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Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Schedule of projected benefit payments

Projected benefit payments from the plans as of September 30, 2020 are estimated as follows (in millions):

2021			$	21
2022			24
2023			22
2024			24
2025			26
2026-2030			168

Schedule of plan assets by asset category

Adient's plan assets by asset category, are as follows:

						Fair Value Measurements Using:
(in millions)						Total as of September 30, 2020						Quoted Prices in Active Markets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Net Asset Value (NAV)
Pension
Cash						$	37					$	37					$	—					$	—					$	—
Equity Securities
Domestic						15						1						7						—						7
International - Developed						51						29						11						—						11
International - Emerging						3						—						3						—						—
Fixed Income Securities
Government						219						63						128						—						28
Corporate/Other						64						42						11						—						11
Hedge Fund						75						—						75						—						—
Real Estate						22						—						—						6						16
Total						$	486					$	172					$	235					$	6					$	73

						Fair Value Measurements Using:
(in millions)						Total as of September 30, 2019						Quoted Prices in Active Markets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Net Asset Value (NAV)
Pension
Cash						$	31					$	31					$	—					$	—					$	—
Equity Securities
Domestic						15						2						7						—						6
International - Developed						49						36						10						—						3
International - Emerging						5						2						3						—						—
Fixed Income Securities
Government						218						75						117						—						26
Corporate/Other						66						55						—						—						11
Hedge Fund						65						—						65						—						—
Real Estate						21						—						—						6						15
Total						$	470					$	201					$	202					$	6					$	61

Schedule of changes in fair value of pension assets

The following sets forth a summary of changes in the fair value of pension assets measured using significant unobservable inputs (Level 3):

(in millions)						Real Estate
Pension
Asset value as of September 30, 2018						$	6
Redemptions						—
Asset value as of September 30, 2019						$	6
Redemptions						—
Asset value as of September 30, 2020						$	6

Schedule of changes in projected benefit obligations, changes in plan assets and funded status

The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status:

						Pension Benefits
(in millions)						2020						2019
Accumulated Benefit Obligation						$	582					$	571
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year						$	598					$	547
Service cost						7						7
Interest cost						10						13
Actuarial (gain) loss						16						96
Benefits paid						(22)						(40)
Settlements and curtailments						(11)						—
Divestitures						(12)						—
Currency translation adjustment						20						(25)
Projected benefit obligation at end of year						$	606					$	598
Change in Plan Assets:
Fair value of plan assets at beginning of year						$	470					$	449
Actual return on plan assets						12						63
Employer contributions/(distributions)						19						19
Benefits paid						(22)						(40)
Settlements and curtailments						(10)						—
Divestitures						(1)						—
Currency translation adjustment						18						(21)
Fair value of plan assets at end of year						$	486					$	470
Funded status						$	(120)					$	(128)
Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost						$	26					$	24
Accrued benefit liability						(146)						(152)
Net amount recognized						$	(120)					$	(128)

Schedule of weighted average assumptions

						Pension Benefits
						U.S. Plans												Non-U.S. Plans
						2020						2019						2020						2019
Weighted Average Assumptions (1):
Discount rate (2)						2.91		%				3.22		%				1.87		%				1.85		%
Rate of compensation increase						NA						NA						3.64		%				3.54		%

(1) Plan assets and obligations are determined based on a September 30 measurement date.

(2) Adient considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, Adient uses different discount rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S. pension plan, Adient uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension plans, Adient consistently uses the relevant country specific benchmark indices for determining the various discount rates.

Schedule of components and key assumptions of net periodic benefit cost

The tables that follow contain the components and key assumptions of net periodic benefit cost related to Adient’s pension plans:

						Pension Benefits
(in millions)						2020						2019						2018
Components of Net Periodic Benefit Cost (Credit):
Service cost						$	7					$	7					$	8
Interest cost						10						13						14
Expected return on plan assets						(19)						(18)						(18)
Net actuarial (gain) loss						22						49						(24)
Settlement (gain) loss						1						2						—
Net periodic benefit cost (credit)						$	21					$	53					$	(20)

A $15 million settlement gain was recorded in fiscal 2018 related to the termination of a postretirement plan.

						Pension Benefits
						U.S. Plans																		Non-U.S. Plans
						2020						2019						2018						2020						2019						2018
Expense Assumptions:
Discount rate						3.34		%				4.29		%				3.85		%				1.85		%				2.71		%				2.62		%
Expected return on plan assets						5.00		%				5.00		%				5.15		%				4.01		%				4.08		%				4.19		%
Rate of compensation increase						N/A						NA						NA						3.66		%				3.46		%				3.53		%

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