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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2023
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-37757
ADNT.jpg
Adient plc
(exact name of Registrant as specified in its charter)
Ireland98-1328821
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
 3 Dublin Landings, North Wall Quay, Dublin 1, Ireland D01 H104
(Address of principal executive offices)
734-254-5000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of exchange on which registered
Ordinary Shares, par value $0.001ADNTNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☑  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☑Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes  ☐  No  ☑

At December 31, 2023, 91,245,859 ordinary shares were outstanding.


Adient plc
Form 10-Q
For the Three Months Ended December 31, 2023

TABLE OF CONTENTS

Adient plc | Form 10-Q | 2

PART I - FINANCIAL INFORMATION

Item 1.Unaudited Financial Statements

Adient plc
Consolidated Statements of Income
(unaudited)

Three Months Ended
December 31,
(in millions, except per share data)20232022
Net sales$3,660 $3,699 
Cost of sales3,414 3,468 
Gross profit246 231 
Selling, general and administrative expenses147 138 
Restructuring and impairment costs11 7 
Equity income23 28 
Earnings before interest and income taxes111 114 
Net financing charges44 41 
Other pension expense (income)2 9 
Income before income taxes65 64 
Income tax provision (benefit)20 31 
Net income45 33 
Income attributable to noncontrolling interests25 21 
Net income attributable to Adient$20 $12 
Earnings per share:
Basic$0.22 $0.13 
Diluted$0.21 $0.13 
Shares used in computing earnings per share:
Basic92.9 95.1 
Diluted93.6 95.9 

The accompanying notes are an integral part of the consolidated financial statements.

Adient plc | Form 10-Q | 3

Adient plc
Consolidated Statements of Comprehensive Income
(unaudited)




Three Months Ended
December 31,
(in millions)20232022
Net income $45 $33 
Other comprehensive income, net of tax:
Foreign currency translation adjustments142 106 
Realized and unrealized gains on derivatives9 25 
Other comprehensive income 151 131 
Total comprehensive income196 164 
Comprehensive income attributable to noncontrolling interests38 37 
Comprehensive income attributable to Adient $158 $127 

The accompanying notes are an integral part of the consolidated financial statements.

Adient plc | Form 10-Q | 4

Adient plc
Consolidated Statements of Financial Position
(unaudited)




(in millions, except share and per share data)December 31, 2023September 30, 2023
Assets
Cash and cash equivalents$990 $1,110 
Accounts receivable - net
1,661 1,874 
Inventories833 841 
Other current assets590 491 
Current assets4,074 4,316 
Property, plant and equipment - net1,401 1,382 
Goodwill2,138 2,094 
Other intangible assets - net401 408 
Investments in partially-owned affiliates322 303 
Assets held for sale7 7 
Other noncurrent assets954 914 
Total assets$9,297 $9,424 
Liabilities and Shareholders' Equity
Short-term debt$7 $2 
Current portion of long-term debt137 132 
Accounts payable2,422 2,526 
Accrued compensation and benefits329 400 
Restructuring reserve54 51 
Other current liabilities599 627 
Current liabilities3,548 3,738 
Long-term debt2,403 2,401 
Pension and postretirement benefits95 92 
Other noncurrent liabilities578 590 
Long-term liabilities3,076 3,083 
Commitments and Contingencies (Note 17)
Redeemable noncontrolling interests57 57 
Preferred shares issued, par value $0.001; 100,000,000 shares authorized,
Zero shares issued and outstanding at December 31, 2023
— — 
Ordinary shares issued, par value $0.001; 500,000,000 shares authorized,
91,245,859 shares issued and outstanding at December 31, 2023
— — 
Additional paid-in capital3,872 3,973 
Accumulated deficit(883)(903)
Accumulated other comprehensive income (loss)(704)(842)
Shareholders' equity attributable to Adient2,285 2,228 
Noncontrolling interests331 318 
Total shareholders' equity2,616 2,546 
Total liabilities and shareholders' equity$9,297 $9,424 

The accompanying notes are an integral part of the consolidated financial statements.

Adient plc | Form 10-Q | 5
Adient plc
Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
December 31,
(in millions)20232022
Operating Activities
Net income attributable to Adient$20 $12 
Income attributable to noncontrolling interests25 21 
Net income45 33 
Adjustments to reconcile net income to cash provided (used) by operating activities:
Depreciation72 69 
Amortization of intangibles11 12 
Pension and postretirement expense (benefit)3 9 
Pension and postretirement contributions, net(10)(3)
Equity in earnings of partially-owned affiliates, net of dividends received(6)(16)
Deferred income taxes(6)(1)
Equity-based compensation13 8 
Other— (3)
Changes in assets and liabilities, excluding impact of acquisitions/divestitures:
Receivables234 167 
Inventories29 22 
Other assets(81)(47)
Restructuring reserves(9)(27)
Accounts payable and accrued liabilities(256)(191)
Accrued income taxes2 12 
Cash provided (used) by operating activities41 44 
Investing Activities
Capital expenditures(55)(61)
Sale of property, plant and equipment14 15 
Acquisition of businesses, net of cash acquired— (6)
Proceeds from business divestitures(3)3 
Other— (1)
Cash provided (used) by investing activities(44)(50)
Financing Activities
Increase (decrease) in short-term debt5 — 
Increase (decrease) in long-term debt— 2 
Repayment of long-term debt— (2)
Debt financing costs— (7)
Share repurchases(100)— 
Dividends paid to noncontrolling interests(48)(50)
Share based compensation and other(12)(12)
Cash provided (used) by financing activities(155)(69)
Effect of exchange rate changes on cash and cash equivalents38 29 
Increase (decrease) in cash and cash equivalents(120)(46)
Cash and cash equivalents at beginning of period1,110 947 
Cash and cash equivalents at end of period$990 $901 

The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-Q | 6
Adient plc
Notes to Consolidated Financial Statements
(unaudited)





1. Organization and Summary of Significant Accounting Policies

Adient is a global leader in the automotive seating supplier industry. Adient has a leading market position in the Americas, Europe and China, and has longstanding 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. Interim results are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to be impacted by supply chain disruptions, inflationary pressures and volatile commodity pricing on certain input costs, along with the impacts of higher interest rates and volatility in consumer demand.

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 December 31, 2023, 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:

(in millions)December 31, 2023September 30, 2023
Current assets$237 $265 
Noncurrent assets112 121 
Total assets$349 $386 
Current liabilities$172 $228 
Noncurrent liabilities12 13 
Total liabilities$184 $241 

Adient plc | Form 10-Q | 7

Earnings Per Share
The following table shows the computation of basic and diluted earnings per share:
Three Months Ended
December 31,
(in millions, except per share data)20232022
Numerator:
Net income attributable to Adient$20 $12 
Denominator:
Shares outstanding92.9 95.1 
Effect of dilutive securities0.7 0.8 
Diluted shares93.6 95.9 
Earnings per share:
Basic$0.22 $0.13 
Diluted$0.21 $0.13 
The effect of common stock equivalents which would have been anti-dilutive was immaterial and excluded from the calculation of diluted earnings per share for the three months ended December 31, 2023 and 2022.

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 ASUs that are summarized below, each to be effective after fiscal 2024, which are not expected to significantly impact the consolidated financial statements:

Standard to be AdoptedDescriptionDate 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


2. 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
Adient plc | Form 10-Q | 8

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 first quarter of fiscal 2024 were related to product sales transacted in prior fiscal years.

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. Adient has evaluated the terms of its arrangements and determined that they 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 December 31, 2023. 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.


3. 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.

Adient plc | Form 10-Q | 9


4. Inventories

Inventories consisted of the following:

(in millions)December 31, 2023September 30, 2023
Raw materials and supplies$629 $644 
Work-in-process33 34 
Finished goods171 163 
Inventories$833 $841 


5. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill are as follows:

(in millions)AmericasEMEAAsiaTotal
Balance at September 30, 2023$609 $317 $1,168 $2,094 
Business divestiture (1)
— — (5)(5)
Currency translation and other1 19 29 49 
Balance at December 31, 2023
$610 $336 $1,192 $2,138 

(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:

 December 31, 2023September 30, 2023
(in millions)Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Intangible assets
Patented technology$80 $(34)$46 $79 $(32)$47 
Customer relationships556 (214)342 550 (201)349 
Trademarks— — — 17 (17)— 
Miscellaneous25 (12)13 24 (12)12 
Total intangible assets$661 $(260)$401 $670 $(262)$408 

Amortization of intangible assets for the three months ended December 31, 2023 and 2022 was $11 million and $12 million, respectively.


Adient plc | Form 10-Q | 10

6. 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:
Three Months Ended
December 31,
(in millions)20232022
Balance at beginning of period$21 $21 
Accruals for warranties issued during the period4 2 
Settlements made (in cash or in kind) during the period(2)(4)
Currency translation— 1 
Balance at end of period$23 $20 


7. Leases

Adient's lease portfolio consists of operating leases for real estate including production facilities, warehouses and administrative offices, equipment such as forklifts and computer servers and laptops, and fleet vehicles.

The components of lease costs included in the consolidated statement of income for three months ended December 31, 2023 and 2022 were as follows:

Three Months Ended
December 31,
(in millions)20232022
Operating lease cost$27 $26 
Short-term lease cost7 8 
Total lease cost$34 $34 

Adient plc | Form 10-Q | 11

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

(in millions)December 31, 2023September 30, 2023
Operating leases:
Operating lease right-of-use assetsOther noncurrent assets$245$241
Operating lease liabilities - currentOther current liabilities$81$77
Operating lease liabilities - noncurrentOther noncurrent liabilities163163
$244$240
Weighted average remaining lease term:
Operating leases5 years5 years
Weighted average discount rate:
Operating leases6.5 %6.1 %

Maturities of operating lease liabilities and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year as of December 31, 2023 are as follows:

Operating leases
Fiscal years (in millions)December 31, 2023
2024 (excluding the three months ended December 31, 2023)
$72 
202573 
202649 
202734 
202821 
Thereafter43 
Total lease payments292 
Less: imputed interest(48)
Present value of lease liabilities$244 

Supplemental cash flow information related to leases is as follows:

Three Months Ended
December 31,
(in millions)20232022
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)$16 $8 
Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities$27 $26 


Adient plc | Form 10-Q | 12

8. Debt and Financing Arrangements

Long-term and short-term debt consisted of the following:

(in millions)December 31, 2023September 30, 2023
Long-term debt:
8.25% Notes due 2031
$500 $500 
7.00% Secured Notes due 2028
500 500 
Term Loan B due in 2028635 635 
4.875% Notes due in 2026
795 795 
3.50% Notes due in 2024
136 130 
Other bank borrowings and finance lease obligations3 4 
Less: debt issuance costs(29)(31)
Gross long-term debt2,540 2,533 
Less: current portion137 132 
Net long-term debt$2,403 $2,401 
Short-term debt:
Other bank borrowings$7 $2 
Total short-term debt$7 $2 

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 December 31, 2023, Adient had not drawn down on the ABL Credit Facility and had availability under this facility of $938 million (net of $12 million of letters of credit).

In addition, Adient US and Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintain 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 December 31, 2023, which is maintained fully at Adient Global Holdings S.à r.l and is due at final maturity on April 8, 2028. Interest on the Term Loan B Agreement accrues at Term SOFR plus an applicable margin equal to 3.25%. The Term Loan B Agreement also 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. In January 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 plc | Form 10-Q | 13

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 fiscal 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 will be 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 new 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 December 31, 2023 and September 30, 2023.

AGH also previously maintained €823 million aggregate principal amount of 3.50% unsecured notes due in August 2024. During fiscal 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 December 31, 2023, the remaining balance of this debt was €123 million ($136 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:

Three Months Ended
December 31,
(in millions)20232022
Interest expense, net of capitalized interest costs$48 $41 
Banking fees and debt issuance cost amortization4 4 
Interest income(9)(4)
Net foreign exchange1 — 
Net financing charges$44 $41 

Total interest paid on both short and long-term debt for the three months ended December 31, 2023 and 2022 was $60 million and $20 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 December 31, 2023, $85 million was funded under these programs compared to $170 million as of September 30, 2023.

Adient plc | Form 10-Q | 14

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 December 31, 2023, and September 30, 2023, Adient's liabilities related to this program were $57 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.


9. 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 December 31, 2023 and September 30, 2023, respectively.
The €123 million ($136 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.

In January 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.

Adient plc | Form 10-Q | 15

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:

 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)December 31, 2023September 30, 2023December 31, 2023September 30, 2023
Other current assets
Foreign currency exchange derivatives$38 $30 $5 $4 
Other noncurrent assets
Foreign currency exchange derivatives1 — — — 
Total assets$39 $30 $5 $4 
Other current liabilities
Foreign currency exchange derivatives$4 $8 $— $— 
Other noncurrent liabilities
Foreign currency exchange derivatives1 6 — — 
Long-term debt
Foreign currency denominated debt— 130 — — 
Total liabilities$5 $144 $— $— 

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 December 31, 2023 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:

AssetsLiabilities
(in millions)December 31, 2023September 30, 2023December 31, 2023September 30, 2023
Gross amount recognized$44 $34 $5 $144 
Gross amount eligible for offsetting(5)(12)(5)(12)
Net amount$39 $22 $— $132 

The following table presents the effective portion of pretax gains (losses) recorded in other comprehensive income related to cash flow hedges:

Three Months Ended
December 31,
(in millions)20232022
Foreign currency exchange derivatives$26 $32 

Adient plc | Form 10-Q | 16

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:
(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesCost of sales$15 $7 
During the next twelve months, $29 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:
(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesNet financing charges$6 $— 
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:

(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesCost of sales$1 $3 
Foreign currency exchange derivativesNet financing charges9 9 
Total$10 $12 

Adient had no outstanding net investment hedges during the three months ended December 31, 2023. The effective portion of pretax gains (losses) recorded in currency translation adjustment (CTA) within other comprehensive income related to net investment hedges was $(69) million for the three months ended December 31, 2022. For the three months ended December 31, 2023 and 2022, no gains or losses were reclassified from CTA into income for Adient's outstanding net investment hedges. For the three months ended December 31, 2023 and 2022, no ineffectiveness was recognized in the consolidated statements of income resulting from cash flow hedges.


10. 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.
Adient plc | Form 10-Q | 17

Recurring Fair Value Measurements
The following tables present Adient's fair value hierarchy for those assets and liabilities measured at fair value:
 Fair Value Measurements Using:
(in millions)
Total as of
December 31, 2023
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$43 $— $43 $— 
Other noncurrent assets
Foreign currency exchange derivatives1 — 1 — 
Total assets$44 $— $44 $— 
Other current liabilities
Foreign currency exchange derivatives4 — 4 — 
Other noncurrent liabilities
Foreign currency exchange derivatives1 — 1 — 
Total liabilities$5 $— $5 $— 

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)
Other current assets
Foreign currency exchange derivatives$34 $— $34 $— 
Total assets$34 $— $34 $— 
Other current liabilities
Foreign currency exchange derivatives$8 $— $8 $— 
Other noncurrent liabilities
Foreign currency exchange derivatives6 — 6 — 
Total liabilities$14 $— $14 $— 

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 December 31, 2023 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 December 31, 2023 and September 30, 2023, respectively, was determined primarily using market quotes classified as Level 1 inputs within the ASC 820 fair value hierarchy.


