Meritor (MTOR) 10-Q 4 Aug 16 2016 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document and Entity Information [Abstract]
Entity registrant name	MERITOR INC
Entity central index key	1,113,256
Current fiscal year end date	--09-30
Entity filer category	Large Accelerated Filer
Trading symbol	MTOR
Entity common stock, shares outstanding		86,763,157
Document period end date	Jun. 30, 2016
Document fiscal year focus	2,016
Document type	10-Q
Document fiscal period focus	Q3
Amendment flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Sales	$ 841	$ 909	$ 2,471	$ 2,652
Cost of sales	(714)	(785)	(2,119)	(2,298)
GROSS MARGIN	127	124	352	354
Selling, general and administrative	(59)	(65)	(175)	(187)
Restructuring costs	(6)	(9)	(9)	(15)
Other operating income (expense), net	0	1	(3)	2
OPERATING INCOME	62	51	165	154
Other income (expense), net	0	(1)	(1)	3
Equity in earnings of affiliates	9	10	26	28
Interest expense, net	(20)	(38)	(63)	(78)
INCOME BEFORE INCOME TAXES	51	22	127	107
Provision for income taxes	(8)	(6)	(22)	(19)
INCOME FROM CONTINUING OPERATIONS	43	16	105	88
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(1)	(2)	(4)	(1)
NET INCOME	42	14	101	87
Less: Net income attributable to noncontrolling interests	(1)	(1)	(2)	(2)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	41	13	99	85
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
Net income from continuing operations	42	15	103	86
Loss from discontinued operations	(1)	(2)	(4)	(1)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$ 41	$ 13	$ 99	$ 85
BASIC EARNINGS (LOSS) PER SHARE
Continuing operations (in dollars per share)	$ 0.47	$ 0.15	$ 1.13	$ 0.88
Discontinued operations (in dollars per share)	(0.01)	(0.02)	(0.04)	(0.01)
Basic earnings per share (in dollars per share)	0.46	0.13	1.09	0.87
DILUTED EARNINGS (LOSS) PER SHARE
Continuing operations (in dollars per share)	0.46	0.15	1.10	0.85
Discontinued operations (in dollars per share)	(0.01)	(0.02)	(0.04)	(0.01)
Diluted earnings per share (in dollars per share)	$ 0.45	$ 0.13	$ 1.06	$ 0.84
Basic average common shares outstanding (in shares)	89.8	96.9	91.2	97.6
Diluted average common shares outstanding (in shares)	92	100.3	93.1	101

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 42	$ 14	$ 101	$ 87
Foreign currency translation adjustments:
Attributable to Meritor, Inc.	(10)	13	(6)	(54)
Attributable to noncontrolling interest	0	0	0	(1)
Other reclassification adjustment	0	0	0	1
Pension and other postretirement benefit related adjustments	7	12	25	35
Unrealized gain (loss) on investments and foreign exchange contracts	3	(2)	5	(3)
Other comprehensive income (loss), net of tax	0	23	24	(22)
Total comprehensive income	42	37	125	65
Less: Comprehensive income attributable to noncontrolling interest	(1)	(1)	(2)	(1)
Comprehensive income attributable to Meritor, Inc.	$ 41	$ 36	$ 123	$ 64

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 129	$ 193
Receivables, trade and other, net	422	461
Inventories	335	338
Other current assets	53	50
TOTAL CURRENT ASSETS	939	1,042
NET PROPERTY	428	419
GOODWILL	392	402
OTHER ASSETS	325	332
TOTAL ASSETS	2,084	2,195
CURRENT LIABILITIES:
Short-term debt	14	15
Accounts and notes payable	503	574
Other current liabilities	267	279
TOTAL CURRENT LIABILITIES	784	868
LONG-TERM DEBT	980	1,036
RETIREMENT BENEFITS	601	632
OTHER LIABILITIES	315	305
TOTAL LIABILITIES	2,680	2,841
COMMITMENTS AND CONTINGENCIES (See Note 19)
EQUITY (DEFICIT):
Common stock (June 30, 2016 and September 30, 2015, 99.6 and 98.8 shares issued and 86.8 and 94.6 shares outstanding, respectively)	99	99
Additional paid-in capital	873	865
Accumulated deficit	(715)	(814)
Treasury stock, at cost (June 30, 2016 and September 30, 2015, 12.8 and 4.2 shares, respectively)	(136)	(55)
Accumulated other comprehensive loss	(742)	(766)
Total deficit attributable to Meritor, Inc.	(621)	(671)
Noncontrolling interests	25	25
TOTAL DEFICIT	(596)	(646)
TOTAL LIABILITIES AND DEFICIT	$ 2,084	$ 2,195

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - shares shares in Millions	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Common Shares Issued (in shares)	99.6	98.8
Common Shares Outstanding (in shares)	86.8	94.6
Treasury stock (in shares)	12.8	4.2

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
CASH PROVIDED BY OPERATING ACTIVITIES (See Note 9)	$ 144	$ 122
INVESTING ACTIVITIES
Capital expenditures	(66)	(45)
Proceeds from sale of property	3	4
Net investing cash flows provided by discontinued operations	4	4
CASH USED FOR INVESTING ACTIVITIES	(59)	(37)
FINANCING ACTIVITIES
Repayment of notes and term loan	(55)	(159)
Proceeds from debt issuance	0	225
Debt issuance costs	0	(4)
Repurchase of common stock	(81)	(30)
Other financing activities	(15)	(7)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(151)	25
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	2	(12)
CHANGE IN CASH AND CASH EQUIVALENTS	(64)	98
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	193	247
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 129	$ 345

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Loss	Total Deficit Attributable to Meritor, Inc.	Noncontrolling Interests
Beginning balance at Sep. 30, 2014	$ (585)	$ 97	$ 918	$ (878)	$ 0	$ (749)	$ (612)	$ 27
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	65			85		(21)	64	1
Vesting of restricted stock		2	(2)
Repurchase of convertible notes	(48)		(48)				(48)
Equity based compensation expense	8		8				8
Repurchase of common stock	(30)				(30)		(30)
Noncontrolling interest dividend	(1)							(1)
Ending Balance at Jun. 30, 2015	(591)	99	876	(793)	(30)	(770)	(618)	27
Beginning balance at Sep. 30, 2015	(646)	99	865	(814)	(55)	(766)	(671)	25
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	125			99		24	123	2
Equity based compensation expense	8		8				8
Repurchase of common stock	(81)				(81)		(81)
Noncontrolling interest dividend	(2)							(2)
Ending Balance at Jun. 30, 2016	$ (596)	$ 99	$ 873	$ (715)	$ (136)	$ (742)	$ (621)	$ 25

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2016
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 condensed consolidated financial statements are those of the company and its consolidated subsidiaries. Certain businesses are reported in discontinued operations in the condensed consolidated statement of operations, condensed consolidated statement of cash flows and related notes for all periods presented. Additional information regarding discontinued operations is discussed in Note 4. In the opinion of the company, the unaudited condensed consolidated financial statements contain all adjustments, consisting solely of adjustments of a normal, recurring nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. These statements should be read in conjunction with the company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K, for the fiscal year ended September 30, 2015 , as amended. The condensed consolidated balance sheet data as of September 30, 2015 was derived from audited financial statements but does not include all annual disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the three and nine months ended June 30, 2016 are not necessarily indicative of the results for the full year. The company’s fiscal year ends on the Sunday nearest September 30. The third quarter of fiscal years 2016 and 2015 ended on July 3, 2016 and June 28, 2015 , respectively. All year and quarter references relate to the company’s fiscal year and fiscal quarters, unless otherwise stated. For ease of presentation, September 30 and June 30 are used consistently throughout this report to represent the fiscal year end and third fiscal quarter end, respectively.

Earnings per Share

Earnings per Share	9 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings per Share	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, restricted share units, performance share unit 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): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic average common shares outstanding 89.8 96.9 91.2 97.6 Impact of restricted shares, restricted share units and performance share units 2.2 1.8 1.9 2.0 Impact of stock options — 0.1 — 0.1 Impact of convertible notes — 1.5 — 1.3 Diluted average common shares outstanding 92.0 100.3 93.1 101.0 In November 2015, 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 or its cash equivalent upon achievement of certain performance and time vesting criteria. The fair value of each performance share unit was $10.51 , which was the company’s share price on the grant date of December 1, 2015. The Board of Directors also approved a grant of 0.5 million restricted share units to these executives. The restricted share units vest at the earlier of three years from the date of grant or upon termination of employment with the company under certain circumstances. The fair value of each restricted share unit was $10.51 , which was the company's share price on the grant date of December 1, 2015. The actual number of performance share units that will vest depends upon the company’s performance relative to the established performance metrics for the three -year performance period of October 1, 2015 to September 30, 2018, measured at the end of the performance period. The number of performance share units will depend on Adjusted EBITDA margin and Adjusted diluted earnings per share from continuing operations at the following weights: 50% associated with achieving an Adjusted EBITDA margin target and 50% associated with achieving an Adjusted diluted earnings per share from continuing operations target. The number of performance share units that vest will be between 0% and 200% of the grant date amount of 0.7 million performance share units. In November 2014, 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 or its cash equivalent upon achievement of certain performance and time vesting criteria. The fair value of each performance share unit was $13.74 , which was the company’s share price on the grant date of December 1, 2014. The Board of Directors also approved a grant of 0.4 million restricted share units to these executives. The restricted share units vest at the earlier of three years from the date of grant or upon termination of employment with the company under certain circumstances. The fair value of each restricted share unit was $13.74 , which was the company’s share price on the grant date of December 1, 2014. The actual number of performance share units that will vest depends upon the company’s performance relative to the established performance metrics for the three -year performance period of October 1, 2014 to September 30, 2017, measured at the end of the performance period. The number of performance share units will depend on Adjusted EBITDA margin and Adjusted diluted earnings per share from continuing operations at the following weights: 75% associated with achieving an Adjusted EBITDA margin target and 25% associated with achieving an Adjusted diluted earnings per share from continuing operations target. The number of performance share units that vest will be between 0% and 200% of the grant date amount of 0.6 million performance share units. In November 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 or its cash equivalent upon achievement of certain performance and time vesting criteria. The fair value of each performance share unit was $7.97 , which was the company’s share price on the grant date of December 1, 2013. The actual number of performance share units that will vest depends 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 performance share units will depend on meeting the established M2016 goals at the following weights: 50% associated with achieving an Adjusted EBITDA margin target, 25% associated with achieving a net debt including retirement benefit liabilities target, and 25% associated with achieving an incremental booked revenue target. The number of performance share units that vest will be between 0% and 200% of the grant date amount of 1.8 million performance share units including incremental share units that were issued subsequent to the December 1, 2013 grant date. There were 1.9 million and 1.4 million shares related to these performance share units included in the diluted earnings per share calculation for the three and nine months ended June 30, 2016 , respectively, as certain payout thresholds were achieved in the third quarter of fiscal year 2016 relative to the Adjusted EBITDA, net debt reduction and incremental booked revenue targets. There were 0.9 million and 0.8 million shares related to these performance share units included in the diluted earnings per share calculation for the three and nine months ended June 30, 2015 , respectively, as certain payout thresholds were achieved in the third quarter of fiscal year 2015. For the three months ended June 30, 2016 , the dilutive impact of previously issued restricted shares, restricted share units, and performance share units was 2.2 million , compared to 1.8 million share units for the same period in the prior fiscal year. For the nine months ended June 30, 2016 , the dilutive impact of previously issued restricted shares, restricted share units, and performance share units was 1.9 million , compared to 2.0 million share units for the same period in the prior fiscal year. For the three and nine months ended June 30, 2016 , compensation cost related to restricted shares, restricted share units, performance share units and stock options was $2 million and $8 million , respectively, compared to $3 million and $8 million , respectively for the three and nine months ended June 30, 2015 . For each of the three- and nine-month period ended June 30, 2016 , options to purchase 0.3 million shares of common stock, were excluded in the computation of diluted earnings per share because their exercise price exceeded the average market price for the periods and thus their inclusion would be anti-dilutive. For the three and nine months ended June 30, 2016 the company’s convertible senior unsecured notes were excluded from the computation of diluted earnings per share, as the company’s average stock price during this period was less than conversion price for the notes. For the three and nine months ended June 30, 2015 , 1.5 million and 1.3 million shares, respectively, were included in the computation of diluted earnings per share because the average stock price during this period exceeded the conversion price for the 7.875 percent convertible notes due 2026.

New Accounting Standards

New Accounting Standards	9 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards Accounting standards to be implemented In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments including accounts receivable. The ASU also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The amendments in this update are required to be adopted by public business entities with fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The ASU clarifies the assessment of the likelihood that revenue will be collected from a contract, the guidance for presenting sales taxes and similar taxes, and the timing for measuring customer payments that are not in cash. The ASU also establishes a practical expedient for contract modifications at the transition. The amendments in this update affect the guidance in ASU 2014-09, which is not effective yet. The effective date and the transition requirements for the amendments in ASU 2016-12 are the same as the effective date and transition requirements in ASU 2014-09 as described below. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update). The ASU was issued to remove from the Codification certain SEC staff guidance that the SEC staff stated would be rescinded: Revenue and Expense Recognition for Freight Services in Process; Accounting for Shipping and Handling Fees and Costs; and Accounting for Consideration Given by a Vendor to a Customer (including a Reseller of the Vendor’s Products). The amendments in this update affect the guidance in ASU 2014-09, which is not effective yet. The effective date and the transition requirements for the amendments in ASU 2016-11 are the same as the effective date and transition requirements in ASU 2014-09 as described below. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In April, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing. The ASU provides guidance regarding the identification of performance and licensing obligations. The amendments in this update affect the guidance in ASU 2014-09, which is not effective yet. The effective date and the transition requirements for the amendments in ASU 2016-10 are the same as the effective date and transition requirements in ASU 2014-09 as described below. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The ASU intends to simplify how share-based payments are accounted for, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company is assessing the potential impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) to clarify certain aspects of the principal-versus-agent guidance in its new revenue recognition standard. The amendments in this update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in ASU 2016-08 are the same as the effective date and transition requirements of ASU 2014-09. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting. The ASU will eliminate the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815), Contingent Put and Call Options in Debt Instruments. The ASU clarifies that an exercise contingency itself does not need to be evaluated to determine whether it is in an embedded derivative, just the underlying option.The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The update clarifies that a change in a counterparty to a derivative instrument designated as a hedging instrument would not require the entity to dedesignate the hedging relationship and discontinue the application of hedge accounting. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The update will require lessees to recognize a right-of-use asset and lease liability for substantially all leases. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2018, including interim periods within those fiscal periods. Early adoption is permitted. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2019 and is currently assessing the potential impact of this new guidance on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance is effective for fiscal periods beginning after December 15, 2017, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, as part of its Simplification Initiative, which updates Income Taxes (Topic 740) guidance to eliminate the requirement for an entity to separate deferred tax liabilities and tax assets between current and noncurrent amounts in a classified balance sheet. Deferred taxes will be presented as noncurrent under the new standard. The guidance is effective for fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company plans to implement this guidance in the fourth quarter of fiscal year 2016. The impact as of June 30, 2016 would be a reclassification between current and non current deferred tax assets of $17 million . In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires entities that measure inventory using first-in, first-out (FIFO) or average cost to measure inventory at the lower of cost and net realizable value. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. The company is assessing 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), which provides guidance about management's responsibility in evaluating whether there is substantial doubt relating to an entity’s ability to continue as a going concern and to provide related footnote disclosures as applicable. ASU 2014-15 is effective for the interim and fiscal periods ending after December 15, 2016. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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. This guidance requires that an award with a performance target that affects vesting, and that could be achieved after the requisite service period, such as when an employee retires, but may still vest if and when the performance target is achieved, be treated as an award with performance conditions that affect vesting and the company apply existing guidance under ASC Topic 718, Compensation - Stock Compensation. The guidance is effective for fiscal periods beginning after December 15, 2015, including interim periods within those fiscal periods and may be applied either prospectively or retrospectively. The company is assessing the potential impact of this new guidance on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service and requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 was originally effective for fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year making it effective for fiscal periods beginning after December 15, 2017, including interim periods within those fiscal periods, while also providing for early adoption but not before the original effective date. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. Accounting standards implemented during fiscal year 2016 In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which updates Business Combination (Topic 805) guidance to eliminate the requirement to restate prior period financial statements for measurement period adjustments. The guidance should be applied prospectively to measurement period adjustments that occur after the effective date. The guidance is effective for fiscal periods beginning after December 15, 2015, including interim periods within those fiscal periods. Early adoption is permitted. The company adopted this standard in the first quarter of the fiscal year 2016. This guidance did not have a material impact on the company's consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This guidance changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The guidance also requires new disclosure of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This guidance is to be applied prospectively and is effective for fiscal periods beginning on or after December 15, 2014, including interim periods within those fiscal periods. The company adopted this guidance in the first quarter of fiscal year 2016. The impact of this new guidance on the company's consolidated financial statements is dependent upon future business divestitures. Previous divestitures and amounts currently included in discontinued operations were not impacted.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations Results of discontinued operations are summarized as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Sales $ — $ — $ — $ 1 Loss before income taxes $ (1 ) $ (2 ) $ (5 ) $ (1 ) Benefit from income taxes — — 1 — Loss from discontinued operations attributable to Meritor, Inc. $ (1 ) $ (2 ) $ (4 ) $ (1 ) Loss from discontinued operations attributable to the company for the three and nine months ended June 30, 2016 and June 30, 2015 was primarily attributable to changes in estimates related to legal costs incurred in connection with previously divested businesses. Total discontinued operations assets as of June 30, 2016 and September 30, 2015 were $1 million and $4 million , respectively, and total discontinued operations liabilities as of June 30, 2016 and September 30, 2015 were $6 million and $10 million , respectively.

