FORM |
(exact name of Registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | ||||||||
(Registrant's telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading symbol | Name of exchange on which registered | ||||||
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
PART I - FINANCIAL INFORMATION |
Item 1. | Unaudited Financial Statements |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Restructuring and impairment costs | ||||||||||||||||||||||||||
Equity income | ||||||||||||||||||||||||||
Earnings before interest and income taxes | ||||||||||||||||||||||||||
Net financing charges | ||||||||||||||||||||||||||
Other pension expense (income) | ||||||||||||||||||||||||||
Income (loss) before income taxes | ( | |||||||||||||||||||||||||
Income tax provision (benefit) | ||||||||||||||||||||||||||
Net income (loss) | ( | ( | ||||||||||||||||||||||||
Income attributable to noncontrolling interests | ||||||||||||||||||||||||||
Net income (loss) attributable to Adient | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Shares used in computing earnings per share: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||||||||||||||
Realized and unrealized gains (losses) on derivatives | ( | |||||||||||||||||||||||||
Other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Total comprehensive income (loss) | ( | |||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | ||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Adient | $ | ( | $ | $ | ( | $ |
(in millions, except share and per share data) | March 31, 2024 | September 30, 2023 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable - net | ||||||||||||||
Inventories | ||||||||||||||
Other current assets | ||||||||||||||
Current assets | ||||||||||||||
Property, plant and equipment - net | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets - net | ||||||||||||||
Investments in partially-owned affiliates | ||||||||||||||
Assets held for sale | ||||||||||||||
Other noncurrent assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||
Short-term debt | $ | $ | ||||||||||||
Current portion of long-term debt | ||||||||||||||
Accounts payable | ||||||||||||||
Accrued compensation and benefits | ||||||||||||||
Other current liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Pension and postretirement benefits | ||||||||||||||
Other noncurrent liabilities | ||||||||||||||
Long-term liabilities | ||||||||||||||
Commitments and Contingencies (Note 17) | ||||||||||||||
Redeemable noncontrolling interests | ||||||||||||||
Preferred shares issued, par value $ | ||||||||||||||
Ordinary shares issued, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated deficit | ( | ( | ||||||||||||
Accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
Shareholders' equity attributable to Adient | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total shareholders' equity | ||||||||||||||
Total liabilities and shareholders' equity | $ | $ |
Six Months Ended March 31, | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Operating Activities | ||||||||||||||
Net income (loss) attributable to Adient | $ | ( | $ | ( | ||||||||||
Income attributable to noncontrolling interests | ||||||||||||||
Net income (loss) | ( | |||||||||||||
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Amortization of intangibles | ||||||||||||||
Pension and postretirement expense (benefit) | ||||||||||||||
Pension and postretirement contributions, net | ( | ( | ||||||||||||
Equity in earnings of partially-owned affiliates, net of dividends received | ( | ( | ||||||||||||
Impairment of interests in nonconsolidated partially owned affiliates | ||||||||||||||
Premium paid on repurchase of debt | ||||||||||||||
Deferred income taxes | ( | ( | ||||||||||||
Equity-based compensation | ||||||||||||||
Other | ||||||||||||||
Changes in assets and liabilities, excluding impact of acquisitions/divestitures: | ||||||||||||||
Receivables | ( | ( | ||||||||||||
Inventories | ||||||||||||||
Other assets | ( | ( | ||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Accrued income taxes | ( | |||||||||||||
Cash provided (used) by operating activities | ||||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Sale of property, plant and equipment | ||||||||||||||
Acquisition of businesses, net of cash acquired | ( | |||||||||||||
Business divestitures | ( | |||||||||||||
Other | ( | |||||||||||||
Cash provided (used) by investing activities | ( | ( | ||||||||||||
Financing Activities | ||||||||||||||
Increase (decrease) in short-term debt | ( | ( | ||||||||||||
Increase (decrease) in long-term debt | ||||||||||||||
Repayment of long-term debt | ( | ( | ||||||||||||
Debt financing costs | ( | ( | ||||||||||||
Share repurchases | ( | ( | ||||||||||||
Dividends paid to noncontrolling interests | ( | ( | ||||||||||||
Share based compensation and other | ( | ( | ||||||||||||
Cash provided (used) by financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ||||||||||||||
Increase (decrease) in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
1. Organization and Summary of Significant Accounting Policies |
(in millions) | March 31, 2024 | September 30, 2023 | ||||||||||||
Current assets | $ | $ | ||||||||||||
Noncurrent assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Current liabilities | $ | $ | ||||||||||||
Noncurrent liabilities | ||||||||||||||
Total liabilities | $ | $ |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Income available to shareholders | ||||||||||||||||||||||||||
Net income (loss) attributable to Adient | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Basic weighted average shares outstanding | ||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Stock options, unvested restricted stock and unvested performance share awards | ||||||||||||||||||||||||||
Diluted weight average shares outstanding | ||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( |
Standard to be Adopted | Description | Date Effective | ||||||||||||
ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures | The ASU requires additional disclosures on significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”). The ASU also requires additional disclosures of an amount for other segment items by reportable segment and a description of its composition. | October 1, 2024 | ||||||||||||
ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. | The ASU requires disclosure of additional details about the reporting entity's reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. The ASU also requires further disaggregation of income tax amounts paid by federal, state and foreign, as well as by material jurisdiction. | October 1, 2025 |
Standard to be Adopted | Description | Date Effective | ||||||||||||
SEC Climate Disclosure Rules Final Rule 33-11275 | In March 2024, the SEC adopted the final rule surrounding disclosures of the impacts and risks of climate-related matters that have a material impact on Adient's operations and consolidated financial statements. These disclosures would be required in annual reports and registration statements and would discuss Scope 1 and Scope 2 greenhouse gas emissions along with other climate-related information such as severe weather events and other natural conditions. In April 2024, the SEC voluntarily stayed the climate disclosure rules pending judicial review. Adient is monitoring the outcome and evaluating the impact of these rules on its consolidated financial statements and related disclosures. | October 1, 2025 (under final rules which are now stayed) |
2. Revenue Recognition |
3. Acquisitions and Divestitures |
4. Inventories |
(in millions) | March 31, 2024 | September 30, 2023 | ||||||||||||
Raw materials and supplies | $ | $ | ||||||||||||
Work-in-process | ||||||||||||||
Finished goods | ||||||||||||||
Inventories | $ | $ |
5. Goodwill and Other Intangible Assets |
(in millions) | Americas | EMEA | Asia | Total | ||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||
Business divestiture (1) | ( | ( | ||||||||||||||||||||||||
Currency translation and other | ||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ |
March 31, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||
Intangible assets | ||||||||||||||||||||||||||||||||||||||
Patented technology | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Customer relationships | ( | ( | ||||||||||||||||||||||||||||||||||||
Trademarks | ( | |||||||||||||||||||||||||||||||||||||
Miscellaneous | ( | ( | ||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
6. Product Warranties |
Six Months Ended March 31, | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Accruals for warranties issued during the period | ||||||||||||||
Settlements made (in cash or in kind) during the period | ( | ( | ||||||||||||
Balance at end of period | $ | $ |
7. Leases |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term lease cost | ||||||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
(in millions) | March 31, 2024 | September 30, 2023 | ||||||||||||||||||
Operating leases: | ||||||||||||||||||||
Operating lease right-of-use assets | $ | $ | ||||||||||||||||||
Operating lease liabilities - current | $ | $ | ||||||||||||||||||
Operating lease liabilities - noncurrent | ||||||||||||||||||||
$ | $ | |||||||||||||||||||
Weighted average remaining lease term: | ||||||||||||||||||||
Operating leases | ||||||||||||||||||||
Weighted average discount rate: | ||||||||||||||||||||
Operating leases | % | % | ||||||||||||||||||
Operating leases | ||||||||
Fiscal years (in millions) | March 31, 2024 | |||||||
2024 (excluding the six months ended March 31, 2024) | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total lease payments | ||||||||
Less: imputed interest | ( | |||||||
Present value of lease liabilities | $ |
Six Months Ended March 31, | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||
Operating leases (non-cash activity) | $ | $ | ||||||||||||
Operating cash flows: | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | ||||||||||||
8. Debt and Financing Arrangements |
(in millions) | March 31, 2024 | September 30, 2023 | ||||||||||||
Long-term debt: | ||||||||||||||
$ | $ | |||||||||||||
Term Loan B due in 2031 | ||||||||||||||
Other bank borrowings and finance lease obligations | ||||||||||||||
Less: debt issuance costs | ( | ( | ||||||||||||
Gross long-term debt | ||||||||||||||
