Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivative Instruments and Other Amounts

The following table presents the location and fair values of derivative instruments and other amounts used in hedging activities included in Adient's consolidated statements of financial position:

	Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815				Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815
(in millions)	March 31, 2021		September 30, 2020		March 31, 2021		September 30, 2020
Other current assets
Foreign currency exchange derivatives	$	10	$	5	$	3	$	—
Cross-currency interest rate swaps	4		—		—		—
Other noncurrent assets
Foreign currency exchange derivatives	—		—		2		—
Interest rate cap	—		—		—		—
Total assets	$	14	$	5	$	5	$	—
Other current liabilities
Foreign currency exchange derivatives	$	18	$	34	$	—	$	—
Cross-currency interest rate swaps	—		1
Other noncurrent liabilities
Foreign currency exchange derivatives	4		5		—		—
Long-term debt
Foreign currency denominated debt	1,173		1,173		—		—
Total liabilities	$	1,195	$	1,213	$	—	$	—

Schedule of Gross and Net Amounts of Derivative Instruments and Other Amounts

The gross and net amounts of derivative instruments and other amounts used in hedging activities are as follows:

	Assets				Liabilities
(in millions)	March 31, 2021		September 30, 2020		March 31, 2021		September 30, 2020
Gross amount recognized	$	19	$	5	$	1,195	$	1,213
Gross amount eligible for offsetting	(10)		(5)		(10)		(5)
Net amount	$	9	$	—	$	1,185	$	1,208

Schedule of Effective Portion of Pretax Gains (Losses)

The following table presents the effective portion of pretax gains (losses) recorded in other comprehensive income related to cash flow hedges:

	Three Months Ended March 31,				Six Months Ended March 31,
(in millions)	2021		2020		2021		2020
Foreign currency exchange derivatives	$	(11)	$	(79)	$	19	$	(57)

The following table presents the location and amount of the effective portion of pretax gains (losses) on cash flow hedges reclassified from AOCI into Adient's consolidated statements of income:

(in millions)		Three Months Ended March 31,				Six Months Ended March 31,
		2021		2020		2021		2020
Foreign currency exchange derivatives	Cost of sales	$	2	$	4	$	(3)	$	6

The following table presents the location and amount of pretax gains (losses) on derivatives not designated as hedging instruments recognized in Adient's consolidated statements of income (loss):

(in millions)		Three Months Ended March 31,				Six Months Ended March 31,
		2021		2020		2021		2020
Foreign currency exchange derivatives	Cost of sales	$	(2)	$	—	$	(2)	$	(1)
Foreign currency exchange derivatives	Net financing charges	—		3		2		3
Total		$	(2)	$	3	$	—	$	2