Meritor (MTOR) 10-Q 2 Feb 17 2017 Q1 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
	Dec. 31, 2016	Feb. 01, 2017
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		88,191,038
Document period end date	Dec. 31, 2016
Document fiscal year focus	2,017
Document type	10-Q
Document fiscal period focus	Q1
Amendment flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Sales	$ 699	$ 809
Cost of sales	(610)	(705)
GROSS MARGIN	89	104
Selling, general and administrative	(53)	(56)
Restructuring costs	0	(1)
Other operating expense, net	(3)	0
OPERATING INCOME	33	47
Other income, net	0	1
Equity in earnings of affiliates	10	10
Interest expense, net	(21)	(22)
INCOME BEFORE INCOME TAXES	22	36
Provision for income taxes	(6)	(7)
INCOME (LOSS) FROM CONTINUING OPERATIONS	16	29
LOSS FROM DISCONTINUED OPERATIONS, net of tax	0	(2)
NET INCOME	16	27
Less: Net income attributable to noncontrolling interests	(1)	(1)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	15	26
NET INCOME ATTRIBUTABLE TO MERITOR, INC.
Net income from continuing operations	15	28
Loss from discontinued operations	0	(2)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$ 15	$ 26
BASIC EARNINGS (LOSS) PER SHARE
Continuing operations (in dollars per share)	$ 0.17	$ 0.30
Discontinued operations (in dollars per share)	0	(0.02)
Basic earnings per share (in dollars per share)	0.17	0.28
DILUTED EARNINGS (LOSS) PER SHARE
Continuing operations (in dollars per share)	0.17	0.30
Discontinued operations (in dollars per share)	0	(0.02)
Diluted earnings per share (in dollars per share)	$ 0.17	$ 0.28
Basic average common shares outstanding (in shares)	87.1	92.5
Diluted average common shares outstanding (in shares)	88.5	94.3

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 16	$ 27
Foreign currency translation adjustments:
Attributable to Meritor, Inc.	(28)	(6)
Attributable to noncontrolling interest	(2)	0
Pension and other postretirement benefit related adjustments	11	9
Unrealized gain on investments and foreign exchange contracts	1	3
Other comprehensive income (loss), net of tax	(18)	6
Total comprehensive income (loss)	(2)	33
Less: Comprehensive income (loss) attributable to noncontrolling interest	1	(1)
Comprehensive income (loss) attributable to Meritor, Inc.	$ (1)	$ 32

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions		Dec. 31, 2016	Sep. 30, 2016
CURRENT ASSETS:
Cash and cash equivalents	[1]	$ 125	$ 160
Receivables trade and other, net	[1]	332	396
Inventories	[1]	334	316
Other current assets		40	33
TOTAL CURRENT ASSETS		831	905
NET PROPERTY	[1]	423	439
GOODWILL	[1]	383	390
OTHER ASSETS		757	760
TOTAL ASSETS		2,394	2,494
CURRENT LIABILITIES:
Short-term debt		11	14
Accounts and notes payable	[1]	430	475
Other current liabilities		236	268
TOTAL CURRENT LIABILITIES		677	757
LONG-TERM DEBT		983	982
RETIREMENT BENEFITS		691	703
OTHER LIABILITIES		228	238
TOTAL LIABILITIES		2,579	2,680
COMMITMENTS AND CONTINGENCIES (See Note 21)
EQUITY (DEFICIT):
Common stock (December 31, 2016 and September 30, 2016, 101.0 and 99.6 shares issued and 88.2 and 86.8 shares outstanding, respectively)		101	99
Additional paid-in capital		877	876
Accumulated deficit		(226)	(241)
Treasury stock, at cost (at both December 31, 2016 and September 30, 2016, 12.8 shares)		(136)	(136)
Accumulated other comprehensive loss		(825)	(809)
Total deficit attributable to Meritor, Inc.		(209)	(211)
Noncontrolling interests	[1]	24	25
TOTAL DEFICIT		(185)	(186)
TOTAL LIABILITIES AND DEFICIT		2,394	2,494
ASSETS, LIABILITIES, AND EQUITY HELD-FOR-SALE
Cash and cash equivalents		2	1
Receivables, trade and other, net		6	8
Inventories		1	1
Goodwill		1
Net property			3
Accounts and notes payable		5	5
Noncontrolling interests		$ 2	$ 3
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - shares shares in Millions	Dec. 31, 2016	Sep. 30, 2016
Statement of Financial Position [Abstract]
Common Shares Issued (in shares)	101	99.6
Common Shares Outstanding (in shares)	88.2	86.8
Treasury stock (in shares)	12.8	12.8

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016		Dec. 31, 2015
OPERATING ACTIVITIES
CASH USED FOR OPERATING ACTIVITIES (See Note 10)	$ (14)		$ (5)
INVESTING ACTIVITIES
Capital expenditures	(17)		(22)
Other investing activities	0		1
Net investing cash flows provided by discontinued operations	2		3
CASH USED FOR INVESTING ACTIVITIES	(15)		(18)
FINANCING ACTIVITIES
Repurchase of common stock	0		(43)
Other financing activities	(4)		1
CASH USED FOR FINANCING ACTIVITIES	(4)		(42)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(2)		0
CHANGE IN CASH AND CASH EQUIVALENTS	(35)		(65)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	160	[1]	193
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 125	[1]	$ 128
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) - USD ($)	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, 2015	$ (646,000,000)	$ 99,000,000	$ 865,000,000	$ (814,000,000)	$ (55,000,000)	$ (766,000,000)	$ (671,000,000)	$ 25,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	33,000,000			26,000,000		6,000,000	32,000,000	1,000,000
Equity based compensation expense	3,000,000		3,000,000				3,000,000
Repurchase of common stock	(43,000,000)				(43,000,000)		(43,000,000)
Ending Balance at Dec. 31, 2015	(653,000,000)	99,000,000	868,000,000	(788,000,000)	(98,000,000)	(760,000,000)	(679,000,000)	26,000,000
Beginning balance at Sep. 30, 2016	(186,000,000)	99,000,000	876,000,000	(241,000,000)	(136,000,000)	(809,000,000)	(211,000,000)	25,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	(2,000,000)			15,000,000		(16,000,000)	(1,000,000)	(1,000,000)
Equity based compensation expense	3,000,000		3,000,000				3,000,000
Vesting of equity based awards	0	2,000,000	(2,000,000)
Repurchase of common stock		0
Ending Balance at Dec. 31, 2016	$ (185,000,000)	$ 101,000,000	$ 877,000,000	$ (226,000,000)	$ (136,000,000)	$ (825,000,000)	$ (209,000,000)	$ 24,000,000

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 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 company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016 , as amended. The condensed consolidated balance sheet data as of September 30, 2016 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 months ended December 31, 2016 are not necessarily indicative of the results for the full year. The company’s fiscal year ends on the Sunday nearest September 30, and its fiscal quarters generally end on the Sundays nearest December 31, March 31, and June 30. The first quarter of fiscal years 2017 and 2016 ended on January 1, 2017 and January 3, 2016 , 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 December 31 are used consistently throughout this report to represent the fiscal year end and first fiscal quarter end, respectively.

Earnings per Share

Earnings per Share	3 Months Ended
	Dec. 31, 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 2016 2015 Basic average common shares outstanding 87.1 92.5 Impact of restricted shares, restricted share units and performance share units 1.4 1.8 Diluted average common shares outstanding 88.5 94.3 In November 2016, 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 $12.77 , which was the company’s share price on the grant date of December 1, 2016. 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 $12.77 , which was the company's share price on the grant date of December 1, 2016. The actual number of performance share units that will vest depends upon the company’s performance relative to the established M2019 goals for the three -year performance period of October 1, 2016 to September 30, 2019, measured at the end of the performance period. The number of performance share units will depend on meeting the established M2019 goals at the following weights: 50% associated with achieving an Adjusted diluted earnings per share from continuing operations target, 25% associated with achieving revenue growth above market, and 25% associated with achieving a Net Debt to Adjusted EBITDA 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 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 that vest 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 that vest 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 represented 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 vested on December 1, 2016 depended 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, which was measured after the end of the performance period. The number of performance share units that vested depended 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 company's performance resulted in the vesting of the performance share units at 112% of the grant date amounts. There were 0.9 million shares related to these performance share units included in the diluted earnings per share calculation for the three months ended December 31, 2016 and December 31, 2015 , as certain payout thresholds were achieved relative to the Adjusted EBITDA, net debt reduction and incremental booked revenue targets. For the three months ended December 31, 2016 , the dilutive impact of previously issued restricted shares, restricted share units, and performance share units was 1.4 million , compared to 1.8 million share units for the same period in the prior fiscal year. For the three months ended December 31, 2016 and December 31, 2015 , compensation cost related to restricted shares, restricted share units, performance share units and stock options was $3 million . For the three-month period ended December 31, 2015 , 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 months ended December 31, 2016 and December 31, 2015 , 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.

New Accounting Standards

New Accounting Standards	3 Months Ended
	Dec. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards Accounting standards to be implemented In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, the new guidance eliminates the need to determine the fair value of individual assets and liabilities of a reporting unit to measure a goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The revised guidance will be applied prospectively, and is effective for calendar year-end SEC filers in 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The new guidance is not expected to have a material impact on the company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU provides clarification on the definition of a business and adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. To be considered a business under the new guidance, it must include an input and a substantive process that together significantly contribute to the ability to create output. The amendment removes the evaluation of whether a market participant could replace missing elements. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and will be applied prospectively. The potential impact of this new guidance will be assessed for future acquisitions or dispositions, but it is not expected to have a material impact on the company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control, which alters how a decision maker needs to consider indirect interests in a variable interest entity (VIE) held through an entity under common control. Under the ASU, if a decision maker is required to evaluate whether it is the primary beneficiary of a VIE, it will need to consider only its proportionate indirect interest in the VIE held through a common control party. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements but does not expect a material impact upon adoption. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The ASU was issued to remove the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The amendments in this update are effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted; however, the guidance can only be adopted in the first interim period of a fiscal year. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU was issued to reduce differences in practice with respect to how specific transactions are classified in the statement of cash flows. The update provides guidance on the following eight types of transactions: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investments, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In June 2016, the FASB issued 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 in 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 on its accounting policies and 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 accounting policies and 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 years beginning after December 15, 2016, including interim periods within those fiscal years. 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 years beginning after December 15, 2016, including interim periods within those fiscal years. 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 years beginning after December 15, 2016, including interim periods within those fiscal years. 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 years beginning after December 15, 2016, including interim years 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 years beginning after December 15, 2018, including interim periods within those fiscal years. 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 on its accounting policies and 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 years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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 years beginning after December 15, 2016, including interim periods within those fiscal years. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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 annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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 on its accounting policies and its consolidated financial statements. Accounting standards implemented during fiscal year 2017 In January 2017, the FASB issued ASU 2017-03 which amended Accounting Changes and Error Corrections (Topic 250) to state that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance included in certain issued but not yet adopted ASUs was also updated to reflect this amendment. 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 adopted this standard prospectively in the first quarter of fiscal year 2017. This guidance did not have a material impact on its consolidated financial statements.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations Results of discontinued operations are summarized as follows (in millions): Three Months Ended 2016 2015 Sales $ — $ — Loss before income taxes $ — $ (3 ) Benefit from income taxes — 1 Loss from discontinued operations attributable to Meritor, Inc. $ — $ (2 ) Loss from discontinued operations attributable to the company for the three months ended December 31, 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 December 31, 2016 and September 30, 2016 were $1 million and total discontinued operations liabilities as of December 31, 2016 and September 30, 2016 were $6 million .

Assets and Liabilities Held for

Assets and Liabilities Held for Sale	3 Months Ended
	Dec. 31, 2016
Assets And Liabilities Held-For-Sale [Abstract]
Assets and Liabilities Held for Sale	Assets and Liabilities Held for Sale During the first quarter of 2017, management approved a plan to sell a business within the Commercial Truck & Industrial reporting segment. The company expects to sell the business within one year from management's approval of the plan. The business and its associated assets and liabilities met the criteria for presentation as held for sale as of December 31, 2016. Assets and liabilities held for sale are measured at the lower of the carrying value or fair value less costs to sell. Upon meeting the held for sale criteria, the company determined the carrying value of the business exceeded the fair value less costs to sell. As a result, an impairment charge of $3 million was recorded within other operating expense, net in the company’s condensed consolidated statement of operations during the first quarter of 2017.

Goodwill

Goodwill	3 Months Ended
	Dec. 31, 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 Goodwill $ 245 $ 160 $ 405 Accumulated impairment losses (15 ) — (15 ) Beginning balance at September 30, 2016 230 160 390 Foreign currency translation (4 ) (3 ) (7 ) Balance at December 31, 2016 $ 226 $ 157 $ 383

Restructuring Costs

Restructuring Costs	3 Months Ended
	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs Restructuring reserves, primarily related to unpaid employee termination benefits, were $ 13 million at December 31, 2016 and $16 million at September 30, 2016 . The changes in restructuring reserves for the three months ended December 31, 2016 and 2015 are as follows (in millions): Employee Termination Benefits Plant Shutdown & Other Total Beginning balance at September 30, 2016 $ 15 $ 1 $ 16 Activity during the period: Charges to continuing operations — — — Cash payments – continuing operations (3 ) — (3 ) Total restructuring reserves at December 31, 2016 12 1 13 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at December 31, 2016 $ 10 $ 1 $ 11 Balance at September 30, 2015 $ 10 $ — $ 10 Activity during the period: Charges to continuing operations 1 — 1 Cash payments – continuing operations (2 ) — (2 ) Total restructuring reserves at December 31, 2015 9 — 9 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at December 31, 2015 $ 7 $ — $ 7

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 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, Brazil, 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. During the fourth quarter of fiscal year 2016, as a result of sustained profitability in the U.S. evidenced by a strong earnings history, future forecasted earnings, and additional positive evidence, the company determined it was more likely than not that it would be able to realize deferred tax assets in the U.S. Accordingly, the company reversed a portion of the valuation allowance in the U.S. Also in the fourth quarter of fiscal year 2016, due to a three-year cumulative loss and future economic uncertainty, the company established a tax valuation allowance in Brazil because the company determined it was not more likely than not that it would realize its deferred tax assets in Brazil. The company continues to maintain valuation allowances in France, the United Kingdom, Brazil, and certain other 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. For the three months ended December 31, 2016, the company had approximately $1 million of net pre-tax loss compared to $11 million of net pre-tax income in the same period in fiscal year 2016 in tax jurisdictions in which tax expense (benefit) is not recorded.