Goodwill

Goodwill	9 Months Ended
	Jun. 30, 2016
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. A summary of the changes in the carrying value of goodwill by the company’s two reportable segments are presented below (in millions): Commercial Truck & Industrial Aftermarket & Trailer Total Beginning balance at September 30, 2015 $ 239 $ 163 $ 402 Foreign currency translation (8 ) (2 ) (10 ) Balance at June 30, 2016 $ 231 $ 161 $ 392

Restructuring Costs

Restructuring Costs	9 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs Restructuring reserves, primarily related to unpaid employee termination benefits were $11 million at June 30, 2016 and $10 million at September 30, 2015 , respectively. The changes in restructuring reserves for the nine months ended June 30, 2016 and 2015 are as follows (in millions): Employee Termination Benefits Plant Shutdown & Other Total Beginning balance at September 30, 2015 $ 10 $ — $ 10 Activity during the period: Charges to continuing operations 8 1 9 Cash payments – continuing operations (8 ) — (8 ) Total restructuring reserves at June 30, 2016 10 1 11 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at June 30, 2016 $ 8 $ 1 $ 9 Balance at September 30, 2014 $ 11 $ — $ 11 Activity during the period: Charges to continuing operations 15 — 15 Cash payments – continuing operations (10 ) — (10 ) Other (3 ) — (3 ) Total restructuring reserves at June 30, 2015 13 — 13 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at June 30, 2015 $ 11 $ — $ 11 2016 Restructuring Costs: During the first nine months of fiscal year 2016, the company recorded restructuring costs of $9 million , $3 million of which was recorded in the first six months of fiscal year 2016 and was associated with labor reduction programs in both the Commercial Truck & Industrial and Aftermarket & Trailer segments. During the third quarter of fiscal year 2016, the company approved restructuring plans in the North American and European aftermarket businesses. The company expects to incur approximately $8 million of restructuring costs in the Aftermarket & Trailer segment primarily for severance. A restructuring charge of $5 million was recorded in third quarter of fiscal year 2016. Restructuring actions associated with these plans are expected to be completed in the first half of fiscal year 2017. Prior Period Costs: Consolidation of Certain Operations in 2015: During the first quarter of fiscal year 2015, the company recorded severance charges of $3 million associated with the elimination of approximately 50 hourly and 20 salaried positions in the Commercial Truck & Industrial segment in connection with the consolidation of certain gearing and machining operations in North America. Restructuring actions associated with this program were substantially complete as of September 30, 2015. During the third quarter of fiscal year 2015, the company notified approximately 40 hourly and salaried employees in the Commercial Truck & Industrial segment that their positions were being eliminated due to the planned closure of a North America Manufacturing facility. The company recorded $2 million of severance charges during the third quarter of fiscal year 2015. Restructuring actions associated with this plan were completed by the end of fiscal year 2015. South America Labor Reduction II: During the third quarter of fiscal year 2015, a restructuring plan to further reduce headcount in South America was approved by the local union. This restructuring plan was in response to the then-current economic environment in South America, which was weakening in 2015. With this restructuring plan, the company eliminated approximately 230 hourly and 20 salaried positions and incurred $6 million in employee separation costs in the Commercial Truck & Industrial segment. Restructuring actions associated with this plan were complete by the end of fiscal year 2015. Closure of a Corporate Engineering Facility in 2015: During the second quarter of fiscal year 2015, the company notified approximately 30 salaried and contract employees that their positions were being eliminated due to the planned closure of a corporate engineering facility. The company recorded severance expenses of $1 million associated with this plan for the six months ended March 31, 2015. Restructuring actions associated with this program were substantially complete as of September 30, 2015. European Labor Reduction in 2015: During the second quarter of fiscal year 2015, the company initiated a European headcount reduction plan intended to reduce labor costs in response to continued soft markets in the region. The company eliminated approximately 20 hourly and 20 salaried positions and recorded $2 million of expected severance expenses in the Commercial Truck & Industrial segment in the second quarter of fiscal year 2015. Restructuring actions associated with this program were substantially complete as of June 30, 2015.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For each interim reporting period, the company makes an estimate of the effective tax rate expected to be applicable for the full fiscal year pursuant to FASB ASC Topic 740-270, “Accounting for Income Taxes in Interim Periods.” The rate so determined is used in providing for income taxes on a year-to-date basis. Jurisdictions with a projected loss for the year or an actual year-to-date loss where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The impact of including these jurisdictions on the quarterly effective rate calculation could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections. Income tax expense (benefit) is allocated among continuing operations, discontinued operations and other comprehensive income ("OCI"). Such allocation is applied by tax jurisdiction, and in periods in which there is a pre-tax loss from continuing operations and pre-tax income in another category, such as discontinued operations or OCI, income tax expense is allocated to the other sources of income, with a related benefit recorded in continuing operations. 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-percent-owned subsidiaries in France, the United Kingdom and certain other countries. In evaluating its ability to recover these net deferred tax assets, the company utilizes a consistent approach which considers its historical operating results, including an assessment of the degree to which any gains or losses are driven by items that are unusual in nature, and tax planning strategies. In addition, the company reviews changes in near-term market conditions and other factors that impact future operating results. Continued improvement in the company’s operating results could lead to reversal of some or all of these valuation allowances in the future. However, the company continues to maintain the valuation allowances in these jurisdictions, as the company believes the negative evidence that it will be able to recover these net deferred tax assets continues to outweigh the positive evidence. In addition, the company performs the same analysis in jurisdictions not in a valuation allowance to determine if a valuation allowance is required. The company has experienced profitability in the U.S. in recent years. Given the historical volatility in the U.S. Class 8 truck market, the company believes that sustaining profitability for a reasonable period of time is necessary before determining that a valuation allowance should be reversed. To the extent positive trends and forecasts of future profitability continue, including the company’s 2017 annual operating plan, management’s conclusion regarding the need for a valuation allowance could change, leading to a reversal of all or a portion of the valuation allowance. A reversal of the company’s valuation allowance could result in a significant benefit to earnings. The company anticipates the potential range of a full reversal to be approximately $500 million to $600 million . For the three months ended June 30, 2016, the company had approximately $19 million of net pre-tax income compared to $6 million of net pre-tax income in the same period in fiscal year 2015 in tax jurisdictions in which tax expense (benefit) is not recorded. For the nine months ended June 30, 2016, the company had approximately $47 million of net pre-tax income compared to $42 million of net pre-tax income in the same period in fiscal year 2015 in tax jurisdictions in which tax expense is not recorded. Income arising from these jurisdictions resulted in an adjustment to the valuation allowance, rather than an adjustment to income tax expense.

Accounts Receivable Factoring a

Accounts Receivable Factoring and Securitization	9 Months Ended
	Jun. 30, 2016
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 Swedish subsidiaries. On June 15, 2016, Meritor extended its Swedish factoring facility with Nordea Bank until October 31, 2016. All other terms of the agreement remain unchanged. Under this arrangement, the company can sell up to, at any point in time, €155 million ( $172 million ) of eligible trade receivables. The company is working to extend this arrangement before its current maturity date. The receivables under this program are sold at face value and are excluded from the condensed consolidated balance sheet. The company had utilized €113 million ( $125 million ) and €108 million ( $121 million ) of this accounts receivable factoring facility as of June 30, 2016 and September 30, 2015 , respectively. The above facility is backed by a 364 -day liquidity commitment from Nordea Bank which extends through December 2016. The commitment is subject to standard terms and conditions for this type of arrangement. U.S. Factoring Facility: On February 19, 2016, the company entered into a new Receivables Purchase Agreement with Nordea Bank, replacing a similar agreement that was set to expire February 28, 2016. Under this arrangement, which now terminates on February 19, 2019, the company can sell up to, at any point in time, €80 million ( $89 million ) of eligible trade receivables from AB Volvo and its U.S. subsidiaries through one of the company's U.S. subsidiaries. The amount of eligible receivables sold may exceed Nordea Bank’s commitment at Nordea Bank’s discretion. The receivables under this program are sold at face value and are excluded from the condensed consolidated balance sheet. The company had utilized €47 million ( $53 million ) and €74 million ( $83 million ) of this accounts receivable factoring facility as of June 30, 2016 and September 30, 2015 , respectively. 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 expires in February 2018, the company can sell up to, at any point in time, €25 million ( $28 million ) of eligible trade receivables. The receivables under this program are sold at face value and are excluded from the condensed consolidated balance sheet. The company had utilized €8 million ( $8 million ) and €8 million ( $8 million ) of this accounts receivable factoring facility as of June 30, 2016 and September 30, 2015 , 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 ( $33 million ) of eligible trade receivables. The receivables under this program are sold at face value and are excluded from the condensed consolidated balance sheet. The company had utilized €20 million ( $22 million ) and €22 million ( $24 million ) of this accounts receivable factoring facility as of June 30, 2016 and September 30, 2015 , 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. In addition to the above facilities, a number 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 condensed consolidated balance sheet. The amount of factored receivables excluded from accounts receivable under these arrangements was $14 million and $18 million at June 30, 2016 and September 30, 2015 , respectively. Total costs associated with all of the off-balance sheet arrangements described above were $2 million and $1 million in the three months ended June 30, 2016 and 2015 , respectively, and $6 million and $4 million in the nine months ended June 30, 2016 and 2015 , respectively, and are included in selling, general and administrative expenses in the condensed consolidated statements of operations. On-balance sheet arrangements The company has a $100 million U.S. accounts receivables securitization facility. On December 4, 2015, the company entered into an amendment which extends the facility expiration date to December 4, 2018. The maximum permitted priority-debt-to-EBITDA ratio as of the last day of each fiscal quarter under the facility is 2.25 to 1.00 . This program is provided by PNC Bank, National Association, 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. accounts receivable 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 condensed consolidated balance sheet. At June 30, 2016 and September 30, 2015 , no amounts, including letters of credit, were outstanding under this program. This securitization program contains a cross default to the revolving credit facility. At certain times during any given month, the company may sell eligible accounts receivable under this program to fund intra-month working capital needs. In such months, the company would then typically utilize the cash received from customers throughout the month to repay the borrowings under the program. Accordingly, during any given month, the company may borrow under this program, amounts exceeding the amounts shown as outstanding at fiscal quarter ends.

Operating Cash Flow

Operating Cash Flow	9 Months Ended
	Jun. 30, 2016
Operating Cash Flow Disclosure [Abstract]
Operating Cash Flow	Operating Cash Flow The reconciliation of net income to cash flows provided by operating activities is as follows (in millions): Nine Months Ended June 30, 2016 2015 OPERATING ACTIVITIES Net income $ 101 $ 87 Less: Loss from discontinued operations, net of tax (4 ) (1 ) Income from continuing operations 105 88 Adjustments to income from continuing operations to arrive at cash provided by operating activities: Depreciation and amortization 48 49 Restructuring costs 9 15 Loss on debt extinguishment — 20 Gain on sale of property (2 ) (3 ) Equity in earnings of affiliates (26 ) (28 ) Pension and retiree medical expense 15 20 Other adjustments to income from continuing operations 7 8 Dividends received from equity method investments 29 26 Pension and retiree medical contributions (32 ) (36 ) Restructuring payments (8 ) (10 ) Changes in off-balance sheet accounts receivable factoring (30 ) 94 Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations 31 (111 ) Operating cash flows provided by continuing operations 146 132 Operating cash flows used for discontinued operations (2 ) (10 ) CASH PROVIDED BY OPERATING ACTIVITIES $ 144 $ 122

Inventories

Inventories	9 Months Ended
	Jun. 30, 2016
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): June 30, September 30, Finished goods $ 132 $ 133 Work in process 30 28 Raw materials, parts and supplies 173 177 Total $ 335 $ 338

Other Current Assets

Other Current Assets	9 Months Ended
	Jun. 30, 2016
Other Current Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets are summarized as follows (in millions): June 30, September 30, Current deferred income tax assets $ 19 $ 20 Asbestos-related recoveries (see Note 19) 13 13 Prepaid and other 21 17 Other current assets $ 53 $ 50

Net Property

Net Property	9 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Net Property	Net Property Net property is summarized as follows (in millions): June 30, September 30, Property at cost: Land and land improvements $ 30 $ 31 Buildings 218 214 Machinery and equipment 842 864 Company-owned tooling 116 116 Construction in progress 63 62 Total 1,269 1,287 Less: accumulated depreciation (841 ) (868 ) Net property $ 428 $ 419

Other Assets

Other Assets	9 Months Ended
	Jun. 30, 2016
Other Assets, Noncurrent [Abstract]
Other Assets	Other Assets Other assets are summarized as follows (in millions): June 30, September 30, Investments in non-consolidated joint ventures $ 98 $ 96 Asbestos-related recoveries (see Note 19) 35 42 Unamortized revolver debt issuance costs 8 10 Capitalized software costs, net 27 28 Non-current deferred income tax assets, net 26 28 Assets for uncertain tax positions 3 3 Prepaid pension costs 112 110 Other 16 15 Other assets $ 325 $ 332 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. 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 June 30, 2016 and September 30, 2015 , the company’s investment in the joint venture was $43 million and $42 million , respectively.

Other Current Liabilities

Other Current Liabilities	9 Months Ended
	Jun. 30, 2016
Other Current Liabilities Disclosure [Abstract]
Other current liabilities	Other Current Liabilities Other current liabilities are summarized as follows (in millions): June 30, September 30, Compensation and benefits $ 110 $ 122 Income taxes 10 9 Taxes other than income taxes 22 23 Accrued interest 15 14 Product warranties 18 22 Environmental reserves (see Note 19) 8 9 Restructuring (see Note 6) 9 7 Asbestos-related liabilities (see Note 19) 17 17 Indemnity obligations (see Note 19) 2 2 Other 56 54 Other current liabilities $ 267 $ 279 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 relationships 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): Nine Months Ended June 30, 2016 2015 Total product warranties – beginning of period $ 48 $ 51 Accruals for product warranties 11 11 Payments (13 ) (13 ) Change in estimates and other (1 ) 1 Total product warranties – end of period 45 50 Less: Non-current product warranties (27 ) (27 ) Product warranties – current $ 18 $ 23

Other Liabilities

Other Liabilities	9 Months Ended
	Jun. 30, 2016
Other Liabilities Disclosure [Abstract]
Other liabilities	Other Liabilities Other liabilities are summarized as follows (in millions): June 30, September 30, Asbestos-related liabilities (see Note 19) $ 121 $ 109 Restructuring (see Note 6) 2 3 Non-current deferred income tax liabilities 101 99 Liabilities for uncertain tax positions 14 15 Product warranties (see Note 14) 27 26 Environmental (see Note 19) 6 8 Indemnity obligations (see Note 19) 12 13 Other 32 32 Other liabilities $ 315 $ 305

Long-Term Debt

Long-Term Debt	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-Term Debt, net of discounts where applicable, is summarized as follows (in millions): June 30, September 30, 4.625 percent convertible notes due 2026 (1) $ — $ 55 4.0 percent convertible notes due 2027 (2)(4) 142 142 7.875 percent convertible notes due 2026 (2)(5) 129 127 6.75 percent notes due 2021 (3)(6) 271 270 6.25 percent notes due 2024 (3)(7) 442 442 Capital lease obligation 17 17 Export financing arrangements and other 9 18 Unamortized discount on convertible notes (16 ) (20 ) Subtotal 994 1,051 Less: current maturities (14 ) (15 ) Long-term debt $ 980 $ 1,036 (1) The 4.625 percent convertible notes contained a put and call feature, which allowed for earlier redemption beginning in 2016. As of June 30, 2016, all of these notes were redeemed. (2) The 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2019 and 2020, respectively. (3) The 6.75 percent and 6.25 percent notes contain a call option, which allows for early redemption. (4) The 4.0 percent convertible notes due 2027 are presented net of $1 million unamortized issuance costs as of June 30, 2016 and September 30, 2015. (5) The 7.875 percent convertible notes due 2026 are presented net of $2 million and $3 million unamortized issuance costs as of June 30, 2016 and September 30, 2015 , respectively, an d $9 million and $10 million original issuance discount as of June 30, 2016 and September 30, 2015 . (6) The 6.75 percent notes due 2021 are presented net of $4 million and $5 million unamortized issuance costs as of June 30, 2016 and September 30, 2015 . (7) The 6.25 percent notes due 2024 are presented net of $8 million unamortized issuance costs as of June 30, 2016 and September 30, 2015 . Revolving Credit Facility On June 2, 2016, the company entered into a third amendment of its senior secured revolving credit facility. The amendment increased the 2019 revolving loan commitment to $ 466 million , permits the company to execute certain internal restructuring plans, including the release of certain guarantors when required by such plans, and reset covenant basket amounts. Pricing and maturity dates remain unchanged. Subsequent to the amendment, a certain lender converted its $20 million 2017 revolving loan commitment to a 2019 revolving loan commitment and is now subject to the terms of a 2019 lender. Pursuant to the revolving credit agreement, the company now has a $506 million revolving credit facility, $20 million of which matures in April 2017 for banks not electing to extend their commitments under the revolving credit facility, and $486 million of which matures in February 2019. 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 or less as of the last day of each fiscal quarter throughout the term of the agreement. 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 1.0 x the collateral test value. The collateral test is performed on a quarterly basis. At June 30, 2016 , the revolving credit facility was collateralized by approximately $623 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. At June 30, 2016 , the margin over LIBOR rate was 325 basis points , and the commitment fee was 50 basis points . Overnight revolving credit loans are at the prime rate plus a margin of 225 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 22). No borrowings were outstanding under the revolving credit facility at June 30, 2016 and September 30, 2015. The amended and extended revolving credit facility includes $100 million of availability for the issuance of letters of credit. At June 30, 2016 and September 30, 2015, there were no letters of credit outstanding under the revolving credit facility. Debt Securities In December 2014, the company filed a shelf registration statement with the Securities and Exchange Commission, registering an unlimited amount of debt and/or equity securities that the company may offer in one or more offerings on terms to be determined at the time of sale. The December 2014 shelf registration statement superseded and replaced the shelf registration statement filed in February 2012, as amended. Issuance of Debt Securities - 2024 Notes On February 13, 2014, the company completed a public offering of debt securities consisting of the issuance of $225 million principal amount of 10-year, 6.25 percent notes due 2024 (the "Initial 2024 Notes"). The offering and sale were made pursuant to the company's February 2012 shelf registration statement. The Initial 2024 Notes were issued under the company's indenture dated as of April 1, 1998, as supplemented. The Initial 2024 Notes were issued at 100 percent of their principal amount. The proceeds from the sale of the Initial 2024 Notes were $225 million and, together with cash on hand, were primarily used to repurchase $250 million principal amount of the company’s previously outstanding 10.625 percent notes due 2018. On June 11, 2015, the company completed a public offering of an additional $225 million aggregate principal amount of 6.25 percent notes due 2024 (the "Additional 2024 Notes"), in an underwritten public offering pursuant to the company's December 2014 shelf registration statement. The proceeds from the sale of the Additional 2024 Notes were used to replenish available cash used to pay $179 million , including premium and fees, to repurchase $110 million principal amount at maturity of the company's 7.875 percent convertible notes due 2026. The company used the remaining net proceeds, along with cash on hand, to purchase annuities to satisfy its obligations under the company's Canadian and German pension plans. The Additional 2024 Notes constitute a further issuance of, and are fungible with, the $225 million aggregate principal amount of Initial 2024 Notes that the company issued on February 13, 2014 and form a single series with the Initial 2024 Notes (collectively, the "2024 Notes"). The Additional 2024 Notes have terms identical to the Initial 2024 Notes, other than issue date and offering price, and have the same CUSIP number as the Initial 2024 Notes. Upon completion of the offering, the aggregate principal amount of outstanding notes of this series was $450 million . 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. 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 103.125% 2020 102.083% 2021 101.042% 2022 and thereafter 100.000% Prior to February 15, 2017, the company may redeem, at its option, from time to time, up to approximately $79 million 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 approximately $146 million aggregate principal amount of the 2024 Notes remain 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. Repurchase of Debt Securities In fiscal year 2015, the company repurchased $110 million principal amount at maturity of the company's 7.875 percent convertible notes, of which $85 million were repurchased at a premium equal to approximately 64 percent of their principal amount in the third quarter of 2015, and $25 million were purchased at a premium equal to approximately 58 percent of their principal amount in the fourth quarter of 2015. The 7.875 percent convertible notes contain a conversion to equity feature which can be settled in cash upon conversion. Accordingly, the liability and equity components are required to be separately accounted for upon recognition. Subsequently, upon derecognition of the convertible notes, the total cash consideration paid by the company is required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Of the fiscal year 2015 total cash consideration of $179 million paid, $121 million and $58 million were allocated between the liability and equity components, respectively. The repurchase of $110 million principal amount at maturity of the company's 7.875 percent convertible notes was accounted for as an extinguishment of debt, and accordingly, the company recognized a net loss on debt extinguishment of $24 million , which consisted of $14 million of unamortized discount and deferred issuance costs and $10 million of premium. The net loss on debt extinguishment is included in Interest expense, net in the consolidated statement of operations. The repurchases were made under the company's 2026 convertible notes repurchase authorization. As of June 30, 2015, the company had repurchased $19 million principal amount of the company's 4.0 percent convertible notes due 2027. In the third quarter of fiscal year 2015, $4 million of the notes were repurchased at a premium equal to approximately 5 percent of their principal amount. In the second quarter of fiscal year 2015, $15 million of the notes were repurchased at a premium equal to approximately 6 percent of their principal amount. The repurchases of the $19 million principal amount of the company's 4.0 percent convertible notes due 2027 was accounted for as an extinguishment of debt, and accordingly, the company recognized a net loss on debt extinguishment of $1 million . The net loss on debt extinguishment is included in interest expense, net in the consolidated statement of operations. The repurchase was made under the company's equity and equity-linked repurchase authorizations (see Note 20). On March 1, 2016 , substantially all of the $55 million of principal amount 4.625 percent convertible notes were repurchased at 100 percent of the face value of the notes. On April 15, 2016, the remaining 4.625 percent convertible notes were repurchased. As of June 30, 2016 none of the 4.625 percent convertible notes remain outstanding. The repurchases were made under the company's equity and equity linked repurchase authorizations (see Note 20). The repurchase program under these authorizations was substantially complete as of June 30, 2016 . 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 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 . The company had $7 million and $10 million outstanding under this capital lease arrangement as of June 30, 2016 and September 30, 2015, respectively. In addition, the company had another $10 million and $7 million outstanding through other capital lease arrangements at June 30, 2016 and September 30, 2015, respectively. 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 had 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. There were $22 million and $24 million of letters of credit outstanding under this facility at June 30, 2016 and September 30, 2015, respectively. The company had another $5 million and $6 million of letters of credit outstanding through other letter of credit facilities at June 30, 2016 and September 30, 2015 , respectively. Export Financing Arrangements The company entered into a number of export financing arrangements through its Brazilian subsidiary during fiscal year 2014. 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 was $9 million and $18 million outstanding under these arrangements at June 30, 2016 and September 30, 2015, respectively. Other One of the company's consolidated joint ventures in China participates in a bills of exchange program to settle its obligations with its trade suppliers. These programs are common in China and generally require the participation of local banks. Under these programs, the company's joint venture issues notes payable through the participating banks to its trade suppliers. If the issued notes payable remain unpaid on their respective due dates, this could constitute an event of default under the company’s revolving credit facility if the defaulted amount exceeds $35 million per bank. As of June 30, 2016 and September 30, 2015, the company had $ 9 million and $13 million , respectively, outstanding under this program at more than one bank.

