member] | U.S. Plans [Member] | Total Level 3 fair value [Member] | ' | ' |
Fair Value | 143 | 143 |
Return on Plan Assets: Attributable to Assets Held | 36 | 10 |
Purchases | 17 | 12 |
Settlements | -12 | -9 |
Net Transfers Into (Out of) Level 3 | -14 | -13 |
Fair Value | 170 | 143 |
Level 3 [Member] | Non- U.S. Plans [Member] | Real estate [Member] | ' | ' |
Fair Value | 59 | 50 |
Return on Plan Assets: Attributable to Assets Held | 9 | 1 |
Purchases | 0 | 10 |
Settlements | -1 | -2 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | 67 | 59 |
Level 3 [Member] | Non- U.S. Plans [Member] | Alternative investments [Member] | ' | ' |
Fair Value | 56 | 64 |
Return on Plan Assets: Attributable to Assets Held | 5 | 4 |
Purchases | 0 | 0 |
Settlements | 0 | -12 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | 61 | 56 |
Level 3 [Member] | Non- U.S. Plans [Member] | Total Level 3 fair value [Member] | ' | ' |
Fair Value | 115 | 114 |
Return on Plan Assets: Attributable to Assets Held | 14 | 5 |
Purchases | 0 | 10 |
Settlements | -1 | -14 |
Net Transfers Into (Out of) Level 3 | 0 | 0 |
Fair Value | $128 | $115 |
Recovered_Sheet1
RETIREMENT PENSION PLANS (Details 10) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
U.S. Plans [Member] | ' |
Expected employer contributions: | ' |
Fiscal 2015 | $5 |
Expected benefit payments: | ' |
Fiscal 2015 | 77 |
Fiscal 2016 | 76 |
Fiscal 2017 | 74 |
Fiscal 2018 | 73 |
Fiscal 2019 | 72 |
Fiscal 2020-2024 | 345 |
Non- U.S. Plans [Member] | ' |
Expected employer contributions: | ' |
Fiscal 2015 | 5 |
Expected benefit payments: | ' |
Fiscal 2015 | 28 |
Fiscal 2016 | 29 |
Fiscal 2017 | 30 |
Fiscal 2018 | 31 |
Fiscal 2019 | 32 |
Fiscal 2020-2024 | 175 |
Total Pension Plans [Member] | ' |
Expected employer contributions: | ' |
Fiscal 2015 | 10 |
Expected benefit payments: | ' |
Fiscal 2015 | 105 |
Fiscal 2016 | 105 |
Fiscal 2017 | 104 |
Fiscal 2018 | 104 |
Fiscal 2019 | 104 |
Fiscal 2020-2024 | $520 |
Recovered_Sheet2
RETIREMENT PENSION PLANS (Details Textuals) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Jan. 02, 2008 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 02, 2008 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||||
plan | U.S. Plans [Member] | U.S. Plans [Member] | U.S. Plans [Member] | U.S. Plans [Member] | U.S. Plan - Lump Sum Actions [Member] | Significant Non U S Pension Plans [Member] | Significant Non U S Pension Plans [Member] | Significant Non U S Pension Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | U K Pension Plan [Member] | Equity Investments [Member] | Fixed Income Investments [Member] | Fixed Income Investments [Member] | Alternative Investments [Member] | Alternative Investments [Member] | Equity Securities [Member] | Real Estate [Member] | |||||||||||||
Canada [Member] | Canada [Member] | Canada [Member] | Switzerland [Member] | Switzerland [Member] | Switzerland [Member] | U.S. Plans [Member] | U.S. Plans [Member] | Non- U.S. Plans [Member] | U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | Non- U.S. Plans [Member] | |||||||||||||||||||||||||
Recognized prior service costs due to curtailment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||||
Average life of inactive plan particpants | '22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '28 | ' | ' | ' | ' | ' | ' | ' | ||||||
Number Of Employees Earning Service Defined Benefit Pension Plan | ' | ' | ' | ' | ' | ' | ' | '3800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Number of Plans Settled | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Pension settlement losses | ' | 73,000,000 | 36,000,000 | ' | 0 | 109,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Settlements, Benefit Obligation | ' | 178,000,000 | 68,000,000 | ' | ' | ' | ' | ' | 0 | 178,000,000 | ' | ' | ' | ' | ' | 0 | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Settlements | ' | 157,000,000 | 72,000,000 | ' | ' | ' | ' | ' | 0 | 157,000,000 | ' | ' | ' | ' | ' | 0 | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Lump sum distribution - maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Lump sum distribution - minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.20% | ' | 4.10% | 4.70% | 4.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Expected Return on Plan Assets | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | 8.00% | ' | 7.25% | 7.25% | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net actuarial loss (gain) for the year | ' | ' | ' | 27,000,000 | ' | ' | ' | ' | 67,000,000 | -102,000,000 | ' | ' | ' | ' | ' | 38,000,000 | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Target asset allocation, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | 30.00% | 30.00% | 10.00% | 10.00% | 15.00% | 0.00% | ||||||
Target asset allocation, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 60.00% | 30.00% | 40.00% | 40.00% | 10.00% | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined contribution savings plan expense | ' | ' | ' | ' | $14,000,000 | $13,000,000 | $14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | [1] | 3.00% | [1] | 3.00% | [1] | 2.00% | [1] | 2.00% | [1] | 2.00% | [1] | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | The rate of compensation increase for the company's Canadian pension plans was 3.00 percent for 2014, 2013 and 2012. The rate of compensation increase for the company's Swiss pension plans was 2.00 percent for 2014, 2013 and 2012. |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. income (loss) | $204 | ($59) | $23 |
Foreign income | 111 | 110 | 114 |
INCOME BEFORE INCOME TAXES | $315 | $51 | $137 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current tax benefit (expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ($1) | ($11) | $4 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -32 | -59 | -47 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2 | -1 |
Total current tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -33 | -68 | -44 |
Deferred tax benefit (expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -6 | -7 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 13 | -5 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -3 | -1 |
Total deferred tax benefit (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 4 | -13 |
Income tax expense | $0 | ($12) | ($8) | ($11) | ($45) | ($1) | ($7) | ($11) | ($31) | ($64) | ($57) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Accrued compensation and benefits | $18 | $18 |
Accrued product warranties | 18 | 22 |
Inventory costs | 19 | 17 |
Receivables | 13 | 12 |
Accrued retiree healthcare benefits | 190 | 209 |
Retirement pension plans | 102 | 131 |
Property | 4 | 1 |
Loss and credit carryforwards | 678 | 733 |
Other | 64 | 90 |
Sub-total | 1,106 | 1,233 |
Less: Valuation allowances | -1,030 | -1,166 |
Deferred income taxes - asset | 76 | 67 |
Taxes on undistributed income | -46 | -32 |
Intangible assets | -88 | -89 |
