Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Tax, Domestic and Foreign

Consolidated income (loss) before income taxes and noncontrolling interests for the years ended September 30, 2022, 2021, and 2020 is as follows:

	Year Ended September 30,
(in millions)	2022		2021		2020
Ireland	$	(2)	$	(1)	$	(3)
United States	(595)		(244)		(111)
Other Foreign	651		1,684		(315)
Income before income taxes and noncontrolling interests	$	54	$	1,439	$	(429)

Schedule of Components of the Provision (Benefit) for Income Taxes

The components of the provision (benefit) for income taxes are as follows:

	Year Ended September 30,
(in millions)	2022		2021		2020
Current
Ireland	$	(1)	$	1	$	—
US - Federal and State	6		1		(1)
Other Foreign	84		207		91
	89		209		90
Deferred
Ireland	1		1		—
US - Federal and State	(1)		(1)		—
Other Foreign	5		40		(33)
	5		40		(33)
Income tax provision	$	94	$	249	$	57

Schedule of Effective Tax Rate Reconciliation

The reconciliation between the Irish statutory income tax rate, and Adient’s effective tax rate is as follows:

	Year Ended September 30,
(in millions)	2022		2021		2020
Tax expense at Ireland statutory rate	$	7	$	180	$	(54)
State and local income taxes, net of federal benefit	(38)		(15)		(30)
Foreign tax rate differential	(1)		(6)		(127)
Notional interest deduction	(6)		(10)		(44)
Credits and incentives	(15)		(11)		(7)
Goodwill impairment	—		—		9
Repatriation of foreign earnings	24		18		18
Foreign exchange	(2)		—		(1)
Impact of tax rate changes	(3)		(26)		(3)
Audit settlements and change in uncertain tax positions	(2)		24		56
Change in valuation allowance	94		(85)		332
Impairment of subsidiaries	—		35		(24)
Tax impact of corporate equity and business restructuring transactions	30		133		(77)
Other	6		12		9
Income tax provision	$	94	$	249	$	57

Schedule of Deferred Taxes

Deferred taxes are classified in the consolidated statements of financial position as follows:

	September 30,
(in millions)	2022		2021
Other noncurrent assets	$	111	$	134
Other noncurrent liabilities	(198)		(212)
Net deferred tax asset/(liability)	$	(87)	$	(78)

Schedule of Temporary Differences and Carryforwards

Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities included:

	September 30,
(in millions)	2022		2021
Deferred tax assets:
Accrued expenses and reserves	$	87	$	126
Employee and retiree benefits	38		52
Net operating loss and other credit carryforwards	1,226		1,056
Property, plant and equipment	113		159
Intangible assets	150		181
Operating lease liabilities	61		79
Research and development	27		23
Other	2		12
	1,704		1,688
Valuation allowances	(1,662)		(1,637)
	42		51
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries	35		32
Indirect tax credits	25		18
Foreign currency adjustments	8		—
Operating lease right-of-use assets	61		79
	129		129
Net deferred tax asset/(liability)	$	(87)	$	(78)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended September 30,
(in millions)	2022		2021		2020
Beginning balance	$	499	$	483	$	414
Additions for tax positions related to the current year	62		29		96
Additions for tax positions of prior years	2		11		17
Reductions for tax positions of prior years	(52)		(9)		(38)
Settlements with taxing authorities	(3)		(12)		(4)
Statute closings	(9)		(3)		(2)
Ending balance	$	499	$	499	$	483