Equity and Noncontrolling Interests

3 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity and Noncontrolling Interests

11. Equity and Noncontrolling Interests

For the three months ended December 31, 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, 2021	$	—	$	3,991	$	(988)	$	(627)	$	2,376	$	342	$	2,718
Net income (loss)	—		—		(54)		—		(54)		11		(43)
Foreign currency translation adjustments	—		—		—		17		17		2		19
Realized and unrealized gains (losses) on derivatives	—		—		—		(2)		(2)		—		(2)
Dividends attributable to noncontrolling interests	—		—		—		—		—		(8)		(8)
Purchase of subsidiary shares from noncontrolling interest	—		12		—		—		12		(12)		—
Share based compensation and other	—		(5)		—		—		(5)		—		(5)
Balance at December 31, 2021	$	—	$	3,998	$	(1,042)	$	(612)	$	2,344	$	335	$	2,679

For the three months ended December 31, 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, 2020	$	—	$	3,974	$	(2,096)	$	(665)	$	1,213	$	322	$	1,535
Net income (loss)	—		—		150		—		150		17		167
Foreign currency translation adjustments	—		—		—		55		55		10		65
Realized and unrealized gains (losses) on derivatives	—		—		—		28		28		—		28
Dividends attributable to noncontrolling interests	—		—		—		—		—		(4)		(4)
Share based compensation and other	—		8		—		—		8		—		8
Adjustments from adoption of a new standard	—		(2)		—		—		(2)		—		(2)
Balance at December 31, 2020	$	—	$	3,980	$	(1,946)	$	(582)	$	1,452	$	345	$	1,797

The following table presents changes in AOCI attributable to Adient:

	Three Months Ended December 31,
(in millions)	2021		2020
Foreign currency translation adjustments
Balance at beginning of period	$	(617)	$	(634)
Aggregate adjustment for the period, net of tax	17		55
Balance at end of period	$	(600)	$	(579)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period	$	(8)	$	(28)
Current period changes in fair value, net of tax	(1)		25
Reclassification to income, net of tax	(1)		3
Balance at end of period	$	(10)	$	—
Pension and postretirement plans
Balance at beginning of period	$	(2)	$	(3)
Balance at end of period	$	(2)	$	(3)
Accumulated other comprehensive income (loss), end of period	$	(612)	$	(582)

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 December 31,
(in millions)	2021		2020
Beginning balance	$	240	$	43
Net income	13		6
Dividends	(31)		(14)
Change in redeemable noncontrolling interest	(186)		—
Foreign currency translation adjustments	5		7
Ending balance	$	41	$	42

Refer to Note 3, "Acquisitions and Divestitures," of the notes to the consolidated financial statements for additional information on the change in redeemable noncontrolling interest during the three months ended December 31, 2021.