Debt basis difference | -12 | -16 |
Deferred income taxes - liability | -146 | -137 |
Net deferred income tax liabilities | ($70) | ($70) |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Other current assets (see Note 9) | $21 | $23 |
Other current liabilities | -3 | -6 |
Net current deferred income taxes - asset | 18 | 17 |
Other assets (see Note 11) | 15 | 13 |
Other liabilities (see Note 14) | -103 | -100 |
Net non-current deferred income taxes - liability | ($88) | ($87) |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory tax rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Benefit (expense) for income taxes at statutory tax rate of 35% | ' | ' | ' | ' | ' | ' | ' | ' | ($110) | ($18) | ($48) |
State and local income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | -2 |
Taxes on foreign income | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 3 | 7 |
Joint venture equity income | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 6 | 13 |
Judicial decisions | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -16 | 0 |
Refunds of prior year taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 5 |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -8 | -6 |
Medicare Part D subsidy | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | 4 |
U.S. tax impact on distributions from subsidiaries and joint ventures | ' | ' | ' | ' | ' | ' | ' | -90 | -18 | 19 | -90 |
Nondeductible expenses | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -9 | -11 |
Valuation allowances | ' | ' | ' | ' | ' | ' | ' | ' | 89 | -44 | 68 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 3 |
Income tax expense | $0 | $12 | $8 | $11 | $45 | $1 | $7 | $11 | $31 | $64 | $57 |
INCOME_TAXES_Details_5
INCOME TAXES (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance at beginning of the period | $94 | $107 | $109 |
Additions to tax positions recorded during the current year | 3 | 3 | 11 |
Additions to tax positions recorded during the prior year | 0 | 0 | 0 |
Reduction to tax position recorded in prior years | -2 | -6 | -5 |
Reductions to tax positions due to lapse of statutory limits | -7 | -10 | -8 |
Translation, other | 0 | 0 | 0 |
Balance at end of the period | $88 | $94 | $107 |
INCOME_TAXES_Details_Textuals
INCOME TAXES (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Forecasted [Member] | Forecasted [Member] | Deferred Tax Assets Operating Loss Carryforwards Subject To Expiration During 2014 To 2018 [Member] | Deferred Tax Assets Operating Loss Carryforwards Subject To Expiration During 2019 To 2028 [Member] | Deferred Tax Assets Operating Loss Carryforwards Subject To Expiration During 2029 To 2033 [Member] | Deferred Tax Assets Operating Loss Carryforwards Not Subject To Expiration [Member] | ||||||
Minimum [Member] | Maximum [Member] | ||||||||||
Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary, ownership percentage | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, operating loss and tax credit carryforwards | ' | $678 | $733 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, operating loss and tax credit carryforwards, subject to expiration | ' | ' | ' | ' | ' | ' | ' | 26 | 326 | 28 | 298 |
Valuation allowance on operating loss and tax credit carryforwards | ' | 1,030 | 1,166 | ' | ' | ' | ' | 22 | 323 | 24 | 298 |
Undistributed earnings in foreign subsidiaries on which income taxes have not been provided | ' | 666 | 661 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash benefit related to certain judical decisions, reinvestment assertions | ' | 210 | 42 | ' | ' | ' | ' | ' | ' | ' | ' |
Non cash charge related to foreign distributions, legal entity restructuring action charge | 90 | 18 | -19 | 90 | ' | ' | ' | ' | ' | ' | ' |
Gross unrecognized tax benefits | ' | 88 | 94 | 107 | 109 | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on uncertain tax positions accrued | ' | 3 | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Penalties on uncertain tax positions accrued | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on income tax expense related to interest | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on income tax expense related to panelties | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Reductions to tax positions due to lapse of statutory limits | ' | $7 | $10 | $8 | ' | $2 | $4 | ' | ' | ' | ' |
CONTINGENCIES_Details
CONTINGENCIES (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Accrual for Environmental Loss Contingencies [Roll Forward] | ' |
Environmental Contingencies, beginning balance | $19 |
Payments | -6 |
Change in cost estimates | 6 |
Environmental Contingencies, ending balance | 19 |
Superfund Sites [Member] | ' |
Accrual for Environmental Loss Contingencies [Roll Forward] | ' |
Environmental Contingencies, beginning balance | 2 |
Payments | -1 |
Change in cost estimates | 1 |
Environmental Contingencies, ending balance | 2 |
Non-Superfund Sites [Member] | ' |
Accrual for Environmental Loss Contingencies [Roll Forward] | ' |
Environmental Contingencies, beginning balance | 17 |
Payments | -5 |
Change in cost estimates | 5 |
Environmental Contingencies, ending balance | $17 |
CONTINGENCIES_Details_1
CONTINGENCIES (Details 1) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Asbestos-related liabilities | $19 | $19 |
Maremont Asbestos [Member] | ' | ' |
Pending and future claims | 73 | 73 |
Billed but unpaid claims | 3 | 1 |
Asbestos-related liabilities | 76 | 74 |
Asbestos-related insurance recoveries | 49 | 58 |
Rockwell Asbestos [Member] | ' | ' |
Pending and future claims | 48 | 39 |
Billed but unpaid claims | 2 | 1 |
Asbestos-related liabilities | 50 | 40 |
Asbestos-related insurance recoveries | $11 | $13 |
CONTINGENCIES_Details_Textuals
CONTINGENCIES (Details Textuals) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2009 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Value Added Tax [Member] | Value Added Tax [Member] | MSSC [Member] | MSSC [Member] | Body Systems [Member] | Body Systems [Member] | Indemnity Obligations [Member] | Indemnity Obligations [Member] | Indemnity Obligations [Member] | Potential Product Performance Issue [Member] | Potential Product Performance Issue [Member] | Value Added Tax [Member] | Super Fund [Member] | Maremont Asbestos [Member] | Minimum [Member] | Maximum [Member] | Maremont Asbestos [Member] | Maremont Asbestos [Member] | Rockwell Asbestos [Member] | Rockwell Asbestos [Member] | Rockwell Asbestos [Member] | Superfund Sites [Member] | Superfund Sites [Member] | Superfund Sites [Member] | Non-Superfund Sites [Member] | Non-Superfund Sites [Member] | Non-Superfund Sites [Member] | Other Operating Income (Expense) [Member] | Other Operating Income (Expense) [Member] | Other Operating Income (Expense) [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | |||