Less: current portion | ||||||||||||||
Net long-term debt | $ | $ | ||||||||||||
Short-term debt: | ||||||||||||||
Other bank borrowings | $ | $ | ||||||||||||
Total short-term debt | $ | $ |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Interest expense, net of capitalized interest costs | $ | $ | $ | $ | ||||||||||||||||||||||
Banking fees and debt issuance cost amortization | ||||||||||||||||||||||||||
Interest income | ( | ( | ( | ( | ||||||||||||||||||||||
Premium paid on repurchase of debt | ||||||||||||||||||||||||||
Net foreign exchange | ||||||||||||||||||||||||||
Net financing charges | $ | $ | $ | $ |
9. Derivative Instruments and Hedging Activities |
Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815 | Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815 | |||||||||||||||||||||||||
(in millions) | March 31, 2024 | September 30, 2023 | March 31, 2024 | September 30, 2023 | ||||||||||||||||||||||
Foreign currency exchange derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Foreign currency exchange derivatives | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Foreign currency exchange derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Foreign currency denominated debt | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Assets | Liabilities | |||||||||||||||||||||||||
(in millions) | March 31, 2024 | September 30, 2023 | March 31, 2024 | September 30, 2023 | ||||||||||||||||||||||
Gross amount recognized | $ | $ | $ | $ | ||||||||||||||||||||||
Gross amount eligible for offsetting | ( | ( | ( | ( | ||||||||||||||||||||||
Net amount | $ | $ | $ | $ |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Foreign currency exchange derivatives | $ | $ | $ | $ |
(in millions) | Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||
Foreign currency exchange derivatives | Cost of sales | $ | $ | $ | $ |
(in millions) | Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||
Foreign currency exchange derivatives | Net financing charges | $ | ( | $ | $ | $ |
(in millions) | Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||
Foreign currency exchange derivatives | Cost of sales | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Foreign currency exchange derivatives | Net financing charges | ( | ( | |||||||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ |
10. Fair Value Measurements |
Fair Value Measurements Using: | ||||||||||||||||||||||||||
(in millions) | Total as of March 31, 2024 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | ||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
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) | ||||||||||||||||||||||
Foreign currency exchange derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | $ | $ | $ | $ | ||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||
Foreign currency exchange derivatives | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
11. Equity and Noncontrolling Interests |
(in millions) | Ordinary Shares | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Shareholders' Equity Attributable to Adient | Shareholders' Equity Attributable to Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on derivatives | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Dividends attributable to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Share based compensation and other | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | $ |
(in millions) | Ordinary Shares | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Shareholders' Equity Attributable to Adient | Shareholders' Equity Attributable to Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on derivatives | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends attributable to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Share based compensation and other | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | $ |
(in millions) | Ordinary Shares | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Shareholders' Equity Attributable to Adient | Shareholders' Equity Attributable to Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on derivatives | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends attributable to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Share based compensation and other | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ |
(in millions) | Ordinary Shares | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Shareholders' Equity Attributable to Adient | Shareholders' Equity Attributable to Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses) on derivatives | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Dividends attributable to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Share based compensation and other | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Foreign currency translation adjustments | ||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Aggregate adjustment for the period, net of tax | ( | |||||||||||||||||||||||||
Balance at end of period (1) | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Realized and unrealized gains (losses) on derivatives | ||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | ( | |||||||||||||||||||||
Current period changes in fair value, net of tax | ||||||||||||||||||||||||||
Reclassification to income, net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | ||||||||||||||||||||||
Pension and postretirement plans | ||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Accumulated other comprehensive income (loss), end of period | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Net income (1) | ||||||||||||||||||||||||||
Dividends | ( | ( | ||||||||||||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
12. Retirement Plans |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Net actuarial and settlement/curtailment (gain) loss | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
13. Restructuring and Impairment Costs |
(in millions) | Employee Severance and Termination Benefits | Currency Translation | Total | |||||||||||||||||
Balance at December 31, 2023 | $ | $ | ( | $ | ||||||||||||||||
2024 Plan charges | ||||||||||||||||||||
Utilized - cash | ( | ( | ||||||||||||||||||
Noncash and other adjustments | ( | ( | ( | |||||||||||||||||
Balance at March 31, 2024 | $ | $ | ( | $ | ||||||||||||||||
Current restructuring reserve - other current liabilities | $ | |||||||||||||||||||
Noncurrent restructuring reserve - other noncurrent liabilities | ||||||||||||||||||||
Balance at March 31, 2024 | $ |
(in millions) | Employee Severance and Termination Benefits | Currency Translation | Total | |||||||||||||||||
Balance at September 30, 2023 | $ | $ | ( | $ | ||||||||||||||||
2024 Plan charges | ||||||||||||||||||||
Utilized - cash | ( | ( | ||||||||||||||||||
Noncash and other adjustments | ( | ( | ( | |||||||||||||||||
Balance at March 31, 2024 | $ | $ | ( | $ |
(in millions) | Employee Severance and Termination Benefits | Currency Translation | Total | |||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | ||||||||||||||||
2023 Plan charges | ||||||||||||||||||||
Utilized - cash | ( | ( | ||||||||||||||||||
Noncash and other adjustments | ||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | ( | $ | ||||||||||||||||
Current restructuring reserve - other current liabilities | $ | |||||||||||||||||||
Noncurrent restructuring reserve - other noncurrent liabilities | ||||||||||||||||||||
Balance at March 31, 2023 | $ |
(in millions) | Employee Severance and Termination Benefits | Currency Translation | Total | |||||||||||||||||
Balance at September 30, 2022 | $ | $ | ( | $ | ||||||||||||||||
2023 Plan charges | ||||||||||||||||||||
Utilized - cash | ( | ( | ||||||||||||||||||
Noncash and other adjustments | ||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | ( | $ |
14. Income Taxes |
15. Segment Information |
(in millions) | Americas | EMEA | Asia | Corporate/Eliminations | Consolidated | |||||||||||||||||||||||||||
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Six months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Six months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||
Americas | $ | $ | $ | $ | ||||||||||||||||||||||
EMEA | ||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||
Corporate-related costs (1) | ( | ( | ( | ( | ||||||||||||||||||||||
Restructuring and impairment costs (2) | ( | ( | ( | ( | ||||||||||||||||||||||
Purchase accounting amortization (3) | ( | ( | ( | ( | ||||||||||||||||||||||
Restructuring related charges (4) | ( | ( | ||||||||||||||||||||||||
Impairment of interests in nonconsolidated partially owned affiliates (5) | ( | ( | ||||||||||||||||||||||||
Depreciation | ( | ( | ( | ( | ||||||||||||||||||||||
Equity based compensation (6) | ( | ( | ( | ( | ||||||||||||||||||||||
Other items (7) | ( | |||||||||||||||||||||||||
Earnings before interest and income taxes | ||||||||||||||||||||||||||
Net financing charges | ( | ( | ( | ( | ||||||||||||||||||||||
Other pension income (expense) (8) | ( | ( | ( | ( | ||||||||||||||||||||||
Income (loss) before income taxes | $ | ( | $ | $ | $ |
Net Sales | ||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
Mexico | ||||||||||||||||||||||||||
Other Americas | ||||||||||||||||||||||||||
Regional elimination | ( | ( | ( | ( | ||||||||||||||||||||||
EMEA | ||||||||||||||||||||||||||
Germany | ||||||||||||||||||||||||||
Poland | ||||||||||||||||||||||||||
Czech Republic | ||||||||||||||||||||||||||
Other EMEA | ||||||||||||||||||||||||||
Regional elimination | ( | ( | ( | ( | ||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||
China | ||||||||||||||||||||||||||
Korea | ||||||||||||||||||||||||||
Thailand | ||||||||||||||||||||||||||
Japan | ||||||||||||||||||||||||||
Other Asia | ||||||||||||||||||||||||||
Regional elimination | ( | ( | ( | ( | ||||||||||||||||||||||
Inter-segment elimination | ( | ( | ( | ( | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
16. Nonconsolidated Partially-Owned Affiliates |
Six Months Ended March 31, | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Income statement data: | ||||||||||||||
Net sales | $ | $ | ||||||||||||
Gross profit | $ | $ | ||||||||||||
Net income | $ | $ | ||||||||||||
Net income attributable to the entity | $ | $ |
17. Commitments and Contingencies |
18. Related Party Transactions |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
Net sales to related parties | Net sales | $ | $ | $ | $ | |||||||||||||||||||||||||||
