| Supplemental Guarantor Condensed Consolidating Financial Statements |
Supplemental Guarantor Condensed Consolidating Financial Statements Article 3-10 of Regulation S-X (S-X Rule 3-10) requires that separate financial information for issuers and guarantors of registered securities be filed in certain circumstances. Certain of the company's 100% owned subsidiaries, as defined in the credit agreement (the Guarantors), irrevocably and unconditionally guarantee amounts outstanding under the senior secured revolving credit facility. Similar subsidiary guarantees were provided for the benefit of the holders of the notes outstanding under the company's indentures (see Note 16). Schedule I of Article 5-04 of Regulation S-X (S-X Rule 5-04) requires that condensed financial information of the registrant (Parent) be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. In lieu of providing separate audited financial statements for the Parent and Guarantors, the company has included the accompanying condensed consolidating financial statements as permitted by S-X Rules 3-10 and 5-04. These condensed consolidating financial statements are presented on the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Parent's share of the subsidiary's cumulative results of operations, capital contributions and distribution and other equity changes. The Guarantors are combined in the condensed consolidated financial statements. Certain subsidiaries in China and India are restricted by law from transfer of cash by dividends, loans or advances to Parent, which exceeded 25 percent of consolidated net assets of Parent as of September 30, 2014. As of March 31, 2015, the company’s proportionate share of net assets restricted from transfer by law was $31 million. | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2015 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | Sales | | | | | | | | | | External | $ | — |
| | $ | 418 |
| | $ | 446 |
| | $ | — |
| | $ | 864 |
| Subsidiaries | — |
| | 31 |
| | 17 |
| | (48 | ) | | — |
| Total sales | — |
| | 449 |
| | 463 |
| | (48 | ) | | 864 |
| Cost of sales | (10 | ) | | (380 | ) | | (407 | ) | | 48 |
| | (749 | ) | GROSS MARGIN | (10 | ) | | 69 |
| | 56 |
| | — |
| | 115 |
| Selling, general and administrative | (16 | ) | | (26 | ) | | (15 | ) | | — |
| | (57 | ) | Restructuring costs | (1 | ) | | — |
| | (2 | ) | | — |
| | (3 | ) | Other operating income | — |
| | — |
| | — |
| | — |
| | — |
| OPERATING INCOME (LOSS) | (27 | ) | | 43 |
| | 39 |
| | — |
| | 55 |
| Other income, net | 37 |
| | (9 | ) | | (26 | ) | | — |
| | 2 |
| Equity in earnings of affiliates | — |
| | 8 |
| | 1 |
| | — |
| | 9 |
| Interest income (expense), net | (29 | ) | | 6 |
| | 2 |
| | — |
| | (21 | ) | INCOME (LOSS) BEFORE INCOME TAXES | (19 | ) | | 48 |
| | 16 |
| | — |
| | 45 |
| Provision for income taxes | (1 | ) | | — |
| | (5 | ) | | — |
| | (6 | ) | Equity income from continuing operations of subsidiaries | 59 |
| | 8 |
| | — |
| | (67 | ) | | — |
| INCOME FROM CONTINUING OPERATIONS | 39 |
| | 56 |
| | 11 |
| | (67 | ) | | 39 |
| INCOME FROM DISCONTINUED OPERATIONS, net of tax | 4 |
| | 5 |
| | 3 |
| | (8 | ) | | 4 |
| NET INCOME | 43 |
| | 61 |
| | 14 |
| | (75 | ) | | 43 |
| Less: Net income attributable to noncontrolling interests | — |
| | — |
| | — |
| | — |
| | — |
| NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 43 |
| | $ | 61 |
| | $ | 14 |
| | $ | (75 | ) | | $ | 43 |
|
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2015 | | Parent | | Guarantors | | Non-