Accounts Receivable Factoring a

Accounts Receivable Factoring and Securitization	3 Months Ended
	Dec. 31, 2016
Accounts Receivable Factoring and Securitization [Abstract]
Accounts Receivable Factoring and Securitization	Accounts Receivable Factoring and Securitization Off-balance sheet arrangements Swedish Factoring Facility: The company has an arrangement to sell trade receivables due from AB Volvo through one of its European subsidiaries. On January 17, 2017, Meritor extended this Swedish factoring facility with Nordea Bank until March 31, 2017. All other terms of the agreement remain unchanged. Under this arrangement, the company can sell up to, at any point in time, €155 million ( $163 million ) of eligible trade receivables. The company is working to extend this arrangement before its current maturity date. 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 €158 million ( $166 million ) and €121 million ( $135 million ) of this accounts receivable factoring facility as of December 31, 2016 and September 30, 2016 , respectively. The above facility is backed by a 364 -day liquidity commitment from Nordea Bank which extends through December 18, 2017. The commitment is subject to standard terms and conditions for this type of arrangement. U.S. Factoring Facility: The company has an arrangement to sell trade receivables due from AB Volvo and its U.S. subsidiaries through one of its U.S. subsidiaries. Under this arrangement with Nordea Bank, which expires in February 2019, the company can sell up to, at any point in time, €80 million ( $84 million ) of eligible trade receivables. 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 €33 million ( $34 million ) and €39 million ( $44 million ) of this accounts receivable factoring facility as of December 31, 2016 and September 30, 2016 , respectively. United Kingdom Factoring Facility: The company has an arrangement to sell trade receivables due 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 ( $26 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 €9 million ( $9 million ) and €6 million ( $6 million ) of this accounts receivable factoring facility as of December 31, 2016 and September 30, 2016 , 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 due 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 ( $31 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 €25 million ( $26 million ) and €22 million ( $24 million ) of this accounts receivable factoring facility as of December 31, 2016 and September 30, 2016 , 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 $13 million and $10 million at December 31, 2016 and September 30, 2016 , respectively. Total costs associated with all of the off-balance sheet arrangements described above were $1 million and $2 million in the three months ended December 31, 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 5, 2016, the company entered into an amendment which extends the facility expiration date to December 5, 2019. 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 December 31, 2016 and September 30, 2016 , 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	3 Months Ended
	Dec. 31, 2016
Operating Cash Flow Disclosure [Abstract]
Operating Cash Flow	Operating Cash Flow The reconciliation of net income to cash flows used for operating activities is as follows (in millions): Three Months Ended December 31, 2016 2015 OPERATING ACTIVITIES Net income $ 16 $ 27 Less: Loss from discontinued operations, net of tax — (2 ) Income from continuing operations 16 29 Adjustments to income from continuing operations to arrive at cash used for operating activities: Depreciation and amortization 17 15 Restructuring costs — 1 Asset impairment charges 3 — Equity in earnings of affiliates (10 ) (10 ) Pension and retiree medical expense 4 5 Other adjustments to income from continuing operations 8 — Dividends received from equity method investments 5 8 Pension and retiree medical contributions (10 ) (13 ) Restructuring payments (3 ) (2 ) Changes in off-balance sheet accounts receivable factoring 39 48 Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations (84 ) (88 ) Operating cash flows used for continuing operations (15 ) (7 ) Operating cash flows provided by discontinued operations 1 2 CASH USED FOR OPERATING ACTIVITIES $ (14 ) $ (5 )

Inventories

Inventories	3 Months Ended
	Dec. 31, 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): December 31, September 30, Finished goods $ 138 $ 125 Work in process 26 26 Raw materials, parts and supplies 170 165 Total $ 334 $ 316

Other Current Assets

Other Current Assets	3 Months Ended
	Dec. 31, 2016
Other Current Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets are summarized as follows (in millions): December 31, September 30, Asbestos-related recoveries (see Note 21) $ 10 $ 10 Prepaid and other 30 23 Other current assets $ 40 $ 33

Net Property

Net Property	3 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Net Property	Net Property Net property is summarized as follows (in millions): December 31, September 30, Property at cost: Land and land improvements $ 29 $ 30 Buildings 228 231 Machinery and equipment 830 839 Company-owned tooling 116 113 Construction in progress 43 56 Total 1,246 1,269 Less: accumulated depreciation (823 ) (830 ) Net property $ 423 $ 439

Other Assets

Other Assets	3 Months Ended
	Dec. 31, 2016
Other Assets, Noncurrent [Abstract]
Other Assets	Other Assets Other assets are summarized as follows (in millions): December 31, September 30, Investments in non-consolidated joint ventures $ 104 $ 100 Asbestos-related recoveries (see Note 21) 47 49 Unamortized revolver debt issuance costs 6 7 Capitalized software costs, net 27 29 Non-current deferred income tax assets, net 409 413 Assets for uncertain tax positions 33 35 Prepaid pension costs 123 123 Other 8 4 Other assets $ 757 $ 760 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 December 31, 2016 and September 30, 2016 , the company’s investment in the joint venture was $47 million and $45 million , respectively.

Unconsolidated Significant Subs

Unconsolidated Significant Subsidiary	3 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Unconsolidated Significant Subsidiary	Unconsolidated Significant Subsidiary Rule 10-01(b)(1) of Regulation S-X requires separate interim period summarized income statement information for each 50-percent-or-less-owned subsidiary not consolidated that would have been a significant subsidiary for annual periods in accordance with Rule 3-09 of Regulation S-X. In accordance with this requirement, the company’s non-consolidated joint venture Meritor WABCO Vehicle Control Systems’ summarized income statement information is as follows (in millions): Three Months Ended December 31, 2016 2015 Sales $ 72 $ 85 Gross Margin $ 20 $ 22 Income from continuing operations $ 12 $ 15 Net income $ 12 $ 15

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Dec. 31, 2016
Other Current Liabilities Disclosure [Abstract]
Other current liabilities	Other Current Liabilities Other current liabilities are summarized as follows (in millions): December 31, September 30, Compensation and benefits $ 86 $ 115 Income taxes 7 8 Taxes other than income taxes 21 21 Accrued interest 15 14 Product warranties 16 18 Environmental reserves (see Note 21) 6 7 Restructuring (see Note 7) 11 14 Asbestos-related liabilities (see Note 21) 18 18 Indemnity obligations (see Note 21) 2 2 Other 54 51 Other current liabilities $ 236 $ 268 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): Three Months Ended December 31, 2016 2015 Total product warranties – beginning of period $ 44 $ 48 Accruals for product warranties 3 3 Payments (3 ) (4 ) Change in estimates and other (4 ) — Total product warranties – end of period 40 47 Less: Non-current product warranties (24 ) (25 ) Product warranties – current $ 16 $ 22

Other Liabilities

Other Liabilities	3 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Other liabilities	Other Liabilities Other liabilities are summarized as follows (in millions): December 31, September 30, Asbestos-related liabilities (see Note 21) $ 130 $ 136 Restructuring (see Note 7) 2 2 Non-current deferred income tax liabilities 12 12 Liabilities for uncertain tax positions 14 16 Product warranties (see Note 16) 24 26 Environmental (see Note 21) 6 6 Indemnity obligations (see Note 21) 11 11 Other 29 29 Other liabilities $ 228 $ 238

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-Term Debt, net of discounts where applicable, is summarized as follows (in millions): December 31, September 30, 4.0 percent convertible notes due 2027 (1)(3) $ 142 $ 142 7.875 percent convertible notes due 2026 (1)(4) 130 129 6.75 percent notes due 2021 (2)(5) 271 271 6.25 percent notes due 2024 (2)(6) 443 442 Capital lease obligation 15 16 Export financing arrangements and other 6 10 Unamortized discount on convertible notes (7) (13 ) (14 ) Subtotal 994 996 Less: current maturities (11 ) (14 ) Long-term debt $ 983 $ 982 (1) 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. (2) The 6.75 percent and 6.25 percent notes contain a call option, which allows for early redemption. (3) The 4.0 percent convertible notes due 2027 are presented net of $1 million unamortized issuance costs as of December 31, 2016 and September 30, 2016. (4) The 7.875 percent convertible notes due 2026 are presented net of $2 million unamortized issuance costs as of December 31, 2016 and September 30, 2016 , and $8 million and $9 million original issuance discount as of December 31, 2016 and September 30, 2016 , respectively. (5) The 6.75 percent notes due 2021 are presented net of $4 million unamortized issuance costs as of December 31, 2016 and September 30, 2016 . (6) The 6.25 percent notes due 2024 are presented net of $7 million unamortized issuance costs as of December 31, 2016 and September 30, 2016 . (7) The carrying amount of the equity component related to convertible debt. 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 , permitted 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, certain lenders converted their $32 million of 2017 revolving loan commitments to 2019 revolving loan commitments and are now subject to the terms of 2019 lenders. Pursuant to the revolving credit agreement, the company now has a $506 million revolving credit facility, $8 million of which matures in April 2017 for banks not electing to extend their commitments under the revolving credit facility, and $498 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 December 31, 2016 , the revolving credit facility was collateralized by approximately $677 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 December 31, 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 24). No borrowings were outstanding under the revolving credit facility at December 31, 2016 and September 30, 2016. The amended and extended revolving credit facility includes $100 million of availability for the issuance of letters of credit. At December 31, 2016 and September 30, 2016, 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 to purchase an annuity to satisfy its obligations under the company's Canadian and German pension plans for its employees and for general corporate purposes. 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 make-whole 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 due 2026, 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. In fiscal year 2015, the company repurchased $19 million principal amount of the company's 4.0 percent convertible notes due 2027. 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. 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. 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 an insignificant net loss on debt extinguishment, the majority of which was premium. The net loss on debt extinguishment is included in interest expense, net in the consolidated statement of operations. On March 1, 2016 , substantially all of the $55 million principal amount of 4.625 percent convertible notes were repurchased at 100 percent of their face value. On April 15, 2016, the remaining 4.625 percent convertible notes were redeemed at 100 percent of their face value. As of September 30, 2016, none of the 4.625 percent convertible notes were outstanding. The repurchases were made under the company's equity and equity linked repurchase authorizations (see Note 22). The repurchase program under these authorizations was complete as of September 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 Wells Fargo Equipment Finance (“Wells Fargo”) 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 Wells Fargo 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 $5 million and $7 million outstanding under this capital lease arrangement as of December 31, 2016 and September 30, 2016, respectively. In addition, the company had another $10 million and $9 million outstanding through other capital lease arrangements at December 31, 2016 and September 30, 2016, 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 has the right to obtain the issuance, renewal, extension and increase of letters of credit up to an aggregate availability of $30 million through December 19, 2015. From December 20, 2015 through March 19, 2019, the aggregate availability is $25 million . This facility contains covenants and events of default generally similar to those existing in the company’s public debt indentures. There were $23 million of letters of credit outstanding under this facility at December 31, 2016 and September 30, 2016. The company had another $5 million of letters of credit outstanding through other letter of credit facilities at December 31, 2016 and September 30, 2016 . 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 2017. There was $6 million and $9 million outstanding under these arrangements at December 31, 2016 and September 30, 2016, 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 December 31, 2016 and September 30, 2016, the company had $ 8 million and $10 million , respectively, outstanding under this program at more than one bank.

Financial Instruments

Financial Instruments	3 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Financial Instruments Fair values of financial instruments are summarized as follows (in millions): December 31, 2016 September 30, 2016 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 125 $ 125 $ 160 $ 160 Short-term debt 11 11 14 14 Long-term debt 983 1,071 982 1,051 Foreign exchange forward contracts (other assets) 2 2 1 1 Foreign exchange forward contracts (other liabilities) 2 2 2 2 Short-term foreign currency option contracts (other assets) 1 1 — — Long-term foreign currency option contracts (other asset) 2 2 2 2 The following table reflects the offsetting of derivative assets and liabilities (in millions): December 31, 2016 September 30, 2016 Gross Gross Amounts Net Amounts Gross Gross Amounts Net Amounts Derivative Asset Foreign exchange forward contract 3 (1 ) 2 1 — 1 Derivative Liabilities Foreign exchange forward contract 3 (1 ) 2 2 — 2 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 December 31, 2016 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 125 $ — $ — Short-term debt — — 11 Long-term debt — 1,060 11 Foreign exchange forward contracts (asset) — 2 — Foreign exchange forward contracts (liability) — 2 — Short-term foreign currency option contracts (asset) — — 1 Long-term foreign currency option contracts (asset) — — 2 Fair value of financial instruments by the valuation hierarchy at September 30, 2016 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 160 $ — $ — Short-term debt — — 14 Long-term debt — 1,040 11 Foreign exchange forward contracts (asset) — 1 — Foreign exchange forward contracts (liability) — 2 — Short-term foreign currency option contracts (asset) — — — Long-term foreign currency option contracts (asset) — — 2 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 months ended December 31, 2016 and 2015 , respectively. No transfers of assets between any of the Levels occurred during these periods. Three months ended December 31, 2016 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of September 30, 2016 $ — $ 2 $ 2 Total unrealized gains (losses): Included in other income — — — Included in cost of sales — 1 1 Total realized gains (losses): Included in other income — — — Included in cost of sales — — — Purchases, issuances, sales and settlements: Purchases — — — Settlements — — — Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term 1 (1 ) — Fair Value as of December 31, 2016 $ 1 $ 2 $ 3 Three months ended December 31, 2015 (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 — — — Included in cost of sales — (1 ) (1 ) Total realized gains (losses): Included in other income — — — Included in cost of sales — — — Purchases, issuances, sales and settlements: Purchases 1 — 1 Settlements — — — Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term — — — Fair Value as of December 31, 2015 $ 2 $ — $ 2 (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 December 31, 2016 or September 30, 2016 . 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 shareholders’ 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. In the second quarter of fiscal year 2015, the company 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. In the fourth quarter of fiscal year 2016, the company entered into a new series of foreign currency option contracts with effective dates from the start of the first quarter of fiscal year 2017 through the end of fiscal year 2018. At December 31, 2016, the notional amount of the company's Indian rupee foreign exchange contracts outstanding was $147 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. 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. 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 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. As of December 31, 2016 and September 30, 2016 , there were no Brazilian real foreign currency option contracts outstanding. Changes in fair value associated with these contracts were recorded in other income, net, in the consolidated statement of operations. Also, in 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 Swedish krona and euro earnings to U.S. dollars, respectively. These foreign currency option contracts did not qualify for a hedge accounting election. As of December 31, 2016 and September 30, 2016 , there were no Swedish krona and euro foreign currency option contracts outstanding. Changes in fair value associated with these contracts were recorded in other income, net, in the consolidated statement of operations.