Adient plc | Form 10-Q | 18

11. Equity and Noncontrolling Interests

For the three months ended December 31, 2023:

(in millions)Ordinary SharesAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)Shareholders' Equity Attributable
 to Adient		Shareholders' Equity Attributable to Noncontrolling InterestsTotal Equity
Balance at September 30, 2023
$— $3,973 $(903)$(842)$2,228 $318 $2,546 
Net income — 20 20 12 32 
Foreign currency translation adjustments— — — 129 129 5 134 
Realized and unrealized gains (losses) on derivatives— — — 9 9 — 9 
Dividends attributable to noncontrolling interests— — — — — (4)(4)
Repurchases of common stock— (100)— — (100)— (100)
Share based compensation and other— (1)— — (1)— (1)
Balance at December 31, 2023
$— $3,872 $(883)$(704)$2,285 $331 $2,616 

For the three months ended December 31, 2022:

(in millions)Ordinary SharesAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)Shareholders' Equity Attributable
 to Adient		Shareholders' Equity Attributable to Noncontrolling InterestsTotal Equity
Balance at September 30, 2022
$— $4,026 $(1,108)$(845)$2,073 $302 $2,375 
Net income— — 12 — 12 14 26 
Foreign currency translation adjustments— — — 90 90 5 95 
Realized and unrealized gains (losses) on derivatives— — — 25 25 — 25 
Dividends attributable to noncontrolling interests— — — — — (4)(4)
Share based compensation and other— (8)— — (8)— (8)
Balance at December 31, 2022
$— $4,018 $(1,096)$(730)$2,192 $317 $2,509 

Adient plc | Form 10-Q | 19


The following table presents changes in AOCI attributable to Adient:

Three Months Ended
December 31,
(in millions)20232022
Foreign currency translation adjustments
Balance at beginning of period$(854)$(836)
Aggregate adjustment for the period, net of tax129 90 
Balance at end of period (1)
$(725)$(746)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period$13 $(8)
Current period changes in fair value, net of tax21 31 
Reclassification to income, net of tax(12)(6)
Balance at end of period$22 $17 
Pension and postretirement plans
Balance at beginning of period$(1)$(1)
Balance at end of period$(1)$(1)
Accumulated other comprehensive income (loss), end of period$(704)$(730)

(1) The ending balance of foreign currency translation adjustments as of December 31, 2023 and 2022 include cumulative net investment hedge gains of $74 million and $75 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:

Three Months Ended
December 31,
(in millions)20232022
Beginning balance$57 $45 
Net income (1)
13 7 
Dividends(21)(18)
Foreign currency translation adjustments8 11 
Ending balance$57 $45 

(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 the shares was $65 million. During the first quarter of fiscal 2024, Adient repurchased and immediately retired 3,003,358 shares of its
Adient plc | Form 10-Q | 20

ordinary shares at an average purchase price per share of $33.32. The aggregate amount of cash paid to repurchase the shares was $100 million. As of December 31, 2023, the remaining aggregate amount of authorized repurchases was $435 million.


12. 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:

Three Months Ended
December 31,
(in millions)20232022
Service cost$1 $1 
Interest cost5 4 
Expected return on plan assets(3)(3)
Net actuarial and settlement/curtailment (gain) loss— 8 
Net periodic benefit cost$3 $10 

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 quarter of fiscal 2023, Adient recorded an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.


13. 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.

During the first quarter of fiscal 2024, Adient committed to a restructuring plan ("2024 Plan") resulting in charges of $11 million. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions in EMEA and Americas. The restructuring actions are expected to be substantially completed by fiscal 2025. 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 December 31, 2023:

(in millions)Employee Severance and Termination BenefitsCurrency
Translation		Total
Balance at September 30, 2023$56 $(5)$51 
2024 Plan charges11 — 11 
Utilized - cash(9)— (9)
Noncash and other adjustments— 1 1 
Balance at December 31, 2023
$58 $(4)$54 

Adient plc | Form 10-Q | 21

For the three months ended December 31, 2022:

(in millions)Employee Severance and Termination BenefitsCurrency
Translation		Total
Balance at September 30, 2022$69 $(9)$60 
2023 Plan charges7 — 7 
Utilized - cash(27)— (27)
Noncash and other adjustments— 5 5 
Balance at December 31, 2022$49 $(4)$45 

Adient's restructuring plans include workforce reductions of approximately 13,000 employees. Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee or on a lump sum basis in accordance with individual severance agreements. As of December 31, 2023, approximately 11,000 of the employees have been separated from Adient pursuant to the restructuring plans. In addition, the restructuring plans included twenty-six plant closures. As of December 31, 2023, twenty-two of the twenty-six plants have been closed.

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. Because of the importance of new vehicle sales by major automotive manufacturers to operations, Adient is affected by the general business conditions in the automotive industry. 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.


14. 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 months ended December 31, 2023, Adient’s income tax expense was $20 million equating to an effective tax rate of 31%. The three 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. For the three months ended December 31, 2022 Adient’s income tax expense was $31 million equating to an effective tax rate of 48%. The three 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 first 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 it was more likely than not that certain deferred tax assets recorded in Luxembourg during the three months ended December 31, 2023, would not be realized and established a valuation allowance, which did not have a material impact on Adient’s consolidated financial statements.

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
Adient plc | Form 10-Q | 22

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 December 31, 2023, Adient had gross tax effected unrecognized tax benefits of $537 million. If recognized, $168 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest at December 31, 2023 was approximately $31 million (net of tax benefit). The interest and penalties accrued for the three months ended December 31, 2023 was $2 million. At December 31, 2022, Adient had gross tax effected unrecognized tax benefits of $522 million. If recognized, $122 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest at December 31, 2022 was approximately $25 million (net of tax benefit). The interest and penalties accrued for the three months ended December 31, 2022 was $2 million. Adient recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.


15. 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.

 Three Months Ended
December 31,
(in millions)20232022
Net Sales
Americas$1,647 $1,724 
EMEA1,268 1,182 
Asia770 821 
Eliminations(25)(28)
Total net sales$3,660 $3,699 
Adient plc | Form 10-Q | 23


Three Months Ended
December 31,
(in millions)20232022
Adjusted EBITDA
Americas$80 $69 
EMEA45 28 
Asia114 138 
Corporate-related costs (1)
(23)(23)
Restructuring and impairment costs (2)
(11)(7)
Purchase accounting amortization (3)
(11)(12)
Restructuring related charges (4)
9 (3)
Depreciation
(72)(69)
Stock based compensation (5)
(13)(8)
Other items (6)
(7)1 
Earnings before interest and income taxes111 114 
Net financing charges(44)(41)
Other pension income (expense) (7)
(2)(9)
Income before income taxes$65 $64 

Notes:

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.
(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and non-recurring impairment charges.
(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 directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. The three months ended December 31, 2023 includes a $10 million gain on sale of a restructured facility.
(5) During the three months ended December 31, 2023, 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 prior periods.
(6) The three months ended December 31, 2023 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 contract related settlement. The three months ended December 31, 2022 includes a $1 million non-recurring adjustment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia, and $1 million of indirect tax recoveries in Brazil, partially offset by $1 million of transaction costs.

(7) The three months ended December 31, 2022 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.


Adient plc | Form 10-Q | 24

Geographic Information

Revenue by geographic area is as follows:

Net Sales
 Three Months Ended
December 31,
(in millions)20232022
Americas
United States$1,422 $1,553 
Mexico632 607 
Other Americas86 95 
Regional elimination(493)(531)
1,647 1,724 
EMEA
Spain180 154 
Germany224 248 
Poland249 209 
Czech Republic195 228 
Other EMEA769 667 
Regional elimination(349)(324)
1,268 1,182 
Asia
China374 398 
Korea122 138 
Thailand122 141 
Japan93 87 
Other Asia71 65 
Regional elimination(12)(8)
770 821 
Inter-segment elimination(25)(28)
Total$3,660 $3,699 


16. 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 December 31, 2023 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 months ended December 31, 2023 and 2022, respectively.

Adient plc | Form 10-Q | 25

Adient maintains total investments in partially-owned affiliates of $322 million and $303 million at December 31, 2023 and September 30, 2023, respectively. Operating information for nonconsolidated partially-owned affiliates is as follows:

Three Months Ended
December 31,
(in millions)20232022
Income statement data:
Net sales$1,037 $976 
Gross profit$93 $101 
Net income$49 $60 
Net income attributable to the entity$48 $59 

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.


17. 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, 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 December 31, 2023 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.


18. 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:

Three Months Ended
December 31,
(in millions)20232022
Net sales to related partiesNet sales$66 $58 
Purchases from related partiesCost of sales103 114 

Adient plc | Form 10-Q | 26

The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position:

(in millions)December 31, 2023September 30, 2023
Accounts receivable due from related partiesAccounts receivable$28 $26 
Accounts payable due to related partiesAccounts payable53 67 

Average receivable and payable balances with related parties remained consistent with the period end balances shown above.
Adient plc | Form 10-Q | 27

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements

This section and other parts of this Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as "future," "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "will," "would," "could," "can," "may," or similar terms. Forward-looking statements are not guarantees of future performance and Adient's actual results may differ significantly from the results discussed in the forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Adient’s control, that could cause Adient’s actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: the effects of local and national economic, credit and capital market conditions (including the persistence of high interest rates and volatile currency exchange rates) on the global economy, work stoppages, including due to strikes, supply chain disruptions and similar events, wage inflationary pressures due to labor shortages and new labor negotiations, volatile energy markets, Adient’s ability and timing of customer recoveries for increased input costs, the availability of raw materials and component products (including components required by our customers for the manufacture of vehicles), geopolitical uncertainties such as the Ukraine and Middle East conflicts and the impact on the regional and global economies and additional pressure on supply chain and vehicle production, the ability of Adient to execute its restructuring plans and achieve the desired benefit, automotive vehicle production levels, mix and schedules, as well as our concentration of exposure to certain automotive manufacturers, the ability of Adient to effectively launch new business at forecast and profitable levels, the ability of Adient to meet debt service requirements and, terms of future financing, the impact of global tax reform legislation, uncertainties in U.S. administrative policy regarding trade agreements, tariffs and other international trade relations, shifts in market shares among vehicles, vehicle segments or away from vehicles on which Adient has significant content, changes in consumer demand, global climate change and related emphasis on ESG matters by various stakeholders, and the ability of Adient to achieve its ESG-related goals, cancellation of or changes to commercial arrangements, and the ability of Adient to identify, recruit and retain key leadership. Additional information regarding these and other risks related to Adient’s business that could cause actual results to differ materially from what is contained in the forward-looking statements is included in the section entitled "Risk Factors," contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included within this report as well as within Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. All information presented herein is based on Adient's fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to Adient's fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Adient assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.

Overview

Adient is a global leader in the automotive seating supply industry with 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.

Adient designs, manufactures and markets a full range of seating systems and components for passenger cars, commercial vehicles and light trucks, including vans, pick-up trucks and sport/crossover utility vehicles. Adient operates more than 200 wholly- and majority-owned manufacturing or assembly facilities, with operations in 30 countries. Additionally, Adient has partially-owned affiliates in China, Asia, Europe and North America. Through its global footprint and vertical integration, Adient leverages its capabilities to drive growth in the automotive seating industry.

Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, the Middle East, and Africa ("EMEA") and 3) Asia Pacific/China ("Asia").

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Factors Affecting Adient’s Operating Environment

The results presented below are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to be impacted by supply chain disruptions, inflationary pressures and volatile commodity pricing on certain input costs, along with the impacts of higher interest rates and volatility in consumer demand. Refer to the consolidated results of operations and segment analysis discussion below for additional information on the impacts of these items on Adient's results.

Global Automotive Industry

Adient conducts its business globally in the automotive industry, which is highly competitive and sensitive to economic, political and social factors in the various regions. During the first three months of fiscal 2024, global light vehicle production increased 9.8% year over year driven by improved production volumes in North America, EMEA, Asia and China. The operating environment is expected to continue to be challenging during the remainder of fiscal 2024 as the automotive industry continues to be impacted by supply chain disruptions, inflationary pressures and volatile commodity pricing on certain input costs, along with the impacts of higher interest rates and volatility in consumer demand.

Light vehicle production levels by geographic region are provided below:

Light Vehicle Production
Three Months Ended
December 31,
(units in millions)2023Change2022
Global23.9 9.8 %21.8 
North America3.7 4.0 %3.6 
South America0.7 (2.1)%0.7 
EMEA4.6 7.0 %4.3 
China8.7 20.8 %7.2 
Asia, excluding China, and Other6.2 3.3 %6.0 
Source: S&P Global, January 2024

Financial Results Summary
Significant aspects of Adient's financial results for the first quarter of fiscal 2024 include the following:

•Adient recorded net sales of $3,660 million for the first quarter of fiscal 2024, representing a decrease of $39 million or 1.1% when compared to the first quarter of fiscal 2023. The decrease in net sales is attributable to Adient's lower overall production volumes in the Americas (due to the UAW strike-related production disruptions) and Asia regions and unfavorable material economics recoveries, partially offset by the favorable impact of foreign currencies and favorable pricing.

•Gross profit was $246 million, or 6.7% of net sales, for the first quarter of fiscal 2024 compared to $231 million, or 6.2% of net sales for the first quarter of fiscal 2023. Profitability, including gross profit as a percentage of net sales, was higher due to favorable business performance and favorable pricing, partially offset by lower overall production volumes, and unfavorable impacts of material economics.

•Equity income was $23 million for the first quarter of fiscal 2024, compared to $28 million for the first quarter of fiscal 2023. The decrease is primarily attributable to one-time divestiture related tax impact at an affiliate, the unfavorable impact of foreign currencies and the impact of KEIPER supply agreement modifications executed in fiscal 2023, partially offset by favorable business performance at certain affiliates.

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•Net income attributable to Adient was $20 million for the first quarter of fiscal 2024, compared to net income attributable to Adient of $12 million for the first quarter of fiscal 2023. The higher net income in the first quarter of fiscal 2024 is primarily attributable to favorable business performance, net favorable pricing adjustments, lower income tax provision, lower other pension expense and favorable material economics, net of recoveries, partially offset by lower overall production volumes, higher SG&A expenses mainly driven by a one-time loss on business divestiture, unfavorable impact of foreign currencies, higher net financing charges, higher restructuring costs, lower equity income, and higher income attributable to noncontrolling interests.

