Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2019

Projected benefit payments from the plans as of September 30, 2019 are estimated as follows (in millions):


2020	$	20
2021	20
2022	27
2023	22
2024	24
2025-2029	166

Schedule of Plan Assets by Asset Category

Adient's plan assets by asset category, are as follows:


	Fair Value Measurements Using:
(in millions)	Total as of September 30, 2019		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV)
Pension
Cash	$	31	$	31	$	—	$	—	$	—
Equity Securities
Domestic	15		2		7		—		6
International - Developed	49		36		10		—		3
International - Emerging	5		2		3		—		—
Fixed Income Securities
Government	218		75		117		—		26
Corporate/Other	66		55		—		—		11
Hedge Fund	65		—		65		—		—
Real Estate	21		—		—		6		15
Total	$	470	$	201	$	202	$	6	$	61


	Fair Value Measurements Using:
(in millions)	Total as of September 30, 2018		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV)
Pension
Cash	$	31	$	31	$	—	$	—	$	—
Equity Securities
Domestic	17		3		—		—		14
International - Developed	51		36		—		—		15
International - Emerging	5		2		—		—		3
Fixed Income Securities
Government	185		83		67		—		35
Corporate/Other	61		49		2		—		10
Hedge Fund	77		—		77		—		—
Real Estate	22		—		—		6		16
Total	$	449	$	204	$	146	$	6	$	93

Schedule of Changes in Fair Value of Pension Assets

The following sets forth a summary of changes in the fair value of pension assets measured using significant unobservable inputs (Level 3):


(in millions)	Real Estate
Pension
Asset value as of September 30, 2017	$	11
Redemptions	(5)
Asset value as of September 30, 2018	$	6
Redemptions	—

Asset value as of September 30, 2019	$	6

Schedule of Changes in Projected Benefit Obligations, Changes in Plan Assets and Funded Status

The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status:


	Pension Benefits						Postretirement Benefits ⁽¹⁾
(in millions)	2019		2018		2019		2018
Accumulated Benefit Obligation	$	571	$	526	$	—	$	16
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	547	$	600	$	—	$	16
Service cost	7		8		—		—
Interest cost	13		14		—		—

Actuarial (gain) loss	96		(33)		—		—
Benefits and settlements paid	(40)		(28)		—		(1)
Settlement (gain)	—		—		—		(15)
Currency translation adjustment	(25)		(14)		—		—
Projected benefit obligation at end of year	$	598	$	547	$	—	$	—
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	449	$	491	$	—	$	15
Actual return on plan assets	63		9		—		1
Employer contributions/(distributions)	19		(11)		—		—
Benefits and settlements paid	(40)		(28)		—		(1)
Reallocation of plan assets	—		—		—		(15)
Currency translation adjustment	(21)		(12)		—		—
Fair value of plan assets at end of year	$	470	$	449	$	—	$	—
Funded status	$	(128)	$	(98)	$	—	$	—
Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost	$	24	$	29	$	—	$	—
Accrued benefit liability	(152)		(127)		—		—
Net amount recognized	$	(128)	$	(98)	$	—	$	—

(1) The postretirement benefit plan was terminated during fiscal 2018. As a result, a $15 million settlement gain was recorded, reflecting immediate recognition of prior service credits.

Schedule of Weighted Average Assumptions


	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	2019		2018		2019		2018
Weighted Average Assumptions ⁽¹⁾:
Discount rate ⁽²⁾	3.22	%	4.29	%	1.85	%	2.63	%
Rate of compensation increase	NA		NA		3.54	%	3.53	%

⁽¹⁾ Plan assets and obligations are determined based on a September 30 measurement date.

⁽²⁾ Adient considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, Adient uses different discount rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S. pension and postretirement plans, Adient uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension and postretirement plans, Adient consistently uses the relevant country specific benchmark indices for determining the various discount rates.

Schedule of Components and Key Assumptions of Net Periodic Benefit Cost

The tables that follow contain the components and key assumptions of net periodic benefit cost:


	Pension Benefits										Postretirement Benefits
(in millions)	2019		2018		2017		2019		2018		2017
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	7	$	8	$	8	$	—	$	—	$	—
Interest cost	13		14		12		—		—		1
Expected return on plan assets	(18)		(18)		(17)		—		—		—
Net actuarial (gain) loss	49		(24)		(43)		—		—		(2)
Settlement (gain) loss	2		—		—		—		(15)		—
Net periodic benefit cost (credit)	$	53	$	(20)	$	(40)	$	—	$	(15)	$	(1)


	Pension Benefits																Postretirement Benefits
	U.S. Plans										Non-U.S. Plans
	2019		2018		2017		2019		2018		2017		2019	2018	2017
Expense Assumptions:
Discount rate	4.29	%	3.85	%	3.70	%	2.71	%	2.62	%	2.10	%	NA	NA	3.25	%
Expected return on plan assets	5.00	%	5.15	%	5.50	%	4.08	%	4.19	%	3.80	%	NA	NA	3.35	%
Rate of compensation increase	N/A		NA		NA		3.46	%	3.53	%	4.00	%	NA	NA	NA