Product Warranties

12 Months Ended

Sep. 30, 2021

Product Warranties Disclosures [Abstract]

Product Warranties

7. Product Warranties

Adient offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that Adient replace defective products within a specified time period from the date of sale. Adient records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, Adient's warranty provisions are adjusted as necessary. Adient monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates. Adient's product warranty liability is recorded in the consolidated statements of financial position in other current liabilities.

The changes in Adient's total product warranty liability are as follows:

	September 30,
(in millions)	2021		2020
Balance at beginning of period	$	24	$	22
Accruals for warranties issued during the period	9		9
Changes in accruals related to pre-existing warranties (including changes in estimates)	(2)		1
Changes in accruals related to business acquisitions	1		—
Changes in accruals related to business divestitures	(1)		(1)
Settlements made (in cash or in kind) during the period	(8)		(7)
Balance at end of period	$	23	$	24