Purchases from related parties | Cost of sales |
(in millions) | March 31, 2024 | September 30, 2023 | ||||||||||||||||||
Accounts receivable due from related parties | Accounts receivable | $ | $ | |||||||||||||||||
Accounts payable due to related parties | Accounts payable | |||||||||||||||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Light Vehicle Production | ||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(units in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Global | 21.2 | 0.9 | % | 21.0 | 45.2 | 5.4 | % | 42.9 | ||||||||||||||||||||||||||||||
North America | 4.0 | 2.6 | % | 3.9 | 7.7 | 2.7 | % | 7.5 | ||||||||||||||||||||||||||||||
South America | 0.6 | (16.1) | % | 0.7 | 1.3 | (7.1) | % | 1.4 | ||||||||||||||||||||||||||||||
EMEA | 4.5 | (2.2) | % | 4.6 | 9.1 | 2.2 | % | 8.9 | ||||||||||||||||||||||||||||||
China | 6.2 | 8.8 | % | 5.7 | 15.0 | 15.4 | % | 13.0 | ||||||||||||||||||||||||||||||
Asia, excluding China, and Other | 5.9 | (3.3) | % | 6.1 | 12.1 | — | % | 12.1 | ||||||||||||||||||||||||||||||
Source: S&P Global, April 2024 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 3,750 | (4)% | $ | 3,912 | $ | 7,410 | (3)% | $ | 7,611 | ||||||||||||||||||||||||||||
Cost of sales | 3,520 | (4)% | 3,662 | 6,934 | (3)% | 7,130 | ||||||||||||||||||||||||||||||||
Gross profit | 230 | (8)% | 250 | 476 | (1)% | 481 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 115 | (18)% | 141 | 262 | (6)% | 279 | ||||||||||||||||||||||||||||||||
Restructuring and impairment costs | 125 | >100% | 17 | 136 | >100% | 24 | ||||||||||||||||||||||||||||||||
Equity income | 18 | >100% | 4 | 41 | 28% | 32 | ||||||||||||||||||||||||||||||||
Earnings before interest and income taxes | 8 | (92)% | 96 | 119 | (43)% | 210 | ||||||||||||||||||||||||||||||||
Net financing charges | 47 | (20)% | 59 | 91 | (9)% | 100 | ||||||||||||||||||||||||||||||||
Other pension expense (income) | 2 | —% | 2 | 4 | (64)% | 11 | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (41) | >(100%) | 35 | 24 | (76)% | 99 | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 8 | (68)% | 25 | 28 | (50)% | 56 | ||||||||||||||||||||||||||||||||
Net income (loss) | (49) | >(100%) | 10 | (4) | >(100%) | 43 | ||||||||||||||||||||||||||||||||
Income attributable to noncontrolling interests | 21 | (16)% | 25 | 46 | —% | 46 | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to Adient | $ | (70) | >(100%) | $ | (15) | $ | (50) | >(100%) | $ | (3) |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 3,750 | (4)% | $ | 3,912 | $ | 7,410 | (3)% | $ | 7,611 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Cost of sales | $ | 3,520 | (4)% | $ | 3,662 | $ | 6,934 | (3)% | $ | 7,130 | ||||||||||||||||||||||||||||
Gross profit | $ | 230 | (8)% | $ | 250 | $ | 476 | (1)% | $ | 481 | ||||||||||||||||||||||||||||
% of sales | 6.1% | 6.4% | 6.4 | % | 6.3 | % | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 115 | (18)% | $ | 141 | $ | 262 | (6)% | $ | 279 | ||||||||||||||||||||||||||||
% of sales | 3.1% | 3.6% | 3.5% | 3.7% | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Restructuring and impairment costs | $ | 125 | >100% | $ | 17 | $ | 136 | >100% | $ | 24 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Equity income | $ | 18 | >100% | $ | 4 | $ | 41 | 28% | $ | 32 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net financing charges | $ | 47 | (20)% | $ | 59 | $ | 91 | (9)% | $ | 100 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Other pension expense (income) | $ | 2 | —% | $ | 2 | $ | 4 | (64)% | $ | 11 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | $ | 8 | (68)% | $ | 25 | $ | 28 | (50)% | $ | 56 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Income attributable to noncontrolling interests | $ | 21 | (16)% | $ | 25 | $ | 46 | —% | $ | 46 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to Adient | $ | (70) | >(100%) | $ | (15) | $ | (50) | >(100%) | $ | (3) |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Adient | $ | (168) | >(100%) | $ | 28 | $ | (10) | >(100%) | $ | 155 |
(in millions) | Americas | EMEA | Asia | Corporate/Eliminations | Consolidated | |||||||||||||||||||||||||||
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Net sales | $ | 1,660 | $ | 1,370 | $ | 742 | $ | (22) | $ | 3,750 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 80 | $ | 57 | $ | 112 | $ | (22) | $ | 227 | ||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 1,761 | $ | 1,401 | $ | 774 | $ | (24) | $ | 3,912 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 72 | $ | 53 | $ | 113 | $ | (23) | $ | 215 | ||||||||||||||||||||||
Six months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Net sales | $ | 3,307 | $ | 2,638 | $ | 1,512 | $ | (47) | $ | 7,410 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 160 | $ | 102 | $ | 226 | $ | (45) | $ | 443 | ||||||||||||||||||||||
Six months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 3,485 | $ | 2,583 | $ | 1,595 | $ | (52) | $ | 7,611 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 141 | $ | 81 | $ | 251 | $ | (46) | $ | 427 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||
Americas | $ | 80 | $ | 72 | $ | 160 | $ | 141 | ||||||||||||||||||
EMEA | 57 | 53 | 102 | 81 | ||||||||||||||||||||||
Asia | 112 | 113 | 226 | 251 | ||||||||||||||||||||||
Subtotal | 249 | 238 | 488 | 473 | ||||||||||||||||||||||
Corporate-related costs (1) | (22) | (23) | (45) | (46) | ||||||||||||||||||||||
Restructuring and impairment costs (2) | (125) | (17) | (136) | (24) | ||||||||||||||||||||||
Purchase accounting amortization (3) | (13) | (14) | (24) | (26) | ||||||||||||||||||||||
Restructuring related charges (4) | (2) | — | 7 | (3) | ||||||||||||||||||||||
Impairment of interests in nonconsolidated partially owned affiliates (5) | — | (7) | — | (6) | ||||||||||||||||||||||
Depreciation | (70) | (71) | (142) | (140) | ||||||||||||||||||||||
Equity based compensation (6) | (10) | (10) | (23) | (18) | ||||||||||||||||||||||
Other items (7) | 1 | — | (6) | — | ||||||||||||||||||||||
Earnings before interest and income taxes | 8 | 96 | 119 | 210 | ||||||||||||||||||||||
Net financing charges | (47) | (59) | (91) | (100) | ||||||||||||||||||||||
Other pension income (expense) (8) | (2) | (2) | (4) | (11) | ||||||||||||||||||||||
Income before income taxes | $ | (41) | $ | 35 | $ | 24 | $ | 99 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 1,660 | (6)% | $ | 1,761 | $ | 3,307 | (5)% | $ | 3,485 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 80 | 11% | $ | 72 | $ | 160 | 13% | $ | 141 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 1,370 | (2)% | $ | 1,401 | $ | 2,638 | 2% | $ | 2,583 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 57 | 8% | $ | 53 | $ | 102 | 26% | $ | 81 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
(in millions) | 2024 | Change | 2023 | 2024 | Change | 2023 | ||||||||||||||||||||||||||||||||
Net sales | $ | 742 | (4)% | $ | 774 | $ | 1,512 | (5)% | $ | 1,595 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 112 | (1)% | $ | 113 | $ | 226 | (10)% | $ | 251 |
Six Months Ended March 31, | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Cash provided (used) by operating activities | $ | 122 | $ | 170 | ||||||||||
Cash provided (used) by investing activities | (113) | (111) | ||||||||||||
Cash provided (used) by financing activities | (221) | (218) | ||||||||||||
Capital expenditures | (124) | (117) | ||||||||||||
(in millions) | March 31, 2024 | September 30, 2023 | ||||||||||||
Current assets | $ | 4,125 | $ | 4,316 | ||||||||||
Current liabilities | 3,658 | 3,738 | ||||||||||||
Working capital | $ | 467 | $ | 578 | ||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
PART II - OTHER INFORMATION |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Periods | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares (or Units) that may yet be Purchased Under the Plans or Programs (in millions)(1) | ||||||||||||||||||||||
January 1 to January 31, 2024 | — | $ | — | — | $ | 435 | ||||||||||||||||||||
February 1 to February 29, 2024 | 1,460,990 | 34.22 | 1,460,990 | 385 | ||||||||||||||||||||||
March 1 to March 31, 2024 | — | — | — | 385 | ||||||||||||||||||||||
1,460,990 | $ | 33.32 | 1,460,990 | $ | 385 |
Item 3. | Defaults Upon Senior Securities |
None. |
Item 4. | Mine Safety Disclosures |
Not applicable. |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Exhibit Title | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
Adient plc | ||||||||
By: | /s/ Jerome J. Dorlack | |||||||
Jerome J. Dorlack | ||||||||
President and Chief Executive Officer | ||||||||
Date: | May 3, 2024 | |||||||
By: | /s/ Mark A. Oswald | |||||||
Mark A. Oswald | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Date: | May 3, 2024 |
Exhibit 31.1 | ||||||||||||||
Certification |
1 | I have reviewed this quarterly report on Form 10-Q of Adient plc; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4 | The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5 | The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | May 3, 2024 | |||||||||||||
By: | /s/ Jerome J. Dorlack | |||||||||||||
Jerome J. Dorlack | ||||||||||||||
President and Chief Executive Officer |
Exhibit 31.2 | ||||||||||||||
Certification |
1 | I have reviewed this quarterly report on Form 10-Q of Adient plc; |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4 | The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5 | The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | May 3, 2024 | |||||||||||||
By: | /s/ Mark A. Oswald | |||||||||||||
Mark A. Oswald | ||||||||||||||
Executive Vice President and Chief Financial Officer |
Exhibit 32.1 | ||||||||||||||
CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER | ||||||||||||||
PURSUANT TO | ||||||||||||||
18 U.S.C. SECTION 1350, | ||||||||||||||
AS ADOPTED PURSUANT TO | ||||||||||||||
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 |
Date: | May 3, 2024 | |||||||||||||
By: | /s/ Jerome J. Dorlack | |||||||||||||
Jerome J. Dorlack | ||||||||||||||
President and Chief Executive Officer |
Date: | May 3, 2024 | |||||||||||||
By: | /s/ Mark A. Oswald | |||||||||||||
Mark A. Oswald | ||||||||||||||
Executive Vice President and Chief Financial Officer |
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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (49) | $ 10 | $ (4) | $ 43 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (102) | 34 | 40 | 140 |