Retirement Benefit Liabilities

Retirement Benefit Liabilities	3 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Retirement Benefit Liabilities	Retirement Benefit Liabilities Retirement benefit liabilities consisted of the following (in millions): December 31, September 30, Retiree medical liability $ 442 $ 447 Pension liability 274 283 Other 14 13 Subtotal 730 743 Less: current portion (included in compensation and benefits, Note 16) (39 ) (40 ) Retirement benefits $ 691 $ 703 The components of net periodic pension and retiree medical expense included in continuing operations for the three months ended December 31 are as follows (in millions): 2016 2015 Pension Retiree Medical Pension Retiree Medical Interest cost $ 13 $ 4 $ 6 $ 4 Assumed return on plan assets (23 ) — (25 ) — Amortization of prior service costs — (1 ) — — Recognized actuarial loss 7 4 6 3 Total expense (income) $ (3 ) $ 7 $ (13 ) $ 7

Contingencies

Contingencies	3 Months Ended
	Dec. 31, 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 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 December 31, 2016 to be approximately $9 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 December 31, 2016 to be approximately $30 million , of which $10 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 1.0 to 2.75 percent and is approximately $7 million at December 31, 2016 . The undiscounted estimate of these costs is approximately $7 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, 2016 $ 2 $ 11 $ 13 Payments and other — (2 ) (2 ) Accruals — 1 1 Balance at December 31, 2016 $ 2 $ 10 $ 12 Environmental reserves are included in Other Current Liabilities (see Note 16) and Other Liabilities (see Note 17) 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 pending asbestos-related claims at December 31, 2016 and September 30, 2016 . 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): December 31, September 30, Pending and future claims $ 70 $ 70 Billed but unpaid claims 3 2 Asbestos-related liabilities $ 73 $ 72 Asbestos-related insurance recoveries $ 31 $ 32 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 12, 14, 16 and 17). Pending and Future Claims: Maremont engaged Bates White LLC (“Bates White”), a consulting firm with extensive experience estimating costs associated with asbestos litigation, to assist with determining the estimated cost of resolving pending and future asbestos-related claims that have been, and could reasonably be expected to be, filed against Maremont. Although it is not possible to estimate the full range of costs because of various uncertainties, Bates White advised Maremont that it would be possible to determine an estimate of a reasonable forecast of the cost of the probable settlement and defense costs of resolving pending and future asbestos-related claims, based on historical data and certain assumptions with respect to events that may occur in the future. As of September 30, 2016 , 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 $70 million to $83 million . After consultation with Bates White, management recognized a liability of $70 million as of each of December 31, 2016 and September 30, 2016 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. 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. 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 2026; • 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 historically had insurance that reimburses a substantial portion of the costs incurred defending against asbestos-related claims. The insurance receivable related to asbestos-related liabilities was $31 million and $32 million as of December 31, 2016 and September 30, 2016 , 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. 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. During the first quarter of fiscal year 2016, the dispute related to these insurance policies was settled. As a part of this settlement, on December 12, 2015, Maremont received $17 million in cash, of which $5 million was recognized as a 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. During the fourth quarter of fiscal year 2016, Maremont recognized an additional $9 million of the cash settlement proceeds as a reduction in asbestos expense. During the first quarter of fiscal year 2017, the company recognized the remaining $3 million of the cash settlement proceeds as a reduction in asbestos expense. The settlement also provides additional recovery for Maremont if certain future defense and indemnity 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 pending active asbestos claims in lawsuits that name AM, together with many other companies, as defendants at December 31, 2016 and September 30, 2016 . 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): December 31, September 30, Pending and future claims $ 60 $ 60 Billed but unpaid claims 2 1 Asbestos-related liabilities $ 62 $ 61 Asbestos-related insurance recoveries $ 27 $ 27 Pending and Future Claims: The company engaged Bates White to assist with determining whether it would be possible to estimate the cost of resolving pending and future Rockwell legacy asbestos-related claims that have been, and could reasonably be expected to be, filed against the company. As of September 30, 2016 , 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 $60 million to $75 million . After consultation with Bates White, management recognized a liability for the pending and future claims over the next ten years of $60 million as of each of December 31, 2016 and September 30, 2016 . 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 2026; • 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 : Rockwell has insurance coverage that management believes covers indemnity and defense costs, over and above self-insurance retentions, for a significant portion of these claims. In 2004, the company initiated litigation against certain of these carriers to enforce the insurance policies. During the fourth quarter of fiscal year 2016, the company executed settlement agreements with two of these carriers, thereby resolving the litigation against those particular carriers. Pursuant to the terms of one of those settlement agreements, in the fourth quarter of fiscal year 2016 the company received $32 million in cash from an insurer, of which $10 million was recognized as a reduction in asbestos expense, and $22 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 ultimately incurred. During the first quarter of fiscal year 2017, Rockwell recognized an additional $3 million of the cash settlement proceeds as a reduction in asbestos expense. Pursuant to the terms of a second settlement agreement, in the fourth quarter of fiscal year 2016 the company recorded a $12 million receivable to reflect expected reimbursement of future defense and indemnity payments under a coverage-in-place arrangement with that insurer. In addition to the coverage provided from the settlement agreements executed during the fourth quarter of fiscal year 2016, the company continues to maintain a receivable of $6 million related to a previously executed coverage-in-place arrangement with other insurers.The insurance receivable for Rockwell's asbestos-related liabilities totaled $27 million as of each of December 31, 2016 and September 30, 2016 . Included in these amounts are insurance receivables of $9 million as of each of December 31, 2016 and September 30, 2016 , which are associated with policies in dispute and have been fully reserved. 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 Rockwell could change significantly from its past experience, due, for example, to changes in the mix of claims filed against Rockwell in terms of plaintiffs’ law firms, jurisdictions and diseases; legislative or regulatory developments; Rockwell’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 claims, the cost to resolve claims and the amount of available insurance prove to be incorrect, the actual amount of liability for Rockwell asbestos-related claims, and the effect on the company, could differ materially from current estimates and, therefore, could have a material impact on the company’s financial condition and results of operations. Indemnifications 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 each of December 31, 2016 and September 30, 2016 , the remaining estimated liability for this matter was approximately $11 million . 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 December 31, 2016 and September 30, 2016 , the company's remaining exposure was approximately $1 million , 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 2016. At December 31, 2016 and September 30, 2016 , the company’s estimate of the probable liability was $10 million . 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 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 2016, 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. In September 2016, the company filed a motion to dismiss. The company intends to defend itself vigorously against these claims. The company believes at this time that liabilities associated with this case, while possible, are not probable and estimable, and therefore has not recorded any accrual for them as of December 31, 2016 . Further, a reasonably possible range of loss cannot be estimated at this time. 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 and intends to defend itself vigorously against these claims. The company believes at this time that liabilities associated with this case, while possible, are not probable and estimable, and therefore has not recorded any accrual for them as of December 31, 2016 . Further, a reasonably possible range of loss cannot be estimated at this time. 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.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Shareholders' Equity	Shareholders' Equity Common Stock and Debt Repurchase Authorizations On July 21, 2016, the Board of Directors authorized the repurchase of up to $100 million of the company’s common stock and up to $150 million aggregate principal amount of any of the company’s debt securities (including convertible debt securities), 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. No repurchases had been made under these authorizations as of December 31, 2016. Accumulated Other Comprehensive Loss ( “ AOCL ” ) The components of AOCL and the changes in AOCL by components, net of tax, for three months ended December 31, 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, 2016 $ (66 ) $ (740 ) $ (3 ) $ (809 ) Other comprehensive income (loss) before reclassification (28 ) 1 1 (26 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 10 — 10 Net current-period other comprehensive income (loss) $ (28 ) $ 11 $ 1 $ (16 ) Balance at December 31, 2016 $ (94 ) $ (729 ) $ (2 ) $ (825 ) 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 ) (a) Actuarial losses 11 (a) 10 Total before tax — Tax (benefit) expense Total reclassifications for the period $ 10 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 20 for additional details), which is recorded in cost of sales and selling, general and administrative expenses. 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 ) — 3 (3 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 9 — 9 Net current-period other comprehensive income (loss) $ (6 ) $ 9 $ 3 $ 6 Balance at December 31, 2015 $ (60 ) $ (696 ) $ (4 ) $ (760 ) 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 (b) 9 Total before tax — Tax expense Total reclassifications for the period 9 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 20 for additional details).

Business Segment Information

Business Segment Information	3 Months Ended
	Dec. 31, 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 December 31, 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 December 31, 2016 External Sales $ 521 $ 178 $ — $ 699 Intersegment Sales 18 6 (24 ) — Total Sales $ 539 $ 184 $ (24 ) $ 699 Three Months Ended December 31, 2015 External Sales $ 613 $ 196 $ — $ 809 Intersegment Sales 20 7 (27 ) — Total Sales $ 633 $ 203 $ (27 ) $ 809 Three Months Ended 2016 2015 Segment EBITDA: Commercial Truck & Industrial $ 42 $ 52 Aftermarket & Trailer 22 20 Segment EBITDA 64 72 Unallocated legacy and corporate income, net (1) — 4 Interest expense, net (21 ) (22 ) Provision for income taxes (6 ) (7 ) Depreciation and amortization (17 ) (15 ) Noncontrolling interests (1 ) (1 ) Loss on sale of receivables (1 ) (2 ) Asset impairment charges (3 ) — Restructuring costs — (1 ) Income from continuing operations attributable to Meritor, Inc. $ 15 $ 28 (1) Unallocated legacy and corporate income, net represents items that are not directly related to the company's business segments. These items 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: December 31, September 30, Commercial Truck & Industrial $ 1,414 $ 1,433 Aftermarket & Trailer 424 436 Total segment assets 1,838 1,869 Corporate (1) 805 845 Less: Accounts receivable sold under off-balance sheet factoring programs (2) (249 ) (220 ) Total assets $ 2,394 $ 2,494 (1) Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. (2) At December 31, 2016 and September 30, 2016 , segment assets include $249 million and $220 million , respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (see Note 9). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.

Supplemental Guarantor Condense

Supplemental Guarantor Condensed Consolidating Financial Statements	3 Months Ended
	Dec. 31, 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 18). 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. 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 December 31, 2016 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 325 $ 374 $ — $ 699 Subsidiaries — 26 12 (38 ) — Total sales — 351 386 (38 ) 699 Cost of sales (14 ) (297 ) (337 ) 38 (610 ) GROSS MARGIN (14 ) 54 49 — 89 Selling, general and administrative (23 ) (18 ) (12 ) — (53 ) Restructuring costs 2 — (2 ) — — Other operating income (expense), net — — (3 ) — (3 ) OPERATING INCOME (LOSS) (35 ) 36 32 — 33 Other income (expense), net (1 ) — 1 — — Equity in earnings of affiliates — 9 1 — 10 Interest income (expense), net (33 ) 10 2 — (21 ) INCOME (LOSS) BEFORE INCOME TAXES (69 ) 55 36 — 22 Provision for income taxes 20 (20 ) (6 ) — (6 ) Equity income (loss) from continuing operations of subsidiaries 64 28 — (92 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS 15 63 30 (92 ) 16 LOSS FROM DISCONTINUED OPERATIONS, net of tax — — — — — NET INCOME (LOSS) 15 63 30 (92 ) 16 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. $ 15 $ 63 $ 29 $ (92 ) $ 15 Three Months Ended December 31, 2016 Parent Guarantors Non- Elims Consolidated Net income (loss) $ 15 $ 63 $ 30 $ (92 ) $ 16 Other comprehensive income (loss) (16 ) 2 (27 ) 23 (18 ) Total comprehensive income (loss) (1 ) 65 3 (69 ) (2 ) Less: Comprehensive income attributable to — — 1 — 1 Comprehensive income (loss) attributable to Meritor, Inc. $ (1 ) $ 65 $ 4 $ (69 ) $ (1 ) Three Months Ended December 31, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 417 $ 392 $ — $ 809 Subsidiaries — 27 16 (43 ) — Total sales — 444 408 (43 ) 809 Cost of sales (14 ) (377 ) (357 ) 43 (705 ) GROSS MARGIN (14 ) 67 51 — 104 Selling, general and administrative (20 ) (21 ) (15 ) — (56 ) Restructuring costs — — (1 ) — (1 ) OPERATING INCOME (LOSS) (34 ) 46 35 — 47 Other income (expense), net (1 ) — 2 — 1 Equity in earnings of affiliates — 9 1 — 10 Interest income (expense), net (31 ) 8 1 — (22 ) INCOME (LOSS) BEFORE INCOME TAXES (66 ) 63 39 — 36 Provision for income taxes — — (7 ) — (7 ) Equity income from continuing operations of subsidiaries 94 27 — (121 ) — INCOME FROM CONTINUING OPERATIONS 28 90 32 (121 ) 29 LOSS FROM DISCONTINUED OPERATIONS, net of tax (2 ) (3 ) (3 ) 6 (2 ) NET INCOME 26 87 29 (115 ) 27 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 26 $ 87 $ 28 $ (115 ) $ 26 Three Months Ended December 31, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 26 $ 87 $ 29 $ (115 ) $ 27 Other comprehensive income (loss) 6 (11 ) 8 3 6 Total comprehensive income 32 76 37 (112 ) 33 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Meritor, Inc. $ 32 $ 76 $ 36 $ (112 ) $ 32 December 31, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents (1) $ 65 $ 4 $ 56 $ — $ 125 Receivables trade and other, net (1) 1 32 299 — 332 Inventories (1) — 155 179 — 334 Other current assets 7 13 20 — 40 TOTAL CURRENT ASSETS 73 204 554 — 831 NET PROPERTY 22 197 204 — 423 GOODWILL (1) — 219 164 — 383 OTHER ASSETS 448 133 176 — 757 INVESTMENTS IN SUBSIDIARIES 2,633 675 — (3,308 ) — TOTAL ASSETS $ 3,176 $ 1,428 $ 1,098 $ (3,308 ) $ 2,394 CURRENT LIABILITIES: Short-term debt $ 1 $ 3 $ 7 $ — $ 11 Accounts and notes payable (1) 16 171 243 — 430 Other current liabilities 81 65 90 — 236 TOTAL CURRENT LIABILITIES 98 239 340 — 677 LONG-TERM DEBT 973 2 8 — 983 RETIREMENT BENEFITS 670 — 21 — 691 INTERCOMPANY PAYABLE (RECEIVABLE) 1,613 (1,803 ) 190 — — OTHER LIABILITIES 31 155 42 — 228 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (209 ) 2,835 473 (3,308 ) (209 ) NONCONTROLLING INTERESTS (1) — — 24 — 24 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 3,176 $ 1,428 $ 1,098 $ (3,308 ) $ 2,394 (1) As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. These assets and liabilities held for sale are included in the Non-Guarantors column. September 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents (1) $ 90 $ 4 $ 66 $ — $ 160 Receivables trade and other, net (1) 1 39 356 — 396 Inventories (1) — 143 173 — 316 Other current assets 5 12 16 — 33 TOTAL CURRENT ASSETS 96 198 611 — 905 NET PROPERTY (1) 22 198 219 — 439 GOODWILL — 219 171 — 390 OTHER ASSETS 447 132 181 — 760 INVESTMENTS IN SUBSIDIARIES 2,575 679 — (3,254 ) — TOTAL ASSETS $ 3,140 $ 1,426 $ 1,182 $ (3,254 ) $ 2,494 CURRENT LIABILITIES: Short-term debt $ 1 $ 4 $ 9 $ — $ 14 Accounts and notes payable (1) 42 172 261 — 475 Other current liabilities 90 74 104 — 268 TOTAL CURRENT LIABILITIES 133 250 374 — 757 LONG-TERM DEBT 971 3 8 — 982 RETIREMENT BENEFITS 680 — 23 — 703 INTERCOMPANY PAYABLE (RECEIVABLE) 1,534 (1,768 ) 234 — — OTHER LIABILITIES 34 162 42 — 238 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (212 ) 2,779 476 (3,254 ) (211 ) NONCONTROLLING INTERESTS (1) — — 25 — 25 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 3,140 $ 1,426 $ 1,182 $ (3,254 ) $ 2,494 (1) As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.These assets and liabilities held for sale are included in the Non-Guarantors column. Three Months Ended December 31, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ (44 ) $ 6 $ 24 $ — $ (14 ) INVESTING ACTIVITIES Capital expenditures (5 ) (7 ) (5 ) — (17 ) Net investing cash flows provided by discontinued operations — 2 — — 2 CASH USED FOR INVESTING ACTIVITIES (5 ) (5 ) (5 ) — (15 ) FINANCING ACTIVITIES Intercompany advances 24 — (24 ) — — Other financing activities — (1 ) (3 ) — (4 ) CASH USED FOR FINANCING ACTIVITIES 24 (1 ) (27 ) — (4 ) EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — (2 ) — (2 ) CHANGE IN CASH AND CASH EQUIVALENTS (25 ) — (10 ) — (35 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 90 4 66 — 160 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 65 $ 4 $ 56 $ — $ 125 Three Months Ended December 31, 2015 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ (53 ) $ 21 $ 27 $ — $ (5 ) INVESTING ACTIVITIES Capital expenditures (7 ) (8 ) (7 ) — (22 ) Other investing activities — 2 (1 ) — 1 Net investing cash flows provided by discontinued operations — — 3 — 3 CASH USED FOR INVESTING ACTIVITIES (7 ) (6 ) (5 ) — (18 ) FINANCING ACTIVITIES Repurchase of common stock (43 ) — — — (43 ) Intercompany advances 40 — (40 ) — — Other financing activities — (1 ) 2 — 1 CASH USED FOR FINANCING ACTIVITIES (3 ) (1 ) (38 ) — (42 ) EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — — — — CHANGE IN CASH AND CASH EQUIVALENTS (63 ) 14 (16 ) — (65 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 73 6 114 — 193 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 10 $ 20 $ 98 $ — $ 128 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 December 31, 2016 and September 30, 2016 , Parent-only obligations included $ 697 million and $708 million of pension and retiree medical benefits, respectively (see Note 20). All debt is debt of the Parent other than $ 20 million and $24 million at December 31, 2016 and September 30, 2016 , respectively (see Note 18), and is primarily related to capital lease obligations and lines of credit. There were no cash dividends paid to the Parent by subsidiaries and investments accounted for by the equity method for the three months ended December 31, 2016 and December 31, 2015 .

