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Income Taxes (Tables)

12 Months Ended

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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