Leases

9 Months Ended

Jun. 30, 2022

7. Leases

Adient's lease portfolio consists of operating leases for real estate including production facilities, warehouses and administrative offices, equipment such as forklifts and computer servers and laptops, and fleet vehicles.

The components of lease costs included in the consolidated statement of income (loss) for the three and nine months ended June 30, 2022 and 2021 were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
(in millions)	2022		2021		2022		2021




Operating lease cost	$	32	$	32	$	90	$	94
Short-term lease cost	2		4		14		16

Total lease cost	$	34	$	36	$	104	$	110

Operating lease right-of-use assets and lease liabilities included in the consolidated statement of financial position were as follows:


(in millions)		June 30, 2022			September 30, 2021
Operating leases:
Operating lease right-of-use assets	Other noncurrent assets	$	293		$	335

Operating lease liabilities - current	Other current liabilities	$	85		$	89
Operating lease liabilities - noncurrent	Other noncurrent liabilities	209			246
		$	294		$	335





Weighted average remaining lease term:
Operating leases		6 years			6 years


Weighted average discount rate:
Operating leases		5.4		%	5.2		%

Maturities of operating lease liabilities and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year as of June 30, 2022 are as follows:


	Operating leases
Fiscal years (in millions)	June 30, 2022
2022 (excluding the nine months ended June 30, 2022)	$	26
2023	89
2024	66
2025	47
2026	31
Thereafter	81
Total lease payments	340
Less: imputed interest	(46)
Present value of lease liabilities	$	294

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended June 30,
(in millions)	2022		2021
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)	$	38	$	102


Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities	$	89	$	96