Consolidated Results of Operations

Three Months Ended
December 31,
(in millions)2023Change2022
Net sales$3,660 (1)%$3,699 
Cost of sales3,414 (2)%3,468 
Gross profit246 6%231 
Selling, general and administrative expenses147 7%138 
Restructuring and impairment costs11 57%7 
Equity income23 (18)%28 
Earnings before interest and income taxes111 (3)%114 
Net financing charges44 7%41 
Other pension expense (income)2 (78)%9 
Income before income taxes65 2%64 
Income tax provision (benefit)20 (35)%31 
Net income45 36%33 
Income attributable to noncontrolling interests25 19%21 
Net income attributable to Adient$20 67%$12 


Net Sales
Three Months Ended
December 31,
(in millions)2023Change2022
Net sales$3,660 (1)%$3,699 

Net sales decreased by $39 million, or 1%, in the first quarter of fiscal 2024 as compared to the first quarter of fiscal 2023 due to lower overall production volumes in Americas resulting from the impact of the UAW strike-related production disruptions at certain customers and due to lower overall production volumes in Asia as a result of program changeovers, program launches and lower volumes on foreign OEM platforms in China, partially offset by higher productions volumes in Europe ($75 million). Unfavorable material economic recoveries ($36 million) also contributed to the decrease in net sales, partially offset by the favorable impact of foreign currencies ($56 million) and net favorable pricing adjustments ($16 million). Refer to the segment analysis below for a discussion of segment net sales.


Cost of Sales / Gross Profit
Three Months Ended
December 31,
(in millions)2023Change2022
Cost of sales$3,414(2)%$3,468
Gross profit$2466%$231
% of sales6.7%6.2%

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Cost of sales decreased by $54 million, or 2%, and gross profit increased by $15 million, or 6%, in the first quarter of fiscal 2024 as compared to the first quarter of fiscal 2023. The year over year decrease in cost of sales was due to lower production volumes ($58 million), lower commodity costs ($28 million), favorable business performance ($18 million), and net favorable pricing adjustments ($14 million), partially offset by the unfavorable impact of foreign currencies ($60 million) and higher depreciation expense ($4 million). Gross profit for the three months ended December 31, 2023 was favorably impacted by favorable pricing and favorable business performance, partially offset by lower production volumes, the unfavorable impact of foreign currencies and higher depreciation expense. Refer to the segment analysis below for a discussion of segment profitability.


Selling, General and Administrative (SG&A) Expenses
Three Months Ended
December 31,
(in millions)2023Change2022
Selling, general and administrative expenses$1477%$138
% of sales4.0%3.7%

SG&A expenses increased by $9 million, or 7%, in the first quarter of fiscal 2024 as compared to the first quarter of fiscal 2023. The year over year increase in SG&A is attributable to higher compensation expense including stock-based and performance-based incentive compensation costs ($9 million), a one-time loss on business divestiture ($8 million) and higher overall engineering and other administrative spending ($1 million), partially offset by net year-over-year gains on sales of assets ($4 million), non-recurring contract related settlement ($3 million) and lower depreciation and amortization expense ($2 million).


Restructuring and Impairment Costs
Three Months Ended
December 31,
(in millions)2023Change2022
Restructuring and impairment costs$11 57%$7 

Restructuring and impairment costs were higher by $4 million during the first quarter of fiscal 2024. Refer to Note 13, "Restructuring and Impairment Costs," of the notes to the consolidated financial statements for information related to Adient's restructuring plans.


Equity Income
Three Months Ended
December 31,
(in millions)2023Change2022
Equity income$23 (18)%$28 

Equity income was $23 million for the first quarter of fiscal 2024, compared to $28 million in the first quarter of fiscal 2023. The decrease is primarily attributable to a one-time divestiture related tax impact at an affiliate ($2 million), the impact of the KEIPER supply agreement modifications executed in fiscal 2023 ($2 million) and the unfavorable impact of foreign currencies ($1 million).


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Net Financing Charges
Three Months Ended
December 31,
(in millions)2023Change2022
Net financing charges$44 7%$41 

Net financing charges increased by $3 million in the first quarter of fiscal 2024 as compared to the first quarter of fiscal 2023 due primarily to higher interest rates on recently issued debt instruments. Refer to Note 8, "Debt and Financing Arrangements," of the notes to the consolidated financial statements for further information related to Adient's debt transactions and components of net financing charges.


Other Pension Expense (Income)
Three Months Ended
December 31,
(in millions)2023Change2022
Other pension expense (income)$2 (78)%$9 

Other pension expense was lower by $7 million in the first quarter of fiscal 2024 as compared to the first quarter of fiscal 2023 due primarily to a non-recurring curtailment loss associated with employee termination benefit plans recorded in the prior year. Refer to Note 12, "Retirement Plans," of the notes to the consolidated financial statements for information related to the non-service components of Adient's net periodic pension costs.


Income Tax Provision
Three Months Ended
December 31,
(in millions)2023Change2022
Income tax provision (benefit)$20 (35)%$31 

The first quarter of fiscal 2024 income tax expense of $20 million was higher than the 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. The first quarter of fiscal 2023 income tax expense of $31 million was higher than the 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.


Income Attributable to Noncontrolling Interests
Three Months Ended
December 31,
(in millions)2023Change2022
Income attributable to noncontrolling interests$25 19%$21 

The increase in income attributable to noncontrolling interests in the first quarter of fiscal 2024 as compared to the first quarter of fiscal 2023 is primarily attributable to a $5 million adjustment to increase income attributable to noncontrolling interests recorded in the first quarter of fiscal 2024 related to the three months ended September 30, 2023, which more than offset lower production volumes at consolidated affiliates.


Net Income Attributable to Adient
Three Months Ended
December 31,
(in millions)2023Change2022
Net income attributable to Adient$20 67%$12 

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Net income attributable to Adient was $20 million for the first quarter of fiscal 2024, compared to net income attributable to Adient of $12 million for the first quarter of fiscal 2023. The higher net income in the first quarter of fiscal 2024 is primarily attributable to favorable business performance, net favorable pricing adjustments, lower other pension expense, lower commodity costs and lower income tax provision, partially offset by lower overall production volumes, higher SG&A expenses mainly driven by a one-time loss on business divestiture, unfavorable impact of foreign currencies, increase of net financing charges, increase of restructuring and impairment costs, lower equity income, and higher income attributable to noncontrolling interests.


Comprehensive Income Attributable to Adient
Three Months Ended
December 31,
(in millions)2023Change2022
Comprehensive income attributable to Adient$158 24%$127 

Comprehensive income attributable to Adient was $158 million for the first quarter of fiscal 2024 compared to $127 million of comprehensive income for the first quarter of fiscal 2023. The increase of $31 million is due primarily to higher net income ($12 million) and the favorable impact of foreign currency translation adjustments ($36 million), partially offset by the impact of realized and unrealized gains on derivatives ($16 million) and higher comprehensive income attributable to noncontrolling interests ($1 million).


Segment Analysis

Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, the Middle East, and Africa ("EMEA") and 3) 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 plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items. 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 results presented below are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to recover from supply chain disruptions, manages inflationary pressures and volatile commodity pricing on certain input costs, and as it addresses the impacts of higher interest rates and volatility in consumer demand. Refer to the Factors Affecting Adient’s Operating Environment section within our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, for additional information on factors that have impacted Adient.

Financial information relating to Adient's reportable segments is as follows:

 Three Months Ended
December 31,
(in millions)20232022
Net Sales
Americas$1,647 $1,724 
EMEA1,268 1,182 
Asia770 821 
Eliminations(25)(28)
Total net sales$3,660 $3,699 

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Three Months Ended
December 31,
(in millions)20232022
Adjusted EBITDA
Americas$80 $69 
EMEA45 28 
Asia114 138 
Corporate-related costs (1)
(23)(23)
Restructuring and impairment costs (2)
(11)(7)
Purchase accounting amortization (3)
(11)(12)
Restructuring related charges (4)
9 (3)
Depreciation
(72)(69)
Stock based compensation (5)
(13)(8)
Other items (6)
(7)1 
Earnings before interest and income taxes111 114 
Net financing charges(44)(41)
Other pension income (expense) (7)
(2)(9)
Income before income taxes$65 $64 

Notes:

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.
(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and non-recurring impairment charges.
(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 directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. The three months ended December 31, 2023 includes a $10 million gain on sale of a restructured facility.
(5) During the three months ended December 31, 2023, a $5 million adjustment was recorded to increase equity-based compensation expense related to a retired executive's equity awards which should have been recognized in prior periods.
(6) The three months ended December 31, 2023 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 contract related settlement. The three months ended December 31, 2022 includes $1 million non-recurring adjustment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia, and $1 million of indirect tax recoveries in Brazil, partially offset by $1 million of transaction costs.

(7) The three months ended December 31, 2022 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.

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Americas
Three Months Ended
December 31,
(in millions)2023Change2022
Net sales$1,647 (4)%$1,724 
Adjusted EBITDA$80 16%$69 

Net sales decreased during the first quarter of fiscal 2024 by $77 million primarily due to the unfavorable volume impact of UAW strike-related disruptions at certain customers ($125 million) and unfavorable material economics recoveries ($25 million), partially offset by increased production volumes at other customers ($45 million) and net favorable pricing adjustments largely due to timing of commercial recoveries ($28 million).

Adjusted EBITDA increased during the first quarter of fiscal 2024 by $11 million, despite a $25 million unfavorable impact resulting from the UAW strike-related production disruptions at certain customers. The increase was due to net favorable pricing and material cost adjustments ($37 million), favorable business performance driven by lower freight costs ($14 million) and lower administrative and engineering expense ($1 million), partially offset by unfavorable material economics, net of recoveries ($18 million), lower current quarter production volumes ($14 million, including UAW strike-related impact) and the unfavorable impact of foreign currencies ($9 million).

EMEA
Three Months Ended
December 31,
(in millions)2023Change2022
Net sales$1,268 7%$1,182 
Adjusted EBITDA$45 61%$28 

Net sales increased during the first quarter of fiscal 2024 by $86 million primarily as a result of favorable impact of foreign currency ($64 million), higher current quarter production volumes ($28 million) and net favorable pricing adjustments ($5 million), partially offset by unfavorable material economics recoveries ($11 million).

Adjusted EBITDA increased during the first quarter of fiscal 2024 by $17 million due to net favorable pricing and material cost adjustments ($9 million), favorable impact of foreign currency ($6 million), favorable material economics, net of recoveries ($6 million), favorable business performance including lower labor and freight costs ($5 million) and increased equity income ($2 million), partially offset by prior year gains on sale of assets ($6 million), higher administrative and engineering expense ($4 million) and unfavorable product mix ($1 million).
Asia
Three Months Ended
December 31,
(in millions)2023Change2022
Net sales$770 (6)%$821 
Adjusted EBITDA$114 (17)%$138 

Net sales decreased during the first quarter of fiscal 2024 by $51 million due to lower current quarter production volumes due primarily to program changeovers, program launches and lower volumes on foreign OEM platforms in China ($27 million), lower levels of pricing adjustments year-over-year ($17 million) and an unfavorable impact of foreign currency ($7 million).

Adjusted EBITDA decreased during the first quarter of fiscal 2024 by $24 million due to lower levels of pricing adjustments year-over-year ($16 million), lower equity income driven by the impact of the KEIPER supply agreement modifications ($4 million), an unfavorable impact of foreign currencies ($4 million), lower current quarter production volumes ($3 million) and higher administrative and engineering expense ($2 million), partially offset by favorable material economics, net of recoveries ($4 million) and favorable business performance ($1 million).


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Liquidity and Capital Resources

Adient's primary liquidity needs are to fund general business requirements, including working capital, capital expenditures, restructuring costs and debt service requirements. Adient's principal sources of liquidity are cash flows from operating activities, the revolving credit facility and other debt issuances, and existing cash balances. Adient actively manages its working capital and associated cash requirements and continually seeks more effective uses of cash. Working capital is highly influenced by the timing of cash flows associated with sales and purchases, and therefore can be difficult to manage at times. See below for discussion of Adient's financing arrangements. Adient believes that its current financial resources will be sufficient to fund its liquidity requirements for at least the next twelve months.

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 December 31, 2023, Adient had not drawn down on the ABL Credit Facility and had availability under this facility of $938 million (net of $12 million of letters of credit).

In addition, Adient US and Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintain 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 December 31, 2023, which is maintained fully at Adient Global Holdings S.à r.l and is due at final maturity on April 8, 2028. Interest on the Term Loan B Agreement accrues at Term SOFR plus an applicable margin equal to 3.25%. The Term Loan B Agreement also 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. In January 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.

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 fiscal 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 will be 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 new debt issuances.

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AGH also maintains 4.875% USD-denominated unsecured notes due 2026. The aggregate principal amount of these notes was $795 million as of December 31, 2023 and September 30, 2023.

AGH also previously maintained €823 million aggregate principal amount of 3.50% unsecured notes due in August 2024. During fiscal 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 December 31, 2023, the remaining balance of this debt was €123 million ($136 million) and is classified as current portion of long-term debt on the consolidated statement of financial position.

Sources of Cash Flows
 Three Months Ended
December 31,
(in millions)20232022
Cash provided (used) by operating activities$41 $44 
Cash provided (used) by investing activities(44)(50)
Cash provided (used) by financing activities(155)(69)
Capital expenditures(55)(61)

Operating Cash Flows: The decrease in cash flows from operating activities is primarily due to unfavorable overall changes to working capital primarily related to increases in non-income tax receivables and reductions in current liabilities resulting from payments of accrued interest and accrued compensation, partially offset by the higher current quarter net income attributable to Adient.

Investing Cash Flows: The decrease in cash used by investing activities is primarily attributable to lower capital expenditures as further explained below.

Financing Cash Flows: The increase in cash used by financing activities is attributable to $100 million common stock repurchases transacted during the current quarter and the non-recurrence of prior year debt refinancing activities. Refer to Note 8, "Debt and Financing Arrangements," and Note 11, "Equity and Noncontrolling Interests," of the notes to the consolidated financial statements for additional information.

Capital expenditures: Lower capital expenditures during the first three months of fiscal 2024 were due primarily to timing of program spend on product launches.

Working capital
(in millions)December 31, 2023September 30, 2023
Current assets$4,074 $4,316 
Current liabilities3,548 3,738 
Working capital$526 $578 

Working capital decreased by $52 million due to decreases in cash, accounts receivable and inventories, partially offset by increases in non-income tax receivables, and decreases in accounts payable and accrued compensation and benefits.

Restructuring Costs

During the first three months of fiscal 2024, Adient committed to a restructuring plan ("2024 Plan") of $11 million. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions in EMEA and Americas. Adient currently estimates that upon completion of the restructuring actions, the fiscal 2023 restructuring plan will reduce annual operating costs by approximately $20 million, which is primarily the result of lower costs of sales and SG&A due to reduced employee-related costs, of which approximately 25% will result in net savings. The restructuring actions are expected to be substantially completed by fiscal 2025.

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Adient's restructuring plans include workforce reductions of approximately 13,000 employees. Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee or on a lump sum basis in accordance with individual severance agreements. As of December 31, 2023, approximately 11,000 of the employees have been separated from Adient pursuant to the restructuring plans. In addition, the restructuring plans included twenty-six plant closures. As of December 31, 2023, twenty-two of the twenty-six plants have been closed.