claim | claim | ||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Period For Incurring Loss | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Superfund Sites | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental Costs Reasonably Possible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18 | ' | ' | $38 | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental contingencies accrued | 19 | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76 | 74 | 50 | 50 | 40 | 2 | 2 | ' | 17 | 17 | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 | 5 | 7 | 6 | 2 | 3 | 4 | 4 | 5 | 3 |
Environmental liabilities discounted rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated environmental liabilities for ongoing operations, maintenance and monitoring discounted amount | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated environmental liabilities for ongoing operations, maintenance and monitoring undiscounted amount | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of pending asbestos-related claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,700 | 5,400 | 2,800 | 2,800 | 2,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asbestos Related Punitive Damages Range of Possible Loss Minimum | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | 73 | ' | 48 | 48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for Settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge based on annual valuation of asbestos | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | 10 | 9 | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49 | 58 | 8 | 8 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asbestos Related Punitive Damages Range of Possible Loss Maximum | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 3 | ' | ' | ' | ' | ' | 105 | ' | 62 | 62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asbestos-related insurance recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49 | 58 | 11 | 11 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The estimate of probable asbestos obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48 | 48 | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash recovery | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations recorded | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 17 | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exposure under Indemnity | ' | ' | ' | ' | 5 | 11 | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual | ' | ' | $5 | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $73 | $73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BUSINESS_SEGMENT_INFORMATION_D
BUSINESS SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales | $933 | $979 | $954 | $900 | $902 | $986 | $900 | $884 | $3,766 | $3,672 | $4,384 |
Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,980 | 2,920 | 3,613 |
Aftermarket & Trailer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales | ' | ' | ' | ' | ' | ' | ' | ' | 920 | 871 | 906 |
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales | ' | ' | ' | ' | ' | ' | ' | ' | -134 | -119 | -135 |
External Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,766 | 3,672 | 4,384 |
External Sales [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,876 | 2,825 | 3,508 |
External Sales [Member] | Aftermarket & Trailer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 890 | 847 | 876 |
External Sales [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 95 | 105 |
Intersegment Eliminations [Member] | Aftermarket & Trailer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 24 | 30 |
Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External Sales | ' | ' | ' | ' | ' | ' | ' | ' | ($134) | ($119) | ($135) |
BUSINESS_SEGMENT_INFORMATION_D1
BUSINESS SEGMENT INFORMATION (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | $324 | $279 | $351 | |||
Unallocated legacy and corporate expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -10 | [1] | -15 | [1] | -24 | [1] |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -130 | -126 | -95 | |||
Provision for income taxes | 0 | -12 | -8 | -11 | -45 | -1 | -7 | -11 | -31 | -64 | -57 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -67 | -67 | -63 | |||
Loss on sale of receivables | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -6 | -9 | |||
Restructuring costs | -7 | ' | -2 | -1 | ' | -12 | -11 | -3 | -10 | -23 | -39 | |||
Litigation Settlement, Amount, After Taxes And Fees Incurred In Current Fiscal Year | ' | ' | ' | ' | ' | ' | ' | ' | 208 | [2] | 0 | [2] | 0 | [2] |
Specific warranty contingency, net of supplier recovery | ' | ' | ' | ' | ' | ' | ' | ' | 8 | -7 | 0 | |||
Pension settlement losses | ' | ' | ' | ' | -73 | -36 | ' | ' | 0 | -109 | 0 | |||
Gain on sale of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 125 | 0 | |||
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 16 | |||
Noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -2 | -11 | |||
Income (loss) from continuing operations attributable to Meritor, Inc. | 29 | 237 | 1 | 12 | 40 | -37 | -3 | -15 | 279 | -15 | 69 | |||
Commercial Truck & Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | 218 | 192 | 270 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -61 | [3] | -60 | [3] | -58 | [3] |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -17 | -36 | |||
Aftermarket & Trailer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | 106 | 87 | 81 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -6 | [3] | -7 | [3] | -5 | [3] |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | ($1) | ($3) | ($2) | |||
[1] | Unallocated legacy and corporate costs, net represents items that are not directly related to the company's business segments. These costs primarily include asbestos-related charges associated with the company's year-end liability remeasurement, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability. In fiscal year 2013, unallocated legacy and corporate costs, net includes approximately $4 million of executive severance related to the company's former Chief Executive Officer. | |||||||||||||
[2] | Adjustment associated with the company's share of the antitrust settlement with Eaton less legal expenses incurred in fiscal year 2014. | |||||||||||||
[3] | In fiscal year 2013, the company reorganized its management structure resulting in two reportable segments. Prior period segment financial information presented has been recast to reflect the revised reporting structure. |
BUSINESS_SEGMENT_INFORMATION_D2
BUSINESS SEGMENT INFORMATION (Details 2) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total depreciation and amortization | $67 | $67 | $63 | |||
Total capital expenditures | 77 | 54 | 89 | |||
Less: Accounts receivable sold under off-balance sheet factoring programs | -244 | [1] | -305 | [1] | ' | |
TOTAL ASSETS | 2,502 | 2,570 | ' | |||
Commercial Truck & Industrial [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total depreciation and amortization | 61 | [2] | 60 | [2] | 58 | [2] |
