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Segment Information (Tables) | 12 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Schedule of financial information for reportable segments | 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, restructuring and impairment costs, restructuring related-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.
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Net Sales |  |  |  |  |  |
Americas |  | $ | 5,889 |  |  | $ | 7,785 |  |  | $ | 7,664 |
EMEA |  | 5,148 |  |  | 6,675 |  |  | 7,436 |
Asia |  | 1,822 |  |  | 2,337 |  |  | 2,659 |
Eliminations |  | (189) |  |  | (271) |  |  | (320) |
Total net sales |  | $ | 12,670 |  |  | $ | 16,526 |  |  | $ | 17,439 |
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Adjusted EBITDA |  |  |  |  |  |
Americas |  | $ | 228 |  |  | $ | 210 |  |  | $ | 302 |
EMEA |  | 101 |  |  | 161 |  |  | 364 |
Asia |  | 424 |  |  | 513 |  |  | 625 |
Corporate-related costs (1) |  | (80) |  |  | (97) |  |  | (95) |
Becoming Adient costs (2) |  | — |  |  | — |  |  | (62) |
Restructuring and impairment costs (3) |  | (238) |  |  | (176) |  |  | (1,181) |
Purchase accounting amortization (4) |  | (40) |  |  | (44) |  |  | (69) |
Restructuring related charges (5) |  | (20) |  |  | (31) |  |  | (61) |
Loss on business divestitures - net (6) |  | (13) |  |  | — |  |  | — |
Impairment of nonconsolidated partially owned affiliate (7) |  | (231) |  |  | — |  |  | (358) |
Depreciation (8) |  | (295) |  |  | (278) |  |  | (393) |
Stock based compensation (9) |  | (15) |  |  | (20) |  |  | (37) |
Other items (10) |  | (16) |  |  | (9) |  |  | (55) |
Earnings (loss) before interest and income taxes |  | (195) |  |  | 229 |  |  | (1,020) |
Net financing charges |  | (220) |  |  | (182) |  |  | (144) |
Other pension income (expense) |  | (14) |  |  | (45) |  |  | 43 |
Income (loss) before income taxes |  | $ | (429) |  |  | $ | 2 |  |  | $ | (1,121) |
Notes: (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects incremental expenses associated with becoming an independent company. (3) Reflects 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. Included in restructuring charges in fiscal 2020 is a non-cash pre-tax impairment related to China intangible assets of $24 million, held for sale asset impairments of $21 million, and $8 million of other long-lived asset impairments. Included in restructuring charges in fiscal 2019 is a $66 million non-cash pre-tax impairment charge related to long-lived assets ($11 million in the Americas and $55 million in EMEA) and an $18 million non-cash impairment charge related to assets held for sale ($6 million in the Americas and $12 million in Asia). Included in restructuring charges in fiscal 2018 is a non-cash pre-tax impairment charge of $1,086 million in the seat structure and mechanism operations ($787 million related to long-lived assets and $299 million related to goodwill), and a $49 million non-cash impairment charge related to assets held for sale. Refer to Note 5, "Property, Plant and Equipment," Note 6, "Goodwill and Other Intangible Assets," Note 15, "Restructuring and Impairment Costs," and Note 16, "Impairment of Long-Lived Assets," of the notes to the consolidated financial statements for more information. (4) Reflects amortization of intangible assets including those related to partially owned affiliates 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 along with restructuring costs at partially owned affiliates recorded within equity income. (6) Reflects $21 million loss of sale of RECARO and $4 million loss on deconsolidation of Aerospace, partially offset by a $12 million gain on completion of the Yanfeng transaction. (7) Reflects non-cash impairment charges related to Adient's YFAI investment balance, which has been recorded within the equity income line in the consolidated statements of income. The fiscal 2020 impairment was recorded in conjunction with the Yanfeng transaction. (8) For the year ended September 30, 2018, depreciation excludes $7 million, which is included in restructuring related charges discussed above. (9) For the year ended September 30, 2018, stock based compensation excludes $10 million which is included in Becoming Adient costs discussed above. (10) The year ended September 30, 2020 primarily includes $15 million of transaction costs and $1 million of tax adjustments at YFAI. The year ended September 30, 2019 primarily includes $4 million of integration costs associated with the acquisition of Futuris, $3 million of transaction costs and $2 million of tax adjustments at YFAI. The year ended September 30, 2018 primarily includes $22 million of integration costs associated with the acquisition of Futuris, $11 million of non-recurring consulting fees related to the seat structure and mechanism operations, an $8 million charge related to the impact of the U.S. tax reform at YFAI and $8 million of prior period adjustments.
Reconciliation of other significant reconciling items from segments to consolidated | Additional Segment Information
|  | Year Ended September 30, 2020
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Net Sales |  | $ | 5,889 |  |  | $ | 5,148 |  |  | $ | 1,822 |  |  | $ | (189) |  |  | $ | 12,670 |
Equity Income |  | 1 |  |  | 8 |  |  | 256 |  |  | (243) |  |  | 22 |
Total Assets |  | 3,019 |  |  | 2,658 |  |  | 2,868 |  |  | 1,716 |  |  | 10,261 |
Depreciation |  | 128 |  |  | 129 |  |  | 38 |  |  | — |  |  | 295 |
Amortization |  | 13 |  |  | 8 |  |  | 16 |  |  | — |  |  | 37 |
Capital Expenditures |  | 138 |  |  | 164 |  |  | 24 |  |  | — |  |  | 326 |
(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets and amounts to reconcile to consolidated totals. Specific reconciling items for equity income represents a $231 million non-cash impairment of Adient's YFAI investment, $8 million of restructuring related charges, $3 million of purchase accounting amortization and a $1 million charge for tax adjustments associated with YFAI. Corporate-related assets primarily include cash and deferred income tax assets.
