Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2023

Projected benefit payments from the plans as of September 30, 2023 are estimated as follows (in millions):

Adient's plan assets by asset category, are as follows:


	Fair Value Measurements Using:
(in millions)	Total as of September 30, 2023		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV)
Pension
Cash	$	6	$	6	$	—	$	—	$	—
Equity Securities
Domestic	1		1		—		—		—
International - Developed	17		17		—		—		—

Fixed Income Securities
Government	128		30		75		—		23
Corporate/Other	59		24		25		—		10
Hedge Fund	34		—		34		—		—
Real Estate	18		—		—		4		14
Total	$	263	$	78	$	134	$	4	$	47


	Fair Value Measurements Using:
(in millions)	Total as of September 30, 2022		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV)
Pension
Cash	$	2	$	2	$	—	$	—	$	—
Equity Securities
Domestic	1		1		—		—		—
International - Developed	18		14		—		—		4
International - Emerging	1		—		—		—		1
Fixed Income Securities
Government	125		33		67		—		25
Corporate/Other	76		22		43		—		11
Hedge Fund	38		—		38		—		—
Real Estate	22		—		—		7		15
Total	$	283	$	72	$	148	$	7	$	56

The following sets forth a summary of changes in the fair value of pension assets measured using significant unobservable inputs (Level 3):

The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status:


	Pension Benefits
(in millions)	2023		2022
Accumulated Benefit Obligation	$	331	$	322
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	340	$	574
Service cost	5		7
Interest cost	18		11

Actuarial (gain) loss	(15)		(169)
Benefits paid	(20)		(20)
Curtailments, settlements and other	(6)		—

Currency translation adjustment	27		(63)
Projected benefit obligation at end of year	$	349	$	340
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	283	$	493
Actual return on plan assets	(23)		(149)
Employer contributions, net	17		16
Benefits paid	(20)		(20)
Curtailments, settlements and other	(14)		(1)

Currency translation adjustment	20		(56)
Fair value of plan assets at end of year	$	263	$	283
Funded status	$	(86)	$	(57)
Amounts recognized in the statement of financial position consist of:
Pension plan assets (other noncurrent assets)	$	22	$	35
Pension benefits ($16 million in accrued compensation and benefits)	(108)		(92)
Net amount recognized	$	(86)	$	(57)


	Pension Benefits
	U.S. Plans				Non-U.S. Plans
	2023		2022		2023		2022
Weighted Average Assumptions (1):
Discount rate (2)	5.87	%	5.51	%	5.60	%	4.98	%
Rate of compensation increase	N/A		N/A		4.53	%	4.43	%


(1)			Plan assets and obligations are determined based on a September 30 measurement date.

(2)			Adient considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, Adient uses different discount rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S. pension plan, Adient uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension plans, Adient consistently uses the relevant country specific benchmark indices for determining the various discount rates.

The tables that follow contain the components and key assumptions of net periodic benefit cost related to Adient’s pension plans:


	Pension Benefits
(in millions)	2023		2022		2021
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	5	$	7	$	8
Interest cost	18		10		9
Expected return on plan assets	(12)		(14)		(18)
Net actuarial (gain) loss	19		(7)		(15)
Settlement (gain) loss	8		1		—
Net periodic benefit cost (credit)	$	38	$	(3)	$	(16)


	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	2023		2022		2021		2023		2022		2021
Expense Assumptions:
Discount rate	5.51	%	3.06	%	2.91	%	4.98	%	2.14	%	1.70	%
Expected return on plan assets	6.75	%	6.75	%	5.75	%	4.53	%	3.20	%	3.68	%
Rate of compensation increase	N/A		N/A		NA		4.43	%	4.05	%	4.15	%