Realized and unrealized gains (losses) on derivatives | (6) | 14 | 3 | 39 |
Other comprehensive income (loss) | (108) | 48 | 43 | 179 |
Total comprehensive income (loss) | (157) | 58 | 39 | 222 |
Comprehensive income attributable to noncontrolling interests | 11 | 30 | 49 | 67 |
Comprehensive income (loss) attributable to Adient | $ (168) | $ 28 | $ (10) | $ 155 |
Consolidated Statements of Financial Position (Parenthetical) |
Mar. 31, 2024
$ / shares
shares
|
---|---|
Statement of Financial Position [Abstract] | |
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Common stock, par value (in usd per share) | $ / shares | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 |
Common stock, shares issued (in shares) | 89,823,637 |
Common stock, shares outstanding (in shares) | 89,823,637 |
Organization and Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies |
Adient is a global leader in the automotive seating supplier industry and maintains relationships with the largest global automotive original equipment manufacturers, or OEMs. Adient's proprietary technologies extend into virtually every area of automotive seating solutions, including complete seating systems, frames, mechanisms, foam, head restraints, armrests and trim covers. Adient is an independent seat supplier with global scale and the capability to design, develop, engineer, manufacture, and deliver complete seat systems and components in every major automotive producing region in the world. Basis of Presentation The unaudited consolidated financial statements of Adient have been prepared in accordance with the rules and regulations of the US Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These interim consolidated financial statements include all adjustments (consisting of normal recurring adjustments) that management believes are necessary for a fair statement of the results of operations, financial position and cash flows of Adient for the interim periods presented. Certain figures for comparative periods were regrouped to conform to current period presentation. Principles of Consolidation Adient consolidates its wholly-owned subsidiaries and those entities in which it has a controlling interest. Investments in partially-owned affiliates are accounted for by the equity method when Adient's interest exceeds 20% and does not have a controlling interest. Consolidated VIEs Based upon the criteria set forth in the Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC) 810, "Consolidation," Adient has determined that it was the primary beneficiary in two variable interest entities (VIEs) for the reporting periods ended March 31, 2024, and September 30, 2023, as Adient absorbs significant economics of the entities and has the power to direct the activities that are considered most significant to the entities. The two VIEs manufacture seating products in North America for the automotive industry. Adient funds the entities' short-term liquidity needs through revolving credit facilities and has the power to direct the activities that are considered most significant to the entities through its key customer supply relationships. The carrying amounts and classification of assets (none of which is restricted) and liabilities included in Adient's consolidated statements of financial position for the consolidated VIEs are as follows:
Earnings Per Share The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share:
Potentially dilutive securities whose effect would have been anti-dilutive are excluded from the computation of diluted earnings per share for the three and six months ended March 31, 2024 and 2023 as a result of being in a loss position. New Accounting Pronouncements Standards Adopted During Fiscal 2024 On October 1, 2023, Adient adopted Accounting Standards Codification (ASU) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires disclosures of key terms of Adient's material supplier finance program. Refer to Note 8, "Debt and Financing Arrangements," of the notes to consolidated financial statements for additional information. Standards Effective After Fiscal 2024 Adient has considered the new standards that are summarized below, each to be effective after fiscal 2024:
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Revenue Recognition |
6 Months Ended | ||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||
Revenue Recognition |
Adient generates revenue through the sale of automotive seating solutions, including complete seating systems and the components of complete seating systems. Adient provides production and service parts to its customers under awarded multi-year programs. The duration of a program is generally consistent with the life cycle of a vehicle, however, the program can be canceled at any time without cause by the customer. Programs awarded to Adient to supply parts to its customers do not contain a firm commitment by the customer for volume or price and do not reach the level of a performance obligation until Adient receives either a purchase order and/or a materials release from the customer for a specific number of parts at a specified price, at which point an enforceable contract exists. Sales revenue is generally recognized at the point in time when parts are shipped and control has transferred to the customer, at which point an enforceable right to payment exists. Contracts may provide for annual price reductions over the production life of the awarded program, and prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors. The amount of revenue recognized reflects the consideration that Adient expects to be entitled to in exchange for such products based on purchase orders, annual price reductions and ongoing price adjustments (some of which are accounted for as variable consideration and subject to being constrained), net of the impact, if any, of consideration paid to the customer. Approximately 1% of net sales recorded during the second quarter of fiscal 2024 were related to product sales transacted in prior periods. In a typical arrangement with the customer, purchase orders are issued for pre-production activities which consist of engineering, design and development, tooling and prototypes for the manufacture and delivery of component parts. Adient has concluded that these activities are not in the scope of ASC 606. Adient includes shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in cost of sales. Taxes collected from customers are excluded from revenue and credited directly to obligations to the appropriate government agencies. Payment terms with customers are established based on customary industry and regional practices and do not contain significant financing components. Contract assets primarily relate to the right to consideration for work completed, but not billed at the reporting date on contracts with customers. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been satisfied and revenue has not been recognized. No significant contract assets or liabilities exist at September 30, 2023 or at March 31, 2024. As described above, the issuance of a purchase order and/or a materials release by the customer represents the point at which an enforceable contract with the customer exists. Therefore, Adient has elected to apply the practical expedient in ASC 606, paragraph 606-10-50-14 and does not disclose information about the remaining performance obligations that have an original expected duration of one year or less. Refer to Note 15, "Segment Information," of the notes to consolidated financial statements for disaggregated revenue by geographical market.
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Acquisitions and Divestitures |
6 Months Ended | ||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||
Acquisitions and Divestitures |
In November 2023, Adient finalized the sale of 51% of its interest (previously held 100%) in Adient (Langfang) Seating Co., Ltd. ("LFADNT") in China for ¥44 million ($6 million), resulting in the deconsolidation of LFADNT, including $9 million of cash. Adient recorded an $8 million loss as a result of the transaction in the Asia segment, including $5 million of allocated goodwill. In April 2023, Adient completed the acquisition of Nantong Yanfeng Adient Seating Trim Co., Ltd. (“YFAT”) from KEIPER Seating Mechanisms Co., Ltd. (“KEIPER”) for ¥150 million ($23 million). Adient made an initial deposit of ¥75 million ($12 million) in fiscal 2022, which represents 50% of the purchase price (reflected within other current assets as of September 30, 2022). During fiscal 2023, Adient paid the remaining purchase price of ¥75 million ($11 million). The acquisition was accounted for using the acquisition method, and the operating results and cash flows of YFAT are included in Adient's consolidated financial statements starting from May 2023. The acquisition has provided additional synergies within the Asia segment. Adient recorded a purchase price allocation for the assets acquired and liabilities assumed based on their fair values as of the April 2023 acquisition date, which included $13 million of goodwill and $5 million of acquired cash. The allocation of the purchase price is based on the valuations performed to determine the fair value of the net assets as of the acquisition date. If the acquisition of YFAT had occurred on October 1, 2021, its impact on Adient's net sales and net income attributable to Adient for fiscal 2022 and fiscal 2023 would have been immaterial. Upon acquisition, YFAT was renamed as Adient (Nantong) Automotive Seating Components Co., Ltd.
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Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories consisted of the following:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets |
The changes in the carrying amount of goodwill are as follows:
(1) Refer to Note 3, "Acquisitions and Divestitures," for information on the sale of 51% of Adient's interest in LFADNT. Refer to Note 15, "Segment Information," of the notes to consolidated financial statements for more information on Adient's reportable segments. Adient's intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of:
Amortization of intangible assets for the six months ended March 31, 2024 and 2023 was $23 million and $25 million, respectively.