Total capital expenditures | 71 | [2] | 46 | [2] | 79 | [2] |
TOTAL ASSETS | 1,755 | [2] | 1,822 | [2] | 1,799 | [2] |
Aftermarket & Trailer [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total depreciation and amortization | 6 | [2] | 7 | [2] | 5 | [2] |
Total capital expenditures | 6 | [2] | 8 | [2] | 10 | [2] |
TOTAL ASSETS | 458 | [2] | 485 | [2] | 470 | [2] |
Segment Assets [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
TOTAL ASSETS | 2,213 | 2,307 | 2,269 | |||
Corporate Segment [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
TOTAL ASSETS | $533 | [3] | $568 | [3] | ' | |
[1] | At SeptemberB 30, 2014 and SeptemberB 30, 2013, segment assets include $244 million and $305 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (See Note 6). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances. | |||||
[2] | In fiscal year 2013, the company reorganized its management structure resulting in two reportable segments. Prior period segment financial information presented has been recast to reflect the revised reporting structure. | |||||
[3] | Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. |
BUSINESS_SEGMENT_INFORMATION_D3
BUSINESS SEGMENT INFORMATION (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total sales | $933 | $979 | $954 | $900 | $902 | $986 | $900 | $884 | $3,766 | $3,672 | $4,384 |
Total assets excluding discontinued operations | 2,502 | ' | ' | ' | 2,570 | ' | ' | ' | 2,502 | 2,570 | ' |
U.S. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 1,466 | 1,408 | 1,679 |
Assets excluding discontinued operations in entitys country of domicile | 1,067 | ' | ' | ' | 1,130 | ' | ' | ' | 1,067 | 1,130 | ' |
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 68 | 72 |
Assets excluding discontinued operations in foreign countries | 50 | ' | ' | ' | 81 | ' | ' | ' | 50 | 81 | ' |
Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 652 | 615 | 726 |
Assets excluding discontinued operations in foreign countries | 251 | ' | ' | ' | 240 | ' | ' | ' | 251 | 240 | ' |
Total North America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to North America | ' | ' | ' | ' | ' | ' | ' | ' | 2,186 | 2,091 | 2,477 |
Assets excluding discontinued operations in foreign countries | 1,368 | ' | ' | ' | 1,451 | ' | ' | ' | 1,368 | 1,451 | ' |
Sweden [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 369 | 366 | 403 |
Assets excluding discontinued operations in foreign countries | 104 | ' | ' | ' | 125 | ' | ' | ' | 104 | 125 | ' |
United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 82 | 82 | 84 |
Assets excluding discontinued operations in foreign countries | 216 | ' | ' | ' | 157 | ' | ' | ' | 216 | 157 | ' |
Italy [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 234 | 216 | 189 |
Assets excluding discontinued operations in foreign countries | 81 | ' | ' | ' | 86 | ' | ' | ' | 81 | 86 | ' |
Other Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 111 | 108 | 198 |
Assets excluding discontinued operations in foreign countries | 182 | ' | ' | ' | 192 | ' | ' | ' | 182 | 192 | ' |
Total Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 796 | 772 | 874 |
Assets excluding discontinued operations in foreign countries | 583 | ' | ' | ' | 560 | ' | ' | ' | 583 | 560 | ' |
South America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 408 | 449 | 470 |
Assets excluding discontinued operations in foreign countries | 272 | ' | ' | ' | 297 | ' | ' | ' | 272 | 297 | ' |
China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 146 | 138 | 255 |
Assets excluding discontinued operations in foreign countries | 154 | ' | ' | ' | 153 | ' | ' | ' | 154 | 153 | ' |
India [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 114 | 114 | 194 |
Other Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from external customers attributed to entity's country of domicile | ' | ' | ' | ' | ' | ' | ' | ' | 116 | 108 | 114 |
Assets excluding discontinued operations in foreign countries | $125 | ' | ' | ' | $109 | ' | ' | ' | $125 | $109 | ' |
BUSINESS_SEGMENT_INFORMATION_D4
BUSINESS SEGMENT INFORMATION (Details Textuals) (USD $) | 0 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Nov. 12, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
segment | segment | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |||
Number of reportable segments | 2 | 2 | 2 | ' | |||
Unallocated legacy and corporate expense, net | ' | $10 | [1] | $15 | [1] | $24 | [1] |
Accounts receivable sold under off-balance sheet factoring programs | ' | 244 | [2] | 305 | [2] | ' | |
Percentage of sales to major customers | ' | 10.00% | ' | ' | |||
AB Volvo [Member] | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |||
Percentage of sales to major customers | ' | 27.00% | 24.00% | 22.00% | |||
Daimler AG [Member] | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |||
Percentage of sales to major customers | ' | 18.00% | 15.00% | 15.00% | |||
Navistar [Member] | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |||
Percentage of sales to major customers | ' | 12.00% | 10.00% | 11.00% | |||
Executive Severance [Member] | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |||
Unallocated legacy and corporate expense, net | ' | ' | $4 | ' | |||
[1] | Unallocated legacy and corporate costs, net represents items that are not directly related to the company's business segments. These costs primarily include asbestos-related charges associated with the company's year-end liability remeasurement, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability. In fiscal year 2013, unallocated legacy and corporate costs, net includes approximately $4 million of executive severance related to the company's former Chief Executive Officer. | ||||||
[2] | At SeptemberB 30, 2014 and SeptemberB 30, 2013, segment assets include $244 million and $305 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (See Note 6). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances. |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $933 | $979 | $954 | $900 | $902 | $986 | $900 | $884 | $3,766 | $3,672 | $4,384 |
Cost of sales | -793 | -855 | -836 | -795 | -793 | -877 | -805 | -802 | -3,279 | -3,277 | -3,902 |
Gross margin | 140 | 124 | 118 | 105 | 109 | 109 | 95 | 82 | 487 | 395 | 482 |
Provision for income taxes | 0 | -12 | -8 | -11 | -45 | -1 | -7 | -11 | -31 | -64 | -57 |
Net income (loss) | 4 | 234 | 3 | 13 | 43 | -39 | -4 | -20 | 254 | -20 | 63 |
Income (loss) from continuing operations attributable to Meritor, Inc. | 29 | 237 | 1 | 12 | 40 | -37 | -3 | -15 | 279 | -15 | 69 |
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. | $3 | $234 | $1 | $11 | $41 | ($39) | ($3) | ($21) | $249 | ($22) | $52 |
Basic income (loss) per share from continuing operations | $0.30 | $2.43 | $0.01 | $0.12 | $0.41 | ($0.38) | ($0.03) | ($0.16) | $2.86 | ($0.15) | $0.72 |
Diluted income (loss) per share from continuing operations | $0.29 | $2.34 | $0.01 | $0.12 | $0.41 | ($0.38) | ($0.03) | ($0.16) | $2.81 | ($0.15) | $0.71 |