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Standards	Accounting standards to be implemented In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, the new guidance eliminates the need to determine the fair value of individual assets and liabilities of a reporting unit to measure a goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The revised guidance will be applied prospectively, and is effective for calendar year-end SEC filers in 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The new guidance is not expected to have a material impact on the company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU provides clarification on the definition of a business and adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. To be considered a business under the new guidance, it must include an input and a substantive process that together significantly contribute to the ability to create output. The amendment removes the evaluation of whether a market participant could replace missing elements. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and will be applied prospectively. The potential impact of this new guidance will be assessed for future acquisitions or dispositions, but it is not expected to have a material impact on the company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control, which alters how a decision maker needs to consider indirect interests in a variable interest entity (VIE) held through an entity under common control. Under the ASU, if a decision maker is required to evaluate whether it is the primary beneficiary of a VIE, it will need to consider only its proportionate indirect interest in the VIE held through a common control party. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements but does not expect a material impact upon adoption. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The ASU was issued to remove the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The amendments in this update are effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted; however, the guidance can only be adopted in the first interim period of a fiscal year. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU was issued to reduce differences in practice with respect to how specific transactions are classified in the statement of cash flows. The update provides guidance on the following eight types of transactions: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investments, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The company is currently evaluating the potential impact of this new guidance on its consolidated financial statements. In June 2016, the FASB issued 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 in 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 on its accounting policies and 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 accounting policies and 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 years beginning after December 15, 2016, including interim periods within those fiscal years. 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 years beginning after December 15, 2016, including interim periods within those fiscal years. 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 years beginning after December 15, 2016, including interim periods within those fiscal years. 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 years beginning after December 15, 2016, including interim years 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 years beginning after December 15, 2018, including interim periods within those fiscal years. 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 on its accounting policies and 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 years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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 years beginning after December 15, 2016, including interim periods within those fiscal years. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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 annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The company does not expect a material impact on its consolidated financial statements from adoption of this guidance. 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 on its accounting policies and its consolidated financial statements. Accounting standards implemented during fiscal year 2017 In January 2017, the FASB issued ASU 2017-03 which amended Accounting Changes and Error Corrections (Topic 250) to state that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance included in certain issued but not yet adopted ASUs was also updated to reflect this amendment. 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 adopted this standard prospectively in the first quarter of fiscal year 2017. This guidance did not have a material impact on its consolidated financial statements.
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

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Dec. 31, 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 2016 2015 Basic average common shares outstanding 87.1 92.5 Impact of restricted shares, restricted share units and performance share units 1.4 1.8 Diluted average common shares outstanding 88.5 94.3

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Summary of Discontinued Operations	Results of discontinued operations are summarized as follows (in millions): Three Months Ended 2016 2015 Sales $ — $ — Loss before income taxes $ — $ (3 ) Benefit from income taxes — 1 Loss from discontinued operations attributable to Meritor, Inc. $ — $ (2 )

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of the changes in carrying value of 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 Goodwill $ 245 $ 160 $ 405 Accumulated impairment losses (15 ) — (15 ) Beginning balance at September 30, 2016 230 160 390 Foreign currency translation (4 ) (3 ) (7 ) Balance at December 31, 2016 $ 226 $ 157 $ 383

Restructuring Costs (Tables)

Restructuring Costs (Tables)	3 Months Ended
	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Schedule of changes in restructuring reserves	The changes in restructuring reserves for the three months ended December 31, 2016 and 2015 are as follows (in millions): Employee Termination Benefits Plant Shutdown & Other Total Beginning balance at September 30, 2016 $ 15 $ 1 $ 16 Activity during the period: Charges to continuing operations — — — Cash payments – continuing operations (3 ) — (3 ) Total restructuring reserves at December 31, 2016 12 1 13 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at December 31, 2016 $ 10 $ 1 $ 11 Balance at September 30, 2015 $ 10 $ — $ 10 Activity during the period: Charges to continuing operations 1 — 1 Cash payments – continuing operations (2 ) — (2 ) Total restructuring reserves at December 31, 2015 9 — 9 Less: non-current restructuring reserves (2 ) — (2 ) Restructuring reserves – current, at December 31, 2015 $ 7 $ — $ 7

Operating Cash Flow (Tables)

Operating Cash Flow (Tables)	3 Months Ended
	Dec. 31, 2016
Operating Cash Flow Disclosure [Abstract]
Schedule Of Operating Cash Flow	The reconciliation of net income to cash flows used for operating activities is as follows (in millions): Three Months Ended December 31, 2016 2015 OPERATING ACTIVITIES Net income $ 16 $ 27 Less: Loss from discontinued operations, net of tax — (2 ) Income from continuing operations 16 29 Adjustments to income from continuing operations to arrive at cash used for operating activities: Depreciation and amortization 17 15 Restructuring costs — 1 Asset impairment charges 3 — Equity in earnings of affiliates (10 ) (10 ) Pension and retiree medical expense 4 5 Other adjustments to income from continuing operations 8 — Dividends received from equity method investments 5 8 Pension and retiree medical contributions (10 ) (13 ) Restructuring payments (3 ) (2 ) Changes in off-balance sheet accounts receivable factoring 39 48 Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations (84 ) (88 ) Operating cash flows used for continuing operations (15 ) (7 ) Operating cash flows provided by discontinued operations 1 2 CASH USED FOR OPERATING ACTIVITIES $ (14 ) $ (5 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 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): December 31, September 30, Finished goods $ 138 $ 125 Work in process 26 26 Raw materials, parts and supplies 170 165 Total $ 334 $ 316

Other Current Assets (Tables)

Other Current Assets (Tables)	3 Months Ended
	Dec. 31, 2016
Other Current Assets Disclosure [Abstract]
Summary of other current assets	Other current assets are summarized as follows (in millions): December 31, September 30, Asbestos-related recoveries (see Note 21) $ 10 $ 10 Prepaid and other 30 23 Other current assets $ 40 $ 33

Net Property (Tables)

Net Property (Tables)	3 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Summary of Net Property	Net property is summarized as follows (in millions): December 31, September 30, Property at cost: Land and land improvements $ 29 $ 30 Buildings 228 231 Machinery and equipment 830 839 Company-owned tooling 116 113 Construction in progress 43 56 Total 1,246 1,269 Less: accumulated depreciation (823 ) (830 ) Net property $ 423 $ 439

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Dec. 31, 2016
Other Assets, Noncurrent [Abstract]
Summary of other assets	Other assets are summarized as follows (in millions): December 31, September 30, Investments in non-consolidated joint ventures $ 104 $ 100 Asbestos-related recoveries (see Note 21) 47 49 Unamortized revolver debt issuance costs 6 7 Capitalized software costs, net 27 29 Non-current deferred income tax assets, net 409 413 Assets for uncertain tax positions 33 35 Prepaid pension costs 123 123 Other 8 4 Other assets $ 757 $ 760

Unconsolidated Significant Su42

Unconsolidated Significant Subsidiary (Tables)	3 Months Ended
	Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
Summarized income statement information of non-consolidated joint venture	In accordance with this requirement, the company’s non-consolidated joint venture Meritor WABCO Vehicle Control Systems’ summarized income statement information is as follows (in millions): Three Months Ended December 31, 2016 2015 Sales $ 72 $ 85 Gross Margin $ 20 $ 22 Income from continuing operations $ 12 $ 15 Net income $ 12 $ 15

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Dec. 31, 2016
Other Current Liabilities Disclosure [Abstract]
Summary of other current liabilities	Other current liabilities are summarized as follows (in millions): December 31, September 30, Compensation and benefits $ 86 $ 115 Income taxes 7 8 Taxes other than income taxes 21 21 Accrued interest 15 14 Product warranties 16 18 Environmental reserves (see Note 21) 6 7 Restructuring (see Note 7) 11 14 Asbestos-related liabilities (see Note 21) 18 18 Indemnity obligations (see Note 21) 2 2 Other 54 51 Other current liabilities $ 236 $ 268
Summary of the changes in product warranties	A summary of the changes in product warranties is as follows (in millions): Three Months Ended December 31, 2016 2015 Total product warranties – beginning of period $ 44 $ 48 Accruals for product warranties 3 3 Payments (3 ) (4 ) Change in estimates and other (4 ) — Total product warranties – end of period 40 47 Less: Non-current product warranties (24 ) (25 ) Product warranties – current $ 16 $ 22

Other Liabilities (Tables)

Other Liabilities (Tables)	3 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Summary of other liabilities	Other liabilities are summarized as follows (in millions): December 31, September 30, Asbestos-related liabilities (see Note 21) $ 130 $ 136 Restructuring (see Note 7) 2 2 Non-current deferred income tax liabilities 12 12 Liabilities for uncertain tax positions 14 16 Product warranties (see Note 16) 24 26 Environmental (see Note 21) 6 6 Indemnity obligations (see Note 21) 11 11 Other 29 29 Other liabilities $ 228 $ 238

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Summary of long-term debt	Long-Term Debt, net of discounts where applicable, is summarized as follows (in millions): December 31, September 30, 4.0 percent convertible notes due 2027 (1)(3) $ 142 $ 142 7.875 percent convertible notes due 2026 (1)(4) 130 129 6.75 percent notes due 2021 (2)(5) 271 271 6.25 percent notes due 2024 (2)(6) 443 442 Capital lease obligation 15 16 Export financing arrangements and other 6 10 Unamortized discount on convertible notes (7) (13 ) (14 ) Subtotal 994 996 Less: current maturities (11 ) (14 ) Long-term debt $ 983 $ 982 (1) 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. (2) The 6.75 percent and 6.25 percent notes contain a call option, which allows for early redemption. (3) The 4.0 percent convertible notes due 2027 are presented net of $1 million unamortized issuance costs as of December 31, 2016 and September 30, 2016. (4) The 7.875 percent convertible notes due 2026 are presented net of $2 million unamortized issuance costs as of December 31, 2016 and September 30, 2016 , and $8 million and $9 million original issuance discount as of December 31, 2016 and September 30, 2016 , respectively. (5) The 6.75 percent notes due 2021 are presented net of $4 million unamortized issuance costs as of December 31, 2016 and September 30, 2016 . (6) The 6.25 percent notes due 2024 are presented net of $7 million unamortized issuance costs as of December 31, 2016 and September 30, 2016 . (7) The carrying amount of the equity component related to convertible debt.
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%

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of financial instruments	Fair values of financial instruments are summarized as follows (in millions): December 31, 2016 September 30, 2016 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 125 $ 125 $ 160 $ 160 Short-term debt 11 11 14 14 Long-term debt 983 1,071 982 1,051 Foreign exchange forward contracts (other assets) 2 2 1 1 Foreign exchange forward contracts (other liabilities) 2 2 2 2 Short-term foreign currency option contracts (other assets) 1 1 — — Long-term foreign currency option contracts (other asset) 2 2 2 2
Offsetting of derivative assets and liabilities	The following table reflects the offsetting of derivative assets and liabilities (in millions): December 31, 2016 September 30, 2016 Gross Gross Amounts Net Amounts Gross Gross Amounts Net Amounts Derivative Asset Foreign exchange forward contract 3 (1 ) 2 1 — 1 Derivative Liabilities Foreign exchange forward contract 3 (1 ) 2 2 — 2
Fair value of financial instruments by valuation hierarchy	Fair value of financial instruments by the valuation hierarchy at December 31, 2016 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 125 $ — $ — Short-term debt — — 11 Long-term debt — 1,060 11 Foreign exchange forward contracts (asset) — 2 — Foreign exchange forward contracts (liability) — 2 — Short-term foreign currency option contracts (asset) — — 1 Long-term foreign currency option contracts (asset) — — 2 Fair value of financial instruments by the valuation hierarchy at September 30, 2016 is as follows (in millions): Level 1 Level 2 Level 3 Cash and cash equivalents $ 160 $ — $ — Short-term debt — — 14 Long-term debt — 1,040 11 Foreign exchange forward contracts (asset) — 1 — Foreign exchange forward contracts (liability) — 2 — Short-term foreign currency option contracts (asset) — — — Long-term foreign currency option contracts (asset) — — 2
Reconciliation of changes in fair value	No transfers of assets between any of the Levels occurred during these periods. Three months ended December 31, 2016 (in millions) Short-term foreign currency option contracts (asset) Long-term foreign currency option contracts (asset) Total Fair Value as of September 30, 2016 $ — $ 2 $ 2 Total unrealized gains (losses): Included in other income — — — Included in cost of sales — 1 1 Total realized gains (losses): Included in other income — — — Included in cost of sales — — — Purchases, issuances, sales and settlements: Purchases — — — Settlements — — — Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term 1 (1 ) — Fair Value as of December 31, 2016 $ 1 $ 2 $ 3 Three months ended December 31, 2015 (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 — — — Included in cost of sales — (1 ) (1 ) Total realized gains (losses): Included in other income — — — Included in cost of sales — — — Purchases, issuances, sales and settlements: Purchases 1 — 1 Settlements — — — Transfer in and / or out of Level 3 (1) — — — Reclass between short-term and long-term — — — Fair Value as of December 31, 2015 $ 2 $ — $ 2 (1) Transfers as of the last day of the reporting period.