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Product Warranties |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties |
Adient offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that Adient replace defective products within a specified time period from the date of sale. Adient records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, Adient's warranty provisions are adjusted as necessary. Adient monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates. Adient's product warranty liability is recorded in the consolidated statements of financial position in other current liabilities. The changes in Adient's total product warranty liability are as follows:
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Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 six months ended March 31, 2024 and 2023 were as follows:
Operating lease right-of-use assets and lease liabilities included in the consolidated statement of financial position were as follows:
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 March 31, 2024 are as follows:
Supplemental cash flow information related to leases is as follows:
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Debt and Financing Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Financing Arrangements |
Long-term and short-term debt consisted of the following:
Adient US LLC ("Adient US"), a wholly owned subsidiary of Adient, together with certain of Adient's other subsidiaries, maintains an asset-based revolving credit facility (the "ABL Credit Facility"), which provides for a revolving line of credit up to $1,250 million, including a North American subfacility of up to $950 million and a European subfacility of up to $300 million, subject to borrowing base capacity and certain other restrictions, including a minimum fixed charge coverage ratio. The ABL Credit Facility, as amended in November 2022, is set to mature on November 2, 2027, subject to certain springing maturity provisions. Adient paid $7 million in debt issuance costs for the amended ABL Credit Facility and will pay a commitment fee of 0.25% to 0.375% on the unused portion of the commitments under the asset-based revolving credit facility based on average global availability. Letters of credit are limited to the lesser of (x) $150 million and (y) the aggregate unused amount of commitments under the ABL Credit Facility then in effect. Subject to certain conditions, the ABL Credit Facility may be expanded by up to $250 million in additional commitments. Loans under the ABL Credit Facility may be denominated, at the option of Adient, in U.S. dollars, Euros, Pounds Sterling or Swedish Kroner. It also provides flexibility for future amendments to the ABL Facility to incorporate certain sustainability-based pricing provisions. The ABL Credit Agreement is secured on a first-priority lien on all accounts receivable, inventory and bank accounts (and funds on deposit therein) and a second-priority lien on all of the tangible and intangible assets of certain Adient subsidiaries. Interest is payable on the ABL Credit Facility at a fluctuating rate of interest determined by reference to Term SOFR, in the case of amounts outstanding in dollars, EURIBOR, in the case of amounts outstanding in euros, STIBOR, in the case of amounts outstanding in Swedish krona and SONIA, in the case of amounts outstanding in pounds sterling, in each case, plus an applicable margin of 1.50% to 2.00%. As of March 31, 2024, Adient had not drawn down on the ABL Credit Facility and had availability under this facility of $974 million (net of $11 million of letters of credit). In addition, Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintains a senior secured term loan facility (the "Term Loan B Agreement"), that had an outstanding balance of $635 million as of September 30, 2023 and March 31, 2024. The Term Loan B Agreement permits Adient to incur incremental term loans in an aggregate amount not to exceed the greater of $750 million and an unlimited amount subject to a pro forma first lien secured net leverage ratio of not greater than 1.75 to 1.00 and certain other conditions. Interest on the Term Loan B Agreement accrues at Term SOFR plus an applicable margin. The Term Loan B Agreement was previously due on April 8, 2028. During the second quarter of fiscal 2024, the Term Loan B Agreement was amended to reduce the applicable margin from 3.25% to 2.75% and extend final maturity to January 31, 2031. Adient incurred $5 million of costs associated with the modification, of which $4 million was recorded as deferred financing costs. The ABL Credit Facility and Term Loan B Agreement contain covenants that are usual and customary for facilities and debt instruments of this type and that, among other things, restrict the ability of Adient and its restricted subsidiaries to: create certain liens and enter into sale and lease-back transactions; create, assume, incur or guarantee certain indebtedness; pay dividends or make other distributions on, or repurchase or redeem, Adient’s capital stock or certain other debt; make other restricted payments; and consolidate or merge with, or convey, transfer or lease all or substantially all of Adient’s and its restricted subsidiaries’ assets, to another person. These covenants are subject to a number of other limitations and exceptions set forth in the agreements. The agreements also provide for customary events of default, including, but not limited to, cross-default clauses with other debt arrangements, failure to pay principal and interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving Adient and its significant subsidiaries. During March 2023, Adient Global Holdings Ltd. ("AGH"), a wholly-owned subsidiary of Adient, issued (i) $500 million (net proceeds of $494 million) in aggregate principal amount of 7% senior secured notes due 2028 and (ii) $500 million (net proceeds of $494 million) in aggregate principal amount of 8.250% senior unsecured notes due 2031. Interest on both of these notes is paid on April 15 and October 15 each year, beginning on October 15, 2023. These notes contain covenants that are usual and customary. The total net proceeds of $988 million along with cash on hand were used primarily to redeem $350 million of the senior secured term loan facility under the Term Loan B Agreement, and repurchase €700 million ($743 million) of the 3.50% unsecured notes due 2024 as described below. Adient paid $16 million in debt issuance costs for these debt issuances. AGH also maintains 4.875% USD-denominated unsecured notes due 2026. The aggregate principal amount of these notes was $795 million as of March 31, 2024 and September 30, 2023. AGH also previously maintained €823 million aggregate principal amount of 3.50% unsecured notes due in August 2024. During March 2023, Adient repurchased €700 million ($743 million) of the 3.50% unsecured notes at a premium of €7 million ($7 million) plus €3 million ($3 million) of accrued and unpaid interest, and expensed €2 million ($2 million) of previously deferred financing costs to net financing charges. As of March 31, 2024, the remaining balance of this debt was €123 million ($133 million) and is classified as current portion of long-term debt on the consolidated statement of financial position. Net Financing Charges Adient's net financing charges in the consolidated statements of income contained the following components:
Total interest paid on both short and long-term debt for the six months ended March 31, 2024 and 2023 was $97 million and $80 million, respectively. Other Arrangements Adient enters into supply chain financing programs in certain domestic and foreign jurisdictions to either sell or discount accounts receivable without recourse to third-party institutions. Sales or discounts of accounts receivable are reflected as a reduction of accounts receivable on the consolidated statements of financial position and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. As of March 31, 2024, $131 million was funded under these programs compared to $170 million as of September 30, 2023. Adient also has a program with an external financial institution under which Adient's suppliers can sell their receivables from Adient to the financial institution at their sole discretion. Adient is not a party to the agreements between the participating suppliers and the financial institution. Adient's obligation under the program is to pay the original amounts of supplier invoices to the financial institution on the original invoice dates. No fees are paid and no assets are pledged by Adient. The payment terms for trade payables can range from 45 days to 120 days depending on types of services and goods being purchased. The payment terms for molds, dies and other tools that are acquired as part of pre-production activities are in general longer, and are normally dependent on the terms which Adient has agreed with its customers. As of March 31, 2024, and September 30, 2023, Adient's liabilities related to this program were $62 million and $50 million, respectively. Cash flows related to the program are all presented within operating activities in Adient's consolidated statements of cash flows.
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities |
Adient selectively uses derivative instruments to reduce Adient's market risk associated with changes in foreign currency. Under Adient's policy, the use of derivatives is restricted to those intended for hedging purposes; the use of any derivative instrument for speculative purposes is strictly prohibited. A description of each type of derivative utilized to manage Adient's risk is included in the following paragraphs. In addition, refer to Note 10, "Fair Value Measurements," of the notes to consolidated financial statements for information related to the fair value measurements and valuation methods utilized by Adient for each derivative type. Adient has global operations and participates in the foreign exchange markets to minimize its risk of loss from fluctuations in foreign currency exchange rates. Adient primarily uses foreign currency exchange contracts to hedge certain foreign exchange rate exposures. Adient hedges 70% to 90% of the nominal amount of each of its known foreign exchange transactional exposures. Gains and losses on derivative contracts offset gains and losses on underlying foreign currency exposures. These contracts have been designated as cash flow hedges under ASC 815, "Derivatives and Hedging," and the hedge gains or losses due to changes in fair value are initially recorded as a component of accumulated other comprehensive income (AOCI) and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings. All contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates at March 31, 2024 and September 30, 2023, respectively. The €123 million ($133 million) aggregate principal amount of 3.50% euro-denominated unsecured notes due 2024 was previously designated as a net investment hedge to selectively hedge portions of Adient's net investment in Europe. The currency effects of Adient's euro-denominated bonds were reflected in the AOCI account within shareholders' equity attributable to Adient where they offset gains and losses recorded on Adient's net investment in Europe. During the first quarter of fiscal 2024, Adient de-designated these notes as a net investment hedge concurrent with entering into a foreign exchange forward contract designated as a fair value hedge of the principal balance on the 3.50% notes. The impact of foreign currency changes on the notes and the contract are recorded in net financing charges until payment of the notes and maturity of the foreign exchange forward contract in August 2024. During the second quarter of fiscal 2024, Adient entered into a ¥685 million ($96 million) foreign exchange forward contract to selectively hedge portions of its net investment in China. The contract is set to mature in October 2024. The following table presents the location and fair values of derivative instruments and other amounts used in hedging activities included in Adient's consolidated statements of financial position:
Adient enters into International Swaps and Derivatives Associations (ISDA) master netting agreements with counterparties that permit the net settlement of amounts owed under the derivative contracts. The master netting agreements generally provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Adient has not elected to offset the fair value positions of the derivative contracts recorded in the consolidated statements of financial position. Collateral is generally not required of Adient or the counterparties under the master netting agreements. As of March 31, 2024 and September 30, 2023, no cash collateral was received or pledged under the master netting agreements. The gross and net amounts of derivative instruments and other amounts used in hedging activities are as follows:
The following table presents the effective portion of pretax gains (losses) recorded in other comprehensive income related to cash flow hedges:
The following table presents the location and amount of the effective portion of pretax gains (losses) on cash flow hedges reclassified from AOCI into Adient's consolidated statements of income:
During the next twelve months, $27 million of pretax gains on cash flow hedges are expected to be reclassified from AOCI into Adient's consolidated statements of income. The following table presents the location and amount of pretax gains (losses) on fair value hedge activity in Adient's consolidated statements of income:
The following table presents the location and amount of pretax gains (losses) on derivatives not designated as hedging instruments recognized in Adient's consolidated statements of income:
The effective portion of pretax gains (losses) recorded in currency translation adjustment ("CTA") within other comprehensive income (loss) related to net investment hedges was $1 million and $(2) million for the three months ended March 31, 2024 and 2023, respectively, and $(1) million and $(71) million for the six months ended March 31, 2024 and 2023, respectively. For the three and six months ended March 31, 2024 and 2023, no gains or losses were reclassified from CTA into income for Adient's outstanding net investment hedges. For the three and six months ended March 31, 2024 and 2023, no ineffectiveness was recognized in the consolidated statements of income resulting from cash flow hedges.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
ASC 820, "Fair Value Measurement," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Recurring Fair Value Measurements The following tables present Adient's fair value hierarchy for those assets and liabilities measured at fair value:
Valuation Methods Foreign currency exchange derivatives: Adient selectively hedges anticipated transactions and net investments that are subject to foreign exchange rate risk primarily using foreign currency exchange hedge contracts. The foreign currency exchange derivatives are valued under a market approach using publicized spot and forward prices. Changes in fair value on foreign exchange derivatives accounted for as hedging instruments under ASC 815 are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings. These contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates at March 31, 2024 and September 30, 2023, respectively. The changes in fair value of foreign currency exchange derivatives not designated as hedging instruments under ASC 815 are recorded in the consolidated statements of income. The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The fair value of long-term debt, which was $2.6 billion and $2.5 billion at March 31, 2024 and September 30, 2023, respectively, was determined primarily using market quotes classified as Level 1 inputs within the ASC 820 fair value hierarchy.
