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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2020
Income Tax Disclosure [Abstract] |
Schedule of income before income tax, domestic and foreign | Consolidated income (loss) before income taxes and noncontrolling interests for the years ended September 30, 2020, 2019, and 2018 is as follows:
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Ireland |  | $ | (3) |  |  | $ | (1) |  |  | $ | 4 |
United States |  | (111) |  |  | (170) |  |  | (324) |
Other Foreign |  | (315) |  |  | 173 |  |  | (801) |
Income before income taxes and noncontrolling interests |  | $ | (429) |  |  | $ | 2 |  |  | $ | (1,121) |
Schedule of components of the provision (benefit) for income taxes | The components of the provision (benefit) for income taxes are as follows:
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Current |  |  |  |  |  |
Ireland |  | $ | — |  |  | $ | — |  |  | $ | 1 |
US - Federal and State |  | (1) |  |  | 4 |  |  | 7 |
Other Foreign |  | 91 |  |  | 118 |  |  | 128 |
|  | 90 |  |  | 122 |  |  | 136 |
Deferred |  |  |  |  |  |
Ireland |  | — |  |  | — |  |  | — |
US - Federal and State |  | — |  |  | 1 |  |  | 417 |
Other Foreign |  | (33) |  |  | 287 |  |  | (73) |
|  | (33) |  |  | 288 |  |  | 344 |
Income tax provision |  | $ | 57 |  |  | $ | 410 |  |  | $ | 480 |
Schedule of effective tax rate reconciliation | The reconciliation between the Irish statutory income tax rate, and Adient’s effective tax rate is as follows:
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Tax expense at Ireland statutory rate |  | $ | (54) |  |  | $ | — |  |  | $ | (140) |
State and local income taxes, net of federal benefit |  | (30) |  |  | (41) |  |  | (60) |
Foreign tax rate differential |  | (127) |  |  | (109) |  |  | (146) |
Notional interest deduction |  | (44) |  |  | (63) |  |  | (66) |
Credits and incentives |  | (7) |  |  | (9) |  |  | (13) |
Goodwill impairment |  | 9 |  |  | — |  |  | (21) |
Repatriation of foreign earnings |  | 18 |  |  | 31 |  |  | 36 |
Foreign exchange |  | (1) |  |  | 2 |  |  | 3 |
Impact of enacted tax rate changes |  | (3) |  |  | (5) |  |  | 23 |
Impact of U.S. tax reform |  | — |  |  | — |  |  | 210 |
Change in uncertain tax positions |  | 56 |  |  | 107 |  |  | 97 |
Change in valuation allowance |  | 332 |  |  | 503 |  |  | 554 |
Impairment of subsidiaries |  | (24) |  |  | (3) |  |  | — |
Tax impact of corporate equity transactions |  | (77) |  |  | — |  |  | — |
Other |  | 9 |  |  | (3) |  |  | 3 |
Income tax provision |  | $ | 57 |  |  | $ | 410 |  |  | $ | 480 |
Schedule of deferred taxes | Deferred taxes are classified in the consolidated statements of financial position as follows:
|  | September 30,
(in millions) |  | 2020 |  | 2019
Other noncurrent assets |  | $ | 178 |  |  | $ | 199 |
Other noncurrent liabilities |  | (175) |  |  | (206) |
Net deferred tax asset/(liability) |  | $ | 3 |  |  | $ | (7) |
Schedule of temporary differences and carryforwards | Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities included:
|  | September 30,
(in millions) |  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Accrued expenses and reserves |  | $ | 115 |  |  | $ | 73 |
Employee and retiree benefits |  | 53 |  |  | 43 |
Net operating loss and other credit carryforwards |  | 1,072 |  |  | 751 |
Property, plant and equipment |  | 163 |  |  | 161 |
Intangible assets |  | 257 |  |  | 308 |
Operating lease liabilities |  | 80 |  |  | — |
Foreign currency adjustments |  | 17 |  |  | 2 |
Research and development |  | 20 |  |  | 16 |
Other |  | 3 |  |  | 5 |
|  | 1,780 |  |  | 1,359 |
Valuation allowances |  | (1,656) |  |  | (1,304) |
|  | 124 |  |  | 55 |
Deferred tax liabilities: |  |  |  |
Unremitted earnings of foreign subsidiaries |  | 41 |  |  | 62 |
Operating lease right-of-use assets |  | 80 |  |  | — |
|  | 121 |  |  | 62 |
Net deferred tax asset/(liability) |  | $ | 3 |  |  | $ | (7) |
Schedule of earliest year open by major jurisdiction | The following table provides the earliest open tax year by major jurisdiction for which Adient could be subject to income tax examination by the tax authorities:
Tax Jurisdiction |  | Earliest Year Open
Brazil |  | 2014
China |  | 2011
Czech Republic |  | 2012
France |  | 2017
Germany |  | 2016
Hong Kong |  | 2014
Japan |  | 2015
Luxembourg |  | 2014
Mexico |  | 2015
Poland |  | 2010
Spain |  | 2013
United Kingdom |  | 2014
United States |  | 2017
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Beginning balance |  | $ | 414 |  |  | $ | 288 |  |  | $ | 193 |
Additions for tax positions related to the current year |  | 96 |  |  | 108 |  |  | 110 |
Additions for tax positions of prior years |  | 17 |  |  | 45 |  |  | 12 |
Reductions for tax positions of prior years |  | (38) |  |  | (22) |  |  | (21) |
Settlements with taxing authorities |  | (4) |  |  | — |  |  | — |
Statute closings |  | (2) |  |  | (5) |  |  | (6) |
Ending balance |  | $ | 483 |  |  | $ | 414 |  |  | $ | 288 |

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