Retirement Benefit Liabilities

Retirement Benefit Liabilities (Tables)	3 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Summary of retirement benefit liabilities	Retirement benefit liabilities consisted of the following (in millions): December 31, September 30, Retiree medical liability $ 442 $ 447 Pension liability 274 283 Other 14 13 Subtotal 730 743 Less: current portion (included in compensation and benefits, Note 16) (39 ) (40 ) Retirement benefits $ 691 $ 703
Components of net periodic pension and retiree medical expense	The components of net periodic pension and retiree medical expense included in continuing operations for the three months ended December 31 are as follows (in millions): 2016 2015 Pension Retiree Medical Pension Retiree Medical Interest cost $ 13 $ 4 $ 6 $ 4 Assumed return on plan assets (23 ) — (25 ) — Amortization of prior service costs — (1 ) — — Recognized actuarial loss 7 4 6 3 Total expense (income) $ (3 ) $ 7 $ (13 ) $ 7

Contingencies (Tables)

Contingencies (Tables)	3 Months Ended
	Dec. 31, 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, 2016 $ 2 $ 11 $ 13 Payments and other — (2 ) (2 ) Accruals — 1 1 Balance at December 31, 2016 $ 2 $ 10 $ 12
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): December 31, September 30, Pending and future claims $ 70 $ 70 Billed but unpaid claims 3 2 Asbestos-related liabilities $ 73 $ 72 Asbestos-related insurance recoveries $ 31 $ 32
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): December 31, September 30, Pending and future claims $ 60 $ 60 Billed but unpaid claims 2 1 Asbestos-related liabilities $ 62 $ 61 Asbestos-related insurance recoveries $ 27 $ 27

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of accumulated other comprehensive loss	The components of AOCL and the changes in AOCL by components, net of tax, for three months ended December 31, 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, 2016 $ (66 ) $ (740 ) $ (3 ) $ (809 ) Other comprehensive income (loss) before reclassification (28 ) 1 1 (26 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 10 — 10 Net current-period other comprehensive income (loss) $ (28 ) $ 11 $ 1 $ (16 ) Balance at December 31, 2016 $ (94 ) $ (729 ) $ (2 ) $ (825 ) 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 ) — 3 (3 ) Amounts reclassified from accumulated other comprehensive loss - net of tax — 9 — 9 Net current-period other comprehensive income (loss) $ (6 ) $ 9 $ 3 $ 6 Balance at December 31, 2015 $ (60 ) $ (696 ) $ (4 ) $ (760 )
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 Actuarial losses $ 9 (b) 9 Total before tax — Tax expense Total reclassifications for the period 9 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 20 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 ) (a) Actuarial losses 11 (a) 10 Total before tax — Tax (benefit) expense Total reclassifications for the period $ 10 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 20 for additional details), which is recorded in cost of sales and selling, general and administrative expenses.

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Dec. 31, 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 December 31, 2016 External Sales $ 521 $ 178 $ — $ 699 Intersegment Sales 18 6 (24 ) — Total Sales $ 539 $ 184 $ (24 ) $ 699 Three Months Ended December 31, 2015 External Sales $ 613 $ 196 $ — $ 809 Intersegment Sales 20 7 (27 ) — Total Sales $ 633 $ 203 $ (27 ) $ 809
Segment income attributable to parent	Three Months Ended 2016 2015 Segment EBITDA: Commercial Truck & Industrial $ 42 $ 52 Aftermarket & Trailer 22 20 Segment EBITDA 64 72 Unallocated legacy and corporate income, net (1) — 4 Interest expense, net (21 ) (22 ) Provision for income taxes (6 ) (7 ) Depreciation and amortization (17 ) (15 ) Noncontrolling interests (1 ) (1 ) Loss on sale of receivables (1 ) (2 ) Asset impairment charges (3 ) — Restructuring costs — (1 ) Income from continuing operations attributable to Meritor, Inc. $ 15 $ 28 (1) Unallocated legacy and corporate income, net represents items that are not directly related to the company's business segments. These items 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: December 31, September 30, Commercial Truck & Industrial $ 1,414 $ 1,433 Aftermarket & Trailer 424 436 Total segment assets 1,838 1,869 Corporate (1) 805 845 Less: Accounts receivable sold under off-balance sheet factoring programs (2) (249 ) (220 ) Total assets $ 2,394 $ 2,494 (1) Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. (2) At December 31, 2016 and September 30, 2016 , segment assets include $249 million and $220 million , respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (see Note 9). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.

Supplemental Guarantor Conden51

Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)	3 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Schedule of condensed consolidating statement of operations	Three Months Ended December 31, 2016 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 325 $ 374 $ — $ 699 Subsidiaries — 26 12 (38 ) — Total sales — 351 386 (38 ) 699 Cost of sales (14 ) (297 ) (337 ) 38 (610 ) GROSS MARGIN (14 ) 54 49 — 89 Selling, general and administrative (23 ) (18 ) (12 ) — (53 ) Restructuring costs 2 — (2 ) — — Other operating income (expense), net — — (3 ) — (3 ) OPERATING INCOME (LOSS) (35 ) 36 32 — 33 Other income (expense), net (1 ) — 1 — — Equity in earnings of affiliates — 9 1 — 10 Interest income (expense), net (33 ) 10 2 — (21 ) INCOME (LOSS) BEFORE INCOME TAXES (69 ) 55 36 — 22 Provision for income taxes 20 (20 ) (6 ) — (6 ) Equity income (loss) from continuing operations of subsidiaries 64 28 — (92 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS 15 63 30 (92 ) 16 LOSS FROM DISCONTINUED OPERATIONS, net of tax — — — — — NET INCOME (LOSS) 15 63 30 (92 ) 16 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC. $ 15 $ 63 $ 29 $ (92 ) $ 15 Three Months Ended December 31, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Sales External $ — $ 417 $ 392 $ — $ 809 Subsidiaries — 27 16 (43 ) — Total sales — 444 408 (43 ) 809 Cost of sales (14 ) (377 ) (357 ) 43 (705 ) GROSS MARGIN (14 ) 67 51 — 104 Selling, general and administrative (20 ) (21 ) (15 ) — (56 ) Restructuring costs — — (1 ) — (1 ) OPERATING INCOME (LOSS) (34 ) 46 35 — 47 Other income (expense), net (1 ) — 2 — 1 Equity in earnings of affiliates — 9 1 — 10 Interest income (expense), net (31 ) 8 1 — (22 ) INCOME (LOSS) BEFORE INCOME TAXES (66 ) 63 39 — 36 Provision for income taxes — — (7 ) — (7 ) Equity income from continuing operations of subsidiaries 94 27 — (121 ) — INCOME FROM CONTINUING OPERATIONS 28 90 32 (121 ) 29 LOSS FROM DISCONTINUED OPERATIONS, net of tax (2 ) (3 ) (3 ) 6 (2 ) NET INCOME 26 87 29 (115 ) 27 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) NET INCOME ATTRIBUTABLE TO MERITOR, INC. $ 26 $ 87 $ 28 $ (115 ) $ 26
Schedule of condensed consolidating statement of comprehensive income (loss)	Three Months Ended December 31, 2016 Parent Guarantors Non- Elims Consolidated Net income (loss) $ 15 $ 63 $ 30 $ (92 ) $ 16 Other comprehensive income (loss) (16 ) 2 (27 ) 23 (18 ) Total comprehensive income (loss) (1 ) 65 3 (69 ) (2 ) Less: Comprehensive income attributable to — — 1 — 1 Comprehensive income (loss) attributable to Meritor, Inc. $ (1 ) $ 65 $ 4 $ (69 ) $ (1 ) Three Months Ended December 31, 2015 Parent Guarantors Non- Guarantors Elims Consolidated Net income $ 26 $ 87 $ 29 $ (115 ) $ 27 Other comprehensive income (loss) 6 (11 ) 8 3 6 Total comprehensive income 32 76 37 (112 ) 33 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Meritor, Inc. $ 32 $ 76 $ 36 $ (112 ) $ 32
Schedule of condensed consolidating balance sheet	December 31, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents (1) $ 65 $ 4 $ 56 $ — $ 125 Receivables trade and other, net (1) 1 32 299 — 332 Inventories (1) — 155 179 — 334 Other current assets 7 13 20 — 40 TOTAL CURRENT ASSETS 73 204 554 — 831 NET PROPERTY 22 197 204 — 423 GOODWILL (1) — 219 164 — 383 OTHER ASSETS 448 133 176 — 757 INVESTMENTS IN SUBSIDIARIES 2,633 675 — (3,308 ) — TOTAL ASSETS $ 3,176 $ 1,428 $ 1,098 $ (3,308 ) $ 2,394 CURRENT LIABILITIES: Short-term debt $ 1 $ 3 $ 7 $ — $ 11 Accounts and notes payable (1) 16 171 243 — 430 Other current liabilities 81 65 90 — 236 TOTAL CURRENT LIABILITIES 98 239 340 — 677 LONG-TERM DEBT 973 2 8 — 983 RETIREMENT BENEFITS 670 — 21 — 691 INTERCOMPANY PAYABLE (RECEIVABLE) 1,613 (1,803 ) 190 — — OTHER LIABILITIES 31 155 42 — 228 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (209 ) 2,835 473 (3,308 ) (209 ) NONCONTROLLING INTERESTS (1) — — 24 — 24 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 3,176 $ 1,428 $ 1,098 $ (3,308 ) $ 2,394 (1) As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. These assets and liabilities held for sale are included in the Non-Guarantors column. September 30, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CURRENT ASSETS: Cash and cash equivalents (1) $ 90 $ 4 $ 66 $ — $ 160 Receivables trade and other, net (1) 1 39 356 — 396 Inventories (1) — 143 173 — 316 Other current assets 5 12 16 — 33 TOTAL CURRENT ASSETS 96 198 611 — 905 NET PROPERTY (1) 22 198 219 — 439 GOODWILL — 219 171 — 390 OTHER ASSETS 447 132 181 — 760 INVESTMENTS IN SUBSIDIARIES 2,575 679 — (3,254 ) — TOTAL ASSETS $ 3,140 $ 1,426 $ 1,182 $ (3,254 ) $ 2,494 CURRENT LIABILITIES: Short-term debt $ 1 $ 4 $ 9 $ — $ 14 Accounts and notes payable (1) 42 172 261 — 475 Other current liabilities 90 74 104 — 268 TOTAL CURRENT LIABILITIES 133 250 374 — 757 LONG-TERM DEBT 971 3 8 — 982 RETIREMENT BENEFITS 680 — 23 — 703 INTERCOMPANY PAYABLE (RECEIVABLE) 1,534 (1,768 ) 234 — — OTHER LIABILITIES 34 162 42 — 238 EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. (212 ) 2,779 476 (3,254 ) (211 ) NONCONTROLLING INTERESTS (1) — — 25 — 25 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 3,140 $ 1,426 $ 1,182 $ (3,254 ) $ 2,494 (1) As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.These assets and liabilities held for sale are included in the Non-Guarantors column.
Schedule of condensed consolidating statement of cash flows	Three Months Ended December 31, 2016 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ (44 ) $ 6 $ 24 $ — $ (14 ) INVESTING ACTIVITIES Capital expenditures (5 ) (7 ) (5 ) — (17 ) Net investing cash flows provided by discontinued operations — 2 — — 2 CASH USED FOR INVESTING ACTIVITIES (5 ) (5 ) (5 ) — (15 ) FINANCING ACTIVITIES Intercompany advances 24 — (24 ) — — Other financing activities — (1 ) (3 ) — (4 ) CASH USED FOR FINANCING ACTIVITIES 24 (1 ) (27 ) — (4 ) EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — (2 ) — (2 ) CHANGE IN CASH AND CASH EQUIVALENTS (25 ) — (10 ) — (35 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 90 4 66 — 160 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 65 $ 4 $ 56 $ — $ 125 Three Months Ended December 31, 2015 Parent Guarantors Non- Guarantors Elims Consolidated CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ (53 ) $ 21 $ 27 $ — $ (5 ) INVESTING ACTIVITIES Capital expenditures (7 ) (8 ) (7 ) — (22 ) Other investing activities — 2 (1 ) — 1 Net investing cash flows provided by discontinued operations — — 3 — 3 CASH USED FOR INVESTING ACTIVITIES (7 ) (6 ) (5 ) — (18 ) FINANCING ACTIVITIES Repurchase of common stock (43 ) — — — (43 ) Intercompany advances 40 — (40 ) — — Other financing activities — (1 ) 2 — 1 CASH USED FOR FINANCING ACTIVITIES (3 ) (1 ) (38 ) — (42 ) EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS — — — — — CHANGE IN CASH AND CASH EQUIVALENTS (63 ) 14 (16 ) — (65 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 73 6 114 — 193 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 10 $ 20 $ 98 $ — $ 128