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. Because of the importance of new vehicle sales by major automotive manufacturers to operations, Adient is affected by the general business conditions in the automotive industry. 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.

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 the shares was $65 million. During the first quarter of fiscal 2024, Adient repurchased and immediately retired 3,003,358 shares of its ordinary shares at an average purchase price per share of $33.32. The aggregate amount of cash paid to repurchase the shares was $100 million. As of December 31, 2023, the remaining aggregate amount of authorized repurchases was $435 million.


Off-Balance Sheet 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 December 31, 2023, $85 million has been funded under these programs compared to $170 million as of September 30, 2023.


Effects of Inflation and Changing Prices

The effects of inflation have historically not been significant to Adient's results of operations. Generally, Adient has been able to implement operating efficiencies to sufficiently offset cost increases, which over time have been moderate. The automotive industry has experienced periods of significant volatility in commodity and other input costs, including steel, petrochemical, freight energy and labor costs. This price volatility may continue into the future as demand increases and/or supply remains constrained. Price volatility has resulted in an overall increase of input costs for Adient that may not be, or may only be partially, offset through customer negotiations.


Critical Accounting Estimates and Policies

See "Critical Accounting Estimates and Policies" under the heading "Item 7" of Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, for a discussion of critical accounting estimates and policies. There have been no material changes to Adient's critical accounting estimates and policies during the three months ended December 31, 2023.


New Accounting Pronouncements

See Note 1, "Organization and Summary of Significant Accounting Policies," of the notes to consolidated financial statements for a discussion of new accounting pronouncements.

Adient plc | Form 10-Q | 38


Other Information

Not applicable

Item 3.Quantitative and Qualitative Disclosures About Market Risk

As of December 31, 2023, Adient had not experienced any adverse changes in market risk exposures that materially affected the quantitative and qualitative disclosures presented in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2023.


Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, Adient's principal executive officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act")), which are designed to provide reasonable assurance that we are able to record, process, summarize and report the information required to be disclosed in our reports under the Exchange Act within the time periods specified in SEC rules and forms. Based on their evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed in reports that we file or submit under the Exchange Act is accumulated and communicated to management, and made known to our principal executive officer and principal financial officer, on a timely basis to ensure that it is recorded, processed, summarized and reported within the time period specified in the SEC's rules and forms.

Changes in Internal Control over Financial Reporting

During the first quarter of fiscal 2024, Adient implemented a new ERP system at certain of its 100% owned entities in China. The implementation of the ERP is planned to occur in phases over the coming years for all majority-owned entities in China. There were no other changes in internal control over financial reporting during the first quarter of fiscal 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Adient plc | Form 10-Q | 39

PART II - OTHER INFORMATION

Item 1.Legal Proceedings

Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability, product safety, environmental, safety and health, intellectual property, employment, 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. Adient accrues for potential liabilities in a manner consistent with accounting principles generally accepted in the United States; that is, when it is probable a liability has been incurred and the amount of the liability is reasonably estimable.

Information with respect to this item may be found in Note 17, "Commitments and Contingencies," of the notes to consolidated financial statements in this Quarterly Report on Form 10-Q, which information is incorporated herein by reference.

Additional information on Adient's commitments and contingencies can be found in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2023.


Item 1A.Risk Factors

There are no material changes from the risk factors as previously disclosed in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2023.


Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sale of Equity Securities

None.

(b) Use of Proceeds

None.

(c) Repurchase of Equity Securities

Share repurchase activity during the three months ended December 31, 2023 was as follows:

PeriodsTotal Number of Shares (or Units) PurchasedAverage 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)
October 1 to October 31, 2023— $— — $535 
November 1 to November 30, 20231,565,234 32.38 1,565,234 484 
December 1 to December 31, 20231,438,124 34.33 1,438,124 435 
3,003,358 $33.32 3,003,358 $435 

Adient plc | Form 10-Q | 40

(1) 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. Repurchased shares were retired immediately upon repurchase.


Item 3.Defaults Upon Senior Securities
None.


Item 4.Mine Safety Disclosures
Not applicable.


Item 5.Other Information

During the first quarter of fiscal year 2024, none of Adient’s directors or executive officers adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as those terms are defined in Item 408(a) of Regulation S-K.
Adient plc | Form 10-Q | 41

Item 6.Exhibit Index

EXHIBIT INDEX
Exhibit No.Exhibit Title
10.1 
31.1 
31.2 
32.1 
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104 
Cover Page Interactive Data File (embedded within the Inline XBRL document)

Adient plc | Form 10-Q | 42

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Adient plc
By:/s/ Jerome J. Dorlack
Jerome J. Dorlack
President and Chief Executive Officer
Date:February 7, 2024
By:/s/ Mark A. Oswald
Mark A. Oswald
Executive Vice President and Chief Financial Officer
Date:February 7, 2024

Adient plc | Form 10-Q | 43

Exhibit 31.1
Certification
I, Jerome J. Dorlack, certify that:
1I have reviewed this quarterly report on Form 10-Q of Adient plc;
2Based 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;
3Based 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;
4The 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
5The 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:February 7, 2024
By:/s/ Jerome J. Dorlack
Jerome J. Dorlack
President and Chief Executive Officer



Exhibit 31.2
Certification
I, Mark A. Oswald, certify that:
1I have reviewed this quarterly report on Form 10-Q of Adient plc;
2Based 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;
3Based 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;
4The 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
5The 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:February 7, 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

I, Douglas G. Del Grosso, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Adient plc on Form 10-Q for the period ended December 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Adient plc.
Date:February 7, 2024
By:/s/ Jerome J. Dorlack
Jerome J. Dorlack
President and Chief Executive Officer

I, Jerome J. Dorlack, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Adient plc on Form 10-Q for the period ended December 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Adient plc.
Date:February 7, 2024
By:/s/ Mark A. Oswald
Mark A. Oswald
Executive Vice President and Chief Financial Officer
A signed original of this written statement required by Section 906 has been provided to Adient plc and will be retained by Adient plc and furnished to the Securities and Exchange Commission or its staff upon request.


v3.24.0.1
Cover
 3 Months Ended
Dec. 31, 2023
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Dec. 31, 2023
Document Transition Report false
Entity File Number 001-37757
Entity Registrant Name Adient plc
Entity Incorporation, State or Country Code L2
Entity Tax Identification Number 98-1328821
Entity Address, Address Line One 3 Dublin Landings
Entity Address, Address Line Two North Wall Quay
Entity Address, City or Town Dublin 1
Entity Address, Country IE
Entity Address, Postal Zip Code D01 H104
City Area Code 734
Local Phone Number 254-5000
Title of 12(b) Security Ordinary Shares, par value $0.001
Trading Symbol ADNT
Security Exchange Name NYSE
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Common Stock, Shares Outstanding 91,245,859
Entity Central Index Key 0001670541
Current Fiscal Year End Date --09-30
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q1
Amendment Flag false
v3.24.0.1
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]    
Net sales $ 3,660 $ 3,699
Cost of sales 3,414 3,468
Gross profit 246 231
Selling, general and administrative expenses 147 138
Restructuring and impairment costs 11 7
Equity income 23 28
Earnings before interest and income taxes 111 114
Net financing charges 44 41
Other pension expense (income) 2 9
Income before income taxes 65 64
Income tax provision (benefit) 20 31
Net income 45 33
Income attributable to noncontrolling interests 25 21
Net income attributable to Adient $ 20 $ 12
Earnings per share:    
Basic (in usd per share) $ 0.22 $ 0.13
Diluted (in usd per share) $ 0.21 $ 0.13
Shares used in computing earnings per share:    
Basic (in shares) 92.9 95.1
Diluted (in shares) 93.6 95.9
v3.24.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]    
Net income $ 45 $ 33
Other comprehensive income, net of tax:    
Foreign currency translation adjustments 142 106
Realized and unrealized gains on derivatives 9 25
Other comprehensive income 151 131
Total comprehensive income 196 164
Comprehensive income attributable to noncontrolling interests 38 37
Comprehensive income attributable to Adient $ 158 $ 127
v3.24.0.1
Consolidated Statements of Financial Position - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Assets    
Cash and cash equivalents $ 990 $ 1,110
Accounts receivable - net 1,661 1,874
Inventories 833 841
Other current assets 590 491
Current assets 4,074 4,316
Property, plant and equipment - net 1,401 1,382
Goodwill 2,138 2,094
Other intangible assets - net 401 408
Investments in partially-owned affiliates 322 303
Assets held for sale 7 7
Other noncurrent assets 954 914
Total assets 9,297 9,424
Liabilities and Shareholders' Equity    
Short-term debt 7 2
Current portion of long-term debt 137 132
Accounts payable 2,422 2,526
Accrued compensation and benefits 329 400
Restructuring reserve 54 51
Other current liabilities 599 627
Current liabilities 3,548 3,738
Long-term debt 2,403 2,401
Pension and postretirement benefits 95 92
Other noncurrent liabilities 578 590
Long-term liabilities 3,076 3,083
Commitments and Contingencies (Note 17)
Redeemable noncontrolling interests 57 57
Preferred shares issued, par value $0.001; 100,000,000 shares authorized, Zero shares issued and outstanding at December 31, 2023 0 0
Ordinary shares issued, par value $0.001; 500,000,000 shares authorized, 91,245,859 shares issued and outstanding at December 31, 2023 0 0
Additional paid-in capital 3,872 3,973
Accumulated deficit (883) (903)
Accumulated other comprehensive income (loss) (704) (842)
Shareholders' equity attributable to Adient 2,285 2,228
Noncontrolling interests 331 318
Total shareholders' equity 2,616 2,546
Total liabilities and shareholders' equity $ 9,297 $ 9,424
v3.24.0.1
Consolidated Statements of Financial Position (Parenthetical)
Dec. 31, 2023
$ / 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) 91,245,859
Common stock, shares outstanding (in shares) 91,245,859
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Operating Activities    
Net income attributable to Adient $ 20 $ 12
Income attributable to noncontrolling interests 25 21
Net income 45 33
Adjustments to reconcile net income to cash provided (used) by operating activities:    
Depreciation 72 69
Amortization of intangibles 11 12
Pension and postretirement expense (benefit) 3 9
Pension and postretirement contributions, net (10) (3)
Equity in earnings of partially-owned affiliates, net of dividends received (6) (16)
Deferred income taxes (6) (1)
Equity-based compensation 13 8
Other 0 (3)
Changes in assets and liabilities, excluding impact of acquisitions/divestitures:    
Receivables 234 167
Inventories 29 22
Other assets (81) (47)
Restructuring reserves (9) (27)
Accounts payable and accrued liabilities (256) (191)
Accrued income taxes 2 12
Cash provided (used) by operating activities 41 44
Investing Activities    
Capital expenditures (55) (61)
Sale of property, plant and equipment 14 15
Acquisition of businesses, net of cash acquired 0 (6)
Proceeds from business divestitures (3) 3
Other 0 (1)
Cash provided (used) by investing activities (44) (50)
Financing Activities    
Increase (decrease) in short-term debt 5 0
Increase (decrease) in long-term debt 0 2
Repayment of long-term debt 0 (2)
Debt financing costs 0 (7)
Share repurchases (100) 0
Dividends paid to noncontrolling interests (48) (50)
Share based compensation and other (12) (12)
Cash provided (used) by financing activities (155) (69)
Effect of exchange rate changes on cash and cash equivalents 38 29
Increase (decrease) in cash and cash equivalents (120) (46)
Cash and cash equivalents at beginning of period 1,110 947
Cash and cash equivalents at end of period $ 990 $ 901
v3.24.0.1
Organization and Summary of Significant Accounting Policies
 3 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Summary of Significant Accounting Policies
1. Organization and Summary of Significant Accounting Policies

Adient is a global leader in the automotive seating supplier industry. Adient has a leading market position in the Americas, Europe and China, and has longstanding 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. Interim results are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to be impacted by supply chain disruptions, inflationary pressures and volatile commodity pricing on certain input costs, along with the impacts of higher interest rates and volatility in consumer demand.

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 December 31, 2023, 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:

(in millions)December 31, 2023September 30, 2023
Current assets$237 $265 
Noncurrent assets112 121 
Total assets$349 $386 
Current liabilities$172 $228 
Noncurrent liabilities12 13 
Total liabilities$184 $241 
Earnings Per Share
The following table shows the computation of basic and diluted earnings per share:
Three Months Ended
December 31,
(in millions, except per share data)20232022
Numerator:
Net income attributable to Adient$20 $12 
Denominator:
Shares outstanding92.9 95.1 
Effect of dilutive securities0.7 0.8 
Diluted shares93.6 95.9 
Earnings per share:
Basic$0.22 $0.13 
Diluted$0.21 $0.13 
The effect of common stock equivalents which would have been anti-dilutive was immaterial and excluded from the calculation of diluted earnings per share for the three months ended December 31, 2023 and 2022.

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 ASUs that are summarized below, each to be effective after fiscal 2024, which are not expected to significantly impact the consolidated financial statements:

Standard to be AdoptedDescriptionDate 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
v3.24.0.1
Revenue Recognition
 3 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
2. 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 first quarter of fiscal 2024 were related to product sales transacted in prior fiscal years.

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. Adient has evaluated the terms of its arrangements and determined that they 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 December 31, 2023. 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.
v3.24.0.1
Acquisitions and Divestitures
 3 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions and Divestitures
3. 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.
v3.24.0.1
Inventories
 3 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Inventories
4. Inventories

Inventories consisted of the following:

(in millions)December 31, 2023September 30, 2023
Raw materials and supplies$629 $644 
Work-in-process33 34 
Finished goods171 163 
Inventories$833 $841 
v3.24.0.1
Goodwill and Other Intangible Assets
 3 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
5. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill are as follows:

(in millions)AmericasEMEAAsiaTotal
Balance at September 30, 2023$609 $317 $1,168 $2,094 
Business divestiture (1)
— — (5)(5)
Currency translation and other1 19 29 49 
Balance at December 31, 2023
$610 $336 $1,192 $2,138 

(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:

 December 31, 2023September 30, 2023
(in millions)Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Intangible assets
Patented technology$80 $(34)$46 $79 $(32)$47 
Customer relationships556 (214)342 550 (201)349 
Trademarks— — — 17 (17)— 
Miscellaneous25 (12)13 24 (12)12 
Total intangible assets$661 $(260)$401 $670 $(262)$408 

Amortization of intangible assets for the three months ended December 31, 2023 and 2022 was $11 million and $12 million, respectively.
v3.24.0.1
Product Warranties
 3 Months Ended
Dec. 31, 2023
Product Warranties Disclosures [Abstract]  
Product Warranties
6. 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:
Three Months Ended
December 31,
(in millions)20232022
Balance at beginning of period$21 $21 
Accruals for warranties issued during the period4 2 
Settlements made (in cash or in kind) during the period(2)(4)
Currency translation— 1 
Balance at end of period$23 $20 
v3.24.0.1
Leases
 3 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases
7. Leases

Adient's lease portfolio consists of operating leases for real estate including production facilities, warehouses and administrative offices, equipment such as forklifts and computer servers and laptops, and fleet vehicles.