Financial Instruments

Financial Instruments	9 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Financial Instruments Fair values of financial instruments are summarized as follows (in millions): June 30, 2016 September 30, 2015 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 129 $ 129 $ 193 $ 193 Short-term debt 14 14 15 15 Long-term debt 980 947 1,036 1,123 Foreign exchange forward contracts (asset) — — 1 1 Foreign exchange forward contracts (liability) 1 1 3 3 Short-term foreign currency option contracts (asset) — — 1 1 Long-term foreign currency option contracts (asset) — — 1 1 The following table reflects the offsetting of derivative assets and liabilities (in millions): June 30, 2016 September 30, 2015 Gross Gross Amounts Net Amounts Gross Gross Amounts Net Amounts Derivative Asset Foreign exchange forward contract 1 (1 ) — 1 — 1 Derivative Liabilities Foreign exchange forward contract 2 (1 ) 1 3 — 3 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 June 30, 2016 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 129 $ — $ — Short-term debt — — 14 Long-term debt — 935 12 Foreign exchange forward contracts (liability) — 1 — Fair value of financial instruments by the valuation hierarchy at September 30, 2015 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 193 $ — $ — Short-term debt — — 15 Long-term debt — 1,102 21 Foreign exchange forward contracts (asset) — 1 — Foreign exchange forward contracts (liability) — 3 — Short-term foreign currency option contracts (asset) — — 1 Long-term foreign currency option contracts (asset) — — 1 The tables below provide a reconciliation of changes in fair value of the Level 3 financial assets and liabilities measured at fair value in the condensed consolidated balance sheet for the three and nine months ended June 30, 2016 and 2015 , respectively. No transfers of assets between any of the Levels occurred during these periods. Three months ended June 30, 2016 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of March 31, 2016 $ — $ — $ — Total unrealized gains (losses): Included in other income — — — Transfer in and / or out of Level 3 (1) — — — Fair Value as of June 30, 2016 $ — $ — $ — Three months ended June 30, 2015 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of March 31, 2015 $ 2 $ 2 $ 4 Total unrealized gains (losses): Included in cost of sales (1 ) — (1 ) Total realized gains (losses): Included in other income (1 ) — (1 ) Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term — (1 ) (1 ) Fair Value as of June 30, 2015 $ — $ 1 $ 1 Nine months ended June 30, 2016 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of September 30, 2015 $ 1 $ 1 $ 2 Total unrealized gains (losses): Included in other income (2 ) — $ (2 ) Included in cost of sales — (1 ) (1 ) Purchases, issuances, sales and settlements: Purchases 1 — $ 1 Transfer in and / or out of Level 3 (1) — — — Fair Value as of June 30, 2016 $ — $ — $ — Nine months ended June 30, 2015 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of September 30, 2014 $ 2 $ 1 $ 3 Total unrealized gains (losses): Included in cost of sales (1 ) — (1 ) Total realized gains (losses): Included in other income 2 — 2 Included in cost of sales 3 — 3 Purchases, issuances, sales and settlements: Purchases 5 — 5 Settlements (10 ) (1 ) (11 ) Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term (1 ) 1 — Fair Value as of June 30, 2015 $ — $ 1 $ 1 (1) Transfers as of the last day of the reporting period. 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 June 30, 2016 or September 30, 2015 . 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. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of changes in the fair value of the contracts is recorded in Accumulated Other Comprehensive Loss in the statement of shareowners’ equity and is recognized in operating income when the underlying forecasted transaction impacts earnings. Foreign currency option contracts — The company uses option contracts to mitigate foreign currency exposure on expected future Indian rupee denominated purchases. The contracts were entered into during the third quarter of fiscal year 2014 with effective dates from the start of fiscal year 2015 through the end of fiscal year 2017. In the second quarter of fiscal year 2015, the company monetized its outstanding foreign currency option contracts and entered into a new series of foreign currency option contracts with effective dates from the start of the third quarter of fiscal year 2015 through the end of fiscal year 2017. The fair value of the 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 utilizing market instruments with similar quality and maturity characteristics. The company did not elect hedge accounting for these derivatives. Changes in fair value associated with these contracts are recorded in cost of sales in the consolidated statement of operations. In the first nine months of fiscal year 2016, net unrealized losses totaled $1 million , substantially all of which occurred during the first quarter of fiscal year 2016. From time to time, the company will hedge against its foreign currency exposure related to translations to U.S. dollars of financial results denominated in foreign currencies. In the first quarter of fiscal year 2015, the company entered into a series of foreign currency option contracts with a total notional amount of $48 million to reduce volatility in the translation of Brazilian real earnings to U.S. dollars. These foreign currency option contracts did not qualify for a hedge accounting election but were expected to mitigate foreign currency translation exposure of Brazilian real earnings to U.S. dollars. In the second quarter of fiscal year 2015, the company monetized these outstanding foreign currency option contracts and entered into a new series of foreign currency option contracts with effective dates from the start of the third quarter of fiscal year 2015 through the end of fiscal year 2015. In the third and fourth quarters of fiscal year 2015, the company monetized these outstanding foreign currency option contracts. As of June 30, 2016 and September 30, 2015, there were no Brazilian real foreign currency option contracts outstanding. Also, in the fourth quarter of fiscal year 2015, the company entered into a series of foreign currency contracts with total notional amounts of $30 million and $27 million to mitigate the risk of volatility in the translation of Swedish krona and euro earnings to U.S. dollars, respectively. During the first quarter of fiscal year 2016, the company entered into additional foreign currency contracts with total notional amounts of $19 million and $21 million to mitigate the risk of volatility in the translation of the Swedish krona and euro earnings to U.S. dollars, respectively. These foreign currency option contracts do not qualify for a hedge accounting election but are expected to mitigate foreign currency translation exposure of Swedish krona and euro earnings to U.S. dollars during fiscal year 2016. For the three and nine months ended June 30, 2016 , net unrealized losses totaled $2 million . The fair value of the 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 utilizing market instruments with similar quality and maturity characteristics. Changes in fair value associated with these contracts are recorded in the consolidated statement of operations in other income, net.

Retirement Benefit Liabilities

Retirement Benefit Liabilities	9 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Retirement Benefit Liabilities	Retirement Benefit Liabilities Retirement benefit liabilities consisted of the following (in millions): June 30, September 30, Retiree medical liability $ 424 $ 438 Pension liability 202 219 Other 14 14 Subtotal 640 671 Less: current portion (included in compensation and benefits, Note 14) (39 ) (39 ) Retirement benefits $ 601 $ 632 The components of net periodic pension and retiree medical expense included in Selling, general and administrative expenses for the three months ended June 30 are as follows (in millions): 2016 2015 Pension Retiree Medical Pension Retiree Medical Service cost $ — $ — $ 1 $ — Interest cost 16 4 17 5 Assumed return on plan assets (24 ) — (28 ) — Amortization of prior service costs — — — (1 ) Recognized actuarial loss 6 3 6 6 Total expense (income) $ (2 ) $ 7 $ (4 ) $ 10 The components of net periodic pension and retiree medical expense included in Selling, general and administrative expenses for the nine months ended June 30 are as follows (in millions): 2016 2015 Pension Retiree Medical Pension Retiree Medical Service cost $ — $ — $ 1 $ — Interest cost 49 13 53 15 Assumed return on plan assets (74 ) — (84 ) — Amortization of prior service costs — — — (1 ) Recognized actuarial loss 18 9 20 16 Total expense (income) $ (7 ) $ 22 $ (10 ) $ 30

Contingencies

Contingencies	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016 to be approximately $17 million , of which $2 million is probable and 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. 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 June 30, 2016 to be approximately $31 million , of which $12 million is probable and recorded as a liability. 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 0.5 to 2.5 percent and is approximately $8 million at June 30, 2016 . The undiscounted estimate of these costs is approximately $8 million . The following are the components of the Superfund and non-Superfund environmental reserves (in millions): Superfund Sites Non-Superfund Sites Total Beginning balance at September 30, 2015 $ 2 $ 14 $ 16 Payments and other — (2 ) (2 ) Accruals — — — Balance at June 30, 2016 $ 2 $ 12 $ 14 Environmental reserves are included in Other Current Liabilities (see Note 14) and Other Liabilities (see Note 15) in the condensed 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 5,800 and 5,600 pending asbestos-related claims at June 30, 2016 and September 30, 2015 , 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): June 30, September 30, Pending and future claims $ 71 $ 71 Billed but unpaid claims 2 3 Asbestos-related liabilities $ 73 $ 74 Asbestos-related insurance recoveries $ 34 $ 41 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 11, 13, 14 and 15). Pending and Future Claims: Maremont has 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. Bates White prepares these cost estimates annually in September. 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. As of September 30, 2015, 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 $71 million to $100 million . Management recognized a liability of $71 million as of each of June 30, 2016 and September 30, 2015 for pending and future claims over the next ten years . 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 that its settled insurance coverage will not be sufficient to fully offset its expected asbestos-related liabilities through the end of the ten -year forecasted liability period. 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 2025; • 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 $34 million and $41 million as of June 30, 2016 and September 30, 2015 , 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. The difference between the estimated liability and insurance receivable is primarily related to exhaustion of settled insurance coverage within the forecasted period and proceeds from settled insurance policies. Amounts received from insurance settlements generally reduce recorded insurance receivables. Maremont maintained insurance coverage with other insurance carriers that management believes also covers indemnity and defense costs. During fiscal year 2013, Maremont re-initiated lawsuits against these carriers, seeking a declaration of its rights to coverage for asbestos claims and to facilitate an orderly and timely collection of insurance proceeds. One of these insurance policies has been partially settled in cash. On December 12, 2015, Maremont received $17 million , of which $5 million was recognized as reduction in asbestos expense and $12 million was recorded as a liability to the insurance carrier as it is required to be returned to the carrier if additional asbestos liability is not incurred. The settlement also provides additional recovery for Maremont if certain spending thresholds are met. 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 firms, jurisdictions and diseases; 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 3,200 and 3,000 pending active asbestos claims in lawsuits that name AM, together with many other companies, as defendants at June 30, 2016 and September 30, 2015 , 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): June 30, September 30, Pending and future claims $ 55 $ 55 Billed but unpaid claims 2 3 Asbestos-related liabilities $ 57 $ 58 Asbestos-related insurance recoveries $ 14 $ 14 Pending and Future Claims: The company has 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. Bates White prepares these cost estimates annually in September. As of September 30, 2015 , 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 $55 million to $74 million . Management recognized a liability for the pending and future claims over the next ten years of $55 million as of each of June 30, 2016 and September 30, 2015 . 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. 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 2025; • 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 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 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 was $14 million as of each of June 30, 2016 and September 30, 2015 . Included in these amounts are insurance receivables of $9 million as of each of June 30, 2016 and September 30, 2015 that 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 the 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 arrangement. 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'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. During the third quarter of fiscal year 2016, the company reached a settlement, relating to certain proofs of claim filed by the company under certain insurance policies, with an insolvent insurer for $5.5 million (the "allowed claim"). On June 17, 2016, the company entered into an assignment of claim (“Assignment”) with Macquarie Bank to assign the allowed claim the company had against the insolvent insurer. The Assignment was approved by the liquidator, which resulted in the company receiving $3 million in the third quarter of fiscal year 2016. Indemnifications 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. 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 June 30, 2016 and September 30, 2015 , the remaining estimated liability for this matter was approximately $12 million and $13 million , respectively. In connection with the sale of its interest in MSSC in October 2009, the company provided certain indemnities 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. At June 30, 2016 and September 30, 2015 , the company's exposure was approximately $1 million and $2 million , respectively, which is included in 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 The company identified certain sales transactions for which value added tax was potentially required to be remitted to certain tax jurisdictions for tax years 2009 through 2015. At June 30, 2016 and September 30, 2015 , the company’s estimate of the probable liability was $10 million . On June 24, 2014, the company filed a complaint in the Circuit Court for Oakland County Michigan against a supplier alleging that certain bearings supplied by the supplier for TL Trailer Axles were faulty, and as a result, the company suffered product liability damages and expenses with respect to vehicle recalls. On May 13, 2016, the company entered into a settlement agreement with the supplier pursuant to which the company received approximately $6 million in the third quarter of fiscal year 2016. The settlement does not relieve the company of its current liability for past or future claims related to TL Axles. The company has the right to seek future indemnification from the supplier with respect to any currently unasserted claims. In March 2016, the company was served with a complaint filed against the company and other defendants in the United States District Court for the Eastern District of Michigan. The complaint is a proposed class action and alleges that the company violated federal and state antitrust and other laws in connection with a former business of the company’s that manufactured and sold exhaust systems for automobiles. The alleged class is comprised of persons and entities that purchased or leased a passenger vehicle during a specified time period. In April, the Company was served with a virtually identical suit also naming the company as a defendant on behalf of a purported class of automobile dealers. The company is reviewing the complaints and developing its response and intends to vigorously defend the claims. At this point, the company cannot estimate the ultimate impact on the company, and there can be no assurance that the ultimate resolution of these matters will not have a material adverse effect on the consolidated financial position, results of operations or liquidity. In April 2016, the company was served with several complaints filed against the company and other defendants in the United States District Court for the Northern District of Mississippi. The complaints were amended in July 2016. These complaints allege damages, including diminution of property value, concealment/fraud and emotional distress resulting from alleged environmental pollution in and around a neighborhood in Grenada, Mississippi. Rockwell owned and operated a facility near the neighborhood from 1965 to 1985. The company filed answers to the complaints in July 2016. The company intends to vigorously defend the claims. The ultimate outcome of this litigation, and consequently, an estimate of the possible loss, if any, related to this litigation, cannot reasonably be determined at this time and no assurance can be given that the ultimate outcome would not materially adversely affect the company. In addition, various lawsuits, claims and proceedings, other than those specifically disclosed in the condensed 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.

Shareowners' Equity

Shareowners' Equity	9 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Shareowners' Equity	Shareowners' Equity Equity and Equity-Linked Repurchase Authorizations In June 2014, the company’s Board of Directors authorized the repurchase of up to $210 million of its equity and equity-linked securities (including convertible debt securities), subject to the achievement of its M2016 net debt reduction target and compliance with legal and regulatory requirements and its debt covenants. In September 2014, the company’s Board authorized the repurchase of up to $40 million of its equity or equity-linked securities (including convertible debt securities) under the $210 million authorization that may be made annually without regard to achievement of the M2016 net debt reduction target. These authorizations had no stated expiration. During the nine months ended June 30, 2016 , the company repurchased 8.6 million shares of common stock for $81 million (including commission costs) pursuant to these authorizations. As of June 30, 2016 , the company has repurchased 12.8 million shares of common stock for $136 million (including commission costs), $19 million principal amount of its 4.0 percent convertible notes due 2027, and all of the $55 million principal amount of its 4.625 percent convertible notes due 2026 pursuant to the equity and equity-linked repurchase authorizations. This repurchase program was substantially complete as of June 30, 2016 . In January 2015, the Offering Committee of the company’s Board of Directors approved a repurchase program for up to $150 million aggregate principal amount of any of its public debt securities (including convertible debt securities) from time to time through open market purchases or privately negotiated transactions or otherwise, until September 30, 2016, subject to compliance with legal and regulatory requirements and the company's debt covenants. This repurchase program was in addition to the equity and equity-linked repurchase authorizations described above. The amount remaining available for repurchases under this program was $150 million as of June 30, 2016 and September 30, 2015. On July 21, 2016, the Board of Directors authorized the repurchase of up to $150 million aggregate principal amount of any of the company’s public debt securities (including convertible debt securities) and up to $100 million of the company’s common stock (see Note 23 of the Notes to Condensed Consolidated Financial Statements in Part I of this Quarterly Report ). Accumulated Other Comprehensive Loss ( “ AOCL ” ) The components of AOCL and the changes in AOCL by components, net of tax, for three months ended June 30, 2016 and 2015 are as follows (in millions): Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at March 31, 2016 $ (50 ) $ (687 ) $ (5 ) $ (742 ) Other comprehensive income (loss) before reclassification (10 ) (2 ) 3 (9 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 9 — 9 Net current-period other comprehensive income (loss) $ (10 ) $ 7 $ 3 $ — Balance at June 30, 2016 $ (60 ) $ (680 ) $ (2 ) $ (742 ) 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 Actuarial losses 9 (a) 9 Total before tax — Tax (benefit) expense Total reclassifications for the period $ 9 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 18 for additional details). Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at March 31, 2015 $ (25 ) $ (766 ) $ (2 ) $ (793 ) Other comprehensive income before reclassification 13 1 (2 ) 12 Amounts reclassified from accumulated other comprehensive loss - net of tax — 11 — 11 Net current-period other comprehensive income $ 13 $ 12 $ (2 ) $ 23 Balance at June 30, 2015 $ (12 ) $ (754 ) $ (4 ) $ (770 ) 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 Prior service costs $ (1 ) (b) Actuarial losses 12 (b) 11 Total before tax — Tax expense Total reclassifications for the period 11 Net of tax (b) These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 18 for additional details). The components of AOCL and the changes in AOCL by components, net of tax, for nine months ended June 30, 2016 and 2015 are as follows (in millions): Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at September 30, 2015 $ (54 ) $ (705 ) $ (7 ) (766 ) Other comprehensive income (loss) before reclassification (6 ) (2 ) 5 (3 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 27 — 27 Net current-period other comprehensive income (loss) $ (6 ) $ 25 $ 5 $ 24 Balance at June 30, 2016 $ (60 ) $ (680 ) $ (2 ) $ (742 ) 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 Actuarial losses 27 (a) 27 Total before tax — Tax (benefit) expense Total reclassifications for the period $ 27 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 18 for additional details). Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at September 30, 2014 $ 41 $ (789 ) $ (1 ) $ (749 ) Other comprehensive income before reclassification (54 ) — (3 ) (57 ) Amounts reclassified from accumulated other comprehensive loss - net of tax 1 35 — 36 Net current-period other comprehensive income $ (53 ) $ 35 $ (3 ) $ (21 ) Balance at June 30, 2015 $ (12 ) $ (754 ) $ (4 ) $ (770 ) 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 Prior service costs $ (1 ) (b) Actuarial losses 36 (b) 35 Total before tax — Tax expense 35 Net of tax Foreign Currency Translation Related Adjustment Other reclassification adjustment $ 1 1 Total before tax — Tax expense 1 Net of tax Total reclassifications for the period $ 36 Net of tax (b) These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 18 for additional details).

Business Segment Information

Business Segment Information	9 Months Ended
	Jun. 30, 2016
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. The company has two reportable segments at June 30, 2016 , 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, 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 businesses 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 expense 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 condensed 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 segment. Segment information is summarized as follows (in millions): Commercial Truck & Industrial Aftermarket & Trailer Eliminations Total Three Months Ended June 30, 2016 External Sales $ 623 $ 218 $ — $ 841 Intersegment Sales 17 9 (26 ) — Total Sales $ 640 $ 227 $ (26 ) $ 841 Three Months Ended June 30, 2015 External Sales $ 682 $ 227 $ — $ 909 Intersegment Sales 23 6 (29 ) — Total Sales $ 705 $ 233 $ (29 ) $ 909 Commercial Truck Aftermarket Eliminations Total Nine Months Ended June 30, 2016 External Sales $ 1,846 $ 625 $ — $ 2,471 Intersegment Sales 58 23 (81 ) — Total Sales $ 1,904 $ 648 $ (81 ) $ 2,471 Nine months ended June 30, 2015 External Sales $ 2,020 $ 632 $ — $ 2,652 Intersegment Sales 69 21 (90 ) — Total Sales $ 2,089 $ 653 $ (90 ) $ 2,652 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Segment EBITDA: Commercial Truck & Industrial $ 61 $ 58 $ 169 $ 171 Aftermarket & Trailer 38 31 86 86 Segment EBITDA 99 89 255 257 Unallocated legacy and corporate costs, net (1) (3 ) (2 ) (2 ) (4 ) Interest expense, net (20 ) (38 ) (63 ) (78 ) Provision for income taxes (8 ) (6 ) (22 ) (19 ) Depreciation and amortization (17 ) (17 ) (48 ) (49 ) Noncontrolling interests (1 ) (1 ) (2 ) (2 ) Loss on sale of receivables (2 ) (1 ) (6 ) (4 ) Restructuring costs (6 ) (9 ) (9 ) (15 ) Income from continuing operations attributable to Meritor, Inc. $ 42 $ 15 $ 103 $ 86 (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 and settlements, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability. Segment Assets: June 30, September 30, Commercial Truck & Industrial $ 1,488 $ 1,569 Aftermarket & Trailer 444 448 Total segment assets 1,932 2,017 Corporate (1) 374 434 Less: Accounts receivable sold under off-balance sheet factoring programs (2) (222 ) (256 ) Total assets $ 2,084 $ 2,195 (1) Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. (2) At June 30, 2016 and September 30, 2015 , segment assets include $222 million and $256 million , respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (see Note 8). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.