Guarantors | | Elims | | Consolidated | Net income | $ | 43 |
| | $ | 61 |
| | $ | 14 |
| | $ | (75 | ) | | $ | 43 |
| Other comprehensive income (loss) | (22 | ) | | (65 | ) | | 27 |
| | 38 |
| | (22 | ) | Total comprehensive income (loss) | 21 |
| | (4 | ) | | 41 |
| | (37 | ) | | 21 |
| Less: Comprehensive income attributable to
noncontrolling interests | — |
| | — |
| | — |
| | — |
| | — |
| Comprehensive income (loss) attributable to Meritor, Inc. | $ | 21 |
| | $ | (4 | ) | | $ | 41 |
| | $ | (37 | ) | | $ | 21 |
|
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2014 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | Sales | | | | | | | | | | External | $ | — |
| | $ | 348 |
| | $ | 606 |
| | $ | — |
| | $ | 954 |
| Subsidiaries | — |
| | 33 |
| | 15 |
| | (48 | ) | | — |
| Total sales | — |
| | 381 |
| | 621 |
| | (48 | ) | | 954 |
| Cost of sales | (13 | ) | | (326 | ) | | (545 | ) | | 48 |
| | (836 | ) | GROSS MARGIN | (13 | ) | | 55 |
| | 76 |
| | — |
| | 118 |
| Selling, general and administrative | (23 | ) | | (22 | ) | | (21 | ) | | — |
| | (66 | ) | Restructuring costs | (1 | ) | | — |
| | (1 | ) | | — |
| | (2 | ) | OPERATING INCOME (LOSS) | (37 | ) | | 33 |
| | 54 |
| | — |
| | 50 |
| Other income (loss), net | 39 |
| | (8 | ) | | (31 | ) | | — |
| | — |
| Equity in earnings of affiliates | — |
| | 6 |
| | 3 |
| | — |
| | 9 |
| Interest income (expense), net | (54 | ) | | 8 |
| | (2 | ) | | — |
| | (48 | ) | INCOME (LOSS) BEFORE INCOME TAXES | (52 | ) | | 39 |
| | 24 |
| | — |
| | 11 |
| Provision for income taxes | — |
| | 1 |
| | (9 | ) | | — |
| | (8 | ) | Equity income from continuing operations of subsidiaries | 53 |
| | 10 |
| | — |
| | (63 | ) | | — |
| INCOME FROM CONTINUING OPERATIONS | 1 |
| | 50 |
| | 15 |
| | (63 | ) | | 3 |
| INCOME FROM DISCONTINUED OPERATIONS, net of tax | — |
| | — |
| | — |
| | — |
| | — |
| NET INCOME | 1 |
| | 50 |
| | 15 |
| | (63 | ) | | 3 |
| Less: Net income attributable to noncontrolling interests | — |
| | — |
| | (2 | ) | | — |
| | (2 | ) | NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 1 |
| | $ | 50 |
| | $ | 13 |
| | $ | (63 | ) | | $ | 1 |
|
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2014 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | Net income | $ | 1 |
| | $ | 50 |
| | $ | 15 |
| | $ | (63 | ) | | $ | 3 |
| Other comprehensive income | 22 |
| | 5 |
| | 11 |
| | (16 | ) | | 22 |
| Total comprehensive income | 23 |
| | 55 |
| | 26 |
| | (79 | ) | | 25 |
| Less: Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | (2 | ) | | — |
| | (2 | ) | Comprehensive income attributable to Meritor, Inc. | $ | 23 |
| | $ | 55 |
| | $ | 24 |
| | $ | (79 | ) | | $ | 23 |
|
| | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2015 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | Sales | | | | | | | | | | External | $ | — |
| | $ | 821 |
| | $ | 922 |
| | $ | — |
| | $ | 1,743 |
| Subsidiaries | — |
| | 61 |
| | 33 |
| | (94 | ) | | — |
| Total sales | — |
| | 882 |
| | 955 |
| | (94 | ) | | 1,743 |
| Cost of sales | (24 | ) | | (751 | ) | | (832 | ) | | 94 |
| | (1,513 | ) | GROSS MARGIN | (24 | ) | | 131 |
| | 123 |
| | — |
| | 230 |
| Selling, general and administrative | (34 | ) | | (54 | ) | | (34 | ) | | — |
| | (122 | ) | Restructuring costs | (1 | ) | | (3 | ) | | (2 | ) | | — |
| | (6 | ) | Other operating income | — |
| | — |
| | 1 |
| | — |
| | 1 |
| OPERATING INCOME (LOSS) | (59 | ) | | 74 |
| | 88 |
| | — |
| | 103 |
| Other income, net | 37 |
| | (9 | ) | | (24 | ) | | — |
| | 4 |
| Equity in earnings of affiliates | — |
