Segment Information

3 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

15. 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.

	Three Months Ended December 31,
(in millions)	2021		2020
Net Sales
Americas	$	1,498	$	1,737
EMEA	1,230		1,604
Asia	784		554
Eliminations	(32)		(47)
Total net sales	$	3,480	$	3,848

	Three Months Ended December 31,
(in millions)	2021		2020
Adjusted EBITDA
Americas	$	9	$	132
EMEA	43		114
Asia	114		151
Corporate-related costs (1)	(20)		(19)
Restructuring and impairment costs (2)	(4)		(7)
Purchase accounting amortization (3)	(14)		(11)
Restructuring related charges (4)	(1)		(4)
Depreciation	(75)		(70)
Stock based compensation	(10)		(13)
Other items (5)	(2)		9
Earnings (loss) before interest and income taxes	40		282
Net financing charges	(50)		(59)
Other pension income (expense)	1		2
Income (loss) before income taxes	$	(9)	$	225

Notes:

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

(2) Reflects qualified 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. During the three months ended December 31, 2021 and 2020, a held-for-sale impairment charge of $7 million and $6 million, respectively, was recorded in EMEA.

(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.

(5) The three months ended December 31, 2021 reflects $2 million of transaction costs. The three months ended December 31, 2020 reflects a one-time gain of $8 million associated with retrospective recoveries of Brazil indirect tax credits resulting from a favorable court ruling, a $5 million gain on previously held interest at YFAS in an affiliate, and $4 million of transaction costs.

Geographic Information

Revenue by geographic area is as follows:

Net Sales
	Three Months Ended December 31,
(in millions)	2021		2020
Americas
United States	$	1,331	$	1,548
Mexico	541		641
Other Americas	91		92
Regional elimination	(465)		(544)
	1,498		1,737
EMEA
Germany	233		314
Czech Republic	267		338
Other EMEA	1,039		1,385
Regional elimination	(309)		(433)
	1,230		1,604
Asia
Thailand	135		105
China	414		189
Japan	35		89
Other Asia	206		177
Regional elimination	(6)		(6)
	784		554
Inter-segment elimination	(32)		(47)
Total	$	3,480	$	3,848

The increase in net sales in China is attributable to the consolidation of CQADNT beginning October 1, 2021. Refer to Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements for additional information.