Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

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, 2023, 2022, and 2021 is as follows:

	Year Ended September 30,
(in millions)	2023		2022		2021
Ireland	$	(1)	$	(2)	$	(1)
United States	(178)		(595)		(244)
Other Foreign	474		651		1,684
Income before income taxes and noncontrolling interests	$	295	$	54	$	1,439

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)	2023		2022		2021
Current
Ireland	$	—	$	(1)	$	1
US - Federal and State	4		6		1
Other Foreign	120		84		207
	124		89		209
Deferred
Ireland	—		1		1
US - Federal and State	1		(1)		(1)
Other Foreign	(125)		5		40
	(124)		5		40
Income tax provision	$	—	$	94	$	249

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)	2023		2022		2021
Tax expense at Ireland statutory rate	$	37	$	7	$	180
State and local income taxes, net of federal benefit	(5)		(38)		(15)
Foreign tax rate differential	22		(1)		(6)
Notional interest deduction	(6)		(6)		(10)
Credits and incentives	(7)		(15)		(11)
Repatriation of foreign earnings	24		24		18
Foreign exchange	(7)		(2)		—
Impact of tax rate changes	—		(3)		(26)
Audit settlements and change in uncertain tax positions	(8)		(2)		24
Change in valuation allowance	(61)		94		(85)
Impairment of subsidiaries	—		—		35
Tax impact of corporate equity and business restructuring transactions	1		30		133
Other	10		6		12
Income tax provision	$	—	$	94	$	249

Schedule of Deferred Taxes

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

	September 30,
(in millions)	2023		2022
Other noncurrent assets	$	253	$	111
Other noncurrent liabilities	(206)		(198)
Net deferred tax asset/(liability)	$	47	$	(87)

Schedule of Temporary Differences and Carryforwards

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

	September 30,
(in millions)	2023		2022
Deferred tax assets:
Accrued expenses and reserves	$	135	$	87
Employee and retiree benefits	25		38
Net operating loss and other credit carryforwards	1,293		1,226
Property, plant and equipment	113		113
Intangible assets	132		150
Operating lease liabilities	55		61
Research and development	66		27
Other	—		2
	1,819		1,704
Valuation allowances	(1,655)		(1,662)
	164		42
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries	38		35
Indirect tax credits	10		25
Foreign currency adjustments	—		8
Operating lease right-of-use assets	55		61
Other	14		—
	117		129
Net deferred tax asset/(liability)	$	47	$	(87)

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)	2023		2022		2021
Beginning balance	$	499	$	499	$	483
Additions for tax positions related to the current year	2		62		29
Additions for tax positions of prior years	50		2		11
Reductions for tax positions of prior years	(5)		(52)		(9)
Settlements with taxing authorities	(11)		(3)		(12)
Statute closings	(8)		(9)		(3)
Ending balance	$	527	$	499	$	499