Earnings per Share - Reconcilia

Earnings per Share - Reconciliation of common shares (Details) - shares shares in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Basic average common shares outstanding (in shares)	87.1	92.5
Impact of restricted shares, restricted share units and performance share units (in shares)	1.4	1.8
Diluted average common shares outstanding (in shares)	88.5	94.3

Earnings per Share - Additional

Earnings per Share - Additional information (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 01, 2016	Dec. 01, 2015	Dec. 01, 2014	Dec. 02, 2013	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Nov. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Impact of restricted shares, restricted share units and performance share units (in shares)								1,400,000	1,800,000
Share-based compensation expense								$ 3	$ 3
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
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	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)	$ 12.77	$ 10.51	$ 13.74	$ 7.97
Executive Officer | Performance Shares | Performance period of October 1, 2015 to September 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance period					3 years	3 years
Shares authorized for grant (in shares)						700,000
Executive Officer | Performance Shares | Performance period of October 1, 2015 to September 30, 2018 | Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								0.00%
Executive Officer | Performance Shares | Performance period of October 1, 2015 to September 30, 2018 | Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								200.00%
Executive Officer | Performance Shares | Performance period of October 1, 2015 to September 30, 2018 | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								50.00%
Executive Officer | Performance Shares | Performance period of October 1, 2015 to September 30, 2018 | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								50.00%
Executive Officer | Performance Shares | Performance period of October 1, 2016 to September 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares authorized for grant (in shares)					600,000
Executive Officer | Performance Shares | Performance period of October 1, 2016 to September 30, 2019 | Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								0.00%
Executive Officer | Performance Shares | Performance period of October 1, 2016 to September 30, 2019 | Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								200.00%
Executive Officer | Performance Shares | Performance period of October 1, 2016 to September 30, 2019 | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								50.00%
Executive Officer | Performance Shares | Performance period of October 1, 2016 to September 30, 2019 | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								25.00%
Executive Officer | Performance Shares | Performance period of October 1, 2016 to September 30, 2019 | Performance Objective Three
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								25.00%
Executive Officer | Performance Shares | Performance period of October 1, 2014 to September 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance period								3 years
Shares authorized for grant (in shares)							600,000
Executive Officer | Performance Shares | Performance period of October 1, 2014 to September 30, 2017 | Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								0.00%
Executive Officer | Performance Shares | Performance period of October 1, 2014 to September 30, 2017 | Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based vesting percentage								200.00%
Executive Officer | Performance Shares | Performance period of October 1, 2014 to September 30, 2017 | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								75.00%
Executive Officer | Performance Shares | Performance period of October 1, 2014 to September 30, 2017 | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage								25.00%
Executive Officer | Performance Shares | Performance period of October 1, 2013 to September 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance period										3 years
Impact of convertible notes (in shares)								900,000	900,000
Performance share units vested or forfeited, percentage	112.00%
Executive Officer | Performance Shares | Performance period of October 1, 2013 to September 30, 2016 | Performance Objective One
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage	50.00%
Executive Officer | Performance Shares | Performance period of October 1, 2013 to September 30, 2016 | Performance Objective Two
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage	25.00%
Executive Officer | Performance Shares | Performance period of October 1, 2013 to September 30, 2016 | Performance Objective Three
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Award vesting rights percentage	25.00%
Executive Officer | Restricted Share Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price (in usd per share)	$ 12.77	$ 10.51	$ 13.74
Shares granted (in shares)					500,000	500,000	400,000
Vesting period	3 years	3 years	3 years

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Sales	$ 0	$ 0
Loss before income taxes	0	(3)
Benefit from income taxes	0	1
Loss from discontinued operations attributable to Meritor, Inc.	0	$ (2)
Discontinued operations, assets	1		$ 1
Discontinued operations, liabilities	$ 6		$ 6

Assets and Liabilities Held f55

Assets and Liabilities Held for Sale (Details) $ in Millions	3 Months Ended
	Dec. 31, 2016USD ($)
Assets And Liabilities Held-For-Sale [Abstract]
Impairment charge for assets held for sale	$ 3

Goodwill (Details)

Goodwill (Details) $ in Millions		3 Months Ended
		Dec. 31, 2016USD ($)segment	Sep. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments | segment		2
Number of reportable segments | segment		2
Goodwill [Line Items]
Goodwill gross			$ 405
Accumulated impairment losses, Beginning balance			(15)
Goodwill [Roll Forward]
Goodwill net, Beginning balance	[1]	$ 390
Foreign currency translation		(7)
Goodwill net, Ending balance	[1]	383
Commercial Truck & Industrial
Goodwill [Line Items]
Goodwill gross			245
Accumulated impairment losses, Beginning balance			(15)
Goodwill [Roll Forward]
Goodwill net, Beginning balance		230
Foreign currency translation		(4)
Goodwill net, Ending balance		226
Aftermarket & Trailer
Goodwill [Line Items]
Goodwill gross			160
Accumulated impairment losses, Beginning balance			$ 0
Goodwill [Roll Forward]
Goodwill net, Beginning balance		160
Foreign currency translation		(3)
Goodwill net, Ending balance		$ 157
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Restructuring Reserve [Roll Forward]
Beginning balance	$ 16	$ 10
Charges to continuing operations	0	1
Cash payments – continuing operations	(3)	(2)
Ending balance	13	9
Less: non-current restructuring reserves	(2)	(2)	$ (2)
Restructuring reserves – current	11	7	$ 14
Employee Termination Benefits
Restructuring Reserve [Roll Forward]
Beginning balance	15	10
Charges to continuing operations	0	1
Cash payments – continuing operations	(3)	(2)
Ending balance	12	9
Less: non-current restructuring reserves	(2)	(2)
Restructuring reserves – current	10	7
Plant Shutdown & Other
Restructuring Reserve [Roll Forward]
Beginning balance	1	0
Charges to continuing operations	0	0
Cash payments – continuing operations	0	0
Ending balance	1	0
Less: non-current restructuring reserves	0	0
Restructuring reserves – current	$ 1	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net pre-tax income (loss) tax benefit not recorded	$ (1)	$ 11

Accounts Receivable Factoring59

Accounts Receivable Factoring and Securitization (Details) € in Millions	3 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2016EUR (€)	Dec. 31, 2016USD ($)	Sep. 30, 2016EUR (€)	Sep. 30, 2016USD ($)
Accounts Receivable Factoring and Securitization [Line Items]
Costs associated with off balance sheet factoring arrangements	$ 1,000,000	$ 2,000,000
Swedish Factoring Facility
Accounts Receivable Factoring and Securitization [Line Items]
Maximum limit for sale of eligible trade receivables			€ 155	$ 163,000,000
Utilization of accounts receivable factoring facility under arrangement			158	166,000,000	€ 121	$ 135,000,000
Liquidity commitment on facilities	364 days
U.S Factoring Facility
Accounts Receivable Factoring and Securitization [Line Items]
Maximum limit for sale of eligible trade receivables			80	84,000,000
Utilization of accounts receivable factoring facility under arrangement			33	34,000,000	39	44,000,000
United Kingdom Factoring Facility
Accounts Receivable Factoring and Securitization [Line Items]
Maximum limit for sale of eligible trade receivables			25	26,000,000
Utilization of accounts receivable factoring facility under arrangement			9	9,000,000	6	6,000,000
Italy Factoring Facility
Accounts Receivable Factoring and Securitization [Line Items]
Maximum limit for sale of eligible trade receivables			30	31,000,000
Utilization of accounts receivable factoring facility under arrangement			€ 25	26,000,000	€ 22	24,000,000
Other Factoring Facility
Accounts Receivable Factoring and Securitization [Line Items]
Utilization of accounts receivable factoring facility under arrangement				13,000,000		10,000,000
U.S. Securitization Financing Facility
Accounts Receivable Factoring and Securitization [Line Items]
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
	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES
NET INCOME	$ 16	$ 27
Less: Loss from discontinued operations, net of tax	0	(2)
INCOME (LOSS) FROM CONTINUING OPERATIONS	16	29
Adjustments to income from continuing operations to arrive at cash used for operating activities:
Depreciation and amortization	17	15
Restructuring costs	0	1
Asset impairment charges	3	0
Equity in earnings of affiliates	(10)	(10)
Pension and retiree medical expense	4	5
Other adjustments to income from continuing operations	8	0
Dividends received from equity method investments	5	8
Pension and retiree medical contributions	(10)	(13)
Restructuring payments	(3)	(2)
Changes in off-balance sheet accounts receivable factoring	39	48
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign currency adjustments and discontinued operations	(84)	(88)
Operating cash flows used for continuing operations	(15)	(7)
Operating cash flows provided by discontinued operations	1	2
CASH USED FOR OPERATING ACTIVITIES	$ (14)	$ (5)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions		Dec. 31, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Finished goods		$ 138	$ 125
Work in process		26	26
Raw materials, parts and supplies		170	165
Total inventories	[1]	$ 334	$ 316
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Other Current Assets Disclosure [Abstract]
Asbestos-related recoveries (see Note 21)	$ 10	$ 10
Prepaid and other	30	23
Other current assets	$ 40	$ 33

Net Property (Details)

Net Property (Details) - USD ($) $ in Millions		Dec. 31, 2016	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Property at cost		$ 1,246	$ 1,269
Less: accumulated depreciation		(823)	(830)
Net property	[1]	423	439
Land and land improvements
Property, Plant and Equipment [Line Items]
Property at cost		29	30
Buildings
Property, Plant and Equipment [Line Items]
Property at cost		228	231
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property at cost		830	839
Company-owned tooling
Property, Plant and Equipment [Line Items]
Property at cost		116	113
Construction in progress
Property, Plant and Equipment [Line Items]
Property at cost		$ 43	$ 56
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.

Other Assets - Summary of other

Other Assets - Summary of other assets (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Other Assets, Noncurrent [Abstract]
Investments in non-consolidated joint ventures	$ 104	$ 100
Asbestos-related recoveries (see Note 21)	47	49
Unamortized revolver debt issuance costs	6	7
Capitalized software costs, net	27	29
Non-current deferred income tax assets, net	409	413
Assets for uncertain tax positions	33	35
Prepaid pension costs	123	123
Other	8	4
Other assets	$ 757	$ 760

Other Assets - Additional infor

Other Assets - Additional information (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Equity Method Joint Venture
Schedule of Equity Method Investments [Line Items]
Investments in joint venture	$ 47	$ 45

Unconsolidated Significant Su66

Unconsolidated Significant Subsidiary (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Sales	$ 72	$ 85
Gross Margin	20	22
Income from continuing operations	12	15
Net income	$ 12	$ 15

Other Current Liabilities - Sum

Other Current Liabilities - Summary of other current liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Other Current Liabilities Disclosure [Abstract]
Compensation and benefits	$ 86	$ 115
Income taxes	7	8
Taxes other than income taxes	21	21
Accrued interest	15	14
Product warranties	16	18	$ 22
Environmental reserves (see Note 21)	6	7
Restructuring (see Note 7)	11	14	$ 7
Asbestos-related liabilities (see Note 21)	18	18
Indemnity obligations (see Note 21)	2	2
Other	54	51
Other current liabilities	$ 236	$ 268

Other Current Liabilities - S68

Other Current Liabilities - Summary of changes in product warranties (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Total product warranties – beginning of period	$ 44	$ 48
Accruals for product warranties	3	3
Payments	(3)	(4)
Change in estimates and other	(4)	0
Total product warranties – end of period	40	47
Less: Non-current product warranties	(24)	(25)	$ (26)
Product warranties – current	$ 16	$ 22	$ 18

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Asbestos-related liabilities (see Note 21)	$ 130	$ 136
Restructuring (see Note 7)	2	2	$ 2
Non-current deferred income tax liabilities	12	12
Liabilities for uncertain tax positions	14	16
Product warranties (see Note 16)	24	26	$ 25
Environmental (see Note 21)	6	6
Indemnity obligations (see Note 21)	11	11
Other	29	29
Other liabilities	$ 228	$ 238

Long-Term Debt - Schedule of lo

Long-Term Debt - Schedule of long-term debt (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Capital lease obligation	$ 15	$ 16
Subtotal	994	996
Less: current maturities	(11)	(14)
Long-term debt	983	982
Unamortized issuance cost	6	7
Convertible Notes Payable
Debt Instrument [Line Items]
Unamortized discount on convertible notes	(13)	(14)
4.0% convertible notes due 2027 | Convertible Notes Payable
Debt Instrument [Line Items]
Debt	$ 142	142
Interest rate	4.00%
Unamortized issuance cost	$ 1	1
7.875% Convertible Notes Due 2026 | Convertible Notes Payable
Debt Instrument [Line Items]
Debt	$ 130	129
Interest rate	7.875%
Unamortized issuance cost	$ 2	2
Original issuance discount	8	9
6.75% notes due 2021
Debt Instrument [Line Items]
Debt	$ 271	271
Interest rate	6.75%
Unamortized issuance cost	$ 4	4
6.25% notes due 2024
Debt Instrument [Line Items]
Debt	$ 443	442
Interest rate	6.25%
Unamortized issuance cost	$ 7	7
Export financing arrangements and other
Debt Instrument [Line Items]
Debt	$ 6	$ 10

Long-Term Debt - Revolving Cred

Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility	3 Months Ended
	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 02, 2016USD ($)
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	$ 8,000,000		32,000,000
Revolving Credit Facility - Amended - Matures In February 2019
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 498,000,000
Amended Revolving Credit Facility
Line of Credit Facility [Line Items]
Collateral test, maximum ratio	1
Value of company assets collateralized	$ 677,000,000
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	Dec. 31, 2016	Sep. 30, 2015	Sep. 30, 2016
Debt Instrument [Line Items]
Principal amount redeemable			$ 79,000,000
Redemption, principal amount outstanding, minimum			$ 146,000,000
6.25% notes due 2024
Debt Instrument [Line Items]
Interest rate			6.25%
Proceeds from debt issuance		$ 225,000,000
Debt			$ 443,000,000		$ 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
Interest rate			6.25%
Issuance price percentage		100.00%
Debt	450,000,000
Debt redemption price percentage			100.00%
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]
Interest rate		10.625%
Repurchased amount of debt		$ 250,000,000
Convertible Notes | 7.875% Convertible Notes Due 2026
Debt Instrument [Line Items]
Interest rate			7.875%
Repurchased amount of debt	110,000,000			$ 110,000,000
Repayments of convertible debt	$ 179,000,000			$ 179,000,000
Debt			$ 130,000,000		$ 129,000,000

