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Segment Information
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information
18. Segment Information

Adient manages its business on a geographic basis and 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, 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)202020192018
Net Sales
Americas$5,889 $7,785 $7,664 
EMEA5,148 6,675 7,436 
Asia1,822 2,337 2,659 
Eliminations(189)(271)(320)
Total net sales$12,670 $16,526 $17,439 
Year Ended
September 30,
(in millions)202020192018
Adjusted EBITDA
Americas$228 $210 $302 
EMEA101 161 364 
Asia424 513 625 
Corporate-related costs (1)
(80)(97)(95)
Becoming Adient costs (2)
— — (62)
Restructuring and impairment costs (3)
(238)(176)(1,181)
Purchase accounting amortization (4)
(40)(44)(69)
Restructuring related charges (5)
(20)(31)(61)
Loss on business divestitures - net (6)
(13)— — 
Impairment of nonconsolidated partially owned affiliate (7)
(231)— (358)
Depreciation (8)
(295)(278)(393)
Stock based compensation (9)
(15)(20)(37)
Other items (10)
(16)(9)(55)
Earnings (loss) before interest and income taxes(195)229 (1,020)
Net financing charges(220)(182)(144)
Other pension income (expense)(14)(45)43 
Income (loss) before income taxes$(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.
Additional Segment Information

Year Ended September 30, 2020
Reportable Segments
Reconciling Items(1)
Consolidated
(in millions)AmericasEMEAAsia
Net Sales$5,889 $5,148 $1,822 $(189)$12,670 
Equity Income1 8 256 (243)22 
Total Assets3,019 2,658 2,868 1,716 10,261 
Depreciation128 129 38 — 295 
Amortization13 8 16 — 37 
Capital Expenditures138 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)AmericasEMEAAsia
Net Sales$7,785 $6,675 $2,337 $(271)$16,526 
Equity Income3 13 270 (11)275 
Total Assets3,237 2,716 3,416 973 10,342 
Depreciation109 126 43 — 278 
Amortization14 5 18 3 40 
Capital Expenditures190 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)AmericasEMEAAsia
Net Sales$7,664 7,436 $2,659 $(320)$17,439 
Equity Income10 12 363 (398)(13)
Total Assets3,248 3,066 3,598 1,030 10,942 
Depreciation141 204 45 10 400 
Amortization12 12 20 3 47 
Capital Expenditures233 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.

Geographic Information

Financial information relating to Adient's operations by geographic area is as follows:

Net Sales
 Year Ended September 30,
(in millions)202020192018
Americas
United States$4,983 $6,435 $6,376 
Mexico2,004 2,709 2,668 
Other Americas318 435 537 
Regional Elimination(1,416)(1,794)(1,917)
5,889 7,785 7,664 
EMEA
Germany1,061 1,463 1,761 
Czech Republic1,118 1,431 1,663 
Other EMEA4,392 5,616 5,892 
Regional Elimination(1,423)(1,835)(1,880)
5,148 6,675 7,436 
Asia
China517 529 716 
Thailand400 614 615 
Japan332 529 562 
Other Asia600 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)20202019
Americas
United States$472 $504 
Mexico171 177 
Other Americas20 32 
663 713 
EMEA
Germany203 195 
Other EMEA523 538 
726 733 
Asia
All countries192 225 
Total$1,581 $1,671 

In the third quarter of fiscal 2019, Adient's Indonesia operations recorded an $8 million adjustment to increase cost of sales and to decrease primarily current assets to correct prior period misstatements. Adient has concluded that these adjustments were not material to the consolidated financial statements for any period reported.