The components of lease costs included in the consolidated statement of income for three months ended December 31, 2023 and 2022 were as follows:

Three Months Ended
December 31,
(in millions)20232022
Operating lease cost$27 $26 
Short-term lease cost7 8 
Total lease cost$34 $34 
Operating lease right-of-use assets and lease liabilities included in the consolidated statement of financial position were as follows:

(in millions)December 31, 2023September 30, 2023
Operating leases:
Operating lease right-of-use assetsOther noncurrent assets$245$241
Operating lease liabilities - currentOther current liabilities$81$77
Operating lease liabilities - noncurrentOther noncurrent liabilities163163
$244$240
Weighted average remaining lease term:
Operating leases5 years5 years
Weighted average discount rate:
Operating leases6.5 %6.1 %

Maturities of operating lease liabilities and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year as of December 31, 2023 are as follows:

Operating leases
Fiscal years (in millions)December 31, 2023
2024 (excluding the three months ended December 31, 2023)
$72 
202573 
202649 
202734 
202821 
Thereafter43 
Total lease payments292 
Less: imputed interest(48)
Present value of lease liabilities$244 

Supplemental cash flow information related to leases is as follows:

Three Months Ended
December 31,
(in millions)20232022
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)$16 $8 
Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities$27 $26 
v3.24.0.1
Debt and Financing Arrangements
 3 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt and Financing Arrangements
8. Debt and Financing Arrangements

Long-term and short-term debt consisted of the following:

(in millions)December 31, 2023September 30, 2023
Long-term debt:
8.25% Notes due 2031
$500 $500 
7.00% Secured Notes due 2028
500 500 
Term Loan B due in 2028635 635 
4.875% Notes due in 2026
795 795 
3.50% Notes due in 2024
136 130 
Other bank borrowings and finance lease obligations3 4 
Less: debt issuance costs(29)(31)
Gross long-term debt2,540 2,533 
Less: current portion137 132 
Net long-term debt$2,403 $2,401 
Short-term debt:
Other bank borrowings$7 $2 
Total short-term debt$7 $2 

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 December 31, 2023, Adient had not drawn down on the ABL Credit Facility and had availability under this facility of $938 million (net of $12 million of letters of credit).

In addition, Adient US and Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintain 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 December 31, 2023, which is maintained fully at Adient Global Holdings S.à r.l and is due at final maturity on April 8, 2028. Interest on the Term Loan B Agreement accrues at Term SOFR plus an applicable margin equal to 3.25%. The Term Loan B Agreement also 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. In January 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.
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 fiscal 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 will be 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 new 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 December 31, 2023 and September 30, 2023.

AGH also previously maintained €823 million aggregate principal amount of 3.50% unsecured notes due in August 2024. During fiscal 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 December 31, 2023, the remaining balance of this debt was €123 million ($136 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:

Three Months Ended
December 31,
(in millions)20232022
Interest expense, net of capitalized interest costs$48 $41 
Banking fees and debt issuance cost amortization4 4 
Interest income(9)(4)
Net foreign exchange1 — 
Net financing charges$44 $41 

Total interest paid on both short and long-term debt for the three months ended December 31, 2023 and 2022 was $60 million and $20 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 December 31, 2023, $85 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 December 31, 2023, and September 30, 2023, Adient's liabilities related to this program were $57 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.
v3.24.0.1
Derivative Instruments and Hedging Activities
 3 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
9. 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 December 31, 2023 and September 30, 2023, respectively.
The €123 million ($136 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.

In January 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:

 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)December 31, 2023September 30, 2023December 31, 2023September 30, 2023
Other current assets
Foreign currency exchange derivatives$38 $30 $5 $4 
Other noncurrent assets
Foreign currency exchange derivatives1 — — — 
Total assets$39 $30 $5 $4 
Other current liabilities
Foreign currency exchange derivatives$4 $8 $— $— 
Other noncurrent liabilities
Foreign currency exchange derivatives1 6 — — 
Long-term debt
Foreign currency denominated debt— 130 — — 
Total liabilities$5 $144 $— $— 

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 December 31, 2023 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:

AssetsLiabilities
(in millions)December 31, 2023September 30, 2023December 31, 2023September 30, 2023
Gross amount recognized$44 $34 $5 $144 
Gross amount eligible for offsetting(5)(12)(5)(12)
Net amount$39 $22 $— $132 

The following table presents the effective portion of pretax gains (losses) recorded in other comprehensive income related to cash flow hedges:

Three Months Ended
December 31,
(in millions)20232022
Foreign currency exchange derivatives$26 $32 
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:
(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesCost of sales$15 $7 
During the next twelve months, $29 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:
(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesNet financing charges$6 $— 
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:

(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesCost of sales$1 $3 
Foreign currency exchange derivativesNet financing charges9 9 
Total$10 $12 

Adient had no outstanding net investment hedges during the three months ended December 31, 2023. The effective portion of pretax gains (losses) recorded in currency translation adjustment (CTA) within other comprehensive income related to net investment hedges was $(69) million for the three months ended December 31, 2022. For the three months ended December 31, 2023 and 2022, no gains or losses were reclassified from CTA into income for Adient's outstanding net investment hedges. For the three months ended December 31, 2023 and 2022, no ineffectiveness was recognized in the consolidated statements of income resulting from cash flow hedges.
v3.24.0.1
Fair Value Measurements
 3 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
10. 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:
 Fair Value Measurements Using:
(in millions)
Total as of
December 31, 2023
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$43 $— $43 $— 
Other noncurrent assets
Foreign currency exchange derivatives1 — 1 — 
Total assets$44 $— $44 $— 
Other current liabilities
Foreign currency exchange derivatives4 — 4 — 
Other noncurrent liabilities
Foreign currency exchange derivatives1 — 1 — 
Total liabilities$5 $— $5 $— 

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)
Other current assets
Foreign currency exchange derivatives$34 $— $34 $— 
Total assets$34 $— $34 $— 
Other current liabilities
Foreign currency exchange derivatives$8 $— $8 $— 
Other noncurrent liabilities
Foreign currency exchange derivatives6 — 6 — 
Total liabilities$14 $— $14 $— 

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 December 31, 2023 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 December 31, 2023 and September 30, 2023, respectively, was determined primarily using market quotes classified as Level 1 inputs within the ASC 820 fair value hierarchy.
v3.24.0.1
Equity and Noncontrolling Interests
 3 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Equity and Noncontrolling Interests
11. Equity and Noncontrolling Interests

For the three months ended December 31, 2023:

(in millions)Ordinary SharesAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)Shareholders' Equity Attributable
 to Adient		Shareholders' Equity Attributable to Noncontrolling InterestsTotal Equity
Balance at September 30, 2023
$— $3,973 $(903)$(842)$2,228 $318 $2,546 
Net income — 20 20 12 32 
Foreign currency translation adjustments— — — 129 129 5 134 
Realized and unrealized gains (losses) on derivatives— — — 9 9 — 9 
Dividends attributable to noncontrolling interests— — — — — (4)(4)
Repurchases of common stock— (100)— — (100)— (100)
Share based compensation and other— (1)— — (1)— (1)
Balance at December 31, 2023
$— $3,872 $(883)$(704)$2,285 $331 $2,616 

For the three months ended December 31, 2022:

(in millions)Ordinary SharesAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)Shareholders' Equity Attributable
 to Adient		Shareholders' Equity Attributable to Noncontrolling InterestsTotal Equity
Balance at September 30, 2022
$— $4,026 $(1,108)$(845)$2,073 $302 $2,375 
Net income— — 12 — 12 14 26 
Foreign currency translation adjustments— — — 90 90 5 95 
Realized and unrealized gains (losses) on derivatives— — — 25 25 — 25 
Dividends attributable to noncontrolling interests— — — — — (4)(4)
Share based compensation and other— (8)— — (8)— (8)
Balance at December 31, 2022
$— $4,018 $(1,096)$(730)$2,192 $317 $2,509 
The following table presents changes in AOCI attributable to Adient:

Three Months Ended
December 31,
(in millions)20232022
Foreign currency translation adjustments
Balance at beginning of period$(854)$(836)
Aggregate adjustment for the period, net of tax129 90 
Balance at end of period (1)
$(725)$(746)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period$13 $(8)
Current period changes in fair value, net of tax21 31 
Reclassification to income, net of tax(12)(6)
Balance at end of period$22 $17 
Pension and postretirement plans
Balance at beginning of period$(1)$(1)
Balance at end of period$(1)$(1)
Accumulated other comprehensive income (loss), end of period$(704)$(730)

(1) The ending balance of foreign currency translation adjustments as of December 31, 2023 and 2022 include cumulative net investment hedge gains of $74 million and $75 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:

Three Months Ended
December 31,
(in millions)20232022
Beginning balance$57 $45 
Net income (1)
13 7 
Dividends(21)(18)
Foreign currency translation adjustments8 11 
Ending balance$57 $45 

(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 the shares was $65 million. During the first quarter of fiscal 2024, Adient repurchased and immediately retired 3,003,358 shares of its
ordinary shares at an average purchase price per share of $33.32. The aggregate amount of cash paid to repurchase the shares was $100 million. As of December 31, 2023, the remaining aggregate amount of authorized repurchases was $435 million.
v3.24.0.1
Retirement Plans
 3 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Retirement Plans
12. 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:

Three Months Ended
December 31,
(in millions)20232022
Service cost$1 $1 
Interest cost5 4 
Expected return on plan assets(3)(3)
Net actuarial and settlement/curtailment (gain) loss— 8 
Net periodic benefit cost$3 $10 

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 quarter of fiscal 2023, Adient recorded an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.
v3.24.0.1
Restructuring and Impairment Costs
 3 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Impairment Costs
13. 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.

During the first quarter of fiscal 2024, Adient committed to a restructuring plan ("2024 Plan") resulting in charges of $11 million. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions in EMEA and Americas. The restructuring actions are expected to be substantially completed by fiscal 2025. 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 December 31, 2023:

(in millions)Employee Severance and Termination BenefitsCurrency
Translation		Total
Balance at September 30, 2023$56 $(5)$51 
2024 Plan charges11 — 11 
Utilized - cash(9)— (9)
Noncash and other adjustments— 1 1 
Balance at December 31, 2023
$58 $(4)$54 
For the three months ended December 31, 2022:

(in millions)Employee Severance and Termination BenefitsCurrency
Translation		Total
Balance at September 30, 2022$69 $(9)$60 
2023 Plan charges7 — 7 
Utilized - cash(27)— (27)
Noncash and other adjustments— 5 5 
Balance at December 31, 2022$49 $(4)$45 

Adient's restructuring plans include workforce reductions of approximately 13,000 employees. Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee or on a lump sum basis in accordance with individual severance agreements. As of December 31, 2023, approximately 11,000 of the employees have been separated from Adient pursuant to the restructuring plans. In addition, the restructuring plans included twenty-six plant closures. As of December 31, 2023, twenty-two of the twenty-six plants have been closed.

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. Because of the importance of new vehicle sales by major automotive manufacturers to operations, Adient is affected by the general business conditions in the automotive industry. 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.
v3.24.0.1
Income Taxes
 3 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
14. 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 months ended December 31, 2023, Adient’s income tax expense was $20 million equating to an effective tax rate of 31%. The three 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. For the three months ended December 31, 2022 Adient’s income tax expense was $31 million equating to an effective tax rate of 48%. The three 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 first 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 it was more likely than not that certain deferred tax assets recorded in Luxembourg during the three months ended December 31, 2023, would not be realized and established a valuation allowance, which did not have a material impact on Adient’s consolidated financial statements.

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 December 31, 2023, Adient had gross tax effected unrecognized tax benefits of $537 million. If recognized, $168 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest at December 31, 2023 was approximately $31 million (net of tax benefit). The interest and penalties accrued for the three months ended December 31, 2023 was $2 million. At December 31, 2022, Adient had gross tax effected unrecognized tax benefits of $522 million. If recognized, $122 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest at December 31, 2022 was approximately $25 million (net of tax benefit). The interest and penalties accrued for the three months ended December 31, 2022 was $2 million. Adient recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.
v3.24.0.1
Segment Information
 3 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information
15. 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.

 Three Months Ended
December 31,
(in millions)20232022
Net Sales
Americas$1,647 $1,724 
EMEA1,268 1,182 
Asia770 821 
Eliminations(25)(28)
Total net sales$3,660 $3,699 
Three Months Ended
December 31,
(in millions)20232022
Adjusted EBITDA
Americas$80 $69 
EMEA45 28 
Asia114 138 
Corporate-related costs (1)
(23)(23)
Restructuring and impairment costs (2)
(11)(7)
Purchase accounting amortization (3)
(11)(12)
Restructuring related charges (4)
9 (3)
Depreciation
(72)(69)
Stock based compensation (5)
(13)(8)
Other items (6)
(7)1 
Earnings before interest and income taxes111 114 
Net financing charges(44)(41)
Other pension income (expense) (7)
(2)(9)
Income before income taxes$65 $64 

Notes:

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.
(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and non-recurring impairment charges.
(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 directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. The three months ended December 31, 2023 includes a $10 million gain on sale of a restructured facility.
(5) During the three months ended December 31, 2023, 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 prior periods.
(6) The three months ended December 31, 2023 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 contract related settlement. The three months ended December 31, 2022 includes a $1 million non-recurring adjustment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia, and $1 million of indirect tax recoveries in Brazil, partially offset by $1 million of transaction costs.

