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Note 17. Segment Reporting (Notes) | 12 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] |
17. Segment Information
During fiscal 2017, Adient began evaluating the performance of its reportable segments using an adjusted EBIT metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, qualified restructuring and impairment costs, restructuring related-costs, incremental "Becoming Adient" costs, separation costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization and other non-recurring items ("Adjusted EBIT"). Prior period information has been recast to the new performance metric and for the reclassifications of certain Becoming Adient costs. 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. Adient has two reportable segments for financial reporting purposes: Seating and Interiors.
• | The Seating segment produces automotive seat metal structures and mechanisms, foam, trim, fabric and complete seat systems.
• | The Interiors segment, derived from its global automotive interiors joint ventures, produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products.
Financial information relating to Adient's reportable segments is as follows:
|  | Year Ended September 30,
(in millions) |  | 2017 |  | 2016 (1) |  | 2015 (1)
Adjusted EBIT |  |  |  |  |  |
Seating |  | $ | 1,151 |  |  | $ | 1,091 |  |  | $ | 909 |
Interiors |  | 93 |  |  | 91 |  |  | 118 |
Becoming Adient costs (2) |  | (95 | ) |  | — |  |  | — |
Separation costs (3) |  | (10 | ) |  | (369 | ) |  | — |
Restructuring and impairment costs |  | (46 | ) |  | (332 | ) |  | (182 | )
Purchase accounting amortization (4) |  | (43 | ) |  | (37 | ) |  | (23 | )
Restructuring related charges (5) |  | (37 | ) |  | (14 | ) |  | (16 | )
Pension mark-to-market (6) |  | 45 |  |  | (110 | ) |  | (6 | )
Gain on previously-held interest (7) |  | 151 |  |  | — |  |  | — |
Gain on business divestiture |  | — |  |  | — |  |  | 137 |
Other items (8) |  | (16 | ) |  | 79 |  |  | 19 |
Earnings before interest and income taxes |  | 1,193 |  |  | 399 |  |  | 956 |
Net financing charges |  | (132 | ) |  | (22 | ) |  | (12 | )
Income before income taxes |  | $ | 1,061 |  |  | $ | 377 |  |  | $ | 944 |
(1) |  | Amounts presented have been revised from what was previously reported to correctly report net sales, equity income and total assets as discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies".
(2) |  | Reflects incremental expenses associated with becoming an independent company, including non-cash costs of $30 million for the year ended September 30, 2017
(3) |  | Reflects expenses associated with and incurred prior to the separation from the former Parent.
(4) |  | Reflects amortization of intangible assets including those related to the YFAI joint venture recorded within equity income.
(5) |  | Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420.
(6) |  | Reflects net mark-to-market adjustments on pension and postretirement plans.
(7) |  | An amendment to the rights agreement of a seating affiliate in China was finalized in the fourth quarter of fiscal 2017 giving Adient control of the previously non-consolidated affiliate. Adient began consolidating the entity in July 2017 and was required to apply purchase accounting, including recognizing a gain on our previously held interest, which has been recorded in equity income.
(8) |  | Reflects primarily the $12 million of initial funding of the Adient foundation and $3 million of transaction costs associated with the acquisition of Futuris for the year ended September 30, 2017. Reflects a $24 million multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent, $22 million of favorable settlements from prior year business divestitures, a $20 million favorable legal settlement and a $13 million favorable commercial settlement during the year ended September 30, 2016. Reflects a $19 million multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent for the year ended September 30, 2015.
|  | Year Ended September 30, 2017
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Seating |  | Interiors |  |
Net Sales |  | $ | 16,213 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,213 |
Equity Income |  | 301 |  |  | 93 |  |  | 128 |  |  | 522 |
Total Assets |  | 12,061 |  |  | 1,109 |  |  | — |  |  | 13,170 |
Depreciation |  | 332 |  |  | — |  |  | 5 |  |  | 337 |
Amortization |  | — |  |  | — |  |  | 21 |  |  | 21 |
Capital Expenditures |  | 577 |  |  | — |  |  | — |  |  | 577 |
(1) |  | Included in equity income is a $151 million gain on a previously held interest in a China Seating affiliate that Adient began consolidating in the fourth quarter of fiscal 2017 as a result of an amendment to the related rights agreement, $22 million of purchase accounting amortization related to the YFAI joint venture and $1 million of restructuring related costs related to the YFAI joint venture. Included in depreciation expense is $5 million of accelerated depreciation which is part of the incremental expenses associated with becoming an independent company (Becoming Adient). Included in amortization expense is $21 million of purchase accounting amortization related to consolidated Seating entities.
