XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.19.1

Segment Information | 6 Months Ended
--- | ---
Mar. 31, 2019
Segment Reporting [Abstract] |
Segment Information |
14. Segment Information
During the second quarter of fiscal 2019, Adient realigned certain of its organizational structure to manage its business primarily on a geographic basis, resulting in a change to reportable segments. Prior period segment information has been recast to align with this change in organizational structure and the updated definition of corporate-related costs. Pursuant to this change, Adient now operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, 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, 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, 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. Adient has three reportable segments for financial reporting purposes: Financial information relating to Adient's reportable segments is as follows:
|  | Three Months Ended March 31, |  | Six Months Ended March 31,
(in millions) |  | 2019 |  | 2018 (1) |  | 2019 |  | 2018 (1)
Net Sales |  |  |  |  |  |  |  |
Americas |  | $ | 1,915 |  |  | $ | 1,941 |  |  | $ | 3,850 |  |  | $ | 3,727 |
EMEA |  | 1,778 |  |  | 2,056 |  |  | 3,418 |  |  | 3,909 |
Asia |  | 599 |  |  | 690 |  |  | 1,249 |  |  | 1,338 |
Eliminations |  | (64 | ) |  | (91 | ) |  | (131 | ) |  | (174 | )
Total net sales |  | $ | 4,228 |  |  | $ | 4,596 |  |  | $ | 8,386 |  |  | $ | 8,800 |
|  | Three Months Ended March 31, |  | Six Months Ended March 31,
(in millions) |  | 2019 |  | 2018 (1) |  | 2019 |  | 2018 (1)
Adjusted EBITDA |  |  |  |  |  |  |  |
Americas |  | $ | 34 |  |  | $ | 98 |  |  | $ | 77 |  |  | $ | 133 |
EMEA |  | 59 |  |  | 130 |  |  | 61 |  |  | 212 |
Asia |  | 123 |  |  | 157 |  |  | 277 |  |  | 333 |
Corporate-related costs (2) |  | (25 | ) |  | (23 | ) |  | (48 | ) |  | (50 | )
Becoming Adient costs (3) |  | — |  |  | (19 | ) |  | — |  |  | (38 | )
Restructuring and impairment costs (4) |  | (113 | ) |  | (315 | ) |  | (144 | ) |  | (315 | )
Purchase accounting amortization (5) |  | (10 | ) |  | (18 | ) |  | (20 | ) |  | (35 | )
Restructuring related charges (6) |  | (14 | ) |  | (12 | ) |  | (23 | ) |  | (23 | )
Stock based compensation (7) |  | (2 | ) |  | (12 | ) |  | (8 | ) |  | (22 | )
Depreciation (8) |  | (72 | ) |  | (99 | ) |  | (137 | ) |  | (193 | )
Other items (9) |  | (2 | ) |  | (28 | ) |  | (3 | ) |  | (42 | )
Earnings (loss) before interest and income taxes |  | (22 | ) |  | (141 | ) |  | 32 |  |  | (40 | )
Net financing charges |  | (40 | ) |  | (37 | ) |  | (75 | ) |  | (70 | )
Other pension income |  | — |  |  | 7 |  |  | 2 |  |  | 8 |
Income (loss) before income taxes |  | $ | (62 | ) |  | $ | (171 | ) |  | $ | (41 | ) |  | $ | (102 | )
Notes (1) The presentation of certain amounts has been revised from what was previously reported to retrospectively adopt Accounting Standard Update ("ASU") 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost" as of October 1, 2018. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies," for more information. (2) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and finance. (3) Reflects incremental expenses associated with becoming an independent company. Includes non-cash costs of $5 million and $11 million in the three and six months ended March 31, 2018, respectively. (4) 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. (5) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income. As a result of the fiscal year 2018 YFAI impairment, the intangible assets related to YFAI were deemed to be fully impaired and thus no longer amortized. (6) Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. (7) For the six months ended March 31, 2018, stock based compensation excludes $8 million, which is included in Becoming Adient costs discussed above. (8) For the six months ended March 31, 2018, depreciation excludes $4 million, which is included in restructuring related charges discussed above. (9) The three and six months ended March 31, 2019 reflects $2 million and $3 million of Futuris integration costs, respectively. The three months ended March 31, 2018 includes $7 million of Futuris integration costs, $8 million of prior period adjustments, $7 million of non-recurring consulting fees related to the former SS&M segment. The six months ended March 31, 2018 also includes $8 million for the U.S tax reform impact at YFAI and $6 million of integration-related costs associated with Futuris. In addition, for both the three and six months ended March 31, 2018, $6 million of other non-recurring income that was reclassified to other pension income upon adoption of ASU 2017-07. Additional Segment Information
|  | Three Months Ended March 31, 2019
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Equity Income |  | $ | — |  |  | $ | 3 |  |  | $ | 59 |  |  | $ | — |  |  | $ | 62 |
Depreciation |  | 27 |  |  | 34 |  |  | 11 |  |  | — |  |  | 72 |
Capital Expenditures |  | 52 |  |  | 46 |  |  | 10 |  |  | — |  |  | 108 |
Total Assets |  | 3,309 |  |  | 2,806 |  |  | 3,653 |  |  | 806 |  |  | 10,574 |
|  | Six Months Ended March 31, 2019
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Equity Income |  | $ | 1 |  |  | $ | 5 |  |  | $ | 139 |  |  | $ | — |  |  | $ | 145 |
Depreciation |  | 51 |  |  | 63 |  |  | 23 |  |  | — |  |  | 137 |
Capital Expenditures |  | 100 |  |  | 130 |  |  | 22 |  |  | — |  |  | 252 |
Total Assets |  | 3,309 |  |  | 2,806 |  |  | 3,653 |  |  | 806 |  |  | 10,574 |
|  | Three Months Ended March 31, 2018
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Equity Income |  | $ | 2 |  |  | $ | 3 |  |  | $ | 80 |  |  | $ | — |  |  | $ | 85 |
Depreciation |  | 36 |  |  | 51 |  |  | 11 |  |  | 3 |  |  | 101 |
Capital Expenditures |  | 42 |  |  | 67 |  |  | 14 |  |  | — |  |  | 123 |
|  | Six Months Ended March 31, 2018
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Equity Income |  | $ | 3 |  |  | $ | 6 |  |  | $ | 172 |  |  | $ | — |  |  | $ | 181 |
Depreciation |  | 70 |  |  | 99 |  |  | 22 |  |  | 6 |  |  | 197 |
Capital Expenditures |  | 104 |  |  | 147 |  |  | 15 |  |  | — |  |  | 266 |
(1) Reconciling items include corporate-related assets and depreciation amounts to reconcile to consolidated totals.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration