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Segment Information
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information
18. Segment Information

Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, Middle East, and Africa ("EMEA") and 3) Asia Pacific/China ("Asia").

Adient evaluates the performance of its reportable segments using an adjusted EBITDA metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, restructuring and impairment costs, restructuring related-costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items ("Adjusted EBITDA"). Also, certain corporate-related costs are not allocated to the segments. The reportable segments are consistent with how management views the markets served by Adient and reflect the financial information that is reviewed by its chief operating decision maker.
 Year Ended
September 30,
(in millions)202120202019
Net Sales
Americas$6,164 $5,889 $7,785 
EMEA5,564 5,148 6,675 
Asia2,123 1,822 2,337 
Eliminations(171)(189)(271)
Total net sales$13,680 $12,670 $16,526 

Year Ended
September 30,
(in millions)202120202019
Adjusted EBITDA
Americas$232 $228 $210 
EMEA277 101 161 
Asia486 424 513 
Corporate-related costs (1)
(78)(80)(97)
Restructuring and impairment costs (2)
(21)(238)(176)
Purchase accounting amortization (3)
(50)(40)(44)
Restructuring related charges (4)
(9)(20)(31)
Gain (loss) on business divestitures - net (5)
(26)(13)— 
Gain on sale / (impairment) of nonconsolidated partially-owned affiliates (6)
1,214 (231)— 
Depreciation
(285)(295)(278)
Stock based compensation
(36)(15)(20)
Other items (7)
22 (16)(9)
Earnings (loss) before interest and income taxes1,726 (195)229 
Net financing charges(311)(220)(182)
Other pension income (expense)24 (14)(45)
Income (loss) before income taxes$1,439 $(429)$2 

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

(2) 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 in restructuring charges in fiscal 2021 is a $9 million held for sale non-cash impairment charge in EMEA, and a $1 million non-cash pre-tax impairment charge related to long-lived assets in EMEA. Included in restructuring charges in fiscal 2020 is a non-cash pre-tax impairment related to China intangible assets of $24 million, held for sale asset impairments of $21 million, and $8 million of other long-lived asset impairments. Included in 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). Refer to 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.

(3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.
(4) 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.

(5) The year ended September 30, 2021 includes a $21 million loss associated with certain aspects of the 2021 Yanfeng Transaction and a $5 million loss on sale of non-core assets in China. The year ended September 30, 2020 includes a $21 million loss of sale of RECARO and $4 million loss on deconsolidation of Aerospace, partially offset by a $12 million gain on completion of the 2020 Yanfeng Transaction.

(6) The year ended September 30, 2021 includes a gain associated with the 2021 Yanfeng Transaction of $1,181 million and a gain of $33 million on the sale of Adient's interest in SJA. The year ended September 30, 2020 includes non-cash impairment charges related to Adient's YFAI investment balance recorded in conjunction with the 2020 Yanfeng Transaction. All of these impacts have been recorded within the equity income line in the consolidated statements of income.

(7) The year ended September 30, 2021 reflects a one-time gain of $38 million associated with the retrospective recovery of indirect tax credits in Brazil resulting from a favorable court ruling (of which $36 million relates to recoveries covering the past 20 years and is adjusted out of Americas' segment results), a $5 million gain on previously held interest at YFAS in an affiliate, and $19 million of transaction costs. The year ended September 30, 2020 includes $15 million of transaction costs and $1 million of tax adjustments at YFAI. The year ended September 30, 2019 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.

Additional Segment Information

Year Ended September 30, 2021
Reportable Segments
Reconciling Items(1)
Consolidated
(in millions)AmericasEMEAAsia
Net Sales$6,164 $5,564 $2,123 $(171)$13,680 
Equity Income(1)7 265 1,213 1,484 
Total Assets2,888 2,473 3,187 2,230 10,778 
Depreciation121 132 32 — 285 
Amortization13 14 18 — 45 
Capital Expenditures131 104 25 — 260 

(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets and amounts to reconcile to consolidated totals. Specific reconciling items for equity income represents a gain associated with the 2021 Yanfeng Transaction of $1,181 million, a gain of $33 million on the sale of Adient's interest in SJA, a $5 million gain on previously held interest at YFAS, offset by $5 million of purchase accounting amortization and $1 million of restructuring related charges. Corporate-related assets primarily include cash and deferred income tax assets.

Year Ended September 30, 2020
Reportable Segments
Reconciling Items(1)
Consolidated
(in millions)AmericasEMEAAsia
Net Sales$5,889 $5,148 $1,822 $(189)$12,670 
Equity Income1 8 256 (243)22 
Total Assets3,019 2,658 2,868 1,716 10,261 
Depreciation128 129 38 — 295 
Amortization13 8 16 — 37 
Capital Expenditures138 164 24 — 326 

(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets and amounts to reconcile to consolidated totals. Specific reconciling items for equity income represents a $231 million non-cash impairment of Adient's YFAI investment, $8 million of restructuring related charges, $3 million of purchase accounting amortization and a $1 million
charge for tax adjustments associated with YFAI. Corporate-related assets primarily include cash and deferred income tax assets.
Year Ended September 30, 2019
Reportable Segments
Reconciling Items(1)
Consolidated
(in millions)AmericasEMEAAsia
Net Sales$7,785 6,675 $2,337 (271)$16,526 
Equity Income3 13 270 (11)275 
Total Assets3,237 2,716 3,416 973 10,342 
Depreciation109 126 43 — 278 
Amortization14 5 18 3 40 
Capital Expenditures190 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.

Geographic Information

Financial information relating to Adient's operations by geographic area is as follows:

Net Sales
 Year Ended September 30,
(in millions)202120202019
Americas
United States$5,500 $4,983 $6,435 
Mexico2,298 2,004 2,709 
Other Americas312 318 435 
Regional Elimination(1,946)(1,416)(1,794)
6,164 5,889 7,785 
EMEA
Germany1,101 1,061 1,463 
Czech Republic1,155 1,118 1,431 
Other EMEA4,761 4,392 5,616 
Regional Elimination(1,453)(1,423)(1,835)
5,564 5,148 6,675 
Asia
China642 517 529 
Thailand469 400 614 
Japan331 332 529 
Other Asia705 600 668 
Regional Elimination(24)(27)(3)
2,123 1,822 2,337 
Inter-segment elimination(171)(189)(271)
Total$13,680 $12,670 $16,526 
Long-Lived Assets (consisting of net property, plant and equipment)
 Year Ended September 30,
(in millions)20212020
Americas
United States$467 $472 
Mexico173 171 
Other Americas22 20 
662 663 
EMEA
Germany180 203 
Poland145 142 
Czech Republic41 44 
Other EMEA310 337 
676 726 
Asia
China125 38 
Thailand38 40 
Japan58 64 
Other Asia48 50 
269192
Total$1,607 $1,581