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Product Warranties
 6 Months Ended
Mar. 31, 2019
Product Warranties Disclosures [Abstract]  
Product Warranties
6. Product Warranties

Adient offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that Adient replace defective products within a specified time period from the date of sale. Adient records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, Adient's warranty provisions are adjusted as necessary. Adient monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates. Adient's product warranty liability is recorded in the consolidated statements of financial position in other current liabilities.
The changes in Adient's total product warranty liability are as follows:
 
 
Six Months Ended
March 31,
(in millions)
 
2019
 
2018
Balance at beginning of period
 
$
11

 
$
19

Accruals for warranties issued during the period
 
9

 
2

Changes in accruals related to pre-existing warranties (including changes in estimates)
 
10

 
(2
)
Settlements made (in cash or in kind) during the period
 
(6
)
 
(3
)
Balance at end of period
 
$
24

 
$
16



In the second quarter of fiscal 2019, Adient recorded $7 million of warranty expense to correct a prior period error related to incurred but not yet reported warranty expense. Adient has concluded that this adjustment was not material to previously reported financial statements nor to current or estimated full year fiscal 2019 results.