Supplemental Guarantor Condense

Supplemental Guarantor Condensed Consolidating Financial Statements	9 Months Ended
	Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Supplemental guarantor condensed consolidating financial statements	Supplemental Guarantor Condensed Consolidating Financial Statements Rule 3-10 of Regulation S-X requires that separate financial information for issuers and guarantors of registered securities be filed in certain circumstances. Certain of the company's 100 -percent-owned subsidiaries, as defined in the credit agreement (the "Guarantors"), irrevocably and unconditionally guarantee amounts outstanding under the senior secured revolving credit facility on a joint and several basis. Similar subsidiary guarantees were provided for the benefit of the holders of the notes outstanding under the company's indentures (see Note 16). Schedule I of Rule 5-04 of Regulation S-X requires that condensed financial information of the registrant ("Parent") on a stand alone basis 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. Certain subsidiaries in China, India and Brazil are restricted by law from transfer of cash by dividends, loans, or advances to Parent, which exceeded 25 percent of consolidated net assets of Parent as of September 30, 2015. As of June 30, 2016 , the company's proportionate share of net assets restricted from transfer by law was $29 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 Regulation 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 Guarantors are combined in the condensed consolidating financial statements. Three Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 410 $ 431 $ — $ 841 Subsidiaries — 30 14 (44 ) — Total sales — 440 445 (44 ) 841 Cost of sales (14 ) (361 ) (383 ) 44 (714 ) GROSS MARGIN (14 ) 79 62 — 127 Selling, general and administrative (23 ) (20 ) (16 ) — (59 ) Restructuring costs — (3 ) (3 ) — (6 ) Other operating income (expense), net — — — — — OPERATING INCOME (LOSS) (37 ) 56 43 — 62 Other income (expense), net 8 (48 ) 40 — — Equity in earnings of affiliates — 8 1 — 9 Interest income (expense), net (29 ) 8 1 — (20 ) INCOME (LOSS) BEFORE INCOME TAXES (58 ) 24 85 — 51 Provision for income taxes (1 ) — (7 ) — (8 ) Equity income (loss) from continuing operations of subsidiaries 101 74 — (175 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS 42 98 78 (175 ) 43 LOSS FROM DISCONTINUED OPERATIONS, net of tax (1 ) — — — (1 ) NET INCOME (LOSS) 41 98 78 (175 ) 42 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. $ 41 $ 98 $ 77 $ (175 ) $ 41 Three Months Ended June 30, 2016 Parent Guarantors Non- Elims Consolidated Net income (loss) $ 41 $ 98 $ 78 $ (175 ) $ 42 Other comprehensive income (loss) — 44 (50 ) 6 — Total comprehensive income (loss) 41 142 28 (169 ) 42 Less: Comprehensive income attributable to — — (1 ) — (1 ) Comprehensive income (loss) attributable to Meritor, Inc. $ 41 $ 142 $ 27 $ (169 ) $ 41 Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 461 $ 448 $ — $ 909 Subsidiaries — 34 19 (53 ) — Total sales — 495 467 (53 ) 909 Cost of sales (14 ) (416 ) (408 ) 53 (785 ) GROSS MARGIN (14 ) 79 59 — 124 Selling, general and administrative (20 ) (29 ) (16 ) — (65 ) Restructuring costs — (2 ) (7 ) — (9 ) Other operating income (expense), net (2 ) — 3 — 1 OPERATING INCOME (LOSS) (36 ) 48 39 — 51 Other income (expense), net 10 (6 ) (5 ) — (1 ) Equity in earnings of affiliates — 9 1 — 10 Interest income (expense), net (47 ) 7 2 — (38 ) INCOME (LOSS) BEFORE INCOME TAXES (73 ) 58 37 — 22 Provision for income taxes (1 ) — (5 ) — (6 ) Equity income from continuing operations of subsidiaries 89 28 — (117 ) — INCOME FROM CONTINUING OPERATIONS 15 86 32 (117 ) 16 LOSS FROM DISCONTINUED OPERATIONS, net of tax (2 ) (1 ) (2 ) 3 (2 ) NET INCOME 13 85 30 (114 ) 14 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 13 $ 85 $ 29 $ (114 ) $ 13 Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 13 $ 85 $ 30 $ (114 ) $ 14 Other comprehensive income (loss) 23 30 (15 ) (15 ) 23 Total comprehensive income 36 115 15 (129 ) 37 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Meritor, Inc. $ 36 $ 115 $ 14 $ (129 ) $ 36 Nine Months Ended June 30, 2016 Parent Guarantors Non- Elims Consolidated Sales External $ — $ 1,247 $ 1,224 $ — $ 2,471 Subsidiaries — 85 46 (131 ) — Total sales — 1,332 1,270 (131 ) 2,471 Cost of sales (40 ) — (1,107 ) (1,103 ) 131 (2,119 ) GROSS MARGIN (40 ) 225 167 — 352 Selling, general and administrative (62 ) (62 ) (51 ) — (175 ) Restructuring costs — (4 ) (5 ) — (9 ) Other operating income (expense), net (3 ) — — — (3 ) OPERATING INCOME (LOSS) (105 ) 159 111 — 165 Other income (loss), net 42 (57 ) 14 — (1 ) Equity in earnings of affiliates — 24 2 — 26 Interest income (expense), net (88 ) 23 2 — (63 ) INCOME (LOSS) BEFORE INCOME TAXES (151 ) 149 129 — 127 Provision for income taxes (1 ) — (21 ) — (22 ) Equity income from continuing operations of subsidiaries 255 95 — (350 ) — INCOME FROM CONTINUING OPERATIONS 103 244 108 (350 ) 105 LOSS FROM DISCONTINUED OPERATIONS, net of tax (4 ) (5 ) (4 ) 9 (4 ) Net income 99 239 104 (341 ) 101 Less: Net income attributable to noncontrolling interests — — (2 ) — (2 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 99 $ 239 $ 102 $ (341 ) $ 99 Nine Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 99 $ 239 $ 104 $ (341 ) $ 101 Other comprehensive income (loss) 24 56 (52 ) (4 ) 24 Total comprehensive income 123 295 52 (345 ) 125 Less: Comprehensive income attributable to noncontrolling interests — — (2 ) — (2 ) Comprehensive income attributable to Meritor, Inc. $ 123 $ 295 $ 50 $ (345 ) $ 123 Nine months ended June 30, 2015 Parent Guarantors Non- Elims Consolidated Sales External $ — $ 1,282 $ 1,370 $ — $ 2,652 Subsidiaries — 95 52 (147 ) — Total sales — 1,377 1,422 (147 ) 2,652 Cost of sales (38 ) (1,167 ) (1,240 ) 147 (2,298 ) GROSS MARGIN (38 ) 210 182 — 354 Selling, general and administrative (54 ) (83 ) (50 ) — (187 ) Restructuring costs (1 ) (5 ) (9 ) — (15 ) Other operating income (expense), net (2 ) — 4 — 2 OPERATING INCOME (LOSS) (95 ) 122 127 — 154 Other income (expense), net 47 (15 ) (29 ) — 3 Equity in earnings of affiliates — 24 4 — 28 Interest income (expense), net (105 ) 20 7 — (78 ) INCOME (LOSS) BEFORE INCOME TAXES (153 ) 151 109 — 107 Provision for income taxes (2 ) — (17 ) — (19 ) Equity income from continuing operations of subsidiaries 241 81 — (322 ) — INCOME FROM CONTINUING OPERATIONS 86 232 92 (322 ) 88 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax (1 ) 1 (2 ) 1 (1 ) NET INCOME 85 233 90 (321 ) 87 Less: Net income attributable to noncontrolling interests — — (2 ) — (2 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 85 $ 233 $ 88 $ (321 ) $ 85 Nine months ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 85 $ 233 $ 90 $ (321 ) $ 87 Other comprehensive income (loss) (21 ) (62 ) 3 58 (22 ) Total comprehensive income 64 171 93 (263 ) 65 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Meritor, Inc. $ 64 $ 171 $ 92 $ (263 ) $ 64 June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents $ 35 $ 3 $ 91 $ — $ 129 Receivables trade and other, net 1 22 399 — 422 Inventories — 148 187 — 335 Other current assets 4 21 28 — 53 TOTAL CURRENT ASSETS 40 194 705 — 939 NET PROPERTY 19 189 220 — 428 GOODWILL — 219 173 — 392 OTHER ASSETS 56 127 142 — 325 INVESTMENTS IN SUBSIDIARIES 2,471 747 — (3,218 ) — TOTAL ASSETS $ 2,586 $ 1,476 $ 1,240 $ (3,218 ) $ 2,084 CURRENT LIABILITIES: Short-term debt $ 1 $ 3 $ 10 $ — $ 14 Accounts and notes payable 41 172 290 — 503 Other current liabilities 94 62 111 — 267 TOTAL CURRENT LIABILITIES 136 237 411 — 784 LONG-TERM DEBT 969 4 7 — 980 RETIREMENT BENEFITS 573 — 28 — 601 INTERCOMPANY PAYABLE (RECEIVABLE) 1,497 (1,674 ) 177 — — OTHER LIABILITIES 32 238 45 — 315 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (621 ) 2,671 547 (3,218 ) (621 ) NONCONTROLLING INTERESTS — — 25 — 25 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 2,586 $ 1,476 $ 1,240 $ (3,218 ) $ 2,084 September 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents $ 73 $ 6 $ 114 $ — $ 193 Receivables trade and other, net 1 40 420 — 461 Inventories — 159 179 — 338 Other current assets 4 20 26 — 50 TOTAL CURRENT ASSETS 78 225 739 — 1,042 NET PROPERTY 15 183 221 — 419 GOODWILL — 219 183 — 402 OTHER ASSETS 61 129 142 — 332 INVESTMENTS IN SUBSIDIARIES 2,354 313 — (2,667 ) — TOTAL ASSETS $ 2,508 $ 1,069 $ 1,285 $ (2,667 ) $ 2,195 CURRENT LIABILITIES: Short-term debt $ 1 $ 4 $ 10 $ — $ 15 Accounts and notes payable 55 213 306 — 574 Other current liabilities 93 83 103 — 279 TOTAL CURRENT LIABILITIES 149 300 419 — 868 LONG-TERM DEBT 1,017 6 13 — 1,036 RETIREMENT BENEFITS 603 — 29 — 632 INTERCOMPANY PAYABLE (RECEIVABLE) 1,365 (1,886 ) 521 — — OTHER LIABILITIES 45 217 43 — 305 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (671 ) 2,432 235 (2,667 ) (671 ) NONCONTROLLING INTERESTS — — 25 — 25 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 2,508 $ 1,069 $ 1,285 $ (2,667 ) $ 2,195 Nine Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ 124 $ 25 $ (5 ) $ — $ 144 INVESTING ACTIVITIES Capital expenditures (16 ) (29 ) (21 ) — (66 ) Other investing activities — 4 (1 ) — 3 Net investing cash flows provided by discontinued operations — 1 3 — 4 CASH USED FOR INVESTING ACTIVITIES (16 ) (24 ) (19 ) — (59 ) FINANCING ACTIVITIES Repayment of notes (55 ) — — — (55 ) Repurchase of common stock (81 ) — — — (81 ) Intercompany advances (10 ) — 10 — — Other financing activities — (4 ) (11 ) — (15 ) CASH USED FOR FINANCING ACTIVITIES (146 ) (4 ) (1 ) — (151 ) EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — 2 — 2 CHANGE IN CASH AND CASH EQUIVALENTS (38 ) (3 ) (23 ) — (64 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 73 6 114 — 193 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 35 $ 3 $ 91 $ — $ 129 Nine months ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY OPERATING ACTIVITIES $ 76 $ 19 $ 27 $ — $ 122 INVESTING ACTIVITIES Capital expenditures (4 ) (17 ) (24 ) — (45 ) Proceeds from the sale of property — — 4 — 4 Net investing cash flows provided by discontinued operations — 1 3 — 4 CASH USED FOR INVESTING ACTIVITIES (4 ) (16 ) (17 ) — (37 ) FINANCING ACTIVITIES Repayment of notes (159 ) — — — (159 ) Proceeds from debt issuance 225 — — — 225 Debt issuance costs (4 ) — — — (4 ) Repurchase of common stock (30 ) (30 ) Intercompany advances 63 — (63 ) — — Other financing activities — (3 ) (4 ) — (7 ) CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 95 (3 ) (67 ) — 25 EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — (12 ) — (12 ) CHANGE IN CASH AND CASH EQUIVALENTS 167 — (69 ) — 98 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 71 5 171 — 247 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 238 $ 5 $ 102 $ — $ 345 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 Securities and Exchange Commission. As of June 30, 2016 and September 30, 2015 , Parent-only obligations included $ 601 million and $631 million of pension and retiree medical benefits, respectively (see Note 18). All debt is debt of the Parent other than $ 24 million and $33 million at June 30, 2016 and September 30, 2015 , respectively (see Note 16), and is primarily related to capital lease obligations and lines of credit. There were $18 million cash dividends paid to the Parent by subsidiaries and investments accounted for by the equity method for the nine months ended June 30, 2016 and $37 million for the nine months ended June 30, 2015 .

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 21, 2016, the Board of Directors authorized the repurchase of up to $150 million aggregate principal amount of any of the company’s public debt securities (including convertible debt securities) and up to $100 million of the company’s common stock, in each case from time to time through open market purchases, privately negotiated transactions or otherwise until September 30, 2019, subject to compliance with legal and regulatory requirements and the company’s debt covenants. The new debt repurchase authorization replaces the prior January 2015 authorization of the Offering Committee of the company’s Board of Directors. No purchases have been made under these authorizations.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Standards	Accounting standards to be implemented In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments including accounts receivable. The ASU also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The amendments in this update are required to be adopted by public business entities with fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The ASU clarifies the assessment of the likelihood that revenue will be collected from a contract, the guidance for presenting sales taxes and similar taxes, and the timing for measuring customer payments that are not in cash. The ASU also establishes a practical expedient for contract modifications at the transition. The amendments in this update affect the guidance in ASU 2014-09, which is not effective yet. The effective date and the transition requirements for the amendments in ASU 2016-12 are the same as the effective date and transition requirements in ASU 2014-09 as described below. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update). The ASU was issued to remove from the Codification certain SEC staff guidance that the SEC staff stated would be rescinded: Revenue and Expense Recognition for Freight Services in Process; Accounting for Shipping and Handling Fees and Costs; and Accounting for Consideration Given by a Vendor to a Customer (including a Reseller of the Vendor’s Products). The amendments in this update affect the guidance in ASU 2014-09, which is not effective yet. The effective date and the transition requirements for the amendments in ASU 2016-11 are the same as the effective date and transition requirements in ASU 2014-09 as described below. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In April, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing. The ASU provides guidance regarding the identification of performance and licensing obligations. The amendments in this update affect the guidance in ASU 2014-09, which is not effective yet. The effective date and the transition requirements for the amendments in ASU 2016-10 are the same as the effective date and transition requirements in ASU 2014-09 as described below. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The ASU intends to simplify how share-based payments are accounted for, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company is assessing the potential impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) to clarify certain aspects of the principal-versus-agent guidance in its new revenue recognition standard. The amendments in this update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in ASU 2016-08 are the same as the effective date and transition requirements of ASU 2014-09. Therefore, the company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 in connection with its planned implementation of ASU 2014-09. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting. The ASU will eliminate the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815), Contingent Put and Call Options in Debt Instruments. The ASU clarifies that an exercise contingency itself does not need to be evaluated to determine whether it is in an embedded derivative, just the underlying option.The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The update clarifies that a change in a counterparty to a derivative instrument designated as a hedging instrument would not require the entity to dedesignate the hedging relationship and discontinue the application of hedge accounting. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The update will require lessees to recognize a right-of-use asset and lease liability for substantially all leases. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2018, including interim periods within those fiscal periods. Early adoption is permitted. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2019 and is currently assessing the potential impact of this new guidance on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance is effective for fiscal periods beginning after December 15, 2017, including interim periods within those fiscal periods. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, as part of its Simplification Initiative, which updates Income Taxes (Topic 740) guidance to eliminate the requirement for an entity to separate deferred tax liabilities and tax assets between current and noncurrent amounts in a classified balance sheet. Deferred taxes will be presented as noncurrent under the new standard. The guidance is effective for fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. Early adoption is permitted. The company plans to implement this guidance in the fourth quarter of fiscal year 2016. The impact as of June 30, 2016 would be a reclassification between current and non current deferred tax assets of $17 million . In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires entities that measure inventory using first-in, first-out (FIFO) or average cost to measure inventory at the lower of cost and net realizable value. The standard is required to be adopted by public business entities in fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. The company is assessing 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), which provides guidance about management's responsibility in evaluating whether there is substantial doubt relating to an entity’s ability to continue as a going concern and to provide related footnote disclosures as applicable. ASU 2014-15 is effective for the interim and fiscal periods ending after December 15, 2016. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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. This guidance requires that an award with a performance target that affects vesting, and that could be achieved after the requisite service period, such as when an employee retires, but may still vest if and when the performance target is achieved, be treated as an award with performance conditions that affect vesting and the company apply existing guidance under ASC Topic 718, Compensation - Stock Compensation. The guidance is effective for fiscal periods beginning after December 15, 2015, including interim periods within those fiscal periods and may be applied either prospectively or retrospectively. The company is assessing the potential impact of this new guidance on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service and requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 was originally effective for fiscal periods beginning after December 15, 2016, including interim periods within those fiscal periods. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year making it effective for fiscal periods beginning after December 15, 2017, including interim periods within those fiscal periods, while also providing for early adoption but not before the original effective date. The company plans to implement this standard in the first quarter of the fiscal year beginning October 1, 2018 and is currently evaluating the potential impact of this new guidance on its consolidated financial statements. Accounting standards implemented during fiscal year 2016 In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which updates Business Combination (Topic 805) guidance to eliminate the requirement to restate prior period financial statements for measurement period adjustments. The guidance should be applied prospectively to measurement period adjustments that occur after the effective date. The guidance is effective for fiscal periods beginning after December 15, 2015, including interim periods within those fiscal periods. Early adoption is permitted. The company adopted this standard in the first quarter of the fiscal year 2016. This guidance did not have a material impact on the company's consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This guidance changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The guidance also requires new disclosure of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This guidance is to be applied prospectively and is effective for fiscal periods beginning on or after December 15, 2014, including interim periods within those fiscal periods. The company adopted this guidance in the first quarter of fiscal year 2016. The impact of this new guidance on the company's consolidated financial statements is dependent upon future business divestitures. Previous divestitures and amounts currently included in discontinued operations were not impacte
Inventories	Inventories are stated at the lower of cost (using FIFO or average methods) or market (determined on the basis of estimated realizable values)
Environmental	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.