QUARTERLY_FINANCIAL_INFORMATIO3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details Textuals) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Jul. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2014 |
ZF Meritor LLC [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Suspensys Sistemas Automotivos Ltda. [Member] | Canadian Pension Plan Dispute [Member] | Retiree Medical Plan [Member] | ||||||||||||
claim | ||||||||||||||||||
Restructuring charges | $7 | ' | $2 | $1 | ' | $12 | $11 | $3 | $10 | $23 | $39 | ' | ' | ' | ' | ' | ' | ' |
Recognized prior service costs due to curtailment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 |
Restructuring reversal | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 3 | 234 | 1 | 11 | 41 | -39 | -3 | -21 | 249 | -22 | 52 | 209 | ' | ' | ' | ' | ' | ' |
Non-operating loss from the change in fair value of notes receivable | ' | ' | ' | ' | -73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27 | ' |
Pension plans settled during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Gain on sale of ownership in joint venture, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $92 | $92 | ' | ' | ' | ' |
Company's overall ownership, as a percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | ' | ' |
OPERATING_CASH_FLOWS_AND_OTHER2
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
NET INCOME (LOSS) | $4 | $234 | $3 | $13 | $43 | ($39) | ($4) | ($20) | $254 | ($20) | $63 |
Less: loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -30 | -7 | -17 |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 284 | -13 | 80 |
Adjustments to income (loss) from continuing operations to arrive at cash provided by (used for) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 67 | 67 | 63 |
Deferred income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -4 | 13 |
Restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 23 | 39 |
Repurchase of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | 31 | 24 | 0 |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | -38 | -42 | -52 |
Stock compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 5 | 6 |
Provision for doubtful accounts | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3 | 2 |
Pension and retiree medical expense | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 151 | 53 |
Gain on sale of investment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -125 | 0 |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -16 |
Dividends received from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 30 | 47 |
Pension and retiree medical contributions | ' | ' | ' | ' | ' | ' | ' | ' | -177 | -153 | -140 |
Restructuring payments | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -23 | -22 |
Changes in off-balance sheet receivable securitization and factoring programs | ' | ' | ' | ' | ' | ' | ' | ' | -46 | 43 | -24 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables | ' | ' | ' | ' | ' | ' | ' | ' | 34 | -87 | 150 |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | -9 | 18 | 11 |
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -31 | -118 |
Other current assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 19 | 37 | -20 |
Other assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1 | 24 |
Operating cash flows provided by (used by) continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 227 | -78 | 96 |
Operating cash flows used for discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -18 | -19 |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | ' | ' | 215 | -96 | 77 |
ZF Meritor LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to income (loss) from continuing operations to arrive at cash provided by (used for) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | -190 | 0 | 0 |
Dividends received from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 190 | 0 | 0 |
Other equity method investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to income (loss) from continuing operations to arrive at cash provided by (used for) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | -38 | -42 | -52 |
Dividends received from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | $36 | $30 | $47 |
OPERATING_CASH_FLOWS_AND_OTHER3
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Balance sheet data: | ' | ' | ' |
Allowance for doubtful accounts | $6 | $9 | $7 |
Statement of operations data: | ' | ' | ' |
Maintenance and repairs expense | 59 | 61 | 44 |
Research, development and engineering expense | 71 | 71 | 73 |
Depreciation expense | 62 | 61 | 59 |
Rental expense | 16 | 25 | 20 |
Interest income | 2 | 2 | 2 |
Interest expense | -132 | -128 | -97 |
Statement of cash flows data: | ' | ' | ' |
Interest payments | 84 | 77 | 83 |
Income tax payments, net of refunds | 26 | 63 | 51 |
Non-cash investing activities - capital asset additions from capital leases | $5 | $22 | $19 |
SUPPLEMENTAL_PARENT_AND_GUARAN2
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $933 | $979 | $954 | $900 | $902 | $986 | $900 | $884 | $3,766 | $3,672 | $4,384 |
Cost of sales | -793 | -855 | -836 | -795 | -793 | -877 | -805 | -802 | -3,279 | -3,277 | -3,902 |
GROSS MARGIN | 140 | 124 | 118 | 105 | 109 | 109 | 95 | 82 | 487 | 395 | 482 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -258 | -253 | -282 |
Pension settlement losses | ' | ' | ' | ' | -73 | -36 | ' | ' | 0 | -109 | 0 |
Restructuring | -7 | ' | -2 | -1 | ' | -12 | -11 | -3 | -10 | -23 | -39 |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 16 |
Other operating expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -3 | -4 |
OPERATING INCOME | ' | ' | ' | ' | ' | ' | ' | ' | 217 | 7 | 173 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3 | 7 |
Gain on sale of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 125 | 0 |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 42 | 52 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -130 | -126 | -95 |
INCOME BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 315 | 51 | 137 |
Provision for income taxes | 0 | -12 | -8 | -11 | -45 | -1 | -7 | -11 | -31 | -64 | -57 |
Equity income from continuing operations of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 284 | -13 | 80 |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -30 | -7 | -17 |
NET INCOME (LOSS) | 4 | 234 | 3 | 13 | 43 | -39 | -4 | -20 | 254 | -20 | 63 |
Less: Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -2 | -11 |
Net income (loss) | 3 | 234 | 1 | 11 | 41 | -39 | -3 | -21 | 249 | -22 | 52 |
External Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,766 | 3,672 | 4,384 |
Subsidiaries Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
ZF Meritor LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 190 | 0 | 0 |
Net income (loss) | ' | 209 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other equity method investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 42 | 52 |
