Accounts Receivable Factoring and Securitization (Tables)

6 Months Ended

Mar. 31, 2022

Accounts Receivable Factoring And Securitization [Abstract]

Schedule of Accounts Receivable Factoring and Securitization

The company has a U.S. accounts receivable securitization facility with PNC Bank and participates in various accounts receivable factoring programs, primarily with Nordea Bank for trade receivables from AB Volvo, as follows:


	Current Expiration	Total Facility Size as of 3/31/22				Utilized as of 3/31/22				Utilized as of 9/30/21
		EUR		USD		EUR		USD		EUR		USD
On-balance sheet arrangement

Committed U.S. accounts receivable securitization (1)	March 2024	N/A		$	110	N/A		$	97	N/A		$	3
Total on-balance sheet arrangement: (1)		N/A		$	110	N/A		$	97	N/A		$	3
Off-balance sheet arrangements
Committed Swedish factoring facility (2)(3)	March 2024	€	155	$	171	€	116	$	128	€	75	$	88
Committed U.S. factoring facility (2)	February 2023	N/A		75		N/A		79		N/A		49
Uncommitted U.K. factoring facility (4)	February 2025	25		28		6		7		2		2
Uncommitted Italy factoring facility	June 2022	30		33		12		13		14		17
Other uncommitted factoring facilities (5)	None	N/A		N/A		21		23		15		17
Total off-balance sheet arrangements		€	210	$	307	€	155	$	250	€	106	$	173

(1) Availability subject to adequate eligible accounts receivable available for sale. The utilized amount includes $2 million of letters of credit as of March 31, 2022 and $3 million as of September 30, 2021.

(2) Actual amounts may exceed the bank's commitment at the bank's discretion.

(3) The facility is backed by a 364-day liquidity commitment from Nordea Bank which extends through June 22, 2022.

(4) On March 23, 2022, the company's U.K. factoring facility was amended to enable the factoring of Pound Sterling denominated accounts receivable in addition to Euro denominated accounts receivable.

(5) There is no explicit facility size under the agreement, but the counterparty approves the purchase of receivable tranches at its discretion.

MERITOR, INC. 10-Q