Segment Information (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Financial Information for Reportable Segments

Adient has three reportable segments for financial reporting purposes:

	Year Ended September 30,
(in millions)	2019		2018		2017
Net Sales
Americas	$	7,785	$	7,664	$	7,290
EMEA	6,675		7,436		7,044
Asia	2,337		2,659		2,129
Eliminations	(271)		(320)		(250)
Total net sales	$	16,526	$	17,439	$	16,213

	Year Ended September 30,
(in millions)	2019		2018 (1)		2017 (1)
Adjusted EBITDA
Americas	$	210	$	302	$	758
EMEA	161		364		424
Asia	513		625		554
Corporate-related costs (2)	(97)		(95)		(135)
Becoming Adient costs (3)	—		(62)		(95)
Separation costs (4)	—		—		(10)
Restructuring and impairment costs (5)	(176)		(1,181)		(46)
Purchase accounting amortization (6)	(44)		(69)		(43)
Restructuring related charges (7)	(31)		(61)		(37)
Impairment of nonconsolidated partially owned affiliate (8)	—		(358)		—
Gain on previously-held interest (9)	—		—		151
Depreciation (10)	(278)		(393)		(332)
Stock based compensation (11)	(20)		(37)		(29)
Other items (12)	(9)		(55)		(16)
Earnings (loss) before interest and income taxes	229		(1,020)		1,144
Net financing charges	(182)		(144)		(132)
Other pension income (expense)	(45)		43		49
Income (loss) before income taxes	$	2	$	(1,121)	$	1,061

Notes:

(1) The presentation of certain amounts has been revised from what was previously reported to retrospectively adopt Accounting Standard Update ("ASU") 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement cost" as of October 1, 2018. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies," for more information.

(2) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and finance.

(3) Reflects incremental expenses associated with becoming an independent company.

(4) Reflects expenses associated with and incurred prior to the separation from the former Parent.

(5) Reflects restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and non-recurring impairment charges. Included along with restructuring charges in fiscal 2019 is a $66 million non-cash pre-tax impairment charge related to long-lived assets ($11 million in the Americas and $55 million in EMEA) and an $18 million non-cash impairment charge related to assets held for sale ($6 million in the Americas and $12 million in Asia). Included along with restructuring charges in fiscal 2018 is a non-cash pre-tax impairment charge of $1,086 million in the seat structure and mechanism operations ($787 million related to long-lived assets and $299 million related to goodwill), and a $49 million non-cash impairment charge related to assets held for sale. Refer to Note 5, "Property, Plant and Equipment," Note 6, "Goodwill and Other Intangible Assets," Note 15, "Restructuring and Impairment Costs," and Note 16, "Impairment of Long-Lived Assets," of the notes to the consolidated financial statements for more information. Amounts in fiscal 2017 relate primarily to restructuring charges.

(6) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.

(7) Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates recorded within equity income.

(8) Reflects a non-cash impairment charge related to Adient's YFAI investment balance, which has been recorded within the equity income line in the consolidated statements of income.

(9) An amendment to the rights agreement of a seating affiliate in China was finalized in the fourth quarter of fiscal 2017 giving Adient control of the previously non-consolidated affiliate. Adient began consolidating the entity in July 2017 and was required to apply purchase accounting, including recognizing a gain on our previously held interest, which has been recorded in equity income.

(10) For the twelve months ended September 30, 2018, depreciation excludes $7 million, which is included in restructuring related charges discussed above. For the twelve months ended September 30, 2017, depreciation excludes $5 million which is included in Becoming Adient costs discussed above.

(11) For the twelve months ended September 30, 2018 and 2017, stock based compensation excludes $10 million and $16 million, respectively. These amounts are included in Becoming Adient costs discussed above.

(12) The twelve months ended September 30, 2019 primarily includes $4 million of integration costs associated with the acquisition of Futuris, $3 million of transaction costs and $2 million of tax adjustments at YFAI. The twelve months ended September 30, 2018 primarily includes $22 million of integration costs associated with the acquisition of Futuris, $11 million of non-recurring consulting fees related to the seat structure and mechanism operations, an $8 million charge related to the impact of the U.S. tax reform at YFAI and $8 million of prior period adjustments. The twelve months ended September 30, 2017 primarily includes $3 million of transaction costs associated with the acquisition of Futuris and $12 million of initial funding of the Adient foundation.