|  | Year Ended September 30, 2019
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Net Sales |  | $ | 7,785 |  |  | $ | 6,675 |  |  | $ | 2,337 |  |  | $ | (271) |  |  | $ | 16,526 |
Equity Income |  | 3 |  |  | 13 |  |  | 270 |  |  | (11) |  |  | 275 |
Total Assets |  | 3,237 |  |  | 2,716 |  |  | 3,416 |  |  | 973 |  |  | 10,342 |
Depreciation |  | 109 |  |  | 126 |  |  | 43 |  |  | — |  |  | 278 |
Amortization |  | 14 |  |  | 5 |  |  | 18 |  |  | 3 |  |  | 40 |
Capital Expenditures |  | 190 |  |  | 237 |  |  | 41 |  |  | — |  |  | 468 |
(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets, depreciation and amortization, and amounts to reconcile to consolidated totals. Specific reconciling items included in equity income are $4 million of purchase accounting amortization related to the YFAI joint venture, $5 million of restructuring related charges and $2 million of tax adjustments at YFAI. Corporate-related assets primarily include cash and deferred income tax assets.
|  | Year Ended September 30, 2018
|  | Reportable Segments |  | Reconciling Items(1) |  | Consolidated
(in millions) |  | Americas |  | EMEA |  | Asia |  |
Net Sales |  | $ | 7,664 |  |  | 7,436 |  |  | $ | 2,659 |  |  | $ | (320) |  |  | $ | 17,439 |
Equity Income |  | 10 |  |  | 12 |  |  | 363 |  |  | (398) |  |  | (13) |
Total Assets |  | 3,248 |  |  | 3,066 |  |  | 3,598 |  |  | 1,030 |  |  | 10,942 |
Depreciation |  | 141 |  |  | 204 |  |  | 45 |  |  | 10 |  |  | 400 |
Amortization |  | 12 |  |  | 12 |  |  | 20 |  |  | 3 |  |  | 47 |
Capital Expenditures |  | 233 |  |  | 267 |  |  | 36 |  |  | — |  |  | 536 |
(1) Reconciling items include the elimination of intercompany transactions, corporate-related assets, depreciation and amortization, and amounts to reconcile to consolidated totals. Specific reconciling items included in equity income are a $358 million non-cash impairment charge related to Adient's YFAI investment balance, $22 million of purchase accounting amortization related to the YFAI joint venture, $10 million of restructuring related charges and a $8 million charge related to the impact of the U.S. tax reform at YFAI. Corporate-related assets primarily include cash, deferred income tax assets, and Adient's aviation assets.
Schedule of operations by geographical areas | Financial information relating to Adient's operations by geographic area is as follows:
Net Sales |  |  |  |  |  |
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Americas |  |  |  |  |  |
United States |  | $ | 4,983 |  |  | $ | 6,435 |  |  | $ | 6,376 |
Mexico |  | 2,004 |  |  | 2,709 |  |  | 2,668 |
Other Americas |  | 318 |  |  | 435 |  |  | 537 |
Regional Elimination |  | (1,416) |  |  | (1,794) |  |  | (1,917) |
|  | 5,889 |  |  | 7,785 |  |  | 7,664 |
EMEA |  |  |  |  |  |
Germany |  | 1,061 |  |  | 1,463 |  |  | 1,761 |
Czech Republic |  | 1,118 |  |  | 1,431 |  |  | 1,663 |
Other EMEA |  | 4,392 |  |  | 5,616 |  |  | 5,892 |
Regional Elimination |  | (1,423) |  |  | (1,835) |  |  | (1,880) |
|  | 5,148 |  |  | 6,675 |  |  | 7,436 |
Asia |  |  |  |  |  |
China |  | 517 |  |  | 529 |  |  | 716 |
Thailand |  | 400 |  |  | 614 |  |  | 615 |
Japan |  | 332 |  |  | 529 |  |  | 562 |
Other Asia |  | 600 |  |  | 668 |  |  | 768 |
Regional Elimination |  | (27) |  |  | (3) |  |  | (2) |
|  | 1,822 |  |  | 2,337 |  |  | 2,659 |
Inter-segment elimination |  | (189) |  |  | (271) |  |  | (320) |
Total |  | $ | 12,670 |  |  | $ | 16,526 |  |  | $ | 17,439 |
Long-Lived Assets (consisting of net property, plant and equipment) |  |
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019
Americas |  |  |  |
United States |  | $ | 472 |  |  | $ | 504 |
Mexico |  | 171 |  |  | 177 |
Other Americas |  | 20 |  |  | 32 |
|  | 663 |  |  | 713 |
EMEA |  |  |  |
Germany |  | 203 |  |  | 195 |
Other EMEA |  | 523 |  |  | 538 |
|  | 726 |  |  | 733 |
Asia |  |  |  |
All countries |  | 192 |  |  | 225 |
Total |  | $ | 1,581 |  |  | $ | 1,671 |

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- Definition Tabular disclosure of each significant reconciling item, other than profit (loss), revenues, or assets, in the reconciliation of totals of such items in reportable segments to the entity's corresponding consolidated amount. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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- Definition Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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