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Reconciliation of basic average common shares outstanding	A reconciliation of basic average common shares outstanding to diluted average common shares outstanding is as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic average common shares outstanding 89.8 96.9 91.2 97.6 Impact of restricted shares, restricted share units and performance share units 2.2 1.8 1.9 2.0 Impact of stock options — 0.1 — 0.1 Impact of convertible notes — 1.5 — 1.3 Diluted average common shares outstanding 92.0 100.3 93.1 101.0

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Summary of Discontinued Operations	Results of discontinued operations are summarized as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Sales $ — $ — $ — $ 1 Loss before income taxes $ (1 ) $ (2 ) $ (5 ) $ (1 ) Benefit from income taxes — — 1 — Loss from discontinued operations attributable to Meritor, Inc. $ (1 ) $ (2 ) $ (4 ) $ (1 )

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of the changes in goodwill	A summary of the changes in the carrying value of goodwill by the company’s two reportable segments are presented below (in millions): Commercial Truck & Industrial Aftermarket & Trailer Total Beginning balance at September 30, 2015 $ 239 $ 163 $ 402 Foreign currency translation (8 ) (2 ) (10 ) Balance at June 30, 2016 $ 231 $ 161 $ 392

Restructuring Costs (Tables)

Restructuring Costs (Tables)	9 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
Schedule of changes in restructuring reserves	The changes in restructuring reserves for the nine months ended June 30, 2016 and 2015 are as follows (in millions): Employee Termination Benefits Plant Shutdown & Other Total Beginning balance at September 30, 2015 $ 10 $ — $ 10 Activity during the period: Charges to continuing operations 8 1 9 Cash payments – continuing operations (8 ) — (8 ) Total restructuring reserves at June 30, 2016 10 1 11 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at June 30, 2016 $ 8 $ 1 $ 9 Balance at September 30, 2014 $ 11 $ — $ 11 Activity during the period: Charges to continuing operations 15 — 15 Cash payments – continuing operations (10 ) — (10 ) Other (3 ) — (3 ) Total restructuring reserves at June 30, 2015 13 — 13 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at June 30, 2015 $ 11 $ — $ 11

Operating Cash Flow (Tables)

Operating Cash Flow (Tables)	9 Months Ended
	Jun. 30, 2016
Operating Cash Flow Disclosure [Abstract]
Schedule Of Operating Cash Flow	The reconciliation of net income to cash flows provided by operating activities is as follows (in millions): Nine Months Ended June 30, 2016 2015 OPERATING ACTIVITIES Net income $ 101 $ 87 Less: Loss from discontinued operations, net of tax (4 ) (1 ) Income from continuing operations 105 88 Adjustments to income from continuing operations to arrive at cash provided by operating activities: Depreciation and amortization 48 49 Restructuring costs 9 15 Loss on debt extinguishment — 20 Gain on sale of property (2 ) (3 ) Equity in earnings of affiliates (26 ) (28 ) Pension and retiree medical expense 15 20 Other adjustments to income from continuing operations 7 8 Dividends received from equity method investments 29 26 Pension and retiree medical contributions (32 ) (36 ) Restructuring payments (8 ) (10 ) Changes in off-balance sheet accounts receivable factoring (30 ) 94 Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations 31 (111 ) Operating cash flows provided by continuing operations 146 132 Operating cash flows used for discontinued operations (2 ) (10 ) CASH PROVIDED BY OPERATING ACTIVITIES $ 144 $ 122

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Summary of 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): June 30, September 30, Finished goods $ 132 $ 133 Work in process 30 28 Raw materials, parts and supplies 173 177 Total $ 335 $ 338

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Jun. 30, 2016
Other Current Assets Disclosure [Abstract]
Summary of other current assets	Other current assets are summarized as follows (in millions): June 30, September 30, Current deferred income tax assets $ 19 $ 20 Asbestos-related recoveries (see Note 19) 13 13 Prepaid and other 21 17 Other current assets $ 53 $ 50

Net Property (Tables)

Net Property (Tables)	9 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Summary of Net Property	Net property is summarized as follows (in millions): June 30, September 30, Property at cost: Land and land improvements $ 30 $ 31 Buildings 218 214 Machinery and equipment 842 864 Company-owned tooling 116 116 Construction in progress 63 62 Total 1,269 1,287 Less: accumulated depreciation (841 ) (868 ) Net property $ 428 $ 419

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Jun. 30, 2016
Other Assets, Noncurrent [Abstract]
Summary of other assets	Other assets are summarized as follows (in millions): June 30, September 30, Investments in non-consolidated joint ventures $ 98 $ 96 Asbestos-related recoveries (see Note 19) 35 42 Unamortized revolver debt issuance costs 8 10 Capitalized software costs, net 27 28 Non-current deferred income tax assets, net 26 28 Assets for uncertain tax positions 3 3 Prepaid pension costs 112 110 Other 16 15 Other assets $ 325 $ 332

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	9 Months Ended
	Jun. 30, 2016
Other Current Liabilities Disclosure [Abstract]
Summary of other current liabilities	Other current liabilities are summarized as follows (in millions): June 30, September 30, Compensation and benefits $ 110 $ 122 Income taxes 10 9 Taxes other than income taxes 22 23 Accrued interest 15 14 Product warranties 18 22 Environmental reserves (see Note 19) 8 9 Restructuring (see Note 6) 9 7 Asbestos-related liabilities (see Note 19) 17 17 Indemnity obligations (see Note 19) 2 2 Other 56 54 Other current liabilities $ 267 $ 279
Summary of product warranties	A summary of the changes in product warranties is as follows (in millions): Nine Months Ended June 30, 2016 2015 Total product warranties – beginning of period $ 48 $ 51 Accruals for product warranties 11 11 Payments (13 ) (13 ) Change in estimates and other (1 ) 1 Total product warranties – end of period 45 50 Less: Non-current product warranties (27 ) (27 ) Product warranties – current $ 18 $ 23

Other Liabilities (Tables)

Other Liabilities (Tables)	9 Months Ended
	Jun. 30, 2016
Other Liabilities Disclosure [Abstract]
Summary of other liabilities	Other liabilities are summarized as follows (in millions): June 30, September 30, Asbestos-related liabilities (see Note 19) $ 121 $ 109 Restructuring (see Note 6) 2 3 Non-current deferred income tax liabilities 101 99 Liabilities for uncertain tax positions 14 15 Product warranties (see Note 14) 27 26 Environmental (see Note 19) 6 8 Indemnity obligations (see Note 19) 12 13 Other 32 32 Other liabilities $ 315 $ 305

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of debt instrument redemption	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 103.125% 2020 102.083% 2021 101.042% 2022 and thereafter 100.000%
Schedule of long-term debt	Long-Term Debt, net of discounts where applicable, is summarized as follows (in millions): June 30, September 30, 4.625 percent convertible notes due 2026 (1) $ — $ 55 4.0 percent convertible notes due 2027 (2)(4) 142 142 7.875 percent convertible notes due 2026 (2)(5) 129 127 6.75 percent notes due 2021 (3)(6) 271 270 6.25 percent notes due 2024 (3)(7) 442 442 Capital lease obligation 17 17 Export financing arrangements and other 9 18 Unamortized discount on convertible notes (16 ) (20 ) Subtotal 994 1,051 Less: current maturities (14 ) (15 ) Long-term debt $ 980 $ 1,036 (1) The 4.625 percent convertible notes contained a put and call feature, which allowed for earlier redemption beginning in 2016. As of June 30, 2016, all of these notes were redeemed. (2) The 4.0 percent and 7.875 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2019 and 2020, respectively. (3) The 6.75 percent and 6.25 percent notes contain a call option, which allows for early redemption. (4) The 4.0 percent convertible notes due 2027 are presented net of $1 million unamortized issuance costs as of June 30, 2016 and September 30, 2015. (5) The 7.875 percent convertible notes due 2026 are presented net of $2 million and $3 million unamortized issuance costs as of June 30, 2016 and September 30, 2015 , respectively, an d $9 million and $10 million original issuance discount as of June 30, 2016 and September 30, 2015 . (6) The 6.75 percent notes due 2021 are presented net of $4 million and $5 million unamortized issuance costs as of June 30, 2016 and September 30, 2015 . (7) The 6.25 percent notes due 2024 are presented net of $8 million unamortized issuance costs as of June 30, 2016 and September 30, 2015 .

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of financial instruments	Fair values of financial instruments are summarized as follows (in millions): June 30, 2016 September 30, 2015 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 129 $ 129 $ 193 $ 193 Short-term debt 14 14 15 15 Long-term debt 980 947 1,036 1,123 Foreign exchange forward contracts (asset) — — 1 1 Foreign exchange forward contracts (liability) 1 1 3 3 Short-term foreign currency option contracts (asset) — — 1 1 Long-term foreign currency option contracts (asset) — — 1 1
Offsetting of derivative assets and liabilities	The following table reflects the offsetting of derivative assets and liabilities (in millions): June 30, 2016 September 30, 2015 Gross Gross Amounts Net Amounts Gross Gross Amounts Net Amounts Derivative Asset Foreign exchange forward contract 1 (1 ) — 1 — 1 Derivative Liabilities Foreign exchange forward contract 2 (1 ) 1 3 — 3
Fair value of financial instruments by valuation hierarchy	Fair value of financial instruments by the valuation hierarchy at June 30, 2016 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 129 $ — $ — Short-term debt — — 14 Long-term debt — 935 12 Foreign exchange forward contracts (liability) — 1 — Fair value of financial instruments by the valuation hierarchy at September 30, 2015 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 193 $ — $ — Short-term debt — — 15 Long-term debt — 1,102 21 Foreign exchange forward contracts (asset) — 1 — Foreign exchange forward contracts (liability) — 3 — Short-term foreign currency option contracts (asset) — — 1 Long-term foreign currency option contracts (asset) — — 1
Reconciliation of changes in fair value	No transfers of assets between any of the Levels occurred during these periods. Three months ended June 30, 2016 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of March 31, 2016 $ — $ — $ — Total unrealized gains (losses): Included in other income — — — Transfer in and / or out of Level 3 (1) — — — Fair Value as of June 30, 2016 $ — $ — $ — Three months ended June 30, 2015 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of March 31, 2015 $ 2 $ 2 $ 4 Total unrealized gains (losses): Included in cost of sales (1 ) — (1 ) Total realized gains (losses): Included in other income (1 ) — (1 ) Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term — (1 ) (1 ) Fair Value as of June 30, 2015 $ — $ 1 $ 1 Nine months ended June 30, 2016 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of September 30, 2015 $ 1 $ 1 $ 2 Total unrealized gains (losses): Included in other income (2 ) — $ (2 ) Included in cost of sales — (1 ) (1 ) Purchases, issuances, sales and settlements: Purchases 1 — $ 1 Transfer in and / or out of Level 3 (1) — — — Fair Value as of June 30, 2016 $ — $ — $ — Nine months ended June 30, 2015 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of September 30, 2014 $ 2 $ 1 $ 3 Total unrealized gains (losses): Included in cost of sales (1 ) — (1 ) Total realized gains (losses): Included in other income 2 — 2 Included in cost of sales 3 — 3 Purchases, issuances, sales and settlements: Purchases 5 — 5 Settlements (10 ) (1 ) (11 ) Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term (1 ) 1 — Fair Value as of June 30, 2015 $ — $ 1 $ 1 (1) Transfers as of the last day of the reporting period.

Retirement Benefit Liabilities

Retirement Benefit Liabilities (Tables)	9 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Summary of retirement benefit liabilities	Retirement benefit liabilities consisted of the following (in millions): June 30, September 30, Retiree medical liability $ 424 $ 438 Pension liability 202 219 Other 14 14 Subtotal 640 671 Less: current portion (included in compensation and benefits, Note 14) (39 ) (39 ) Retirement benefits $ 601 $ 632
Components of net periodic pension and retiree medical expense	The components of net periodic pension and retiree medical expense included in Selling, general and administrative expenses for the three months ended June 30 are as follows (in millions): 2016 2015 Pension Retiree Medical Pension Retiree Medical Service cost $ — $ — $ 1 $ — Interest cost 16 4 17 5 Assumed return on plan assets (24 ) — (28 ) — Amortization of prior service costs — — — (1 ) Recognized actuarial loss 6 3 6 6 Total expense (income) $ (2 ) $ 7 $ (4 ) $ 10 The components of net periodic pension and retiree medical expense included in Selling, general and administrative expenses for the nine months ended June 30 are as follows (in millions): 2016 2015 Pension Retiree Medical Pension Retiree Medical Service cost $ — $ — $ 1 $ — Interest cost 49 13 53 15 Assumed return on plan assets (74 ) — (84 ) — Amortization of prior service costs — — — (1 ) Recognized actuarial loss 18 9 20 16 Total expense (income) $ (7 ) $ 22 $ (10 ) $ 30

Contingencies (Tables)

Contingencies (Tables)	9 Months Ended
	Jun. 30, 2016
Loss Contingencies [Line Items]
Summary of environmental reserves	The following are the components of the Superfund and non-Superfund environmental reserves (in millions): Superfund Sites Non-Superfund Sites Total Beginning balance at September 30, 2015 $ 2 $ 14 $ 16 Payments and other — (2 ) (2 ) Accruals — — — Balance at June 30, 2016 $ 2 $ 12 $ 14
Maremont Asbestos
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): June 30, September 30, Pending and future claims $ 71 $ 71 Billed but unpaid claims 2 3 Asbestos-related liabilities $ 73 $ 74 Asbestos-related insurance recoveries $ 34 $ 41
Rockwell Asbestos
Loss Contingencies [Line Items]
Asbestos related reserves and recoveries	The Rockwell legacy asbestos-related reserves and corresponding asbestos-related recoveries are summarized as follows (in millions): June 30, September 30, Pending and future claims $ 55 $ 55 Billed but unpaid claims 2 3 Asbestos-related liabilities $ 57 $ 58 Asbestos-related insurance recoveries $ 14 $ 14

Shareowners' Equity (Tables)

Shareowners' Equity (Tables)	9 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of accumulated other comprehensive loss	The components of AOCL and the changes in AOCL by components, net of tax, for nine months ended June 30, 2016 and 2015 are as follows (in millions): Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at September 30, 2015 $ (54 ) $ (705 ) $ (7 ) (766 ) Other comprehensive income (loss) before reclassification (6 ) (2 ) 5 (3 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 27 — 27 Net current-period other comprehensive income (loss) $ (6 ) $ 25 $ 5 $ 24 Balance at June 30, 2016 $ (60 ) $ (680 ) $ (2 ) $ (742 ) Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at March 31, 2015 $ (25 ) $ (766 ) $ (2 ) $ (793 ) Other comprehensive income before reclassification 13 1 (2 ) 12 Amounts reclassified from accumulated other comprehensive loss - net of tax — 11 — 11 Net current-period other comprehensive income $ 13 $ 12 $ (2 ) $ 23 Balance at June 30, 2015 $ (12 ) $ (754 ) $ (4 ) $ (770 ) Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at September 30, 2014 $ 41 $ (789 ) $ (1 ) $ (749 ) Other comprehensive income before reclassification (54 ) — (3 ) (57 ) Amounts reclassified from accumulated other comprehensive loss - net of tax 1 35 — 36 Net current-period other comprehensive income $ (53 ) $ 35 $ (3 ) $ (21 ) Balance at June 30, 2015 $ (12 ) $ (754 ) $ (4 ) $ (770 ) The components of AOCL and the changes in AOCL by components, net of tax, for three months ended June 30, 2016 and 2015 are as follows (in millions): Foreign Currency Translation Employee Benefit Related Adjustments Unrealized Loss, net of tax Total Balance at March 31, 2016 $ (50 ) $ (687 ) $ (5 ) $ (742 ) Other comprehensive income (loss) before reclassification (10 ) (2 ) 3 (9 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 9 — 9 Net current-period other comprehensive income (loss) $ (10 ) $ 7 $ 3 $ — Balance at June 30, 2016 $ (60 ) $ (680 ) $ (2 ) $ (742 )
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 Prior service costs $ (1 ) (b) Actuarial losses 12 (b) 11 Total before tax — Tax expense Total reclassifications for the period 11 Net of tax (b) These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 18 for additional details). 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 Actuarial losses 9 (a) 9 Total before tax — Tax (benefit) expense Total reclassifications for the period $ 9 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 18 for additional details). 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 Actuarial losses 27 (a) 27 Total before tax — Tax (benefit) expense Total reclassifications for the period $ 27 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 18 for additional details). 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 Prior service costs $ (1 ) (b) Actuarial losses 36 (b) 35 Total before tax — Tax expense 35 Net of tax Foreign Currency Translation Related Adjustment Other reclassification adjustment $ 1 1 Total before tax — Tax expense 1 Net of tax Total reclassifications for the period $ 36 Net of tax (b) These accumulated other comprehensive income components are included in the computation of net periodic pension and retiree medical expense (see Note 18 for additional details).

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Summary of segment information	Segment information is summarized as follows (in millions): Commercial Truck & Industrial Aftermarket & Trailer Eliminations Total Three Months Ended June 30, 2016 External Sales $ 623 $ 218 $ — $ 841 Intersegment Sales 17 9 (26 ) — Total Sales $ 640 $ 227 $ (26 ) $ 841 Three Months Ended June 30, 2015 External Sales $ 682 $ 227 $ — $ 909 Intersegment Sales 23 6 (29 ) — Total Sales $ 705 $ 233 $ (29 ) $ 909 Commercial Truck Aftermarket Eliminations Total Nine Months Ended June 30, 2016 External Sales $ 1,846 $ 625 $ — $ 2,471 Intersegment Sales 58 23 (81 ) — Total Sales $ 1,904 $ 648 $ (81 ) $ 2,471 Nine months ended June 30, 2015 External Sales $ 2,020 $ 632 $ — $ 2,652 Intersegment Sales 69 21 (90 ) — Total Sales $ 2,089 $ 653 $ (90 ) $ 2,652
Segment income attributable to parent	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Segment EBITDA: Commercial Truck & Industrial $ 61 $ 58 $ 169 $ 171 Aftermarket & Trailer 38 31 86 86 Segment EBITDA 99 89 255 257 Unallocated legacy and corporate costs, net (1) (3 ) (2 ) (2 ) (4 ) Interest expense, net (20 ) (38 ) (63 ) (78 ) Provision for income taxes (8 ) (6 ) (22 ) (19 ) Depreciation and amortization (17 ) (17 ) (48 ) (49 ) Noncontrolling interests (1 ) (1 ) (2 ) (2 ) Loss on sale of receivables (2 ) (1 ) (6 ) (4 ) Restructuring costs (6 ) (9 ) (9 ) (15 ) Income from continuing operations attributable to Meritor, Inc. $ 42 $ 15 $ 103 $ 86 (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 and settlements, pension and retiree medical costs associated with sold businesses and other legacy costs for environmental and product liability.
Schedule of segment assets	Segment Assets: June 30, September 30, Commercial Truck & Industrial $ 1,488 $ 1,569 Aftermarket & Trailer 444 448 Total segment assets 1,932 2,017 Corporate (1) 374 434 Less: Accounts receivable sold under off-balance sheet factoring programs (2) (222 ) (256 ) Total assets $ 2,084 $ 2,195 (1) Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. (2) At June 30, 2016 and September 30, 2015 , segment assets include $222 million and $256 million , respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (see Note 8). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.

