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Segment Information | 3 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Segment Information |
15. 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.
|  | Three Months Ended December 31, |  |
(in millions) |  | 2021 |  | 2020 |  |  |  |
Net Sales |  |  |  |  |  |  |  |
Americas |  | $ | 1,498 |  |  | $ | 1,737 |  |  |  |  |
EMEA |  | 1,230 |  |  | 1,604 |  |  |  |  |
Asia |  | 784 |  |  | 554 |  |  |  |  |
Eliminations |  | (32) |  |  | (47) |  |  |  |  |
Total net sales |  | $ | 3,480 |  |  | $ | 3,848 |  |  |  |  |
|  | Three Months Ended December 31, |  |
(in millions) |  | 2021 |  | 2020 |  |  |  |
Adjusted EBITDA |  |  |  |  |  |  |  |
Americas |  | $ | 9 |  |  | $ | 132 |  |  |  |  |
EMEA |  | 43 |  |  | 114 |  |  |  |  |
Asia |  | 114 |  |  | 151 |  |  |  |  |
Corporate-related costs (1) |  | (20) |  |  | (19) |  |  |  |  |
Restructuring and impairment costs (2) |  | (4) |  |  | (7) |  |  |  |  |
Purchase accounting amortization (3) |  | (14) |  |  | (11) |  |  |  |  |
Restructuring related charges (4) |  | (1) |  |  | (4) |  |  |  |  |
Depreciation |  | (75) |  |  | (70) |  |  |  |  |
Stock based compensation |  | (10) |  |  | (13) |  |  |  |  |
Other items (5) |  | (2) |  |  | 9 |  |  |  |  |
Earnings (loss) before interest and income taxes |  | 40 |  |  | 282 |  |  |  |  |
Net financing charges |  | (50) |  |  | (59) |  |  |  |  |
Other pension income (expense) |  | 1 |  |  | 2 |  |  |  |  |
Income (loss) before income taxes |  | $ | (9) |  |  | $ | 225 |  |  |  |  |
Notes: (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects qualified 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. During the three months ended December 31, 2021 and 2020, a held-for-sale impairment charge of $7 million and $6 million, respectively, was recorded in EMEA. (3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income. (4) Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. (5) The three months ended December 31, 2021 reflects $2 million of transaction costs. The three months ended December 31, 2020 reflects a one-time gain of $8 million associated with retrospective recoveries of Brazil indirect tax credits resulting from a favorable court ruling, a $5 million gain on previously held interest at YFAS in an affiliate, and $4 million of transaction costs. Geographic Information Revenue by geographic area is as follows:
Net Sales |  |  |  |  |  |  |  |
|  | Three Months Ended December 31, |  |
(in millions) |  | 2021 |  | 2020 |  |  |  |
Americas |  |  |  |  |  |  |  |
United States |  | $ | 1,331 |  |  | $ | 1,548 |  |  |  |  |
Mexico |  | 541 |  |  | 641 |  |  |  |  |
Other Americas |  | 91 |  |  | 92 |  |  |  |  |
Regional elimination |  | (465) |  |  | (544) |  |  |  |  |
|  | 1,498 |  |  | 1,737 |  |  |  |  |
EMEA |  |  |  |  |  |  |  |
Germany |  | 233 |  |  | 314 |  |  |  |  |
Czech Republic |  | 267 |  |  | 338 |  |  |  |  |
Other EMEA |  | 1,039 |  |  | 1,385 |  |  |  |  |
Regional elimination |  | (309) |  |  | (433) |  |  |  |  |
|  | 1,230 |  |  | 1,604 |  |  |  |  |
Asia |  |  |  |  |  |  |  |
Thailand |  | 135 |  |  | 105 |  |  |  |  |
China |  | 414 |  |  | 189 |  |  |  |  |
Japan |  | 35 |  |  | 89 |  |  |  |  |
Other Asia |  | 206 |  |  | 177 |  |  |  |  |
Regional elimination |  | (6) |  |  | (6) |  |  |  |  |
|  | 784 |  |  | 554 |  |  |  |  |
Inter-segment elimination |  | (32) |  |  | (47) |  |  |  |  |
Total |  | $ | 3,480 |  |  | $ | 3,848 |  |  |  |  |
The increase in net sales in China is attributable to the consolidation of CQADNT beginning October 1, 2021. Refer to Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements for additional information.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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