Leases

9 Months Ended

Jun. 30, 2024

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 for the three and nine months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
(in millions)	2024		2023		2024		2023




Operating lease cost	$	27	$	27	$	81	$	81
Short-term lease cost	6		9		21		23

Total lease cost	$	33	$	36	$	102	$	104

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


(in millions)		June 30, 2024			September 30, 2023
Operating leases:
Operating lease right-of-use assets	Other noncurrent assets	$	248		$	241

Operating lease liabilities - current	Other current liabilities	$	79		$	77
Operating lease liabilities - noncurrent	Other noncurrent liabilities	168			163
		$	247		$	240





Weighted average remaining lease term:
Operating leases		5 years			5 years


Weighted average discount rate:
Operating leases		6.3		%	6.1		%

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, 2024 are as follows:


	Operating leases
Fiscal years (in millions)	June 30, 2024
2024 (excluding the nine months ended June 30, 2024)	$	26
2025	85
2026	61
2027	42
2028	26
Thereafter	61
Total lease payments	301
Less: imputed interest	(54)
Present value of lease liabilities	$	247

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended June 30,
(in millions)	2024		2023
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)	$	64	$	28


Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities	$	82	$	81