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated

Additional Segment Information

	Year Ended September 30, 2019
	Reportable Segments						Reconciling Items(1)		Consolidated
(in millions)	Americas		EMEA		Asia
Net Sales	$	7,785	$	6,675	$	2,337	$	(271)	$	16,526
Equity Income	3		13		270		(11)		275
Total Assets	3,237		2,716		3,416		973		10,342
Depreciation	109		126		43		—		278
Amortization	14		5		18		3		40
Capital Expenditures	190		237		41		—		468

(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets, depreciation and amortization, and amounts to reconcile to consolidated totals. Specific reconciling items included in equity income are $4 million of purchase accounting amortization related to the YFAI joint venture, $5 million of restructuring related charges and $2 million of tax adjustments at YFAI. Corporate-related assets primarily include cash and deferred income tax assets.

	Year Ended September 30, 2018
	Reportable Segments					Reconciling Items(1)		Consolidated
(in millions)	Americas		EMEA	Asia
Net Sales	$	7,664	7,436	$	2,659	$	(320)	$	17,439
Equity Income	10		12	363		(398)		(13)
Total Assets	3,248		3,066	3,598		1,030		10,942
Depreciation	141		204	45		10		400
Amortization	12		12	20		3		47
Capital Expenditures	233		267	36		—		536

(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets, depreciation and amortization, and amounts to reconcile to consolidated totals. Specific reconciling items included in equity income are a $358 million non-cash impairment charge related to Adient's YFAI investment balance, $22 million of purchase accounting amortization related to the YFAI joint venture, $10 million of restructuring related charges and a $8 million charge related to the impact of the U.S. tax reform at YFAI. Corporate-related assets primarily include cash, deferred income tax assets, and Adient's aviation assets.

	Year Ended September 30, 2017
	Reportable Segments						Reconciling Items(1)		Consolidated
(in millions)	Americas		EMEA		Asia
Net Sales	$	7,290	$	7,044	$	2,129	$	(250)	$	16,213
Equity Income	10		11		373		128		522
Depreciation	118		174		36		9		337
Amortization	1		11		5		4		21
Capital Expenditures	227		267		56		27		577

(1) Reconciling items include the elimination of intercompany transactions, depreciation and amortization, and amounts to reconcile to consolidated totals. Included in equity income is a $151 million gain on a previously held interest in a China Seating affiliate that Adient began consolidating in the fourth quarter of fiscal 2017 as a result of an amendment to the related rights agreement, offset by $22 million of purchase accounting amortization related to the YFAI joint venture and $1 million of restructuring related costs related to the YFAI joint venture.

Geographic Information

Schedule of Operations by Geographical Areas

Net Sales
	Year Ended September 30,
(in millions)	2019		2018		2017
Americas
United States	$	6,435	$	6,376	$	6,221
Mexico	2,709		2,668		2,595
Other Americas	435		537		602
Regional Elimination	(1,794)		(1,917)		(2,128)
	7,785		7,664		7,290
EMEA
Germany	1,463		1,761		1,930
Czech Republic	1,431		1,663		1,398
Other EMEA	5,616		5,892		5,476
Regional Elimination	(1,835)		(1,880)		(1,760)
	6,675		7,436		7,044
Asia
Thailand	614		615		409
China	529		716		264
Japan	529		562		597
Other Asia	668		768		859
Regional Elimination	(3)		(2)		—
	2,337		2,659		2,129
Inter-segment elimination	(271)		(320)		(250)
Total	$	16,526	$	17,439	$	16,213

Long-Lived Assets (consisting of net property, plant and equipment)
	Year Ended September 30,
(in millions)	2019		2018
Americas
United States	$	504	$	474
Mexico	177		161
Other Americas	32		31
	713		666
EMEA
Germany	195		197
Other EMEA	538		565
	733		762
Asia
All countries	225		255
Total	$	1,671	$	1,683