(7) The three months ended December 31, 2022 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:

Net Sales
 Three Months Ended
December 31,
(in millions)20232022
Americas
United States$1,422 $1,553 
Mexico632 607 
Other Americas86 95 
Regional elimination(493)(531)
1,647 1,724 
EMEA
Spain180 154 
Germany224 248 
Poland249 209 
Czech Republic195 228 
Other EMEA769 667 
Regional elimination(349)(324)
1,268 1,182 
Asia
China374 398 
Korea122 138 
Thailand122 141 
Japan93 87 
Other Asia71 65 
Regional elimination(12)(8)
770 821 
Inter-segment elimination(25)(28)
Total$3,660 $3,699 
v3.24.0.1
Nonconsolidated Partially-Owned Affiliates
 3 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Nonconsolidated Partially-Owned Affiliates
16. 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 December 31, 2023 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 months ended December 31, 2023 and 2022, respectively.
Adient maintains total investments in partially-owned affiliates of $322 million and $303 million at December 31, 2023 and September 30, 2023, respectively. Operating information for nonconsolidated partially-owned affiliates is as follows:

Three Months Ended
December 31,
(in millions)20232022
Income statement data:
Net sales$1,037 $976 
Gross profit$93 $101 
Net income$49 $60 
Net income attributable to the entity$48 $59 

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.
v3.24.0.1
Commitments and Contingencies
 3 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
17. 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, 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 December 31, 2023 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.
v3.24.0.1
Related Party Transactions
 3 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related Party Transactions
18. 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:

Three Months Ended
December 31,
(in millions)20232022
Net sales to related partiesNet sales$66 $58 
Purchases from related partiesCost of sales103 114 
The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position:

(in millions)December 31, 2023September 30, 2023
Accounts receivable due from related partiesAccounts receivable$28 $26 
Accounts payable due to related partiesAccounts payable53 67 

Average receivable and payable balances with related parties remained consistent with the period end balances shown above.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure    
Net Income (Loss) Attributable to Parent $ 20 $ 12
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
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
v3.24.0.1
Organization and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Dec. 31, 2023
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. Interim results are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to be impacted by supply chain disruptions, inflationary pressures and volatile commodity pricing on certain input costs, along with the impacts of higher interest rates and volatility in consumer demand.
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.
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 December 31, 2023, 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.
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 ASUs that are summarized below, each to be effective after fiscal 2024, which are not expected to significantly impact the consolidated financial statements:

Standard to be AdoptedDescriptionDate 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
v3.24.0.1
Organization and Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Dec. 31, 2023
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:

(in millions)December 31, 2023September 30, 2023
Current assets$237 $265 
Noncurrent assets112 121 
Total assets$349 $386 
Current liabilities$172 $228 
Noncurrent liabilities12 13 
Total liabilities$184 $241 
Schedule of Computation of Basic and Diluted Earnings Per Share
The following table shows the computation of basic and diluted earnings per share:
Three Months Ended
December 31,
(in millions, except per share data)20232022
Numerator:
Net income attributable to Adient$20 $12 
Denominator:
Shares outstanding92.9 95.1 
Effect of dilutive securities0.7 0.8 
Diluted shares93.6 95.9 
Earnings per share:
Basic$0.22 $0.13 
Diluted$0.21 $0.13 
Schedule of New Accounting Pronouncements
Adient has considered the ASUs that are summarized below, each to be effective after fiscal 2024, which are not expected to significantly impact the consolidated financial statements:

Standard to be AdoptedDescriptionDate 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
v3.24.0.1
Inventories (Tables)
 3 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consisted of the following:

(in millions)December 31, 2023September 30, 2023
Raw materials and supplies$629 $644 
Work-in-process33 34 
Finished goods171 163 
Inventories$833 $841 
v3.24.0.1
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Dec. 31, 2023
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:

(in millions)AmericasEMEAAsiaTotal
Balance at September 30, 2023$609 $317 $1,168 $2,094 
Business divestiture (1)
— — (5)(5)
Currency translation and other1 19 29 49 
Balance at December 31, 2023
$610 $336 $1,192 $2,138 

(1) Refer to Note 3, "Acquisitions and Divestitures," for information on the sale of 51% of Adient's interest in LFADNT.
Schedule of Intangible Assets
Adient's intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of:

 December 31, 2023September 30, 2023
(in millions)Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Intangible assets
Patented technology$80 $(34)$46 $79 $(32)$47 
Customer relationships556 (214)342 550 (201)349 
Trademarks— — — 17 (17)— 
Miscellaneous25 (12)13 24 (12)12 
Total intangible assets$661 $(260)$401 $670 $(262)$408 
v3.24.0.1
Product Warranties (Tables)
 3 Months Ended
Dec. 31, 2023
Product Warranties Disclosures [Abstract]  
Schedule of Product Warranty Liability
The changes in Adient's total product warranty liability are as follows:
Three Months Ended
December 31,
(in millions)20232022
Balance at beginning of period$21 $21 
Accruals for warranties issued during the period4 2 
Settlements made (in cash or in kind) during the period(2)(4)
Currency translation— 1 
Balance at end of period$23 $20 
v3.24.0.1
Leases (Tables)
 3 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Lease Cost
The components of lease costs included in the consolidated statement of income for three months ended December 31, 2023 and 2022 were as follows:

Three Months Ended
December 31,
(in millions)20232022
Operating lease cost$27 $26 
Short-term lease cost7 8 
Total lease cost$34 $34 
Supplemental cash flow information related to leases is as follows:

Three Months Ended
December 31,
(in millions)20232022
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)$16 $8 
Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities$27 $26 
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:

(in millions)December 31, 2023September 30, 2023
Operating leases:
Operating lease right-of-use assetsOther noncurrent assets$245$241
Operating lease liabilities - currentOther current liabilities$81$77
Operating lease liabilities - noncurrentOther noncurrent liabilities163163
$244$240
Weighted average remaining lease term:
Operating leases5 years5 years
Weighted average discount rate:
Operating leases6.5 %6.1 %
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 December 31, 2023 are as follows:

Operating leases
Fiscal years (in millions)December 31, 2023
2024 (excluding the three months ended December 31, 2023)
$72 
202573 
202649 
202734 
202821 
Thereafter43 
Total lease payments292 
Less: imputed interest(48)
Present value of lease liabilities$244 
v3.24.0.1
Debt and Financing Arrangements (Tables)
 3 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
Long-term and short-term debt consisted of the following:

(in millions)December 31, 2023September 30, 2023
Long-term debt:
8.25% Notes due 2031
$500 $500 
7.00% Secured Notes due 2028
500 500 
Term Loan B due in 2028635 635 
4.875% Notes due in 2026
795 795 
3.50% Notes due in 2024
136 130 
Other bank borrowings and finance lease obligations3 4 
Less: debt issuance costs(29)(31)
Gross long-term debt2,540 2,533 
Less: current portion137 132 
Net long-term debt$2,403 $2,401 
Short-term debt:
Other bank borrowings$7 $2 
Total short-term debt$7 $2 
Schedule of Net Financing Charges
Adient's net financing charges in the consolidated statements of income contained the following components:

Three Months Ended
December 31,
(in millions)20232022
Interest expense, net of capitalized interest costs$48 $41 
Banking fees and debt issuance cost amortization4 4 
Interest income(9)(4)
Net foreign exchange1 — 
Net financing charges$44 $41 
v3.24.0.1
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Dec. 31, 2023
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:

 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)December 31, 2023September 30, 2023December 31, 2023September 30, 2023
Other current assets
Foreign currency exchange derivatives$38 $30 $5 $4 
Other noncurrent assets
Foreign currency exchange derivatives1 — — — 
Total assets$39 $30 $5 $4 
Other current liabilities
Foreign currency exchange derivatives$4 $8 $— $— 
Other noncurrent liabilities
Foreign currency exchange derivatives1 6 — — 
Long-term debt
Foreign currency denominated debt— 130 — — 
Total liabilities$5 $144 $— $— 
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:

AssetsLiabilities
(in millions)December 31, 2023September 30, 2023December 31, 2023September 30, 2023
Gross amount recognized$44 $34 $5 $144 
Gross amount eligible for offsetting(5)(12)(5)(12)
Net amount$39 $22 $— $132 
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:

Three Months Ended
December 31,
(in millions)20232022
Foreign currency exchange derivatives$26 $32 
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:
(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesCost of sales$15 $7 
The following table presents the location and amount of pretax gains (losses) on fair value hedge activity in Adient's consolidated statements of income:
(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesNet financing charges$6 $— 
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:

(in millions)Three Months Ended
December 31,
20232022
Foreign currency exchange derivativesCost of sales$1 $3 
Foreign currency exchange derivativesNet financing charges9 9 
Total$10 $12 
v3.24.0.1
Fair Value Measurements (Tables)
 3 Months Ended
Dec. 31, 2023
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:
 Fair Value Measurements Using:
(in millions)
Total as of
December 31, 2023
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$43 $— $43 $— 
Other noncurrent assets
Foreign currency exchange derivatives1 — 1 — 
Total assets$44 $— $44 $— 
Other current liabilities
Foreign currency exchange derivatives4 — 4 — 
Other noncurrent liabilities
Foreign currency exchange derivatives1 — 1 — 
Total liabilities$5 $— $5 $— 

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)
Other current assets
Foreign currency exchange derivatives$34 $— $34 $— 
Total assets$34 $— $34 $— 
Other current liabilities
Foreign currency exchange derivatives$8 $— $8 $— 
Other noncurrent liabilities
Foreign currency exchange derivatives6 — 6 — 
Total liabilities$14 $— $14 $— 
v3.24.0.1
Equity and Noncontrolling Interests (Tables)
 3 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Schedule of Stockholders Equity
For the three months ended December 31, 2023:

(in millions)Ordinary SharesAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)Shareholders' Equity Attributable
 to Adient		Shareholders' Equity Attributable to Noncontrolling InterestsTotal Equity
Balance at September 30, 2023
$— $3,973 $(903)$(842)$2,228 $318 $2,546 
Net income — 20 20 12 32 
Foreign currency translation adjustments— — — 129 129 5 134 
Realized and unrealized gains (losses) on derivatives— — — 9 9 — 9 
Dividends attributable to noncontrolling interests— — — — — (4)(4)
Repurchases of common stock— (100)— — (100)— (100)
Share based compensation and other— (1)— — (1)— (1)
Balance at December 31, 2023
$— $3,872 $(883)$(704)$2,285 $331 $2,616 

For the three months ended December 31, 2022:

(in millions)Ordinary SharesAdditional Paid-in CapitalRetained Earnings
(Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)Shareholders' Equity Attributable
 to Adient		Shareholders' Equity Attributable to Noncontrolling InterestsTotal Equity
Balance at September 30, 2022
$— $4,026 $(1,108)$(845)$2,073 $302 $2,375 
Net income— — 12 — 12 14 26 
Foreign currency translation adjustments— — — 90 90 5 95 
Realized and unrealized gains (losses) on derivatives— — — 25 25 — 25 
Dividends attributable to noncontrolling interests— — — — — (4)(4)
Share based compensation and other— (8)— — (8)— (8)
Balance at December 31, 2022
$— $4,018 $(1,096)$(730)$2,192 $317 $2,509 
Schedule of AOCI
The following table presents changes in AOCI attributable to Adient:

Three Months Ended
December 31,
(in millions)20232022
Foreign currency translation adjustments
Balance at beginning of period$(854)$(836)
Aggregate adjustment for the period, net of tax129 90 
Balance at end of period (1)
$(725)$(746)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period$13 $(8)
Current period changes in fair value, net of tax21 31 
Reclassification to income, net of tax(12)(6)
Balance at end of period$22 $17 
Pension and postretirement plans
Balance at beginning of period$(1)$(1)
Balance at end of period$(1)$(1)
Accumulated other comprehensive income (loss), end of period$(704)$(730)

(1) The ending balance of foreign currency translation adjustments as of December 31, 2023 and 2022 include cumulative net investment hedge gains of $74 million and $75 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.
Schedule of Changes in Redeemable Noncontrolling Interest The following table presents changes in the redeemable noncontrolling interests:
Three Months Ended
December 31,
(in millions)20232022
Beginning balance$57 $45 
Net income (1)
13 7 
Dividends(21)(18)
Foreign currency translation adjustments8 11 
Ending balance$57 $45 

(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.
v3.24.0.1
Retirement Plans (Tables)
 3 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Cost The following table contains the components of net periodic benefit cost:
Three Months Ended
December 31,
(in millions)20232022
Service cost$1 $1 
Interest cost5 4 
Expected return on plan assets(3)(3)
Net actuarial and settlement/curtailment (gain) loss— 8 
Net periodic benefit cost$3 $10 
v3.24.0.1
Restructuring and Impairment Costs (Tables)
 3 Months Ended
Dec. 31, 2023
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 December 31, 2023:

(in millions)Employee Severance and Termination BenefitsCurrency
Translation		Total
Balance at September 30, 2023$56 $(5)$51 
2024 Plan charges11 — 11 
Utilized - cash(9)— (9)
Noncash and other adjustments— 1 1 
Balance at December 31, 2023
$58 $(4)$54 
For the three months ended December 31, 2022:

(in millions)Employee Severance and Termination BenefitsCurrency
Translation		Total
Balance at September 30, 2022$69 $(9)$60 
2023 Plan charges7 — 7 
Utilized - cash(27)— (27)
Noncash and other adjustments— 5 5 
Balance at December 31, 2022$49 $(4)$45 
v3.24.0.1
Segment Information (Tables)
 3 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of Financial Information for Reportable Segments
 Three Months Ended
December 31,
(in millions)20232022
Net Sales
Americas$1,647 $1,724 
EMEA1,268 1,182 
Asia770 821 
Eliminations(25)(28)
Total net sales$3,660 $3,699 
Three Months Ended
December 31,
(in millions)20232022
Adjusted EBITDA
Americas$80 $69 
EMEA45 28 
Asia114 138 
Corporate-related costs (1)
(23)(23)
Restructuring and impairment costs (2)
(11)(7)
Purchase accounting amortization (3)
(11)(12)
Restructuring related charges (4)
9 (3)
Depreciation
(72)(69)
Stock based compensation (5)
(13)(8)
Other items (6)
(7)1 
Earnings before interest and income taxes111 114 
Net financing charges(44)(41)
Other pension income (expense) (7)
(2)(9)
Income before income taxes$65 $64 

Notes:

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.
(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and non-recurring impairment charges.
(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 directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. The three months ended December 31, 2023 includes a $10 million gain on sale of a restructured facility.
(5) During the three months ended December 31, 2023, 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 prior periods.
(6) The three months ended December 31, 2023 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 contract related settlement. The three months ended December 31, 2022 includes a $1 million non-recurring adjustment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia, and $1 million of indirect tax recoveries in Brazil, partially offset by $1 million of transaction costs.
(7) The three months ended December 31, 2022 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.
Schedule of Disaggregation of Revenue by Geographical Market
Revenue by geographic area is as follows:

Net Sales
 Three Months Ended
December 31,
(in millions)20232022
Americas
United States$1,422 $1,553 
Mexico632 607 
Other Americas86 95 
Regional elimination(493)(531)
1,647 1,724 
EMEA
Spain180 154 
Germany224 248 
Poland249 209 
Czech Republic195 228 
Other EMEA769 667 
Regional elimination(349)(324)
1,268 1,182 
Asia
China374 398 
Korea122 138 
Thailand122 141 
Japan93 87 
Other Asia71 65 
Regional elimination(12)(8)
770 821 
Inter-segment elimination(25)(28)
Total$3,660 $3,699 
v3.24.0.1
Nonconsolidated Partially-Owned Affiliates (Tables)
 3 Months Ended
Dec. 31, 2023
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:
Three Months Ended
December 31,
(in millions)20232022
Income statement data:
Net sales$1,037 $976 
Gross profit$93 $101 
Net income$49 $60 
Net income attributable to the entity$48 $59 
v3.24.0.1
Related Party Transactions (Tables)
 3 Months Ended
Dec. 31, 2023
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:

Three Months Ended
December 31,
(in millions)20232022
Net sales to related partiesNet sales$66 $58 
Purchases from related partiesCost of sales103 114 
The following table sets forth the amount of accounts receivable due from and payable to related parties in the consolidated statements of financial position:

(in millions)December 31, 2023September 30, 2023
Accounts receivable due from related partiesAccounts receivable$28 $26 
Accounts payable due to related partiesAccounts payable53 67 
v3.24.0.1
Organization and Summary of Significant Accounting Policies - Narrative (Details)
$ in Millions
Dec. 31, 2023
USD ($)
entity
Oct. 01, 2023
Sep. 30, 2023
USD ($)
entity
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Number of VIE entities | entity 2   2
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Supplier finance program, obligation, current | $ $ 57   $ 50
Minimum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Supplier finance program, payment period   45 days  
Maximum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Supplier finance program, payment period   120 days  
v3.24.0.1
Organization and Summary of Significant Accounting Policies - Schedule of Carrying Amounts and Classifications of Assets and Liabilities for Consolidated VIEs (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Variable Interest Entity [Line Items]    
Current assets $ 4,074 $ 4,316
Total assets 9,297 9,424
Current liabilities 3,548 3,738
Noncurrent liabilities 3,076 3,083
VIEs    
Variable Interest Entity [Line Items]    
Current assets 237 265
Noncurrent assets 112 121
Total assets 349 386
Current liabilities 172 228
Noncurrent liabilities 12 13
Total liabilities $ 184 $ 241
v3.24.0.1
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
Dec. 31, 2023
Dec. 31, 2022
Numerator:    
Net income attributable to Adient $ 20 $ 12
Denominator:    
Shares outstanding (in shares) 92.9 95.1
Effect of dilutive securities (in shares) 0.7 0.8
Diluted shares (in shares) 93.6 95.9
Earnings per share:    
Basic (in usd per share) $ 0.22 $ 0.13
Diluted (in usd per share) $ 0.21 $ 0.13
v3.24.0.1
Revenue Recognition - Narratives (Details)
 3 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenues related to prior year sales, percent 1.00%
v3.24.0.1
Acquisitions and Divestitures (Details)
¥ in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Nov. 30, 2023
USD ($)
Apr. 30, 2023
USD ($)
Apr. 30, 2023
CNY (¥)
Sep. 30, 2023
USD ($)
Sep. 30, 2023
CNY (¥)
Sep. 30, 2022
USD ($)
Sep. 30, 2022
CNY (¥)
Dec. 31, 2023
USD ($)
Nov. 30, 2023
CNY (¥)
Oct. 31, 2023
Business Acquisition [Line Items]                    
Goodwill       $ 2,094.0       $ 2,138.0    
YFAT                    
Business Acquisition [Line Items]                    
Business combination, deposit to acquire interest in joint venture       11.0 ¥ 75 $ 12.0 ¥ 75      
Percent of total consideration           50.00% 50.00%      
Goodwill   $ 13.0                
Acquisition of businesses, net of cash acquired   5.0                
KEIPER | YFAT                    
Business Acquisition [Line Items]                    
Net purchase consideration   $ 23.0 ¥ 150              
Asia                    
Business Acquisition [Line Items]                    
Goodwill       $ 1,168.0       $ 1,192.0    
Assets Held For Sale | Adient (Langfang) Seating Co., Ltd                    
Business Acquisition [Line Items]                    
Subsidiary, ownership percentage disposed                   100.00%
Disposed of By Sale | Adient (Langfang) Seating Co., Ltd                    
Business Acquisition [Line Items]                    
Subsidiary, ownership percentage disposed 51.00%               51.00%  
Consideration for disposal group $ 6.0               ¥ 44  
Deconsolidated cash 9.0                  
Loss on disposal 8.0                  
Disposed of By Sale | Adient (Langfang) Seating Co., Ltd | Asia                    
Business Acquisition [Line Items]                    
Goodwill $ 5.0                  
v3.24.0.1
Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 629 $ 644
Work-in-process 33 34
Finished goods 171 163
Inventories $ 833 $ 841
v3.24.0.1
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2023
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 2,094
Business divestiture (5)
Currency translation and other 49
Ending balance 2,138
Americas  
Goodwill [Roll Forward]  
Beginning balance 609
Business divestiture 0
Currency translation and other 1
Ending balance 610
EMEA  
Goodwill [Roll Forward]  
Beginning balance 317
Business divestiture 0
Currency translation and other 19
Ending balance 336
Asia  
Goodwill [Roll Forward]  
Beginning balance 1,168
Business divestiture (5)
Currency translation and other 29
Ending balance $ 1,192
v3.24.0.1
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 661 $ 670
Accumulated Amortization (260) (262)
Net 401 408
Patented technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 80 79
Accumulated Amortization (34) (32)
Net 46 47
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 556 550
Accumulated Amortization (214) (201)
Net 342 349
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 25 24
Accumulated Amortization (12) (12)
Net $ 13 $ 12
v3.24.0.1
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization of intangibles $ 11 $ 12
v3.24.0.1
Product Warranties (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]    
Balance at beginning of period $ 21 $ 21
Accruals for warranties issued during the period 4 2
Settlements made (in cash or in kind) during the period (2) (4)
Currency translation 0 1
Balance at end of period $ 23 $ 20
v3.24.0.1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating lease cost $ 27 $ 26
Short-term lease cost 7 8
Total lease cost $ 34 $ 34
v3.24.0.1
Leases - Schedule of Operating Lease Right of Use Assets and Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Leases [Abstract]    
Operating lease right-of-use assets $ 245 $ 241
Operating lease liabilities - current 81 77
Operating lease liabilities - noncurrent 163 163
Present value of lease liabilities $ 244 $ 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
v3.24.0.1
Leases - Schedule of Operating Lease Liabilities and Minimum Payments (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Operating leases    
2024 (excluding the three months ended December 31, 2023) $ 72  
2025 73  
2026 49  
2027 34  
2028 21  
Thereafter 43  
Total lease payments 292  
Less: imputed interest (48)  
Present value of lease liabilities $ 244 $ 240
v3.24.0.1
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Right-of-use assets obtained in exchange for lease obligations:    
Operating leases (non-cash activity) $ 16 $ 8
Operating cash flows:    
Cash paid for amounts included in the measurement of lease liabilities $ 27 $ 26
v3.24.0.1
Debt and Financing Arrangements - Schedule of Debt (Details)
€ in Millions, $ in Millions
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Sep. 30, 2023
USD ($)
Long-term debt:      
Less: debt issuance costs $ (29)   $ (31)
Gross long-term debt 2,540   2,533
Less: current portion 137   132
Net long-term debt 2,403   2,401
Short-term debt:      
Other bank borrowings 7   2
Total short-term debt 7   2
Term Loan B due in 2028      
Long-term debt:      
Long-term debt, gross $ 635   635
Unsecured debt | 8.25% Notes due 2031      
Long-term debt:      
Interest rate 8.25% 8.25%  
Long-term debt, gross $ 500   500
Unsecured debt | 4.875% Notes due in 2026      
Long-term debt:      
Interest rate 4.875% 4.875%  
Long-term debt, gross $ 795   795
Unsecured debt | 3.50% Notes due in 2024      
Long-term debt:      
Interest rate 3.50% 3.50%  
Long-term debt, gross $ 136 € 123 130
Unsecured debt | Other bank borrowings and finance lease obligations      
Long-term debt:      
Long-term debt, gross $ 3   4
Term Loan | 7.00% Secured Notes due 2028      
Long-term debt:      
Interest rate 7.00% 7.00%  
Long-term debt, gross $ 500   $ 500
v3.24.0.1
Debt and Financing Arrangements - Narrative (Details)
 1 Months Ended 3 Months Ended
Dec. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
Jan. 31, 2024
Dec. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2023
EUR (€)
Dec. 31, 2022
USD ($)
Dec. 31, 2023
EUR (€)
Sep. 30, 2023
EUR (€)
Debt Instrument [Line Items]                  
Total interest paid       $ 60,000,000     $ 20,000,000    
Proceeds from sale and collection of receivables $ 85,000,000 $ 170,000,000              
Senior notes                  
Debt Instrument [Line Items]                  
Proceeds from issuance of senior long-term debt       988,000,000          
7.000 % Senior Secured Notes Due 2028 | Senior notes                  
Debt Instrument [Line Items]                  
Face amount of debt (up to)   $ 500,000,000     $ 500,000,000        
Proceeds from issuance of senior long-term debt         $ 494,000,000        
Interest rate   7.00%     7.00%       7.00%
8.250% Senior unsecured Notes Due 2031 | Unsecured debt                  
Debt Instrument [Line Items]                  
Face amount of debt (up to)   $ 500,000,000     $ 500,000,000        
Proceeds from issuance of senior long-term debt         $ 494,000,000        
Interest rate   8.25%     8.25%       8.25%
3.50% Notes due in 2024 | Unsecured debt                  
Debt Instrument [Line Items]                  
Payment of debt issuance cost       $ 16,000,000          
Face amount of debt (up to) | €               € 823,000,000  
Interest rate 3.50%     3.50%       3.50%  
Repurchased face amount   $ 743,000,000     $ 743,000,000       € 700,000,000
Debt Instrument, unamortized premium   7,000,000     7,000,000       7,000,000
Accrued and unpaid interest   3,000,000     3,000,000       € 3,000,000
Write off of deferred debt issuance cost         2,000,000 € 2,000,000      
Long-term debt, gross $ 136,000,000 130,000,000   $ 136,000,000 130,000,000     € 123,000,000  
4.875% Notes due in 2026 | Unsecured debt                  
Debt Instrument [Line Items]                  
Face amount of debt (up to) $ 795,000,000 795,000,000   $ 795,000,000 795,000,000        
Interest rate 4.875%     4.875%       4.875%  
Long-term debt, gross $ 795,000,000 795,000,000   $ 795,000,000 795,000,000        
Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity 1,250,000,000     1,250,000,000          
Payment of debt issuance cost       7,000,000          
Credit facility expansion       250,000,000          
Remaining borrowing capacity 938,000,000     $ 938,000,000          
Revolving Credit Facility | Minimum                  
Debt Instrument [Line Items]                  
Commitment fee on unused portion of commitments       0.25%          
Revolving Credit Facility | Minimum | EURIBOR                  
Debt Instrument [Line Items]                  
Basis spread       1.50%          
Revolving Credit Facility | Maximum                  
Debt Instrument [Line Items]                  
Commitment fee on unused portion of commitments       0.375%          
Revolving Credit Facility | Maximum | EURIBOR                  
Debt Instrument [Line Items]                  
Basis spread       2.00%          
Revolving Credit Facility | North American Subfacility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity 950,000,000     $ 950,000,000          
Revolving Credit Facility | European Subfacility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity 300,000,000     300,000,000          
Letter of Credit                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity 150,000,000     150,000,000          
Remaining borrowing capacity 12,000,000     $ 12,000,000          
Term Loan | Term Loan B due in 2028                  
Debt Instrument [Line Items]                  
Basis spread       3.25%          
Face amount of debt (up to) $ 750,000,000 $ 635,000,000   $ 750,000,000 $ 635,000,000        
First lien secured net leverage ratio       1.75          
Repayments of secured debt       $ 350,000,000          
Term Loan | Term Loan B due in 2028 | Subsequent Event                  
Debt Instrument [Line Items]                  
Basis spread     2.75%            
v3.24.0.1
Debt and Financing Arrangements - Schedule of Net Financing Charges (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
Interest expense, net of capitalized interest costs $ 48 $ 41
Banking fees and debt issuance cost amortization 4 4
Interest income (9) (4)
Net foreign exchange 1 0
Net financing charges $ 44 $ 41
v3.24.0.1
Derivative Instruments and Hedging Activities - Narrative (Details)
€ in Millions
 3 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Jan. 31, 2024
USD ($)
Jan. 31, 2024
CNY (¥)
Dec. 31, 2023
EUR (€)
Sep. 30, 2023
USD ($)
Derivative [Line Items]            
Percentage of foreign exchange rate exposure hedged, minimum 70.00%       70.00%  
Percentage of foreign exchange rate exposure hedged, maximum 90.00%       90.00%  
Cash collateral received $ 0         $ 0
Cash collateral pledged 0         0
Pre tax gain to be reclassified within next 12 months 29,000,000          
Cash Flow Hedging            
Derivative [Line Items]            
Ineffectiveness recognized from cash flow hedges 0 $ 0        
Foreign currency exchange derivatives | Net Investment Hedging            
Derivative [Line Items]            
Effective portion of pretax gains (loss) related to net investment hedges 0 (69,000,000)        
Gains (losses) reclassified into income for net investment hedges 0 $ 0        
China | Cross-currency interest rate swaps | Net Investment Hedging | Subsequent Event            
Derivative [Line Items]            
Notional amount of derivative asset     $ 96,000,000 ¥ 685,000,000    
3.50% Notes due in 2024 | Unsecured debt            
Derivative [Line Items]            
Long-term debt, gross $ 136,000,000       € 123 $ 130,000,000
Interest rate 3.50%       3.50%  
3.50% Notes due in 2024 | Unsecured debt | Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815            
Derivative [Line Items]            
Interest rate 3.50%       3.50%  
v3.24.0.1
Derivative Instruments and Hedging Activities - Schedule of Fair Values of Derivative Instruments and Other Amounts (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Derivatives, Fair Value [Line Items]    
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Other current assets Other current assets
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other noncurrent assets Other noncurrent assets
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Foreign currency exchange derivatives    
Derivatives, Fair Value [Line Items]    
Total assets   $ 34
Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815    
Derivatives, Fair Value [Line Items]    
Total assets $ 39 30
Derivative liability, noncurrent 0 130
Total liabilities 5 144
Derivatives and Hedging Activities Designated as Hedging Instruments under ASC 815 | Foreign currency exchange derivatives    
Derivatives, Fair Value [Line Items]    
Derivative asset, current 38 30
Derivative asset, noncurrent 1 0
Derivative liability, current 4 8
Derivative liability, noncurrent 1 6
Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815    
Derivatives, Fair Value [Line Items]    
Total assets 5 4
Derivative liability, noncurrent 0 0
Total liabilities 0 0
Derivatives and Hedging Activities Not Designated as Hedging Instruments under ASC 815 | Foreign currency exchange derivatives    
Derivatives, Fair Value [Line Items]    
Derivative asset, current 5 4
Derivative asset, noncurrent 0 0
Derivative liability, current 0 0
Derivative liability, noncurrent $ 0 $ 0
v3.24.0.1
Derivative Instruments and Hedging Activities - Schedule of Gross and Net Amounts of Derivative Instruments and Other Amounts (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross amount recognized, assets $ 44 $ 34
Gross amount eligible for offsetting, assets (5) (12)
Net amount, assets 39 22
Gross amount recognized, liabilities 5 144
Gross amount eligible for offsetting, liabilities (5) (12)
Net amount, liabilities $ 0 $ 132
v3.24.0.1
Derivative Instruments and Hedging Activities - Schedule of Effective Portion of Pretax Gains (Losses) (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]    
Total $ 10 $ 12
Foreign currency exchange derivatives | Cost of sales    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-tax gain (loss) on foreign currency exchange derivatives not designated as hedging instrument 1 3
Foreign currency exchange derivatives | Net financing charges    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-tax gain (loss) on foreign currency exchange derivatives not designated as hedging instrument 9 9
Foreign currency exchange derivatives | Cash Flow Hedging    
Derivative Instruments, Gain (Loss) [Line Items]    
Foreign currency exchange derivatives 26 32
Foreign currency exchange derivatives | Cash Flow Hedging | Cost of sales    
