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Note 17. Segment Reporting (Tables)
 12 Months Ended
Sep. 30, 2017
Segment Reporting Information [Line Items]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
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.