Supplemental Guarantor Conden49

Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)	9 Months Ended
	Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Schedule of condensed consolidating statement of operations	Three Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 410 $ 431 $ — $ 841 Subsidiaries — 30 14 (44 ) — Total sales — 440 445 (44 ) 841 Cost of sales (14 ) (361 ) (383 ) 44 (714 ) GROSS MARGIN (14 ) 79 62 — 127 Selling, general and administrative (23 ) (20 ) (16 ) — (59 ) Restructuring costs — (3 ) (3 ) — (6 ) Other operating income (expense), net — — — — — OPERATING INCOME (LOSS) (37 ) 56 43 — 62 Other income (expense), net 8 (48 ) 40 — — Equity in earnings of affiliates — 8 1 — 9 Interest income (expense), net (29 ) 8 1 — (20 ) INCOME (LOSS) BEFORE INCOME TAXES (58 ) 24 85 — 51 Provision for income taxes (1 ) — (7 ) — (8 ) Equity income (loss) from continuing operations of subsidiaries 101 74 — (175 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS 42 98 78 (175 ) 43 LOSS FROM DISCONTINUED OPERATIONS, net of tax (1 ) — — — (1 ) NET INCOME (LOSS) 41 98 78 (175 ) 42 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. $ 41 $ 98 $ 77 $ (175 ) $ 41 Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 461 $ 448 $ — $ 909 Subsidiaries — 34 19 (53 ) — Total sales — 495 467 (53 ) 909 Cost of sales (14 ) (416 ) (408 ) 53 (785 ) GROSS MARGIN (14 ) 79 59 — 124 Selling, general and administrative (20 ) (29 ) (16 ) — (65 ) Restructuring costs — (2 ) (7 ) — (9 ) Other operating income (expense), net (2 ) — 3 — 1 OPERATING INCOME (LOSS) (36 ) 48 39 — 51 Other income (expense), net 10 (6 ) (5 ) — (1 ) Equity in earnings of affiliates — 9 1 — 10 Interest income (expense), net (47 ) 7 2 — (38 ) INCOME (LOSS) BEFORE INCOME TAXES (73 ) 58 37 — 22 Provision for income taxes (1 ) — (5 ) — (6 ) Equity income from continuing operations of subsidiaries 89 28 — (117 ) — INCOME FROM CONTINUING OPERATIONS 15 86 32 (117 ) 16 LOSS FROM DISCONTINUED OPERATIONS, net of tax (2 ) (1 ) (2 ) 3 (2 ) NET INCOME 13 85 30 (114 ) 14 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 13 $ 85 $ 29 $ (114 ) $ 13 Nine Months Ended June 30, 2016 Parent Guarantors Non- Elims Consolidated Sales External $ — $ 1,247 $ 1,224 $ — $ 2,471 Subsidiaries — 85 46 (131 ) — Total sales — 1,332 1,270 (131 ) 2,471 Cost of sales (40 ) — (1,107 ) (1,103 ) 131 (2,119 ) GROSS MARGIN (40 ) 225 167 — 352 Selling, general and administrative (62 ) (62 ) (51 ) — (175 ) Restructuring costs — (4 ) (5 ) — (9 ) Other operating income (expense), net (3 ) — — — (3 ) OPERATING INCOME (LOSS) (105 ) 159 111 — 165 Other income (loss), net 42 (57 ) 14 — (1 ) Equity in earnings of affiliates — 24 2 — 26 Interest income (expense), net (88 ) 23 2 — (63 ) INCOME (LOSS) BEFORE INCOME TAXES (151 ) 149 129 — 127 Provision for income taxes (1 ) — (21 ) — (22 ) Equity income from continuing operations of subsidiaries 255 95 — (350 ) — INCOME FROM CONTINUING OPERATIONS 103 244 108 (350 ) 105 LOSS FROM DISCONTINUED OPERATIONS, net of tax (4 ) (5 ) (4 ) 9 (4 ) Net income 99 239 104 (341 ) 101 Less: Net income attributable to noncontrolling interests — — (2 ) — (2 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 99 $ 239 $ 102 $ (341 ) $ 99 Nine months ended June 30, 2015 Parent Guarantors Non- Elims Consolidated Sales External $ — $ 1,282 $ 1,370 $ — $ 2,652 Subsidiaries — 95 52 (147 ) — Total sales — 1,377 1,422 (147 ) 2,652 Cost of sales (38 ) (1,167 ) (1,240 ) 147 (2,298 ) GROSS MARGIN (38 ) 210 182 — 354 Selling, general and administrative (54 ) (83 ) (50 ) — (187 ) Restructuring costs (1 ) (5 ) (9 ) — (15 ) Other operating income (expense), net (2 ) — 4 — 2 OPERATING INCOME (LOSS) (95 ) 122 127 — 154 Other income (expense), net 47 (15 ) (29 ) — 3 Equity in earnings of affiliates — 24 4 — 28 Interest income (expense), net (105 ) 20 7 — (78 ) INCOME (LOSS) BEFORE INCOME TAXES (153 ) 151 109 — 107 Provision for income taxes (2 ) — (17 ) — (19 ) Equity income from continuing operations of subsidiaries 241 81 — (322 ) — INCOME FROM CONTINUING OPERATIONS 86 232 92 (322 ) 88 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax (1 ) 1 (2 ) 1 (1 ) NET INCOME 85 233 90 (321 ) 87 Less: Net income attributable to noncontrolling interests — — (2 ) — (2 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 85 $ 233 $ 88 $ (321 ) $ 85
Schedule of condensed consolidating statement of comprehensive income (loss)	Three Months Ended June 30, 2016 Parent Guarantors Non- Elims Consolidated Net income (loss) $ 41 $ 98 $ 78 $ (175 ) $ 42 Other comprehensive income (loss) — 44 (50 ) 6 — Total comprehensive income (loss) 41 142 28 (169 ) 42 Less: Comprehensive income attributable to — — (1 ) — (1 ) Comprehensive income (loss) attributable to Meritor, Inc. $ 41 $ 142 $ 27 $ (169 ) $ 41 Three Months Ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 13 $ 85 $ 30 $ (114 ) $ 14 Other comprehensive income (loss) 23 30 (15 ) (15 ) 23 Total comprehensive income 36 115 15 (129 ) 37 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Meritor, Inc. $ 36 $ 115 $ 14 $ (129 ) $ 36 Nine Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 99 $ 239 $ 104 $ (341 ) $ 101 Other comprehensive income (loss) 24 56 (52 ) (4 ) 24 Total comprehensive income 123 295 52 (345 ) 125 Less: Comprehensive income attributable to noncontrolling interests — — (2 ) — (2 ) Comprehensive income attributable to Meritor, Inc. $ 123 $ 295 $ 50 $ (345 ) $ 123 Nine months ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 85 $ 233 $ 90 $ (321 ) $ 87 Other comprehensive income (loss) (21 ) (62 ) 3 58 (22 ) Total comprehensive income 64 171 93 (263 ) 65 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Meritor, Inc. $ 64 $ 171 $ 92 $ (263 ) $ 64
Schedule of condensed consolidating balance sheet	June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents $ 35 $ 3 $ 91 $ — $ 129 Receivables trade and other, net 1 22 399 — 422 Inventories — 148 187 — 335 Other current assets 4 21 28 — 53 TOTAL CURRENT ASSETS 40 194 705 — 939 NET PROPERTY 19 189 220 — 428 GOODWILL — 219 173 — 392 OTHER ASSETS 56 127 142 — 325 INVESTMENTS IN SUBSIDIARIES 2,471 747 — (3,218 ) — TOTAL ASSETS $ 2,586 $ 1,476 $ 1,240 $ (3,218 ) $ 2,084 CURRENT LIABILITIES: Short-term debt $ 1 $ 3 $ 10 $ — $ 14 Accounts and notes payable 41 172 290 — 503 Other current liabilities 94 62 111 — 267 TOTAL CURRENT LIABILITIES 136 237 411 — 784 LONG-TERM DEBT 969 4 7 — 980 RETIREMENT BENEFITS 573 — 28 — 601 INTERCOMPANY PAYABLE (RECEIVABLE) 1,497 (1,674 ) 177 — — OTHER LIABILITIES 32 238 45 — 315 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (621 ) 2,671 547 (3,218 ) (621 ) NONCONTROLLING INTERESTS — — 25 — 25 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 2,586 $ 1,476 $ 1,240 $ (3,218 ) $ 2,084 September 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents $ 73 $ 6 $ 114 $ — $ 193 Receivables trade and other, net 1 40 420 — 461 Inventories — 159 179 — 338 Other current assets 4 20 26 — 50 TOTAL CURRENT ASSETS 78 225 739 — 1,042 NET PROPERTY 15 183 221 — 419 GOODWILL — 219 183 — 402 OTHER ASSETS 61 129 142 — 332 INVESTMENTS IN SUBSIDIARIES 2,354 313 — (2,667 ) — TOTAL ASSETS $ 2,508 $ 1,069 $ 1,285 $ (2,667 ) $ 2,195 CURRENT LIABILITIES: Short-term debt $ 1 $ 4 $ 10 $ — $ 15 Accounts and notes payable 55 213 306 — 574 Other current liabilities 93 83 103 — 279 TOTAL CURRENT LIABILITIES 149 300 419 — 868 LONG-TERM DEBT 1,017 6 13 — 1,036 RETIREMENT BENEFITS 603 — 29 — 632 INTERCOMPANY PAYABLE (RECEIVABLE) 1,365 (1,886 ) 521 — — OTHER LIABILITIES 45 217 43 — 305 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (671 ) 2,432 235 (2,667 ) (671 ) NONCONTROLLING INTERESTS — — 25 — 25 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 2,508 $ 1,069 $ 1,285 $ (2,667 ) $ 2,195
Schedule of condensed consolidating statement of cash flows	Nine Months Ended June 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ 124 $ 25 $ (5 ) $ — $ 144 INVESTING ACTIVITIES Capital expenditures (16 ) (29 ) (21 ) — (66 ) Other investing activities — 4 (1 ) — 3 Net investing cash flows provided by discontinued operations — 1 3 — 4 CASH USED FOR INVESTING ACTIVITIES (16 ) (24 ) (19 ) — (59 ) FINANCING ACTIVITIES Repayment of notes (55 ) — — — (55 ) Repurchase of common stock (81 ) — — — (81 ) Intercompany advances (10 ) — 10 — — Other financing activities — (4 ) (11 ) — (15 ) CASH USED FOR FINANCING ACTIVITIES (146 ) (4 ) (1 ) — (151 ) EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — 2 — 2 CHANGE IN CASH AND CASH EQUIVALENTS (38 ) (3 ) (23 ) — (64 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 73 6 114 — 193 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 35 $ 3 $ 91 $ — $ 129 Nine months ended June 30, 2015 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY OPERATING ACTIVITIES $ 76 $ 19 $ 27 $ — $ 122 INVESTING ACTIVITIES Capital expenditures (4 ) (17 ) (24 ) — (45 ) Proceeds from the sale of property — — 4 — 4 Net investing cash flows provided by discontinued operations — 1 3 — 4 CASH USED FOR INVESTING ACTIVITIES (4 ) (16 ) (17 ) — (37 ) FINANCING ACTIVITIES Repayment of notes (159 ) — — — (159 ) Proceeds from debt issuance 225 — — — 225 Debt issuance costs (4 ) — — — (4 ) Repurchase of common stock (30 ) (30 ) Intercompany advances 63 — (63 ) — — Other financing activities — (3 ) (4 ) — (7 ) CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 95 (3 ) (67 ) — 25 EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — (12 ) — (12 ) CHANGE IN CASH AND CASH EQUIVALENTS 167 — (69 ) — 98 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 71 5 171 — 247 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 238 $ 5 $ 102 $ — $ 345

Earnings per Share - Reconcilia

Earnings per Share - Reconciliation of common shares (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Basic average common shares outstanding (in shares)	89.8	96.9	91.2	97.6
Impact of restricted shares, restricted share units and performance share units (in shares)	2.2	1.8	1.9	2
Impact of stock options (in shares)	0	0.1	0	0.1
Impact of convertible notes (in shares)	0	1.5	0	1.3
Diluted average common shares outstanding (in shares)	92	100.3	93.1	101

Earnings per Share - Additional

Earnings per Share - Additional information (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 01, 2015	Dec. 01, 2014	Dec. 02, 2013	Nov. 30, 2015	Nov. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015	Nov. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Impact of convertible notes (in shares)						0	1,500,000	0	1,300,000
Impact of restricted shares, restricted share units and performance share units (in shares)						2,200,000	1,800,000	1,900,000	2,000,000
Share-based compensation expense						$ 2	$ 3	$ 8	$ 8
Executive Officer
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number or shares issuable per performance share unit (in shares)				1	1
Executive Officer | Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number or shares issuable per performance share unit (in shares)											1
Exercise price (in usd per share)	$ 10.51	$ 13.74	$ 7.97
Executive Officer | Restricted Share Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price (in usd per share)	$ 10.51	$ 13.74
Shares granted (in shares)				500,000	400,000
Vesting period	3 years	3 years
Stock Options, Out-of-the-Money
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of earnings per share (in shares)								300,000
7.875% Convertible Notes Due 2026 | Convertible Notes Payable
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest rate						7.875%		7.875%		7.875%
Performance period of October 1, 2013 to September 30, 2016 | Executive Officer | Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance period								3 years
Shares authorized for grant (in shares)						1,800,000		1,800,000
Impact of convertible notes (in shares)						1,900,000	900,000	1,400,000	800,000
Performance period of October 1, 2013 to September 30, 2016 | Executive Officer | Performance Shares | Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								0.00%
Performance period of October 1, 2013 to September 30, 2016 | Executive Officer | Performance Shares | Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								200.00%
Performance period of October 1, 2013 to September 30, 2016 | Executive Officer | Performance Shares | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								50.00%
Performance period of October 1, 2013 to September 30, 2016 | Executive Officer | Performance Shares | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								25.00%
Performance period of October 1, 2013 to September 30, 2016 | Executive Officer | Performance Shares | Performance Objective Three
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								25.00%
Performance period of October 1, 2014 to September 30, 2017 | Executive Officer | Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance period								3 years
Shares authorized for grant (in shares)					600,000
Performance period of October 1, 2014 to September 30, 2017 | Executive Officer | Performance Shares | Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								0.00%
Performance period of October 1, 2014 to September 30, 2017 | Executive Officer | Performance Shares | Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								200.00%
Performance period of October 1, 2014 to September 30, 2017 | Executive Officer | Performance Shares | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								75.00%
Performance period of October 1, 2014 to September 30, 2017 | Executive Officer | Performance Shares | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								25.00%
Performance period of October 1, 2015 to September 30, 2018 | Executive Officer | Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance period				3 years
Shares authorized for grant (in shares)				700,000
Performance period of October 1, 2015 to September 30, 2018 | Executive Officer | Performance Shares | Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								0.00%
Performance period of October 1, 2015 to September 30, 2018 | Executive Officer | Performance Shares | Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								200.00%
Performance period of October 1, 2015 to September 30, 2018 | Executive Officer | Performance Shares | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								50.00%
Performance period of October 1, 2015 to September 30, 2018 | Executive Officer | Performance Shares | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								50.00%

New Accounting Standards (Detai

New Accounting Standards (Details) $ in Millions	Jun. 30, 2016USD ($)
Accounting Standards Update 2015-17
Item Effected [Line Items]
Deferred tax assets, current	$ 17

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Sales	$ 0	$ 0	$ 0	$ 1
Loss before income taxes	(1)	(2)	(5)	(1)
Benefit from income taxes	0	0	1	0
Loss from discontinued operations attributable to Meritor, Inc.	(1)	$ (2)	(4)	$ (1)
Discontinued operations, assets	1		1		$ 4
Discontinued operations, liabilities	$ 6		$ 6		$ 10

Goodwill (Details)

Goodwill (Details) $ in Millions	9 Months Ended
	Jun. 30, 2016USD ($)segment
Goodwill [Line Items]
Number of operating segments | segment	2
Number of reportable segments | segment	2
Goodwill [Roll Forward]
Beginning balance	$ 402
Foreign currency translation	(10)
Ending balance	392
Commercial Truck & Industrial
Goodwill [Roll Forward]
Beginning balance	239
Foreign currency translation	(8)
Ending balance	231
Aftermarket & Trailer
Goodwill [Roll Forward]
Beginning balance	163
Foreign currency translation	(2)
Ending balance	$ 161

Restructuring Costs - Additiona

Restructuring Costs - Additional Details (Details) $ in Millions	3 Months Ended				6 Months Ended		9 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)positionemployee	Mar. 31, 2015USD ($)positionemployee	Dec. 31, 2014USD ($)position	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 11	$ 13					$ 11	$ 13	$ 10	$ 11
Restructuring costs	6	9					9	15
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	10	13					10	13	10	11
Restructuring costs							8	15
Plant Shutdown & Other
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	1	0					1	0	$ 0	$ 0
Restructuring costs							1	0
Closure of Corporate Engineering Facility
Restructuring Cost and Reserve [Line Items]
Restructuring costs						$ 1
Closure of Corporate Engineering Facility | Hourly And Salaried Positions
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | employee			30
Commercial Truck & Industrial | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs	5				$ 3
Restructuring cost, expected cost	$ 8						$ 8
Commercial Truck & Industrial | M2016 Strategy
Restructuring Cost and Reserve [Line Items]
Restructuring costs				$ 3
Commercial Truck & Industrial | M2016 Strategy | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 2
Commercial Truck & Industrial | M2016 Strategy | Hourly Positions
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position				50
Commercial Truck & Industrial | M2016 Strategy | Salaried Position
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position				20
Commercial Truck & Industrial | M2016 Strategy | Hourly And Salaried Positions
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | employee		40
Commercial Truck & Industrial | South America Labor Reduction II | Employee Severance
Restructuring Cost and Reserve [Line Items]
Cost incurred to date		$ 6						$ 6
Commercial Truck & Industrial | South America Labor Reduction II | Hourly Positions | Employee Severance
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position		230
Commercial Truck & Industrial | South America Labor Reduction II | Salaried Position | Employee Severance
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position		20
Commercial Truck & Industrial | European Labor Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring costs			$ 2
Commercial Truck & Industrial | European Labor Reduction | Hourly Positions
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position			20
Commercial Truck & Industrial | European Labor Reduction | Salaried Position
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position			20

Restructuring Costs - Changes i

Restructuring Costs - Changes in restructuring reserves (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
Beginning balance			$ 10	$ 11
Charges to continuing operations	$ 6	$ 9	9	15
Cash payments – continuing operations			(8)	(10)
Other				(3)
Ending balance	11	13	11	13
Less: non-current restructuring reserves	(2)	(2)	(2)	(2)	$ (3)
Restructuring reserves – current	9	11	9	11	$ 7
Employee Termination Benefits
Restructuring Reserve [Roll Forward]
Beginning balance			10	11
Charges to continuing operations			8	15
Cash payments – continuing operations			(8)	(10)
Other				(3)
Ending balance	10	13	10	13
Less: non-current restructuring reserves	(2)	(2)	(2)	(2)
Restructuring reserves – current	8	11	8	11
Plant Shutdown & Other
Restructuring Reserve [Roll Forward]
Beginning balance			0	0
Charges to continuing operations			1	0
Cash payments – continuing operations			0	0
Other				0
Ending balance	1	0	1	0
Less: non-current restructuring reserves	0	0	0	0
Restructuring reserves – current	$ 1	$ 0	$ 1	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Contingency [Line Items]
Net pre-tax income (loss) tax benefit not recorded	$ 19	$ 6	$ 47	$ 42
Minimum
Income Tax Contingency [Line Items]
Reversal of deferred tax asset, valuation allowance			500
Maximum
Income Tax Contingency [Line Items]
Reversal of deferred tax asset, valuation allowance			$ 600

Accounts Receivable Factoring58

Accounts Receivable Factoring and Securitization (Details) € in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Feb. 19, 2016EUR (€)	Feb. 19, 2016USD ($)	Sep. 30, 2015EUR (€)	Sep. 30, 2015USD ($)
Costs associated with off balance sheet factoring arrangements	$ 2,000,000	$ 1,000,000	$ 6,000,000	$ 4,000,000
Swedish Factoring Facility
Maximum limit for sale of eligible trade receivables					€ 155	$ 172,000,000
Utilization of accounts receivable factoring facility under arrangement					113	125,000,000			€ 108	$ 121,000,000
Liquidity commitment on facilities			364 days
U.S Factoring Facility
Maximum limit for sale of eligible trade receivables							€ 80	$ 89,000,000
Utilization of accounts receivable factoring facility under arrangement					47	53,000,000			74	83,000,000
United Kingdom Factoring Facility
Maximum limit for sale of eligible trade receivables					25	28,000,000
Utilization of accounts receivable factoring facility under arrangement					8	8,000,000			8	8,000,000
Italy Factoring Facility
Maximum limit for sale of eligible trade receivables					30	33,000,000
Utilization of accounts receivable factoring facility under arrangement					€ 20	22,000,000			€ 22	24,000,000
Other Factoring Facility
Utilization of accounts receivable factoring facility under arrangement						14,000,000				18,000,000
U.S. Securitization Financing Facility
Maximum limit for securitization financing arrangement						100,000,000
Debt-to-EBITDA ratio			2.25
Outstanding balance under accounts receivable securitization program						$ 0				$ 0

Operating Cash Flow (Details)

Operating Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net income	$ 42	$ 14	$ 101	$ 87
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(1)	(2)	(4)	(1)
INCOME FROM CONTINUING OPERATIONS	43	16	105	88
Adjustments to income from continuing operations to arrive at cash provided by operating activities:
Depreciation and amortization			48	49
Restructuring costs	6	9	9	15
Loss on debt extinguishment			0	20
Gain on sale of property			(2)	(3)
Equity in earnings of affiliates	$ (9)	$ (10)	(26)	(28)
Pension and retiree medical expense			15	20
Other adjustments to income from continuing operations			7	8
Dividends received from equity method investments			29	26
Pension and retiree medical contributions			(32)	(36)
Restructuring payments			(8)	(10)
Changes in off-balance sheet accounts receivable factoring			(30)	94
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations			31	(111)
Operating cash flows provided by continuing operations			146	132
Operating cash flows used for discontinued operations			(2)	(10)
CASH PROVIDED BY OPERATING ACTIVITIES			$ 144	$ 122

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 132	$ 133
Work in process	30	28
Raw materials, parts and supplies	173	177
Total inventories	$ 335	$ 338

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Other Current Assets Disclosure [Abstract]
Current deferred income tax assets	$ 19	$ 20
Asbestos-related recoveries (see Note 19)	13	13
Prepaid and other	21	17
Other current assets	$ 53	$ 50

Net Property (Details)

Net Property (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Property at cost	$ 1,269	$ 1,287
Less: accumulated depreciation	(841)	(868)
Net property	428	419
Land and land improvements
Property, Plant and Equipment [Line Items]
Property at cost	30	31
Buildings
Property, Plant and Equipment [Line Items]
Property at cost	218	214
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property at cost	842	864
Company-owned tooling
Property, Plant and Equipment [Line Items]
Property at cost	116	116
Construction in progress
Property, Plant and Equipment [Line Items]
Property at cost	$ 63	$ 62

Other Assets - Summary of other

Other Assets - Summary of other assets (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Other Assets, Noncurrent [Abstract]
Investments in non-consolidated joint ventures	$ 98	$ 96
Asbestos-related recoveries (see Note 19)	35	42
Unamortized revolver debt issuance costs	8	10
Capitalized software costs, net	27	28
Non-current deferred income tax assets, net	26	28
Assets for uncertain tax positions	3	3
Prepaid pension costs	112	110
Other	16	15
Other assets	$ 325	$ 332

Other Assets - Additional infor

Other Assets - Additional information (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Equity Method Joint Venture
Schedule of Equity Method Investments [Line Items]
Investments in joint venture	$ 43	$ 42

Other Current Liabilities - Sum

Other Current Liabilities - Summary of other current liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015
Other Current Liabilities Disclosure [Abstract]
Compensation and benefits	$ 110	$ 122
Income taxes	10	9
Taxes other than income taxes	22	23
Accrued interest	15	14
Product warranties	18	22	$ 23
Environmental reserves (see Note 19)	8	9
Restructuring (see Note 6)	9	7	$ 11
Asbestos-related liabilities (see Note 19)	17	17
Indemnity obligations (see Note 19)	2	2
Other	56	54
Other current liabilities	$ 267	$ 279