Derivative Instruments, Gain (Loss) [Line Items]    
Effective portion of pretax gain (loss) reclassified from AOCI into income 15 7
Foreign currency exchange derivatives | Cash Flow Hedging | Net financing charges    
Derivative Instruments, Gain (Loss) [Line Items]    
Effective portion of pretax gain (loss) reclassified from AOCI into income $ 6 $ 0
v3.24.0.1
Fair Value Measurements - Schedule of the Fair Value Hierarchy for Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration]   Other current assets
Total assets $ 44 $ 34
Total liabilities 5 14
Foreign currency exchange derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset   34
Foreign currency exchange derivatives | Other current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 43  
Foreign currency exchange derivatives | Other noncurrent assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 1  
Foreign currency exchange derivatives | Other current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 4 8
Foreign currency exchange derivatives | Other noncurrent liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 1 6
Quoted Prices in Active Markets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Total liabilities 0 0
Quoted Prices in Active Markets (Level 1) | Foreign currency exchange derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset   0
Quoted Prices in Active Markets (Level 1) | Foreign currency exchange derivatives | Other current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0  
Quoted Prices in Active Markets (Level 1) | Foreign currency exchange derivatives | Other noncurrent assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0  
Quoted Prices in Active Markets (Level 1) | Foreign currency exchange derivatives | Other current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Quoted Prices in Active Markets (Level 1) | Foreign currency exchange derivatives | Other noncurrent liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 44 34
Total liabilities 5 14
Significant Other Observable Inputs (Level 2) | Foreign currency exchange derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset   34
Significant Other Observable Inputs (Level 2) | Foreign currency exchange derivatives | Other current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 43  
Significant Other Observable Inputs (Level 2) | Foreign currency exchange derivatives | Other noncurrent assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 1  
Significant Other Observable Inputs (Level 2) | Foreign currency exchange derivatives | Other current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 4 8
Significant Other Observable Inputs (Level 2) | Foreign currency exchange derivatives | Other noncurrent liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 1 6
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Total liabilities 0 0
Significant Unobservable Inputs (Level 3) | Foreign currency exchange derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset   0
Significant Unobservable Inputs (Level 3) | Foreign currency exchange derivatives | Other current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0  
Significant Unobservable Inputs (Level 3) | Foreign currency exchange derivatives | Other noncurrent assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset 0  
Significant Unobservable Inputs (Level 3) | Foreign currency exchange derivatives | Other current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability 0 0
Significant Unobservable Inputs (Level 3) | Foreign currency exchange derivatives | Other noncurrent liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative liability $ 0 $ 0
v3.24.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Billions
Dec. 31, 2023
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
v3.24.0.1
Equity and Noncontrolling Interests - Schedule of Stockholders Equity (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance $ 2,546 $ 2,375
Net income 32 26
Foreign currency translation adjustments 134 95
Realized and unrealized gains on derivatives 9 25
Dividends attributable to noncontrolling interests (4) (4)
Repurchases of common stock (100)  
Share based compensation and other (1) (8)
Stockholders' equity, ending balance 2,616 2,509
Shareholders' Equity Attributable to Adient    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance 2,228 2,073
Net income 20 12
Foreign currency translation adjustments 129 90
Realized and unrealized gains on derivatives 9 25
Repurchases of common stock (100)  
Share based compensation and other (1) (8)
Stockholders' equity, ending balance 2,285 2,192
Ordinary Shares    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance 0 0
Stockholders' equity, ending balance 0 0
Additional Paid-in Capital    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance 3,973 4,026
Repurchases of common stock (100)  
Share based compensation and other (1) (8)
Stockholders' equity, ending balance 3,872 4,018
Retained Earnings (Accumulated Deficit)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance (903) (1,108)
Net income 20 12
Stockholders' equity, ending balance (883) (1,096)
Accumulated Other Comprehensive Income (Loss)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance (842) (845)
Foreign currency translation adjustments 129 90
Realized and unrealized gains on derivatives 9 25
Stockholders' equity, ending balance (704) (730)
Shareholders' Equity Attributable to Noncontrolling Interests    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Stockholders' equity, beginning balance 318 302
Net income 12 14
Foreign currency translation adjustments 5 5
Dividends attributable to noncontrolling interests (4) (4)
Share based compensation and other 0 0
Stockholders' equity, ending balance $ 331 $ 317
v3.24.0.1
Equity and Noncontrolling Interests - Schedule of AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity, beginning balance $ 2,546 $ 2,375
Aggregate adjustment for the period, net of tax 151 131
Stockholders' equity, ending balance 2,616 2,509
Accumulated Other Comprehensive Income (Loss)    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity, beginning balance (842) (845)
Stockholders' equity, ending balance (704) (730)
Foreign currency translation adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity, beginning balance (854) (836)
Aggregate adjustment for the period, net of tax 129 90
Stockholders' equity, ending balance (725) (746)
Foreign currency translation adjustments | Net Investment Hedging    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity, ending balance 74 75
Realized and unrealized gains (losses) on derivatives    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity, beginning balance 13 (8)
Current period changes in fair value, net of tax 21 31
Reclassification to income, net of tax (12) (6)
Stockholders' equity, ending balance 22 17
Pension and postretirement plans    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity, beginning balance (1) (1)
Stockholders' equity, ending balance $ (1) $ (1)
v3.24.0.1
Equity and Noncontrolling Interests - Schedule of Changes in Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]    
Beginning balance $ 318  
Dividends (4) $ (4)
Ending balance 331  
Foreign currency translation adjustments 134 95
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 45
Net income 13 7
Dividends (21) (18)
Foreign currency translation adjustments 8 11
Ending balance $ 57 $ 45
v3.24.0.1
Equity and Noncontrolling Interests - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
Nov. 30, 2022
Equity [Abstract]      
Aggregate amount     $ 600,000,000
Stock repurchased and retired during period (in shares) 3,003,358 1,756,777  
Average repurchase price per share (in dollars per share) $ 33.32 $ 37.00  
Stock repurchased and retired during period, value $ 100,000,000 $ 65,000,000  
Stock repurchase program, remaining authorized repurchase amount $ 435,000,000    
v3.24.0.1
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]    
Service cost $ 1 $ 1
Interest cost 5 4
Expected return on plan assets (3) (3)
Net actuarial and settlement/curtailment (gain) loss 0 8
Net periodic benefit cost $ 3 $ 10
v3.24.0.1
Retirement Plans - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial and settlement/curtailment (gain) loss $ 0 $ (8)
Americas    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial and settlement/curtailment (gain) loss   $ 8
v3.24.0.1
Restructuring and Impairment Costs - Narrative (Details)
employee in Thousands, $ in Millions
 3 Months Ended
Dec. 31, 2023
USD ($)
employee
plant
Dec. 31, 2022
USD ($)
Restructuring Cost and Reserve [Line Items]    
Number of positions eliminated to date | employee 13  
Number of positions eliminated | employee 11  
Number of plants expected to close | plant 26  
Number of plants closed | plant 22  
2023 Restructuring Plan    
Restructuring Cost and Reserve [Line Items]    
Restructuring charges   $ 7
2024 Restructuring Plan    
Restructuring Cost and Reserve [Line Items]    
Expected restructuring costs $ 11  
Restructuring charges $ 11  
v3.24.0.1
Restructuring and Impairment Costs - Schedule of Restructuring Reserve (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
2024 Restructuring Plan    
Restructuring Reserve [Roll Forward]    
Restructuring reserve beginning balance $ 51  
Plan charges 11  
Utilized - cash (9)  
Noncash and other adjustments 1  
Restructuring reserve ending balance 54  
2023 Restructuring Plan    
Restructuring Reserve [Roll Forward]    
Restructuring reserve beginning balance   $ 60
Plan charges   7
Utilized - cash   (27)
Noncash and other adjustments   5
Restructuring reserve ending balance   45
Employee Severance and Termination Benefits | 2024 Restructuring Plan    
Restructuring Reserve [Roll Forward]    
Restructuring reserve beginning balance 56  
Plan charges 11  
Utilized - cash (9)  
Noncash and other adjustments 0  
Restructuring reserve ending balance 58  
Employee Severance and Termination Benefits | 2023 Restructuring Plan    
Restructuring Reserve [Roll Forward]    
Restructuring reserve beginning balance   69
Plan charges   7
Utilized - cash   (27)
Noncash and other adjustments   0
Restructuring reserve ending balance   49
Currency Translation | 2024 Restructuring Plan    
Restructuring Reserve [Roll Forward]    
Restructuring reserve beginning balance (5)  
Plan charges 0  
Utilized - cash 0  
Noncash and other adjustments 1  
Restructuring reserve ending balance $ (4)  
Currency Translation | 2023 Restructuring Plan    
Restructuring Reserve [Roll Forward]    
Restructuring reserve beginning balance   (9)
Plan charges   0
Utilized - cash   0
Noncash and other adjustments   5
Restructuring reserve ending balance   $ (4)
v3.24.0.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Income tax provision (benefit) $ 20 $ 31
Effective tax rate 31.00% 48.00%
Unrecognized tax benefits $ 537 $ 522
Unrecognized tax benefits that would impact effective tax rate 168 122
Net accrued interest 31 25
Interest and penalties accrued $ 2 $ 2
v3.24.0.1
Segment Information - Schedule of Financial Information for Reportable Segments (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2023
USD ($)
segment
Dec. 31, 2022
USD ($)
Oct. 31, 2023
Segment Reporting [Abstract]      
Number of reportable segments | segment 3    
Segment Reporting Information [Line Items]      
Net sales $ 3,660.0 $ 3,699.0  
Corporate-related costs (7.0) 1.0  
Restructuring and impairment costs (11.0) (7.0)  
Purchase accounting amortization (11.0) (12.0)  
Restructuring related charges 9.0 (3.0)  
Depreciation (72.0) (69.0)  
Stock based compensation (13.0) (8.0)  
Earnings before interest and income taxes 111.0 114.0  
Net financing charges (44.0) (41.0)  
Other pension income (expense) (2.0) (9.0)  
Income before income taxes 65.0 64.0  
One-time divestiture related tax impact at an affiliate 2.0    
Gain on contract settlement 3.0 1.0  
Integration-related costs   1.0  
Net actuarial and settlement/curtailment (gain) loss 0.0 (8.0)  
Assets Held For Sale | Adient (Langfang) Seating Co., Ltd      
Segment Reporting Information [Line Items]      
Subsidiary, ownership percentage disposed     100.00%
Restatement Adjustment      
Segment Reporting Information [Line Items]      
Stock based compensation (5.0)    
Brazil      
Segment Reporting Information [Line Items]      
One-time gain   1.0  
Americas      
Segment Reporting Information [Line Items]      
Net sales 1,647.0 1,724.0  
Gain (loss) on disposition of property plant equipment 10.0    
Americas      
Segment Reporting Information [Line Items]      
Net actuarial and settlement/curtailment (gain) loss   8.0  
Operating Segments | Americas      
Segment Reporting Information [Line Items]      
Net sales 1,647.0 1,724.0  
Adjusted EBITDA 80.0 69.0  
Operating Segments | EMEA      
Segment Reporting Information [Line Items]      
Net sales 1,268.0 1,182.0  
Adjusted EBITDA 45.0 28.0  
Operating Segments | Asia      
Segment Reporting Information [Line Items]      
Net sales 770.0 821.0  
Adjusted EBITDA 114.0 138.0  
Eliminations      
Segment Reporting Information [Line Items]      
Net sales (25.0) (28.0)  
Eliminations | Americas      
Segment Reporting Information [Line Items]      
Net sales (493.0) (531.0)  
Corporate-related costs      
Segment Reporting Information [Line Items]      
Corporate-related costs $ (23.0) $ (23.0)  
v3.24.0.1
Segment Information - Schedule of Disaggregation of Revenue by Geographical Market (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]    
Net sales $ 3,660 $ 3,699
Americas    
Disaggregation of Revenue [Line Items]    
Net sales 1,647 1,724
United States    
Disaggregation of Revenue [Line Items]    
Net sales 1,422 1,553
Mexico    
Disaggregation of Revenue [Line Items]    
Net sales 632 607
Other Americas    
Disaggregation of Revenue [Line Items]    
Net sales 86 95
EMEA    
Disaggregation of Revenue [Line Items]    
Net sales 1,268 1,182
Spain    
Disaggregation of Revenue [Line Items]    
Net sales 180 154
Germany    
Disaggregation of Revenue [Line Items]    
Net sales 224 248
Poland    
Disaggregation of Revenue [Line Items]    
Net sales 249 209
Czech Republic    
Disaggregation of Revenue [Line Items]    
Net sales 195 228
Other EMEA    
Disaggregation of Revenue [Line Items]    
Net sales 769 667
Asia    
Disaggregation of Revenue [Line Items]    
Net sales 770 821
China    
Disaggregation of Revenue [Line Items]    
Net sales 374 398
Korea    
Disaggregation of Revenue [Line Items]    
Net sales 122 138
Thailand    
Disaggregation of Revenue [Line Items]    
Net sales 122 141
Japan    
Disaggregation of Revenue [Line Items]    
Net sales 93 87
Other Asia    
Disaggregation of Revenue [Line Items]    
Net sales 71 65
Inter-segment elimination    
Disaggregation of Revenue [Line Items]    
Net sales (25) (28)
Inter-segment elimination | Americas    
Disaggregation of Revenue [Line Items]    
Net sales (493) (531)
Inter-segment elimination | EMEA    
Disaggregation of Revenue [Line Items]    
Net sales (349) (324)
Inter-segment elimination | Asia    
Disaggregation of Revenue [Line Items]    
Net sales $ (12) $ (8)
v3.24.0.1
Nonconsolidated Partially-Owned Affiliates - Schedule of Operating Information of Nonconsolidated Partially-Owned Affiliates (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
Schedule of Equity Method Investments [Line Items]      
Investments in partially-owned affiliates $ 322   $ 303
Gross profit 246 $ 231  
Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Schedule of Equity Method Investments [Line Items]      
Net sales 1,037 976  
Gross profit 93 101  
Net income 49 60  
Net income attributable to the entity $ 48 $ 59  
v3.24.0.1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]    
Reserves for environmental liabilities $ 4 $ 4
v3.24.0.1
Related Party Transactions (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
Related Party Transaction [Line Items]      
Net sales to related parties $ 3,660 $ 3,699  
Purchases from related parties 3,414 3,468  
Accounts receivable due from related parties 1,661   $ 1,874
Accounts payable due to related parties 2,422   2,526
Related Party      
Related Party Transaction [Line Items]      
Net sales to related parties 66 58  
Purchases from related parties 103 $ 114  
Accounts receivable due from related parties 28   26
Accounts payable due to related parties $ 53   $ 67
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Da Gen 2024 a Gen 2025 Clicca qui per i Grafici di Adient