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	Dec. 31, 2016	Sep. 30, 2016
7.875% Convertible Notes Due 2026
Debt Instrument [Line Items]
Principal amount of convertible notes repurchased		$ 110	$ 110			$ 110
Interest rate							7.875%
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
4.0% convertible notes due 2027
Debt Instrument [Line Items]
Principal amount of convertible notes repurchased			$ 19			$ 19
Interest rate							4.00%
Extinguishment of debt, amount				$ 4	$ 15
Repurchase price percentage				5.00%	6.00%
4.625% convertible notes due 2026
Debt Instrument [Line Items]
Principal amount of convertible notes repurchased	$ 55
Interest rate								4.625%
Repurchase price percentage	100.00%

Long-Term Debt - Capital Leases

Long-Term Debt - Capital Leases (Details) - USD ($)	Mar. 20, 2012	Dec. 31, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Outstanding capital lease obligations		$ 15,000,000	$ 16,000,000
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		$ 5,000,000	7,000,000
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	$ 9,000,000

Long-Term Debt - Letter of Cred

Long-Term Debt - Letter of Credit Facilities (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Dec. 20, 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	$ 23,000,000	$ 23,000,000
Other Letters of Credit Arrangements
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 5,000,000	$ 5,000,000

Long-Term Debt - Export financi

Long-Term Debt - Export financing arrangements (Details) - BRAZIL - Note payable - Export Financing Arrangement - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Interest rate	5.50%
Long-term debt outstanding	$ 6	$ 9

Long-Term Debt - Other (Details

Long-Term Debt - Other (Details) - CHINA - Notes Payable to Banks - Other Export Financing Arrangements - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Debt default, amount	$ 35
Long-term debt outstanding	$ 8	$ 10

Financial Instruments - Fair va

Financial Instruments - Fair value of financial instruments (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 125	$ 160
Short-term debt	11	14
Long-term debt	983	982
Carrying Value | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (other assets)	2	1
Foreign exchange forward contracts (other liabilities)	2	2
Carrying Value | Foreign currency option contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term foreign currency option contracts (other assets)	1	0
Long-term foreign currency option contracts (other asset)	2	2
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	125	160
Short-term debt	11	14
Long-term debt	1,071	1,051
Fair Value | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (other assets)	2	1
Foreign exchange forward contracts (other liabilities)	2	2
Fair Value | Foreign currency option contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term foreign currency option contracts (other assets)	1	0
Long-term foreign currency option contracts (other asset)	$ 2	$ 2

Financial Instruments - Offsett

Financial Instruments - Offsetting of derivative assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Derivative Asset
Gross Amounts Recognized	$ 3	$ 1
Gross Amounts Offset	(1)	0
Net Amounts Reported	2	1
Derivative Liabilities
Gross Amounts Recognized	3	2
Gross Amounts Offset	(1)	0
Net Amounts Reported	$ 2	$ 2

Financial Instruments - Fair 80

Financial Instruments - Fair value of financial instruments by valuation hierarchy (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 125	$ 160
Short-term debt	0	0
Long-term debt	0	0
Level 1 | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (other assets)	0	0
Foreign exchange forward contracts (liability)	0	0
Level 1 | Foreign currency option contracts | Short-term
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency option contracts (asset)	0	0
Level 1 | Foreign currency option contracts | Long-term
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency option contracts (asset)	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Short-term debt	0	0
Long-term debt	1,060	1,040
Level 2 | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (other assets)	2	1
Foreign exchange forward contracts (liability)	2	2
Level 2 | Foreign currency option contracts | Short-term
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency option contracts (asset)	0	0
Level 2 | Foreign currency option contracts | Long-term
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency option contracts (asset)	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Short-term debt	11	14
Long-term debt	11	11
Level 3 | Foreign exchange forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts (other assets)	0	0
Foreign exchange forward contracts (liability)	0	0
Level 3 | Foreign currency option contracts | Short-term
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency option contracts (asset)	1	0
Level 3 | Foreign currency option contracts | Long-term
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency option contracts (asset)	$ 2	$ 2

Financial Instruments - Reconci

Financial Instruments - Reconciliation of changes in fair value (Details) - Level 3 - Foreign currency option contracts - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, beginning of period	$ 2	$ 2
Purchases, issuances, sales and settlements:
Purchases	0	1
Settlements	0	0
Transfer in and / or out of Level 3	0	0
Reclass between short-term and long-term	0	0
Fair Value, end of period	3	2
Short-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, beginning of period	0	1
Purchases, issuances, sales and settlements:
Purchases	0	1
Settlements	0	0
Transfer in and / or out of Level 3	0	0
Reclass between short-term and long-term	1	0
Fair Value, end of period	1	2
Long-term
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, beginning of period	2	1
Purchases, issuances, sales and settlements:
Purchases	0	0
Settlements	0	0
Transfer in and / or out of Level 3	0	0
Reclass between short-term and long-term	(1)	0
Fair Value, end of period	2	0
Included in other income
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
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	0
Total realized gains (losses)	0	0
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
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)
Total realized gains (losses)	0	0
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)	0	0
Total realized gains (losses)	0	0
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)	1	(1)
Total realized gains (losses)	$ 0	$ 0

Financial Instruments - Additio

Financial Instruments - Additional information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2015
India, Rupees | Foreign currency option contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Foreign currency contract, notional amount	$ 147,000,000
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

Retirement Benefit Liabilitie83

Retirement Benefit Liabilities - Summary of retirement benefits (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Retiree medical liability	$ 442	$ 447
Pension liability	274	283
Other	14	13
Subtotal	730	743
Less: current portion (included in compensation and benefits, Note 16)	(39)	(40)
Retirement benefits	$ 691	$ 703

Retirement Benefit Liabilitie84

Retirement Benefit Liabilities - Components of net periodic pension and retiree medical expense (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	$ 13	$ 6
Assumed return on plan assets	(23)	(25)
Amortization of prior service costs	0	0
Recognized actuarial loss	7	6
Total expense (income)	(3)	(13)
Retiree Medical
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	4	4
Assumed return on plan assets	0	0
Amortization of prior service costs	(1)	0
Recognized actuarial loss	4	3
Total expense (income)	$ 7	$ 7

Contingencies - Additional Info

Contingencies - Additional Information (Details) $ in Millions	Dec. 12, 2015USD ($)	Dec. 31, 2016USD ($)siteclaim	Sep. 30, 2016USD ($)claim	Sep. 30, 2009USD ($)
Loss Contingencies [Line Items]
Environmental accrual balance		$ 12	$ 13
Discounted amount environmental accrual for on-going operations maintenance and monitoring		7
Undiscounted amount environmental accrual for on-going operations maintenance and monitoring		7
Maremont Asbestos
Loss Contingencies [Line Items]
Environmental accrual balance		$ 73	$ 72
Number of pending claims | claim		5,800	5,800
Obligation period for asbestos personal injury claims		10 years
Pending and future claims		$ 70	$ 70
Estimated insurance recoveries		31	32
Rockwell Asbestos
Loss Contingencies [Line Items]
Environmental accrual balance		$ 62	$ 61
Number of pending claims | claim		3,200	3,200
Obligation period for asbestos personal injury claims		10 years
Pending and future claims		$ 60	$ 60
Estimated insurance recoveries		$ 27	27
Superfund Sites
Loss Contingencies [Line Items]
Number of Superfund environmental sites | site		9
Environmental costs reasonably possible		$ 9
Environmental accrual balance		2	2
Non-Superfund Sites
Loss Contingencies [Line Items]
Environmental costs reasonably possible		30
Environmental accrual balance		10	11
Insurance Receivables | Rockwell Asbestos
Loss Contingencies [Line Items]
Estimated insurance recoveries		9	9
Indemnity Obligations
Loss Contingencies [Line Items]
Guarantee obligations recorded		11	11	$ 28
MSSC
Loss Contingencies [Line Items]
Indemnity obligations liability		$ 1	1
Low Range
Loss Contingencies [Line Items]
Site contingency, accrual, discount rate		1.00%
Low Range | Maremont Asbestos
Loss Contingencies [Line Items]
Range of possible loss			70
Low Range | Rockwell Asbestos
Loss Contingencies [Line Items]
Range of possible loss			60
High Range
Loss Contingencies [Line Items]
Site contingency, accrual, discount rate		2.75%
High Range | Maremont Asbestos
Loss Contingencies [Line Items]
Range of possible loss			83
High Range | Rockwell Asbestos
Loss Contingencies [Line Items]
Range of possible loss			75
Future tax years | Value Added Tax
Loss Contingencies [Line Items]
Increased liability		$ 10	10
Insurance Settlement | Maremont Asbestos
Loss Contingencies [Line Items]
Cash settlement	$ 17
Litigation settlement, expense	5	3	9
Increased liability	$ 12
Insurance Settlement | Rockwell Asbestos
Loss Contingencies [Line Items]
Cash settlement			32
Litigation settlement, expense		$ 3	10
Increased liability			22
Receivable recorded			12
Insurance Settlement 2 | Rockwell Asbestos
Loss Contingencies [Line Items]
Receivable recorded			$ 6

Contingencies - Summary of envi

Contingencies - Summary of environmental reserves (Details) $ in Millions	3 Months Ended
	Dec. 31, 2016USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance	$ 13
Payments and other	(2)
Accruals	1
Ending balance	12
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	11
Payments and other	(2)
Accruals	1
Ending balance	$ 10

Contingencies - Asbestos relate

Contingencies - Asbestos related reserves and recoveries (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Loss Contingencies [Line Items]
Asbestos-related liabilities	$ 12	$ 13
Maremont Asbestos
Loss Contingencies [Line Items]
Pending and future claims	70	70
Billed but unpaid claims	3	2
Asbestos-related liabilities	73	72
Asbestos-related insurance recoveries	31	32
Rockwell Asbestos
Loss Contingencies [Line Items]
Pending and future claims	60	60
Billed but unpaid claims	2	1
Asbestos-related liabilities	62	61
Asbestos-related insurance recoveries	$ 27	$ 27

Shareholders' Equity - Equity a

Shareholders' Equity - Equity and equity-linked repurchase authorizations (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Jul. 21, 2016
Class of Stock [Line Items]
Repurchase of common stock		$ 43,000,000
Debt Securities
Class of Stock [Line Items]
Debt repurchase program, amount authorized			$ 150,000,000
Common Stock
Class of Stock [Line Items]
Authorized repurchase of securities, with debt reduction target			$ 100,000,000
Repurchase of common stock	$ 0

Shareholders' Equity - Schedule

Shareholders' Equity - Schedule of accumulated other comprehensive loss (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	$ (809)	$ (766)
Other comprehensive income (loss) before reclassification	(26)	(3)
Amounts reclassified from accumulated other comprehensive loss - net of tax	10	9
Net current-period other comprehensive income (loss)	(16)	6
Ending balance	(825)	(760)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	(66)	(54)
Other comprehensive income (loss) before reclassification	(28)	(6)
Amounts reclassified from accumulated other comprehensive loss - net of tax	0	0
Net current-period other comprehensive income (loss)	(28)	(6)
Ending balance	(94)	(60)
Employee Benefit Related Adjustments
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	(740)	(705)
Other comprehensive income (loss) before reclassification	1	0
Amounts reclassified from accumulated other comprehensive loss - net of tax	10	9
Net current-period other comprehensive income (loss)	11	9
Ending balance	(729)	(696)
Unrealized Loss, net of tax
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward]
Beginning balance	(3)	(7)
Other comprehensive income (loss) before reclassification	1	3
Amounts reclassified from accumulated other comprehensive loss - net of tax	0	0
Net current-period other comprehensive income (loss)	1	3
Ending balance	$ (2)	$ (4)

Shareholders' Equity - Reclassi

Shareholders' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	$ 10	$ 9
Employee Benefit Related Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	10	9
Amount Reclassified from Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	10
Amount Reclassified from Accumulated Other Comprehensive Income | Employee Benefit Related Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Prior service costs	(1)
Amount Reclassified from Accumulated Other Comprehensive Income | Actuarial losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	11	9
Amount Reclassified from Accumulated Other Comprehensive Income | Employee Benefit Related Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	10	9
Tax expense	$ 0	0
Total reclassifications for the period		$ 9

Business Segment Information -

Business Segment Information - Summary of Segment Information (Details) $ in Millions	3 Months Ended
	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	2
Total Sales	$ 699	$ 809
Commercial Truck & Industrial
Segment Reporting Information [Line Items]
Total Sales	521	613
Aftermarket & Trailer
Segment Reporting Information [Line Items]
Total Sales	178	196
Operating Segments | Commercial Truck & Industrial
Segment Reporting Information [Line Items]
Total Sales	539	633
Operating Segments | Aftermarket & Trailer
Segment Reporting Information [Line Items]
Total Sales	184	203
Eliminations
Segment Reporting Information [Line Items]
Total Sales	(24)	(27)
Eliminations | Commercial Truck & Industrial
Segment Reporting Information [Line Items]
Total Sales	18	20
Eliminations | Aftermarket & Trailer
Segment Reporting Information [Line Items]
Total Sales	$ 6	$ 7

Business Segment Information 92

Business Segment Information - Segment Income Attributable to Parent (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Interest expense, net	$ (21)	$ (22)
Provision for income taxes	(6)	(7)
Depreciation and amortization	(17)	(15)
Noncontrolling interests	(1)	(1)
Asset impairment charges	(3)	0
Restructuring costs	0	(1)
Net income from continuing operations	15	28
Operating Segments
Segment Reporting Information [Line Items]
Segment EBITDA	64	72
Operating Segments | Commercial Truck & Industrial
Segment Reporting Information [Line Items]
Segment EBITDA	42	52
Operating Segments | Aftermarket & Trailer
Segment Reporting Information [Line Items]
Segment EBITDA	22	20
Segment Reconciling Items
Segment Reporting Information [Line Items]
Unallocated legacy and corporate costs, net	0	4
Interest expense, net	(21)	(22)
Provision for income taxes	(6)	(7)
Depreciation and amortization	(17)	(15)
Noncontrolling interests	(1)	(1)
Loss on sale of receivables	(1)	(2)
Asset impairment charges	(3)	0
Restructuring costs	$ 0	$ (1)

Business Segment Information 93

Business Segment Information - Schedule of Segment Assets (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Segment Reporting Information [Line Items]
Total assets	$ 2,394	$ 2,494
Operating Segments
Segment Reporting Information [Line Items]
Total assets	1,838	1,869
Operating Segments | Commercial Truck & Industrial
Segment Reporting Information [Line Items]
Total assets	1,414	1,433
Operating Segments | Aftermarket & Trailer
Segment Reporting Information [Line Items]
Total assets	424	436
Corporate
Segment Reporting Information [Line Items]
Total assets	805	845
Segment Reconciling Items
Segment Reporting Information [Line Items]
Less: Accounts receivable sold under off-balance sheet factoring programs	$ (249)	$ (220)

