Equity and Noncontrolling Interests

9 Months Ended

Jun. 30, 2021

Equity [Abstract]

Equity and Noncontrolling Interests

11. Equity and Noncontrolling Interests

For the nine months ended June 30, 2021:

(in millions)	Ordinary Shares		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Shareholders' Equity Attributable  to Adient		Shareholders' Equity Attributable to Noncontrolling Interests		Total Equity
Balance at September 30, 2020	$	—	$	3,974	$	(2,096)	$	(665)	$	1,213	$	322	$	1,535
Net income (loss)	—		—		148		—		148		51		199
Foreign currency translation adjustments	—		—		—		53		53		9		62
Realized and unrealized gains (losses) on derivatives	—		—		—		34		34		—		34
Dividends attributable to noncontrolling interests	—		—		—		—		—		(40)		(40)
Change in noncontrolling interest share	—		—		—		—		—		(3)		(3)
Share based compensation and other	—		19		—		—		19		1		20
Balance at June 30, 2021	$	—	$	3,993	$	(1,948)	$	(578)	$	1,467	$	340	$	1,807

For the three months ended June 30, 2021:

(in millions)	Ordinary Shares		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Shareholders' Equity Attributable  to Adient		Shareholders' Equity Attributable to Noncontrolling Interests		Total Equity
Balance at March 31, 2021	$	—	$	3,985	$	(1,877)	$	(619)	$	1,489	$	353	$	1,842
Net income (loss)	—		—		(71)		—		(71)		16		(55)
Foreign currency translation adjustments	—		—		—		24		24		3		27
Realized and unrealized gains (losses) on derivatives	—		—		—		17		17		—		17
Dividends attributable to noncontrolling interests	—		—		—		—		—		(29)		(29)
Change in noncontrolling interest share	—		—		—		—		—		(3)		(3)
Share based compensation and other	—		8		—		—		8		—		8
Balance at June 30, 2021	$	—	$	3,993	$	(1,948)	$	(578)	$	1,467	$	340	$	1,807

For the nine months ended June 30, 2020:

(in millions)	Ordinary Shares		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Shareholders' Equity Attributable  to Adient		Shareholders' Equity Attributable to Noncontrolling Interests		Total Equity
Balance at September 30, 2019	$	—	$	3,962	$	(1,545)	$	(569)	$	1,848	$	341	$	2,189
Net income (loss)	—		—		(511)		—		(511)		26		(485)
Foreign currency translation adjustments	—		—		—		(66)		(66)		1		(65)
Realized and unrealized gains (losses) on derivatives	—		—		—		(23)		(23)		—		(23)
Dividends attributable to noncontrolling interests	—		—		—		—		—		(28)		(28)
Change in noncontrolling interest share	—		—		—		—		—		(18)		(18)
Share based compensation and other	—		6		—		—		6		—		6
Adjustments from adoption of a new standard	—		—		(4)		—		(4)		—		(4)
Balance at June 30, 2020	$	—	$	3,968	$	(2,060)	$	(658)	$	1,250	$	322	$	1,572

The deconsolidation of Adient Aerospace in the quarter ended December 31, 2019 resulted in a $18 million change in noncontrolling interest.

For the three months ended June 30, 2020:

(in millions)	Ordinary Shares		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Shareholders' Equity Attributable  to Adient		Shareholders' Equity Attributable to Noncontrolling Interests		Total Equity
Balance at March 31, 2020	$	—	$	3,966	$	(1,735)	$	(690)	$	1,541	$	342	$	1,883
Net income (loss)	—		—		(325)		—		(325)		(6)		(331)
Foreign currency translation adjustments	—		—		—		8		8		2		10
Realized and unrealized gains (losses) on derivatives	—		—		—		24		24		—		24
Dividends attributable to noncontrolling interests	—		—		—		—		—		(16)		(16)
Share based compensation and other	—		2		—		—		2		—		2
Balance at June 30, 2020	$	—	$	3,968	$	(2,060)	$	(658)	$	1,250	$	322	$	1,572

The following table presents changes in AOCI attributable to Adient:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in millions)	2021		2020		2021		2020
Foreign currency translation adjustments
Balance at beginning of period	$	(605)	$	(632)	$	(634)	$	(558)
Aggregate adjustment for the period, net of tax	24		8		53		(66)
Balance at end of period	$	(581)	$	(624)	$	(581)	$	(624)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	$	(11)	$	(55)	$	(28)	$	(8)
Current period changes in fair value, net of tax	18		12		33		(30)
Reclassification to income, net of tax	(1)		12		1		7
Balance at end of period	$	6	$	(31)	$	6	$	(31)
Pension and postretirement plans
Balance at beginning of period	$	(3)	$	(3)	$	(3)	$	(3)
Balance at end of period	$	(3)	$	(3)	$	(3)	$	(3)
Accumulated other comprehensive income (loss), end of period	$	(578)	$	(658)	$	(578)	$	(658)

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 June 30,				Nine Months Ended June 30,
(in millions)	2021		2020		2021		2020
Beginning balance	$	44	$	35	$	43	$	51
Net income	6		—		19		14
Foreign currency translation adjustments	(2)		7		—		—
Dividends	—		—		(14)		(23)
Ending balance	$	48	$	42	$	48	$	42