

10. Equity and Noncontrolling Interests



	Three Months Ended March 31,						Six Months Ended March 31,
(in millions)	2019			2018			2019			2018
Ordinary shares, beginning of the period	$	—		$	—		$	—		$	—
Ordinary shares, end of the period	—			—			—			—

Additional paid-in capital, beginning of the period	3,954			3,952			3,951			3,942
Share-based compensation	2			4			8			10
Other	—			(1		)	(3		)	3
Additional paid-in capital, end of the period	3,956			3,955			3,956			3,955

Retained earnings (Accumulated deficit), beginning of the period	(1,070		)	492			(1,028		)	734
Net income (loss) attributable to Adient	$	(149	)	$	(168	)	$	(166	)	$	(384	)
Dividends declared ($0.275 per share/quarter)	—			(25		)	(26		)	(51		)
Share-based compensation	(1		)	—			—			—
Retained earnings (Accumulated deficit), end of the period	(1,220		)	299			(1,220		)	299

Accumulated other comprehensive income, beginning of the period	(518		)	(336		)	(531		)	(397		)
Foreign currency translation adjustments	35			132			51			203
Realized and unrealized gains (losses) on derivatives	4			10			1			—
Employee retirement plans	—			9			—			9
Accumulated other comprehensive income, end of the period	(479		)	(185		)	(479		)	(185		)

Shareholders' equity attributable to Adient	2,257			4,069			2,257			4,069

Noncontrolling interest, beginning of the period	358			321			325			313
Net income (loss)	14			16			33			29
Foreign currency translation adjustments	4			9			5			13
Dividends attributable to noncontrolling interests	(3		)	(21		)	(18		)	(30		)
Change in noncontrolling interest share	—			1			—			1
Formation of consolidated joint venture	—			—			28			—
Noncontrolling interest, end of the period	373			326			373			326

Total equity	$	2,630		$	4,395		$	2,630		$	4,395

The following table presents changes in AOCI attributable to Adient:



	Three Months Ended March 31,						Six Months Ended March 31,
(in millions)	2019			2018			2019			2018
Foreign currency translation adjustments
Balance at beginning of period	$	(507	)	$	(327	)	$	(523	)	$	(398	)
Aggregate adjustment for the period, net of tax	35			132			51			203
Balance at end of period	(472		)	(195		)	(472		)	(195		)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	(10		)	(7		)	(7		)	3
Current period changes in fair value, net of tax	4			11			1			1
Reclassification to income, net of tax	—			(1		)	—			(1		)
Balance at end of period	(6		)	3			(6		)	3
Pension and postretirement plans
Balance at beginning of period	(1		)	(2		)	(1		)	(2		)
Net reclassifications to AOCI	—			9			—			9
Balance at end of period	(1		)	7			(1		)	7
Accumulated other comprehensive income (loss), end of period	$	(479	)	$	(185	)	$	(479	)	$	(185	)

Adient consolidates certain subsidiaries in which the noncontrolling interest party has within their control the right to require Adient to redeem all or a portion of its interest in the subsidiary. These redeemable noncontrolling interests are reported at their estimated redemption value. Any adjustment to the redemption value impacts retained earnings but does not impact net income. Redeemable noncontrolling interests which are redeemable only upon future events, the occurrence of which is not currently probable, are recorded at carrying value. The following table presents changes in the redeemable noncontrolling interests:



	Three Months Ended March 31,				Six Months Ended March 31,
(in millions)	2019		2018		2019			2018
Beginning balance	$	27	$	29	$	47		$	28
Net income	9		9		18			16
Foreign currency translation adjustments	1		1		—			2
Dividends	—		—		(28		)	(8		)
Change in noncontrolling interest share	—		—		—			1
Ending balance	$	37	$	39	$	37		$	39