| | 15 |
| | 3 |
| | — |
| | 18 |
| Interest income (expense), net | (58 | ) | | 13 |
| | 5 |
| | — |
| | (40 | ) | INCOME (LOSS) BEFORE INCOME TAXES | (80 | ) | | 93 |
| | 72 |
| | — |
| | 85 |
| Provision for income taxes | (1 | ) | | — |
| | (12 | ) | | — |
| | (13 | ) | Equity income from continuing operations of subsidiaries | 152 |
| | 53 |
| | — |
| | (205 | ) | | — |
| INCOME FROM CONTINUING OPERATIONS | 71 |
| | 146 |
| | 60 |
| | (205 | ) | | 72 |
| INCOME FROM DISCONTINUED OPERATIONS, net of tax | 1 |
| | 2 |
| | — |
| | (2 | ) | | 1 |
| NET INCOME | 72 |
| | 148 |
| | 60 |
| | (207 | ) | | 73 |
| Less: Net income attributable to noncontrolling interests | — |
| | — |
| | (1 | ) | | — |
| | (1 | ) | NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 72 |
| | $ | 148 |
| | $ | 59 |
| | $ | (207 | ) | | $ | 72 |
|
| | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2015 | | Parent | | Guarantors | | Non-
Guarantors | | Elims | | Consolidated | Net income | $ | 72 |
| | $ | 148 |
| | $ | 60 |
| | $ | (207 | ) | | $ | 73 |
| Other comprehensive income (loss) | (44 | ) | | (92 | ) | | 18 |
| | 73 |
| | (45 | ) | Total comprehensive income | 28 |
| | 56 |
| | 78 |
| | (134 | ) | | 28 |
| Less: Comprehensive income attributable to
noncontrolling interests | — |
| | — |
| | — |
| | — |
| | — |
| Comprehensive income attributable to Meritor, Inc. | $ | 28 |
| | $ | 56 |
| | $ | 78 |
| | $ | (134 | ) | | $ | 28 |
|
| | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2014 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | Sales | | | | | | | | | | External | $ | — |
| | $ | 657 |
| | $ | 1,197 |
| | $ | — |
| | $ | 1,854 |
| Subsidiaries | — |
| | 66 |
| | 29 |
| | (95 | ) | | — |
| Total sales | — |
| | 723 |
| | 1,226 |
| | (95 | ) | | 1,854 |
| Cost of sales | (26 | ) | | (623 | ) | | (1,077 | ) | | 95 |
| | (1,631 | ) | GROSS MARGIN | (26 | ) | | 100 |
| | 149 |
| | — |
| | 223 |
| Selling, general and administrative | (40 | ) | | (45 | ) | | (40 | ) | | — |
| | (125 | ) | Restructuring costs | (1 | ) | | — |
| | (2 | ) | | — |
| | (3 | ) | Other operating expense | — |
| | (1 | ) | | — |
| | — |
| | (1 | ) | OPERATING INCOME (LOSS) | (67 | ) | | 54 |
| | 107 |
| | — |
| | 94 |
| Other income (loss), net | 39 |
| | (8 | ) | | (31 | ) | | — |
| | — |
| Equity in earnings of affiliates | — |
| | 12 |
| | 5 |
| | — |
| | 17 |
| Interest income (expense), net | (88 | ) | | 17 |
| | (4 | ) | | — |
| | (75 | ) | INCOME (LOSS) BEFORE INCOME TAXES | (116 | ) | | 75 |
| | 77 |
| | — |
| | 36 |
| Provision for income taxes | — |
| | (1 | ) | | (18 | ) | | — |
| | (19 | ) | Equity income from continuing operations of subsidiaries | 129 |
| | 48 |
| | — |
| | (177 | ) | | — |
| INCOME FROM CONTINUING OPERATIONS | 13 |
| | 122 |
| | 59 |
| | (177 | ) | | 17 |
| LOSS FROM DISCONTINUED OPERATIONS, net of tax | (1 | ) | | (1 | ) | | (1 | ) | | 2 |
| | (1 | ) | NET INCOME | 12 |
| | 121 |
| | 58 |
| | (175 | ) | | 16 |
| Less: Net income attributable to noncontrolling interests | — |
| | — |
| | (4 | ) | | — |
| | (4 | ) | NET INCOME ATTRIBUTABLE TO MERITOR, INC. | $ | 12 |
| | $ | 121 |
| | $ | 54 |
| | $ | (175 | ) | | $ | 12 |
|
| | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2014 | | Parent | | Guarantors | | Non-
Guarantors | | Elims | | Consolidated | Net income | $ | 12 |
| | $ | 121 |
| | $ | 58 |
| | $ | (175 | ) | | $ | 16 |
| Other comprehensive income | 22 |
| | 10 |
| | — |
| | (10 | ) | | 22 |
| Total comprehensive income | 34 |
| | 131 |
| | 58 |
| | (185 | ) | | 38 |
