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Business Segment Information
 9 Months Ended
Jun. 30, 2020
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.
In the third quarter of fiscal year 2020, the company realigned its operations resulting in a change to its operating and reportable segments. As of the third quarter of fiscal year 2020, the reportable segments are (1) Commercial Truck and (2) Aftermarket and Industrial. Prior year reportable segment financial results have been recast for these changes.
The company has two reportable segments at June 30, 2020, as follows:
•The Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, primarily for medium- and heavy-duty trucks and other applications in North America, South America, Europe and Asia Pacific. It also supplies a variety of undercarriage products and systems for trailer applications in North America. This segment includes our aftermarket businesses in Asia Pacific and South America.
•The Aftermarket and Industrial segment supplies axles, brakes, drivelines, suspension parts and other replacement parts to commercial vehicle and industrial aftermarket customers, primarily in North America and Europe. In addition, this segment supplies drivetrain systems and certain components, including axles, drivelines, brakes and suspension systems for military, construction, bus and coach, fire and emergency and other applications in North America and Europe.
Segment adjusted 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, asset impairment charges and other special items as determined by management. Segment adjusted EBITDA excludes unallocated legacy and corporate income (expense), net. The company uses segment adjusted 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 adjusted 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 TruckAftermarket and IndustrialEliminationsTotal
Three Months Ended June 30, 2020
External Sales$315  $199  $—  $514  
Intersegment Sales21  4  (25) —  
Total Sales$336  $203  $(25) $514  
Three Months Ended June 30, 2019 (1)
External Sales$890  $276  $—  $1,166  
Intersegment Sales35  6  (41) —  
Total Sales$925  $282  $(41) $1,166  


Commercial TruckAftermarket and IndustrialEliminationsTotal
Nine Months Ended June 30, 2020
External Sales$1,544  $742  $—  $2,286  
Intersegment Sales86  13  (99) —  
Total Sales$1,630  $755  $(99) $2,286  
Nine Months Ended June 30, 2019 (1)
External Sales$2,564  $796  $—  $3,360  
Intersegment Sales114  15  (129) —  
Total Sales$2,678  $811  $(129) $3,360  
(1) Amounts for the three and nine months ended June 30, 2019 have been recast to reflect reportable segment changes.
Three Months Ended June 30,Nine Months Ended June 30,
2020
2019 (3)
2020
2019 (3)
Segment adjusted EBITDA:
Commercial Truck$(23) $97  $92  $270  
Aftermarket and Industrial31  50  116  134  
Segment adjusted EBITDA8  147  208  404  
Unallocated legacy and corporate expense, net (1)
(1) (1) 4  —  
Interest expense, net(17) (14) (47) (43) 
Benefit (provision) for income taxes13  (21) (73) (69) 
Depreciation and amortization(24) (21) (74) (64) 
Noncontrolling interests(2) (3) (5) (7) 
Loss on sale of receivables(1) (2) (3) (5) 
Asset impairment charges—  (1) —  (1) 
Restructuring(12) 1  (27) 2  
Transaction costs—  —  (5) —  
Income from WABCO distribution termination—  —  265  —  
Asbestos related liability remeasurement (2)
—  —  —  31  
 Income (loss) from continuing operations attributable to Meritor, Inc.$(36) $85  $243  $248  
(1) Unallocated legacy and corporate income (expense), 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.
(2) The nine months ended June 30, 2019 includes $31 million related to the remeasurement of the Maremont asbestos liability based on the Maremont prepackaged plan of reorganization.
(3) Amounts for the three and nine months ended June 30, 2019 have been recast to reflect reportable segment changes.

June 30,
2020
September 30, 2019 (3)
Segment Assets:
Commercial Truck$1,579  $1,745  
Aftermarket and Industrial658  729  
Total segment assets2,237  2,474  
Corporate (1)
761  567  
Less: Accounts receivable sold under off-balance sheet factoring programs (2)
(126) (226) 
Total assets$2,872  $2,815  
(1) Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs.
(2) At June 30, 2020 and September 30, 2019, segment assets include $126 million and $226 million, respectively, of accounts receivable sold under off-balance sheet accounts receivable factoring programs (see Note 10). These sold receivables are included in segment assets as the CODM reviews segment assets inclusive of these balances.
(3) Amounts as of September 30, 2019 have been recast to reflect reportable segment changes, including the reallocation of goodwill..