Shareholders' Equity

9 Months Ended

Jun. 30, 2022

There were no dividends declared or paid in the third quarter of fiscal years 2022 and 2021. The payment of cash dividends and the amount of any dividend are subject to review and change at the discretion of the company's Board of Directors.

Common Stock and Debt Repurchase Authorizations

On July 28, 2021, the Board of Directors authorized the repurchase of up to $250 million of the company's common stock. Repurchases can be made from time to time through open market purchases, privately negotiated transactions or otherwise, subject to compliance with legal and regulatory requirements and the company’s debt covenants. As of June 30, 2022 and September 30, 2021, the amount remaining available for repurchases was $250 million under this common stock repurchase authorization. On February 21, 2022, the company suspended activity under its share repurchase program due to the Merger Agreement.

On November 7, 2019, the Board of Directors authorized the repurchase of up to $325 million of the company's common stock. Repurchases could be made from time to time through open market purchases, privately negotiated transactions or

otherwise, subject to compliance with legal and regulatory requirements and the company’s debt covenants. During fiscal year 2021, the company repurchased 2.5 million shares of common stock for $59 million (including commission costs) pursuant to this authorization. No amounts remained outstanding under this common stock repurchase authorization as of September 30, 2021.

On November 2, 2018, the Board of Directors authorized the repurchase of up to $100 million aggregate principal amount of any of the company's debt securities (including convertible debt securities), from time to time through open market purchases, privately negotiated transactions or otherwise, subject to compliance with legal and regulatory requirements and the company's debt covenants. As of June 30, 2022 and September 30, 2021, the amount remaining available for repurchase under this debt repurchase authorization was $76 million.

Accumulated Other Comprehensive Loss ("AOCL")

The components of AOCL and the changes in AOCL by components, net of tax, for the three months ended June 30, 2022 and 2021 are as follows (in millions):


	Foreign Currency Translation		Employee Benefit Related Adjustments		Unrealized Income (Loss) on cash flow hedges		Total
Balance at March 31, 2022	$	(104)	$	(523)	$	(1)	$	(628)
Other comprehensive loss before reclassification	(61)		—		(1)		(62)
Amounts reclassified from accumulated other comprehensive loss	—		1		—		1
Net current-period other comprehensive income (loss)	(61)		1		(1)		(61)
Balance at June 30, 2022	$	(165)	$	(522)	$	(2)	$	(689)

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 benefit

(9)

(a)

Actuarial losses

(a)

Total before tax

—

Tax benefit

Total reclassifications for the period

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 16 for additional details), which is recorded in other income (expense), net.


	Foreign Currency Translation		Employee Benefit Related Adjustments		Unrealized Income (Loss) on cash flow hedges		Total
Balance at March 31, 2021	$	(96)	$	(478)	$	(1)	$	(575)
Other comprehensive income before reclassification	15		—		—		15
Amounts reclassified from accumulated other comprehensive loss	—		3		—		3
Net current-period other comprehensive income	15		3		—		18
Balance at June 30, 2021	$	(81)	$	(475)	$	(1)	$	(557)

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 benefit

(9)

(b)

Actuarial losses

(b)

Total before tax

—

Tax benefit

Total reclassifications for the period

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 16 for additional details), which is recorded in other income (expense), net.

The components of AOCL and the changes in AOCL by components, net of tax, for the nine months ended June 30, 2022 and 2021 are as follows (in millions):


	Foreign Currency Translation		Employee Benefit Related Adjustments		Unrealized Income (Loss) on cash flow hedges		Total
Balance at September 30, 2021	$	(105)	$	(526)	$	(1)	$	(632)
Other comprehensive income (loss) before reclassification	(60)		1		(1)		(60)
Amounts reclassified from accumulated other comprehensive loss	—		3		—		3
Net current-period other comprehensive income (loss)	(60)		4		(1)		(57)
Balance at June 30, 2022	$	(165)	$	(522)	$	(2)	$	(689)

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 benefit

(26)

(a)

Actuarial losses

(a)

Total before tax

—

Tax benefit

Total reclassifications for the period

Net of tax


	Foreign Currency Translation		Employee Benefit Related Adjustments		Unrealized Income (Loss) on cash flow hedges		Total
Balance at September 30, 2020	$	(129)	$	(483)	$	(2)	$	(614)
Other comprehensive income before reclassification	48		1		1		50
Amounts reclassified from accumulated other comprehensive loss	—		7				7
Net current-period other comprehensive income	48		8		1		57
Balance at June 30, 2021	$	(81)	$	(475)	$	(1)	$	(557)

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 benefit

(27)

(b)

Actuarial losses

(b)

Total before tax

—

Tax benefit

Total reclassifications for the period

Net of tax

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

MERITOR, INC. 10-Q