Parent [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | -56 | -54 | -50 |
GROSS MARGIN | ' | ' | ' | ' | ' | ' | ' | ' | -56 | -54 | -50 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -65 | -72 | -75 |
Pension settlement losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -73 | ' |
Restructuring | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -3 | 0 |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Other operating expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -2 | -2 |
OPERATING INCOME | ' | ' | ' | ' | ' | ' | ' | ' | -122 | -204 | -127 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 35 | 39 | 42 |
Gain on sale of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -159 | -154 | -121 |
INCOME BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | -246 | -319 | -206 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1 | 0 |
Equity income from continuing operations of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 525 | 305 | 275 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 279 | -15 | 69 |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -30 | -7 | -17 |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 249 | -22 | 52 |
Less: Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 249 | -22 | 52 |
Parent [Member] | External Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Parent [Member] | Subsidiaries Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Parent [Member] | ZF Meritor LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Parent [Member] | Other equity method investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,609 | 1,545 | 1,828 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | -1,343 | -1,339 | -1,579 |
GROSS MARGIN | ' | ' | ' | ' | ' | ' | ' | ' | 266 | 206 | 249 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -102 | -87 | -102 |
Pension settlement losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Restructuring | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -8 | 0 |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Other operating expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | 0 |
OPERATING INCOME | ' | ' | ' | ' | ' | ' | ' | ' | 162 | 110 | 147 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 23 | 21 | 27 |
Gain on sale of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 34 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 35 | 34 | 22 |
INCOME BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 440 | 249 | 230 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -17 | -5 |
Equity income from continuing operations of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 71 | 57 | 35 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 510 | 289 | 260 |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -31 | -8 | -5 |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 479 | 281 | 255 |
Less: Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 479 | 281 | 255 |
Guarantors [Member] | External Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,467 | 1,409 | 1,679 |
Guarantors [Member] | Subsidiaries Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 142 | 136 | 149 |
Guarantors [Member] | ZF Meritor LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 190 | ' | ' |
Guarantors [Member] | Other equity method investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' |
Non-Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,361 | 2,319 | 2,776 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | -2,084 | -2,076 | -2,493 |
GROSS MARGIN | ' | ' | ' | ' | ' | ' | ' | ' | 277 | 243 | 283 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -91 | -94 | -105 |
Pension settlement losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -36 | ' |
Restructuring | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -12 | -39 |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 |
Other operating expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -2 |
OPERATING INCOME | ' | ' | ' | ' | ' | ' | ' | ' | 177 | 101 | 153 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -58 | -57 | -62 |
Gain on sale of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 18 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -6 | 4 |
INCOME BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 121 | 121 | 113 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -30 | -46 | -52 |
Equity income from continuing operations of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 75 | 61 |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -237 | -1 |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 79 | -162 | 60 |
Less: Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -2 | -11 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 74 | -164 | 49 |
Non-Guarantors [Member] | External Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,299 | 2,263 | 2,705 |
Non-Guarantors [Member] | Subsidiaries Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 62 | 56 | 71 |
Non-Guarantors [Member] | ZF Meritor LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Non-Guarantors [Member] | Other equity method investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Elims [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | -204 | -192 | -220 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 204 | 192 | 220 |
GROSS MARGIN | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Pension settlement losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Restructuring | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Gain on sale of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Other operating expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
OPERATING INCOME | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Gain on sale of equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Interest income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
INCOME BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Equity income from continuing operations of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -596 | -362 | -310 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | -596 | -362 | -310 |
LOSS FROM DISCONTINUED OPERATIONS, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 43 | 245 | 6 |
NET INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | -553 | -117 | -304 |
Less: Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -553 | -117 | -304 |
Elims [Member] | External Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Elims [Member] | Subsidiaries Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | -204 | -192 | -220 |
Elims [Member] | ZF Meritor LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Elims [Member] | Other equity method investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' |
SUPPLEMENTAL_PARENT_AND_GUARAN3
