XML 30 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Note 12, Segment Information
 9 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 12.
SEGMENT INFORMATION

During the first quarter of 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"). During the second quarter of fiscal 2017, Adient decided to reclassify certain Becoming Adient costs into other reconciling categories in calculating Adjusted EBIT. This change did not impact total Adjusted EBIT for any prior periods. 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:
 
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
(in millions)
 
2017
 
2016
 
2017
 
2016
Net Sales
 
 
 
 
 
 
 
 
Seating
 
$
4,017

 
$
4,362

 
$
12,267

 
$
12,893

Total net sales
 
$
4,017

 
$
4,362

 
$
12,267

 
$
12,893


 
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
(in millions)
 
2017
 
2016
 
2017
 
2016
Adjusted EBIT
 
 
 
 
 
 
 
 
Seating
 
$
317

 
$
306

 
$
889

 
$
831

Interiors
 
19

 
26

 
71

 
67

Becoming Adient costs (1) (6)
 
(20
)
 
—

 
(58
)
 
—

Separation costs (2)
 
—

 
(122
)
 
(10
)
 
(254
)
Restructuring and impairment costs
 
—

 
(75
)
 
(6
)
 
(244
)
Purchase accounting amortization (3)
 
(10
)
 
(9
)
 
(29
)
 
(28
)
Restructuring related charges (4) (6)
 
(10
)
 
(3
)
 
(28
)
 
(10
)
Other items (5) (6)
 
—

 
22

 
(13
)
 
78

Earnings before interest and income taxes
 
296

 
145

 
816

 
440

Net financing charges
 
(31
)
 
(2
)
 
(99
)
 
(8
)
Income before income taxes
 
$
265

 
$
143

 
$
717

 
$
432


(1)
 
Reflects incremental expenses associated with becoming an independent company, including non-cash costs of $4 million and $23 million in the three and nine months ended June 30, 2017.
(2)
 
Reflects expenses associated with and incurred prior to the separation from the former Parent.
(3)
 
Reflects amortization of intangible assets including those related to the YFAI joint venture 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.
(5)
 
Reflects primarily the $12 million of initial funding of the Adient foundation in the nine months ended June 30, 2017. Reflects a $14 million favorable legal settlement and a $8 million multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent during the three months ended June 30, 2016. Reflects a $23 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 nine months ended June 30, 2016.
(6)
 
For the nine months ended June 30, 2017, Becoming Adient costs decreased by $16 million and restructuring related items and other items increased by $3 million and $13 million, respectively, as a result of the second quarter fiscal 2017 reclassifications.