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Equity and Noncontrolling Interests |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Noncontrolling Interests |
For the three months ended March 31, 2024:
For the six months ended March 31, 2024:
For the three months ended March 31, 2023:
For the six months ended March 31, 2023:
The following table presents changes in AOCI attributable to Adient:
(1) Foreign currency translation adjustments as of March 31, 2024 and 2023 include gains on designated net investment hedge instruments of $1 million and $73 million, respectively. During the next twelve months, no gains or losses are expected to be reclassified from AOCI into Adient's consolidated statements of income. Adient consolidates certain subsidiaries in which the noncontrolling interest party has within their control the right to require Adient to redeem all or a portion of its interest in the subsidiary. These redeemable noncontrolling interests are reported at their estimated redemption value. Any adjustment to the redemption value impacts retained earnings but does not impact net income. Redeemable noncontrolling interests which are redeemable only upon future events, the occurrence of which is not currently probable, are recorded at carrying value. The following table presents changes in the redeemable noncontrolling interests:
(1) During the first quarter of fiscal 2024, a $5 million adjustment was recorded to increase income attributable to noncontrolling interest related to the three months ended September 30, 2023. Repurchases of Equity Securities In November 2022, Adient’s board of directors authorized the repurchase of the Company’s ordinary shares up to an aggregate purchase price of $600 million with no expiration date. Under the share repurchase authorization, Adient’s ordinary shares may be purchased either through discretionary purchases on the open market, by block trades or privately negotiated transactions. The number of ordinary shares repurchased, if any, and the timing of repurchases will depend on a number of factors, including share price, trading volume and general market conditions, as well as on working capital requirements, general business conditions and other factors. During fiscal year 2023, Adient repurchased and immediately retired 1,756,777 shares of its ordinary shares at an average purchase price per share of $37.00. The aggregate amount of cash paid to repurchase shares during fiscal year 2023 was $65 million, of which $28 million had been spent as of March 31, 2023. During the second quarter of fiscal 2024, Adient repurchased and immediately retired 1,460,990 shares of its ordinary shares at an average purchase price per share of $34.22. The aggregate amount of cash paid to repurchase shares during the second quarter of fiscal 2024 was $50 million. During the first six months of fiscal 2024, Adient repurchased and immediately retired 4,464,348 shares of its ordinary shares at an average purchase price per share of $33.60. The aggregate amount of cash paid to repurchase shares during fiscal year 2024 was $150 million. As of March 31, 2024, the remaining aggregate amount of authorized repurchases was $385 million.
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Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans |
Adient maintains non-contributory defined benefit pension plans covering primarily non-U.S. employees and a limited number of U.S. employees. The following table contains the components of net periodic benefit cost:
The interest cost, expected return on plan assets, and net actuarial and settlement/curtailment (gain) loss components of net periodic benefit cost are included in other pension expense (income) in the consolidated statements of income. During the first six months of fiscal 2023, Adient recorded an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.
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Restructuring and Impairment Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Impairment Costs |
To better align its resources with its overall strategies and reduce the cost structure of its global operations to address the softness in certain underlying markets, Adient commits to restructuring plans as necessary. Adient, in general, records costs associated with separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period. All other costs associated with restructuring activities are expensed as incurred. During the first six months of fiscal 2024, Adient committed to restructuring actions ("2024 Plan") resulting in charges of $138 million, including a charge of $127 million recorded during the three months ended March 31, 2024, which was offset by $2 million of prior-year underspend. The second quarter charges were almost entirely related to termination benefits in Europe. The 2024 Plan is being implemented in response to structural changes occurring in the European automotive market and to ensure Adient maintains a competitive cost structure by reducing operating, administrative and engineering costs, and increasing efficiencies. Restructuring actions associated with these specific plans will primarily occur in fiscal years 2025 and 2026 and are expected to be substantially complete by fiscal year 2027. Restructuring costs are included in restructuring and impairment costs in the consolidated statements of income. The following tables summarize the changes in Adient's restructuring reserve. For the three months ended March 31, 2024:
For the six months ended March 31, 2024:
For the three months ended March 31, 2023:
For the six months ended March 31, 2023:
Adient's management closely monitors its overall cost structure and continually analyzes each of its businesses for opportunities to consolidate current operations, improve operating efficiencies and locate facilities in low-cost countries in close proximity to customers. This ongoing analysis includes a review of its manufacturing, engineering, purchasing and administrative functions, as well as the overall global footprint for all its businesses. Future adverse developments in the automotive industry could impact Adient's liquidity position, lead to impairment charges and/or require additional restructuring of its operations.
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Income Taxes |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Income Taxes |
In calculating the provision for income taxes, Adient uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based on changes in facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. For the three and six months ended March 31, 2024, Adient’s income tax expense was $8 million equating to an effective tax rate of (20)%, and $28 million equating to an effective tax rate of 117%, respectively. The three and six month income tax expense was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances, partially offset by tax benefits from the release of uncertain tax positions due to audit closures. For the three and six months ended March 31, 2023. Adient’s income tax expense was $25 million equating to an effective tax rate of 71%, and $56 million equating to an effective tax rate of 57%. The three and six month income tax expense was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and foreign tax rate differentials. Valuation Allowances As a result of the Company's second quarter fiscal 2024 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other positive and negative evidence, Adient determined that no changes to valuation allowances were required. Adient reviews the realizability of its deferred tax assets on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or combined group recording the net deferred tax asset are considered, along with any other positive or negative evidence. All of the factors that Adient considers in evaluating whether and when to establish or release all or a portion of the deferred tax asset valuation allowance involve significant judgment. Since future financial results may differ from previous estimates, periodic adjustments to Adient's valuation allowances may be necessary. Given current earnings and anticipated future earnings at certain subsidiaries, the Company believes that there is a reasonable possibility that sufficient positive evidence may become available that would allow the release of all, or a portion of, valuation allowances at certain subsidiaries within the next twelve months. A release of valuation allowances, if any, would result in the recognition of certain deferred tax assets which could generate a material income tax benefit for the period in which such release is recorded. Uncertain Tax Positions At March 31, 2024, Adient had gross tax effected unrecognized tax benefits of $519 million. If recognized, $153 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest at March 31, 2024 was approximately $27 million (net of tax benefit). The interest and penalties accrued for the three and six months ended March 31, 2024 was $1 million and $3 million, respectively. Additionally, during the three and six months ended March 31, 2024, Adient recognized tax benefits of $14 million and $17 million, respectively, related to the release of uncertain tax positions due to audit closures. At March 31, 2023, Adient had gross tax effected unrecognized tax benefits of $522 million. If recognized, $125 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest at March 31, 2023 was approximately $27 million (net of tax benefit). The interest and penalties accrued for the three and six months ended March 31, 2023 was $2 million and $4 million, respectively. Adient recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.
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Segment Information |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: (i) Americas, which is inclusive of North America and South America; (ii) Europe, Middle East, and Africa ("EMEA"); and (iii) Asia Pacific/China ("Asia"). Adient evaluates the performance of its reportable segments using an adjusted EBITDA metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, restructuring and impairment costs, restructuring related-costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items ("Adjusted EBITDA"). Also, certain corporate-related costs are not allocated to the segments. The reportable segments are consistent with how management views the markets served by Adient and reflect the financial information that is reviewed by its chief operating decision maker. The following table summarizes net sales and adjusted EBITDA by reportable segment for the three and six months ended March 31, 2024 and 2023:
The following is a reconciliation of Adient's reportable segments' adjusted EBITDA to income before income taxes:
Notes: (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects restructuring charges for costs that are probable and reasonably estimable and one-time asset impairments related to restructuring activities. (3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income. (4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities. The six months ended March 31, 2024 includes a $10 million gain on sale of a restructured facility. (5) The three months ended March 31, 2023 reflects $4 million and $3 million of non-recurring impairment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively. The six months ended March 31, 2023 also reflects a $1 million non-recurring adjustment to certain of Adient's investments. (6) During the six months ended March 31, 2024, a $5 million adjustment was recorded to increase equity-based compensation expense related to a retired executive's equity awards that should have been recognized in periods prior to September 30, 2023. (7) The three months ended March 31, 2024 reflects $1 million of indirect tax recoveries in Brazil. The six months ended March 31, 2024 includes an $8 million loss on sale of 51% of Adient's interest in LFADNT (as described in Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements), and a $2 million one-time divestiture related tax impact at an affiliate, partially offset by a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil. (8) The six months ended March 31, 2023 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment. Geographic Information Revenue by geographic area is as follows:
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Nonconsolidated Partially-Owned Affiliates |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonconsolidated Partially-Owned Affiliates |
Investments in the net assets of nonconsolidated partially-owned affiliates are reported in the "Investments in partially-owned affiliates" line in the consolidated statements of financial position as of March 31, 2024 and September 30, 2023. Equity in the net income of nonconsolidated partially-owned affiliates are reported in the "Equity income" line in the consolidated statements of income for the three and six months ended March 31, 2024 and 2023, respectively. Adient maintains total investments in partially-owned affiliates of $330 million and $303 million at March 31, 2024 and September 30, 2023, respectively. Operating information for nonconsolidated partially-owned affiliates is as follows:
Refer to Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements for transactions involving Adient's investments in nonconsolidated partially-owned affiliates.