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $4 | $234 | $3 | $13 | $43 | ($39) | ($4) | ($20) | $254 | ($20) | $63 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -15 | 181 | -87 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 239 | 161 | -24 |
Less: Comprehensive income attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -2 | -10 |
Comprehensive income (loss) attributable to Meritor, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | 234 | 159 | -34 |
Parent [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 249 | -22 | 52 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -15 | 181 | -86 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 234 | 159 | -34 |
Less: Comprehensive income attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Meritor, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | 234 | 159 | -34 |
Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 479 | 281 | 255 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -54 | 13 | -41 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 425 | 294 | 214 |
Less: Comprehensive income attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Meritor, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | 425 | 294 | 214 |
Non-Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 79 | -162 | 60 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 25 | -12 | -1 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 104 | -174 | 59 |
Less: Comprehensive income attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -2 | -10 |
Comprehensive income (loss) attributable to Meritor, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | 99 | -176 | 49 |
Elims [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -553 | -117 | -304 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 29 | -1 | 41 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -524 | -118 | -263 |
Less: Comprehensive income attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Meritor, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ($524) | ($118) | ($263) |
SUPPLEMENTAL_PARENT_AND_GUARAN4
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 2) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Millions, unless otherwise specified | ||||
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $247 | $318 | $257 | $217 |
Receivables trade and other, net | 610 | 596 | ' | ' |
Inventories | 379 | 414 | ' | ' |
Other current assets | 56 | 56 | ' | ' |
TOTAL CURRENT ASSETS | 1,292 | 1,384 | ' | ' |
NET PROPERTY | 424 | 417 | ' | ' |
GOODWILL | 431 | 434 | 433 | ' |
OTHER ASSETS | 355 | 335 | ' | ' |
INVESTMENTS IN SUBSIDIARIES | 0 | 0 | ' | ' |
TOTAL ASSETS | 2,502 | 2,570 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 7 | 13 | ' | ' |
Accounts and notes payable | 680 | 694 | ' | ' |
Other current liabilities | 351 | 339 | ' | ' |
TOTAL CURRENT LIABILITIES | 1,038 | 1,046 | ' | ' |
LONG-TERM DEBT | 965 | 1,125 | ' | ' |
RETIREMENT BENEFITS | 775 | 886 | ' | ' |
INTERCOMPANY PAYABLE (RECEIVABLE) | 0 | 0 | ' | ' |
OTHER LIABILITIES | 309 | 335 | ' | ' |
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | -612 | -850 | ' | ' |
NONCONTROLLING INTERESTS | 27 | 28 | ' | ' |
TOTAL LIABILITIES AND DEFICIT | 2,502 | 2,570 | ' | ' |
Parent [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 71 | 144 | 91 | 92 |
Receivables trade and other, net | 1 | 1 | ' | ' |
Inventories | 0 | ' | ' | ' |
Other current assets | 9 | 4 | ' | ' |
TOTAL CURRENT ASSETS | 81 | 149 | ' | ' |
NET PROPERTY | 13 | 10 | ' | ' |
GOODWILL | 0 | 0 | ' | ' |
OTHER ASSETS | 75 | 77 | ' | ' |
INVESTMENTS IN SUBSIDIARIES | 2,185 | 1,718 | ' | ' |
TOTAL ASSETS | 2,354 | 1,954 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 1 | 5 | ' | ' |
Accounts and notes payable | 46 | 51 | ' | ' |
Other current liabilities | 97 | 95 | ' | ' |
TOTAL CURRENT LIABILITIES | 144 | 151 | ' | ' |
LONG-TERM DEBT | 916 | 1,088 | ' | ' |
RETIREMENT BENEFITS | 656 | 775 | ' | ' |
INTERCOMPANY PAYABLE (RECEIVABLE) | 1,198 | 723 | ' | ' |
OTHER LIABILITIES | 52 | 67 | ' | ' |
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | -612 | -850 | ' | ' |
NONCONTROLLING INTERESTS | 0 | 0 | ' | ' |
TOTAL LIABILITIES AND DEFICIT | 2,354 | 1,954 | ' | ' |
Guarantors [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 5 | 6 | 3 | 4 |
Receivables trade and other, net | 45 | 24 | ' | ' |
Inventories | 151 | 164 | ' | ' |
Other current assets | 18 | 17 | ' | ' |
TOTAL CURRENT ASSETS | 219 | 211 | ' | ' |
NET PROPERTY | 158 | 145 | ' | ' |
GOODWILL | 277 | 277 | ' | ' |
OTHER ASSETS | 128 | 134 | ' | ' |
INVESTMENTS IN SUBSIDIARIES | 267 | 109 | ' | ' |
TOTAL ASSETS | 1,049 | 876 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 3 | 7 | ' | ' |
Accounts and notes payable | 230 | 199 | ' | ' |
Other current liabilities | 87 | 76 | ' | ' |
TOTAL CURRENT LIABILITIES | 320 | 282 | ' | ' |
LONG-TERM DEBT | 10 | 8 | ' | ' |
RETIREMENT BENEFITS | 0 | 0 | ' | ' |
INTERCOMPANY PAYABLE (RECEIVABLE) | -1,736 | -1,412 | ' | ' |
OTHER LIABILITIES | 208 | 204 | ' | ' |
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | 2,247 | 1,794 | ' | ' |
NONCONTROLLING INTERESTS | 0 | 0 | ' | ' |
TOTAL LIABILITIES AND DEFICIT | 1,049 | 876 | ' | ' |
Non-Guarantors [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 171 | 168 | 163 | 121 |
Receivables trade and other, net | 564 | 571 | ' | ' |
Inventories | 228 | 250 | ' | ' |
Other current assets | 29 | 35 | ' | ' |
TOTAL CURRENT ASSETS | 992 | 1,024 | ' | ' |
NET PROPERTY | 253 | 262 | ' | ' |
GOODWILL | 154 | 157 | ' | ' |
OTHER ASSETS | 152 | 124 | ' | ' |
INVESTMENTS IN SUBSIDIARIES | 0 | 0 | ' | ' |
TOTAL ASSETS | 1,551 | 1,567 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 3 | 1 | ' | ' |
Accounts and notes payable | 404 | 444 | ' | ' |
Other current liabilities | 167 | 168 | ' | ' |
TOTAL CURRENT LIABILITIES | 574 | 613 | ' | ' |
LONG-TERM DEBT | 39 | 29 | ' | ' |
RETIREMENT BENEFITS | 119 | 111 | ' | ' |
INTERCOMPANY PAYABLE (RECEIVABLE) | 538 | 689 | ' | ' |
OTHER LIABILITIES | 49 | 64 | ' | ' |
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | 205 | 33 | ' | ' |
NONCONTROLLING INTERESTS | 27 | 28 | ' | ' |
TOTAL LIABILITIES AND DEFICIT | 1,551 | 1,567 | ' | ' |
Elims [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables trade and other, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
TOTAL CURRENT ASSETS | 0 | 0 | ' | ' |
NET PROPERTY | 0 | 0 | ' | ' |
GOODWILL | 0 | 0 | ' | ' |
OTHER ASSETS | 0 | 0 | ' | ' |
INVESTMENTS IN SUBSIDIARIES | -2,452 | -1,827 | ' | ' |
TOTAL ASSETS | -2,452 | -1,827 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 0 | 0 | ' | ' |
Accounts and notes payable | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
TOTAL CURRENT LIABILITIES | 0 | 0 | ' | ' |
LONG-TERM DEBT | 0 | 0 | ' | ' |
RETIREMENT BENEFITS | 0 | 0 | ' | ' |
INTERCOMPANY PAYABLE (RECEIVABLE) | 0 | 0 | ' | ' |
OTHER LIABILITIES | 0 | 0 | ' | ' |
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | -2,452 | -1,827 | ' | ' |
