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Note 10. Significant Restructuring and Impairment Costs | 3 Months Ended
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Dec. 31, 2017
Restructuring Cost and Reserve [Line Items] |
Restructuring and Related Activities Disclosure [Text Block] |
10. Restructuring and Impairment Costs
To better align its resources with its growth 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. In fiscal 2018, Adient committed to a restructuring plan ("2018 Plan") within the Seating segment for $13 million that was offset by underspend in the fiscal 2016 Plan. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions. The restructuring actions are expected to be substantially completed by fiscal 2019. The following table summarizes the changes in Adient's 2018 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  | Long-Lived Asset Impairments |  | Other |  | Currency Translation |  | Total
Original Reserve |  | $ | 13 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 13 |
Balance at December 31, 2017 |  | $ | 13 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 13 |
In fiscal 2017, Adient committed to a restructuring plan ("2017 Plan") within the Seating segment and recorded $46 million of restructuring and impairment costs in the consolidated statements of income. This is the total amount expected to be incurred for this restructuring plan. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions and plant closures. The restructuring actions are expected to be substantially complete in fiscal 2018. Adient maintained $11 million of Futuris restructuring reserves as of September 30, 2017 all of which was paid during the three months ended December 31, 2017. The following table summarizes the changes in Adient's 2017 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  | Long-Lived Asset Impairments |  | Other |  | Currency Translation |  | Total
Original Reserve |  | $ | 42 |  |  | $ | — |  |  | $ | 4 |  |  | $ | — |  |  | $ | 46 |
Utilized—cash |  | (4 | ) |  | — |  |  | (4 | ) |  | — |  |  | (8 | )
Balance at September 30, 2017 |  | 38 |  |  | — |  |  | — |  |  | — |  |  | 38 |
Utilized—cash |  | (4 | ) |  | — |  |  | — |  |  | — |  |  | (4 | )
Balance at December 31, 2017 |  | $ | 34 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 34 |
In fiscal 2016, Adient committed to a restructuring plan ("2016 Plan") and recorded $332 million of restructuring and impairment costs in the consolidated statements of income. This is the total amount expected to be incurred for this restructuring plan. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions, plant closures and asset impairments. Of the restructuring and impairment costs recorded, $315 million relates to the Seating segment and $17 million relates to the Interiors segment. The asset impairment charge recorded during fiscal 2016 related primarily to information technology assets within the Seating segment that will not be used going forward by Adient. The other charges recorded in fiscal 2016 of $22 million relate primarily to restructuring costs at one of Adient's joint ventures which Adient had indemnified. The restructuring actions are expected to be substantially complete in fiscal 2018. Since the announcement of the 2016 Plan in fiscal 2016, Adient has experienced lower employee severance and termination benefit cash payouts than previously calculated of approximately $13 million, due to changes in cost reduction actions. The planned workforce reductions disclosed for the 2016 Plan have been updated for Adient's revised actions. The following table summarizes the changes in Adient's 2016 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  | Long-Lived Asset Impairments |  | Other |  | Currency Translation |  | Total
Original Reserve |  | $ | 223 |  |  | $ | 87 |  |  | $ | 22 |  |  | $ | — |  |  | $ | 332 |
Utilized—cash |  | (29 | ) |  | — |  |  | (1 | ) |  | — |  |  | (30 | )
Utilized—noncash |  | — |  |  | (87 | ) |  | — |  |  | (2 | ) |  | (89 | )
Balance at September 30, 2016 |  | 194 |  |  | — |  |  | 21 |  |  | (2 | ) |  | 213 |
Utilized—cash |  | (48 | ) |  | — |  |  | (12 | ) |  | — |  |  | (60 | )
Utilized—noncash |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 7 |
Balance at September 30, 2017 |  | 146 |  |  | — |  |  | 9 |  |  | 5 |  |  | 160 |
Noncash adjustment—underspend |  | (13 | ) |  | — |  |  | — |  |  | — |  |  | (13 | )
Utilized—cash |  | (12 | ) |  | — |  |  | — |  |  | — |  |  | (12 | )
Balance at December 31, 2017 |  | $ | 121 |  |  | $ | — |  |  | $ | 9 |  |  | $ | 5 |  |  | $ | 135 |
Adient's fiscal 2018, 2017 and 2016 restructuring plans included workforce reductions of approximately 4,000. 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, 2017, approximately 2,000 of the employees have been separated from Adient pursuant to the restructuring plans. In addition, the restructuring plans included eighteen plant closures. As of December 31, 2017, ten of the eighteen 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.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
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