Other Current Liabilities - S66

Other Current Liabilities - Summary of product warranties (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Total product warranties – beginning of period	$ 48	$ 51
Accruals for product warranties	11	11
Payments	(13)	(13)
Change in estimates and other	(1)	1
Total product warranties – end of period	45	50
Less: Non-current product warranties	(27)	(27)	$ (26)
Product warranties – current	$ 18	$ 23	$ 22

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015
Other Liabilities Disclosure [Abstract]
Asbestos-related liabilities (see Note 19)	$ 121	$ 109
Restructuring (see Note 6)	2	3	$ 2
Non-current deferred income tax liabilities	101	99
Liabilities for uncertain tax positions	14	15
Product warranties (see Note 14)	27	26	$ 27
Environmental (see Note 19)	6	8
Indemnity obligations (see Note 19)	12	13
Other	32	32
Other liabilities	$ 315	$ 305

Long-Term Debt - Schedule of lo

Long-Term Debt - Schedule of long-term debt (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Capital lease obligation	$ 17	$ 17
Subtotal	994	1,051
Less: current maturities	(14)	(15)
Long-term debt	980	1,036
Unamortized issuance cost	8	10
Convertible Notes Payable
Debt Instrument [Line Items]
Unamortized discount on convertible notes	(16)	(20)
4.625% convertible notes due 2026 | Convertible Notes Payable
Debt Instrument [Line Items]
Debt	$ 0	$ 55
Interest rate	4.625%	4.625%
4.0% convertible notes due 2027 | Convertible Notes Payable
Debt Instrument [Line Items]
Debt	$ 142	$ 142
Interest rate	4.00%	4.00%
Unamortized issuance cost	$ 1	$ 1
7.875% Convertible Notes Due 2026 | Convertible Notes Payable
Debt Instrument [Line Items]
Debt	$ 129	$ 127
Interest rate	7.875%	7.875%
Unamortized issuance cost	$ 2	$ 3
Original issuance discount	9	10
6.75% notes due 2021
Debt Instrument [Line Items]
Debt	$ 271	$ 270
Interest rate	6.75%	6.75%
Unamortized issuance cost	$ 4	$ 5
6.25% notes due 2024
Debt Instrument [Line Items]
Debt	$ 442	$ 442
Interest rate	6.25%	6.25%
Unamortized issuance cost	$ 8	$ 8
Export financing arrangements and other
Debt Instrument [Line Items]
Debt	$ 9	$ 18

Long-Term Debt - Revolving Cred

Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility	9 Months Ended
	Jun. 30, 2016USD ($)	Jun. 02, 2016USD ($)	Sep. 30, 2015USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 506,000,000
Borrowings outstanding	$ 0		$ 0
Letters of credit outstanding	$ 0		$ 0
Revolving Credit Facility with Conversion Election Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity		466,000,000
Revolving Credit Facility - Amended - Matures In April 2017
Line of Credit Facility [Line Items]
Maximum borrowing capacity		20,000,000
Revolving Credit Facility - Amended - Matures In February 2019
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 486,000,000
Amended Revolving Credit Facility
Line of Credit Facility [Line Items]
Collateral test, maximum ratio	1
Value of company assets collateralized	$ 623,000,000
Maximum limit on issuance, letters of credit	$ 100,000,000
Triggering Event One
Line of Credit Facility [Line Items]
Debt-to-EBITDA ratio	2.25
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.25%
Unused capacity, commitment fee percentage	0.50%
Prime Rate | Overnight Revolving Credit Loans
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%

Long-Term Debt - Issuance of De

Long-Term Debt - Issuance of Debt Securities (Details) - USD ($)	Jun. 11, 2015	Feb. 13, 2014	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Proceeds from debt issuance			$ 0	$ 225,000,000
Principal amount redeemable			79,000,000
Redemption, principal amount outstanding, minimum			$ 146,000,000
6.25% notes due 2024
Debt Instrument [Line Items]
Proceeds from debt issuance		$ 225,000,000
Interest rate			6.25%		6.25%
Debt			$ 442,000,000		$ 442,000,000
6.25% notes due 2024 | Redemption Period, Equity Clawback
Debt Instrument [Line Items]
Debt redemption price percentage			106.25%
Promissory Notes | 6.25% notes due 2024
Debt Instrument [Line Items]
Debt Instrument, face amount	$ 225,000,000	$ 225,000,000
Issuance price percentage		100.00%
Debt	450,000,000
Corporate Debt Securities | 6.25% notes due 2024 | 2019
Debt Instrument [Line Items]
Debt redemption price percentage			103.125%
Corporate Debt Securities | 6.25% notes due 2024 | 2020
Debt Instrument [Line Items]
Debt redemption price percentage			102.083%
Corporate Debt Securities | 6.25% notes due 2024 | 2021
Debt Instrument [Line Items]
Debt redemption price percentage			101.042%
Corporate Debt Securities | 6.25% notes due 2024 | 2022 and thereafter
Debt Instrument [Line Items]
Debt redemption price percentage			100.00%
Corporate Debt Securities | 6.25% notes due 2024 | Change in Control Redemption
Debt Instrument [Line Items]
Debt redemption price percentage			101.00%
Corporate Debt Securities | 10.625% Notes Due 2018
Debt Instrument [Line Items]
Repurchased amount of debt		$ 250,000,000
Interest rate		10.625%
Convertible Notes | 7.875% Convertible Notes Due 2026
Debt Instrument [Line Items]
Repurchased amount of debt	110,000,000				110,000,000
Repayments of convertible debt	$ 179,000,000				$ 179,000,000
Interest rate			7.875%		7.875%
Debt			$ 129,000,000		$ 127,000,000

Long-Term Debt - Repurchases of

Long-Term Debt - Repurchases of Debt Securities (Details) - Convertible Notes Payable - USD ($) $ in Millions	Mar. 01, 2016	Jun. 11, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2015	Jun. 30, 2016
7.875% Convertible Notes Due 2026
Debt Instrument [Line Items]
Principal amount of convertible notes repurchased		$ 110	$ 110			$ 110
Extinguishment of debt, amount			$ 25	$ 85		110
Repurchase price percentage			58.00%	64.00%
Repayments of convertible debt		$ 179				179
Carrying amount of liability component			$ 121			121
Carrying amount of equity component			58			58
Net loss on debt extinguishment						24
Unamortized discount and deferred issuance costs			14			14
Redemption premium			$ 10			$ 10
Interest rate			7.875%			7.875%	7.875%
4.0% convertible notes due 2027
Debt Instrument [Line Items]
Principal amount of convertible notes repurchased				$ 19
Extinguishment of debt, amount				$ 4	$ 15
Repurchase price percentage			4.00%	5.00%	6.00%
Net loss on debt extinguishment						$ 1
Interest rate			4.00%			4.00%	4.00%
4.625% convertible notes due 2026
Debt Instrument [Line Items]
Principal amount of convertible notes repurchased	$ 55
Repurchase price percentage	100.00%
Interest rate			4.625%			4.625%	4.625%

Long-Term Debt - Capital Leases

Long-Term Debt - Capital Leases (Details) - USD ($)	Mar. 20, 2012	Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Outstanding capital lease obligations		$ 17,000,000	$ 17,000,000
Financing Arrangements For Capital Leases
Debt Instrument [Line Items]
Maximum amount of progress payments for equipment under construction	$ 10,000,000
Financing Arrangements For Capital Leases | Five-Year Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate		5.64%
Capital Lease Arrangements
Debt Instrument [Line Items]
Capital lease, term	60 months
Outstanding capital lease obligations		$ 7,000,000	10,000,000
Capital Lease Arrangements | 30-Day LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		4.75%
Other Capital Lease Arrangements
Debt Instrument [Line Items]
Outstanding capital lease obligations		$ 10,000,000	$ 7,000,000

Long-Term Debt - Letter of Cred

Long-Term Debt - Letter of Credit Facilities (Details) - USD ($)	Jun. 30, 2016	Dec. 20, 2015	Sep. 30, 2015	Feb. 21, 2014
Standby Letters of Credit
Line of Credit Facility [Line Items]
Maximum limit on issuance, letters of credit		$ 25,000,000		$ 30,000,000
Letters of credit outstanding	$ 22,000,000		$ 24,000,000
Other Letters of Credit Arrangements
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 5,000,000		$ 6,000,000

Long-Term Debt - Export financi

Long-Term Debt - Export financing arrangements (Details) - BRAZIL - Note payable - Export Financing Arrangement - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Interest rate	5.50%
Long-term debt outstanding	$ 9	$ 18

Long-Term Debt - Other (Details

Long-Term Debt - Other (Details) - CHINA - Notes Payable to Banks - Other Export Financing Arrangements - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Debt default, amount	$ 35
Long-term debt outstanding	$ 9	$ 13

Financial Instruments - Fair va

Financial Instruments - Fair value of financial instruments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 129	$ 193
Short-term debt	14	15
Long-term debt	980	1,036
Carrying Value | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (asset)	0	1
Foreign exchange forward contracts (liability)	1	3
Carrying Value | Foreign currency option contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term foreign currency option contracts (asset)	0	1
Long-term foreign currency option contracts (asset)	0	1
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	129	193
Short-term debt	14	15
Long-term debt	947	1,123
Fair Value | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (asset)	0	1
Foreign exchange forward contracts (liability)	1	3
Fair Value | Foreign currency option contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term foreign currency option contracts (asset)	0	1
Long-term foreign currency option contracts (asset)	$ 0	$ 1

Financial Instruments - Offsett

Financial Instruments - Offsetting of derivative assets and liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Derivative Asset
Gross Amounts Recognized	$ 1	$ 1
Gross Amounts Offset	(1)	0
Net Amounts Reported	0	1
Derivative Liabilities
Gross Amounts Recognized	2	3
Gross Amounts Offset	(1)	0
Net Amounts Reported	$ 1	$ 3

Financial Instruments - Fair 78

Financial Instruments - Fair value of financial instruments by valuation hierarchy (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Level 1
Cash and cash equivalents	$ 129	$ 193
Short-term debt	0	0
Long-term debt	0	0
Foreign exchange forward contracts (liability)	0
Level 1 | Foreign exchange forward contracts
Foreign exchange forward contracts (asset)		0
Foreign exchange forward contracts (liability)		0
Level 1 | Foreign currency option contracts | Short-term
Foreign currency option contracts (asset)		0
Level 1 | Foreign currency option contracts | Long-term
Foreign currency option contracts (asset)		0
Level 2
Cash and cash equivalents	0	0
Short-term debt	0	0
Long-term debt	935	1,102
Foreign exchange forward contracts (liability)	1
Level 2 | Foreign exchange forward contracts
Foreign exchange forward contracts (asset)		1
Foreign exchange forward contracts (liability)		3
Level 2 | Foreign currency option contracts | Short-term
Foreign currency option contracts (asset)		0
Level 2 | Foreign currency option contracts | Long-term
Foreign currency option contracts (asset)		0
Level 3
Cash and cash equivalents	0	0
Short-term debt	14	15
Long-term debt	12	21
Foreign exchange forward contracts (liability)	$ 0
Level 3 | Foreign exchange forward contracts
Foreign exchange forward contracts (asset)		0
Foreign exchange forward contracts (liability)		0
Level 3 | Foreign currency option contracts | Short-term
Foreign currency option contracts (asset)		1
Level 3 | Foreign currency option contracts | Long-term
Foreign currency option contracts (asset)		$ 1

Financial Instruments - Reconci

Financial Instruments - Reconciliation of changes in fair value (Details) - Foreign currency option contracts - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)	$ 2		$ 2
Level 3
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, beginning of period	0	$ 4	2	$ 3
Purchases, issuances, sales and settlements:
Purchases			1	5
Settlements				(11)
Transfer in and / or out of Level 3	0	0	0	0
Reclass between short-term and long-term		(1)		0
Fair Value, end of period	0	1	0	1
Level 3 | Short-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, beginning of period	0	2	1	2
Purchases, issuances, sales and settlements:
Purchases			1	5
Settlements				(10)
Transfer in and / or out of Level 3	0	0	0	0
Reclass between short-term and long-term		0		(1)
Fair Value, end of period	0	0	0	0
Level 3 | Long-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, beginning of period	0	2	1	1
Purchases, issuances, sales and settlements:
Purchases			0	0
Settlements				(1)
Transfer in and / or out of Level 3	0	0	0	0
Reclass between short-term and long-term		(1)		1
Fair Value, end of period	0	1	0	1
Level 3 | Included in other income
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)	0		(2)
Total realized gains (losses)		(1)		2
Level 3 | Included in other income | Short-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)	0		(2)
Total realized gains (losses)		(1)		2
Level 3 | Included in other income | Long-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)	$ 0		0
Total realized gains (losses)		0		0
Level 3 | Included in cost of sales
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)		(1)	(1)	(1)
Total realized gains (losses)				3
Level 3 | Included in cost of sales | Short-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)		(1)	0	(1)
Total realized gains (losses)				3
Level 3 | Included in cost of sales | Long-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Total unrealized gains (losses)		$ 0	$ (1)	0
Total realized gains (losses)				$ 0

Financial Instruments - Additio

Financial Instruments - Additional information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Foreign currency option contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total unrealized gains (losses)	$ (2,000,000)		$ (2,000,000)
Brazil, Brazil Real | Foreign currency option contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency contract, notional amount							$ 48,000,000
Sweden, Krona | Foreign currency option contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency contract, notional amount					$ 19,000,000	$ 30,000,000
Euro | Foreign currency option contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency contract, notional amount					$ 21,000,000	$ 27,000,000
Maximum | Foreign exchange forward contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Term of foreign exchange forward contract			1 year
Included in cost of sales | Level 3 | Foreign currency option contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total unrealized gains (losses)		$ 1,000,000	$ 1,000,000	$ 1,000,000

Retirement Benefit Liabilitie81

Retirement Benefit Liabilities - Summary of retirement benefits (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Retiree medical liability	$ 424	$ 438
Pension liability	202	219
Other	14	14
Subtotal	640	671
Less: current portion (included in compensation and benefits, Note 14)	(39)	(39)
Retirement benefits	$ 601	$ 632

Retirement Benefit Liabilitie82

Retirement Benefit Liabilities - Components of net periodic pension and retiree medical expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension
Service cost	$ 0	$ 1	$ 0	$ 1
Interest cost	16	17	49	53
Assumed return on plan assets	(24)	(28)	(74)	(84)
Amortization of prior service costs	0	0	0	0
Recognized actuarial loss	6	6	18	20
Total expense (income)	(2)	(4)	(7)	(10)
Retiree Medical
Service cost	0	0	0	0
Interest cost	4	5	13	15
Assumed return on plan assets	0	0	0	0
Amortization of prior service costs	0	(1)	0	(1)
Recognized actuarial loss	3	6	9	16
Total expense (income)	$ 7	$ 10	$ 22	$ 30

Contingencies - Additional Info

Contingencies - Additional Information (Details) $ in Millions	Dec. 12, 2015USD ($)	Jun. 30, 2016USD ($)siteclaim	Jun. 30, 2016USD ($)siteclaim	Sep. 30, 2015USD ($)claim	Sep. 30, 2009USD ($)
Loss Contingencies [Line Items]
Environmental accrual balance		$ 14	$ 14	$ 16
Discounted amount environmental accrual for on-going operations maintenance and monitoring		8	8
Undiscounted amount environmental accrual for on-going operations maintenance and monitoring		8	8
Maremont Asbestos
Loss Contingencies [Line Items]
Environmental accrual balance		$ 73	$ 73	$ 74
Number of pending claims | claim		5,800	5,800	5,600
Obligation period for asbestos personal injury claims			10 years
Estimated insurance recoveries		$ 34	$ 34	$ 41
Pending and future claims		71	71	71
Rockwell Asbestos
Loss Contingencies [Line Items]
Environmental accrual balance		$ 57	$ 57	$ 58
Number of pending claims | claim		3,200	3,200	3,000
Obligation period for asbestos personal injury claims			10 years
Estimated insurance recoveries		$ 14	$ 14	$ 14
Pending and future claims		55	55	55
Home Insurance Company
Loss Contingencies [Line Items]
Estimated insurance recoveries		5.5	$ 5.5
Cash settlement		3
TL Trailer Axles
Loss Contingencies [Line Items]
Cash settlement		$ 6
Superfund Sites
Loss Contingencies [Line Items]
Number of Superfund environmental sites | site		9	9
Environmental costs reasonably possible		$ 17	$ 17
Environmental accrual balance		2	2	2
Non-Superfund Sites
Loss Contingencies [Line Items]
Environmental costs reasonably possible		31	31
Environmental accrual balance		12	12	14
Insurance Receivables | Rockwell Asbestos
Loss Contingencies [Line Items]
Estimated insurance recoveries		9	9	9
Indemnity Obligations
Loss Contingencies [Line Items]
Guarantee obligations recorded		12	12	13	$ 28
MSSC
Loss Contingencies [Line Items]
Indemnity obligations liability		$ 1	$ 1	2
Low Range
Loss Contingencies [Line Items]
Site contingency, accrual, discount rate		0.50%	0.50%
Low Range | Maremont Asbestos
Loss Contingencies [Line Items]
Range of possible loss		$ 71	$ 71
Low Range | Rockwell Asbestos
Loss Contingencies [Line Items]
Range of possible loss				55
High Range
Loss Contingencies [Line Items]
Site contingency, accrual, discount rate		2.50%	2.50%
High Range | Maremont Asbestos
Loss Contingencies [Line Items]
Range of possible loss		$ 100	$ 100
High Range | Rockwell Asbestos
Loss Contingencies [Line Items]
Range of possible loss				74
Future tax years | Value Added Tax
Loss Contingencies [Line Items]
Increased liability		$ 10	$ 10	$ 10
Insurance Settlement | Maremont Asbestos
Loss Contingencies [Line Items]
Cash settlement	$ 17
Litigation settlement, expense	5
Increased liability	$ 12

Contingencies - Summary of envi

Contingencies - Summary of environmental reserves (Details) $ in Millions	9 Months Ended
	Jun. 30, 2016USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance	$ 16
Payments and other	(2)
Accruals	0
Ending balance	14
Superfund Sites
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance	2
Payments and other	0
Accruals	0
Ending balance	2
Non-Superfund Sites
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance	14
Payments and other	(2)
Accruals	0
Ending balance	$ 12

Contingencies - Asbestos relate

Contingencies - Asbestos related reserves and recoveries (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Loss Contingencies [Line Items]
Asbestos-related liabilities	$ 14	$ 16
Maremont Asbestos
Loss Contingencies [Line Items]
Pending and future claims	71	71
Billed but unpaid claims	2	3
Asbestos-related liabilities	73	74
Asbestos-related insurance recoveries	34	41
Rockwell Asbestos
Loss Contingencies [Line Items]
Pending and future claims	55	55
Billed but unpaid claims	2	3
Asbestos-related liabilities	57	58
Asbestos-related insurance recoveries	$ 14	$ 14

Shareowners' Equity - Equity an

Shareowners' Equity - Equity and equity-linked repurchase authorizations (Details) - USD ($) shares in Millions	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jul. 21, 2016	Mar. 01, 2016	Sep. 30, 2015	Jan. 31, 2015	Sep. 30, 2014	Jun. 30, 2014
Class of Stock [Line Items]
Repurchase of common stock	$ 81,000,000	$ 30,000,000
Treasury stock (in shares)	12.8				4.2
Treasury stock, repurchase amount	$ 136,000,000				$ 55,000,000
Subsequent Event
Class of Stock [Line Items]
Authorized repurchase of securities, with debt reduction target			$ 100,000,000
Debt repurchase program, amount authorized			$ 150,000,000
Equity and Equity-Linked Securities (Including Convertible Debt Securities)
Class of Stock [Line Items]
Authorized repurchase of securities, with debt reduction target						$ 150,000,000
Authorized repurchase of securities, amount remaining	$ 150,000,000				$ 150,000,000
Equity and Equity-Linked Securities (Including Convertible Debt Securities) | M2016 Strategy
Class of Stock [Line Items]
Authorized repurchase of securities, with debt reduction target							$ 210,000,000	$ 210,000,000
Authorized repurchase of securities, without debt reduction target							$ 40,000,000
Shares of common stock repurchased	8.6
Repurchase of common stock	$ 81,000,000
Treasury stock (in shares)	12.8
Treasury stock, repurchase amount	$ 136,000,000
Convertible notes, repurchase amount	$ 19,000,000
Convertible Notes Payable | 4.0% convertible notes due 2027
Class of Stock [Line Items]
Interest rate	4.00%				4.00%
Principal amount of convertible notes repurchased		$ 19,000,000
Convertible Notes Payable | 4.625% convertible notes due 2026
Class of Stock [Line Items]
Interest rate	4.625%				4.625%
Principal amount of convertible notes repurchased				$ 55,000,000