| Less: Comprehensive income attributable to
noncontrolling interests | — |
| | — |
| | (4 | ) | | — |
| | (4 | ) | Comprehensive income attributable to Meritor, Inc. | $ | 34 |
| | $ | 131 |
| | $ | 54 |
| | $ | (185 | ) | | $ | 34 |
|
| | | | | | | | | | | | | | | | | | | | | | March 31, 2015 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | CURRENT ASSETS: | | | | | | | | | | Cash and cash equivalents | $ | 99 |
| | $ | 4 |
| | $ | 104 |
| | $ | — |
| | $ | 207 |
| Receivables trade and other, net | 1 |
| | 43 |
| | 501 |
| | — |
| | 545 |
| Inventories | — |
| | 164 |
| | 201 |
| | — |
| | 365 |
| Other current assets | 9 |
| | 18 |
| | 28 |
| | — |
| | 55 |
| TOTAL CURRENT ASSETS | 109 |
| | 229 |
| | 834 |
| | — |
| | 1,172 |
| NET PROPERTY | 13 |
| | 153 |
| | 221 |
| | — |
| | 387 |
| GOODWILL | — |
| | 278 |
| | 136 |
| | — |
| | 414 |
| OTHER ASSETS | 76 |
| | 125 |
| | 143 |
| | — |
| | 344 |
| INVESTMENTS IN SUBSIDIARIES | 2,230 |
| | 341 |
| | — |
| | (2,571 | ) | | — |
| TOTAL ASSETS | $ | 2,428 |
| | $ | 1,126 |
| | $ | 1,334 |
| | $ | (2,571 | ) | | $ | 2,317 |
| CURRENT LIABILITIES: | | | | | | | | | | Short-term debt | $ | 1 |
| | $ | 3 |
| | $ | 1 |
| | $ | — |
| | $ | 5 |
| Accounts and notes payable | 48 |
| | 227 |
| | 343 |
| | — |
| | 618 |
| Other current liabilities | 98 |
| | 65 |
| | 118 |
| | — |
| | 281 |
| TOTAL CURRENT LIABILITIES | 147 |
| | 295 |
| | 462 |
| | — |
| | 904 |
| LONG-TERM DEBT | 907 |
| | 9 |
| | 29 |
| | — |
| | 945 |
| RETIREMENT BENEFITS | 636 |
| | — |
| | 101 |
| | — |
| | 737 |
| INTERCOMPANY PAYABLE (RECEIVABLE) | 1,287 |
| | (1,705 | ) | | 418 |
| |
|
| | — |
| OTHER LIABILITIES | 47 |
| | 211 |
| | 43 |
| | — |
| | 301 |
| EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | (596 | ) | | 2,316 |
| | 255 |
| | (2,571 | ) | | (596 | ) | NONCONTROLLING INTERESTS | — |
| | — |
| | 26 |
| | — |
| | 26 |
| TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | 2,428 |
| | $ | 1,126 |
| | $ | 1,334 |
| | $ | (2,571 | ) | | $ | 2,317 |
|
| | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | CURRENT ASSETS: | | | | | | | | | | Cash and cash equivalents | $ | 71 |
| | $ | 5 |
| | $ | 171 |
| | $ | — |
| | $ | 247 |
| Receivables trade and other, net | 1 |
| | 45 |
| | 564 |
| | — |
| | 610 |
| Inventories | — |
| | 151 |
| | 228 |
| | — |
| | 379 |
| Other current assets | 9 |
| | 18 |
| | 29 |
| | — |
| | 56 |
| TOTAL CURRENT ASSETS | 81 |
| | 219 |
| | 992 |
| | — |
| | 1,292 |
| NET PROPERTY | 13 |
| | 158 |
| | 253 |
| | — |
| | 424 |
| GOODWILL | — |
| | 277 |
| | 154 |
| | — |
| | 431 |
| OTHER ASSETS | 75 |
| | 128 |
| | 152 |
| | — |
| | 355 |
| INVESTMENTS IN SUBSIDIARIES | 2,185 |
| | 267 |
| | — |
| | (2,452 | ) | | — |
| TOTAL ASSETS | $ | 2,354 |
| | $ | 1,049 |
| | $ | 1,551 |
| | $ | (2,452 | ) | | $ | 2,502 |
| CURRENT LIABILITIES: | | | | | | | | | | Short-term debt | $ | 1 |
| | $ | 3 |
| | $ | 3 |
| | $ | — |
| | $ | 7 |
| Accounts and notes payable | 46 |
| | 230 |
| | 404 |
| | — |
| | 680 |
| Other current liabilities | 97 |
| | 87 |
| | 167 |
| | — |
| | 351 |
| TOTAL CURRENT LIABILITIES | 144 |
| | 320 |
| | 574 |
| | — |
| | 1,038 |
| LONG-TERM DEBT | 916 |
| | 10 |
| | 39 |
| | — |
| | 965 |
| RETIREMENT BENEFITS | 656 |
| | — |
| | 119 |
| | — |
| | 775 |
| INTERCOMPANY PAYABLE (RECEIVABLE) | 1,198 |
| | (1,736 | ) | | 538 |
| | — |
| | — |
| OTHER LIABILITIES | 52 |
| | 208 |
| | 49 |
| | — |
| | 309 |
| EQUITY (DEFICIT) ATTRIBUTABLE TO MERITOR, INC. | (612 | ) | | 2,247 |
| | 205 |
| | (2,452 | ) | | (612 | ) | NONCONTROLLING INTERESTS | — |