|  | Year Ended September 30, 2016
|  | Reportable Segments |  | Reconciling Items(2) |  | Consolidated(1)
(in millions) |  | Seating (1) |  | Interiors |  |
Net Sales |  | $ | 16,790 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,790 |
Equity Income |  | 273 |  |  | 91 |  |  | (20 | ) |  | 344 |
Total Assets |  | 11,917 |  |  | 1,039 |  |  | — |  |  | 12,956 |
Depreciation |  | 327 |  |  | — |  |  | — |  |  | 327 |
Amortization |  | — |  |  | — |  |  | 17 |  |  | 17 |
Capital Expenditures |  | 437 |  |  | — |  |  | — |  |  | 437 |
(1) |  | Amounts presented have been revised from what was previously reported to correctly report net sales, equity income and total assets as discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies".
(2) |  | Included in equity income is $20 million of purchase accounting amortization related to the YFAI joint venture. Included in amortization expense is $17 million of purchase accounting amortization related to consolidated Seating entities.
|  | Year Ended September 30, 2015
|  | Reportable Segments |  | Reconciling Items(2) |  | Consolidated(1)
(in millions) |  | Seating(1) |  | Interiors |  |
Net Sales |  | $ | 17,069 |  |  | $ | 2,954 |  |  | $ | — |  |  | $ | 20,023 |
Equity Income |  | 248 |  |  | 37 |  |  | (5 | ) |  | 280 |
Total Assets |  | 9,353 |  |  | 1,006 |  |  | 55 |  |  | 10,414 |
Depreciation |  | 329 |  |  | — |  |  | — |  |  | 329 |
Amortization |  | — |  |  | — |  |  | 18 |  |  | 18 |
Capital Expenditures |  | 478 |  |  | — |  |  | — |  |  | 478 |
(1) |  | Amounts presented have been revised from what was previously reported to correctly report net sales, equity income and total assets as discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies".
(2) |  | Included in equity income is $5 million of purchase accounting amortization related to the YFAI joint venture. Included in total assets is $55 million of assets classified as held for sale. Included in amortization expense is $18 million of purchase accounting amortization related to consolidated Seating entities.
Geographic Information Financial information relating to Adient's operations by geographic area is as follows:
Net Sales |  |  |  |  |  |
|  | Year Ended September 30,
(in millions) |  | 2017 |  | 2016 (1) |  | 2015 (1)
United States |  | $ | 5,798 |  |  | $ | 6,581 |  |  | $ | 7,850 |
Germany |  | 1,584 |  |  | 1,901 |  |  | 2,464 |
Mexico |  | 1,079 |  |  | 998 |  |  | 1,299 |
Other European countries |  | 5,012 |  |  | 4,752 |  |  | 5,050 |
Other foreign |  | 2,740 |  |  | 2,558 |  |  | 3,360 |
Total |  | $ | 16,213 |  |  | $ | 16,790 |  |  | $ | 20,023 |
(1) |  | Amounts presented have been revised from what was previously reported in "other foreign" to correctly report net sales as discussed in Note 1, "Basis of Presentation and Summary of Significant Accounting Policies".
Long-Lived Assets |  |  |  |  |  |
|  | Year Ended September 30,
(in millions) |  | 2017 |  | 2016 |  | 2015
United States |  | $ | 685 |  |  | $ | 580 |  |  | $ | 583 |
Germany |  | 380 |  |  | 360 |  |  | 375 |
Mexico |  | 277 |  |  | 250 |  |  | 225 |
Other European countries |  | 873 |  |  | 732 |  |  | 722 |
Other foreign |  | 287 |  |  | 273 |  |  | 234 |
Total |  | $ | 2,502 |  |  | $ | 2,195 |  |  | $ | 2,139 |
Net sales attributed to geographic locations are based on the location of the assets producing the sales. Long-lived assets by geographic location consist of net property, plant and equipment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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