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Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Commitments and Contingencies |
Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability, casualty environmental, safety and health, intellectual property, employment, trade and other regulatory compliance, commercial and contractual matters, and various other matters. Although the outcome of any such lawsuit, claim or proceeding cannot be predicted with certainty and some may be disposed of unfavorably to Adient, it is management's opinion that none of these will have a material adverse effect on Adient's financial position, results of operations or cash flows. Costs related to such matters were not material to the periods presented. Adient accrues for potential environmental liabilities when it is probable a liability has been incurred and the amount of the liability is reasonably estimable. Reserves for environmental liabilities totaled $4 million and $4 million at March 31, 2024 and September 30, 2023, respectively. Adient reviews the status of its environmental sites on a quarterly basis and adjusts its reserves accordingly. Such potential liabilities accrued by Adient do not take into consideration possible recoveries of future insurance proceeds. They do, however, take into account the likely share other parties will bear at remediation sites. It is difficult to estimate Adient's ultimate level of liability at many remediation sites due to the large number of other parties that may be involved, the complexity of determining the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, the often quite lengthy periods over which eventual remediation may occur, and changing environmental laws. Nevertheless, Adient does not currently believe that any claims, penalties or costs in connection with known environmental matters will have a material adverse effect on Adient's financial position, results of operations or cash flows.
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Related Party Transactions |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions |
In the ordinary course of business, Adient enters into transactions with related parties, such as equity affiliates. Such transactions consist of the sale or purchase of goods and other arrangements. The following table sets forth the net sales to and purchases from related parties included in the consolidated statements of income:
The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position:
Average receivable and payable balances with related parties remained consistent with the period end balances shown above.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||||
Net income (loss) attributable to Adient | $ (70) | $ (15) | $ (50) | $ (3) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Summary of Significant Accounting Policies (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements of Adient have been prepared in accordance with the rules and regulations of the US Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These interim consolidated financial statements include all adjustments (consisting of normal recurring adjustments) that management believes are necessary for a fair statement of the results of operations, financial position and cash flows of Adient for the interim periods presented. Certain figures for comparative periods were regrouped to conform to current period presentation.
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Principles of Consolidations | Principles of Consolidation Adient consolidates its wholly-owned subsidiaries and those entities in which it has a controlling interest. Investments in partially-owned affiliates are accounted for by the equity method when Adient's interest exceeds 20% and does not have a controlling interest.
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Consolidated VIEs | Consolidated VIEs Based upon the criteria set forth in the Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC) 810, "Consolidation," Adient has determined that it was the primary beneficiary in two variable interest entities (VIEs) for the reporting periods ended March 31, 2024, and September 30, 2023, as Adient absorbs significant economics of the entities and has the power to direct the activities that are considered most significant to the entities. The two VIEs manufacture seating products in North America for the automotive industry. Adient funds the entities' short-term liquidity needs through revolving credit facilities and has the power to direct the activities that are considered most significant to the entities through its key customer supply relationships.
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New Accounting Pronouncements | New Accounting Pronouncements Standards Adopted During Fiscal 2024 On October 1, 2023, Adient adopted Accounting Standards Codification (ASU) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires disclosures of key terms of Adient's material supplier finance program. Refer to Note 8, "Debt and Financing Arrangements," of the notes to consolidated financial statements for additional information. Standards Effective After Fiscal 2024 Adient has considered the new standards that are summarized below, each to be effective after fiscal 2024:
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Organization and Summary of Significant Accounting Policies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Classifications of Assets and Liabilities for Consolidated VIEs | The carrying amounts and classification of assets (none of which is restricted) and liabilities included in Adient's consolidated statements of financial position for the consolidated VIEs are as follows:
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Schedule of Computation of Basic and Diluted Earnings Per Share | The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share:
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Schedule of New Accounting Pronouncements | Adient has considered the new standards that are summarized below, each to be effective after fiscal 2024:
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows:
(1) Refer to Note 3, "Acquisitions and Divestitures," for information on the sale of 51% of Adient's interest in LFADNT.
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Schedule of Intangible Assets | Adient's intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of:
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Product Warranties (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | The changes in Adient's total product warranty liability are as follows:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The components of lease costs included in the consolidated statement of income for the three and six months ended March 31, 2024 and 2023 were as follows:
Supplemental cash flow information related to leases is as follows:
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Schedule of Operating Lease Right of Use Assets and Operating Lease Liabilities | Operating lease right-of-use assets and lease liabilities included in the consolidated statement of financial position were as follows:
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Schedule of Operating Lease Liabilities and Minimum Payments | 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 March 31, 2024 are as follows:
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Debt and Financing Arrangements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Long-term and short-term debt consisted of the following:
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Schedule of Net Financing Charges | Adient's net financing charges in the consolidated statements of income contained the following components:
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Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of Derivative Instruments and Other Amounts | The following table presents the location and fair values of derivative instruments and other amounts used in hedging activities included in Adient's consolidated statements of financial position:
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Schedule of Gross and Net Amounts of Derivative Instruments and Other Amounts | The gross and net amounts of derivative instruments and other amounts used in hedging activities are as follows:
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Schedule of Effective Portion of Pretax Gains (Losses) | The following table presents the effective portion of pretax gains (losses) recorded in other comprehensive income related to cash flow hedges:
The following table presents the location and amount of the effective portion of pretax gains (losses) on cash flow hedges reclassified from AOCI into Adient's consolidated statements of income:
The following table presents the location and amount of pretax gains (losses) on fair value hedge activity in Adient's consolidated statements of income:
The following table presents the location and amount of pretax gains (losses) on derivatives not designated as hedging instruments recognized in Adient's consolidated statements of income:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Fair Value Hierarchy for Assets and Liabilities | The following tables present Adient's fair value hierarchy for those assets and liabilities measured at fair value:
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Equity and Noncontrolling Interests (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | For the three months ended March 31, 2024:
For the six months ended March 31, 2024:
For the three months ended March 31, 2023:
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Schedule of AOCI | The following table presents changes in AOCI attributable to Adient:
(1) Foreign currency translation adjustments as of March 31, 2024 and 2023 include gains on designated net investment hedge instruments of $1 million and $73 million, respectively. During the next twelve months, no gains or losses are expected to be reclassified from AOCI into Adient's consolidated statements of income.
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Schedule of Changes in Redeemable Noncontrolling Interest | The following table presents changes in the redeemable noncontrolling interests:
(1) During the first quarter of fiscal 2024, a $5 million adjustment was recorded to increase income attributable to noncontrolling interest related to the three months ended September 30, 2023.
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Retirement Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost | The following table contains the components of net periodic benefit cost:
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Restructuring and Impairment Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve | The following tables summarize the changes in Adient's restructuring reserve. For the three months ended March 31, 2024:
For the six months ended March 31, 2024:
For the three months ended March 31, 2023:
For the six months ended March 31, 2023:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information for Reportable Segments | The following table summarizes net sales and adjusted EBITDA by reportable segment for the three and six months ended March 31, 2024 and 2023:
The following is a reconciliation of Adient's reportable segments' adjusted EBITDA to income before income taxes:
Notes: (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects restructuring charges for costs that are probable and reasonably estimable and one-time asset impairments related to restructuring activities. (3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income. (4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities. The six months ended March 31, 2024 includes a $10 million gain on sale of a restructured facility. (5) The three months ended March 31, 2023 reflects $4 million and $3 million of non-recurring impairment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively. The six months ended March 31, 2023 also reflects a $1 million non-recurring adjustment to certain of Adient's investments. (6) During the six months ended March 31, 2024, a $5 million adjustment was recorded to increase equity-based compensation expense related to a retired executive's equity awards that should have been recognized in periods prior to September 30, 2023. (7) The three months ended March 31, 2024 reflects $1 million of indirect tax recoveries in Brazil. The six months ended March 31, 2024 includes an $8 million loss on sale of 51% of Adient's interest in LFADNT (as described in Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements), and a $2 million one-time divestiture related tax impact at an affiliate, partially offset by a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil. (8) The six months ended March 31, 2023 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.