| | — |
| | 27 |
| | — |
| | 27 |
| TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | 2,354 |
| | $ | 1,049 |
| | $ | 1,551 |
| | $ | (2,452 | ) | | $ | 2,502 |
|
| | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2015 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | $ | 7 |
| | $ | 10 |
| | $ | 12 |
| | $ | — |
| | $ | 29 |
| INVESTING ACTIVITIES | | | | | | | | | | Capital expenditures | (1 | ) | | (10 | ) | | (12 | ) | | — |
| | (23 | ) | Net investing cash flows provided by discontinued operations | — |
| | 1 |
| | 3 |
| | — |
| | 4 |
| CASH USED FOR INVESTING ACTIVITIES | (1 | ) | | (9 | ) | | (9 | ) | | — |
| | (19 | ) | FINANCING ACTIVITIES | | | | | | | | | | Repayment of notes and term loan | (16 | ) | | — |
| | — |
| | — |
| | (16 | ) | Repurchase of common stock | (16 | ) | | | | | | | | (16 | ) | Intercompany advances | 54 |
| | — |
| | (54 | ) | | — |
| | — |
| Other financing activities | — |
| | (2 | ) | | (4 | ) | | — |
| | (6 | ) | CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 22 |
| | (2 | ) | | (58 | ) | | — |
| | (38 | ) | EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — |
| | — |
| | (12 | ) | | — |
| | (12 | ) | CHANGE IN CASH AND CASH EQUIVALENTS | 28 |
| | (1 | ) | | (67 | ) | | — |
| | (40 | ) | CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 71 |
| | 5 |
| | 171 |
| | — |
| | 247 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 99 |
| | $ | 4 |
| | $ | 104 |
| | $ | — |
| | $ | 207 |
|
| | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, 2014 | | Parent | | Guarantors | | Non- Guarantors | | Elims | | Consolidated | CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | (30 | ) | | $ | 8 |
| | $ | 40 |
| | $ | — |
| | $ | 18 |
| INVESTING ACTIVITIES | | | | | | | | | | Capital expenditures | (2 | ) | | (11 | ) | | (12 | ) | | — |
| | (25 | ) | Net investing cash flows provided by discontinued operations | — |
| | — |
| | 3 |
| | — |
| | 3 |
| CASH USED FOR INVESTING ACTIVITIES | (2 | ) | | (11 | ) | | (9 | ) | | — |
| | (22 | ) | FINANCING ACTIVITIES | | | | | | | | | | Repayment term loan | (308 | ) | | — |
| | — |
| | — |
| | (308 | ) | Proceeds from debt issuance | 225 |
| | — |
| | — |
| | — |
| | 225 |
| Debt issuance costs | (9 | ) | | — |
| | — |
| | — |
| | (9 | ) | Intercompany advances | 92 |
| | — |
| | (92 | ) | | — |
| | — |
| Other financing activities | — |
| | — |
| | 13 |
| | — |
| | 13 |
| CASH USED FOR FINANCING ACTIVITIES | — |
| | — |
| | (79 | ) | | — |
| | (79 | ) | EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | — |
| | — |
| | (2 | ) | | — |
| | (2 | ) | CHANGE IN CASH AND CASH EQUIVALENTS | (32 | ) | | (3 | ) | | (50 | ) | | — |
| | (85 | ) | CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 144 |
| | 6 |
| | 168 |
| | — |
| | 318 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 112 |
| | $ | 3 |
| | $ | 118 |
| | $ | — |
| | $ | 233 |
|
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 March 31, 2015 and September 30, 2014, Parent-only obligations included $662 million and $684 million of pension and retiree medical benefits, respectively, (see Note 18). All debt is debt of the Parent other than $42 million and $55 million at March 31, 2015 and September 30, 2014, respectively (see Note 16), and is primarily related to capital lease obligations and lines of credit. Cash dividends paid to the Parent by subsidiaries and investments accounted for by the equity method were $37 million and $5 million for the six months ended March 31, 2015 and 2014, respectively. |