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Restructuring and Impairment Costs | 12 Months Ended
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Sep. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Costs | 15. Restructuring and Impairment Costs To better align its resources with its overall 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. During fiscal 2020, Adient committed to a restructuring plan ("2020 Plan") of $205 million. Of the restructuring costs recorded, $20 million relates to the Americas segment, $175 million relates to the EMEA segment and $10 million relates to the Asia segment. 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 2024. Also recorded in fiscal 2020 is $20 million of prior year underspend. The following table summarizes the changes in Adient's 2020 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  |  |  | Other |  | Currency Translation |  | Total
Original Reserve |  | $ | 203 |  |  |  |  | $ | 2 |  |  | $ | — |  |  | $ | 205 |
Utilized—cash |  | (35) |  |  |  |  | — |  |  | — |  |  | (35) |
Noncash adjustment—other |  | — |  |  |  |  | (2) |  |  | 1 |  |  | (1) |
Balance at September 30, 2020 |  | $ | 168 |  |  |  |  | $ | — |  |  | $ | 1 |  |  | $ | 169 |
During fiscal 2019, Adient committed to a restructuring plan ("2019 Plan") of $105 million. Of the restructuring costs recorded, $81 million relates to the EMEA segment, $16 million relates to the Americas segment and $8 million relates to the Asia segment. 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 2021. Also recorded in fiscal 2019 is $16 million of prior year underspend, a $9 million increase to a prior year reserve and $6 million of recoveries from a customer related to previous restructuring charges. The following table summarizes the changes in Adient's 2019 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  | Other |  | Currency Translation |  | Total
Original Reserve |  | $ | 101 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 105 |
Utilized—cash |  | (32) |  |  | — |  |  | — |  |  | (32) |
Utilized—noncash |  | — |  |  | (1) |  |  | (2) |  |  | (3) |
Balance at September 30, 2019 |  | $ | 69 |  |  | $ | 3 |  |  | $ | (2) |  |  | $ | 70 |
Utilized—cash |  | (30) |  |  | — |  |  | — |  |  | (30) |
Utilized—noncash |  | — |  |  | — |  |  | 2 |  |  | 2 |
Noncash adjustment—underspend |  | (7) |  |  | — |  |  | — |  |  | (7) |
Balance at September 30, 2020 |  | $ | 32 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 35 |
In fiscal 2018, Adient committed to a restructuring plan ("2018 Plan") of $71 million that was offset by $20 million of underspend in the 2016 Plan and $5 million of underspend related to other plan years. Of the restructuring costs recorded, $52 million relates to the EMEA segment, $10 million relates to the Asia segment and $9 million relates to the Americas segment. In fiscal 2019 there was adjustment to this plan which resulted in additional $9 million of charges. 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. The restructuring actions are expected to be substantially completed by fiscal 2021. The following table summarizes the changes in Adient's 2018 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  |  |  | Other |  | Currency Translation |  | Total
Original Reserve |  | $ | 68 |  |  |  |  | $ | 3 |  |  | $ | — |  |  | $ | 71 |
Utilized—cash |  | (19) |  |  |  |  | — |  |  | — |  |  | (19) |
Utilized—noncash |  | — |  |  |  |  | (2) |  |  | (2) |  |  | (4) |
Balance at September 30, 2018 |  | 49 |  |  |  |  | 1 |  |  | (2) |  |  | 48 |
Reserve adjustment |  | 9 |  |  |  |  | — |  |  | — |  |  | 9 |
Utilized—cash |  | (24) |  |  |  |  | — |  |  | — |  |  | (24) |
Utilized—noncash |  | — |  |  |  |  | (1) |  |  | (2) |  |  | (3) |
Noncash adjustment—underspend |  | (10) |  |  |  |  | — |  |  | — |  |  | (10) |
Balance at September 30, 2019 |  | $ | 24 |  |  |  |  | $ | — |  |  | $ | (4) |  |  | $ | 20 |
Utilized—cash |  | (9) |  |  |  |  | — |  |  | — |  |  | (9) |
Utilized—noncash |  | — |  |  |  |  | — |  |  | 1 |  |  | 1 |
Noncash adjustment—underspend |  | (7) |  |  |  |  | — |  |  | — |  |  | (7) |
Balance at September 30, 2020 |  | $ | 8 |  |  |  |  | $ | — |  |  | $ | (3) |  |  | $ | 5 |
In fiscal 2017, Adient committed to a restructuring plan ("2017 Plan") and recorded $46 million of restructuring and impairment costs in the consolidated statements of income. Of the restructuring costs recorded, $34 million relates to the EMEA segment, $7 million relates to the Americas segment and $5 million relates to the Asia segment. 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 were substantially completed in fiscal 2020. There were no material changes during fiscal 2020 to the 2017 Plan reserve balance at September 30, 2020 of $3 million. 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, $298 million relates to the EMEA segment, $32 million relates to the Americas segment and $2 million relates to the Asia segment. The asset impairment charge recorded during fiscal 2016 related primarily to information technology assets within the EMEA segment that will not be used going forward by Adient. The restructuring actions are expected to be substantially complete in fiscal 2021. There were no material changes during fiscal 2020 to the 2016 Plan reserve balance at September 30, 2020 of $25 million. 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 $20 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. Adient's restructuring plans have included workforce reductions of approximately 17,000. 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 September 30, 2020, approximately 12,000 of the employees have been separated from Adient pursuant to the restructuring plans. In addition, the restructuring plans included twenty-three plant closures. As of September 30, 2020, seventeen of the twenty-three 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, particularly related to the COVID-19 pandemic, 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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