Shareowners' Equity - Schedule

Shareowners' Equity - Schedule of accumulated other comprehensive loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	$ (742)	$ (793)	$ (766)	$ (749)
Other comprehensive income (loss) before reclassification	(9)	12	(3)	(57)
Amounts reclassified from accumulated other comprehensive loss - net of tax	9	11	27	36
Net current-period other comprehensive income (loss)	0	23	24	(21)
Ending balance	(742)	(770)	(742)	(770)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	(50)	(25)	(54)	41
Other comprehensive income (loss) before reclassification	(10)	13	(6)	(54)
Amounts reclassified from accumulated other comprehensive loss - net of tax	0	0	0	1
Net current-period other comprehensive income (loss)	(10)	13	(6)	(53)
Ending balance	(60)	(12)	(60)	(12)
Employee Benefit Related Adjustments
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	(687)	(766)	(705)	(789)
Other comprehensive income (loss) before reclassification	(2)	1	(2)	0
Amounts reclassified from accumulated other comprehensive loss - net of tax	9	11	27	35
Net current-period other comprehensive income (loss)	7	12	25	35
Ending balance	(680)	(754)	(680)	(754)
Unrealized Loss, net of tax
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	(5)	(2)	(7)	(1)
Other comprehensive income (loss) before reclassification	3	(2)	5	(3)
Amounts reclassified from accumulated other comprehensive loss - net of tax	0	0	0	0
Net current-period other comprehensive income (loss)	3	(2)	5	(3)
Ending balance	$ (2)	$ (4)	$ (2)	$ (4)

Shareowners' Equity - Reclassif

Shareowners' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	$ 9	$ 11	$ 27	$ 36
Employee Benefit Related Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	9	11	27	35
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	0	0	0	1
Amount Reclassified from Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	9		27	(36)
Amount Reclassified from Accumulated Other Comprehensive Income | Employee Benefit Related Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Prior service costs		(1)		(1)
Amount Reclassified from Accumulated Other Comprehensive Income | Actuarial losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	9	12	27	36
Amount Reclassified from Accumulated Other Comprehensive Income | Employee Benefit Related Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	9	11	27	35
Tax expense	$ 0	0	$ 0	0
Total reclassifications for the period		$ 11		35
Amount Reclassified from Accumulated Other Comprehensive Income | Foreign Currency Translation Related Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax				1
Amount Reclassified from Accumulated Other Comprehensive Income | Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax				1
Tax expense				0
Total reclassifications for the period				$ 1

Business Segment Information -

Business Segment Information - Summary of Segment Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)segment	Jun. 30, 2015USD ($)
Number of reportable segments | segment			2
Total Sales	$ 841	$ 909	$ 2,471	$ 2,652
Commercial Truck & Industrial
Total Sales	623	682	1,846	2,020
Aftermarket & Trailer
Total Sales	218	227	625	632
Operating Segments | Commercial Truck & Industrial
Total Sales	640	705	1,904	2,089
Operating Segments | Aftermarket & Trailer
Total Sales	227	233	648	653
Eliminations
Total Sales	(26)	(29)	(81)	(90)
Eliminations | Commercial Truck & Industrial
Total Sales	17	23	58	69
Eliminations | Aftermarket & Trailer
Total Sales	$ 9	$ 6	$ 23	$ 21

Business Segment Information 90

Business Segment Information - Segment Income Attributable to Parent (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Interest expense, net	$ (20)	$ (38)	$ (63)	$ (78)
Provision for income taxes	(8)	(6)	(22)	(19)
Depreciation and amortization			(48)	(49)
Noncontrolling interests	(1)	(1)	(2)	(2)
Restructuring costs	(6)	(9)	(9)	(15)
Net income from continuing operations	42	15	103	86
Operating Segments
Segment Reporting Information [Line Items]
Segment EBITDA	99	89	255	257
Operating Segments | Commercial Truck & Industrial
Segment Reporting Information [Line Items]
Segment EBITDA	61	58	169	171
Operating Segments | Aftermarket & Trailer
Segment Reporting Information [Line Items]
Segment EBITDA	38	31	86	86
Segment Reconciling Items
Segment Reporting Information [Line Items]
Unallocated legacy and corporate costs, net	(3)	(2)	(2)	(4)
Interest expense, net	(20)	(38)	(63)	(78)
Provision for income taxes	(8)	(6)	(22)	(19)
Depreciation and amortization	(17)	(17)	(48)	(49)
Noncontrolling interests	(1)	(1)	(2)	(2)
Loss on sale of receivables	(2)	(1)	(6)	(4)
Restructuring costs	$ (6)	$ (9)	$ (9)	$ (15)

Business Segment Information 91

Business Segment Information - Schedule of Segment Assets (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
TOTAL ASSETS	$ 2,084	$ 2,195
Operating Segments
Segment Reporting Information [Line Items]
TOTAL ASSETS	1,932	2,017
Operating Segments | Commercial Truck & Industrial
Segment Reporting Information [Line Items]
TOTAL ASSETS	1,488	1,569
Operating Segments | Aftermarket & Trailer
Segment Reporting Information [Line Items]
TOTAL ASSETS	444	448
Corporate
Segment Reporting Information [Line Items]
TOTAL ASSETS	374	434
Segment Reconciling Items
Segment Reporting Information [Line Items]
Less: Accounts receivable sold under off-balance sheet factoring programs	$ (222)	$ (256)

Supplemental Guarantor Conden92

Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Condensed Financial Statements, Captions [Line Items]
Parent's total ownership, percentage	100.00%
Threshold for reporting consolidating financial statements	25.00%
Parent's portion of non-transferable net assets	$ 29
Parent
Condensed Financial Statements, Captions [Line Items]
Pension and retiree benefits, parent obligation	601		$ 631
Proceeds from investment in subsidiary	18	$ 37
Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Debt and capital lease obligations, subsidiary portion	$ 24		$ 33

Supplemental Guarantor Conden93

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Operations (Unaudited) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Sales
Sales	$ 841	$ 909	$ 2,471	$ 2,652
Cost of sales	(714)	(785)	(2,119)	(2,298)
GROSS MARGIN	127	124	352	354
Selling, general and administrative	(59)	(65)	(175)	(187)
Restructuring costs	(6)	(9)	(9)	(15)
Other operating income (expense), net	0	1	(3)	2
OPERATING INCOME (LOSS)	62	51	165	154
Other income (expense), net	0	(1)	(1)	3
Equity in earnings of affiliates	9	10	26	28
Interest income (expense), net	(20)	(38)	(63)	(78)
INCOME (LOSS) BEFORE INCOME TAXES	51	22	127	107
Provision for income taxes	(8)	(6)	(22)	(19)
Equity income (loss) from continuing operations of subsidiaries	0	0	0	0
INCOME (LOSS) FROM CONTINUING OPERATIONS	43	16	105	88
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(1)	(2)	(4)	(1)
Net income	42	14	101	87
Less: Net income attributable to noncontrolling interests	(1)	(1)	(2)	(2)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	41	13	99	85
Elims
Sales
Sales	(44)	(53)	(131)	(147)
Cost of sales	44	53	131	147
GROSS MARGIN	0	0	0	0
Selling, general and administrative	0	0	0	0
Restructuring costs	0	0	0	0
Other operating income (expense), net	0	0	0	0
OPERATING INCOME (LOSS)	0	0	0	0
Other income (expense), net	0	0	0	0
Equity in earnings of affiliates	0	0	0	0
Interest income (expense), net	0	0	0	0
INCOME (LOSS) BEFORE INCOME TAXES	0	0	0	0
Provision for income taxes	0	0	0	0
Equity income (loss) from continuing operations of subsidiaries	(175)	(117)	(350)	(322)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(175)	(117)	(350)	(322)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	0	3	9	1
Net income	(175)	(114)	(341)	(321)
Less: Net income attributable to noncontrolling interests	0	0	0	0
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	(175)	(114)	(341)	(321)
Parent
Sales
Sales	0	0	0	0
Parent | Reportable Legal Entities
Sales
Sales	0	0	0	0
Cost of sales	(14)	(14)	(40)	(38)
GROSS MARGIN	(14)	(14)	(40)	(38)
Selling, general and administrative	(23)	(20)	(62)	(54)
Restructuring costs	0	0	0	(1)
Other operating income (expense), net	0	(2)	(3)	(2)
OPERATING INCOME (LOSS)	(37)	(36)	(105)	(95)
Other income (expense), net	8	10	42	47
Equity in earnings of affiliates	0	0	0	0
Interest income (expense), net	(29)	(47)	(88)	(105)
INCOME (LOSS) BEFORE INCOME TAXES	(58)	(73)	(151)	(153)
Provision for income taxes	(1)	(1)	(1)	(2)
Equity income (loss) from continuing operations of subsidiaries	101	89	255	241
INCOME (LOSS) FROM CONTINUING OPERATIONS	42	15	103	86
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(1)	(2)	(4)	(1)
Net income	41	13	99	85
Less: Net income attributable to noncontrolling interests	0	0	0	0
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	41	13	99	85
Parent | Elims
Sales
Sales	0	0	0	0
Guarantors
Sales
Sales	410	461	1,247	1,282
Guarantors | Reportable Legal Entities
Sales
Sales	440	495	1,332	1,377
Cost of sales	(361)	(416)	(1,107)	(1,167)
GROSS MARGIN	79	79	225	210
Selling, general and administrative	(20)	(29)	(62)	(83)
Restructuring costs	(3)	(2)	(4)	(5)
Other operating income (expense), net	0	0	0	0
OPERATING INCOME (LOSS)	56	48	159	122
Other income (expense), net	(48)	(6)	(57)	(15)
Equity in earnings of affiliates	8	9	24	24
Interest income (expense), net	8	7	23	20
INCOME (LOSS) BEFORE INCOME TAXES	24	58	149	151
Provision for income taxes	0	0	0	0
Equity income (loss) from continuing operations of subsidiaries	74	28	95	81
INCOME (LOSS) FROM CONTINUING OPERATIONS	98	86	244	232
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	0	(1)	(5)	1
Net income	98	85	239	233
Less: Net income attributable to noncontrolling interests	0	0	0	0
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	98	85	239	233
Guarantors | Elims
Sales
Sales	30	34	85	95
Non- Guarantors
Sales
Sales	431	448	1,224	1,370
Non- Guarantors | Reportable Legal Entities
Sales
Sales	445	467	1,270	1,422
Cost of sales	(383)	(408)	(1,103)	(1,240)
GROSS MARGIN	62	59	167	182
Selling, general and administrative	(16)	(16)	(51)	(50)
Restructuring costs	(3)	(7)	(5)	(9)
Other operating income (expense), net	0	3	0	4
OPERATING INCOME (LOSS)	43	39	111	127
Other income (expense), net	40	(5)	14	(29)
Equity in earnings of affiliates	1	1	2	4
Interest income (expense), net	1	2	2	7
INCOME (LOSS) BEFORE INCOME TAXES	85	37	129	109
Provision for income taxes	(7)	(5)	(21)	(17)
Equity income (loss) from continuing operations of subsidiaries	0	0	0	0
INCOME (LOSS) FROM CONTINUING OPERATIONS	78	32	108	92
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	0	(2)	(4)	(2)
Net income	78	30	104	90
Less: Net income attributable to noncontrolling interests	(1)	(1)	(2)	(2)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	77	29	102	88
Non- Guarantors | Elims
Sales
Sales	$ 14	$ 19	$ 46	$ 52

Supplemental Guarantor Conden94

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Statement of Income Captions [Line Items]
Net income	$ 42	$ 14	$ 101	$ 87
Other comprehensive income (loss)	0	23	24	(22)
Total comprehensive income	42	37	125	65
Less: Comprehensive income attributable to noncontrolling interests	(1)	(1)	(2)	(1)
Comprehensive income (loss) attributable to Meritor, Inc.	41	36	123	64
Elims
Condensed Statement of Income Captions [Line Items]
Net income	(175)	(114)	(341)	(321)
Other comprehensive income (loss)	6	(15)	(4)	58
Total comprehensive income	(169)	(129)	(345)	(263)
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to Meritor, Inc.	(169)	(129)	(345)	(263)
Parent | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income	41	13	99	85
Other comprehensive income (loss)	0	23	24	(21)
Total comprehensive income	41	36	123	64
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to Meritor, Inc.	41	36	123	64
Guarantors | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income	98	85	239	233
Other comprehensive income (loss)	44	30	56	(62)
Total comprehensive income	142	115	295	171
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to Meritor, Inc.	142	115	295	171
Non- Guarantors | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income	78	30	104	90
Other comprehensive income (loss)	(50)	(15)	(52)	3
Total comprehensive income	28	15	52	93
Less: Comprehensive income attributable to noncontrolling interests	(1)	(1)	(2)	(1)
Comprehensive income (loss) attributable to Meritor, Inc.	$ 27	$ 14	$ 50	$ 92

Supplemental Guarantor Conden95

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Unaudited) (Details) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 129	$ 193	$ 345	$ 247
Receivables trade and other, net	422	461
Inventories	335	338
Other current assets	53	50
TOTAL CURRENT ASSETS	939	1,042
NET PROPERTY	428	419
GOODWILL	392	402
OTHER ASSETS	325	332
INVESTMENTS IN SUBSIDIARIES	0	0
TOTAL ASSETS	2,084	2,195
CURRENT LIABILITIES:
Short-term debt	14	15
Accounts and notes payable	503	574
Other current liabilities	267	279
TOTAL CURRENT LIABILITIES	784	868
LONG-TERM DEBT	980	1,036
RETIREMENT BENEFITS	601	632
INTERCOMPANY PAYABLE (RECEIVABLE)	0	0
OTHER LIABILITIES	315	305
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.	(621)	(671)
NONCONTROLLING INTERESTS	25	25
TOTAL LIABILITIES AND DEFICIT	2,084	2,195
Elims
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	(3,218)	(2,667)
TOTAL ASSETS	(3,218)	(2,667)
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.	(3,218)	(2,667)
NONCONTROLLING INTERESTS	0	0
TOTAL LIABILITIES AND DEFICIT	(3,218)	(2,667)
Parent | Reportable Legal Entities
CURRENT ASSETS:
Cash and cash equivalents	35	73	238	71
Receivables trade and other, net	1	1
Inventories	0	0
Other current assets	4	4
TOTAL CURRENT ASSETS	40	78
NET PROPERTY	19	15
GOODWILL	0	0
OTHER ASSETS	56	61
INVESTMENTS IN SUBSIDIARIES	2,471	2,354
TOTAL ASSETS	2,586	2,508
CURRENT LIABILITIES:
Short-term debt	1	1
Accounts and notes payable	41	55
Other current liabilities	94	93
TOTAL CURRENT LIABILITIES	136	149
LONG-TERM DEBT	969	1,017
RETIREMENT BENEFITS	573	603
INTERCOMPANY PAYABLE (RECEIVABLE)	1,497	1,365
OTHER LIABILITIES	32	45
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.	(621)	(671)
NONCONTROLLING INTERESTS	0	0
TOTAL LIABILITIES AND DEFICIT	2,586	2,508
Guarantors | Reportable Legal Entities
CURRENT ASSETS:
Cash and cash equivalents	3	6	5	5
Receivables trade and other, net	22	40
Inventories	148	159
Other current assets	21	20
TOTAL CURRENT ASSETS	194	225
NET PROPERTY	189	183
GOODWILL	219	219
OTHER ASSETS	127	129
INVESTMENTS IN SUBSIDIARIES	747	313
TOTAL ASSETS	1,476	1,069
CURRENT LIABILITIES:
Short-term debt	3	4
Accounts and notes payable	172	213
Other current liabilities	62	83
TOTAL CURRENT LIABILITIES	237	300
LONG-TERM DEBT	4	6
RETIREMENT BENEFITS	0	0
INTERCOMPANY PAYABLE (RECEIVABLE)	(1,674)	(1,886)
OTHER LIABILITIES	238	217
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.	2,671	2,432
NONCONTROLLING INTERESTS	0	0
TOTAL LIABILITIES AND DEFICIT	1,476	1,069
Non- Guarantors | Reportable Legal Entities
CURRENT ASSETS:
Cash and cash equivalents	91	114	$ 102	$ 171
Receivables trade and other, net	399	420
Inventories	187	179
Other current assets	28	26
TOTAL CURRENT ASSETS	705	739
NET PROPERTY	220	221
GOODWILL	173	183
OTHER ASSETS	142	142
INVESTMENTS IN SUBSIDIARIES	0	0
TOTAL ASSETS	1,240	1,285
CURRENT LIABILITIES:
Short-term debt	10	10
Accounts and notes payable	290	306
Other current liabilities	111	103
TOTAL CURRENT LIABILITIES	411	419
LONG-TERM DEBT	7	13
RETIREMENT BENEFITS	28	29
INTERCOMPANY PAYABLE (RECEIVABLE)	177	521
OTHER LIABILITIES	45	43
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.	547	235
NONCONTROLLING INTERESTS	25	25
TOTAL LIABILITIES AND DEFICIT	$ 1,240	$ 1,285

Supplemental Guarantor Conden96

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	$ 144	$ 122
INVESTING ACTIVITIES
Capital expenditures	(66)	(45)
Proceeds from the sale of property		4
Other investing activities	3	4
Net investing cash flows provided by discontinued operations	4	4
CASH USED FOR INVESTING ACTIVITIES	(59)	(37)
FINANCING ACTIVITIES
Repayment of notes	(55)	(159)
Proceeds from debt issuance	0	225
Debt issuance costs	0	(4)
Repurchase of Common Stock	(81)	(30)
Intercompany advances	0	0
Other financing activities	(15)	(7)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(151)	25
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	2	(12)
CHANGE IN CASH AND CASH EQUIVALENTS	(64)	98
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	193	247
CASH AND CASH EQUIVALENTS AT END OF PERIOD	129	345
Elims
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	0	0
INVESTING ACTIVITIES
Capital expenditures	0	0
Proceeds from the sale of property		0
Other investing activities	0
Net investing cash flows provided by discontinued operations	0	0
CASH USED FOR INVESTING ACTIVITIES	0	0
FINANCING ACTIVITIES
Repayment of notes	0	0
Proceeds from debt issuance		0
Debt issuance costs		0
Repurchase of Common Stock	0
Intercompany advances	0	0
Other financing activities	0	0
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	0	0
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	0	0
CHANGE IN CASH AND CASH EQUIVALENTS	0	0
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	0	0
CASH AND CASH EQUIVALENTS AT END OF PERIOD	0	0
Parent | Reportable Legal Entities
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	124	76
INVESTING ACTIVITIES
Capital expenditures	(16)	(4)
Proceeds from the sale of property		0
Other investing activities	0
Net investing cash flows provided by discontinued operations	0	0
CASH USED FOR INVESTING ACTIVITIES	(16)	(4)
FINANCING ACTIVITIES
Repayment of notes	(55)	(159)
Proceeds from debt issuance		225
Debt issuance costs		(4)
Repurchase of Common Stock	(81)	(30)
Intercompany advances	(10)	63
Other financing activities	0	0
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(146)	95
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	0	0
CHANGE IN CASH AND CASH EQUIVALENTS	(38)	167
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	73	71
CASH AND CASH EQUIVALENTS AT END OF PERIOD	35	238
Guarantors | Reportable Legal Entities
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	25	19
INVESTING ACTIVITIES
Capital expenditures	(29)	(17)
Proceeds from the sale of property		0
Other investing activities	4
Net investing cash flows provided by discontinued operations	1	1
CASH USED FOR INVESTING ACTIVITIES	(24)	(16)
FINANCING ACTIVITIES
Repayment of notes	0	0
Proceeds from debt issuance		0
Debt issuance costs		0
Repurchase of Common Stock	0
Intercompany advances	0	0
Other financing activities	(4)	(3)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(4)	(3)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	0	0
CHANGE IN CASH AND CASH EQUIVALENTS	(3)	0
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	6	5
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3	5
Non- Guarantors | Reportable Legal Entities
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	(5)	27
INVESTING ACTIVITIES
Capital expenditures	(21)	(24)
Proceeds from the sale of property		4
Other investing activities	(1)
Net investing cash flows provided by discontinued operations	3	3
CASH USED FOR INVESTING ACTIVITIES	(19)	(17)
FINANCING ACTIVITIES
Repayment of notes	0	0
Proceeds from debt issuance		0
Debt issuance costs		0
Repurchase of Common Stock	0
Intercompany advances	10	(63)
Other financing activities	(11)	(4)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(1)	(67)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	2	(12)
CHANGE IN CASH AND CASH EQUIVALENTS	(23)	(69)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	114	171
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 91	$ 102

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event	Jul. 21, 2016USD ($)
Subsequent Event [Line Items]
Debt repurchase program, amount authorized	$ 150,000,000
Authorized repurchase of securities, with debt reduction target	$ 100,000,000