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Schedule of Disaggregation of Revenue by Geographical Market | Revenue by geographic area is as follows:
|
Nonconsolidated Partially-Owned Affiliates (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Information of Nonconsolidated Partially-Owned Affiliates | Operating information for nonconsolidated partially-owned affiliates is as follows:
|
Related Party Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table sets forth the net sales to and purchases from related parties included in the consolidated statements of income:
The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position:
|
Organization and Summary of Significant Accounting Policies - Narrative (Details) - entity |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of VIE entities | 2 | 2 |
Organization and Summary of Significant Accounting Policies - Schedule of Carrying Amounts and Classifications of Assets and Liabilities for Consolidated VIEs (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Current assets | $ 4,125 | $ 4,316 |
Total assets | 9,278 | 9,424 |
Current liabilities | 3,658 | 3,738 |
Noncurrent liabilities | 3,160 | 3,083 |
VIEs | ||
Variable Interest Entity [Line Items] | ||
Current assets | 258 | 265 |
Noncurrent assets | 107 | 121 |
Total assets | 365 | 386 |
Current liabilities | 193 | 228 |
Noncurrent liabilities | 12 | 13 |
Total liabilities | $ 205 | $ 241 |
Organization and Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income available to shareholders | ||||
Net income (loss) attributable to Adient | $ (70) | $ (15) | $ (50) | $ (3) |
Weighted average shares outstanding | ||||
Basic weighted average shares outstanding (in shares) | 90.5 | 95.3 | 91.7 | 95.2 |
Stock options, unvested restricted stock and unvested performance share awards (in shares) | 0.0 | 0.0 | 0.0 | 0.0 |
Diluted weight average shares outstanding (in shares) | 90.5 | 95.3 | 91.7 | 95.2 |
Earnings (loss) per share: | ||||
Basic (in usd per share) | $ (0.77) | $ (0.16) | $ (0.55) | $ (0.03) |
Diluted (in usd per share) | $ (0.77) | $ (0.16) | $ (0.55) | $ (0.03) |
Revenue Recognition - Narratives (Details) |
6 Months Ended |
---|---|
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues related to prior year sales, percent | 1.00% |
Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 601 | $ 644 |
Work-in-process | 32 | 34 |
Finished goods | 158 | 163 |
Inventories | $ 791 | $ 841 |
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Nov. 30, 2023 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,094 | |
Business divestiture | (5) | |
Currency translation and other | 10 | |
Ending balance | 2,099 | |
Disposed of By Sale | Adient (Langfang) Seating Co., Ltd | ||
Goodwill [Roll Forward] | ||
Subsidiary, ownership percentage disposed | 51.00% | |
Adjusted EBITDA | ||
Goodwill [Roll Forward] | ||
Beginning balance | 609 | |
Business divestiture | 0 | |
Currency translation and other | 0 | |
Ending balance | 609 | |
EMEA | ||
Goodwill [Roll Forward] | ||
Beginning balance | 317 | |
Business divestiture | 0 | |
Currency translation and other | 9 | |
Ending balance | 326 | |
Asia | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,168 | |
Business divestiture | (5) | |
Currency translation and other | 1 | |
Ending balance | $ 1,164 |
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 650 | $ 670 |
Accumulated Amortization | (268) | (262) |
Net | 382 | 408 |
Patented technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 79 | 79 |
Accumulated Amortization | (35) | (32) |
Net | 44 | 47 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 547 | 550 |
Accumulated Amortization | (221) | (201) |
Net | 326 | 349 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | 17 |
Accumulated Amortization | 0 | (17) |
Net | 0 | 0 |
Miscellaneous | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 24 | 24 |
Accumulated Amortization | (12) | (12) |
Net | $ 12 | $ 12 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangibles | $ 23 | $ 25 |
Product Warranties (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 21 | $ 21 |
Accruals for warranties issued during the period | 4 | 4 |
Settlements made (in cash or in kind) during the period | (4) | (5) |
Balance at end of period | $ 21 | $ 20 |
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 27 | $ 28 | $ 54 | $ 54 |
Short-term lease cost | 8 | 6 | 15 | 14 |
Total lease cost | $ 35 | $ 34 | $ 69 | $ 68 |
Leases - Schedule of Operating Lease Right of Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 255 | $ 241 |
Operating lease liabilities - current | 81 | 77 |
Operating lease liabilities - noncurrent | 172 | 163 |
Present value of lease liabilities | $ 253 | $ 240 |
Weighted average remaining lease term: | ||
Operating leases | 5 years | 5 years |
Weighted average discount rate: | ||
Operating leases | 6.50% | 6.10% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Leases - Schedule of Operating Lease Liabilities and Minimum Payments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Operating leases | ||
2024 (excluding the six months ended March 31, 2024) | $ 51 | |
2025 | 79 | |
2026 | 55 | |
2027 | 38 | |
2028 | 24 | |
Thereafter | 57 | |
Total lease payments | 304 | |
Less: imputed interest | (51) | |
Present value of lease liabilities | $ 253 | $ 240 |
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases (non-cash activity) | $ 51 | $ 19 |
Operating cash flows: | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 55 | $ 55 |
Debt and Financing Arrangements - Schedule of Net Financing Charges (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Disclosure [Abstract] | ||||
Interest expense, net of capitalized interest costs | $ 46 | $ 48 | $ 94 | $ 89 |
Banking fees and debt issuance cost amortization | 5 | 7 | 9 | 11 |
Interest income | (6) | (5) | (15) | (9) |
Premium paid on repurchase of debt | 0 | 7 | 0 | 7 |
Net foreign exchange | 2 | 2 | 3 | 2 |
Net financing charges | $ 47 | $ 59 | $ 91 | $ 100 |
Derivative Instruments and Hedging Activities - Schedule of Gross and Net Amounts of Derivative Instruments and Other Amounts (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amount recognized, assets | $ 33 | $ 34 |
Gross amount eligible for offsetting, assets | (5) | (12) |
Net amount, assets | 28 | 22 |
Gross amount recognized, liabilities | 7 | 144 |
Gross amount eligible for offsetting, liabilities | (5) | (12) |
Net amount, liabilities | $ 2 | $ 132 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Billions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | $ 2.6 | $ 2.5 |
Equity and Noncontrolling Interests - Schedule of Changes in Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Beginning balance | $ 318 | $ 318 | |||
Dividends | $ (14) | $ (2) | (18) | $ (6) | |
Ending balance | 327 | 327 | |||
Restatement Adjustment | |||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Net income | 5 | ||||
Redeemable Noncontrolling Interest | |||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Beginning balance | 57 | 57 | 45 | 57 | 45 |
Net income | 7 | 9 | 20 | 16 | |
Dividends | 0 | 0 | (21) | (18) | |
Foreign currency translation adjustments | (6) | 1 | 2 | 12 | |
Ending balance | $ 58 | $ 57 | $ 55 | $ 58 | $ 55 |
Equity and Noncontrolling Interests - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Sep. 30, 2023 |
Nov. 30, 2022 |
|
Equity [Abstract] | |||||||
Aggregate amount | $ 600,000,000 | ||||||
Stock repurchased and retired during period (in shares) | 1,460,990 | 4,464,348 | 1,756,777 | ||||
Average repurchase price per share (in dollars per share) | $ 34.22 | $ 33.60 | $ 37.00 | ||||
Stock repurchased and retired during period, value | $ 28,000,000 | $ 50,000,000 | $ 150,000,000 | $ 65,000,000 | |||
Stock repurchased during period, value | $ 50,000,000 | $ 30,000,000 | 150,000,000 | $ 30,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 385,000,000 | $ 385,000,000 |
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 2 | $ 1 | $ 3 | $ 2 |
Interest cost | 5 | 5 | 10 | 9 |
Expected return on plan assets | (3) | (3) | (6) | (6) |
Net actuarial and settlement/curtailment (gain) loss | 0 | 0 | 0 | 8 |
Net periodic benefit cost | $ 4 | $ 3 | $ 7 | $ 13 |
Retirement Plans - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial and settlement/curtailment (gain) loss | $ 0 | $ 0 | $ 0 | $ 8 |
Adjusted EBITDA | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial and settlement/curtailment (gain) loss | $ 8 |
Restructuring and Impairment Costs - Narrative (Details) - 2024 Restructuring Plan - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring costs | $ 138 | ||
Restructuring charges | $ 127 | $ 138 | |
Expected cost remaining | $ 2 | $ 2 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 8 | $ 25 | $ 28 | $ 56 |
Effective tax rate | (20.00%) | 71.00% | 117.00% | 57.00% |
Unrecognized tax benefits | $ 519 | $ 522 | $ 519 | $ 522 |
Unrecognized tax benefits that would impact effective tax rate | 153 | 125 | 153 | 125 |
Net accrued interest | 27 | 27 | 27 | 27 |
Interest and penalties accrued | 1 | $ 2 | 3 | $ 4 |
Audit settlement tax benefit | $ 14 | $ 17 |
Nonconsolidated Partially-Owned Affiliates - Schedule of Operating Information of Nonconsolidated Partially-Owned Affiliates (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Sep. 30, 2023 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Investments in partially-owned affiliates | $ 330 | $ 330 | $ 303 | ||
Gross profit | $ 230 | $ 250 | 476 | $ 481 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net sales | 1,938 | 1,794 | |||
Gross profit | 204 | 164 | |||
Net income | 89 | 68 | |||
Net income attributable to the entity | $ 88 | $ 67 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Reserves for environmental liabilities | $ 4 | $ 4 |
Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Sep. 30, 2023 |
|
Related Party Transaction [Line Items] | |||||
Net sales to related parties | $ 3,750 | $ 3,912 | $ 7,410 | $ 7,611 | |
Purchases from related parties | 3,520 | 3,662 | 6,934 | 7,130 | |
Accounts receivable due from related parties | 1,896 | 1,896 | $ 1,874 | ||
Accounts payable due to related parties | 2,512 | 2,512 | 2,526 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Net sales to related parties | 65 | 71 | 131 | 129 | |
Purchases from related parties | 110 | $ 102 | 213 | $ 216 | |
Accounts receivable due from related parties | 36 | 36 | 26 | ||
Accounts payable due to related parties | $ 67 | $ 67 | $ 67 |
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