Supplemental Guarantor Conden94

Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Condensed Financial Statements, Captions [Line Items]
Parent's total ownership, percentage	100.00%
Parent
Condensed Financial Statements, Captions [Line Items]
Pension and retiree benefits, parent obligation	$ 697,000,000		$ 708,000,000
Proceeds from investment in subsidiary	0	$ 0
Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Debt and capital lease obligations, subsidiary portion	$ 20,000,000		$ 24,000,000

Supplemental Guarantor Conden95

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales
Sales	$ 699	$ 809
Cost of sales	(610)	(705)
GROSS MARGIN	89	104
Selling, general and administrative	(53)	(56)
Restructuring costs	0	(1)
Other operating income (expense), net	(3)	0
OPERATING INCOME	33	47
Other income (expense), net	0	1
Equity in earnings of affiliates	10	10
Interest income (expense), net	(21)	(22)
INCOME BEFORE INCOME TAXES	22	36
Provision for income taxes	(6)	(7)
Equity income (loss) from continuing operations of subsidiaries	0	0
INCOME (LOSS) FROM CONTINUING OPERATIONS	16	29
LOSS FROM DISCONTINUED OPERATIONS, net of tax	0	(2)
NET INCOME	16	27
Less: Net income attributable to noncontrolling interests	(1)	(1)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	15	26
Elims
Sales
Sales	(38)	(43)
Cost of sales	38	43
GROSS MARGIN	0	0
Selling, general and administrative	0	0
Restructuring costs	0	0
Other operating income (expense), net	0
OPERATING INCOME	0	0
Other income (expense), net	0	0
Equity in earnings of affiliates	0	0
Interest income (expense), net	0	0
INCOME BEFORE INCOME TAXES	0	0
Provision for income taxes	0	0
Equity income (loss) from continuing operations of subsidiaries	(92)	(121)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(92)	(121)
LOSS FROM DISCONTINUED OPERATIONS, net of tax	0	6
NET INCOME	(92)	(115)
Less: Net income attributable to noncontrolling interests	0	0
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	(92)	(115)
Parent
Sales
Sales	0	0
Parent | Reportable Legal Entities
Sales
Sales	0	0
Cost of sales	(14)	(14)
GROSS MARGIN	(14)	(14)
Selling, general and administrative	(23)	(20)
Restructuring costs	2	0
Other operating income (expense), net	0
OPERATING INCOME	(35)	(34)
Other income (expense), net	(1)	(1)
Equity in earnings of affiliates	0	0
Interest income (expense), net	(33)	(31)
INCOME BEFORE INCOME TAXES	(69)	(66)
Provision for income taxes	20	0
Equity income (loss) from continuing operations of subsidiaries	64	94
INCOME (LOSS) FROM CONTINUING OPERATIONS	15	28
LOSS FROM DISCONTINUED OPERATIONS, net of tax	0	(2)
NET INCOME	15	26
Less: Net income attributable to noncontrolling interests	0	0
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	15	26
Parent | Elims
Sales
Sales	0	0
Guarantors
Sales
Sales	325	417
Guarantors | Reportable Legal Entities
Sales
Sales	351	444
Cost of sales	(297)	(377)
GROSS MARGIN	54	67
Selling, general and administrative	(18)	(21)
Restructuring costs	0	0
Other operating income (expense), net	0
OPERATING INCOME	36	46
Other income (expense), net	0	0
Equity in earnings of affiliates	9	9
Interest income (expense), net	10	8
INCOME BEFORE INCOME TAXES	55	63
Provision for income taxes	(20)	0
Equity income (loss) from continuing operations of subsidiaries	28	27
INCOME (LOSS) FROM CONTINUING OPERATIONS	63	90
LOSS FROM DISCONTINUED OPERATIONS, net of tax	0	(3)
NET INCOME	63	87
Less: Net income attributable to noncontrolling interests	0	0
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	63	87
Guarantors | Elims
Sales
Sales	26	27
Non- Guarantors
Sales
Sales	374	392
Non- Guarantors | Reportable Legal Entities
Sales
Sales	386	408
Cost of sales	(337)	(357)
GROSS MARGIN	49	51
Selling, general and administrative	(12)	(15)
Restructuring costs	(2)	(1)
Other operating income (expense), net	(3)
OPERATING INCOME	32	35
Other income (expense), net	1	2
Equity in earnings of affiliates	1	1
Interest income (expense), net	2	1
INCOME BEFORE INCOME TAXES	36	39
Provision for income taxes	(6)	(7)
Equity income (loss) from continuing operations of subsidiaries	0	0
INCOME (LOSS) FROM CONTINUING OPERATIONS	30	32
LOSS FROM DISCONTINUED OPERATIONS, net of tax	0	(3)
NET INCOME	30	29
Less: Net income attributable to noncontrolling interests	(1)	(1)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	29	28
Non- Guarantors | Elims
Sales
Sales	$ 12	$ 16

Supplemental Guarantor Conden96

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Condensed Statement of Income Captions [Line Items]
Net income	$ 16	$ 27
Other comprehensive income (loss)	(18)	6
Total comprehensive income (loss)	(2)	33
Less: Comprehensive income attributable to noncontrolling interests	1	(1)
Comprehensive income (loss) attributable to Meritor, Inc.	(1)	32
Elims
Condensed Statement of Income Captions [Line Items]
Net income	(92)	(115)
Other comprehensive income (loss)	23	3
Total comprehensive income (loss)	(69)	(112)
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income (loss) attributable to Meritor, Inc.	(69)	(112)
Parent | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income	15	26
Other comprehensive income (loss)	(16)	6
Total comprehensive income (loss)	(1)	32
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income (loss) attributable to Meritor, Inc.	(1)	32
Guarantors | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income	63	87
Other comprehensive income (loss)	2	(11)
Total comprehensive income (loss)	65	76
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income (loss) attributable to Meritor, Inc.	65	76
Non- Guarantors | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income	30	29
Other comprehensive income (loss)	(27)	8
Total comprehensive income (loss)	3	37
Less: Comprehensive income attributable to noncontrolling interests	1	(1)
Comprehensive income (loss) attributable to Meritor, Inc.	$ 4	$ 36

Supplemental Guarantor Conden97

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions		Dec. 31, 2016		Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents		$ 125	[1]	$ 160	[1]	$ 128	$ 193
Receivables trade and other, net	[1]	332		396
Inventories	[1]	334		316
Other current assets		40		33
TOTAL CURRENT ASSETS		831		905
NET PROPERTY	[1]	423		439
GOODWILL	[1]	383		390
OTHER ASSETS		757		760
INVESTMENTS IN SUBSIDIARIES		0		0
TOTAL ASSETS		2,394		2,494
CURRENT LIABILITIES:
Short-term debt		11		14
Accounts and notes payable	[1]	430		475
Other current liabilities		236		268
TOTAL CURRENT LIABILITIES		677		757
LONG-TERM DEBT		983		982
RETIREMENT BENEFITS		691		703
INTERCOMPANY PAYABLE (RECEIVABLE)		0		0
OTHER LIABILITIES		228		238
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.		(209)		(211)
NONCONTROLLING INTERESTS	[1]	24		25
TOTAL LIABILITIES AND DEFICIT		2,394		2,494
ASSETS, LIABILITIES, AND EQUITY HELD-FOR-SALE
Cash and cash equivalents		2		1
Receivables, trade and other, net		6		8
Inventories		1		1
Goodwill		1
Net property				3
Accounts and notes payable		5		5
Noncontrolling interests		2		3
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		(3,308)		(3,254)
TOTAL ASSETS		(3,308)		(3,254)
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.		(3,308)		(3,254)
NONCONTROLLING INTERESTS		0		0
TOTAL LIABILITIES AND DEFICIT		(3,308)		(3,254)
Parent | Reportable Legal Entities
CURRENT ASSETS:
Cash and cash equivalents		65		90		10	73
Receivables trade and other, net		1		1
Inventories		0		0
Other current assets		7		5
TOTAL CURRENT ASSETS		73		96
NET PROPERTY		22		22
GOODWILL		0		0
OTHER ASSETS		448		447
INVESTMENTS IN SUBSIDIARIES		2,633		2,575
TOTAL ASSETS		3,176		3,140
CURRENT LIABILITIES:
Short-term debt		1		1
Accounts and notes payable		16		42
Other current liabilities		81		90
TOTAL CURRENT LIABILITIES		98		133
LONG-TERM DEBT		973		971
RETIREMENT BENEFITS		670		680
INTERCOMPANY PAYABLE (RECEIVABLE)		1,613		1,534
OTHER LIABILITIES		31		34
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.		(209)		(212)
NONCONTROLLING INTERESTS		0		0
TOTAL LIABILITIES AND DEFICIT		3,176		3,140
Guarantors | Reportable Legal Entities
CURRENT ASSETS:
Cash and cash equivalents		4		4		20	6
Receivables trade and other, net		32		39
Inventories		155		143
Other current assets		13		12
TOTAL CURRENT ASSETS		204		198
NET PROPERTY		197		198
GOODWILL		219		219
OTHER ASSETS		133		132
INVESTMENTS IN SUBSIDIARIES		675		679
TOTAL ASSETS		1,428		1,426
CURRENT LIABILITIES:
Short-term debt		3		4
Accounts and notes payable		171		172
Other current liabilities		65		74
TOTAL CURRENT LIABILITIES		239		250
LONG-TERM DEBT		2		3
RETIREMENT BENEFITS		0		0
INTERCOMPANY PAYABLE (RECEIVABLE)		(1,803)		(1,768)
OTHER LIABILITIES		155		162
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.		2,835		2,779
NONCONTROLLING INTERESTS		0		0
TOTAL LIABILITIES AND DEFICIT		1,428		1,426
Non- Guarantors | Reportable Legal Entities
CURRENT ASSETS:
Cash and cash equivalents		56		66		$ 98	$ 114
Receivables trade and other, net		299		356
Inventories		179		173
Other current assets		20		16
TOTAL CURRENT ASSETS		554		611
NET PROPERTY		204		219
GOODWILL		164		171
OTHER ASSETS		176		181
INVESTMENTS IN SUBSIDIARIES		0		0
TOTAL ASSETS		1,098		1,182
CURRENT LIABILITIES:
Short-term debt		7		9
Accounts and notes payable		243		261
Other current liabilities		90		104
TOTAL CURRENT LIABILITIES		340		374
LONG-TERM DEBT		8		8
RETIREMENT BENEFITS		21		23
INTERCOMPANY PAYABLE (RECEIVABLE)		190		234
OTHER LIABILITIES		42		42
EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC.		473		476
NONCONTROLLING INTERESTS		24		25
TOTAL LIABILITIES AND DEFICIT		$ 1,098		$ 1,182
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.

Supplemental Guarantor Conden98

Supplemental Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016		Dec. 31, 2015
Condensed Cash Flow Statements, Captions [Line Items]
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	$ (14)		$ (5)
INVESTING ACTIVITIES
Capital expenditures	(17)		(22)
Other investing activities	0		1
Net investing cash flows provided by discontinued operations	2		3
CASH USED FOR INVESTING ACTIVITIES	(15)		(18)
FINANCING ACTIVITIES
Repurchase of Common Stock	0		(43)
Intercompany advances	0		0
Other financing activities	(4)		1
CASH USED FOR FINANCING ACTIVITIES	(4)		(42)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(2)		0
CHANGE IN CASH AND CASH EQUIVALENTS	(35)		(65)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	160	[1]	193
CASH AND CASH EQUIVALENTS AT END OF PERIOD	125	[1]	128
Elims
Condensed Cash Flow Statements, Captions [Line Items]
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	0		0
INVESTING ACTIVITIES
Capital expenditures	0		0
Other investing activities			0
Net investing cash flows provided by discontinued operations	0		0
CASH USED FOR INVESTING ACTIVITIES	0		0
FINANCING ACTIVITIES
Repurchase of Common Stock			0
Intercompany advances	0		0
Other financing activities	0		0
CASH 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
Condensed Cash Flow Statements, Captions [Line Items]
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	(44)		(53)
INVESTING ACTIVITIES
Capital expenditures	(5)		(7)
Other investing activities			0
Net investing cash flows provided by discontinued operations	0		0
CASH USED FOR INVESTING ACTIVITIES	(5)		(7)
FINANCING ACTIVITIES
Repurchase of Common Stock			(43)
Intercompany advances	24		40
Other financing activities	0		0
CASH USED FOR FINANCING ACTIVITIES	24		(3)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	0		0
CHANGE IN CASH AND CASH EQUIVALENTS	(25)		(63)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	90		73
CASH AND CASH EQUIVALENTS AT END OF PERIOD	65		10
Guarantors | Reportable Legal Entities
Condensed Cash Flow Statements, Captions [Line Items]
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	6		21
INVESTING ACTIVITIES
Capital expenditures	(7)		(8)
Other investing activities			2
Net investing cash flows provided by discontinued operations	2		0
CASH USED FOR INVESTING ACTIVITIES	(5)		(6)
FINANCING ACTIVITIES
Repurchase of Common Stock			0
Intercompany advances	0		0
Other financing activities	(1)		(1)
CASH USED FOR FINANCING ACTIVITIES	(1)		(1)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	0		0
CHANGE IN CASH AND CASH EQUIVALENTS	0		14
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	4		6
CASH AND CASH EQUIVALENTS AT END OF PERIOD	4		20
Non- Guarantors | Reportable Legal Entities
Condensed Cash Flow Statements, Captions [Line Items]
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES	24		27
INVESTING ACTIVITIES
Capital expenditures	(5)		(7)
Other investing activities			(1)
Net investing cash flows provided by discontinued operations	0		3
CASH USED FOR INVESTING ACTIVITIES	(5)		(5)
FINANCING ACTIVITIES
Repurchase of Common Stock			0
Intercompany advances	(24)		(40)
Other financing activities	(3)		2
CASH USED FOR FINANCING ACTIVITIES	(27)		(38)
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(2)		0
CHANGE IN CASH AND CASH EQUIVALENTS	(10)		(16)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	66		114
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 56		$ 98
[1]	As of December 31, 2016, Assets and Liabilities held for sale were: (i) $2 million Cash and cash equivalents; (ii) $6 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $1 million Goodwill; (v) $5 million Accounts and notes payable; and (vi) $2 million Noncontrolling interests. As of September 30, 2016, Assets and Liabilities held for sale were: (i) $1 million Cash and cash equivalents; (ii) $8 million Receivables, trade and other, net; (iii) $1 million Inventories; (iv) $3 million Net property; (v) $5 million Accounts and notes payable; and (vi) $3 million Noncontrolling interests.