NONCONTROLLING INTERESTS | 0 | 0 | ' | ' |
TOTAL LIABILITIES AND DEFICIT | ($2,452) | ($1,827) | ' | ' |
SUPPLEMENTAL_PARENT_AND_GUARAN5
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Statement of Cash Flows [Line Items] | ' | ' | ' |
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $215 | ($96) | $77 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -77 | -54 | -89 |
Proceeds from sale of equity investment | 0 | 182 | 0 |
Proceeds from sale of property | 0 | 0 | 18 |
Other investing activities | 0 | 3 | 3 |
Net cash flows provided by (used for) discontinued operations | 7 | 6 | 28 |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | -70 | 137 | -40 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from debt issuances | 225 | 500 | 100 |
Repayment of notes and term loan | -439 | -475 | -86 |
Other financing activities | 12 | 11 | 0 |
Debt issuance costs | -10 | -12 | -12 |
Intercompany advances | 0 | 0 | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | -212 | 24 | 2 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | -4 | -4 | 1 |
CHANGE IN CASH AND CASH EQUIVALENTS | -71 | 61 | 40 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 318 | 257 | 217 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 247 | 318 | 257 |
Parent [Member] | ' | ' | ' |
Schedule of Statement of Cash Flows [Line Items] | ' | ' | ' |
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 245 | 34 | -13 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -4 | -3 | -3 |
Proceeds from sale of equity investment | ' | 0 | ' |
Proceeds from sale of property | ' | ' | 0 |
Other investing activities | ' | 2 | 0 |
Net cash flows provided by (used for) discontinued operations | 0 | 0 | 0 |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | -4 | -1 | -3 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from debt issuances | 225 | 500 | 100 |
Repayment of notes and term loan | -439 | -475 | -86 |
Other financing activities | 0 | 0 | ' |
Debt issuance costs | -10 | -12 | -12 |
Intercompany advances | 90 | -7 | -13 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | -314 | 20 | 15 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CHANGE IN CASH AND CASH EQUIVALENTS | -73 | 53 | -1 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 144 | 91 | 92 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 71 | 144 | 91 |
Guarantors [Member] | ' | ' | ' |
Schedule of Statement of Cash Flows [Line Items] | ' | ' | ' |
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 34 | -63 | 31 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -37 | -26 | -33 |
Proceeds from sale of equity investment | ' | 87 | ' |
Proceeds from sale of property | ' | ' | 0 |
Other investing activities | ' | 1 | 1 |
Net cash flows provided by (used for) discontinued operations | 4 | 3 | 0 |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | -33 | 65 | -32 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from debt issuances | 0 | 0 | 0 |
Repayment of notes and term loan | 0 | 0 | 0 |
Other financing activities | -2 | 1 | ' |
Debt issuance costs | 0 | 0 | 0 |
Intercompany advances | 0 | 0 | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | -2 | 1 | 0 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CHANGE IN CASH AND CASH EQUIVALENTS | -1 | 3 | -1 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 6 | 3 | 4 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 5 | 6 | 3 |
Non-Guarantors [Member] | ' | ' | ' |
Schedule of Statement of Cash Flows [Line Items] | ' | ' | ' |
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | -64 | -67 | 59 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -36 | -25 | -53 |
Proceeds from sale of equity investment | ' | 95 | ' |
Proceeds from sale of property | ' | ' | 18 |
Other investing activities | ' | 0 | 2 |
Net cash flows provided by (used for) discontinued operations | 3 | 3 | 28 |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | -33 | 73 | -5 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from debt issuances | 0 | 0 | 0 |
Repayment of notes and term loan | 0 | 0 | 0 |
Other financing activities | 14 | 10 | ' |
Debt issuance costs | 0 | 0 | 0 |
Intercompany advances | -90 | 7 | 13 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 104 | 3 | -13 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | -4 | -4 | 1 |
CHANGE IN CASH AND CASH EQUIVALENTS | 3 | 5 | 42 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 168 | 163 | 121 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 171 | 168 | 163 |
Elims [Member] | ' | ' | ' |
Schedule of Statement of Cash Flows [Line Items] | ' | ' | ' |
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | 0 | 0 | 0 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | 0 | 0 | 0 |
Proceeds from sale of equity investment | ' | 0 | ' |
Proceeds from sale of property | ' | ' | 0 |
Other investing activities | ' | 0 | 0 |
Net cash flows provided by (used for) discontinued operations | 0 | 0 | 0 |
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | 0 | 0 | 0 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from debt issuances | 0 | 0 | 0 |
Repayment of notes and term loan | 0 | 0 | 0 |
Other financing activities | 0 | 0 | ' |
Debt issuance costs | 0 | 0 | 0 |
Intercompany advances | 0 | 0 | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 0 | 0 | 0 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CHANGE IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $0 | $0 | $0 |
SUPPLEMENTAL_PARENT_AND_GUARAN6
SUPPLEMENTAL PARENT AND GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Company's overall ownership, as a percentage | 100.00% | ' | ' |
Threshold for reporting consolidating financial statements | 25.00% | ' | ' |
Minimum amount of subsidiary restricted assets that exceed consolidated net assets, as a percentage | 25.00% | ' | ' |
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | $57 | ' | ' |
Parent [Member] | ' | ' | ' |
Pension and Retiree Medical Liabilities | 684 | 805 | ' |
Proceeds from Consolidated Subsidiaries and Equity Method Investments | 5 | 54 | 19 |
Subsidiaries [Member] | ' | ' | ' |
Debt and capital lease obligations | $55 | $45 | ' |
VALUATION_AND_QUALIFYING_ACCOU1
VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Allowance for doubtful accounts [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Beginning balance | $9 | $7 | $5 | |||
Charged to costs and expenses | -2 | 3 | 2 | |||
Other deductions | -1 | [1] | -1 | [1] | 0 | [1] |
Ending balance | 6 | 9 | 7 | |||
Deferred tax asset valuation allowance [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Beginning balance | 1,166 | 1,204 | 1,255 | |||
Charged to costs and expenses | -89 | 44 | -68 | |||
Other deductions | -47 | [2] | -82 | [2] | 17 | [2] |
Ending balance | $1,030 | $1,166 | $1,204 | |||
[1] | Uncollectible accounts written off. | |||||
[2] | Primarily relates to revaluation of defined pension and retiree medical obligations. |