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Restructuring and Impairment Costs | 3 Months Ended
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Dec. 31, 2021
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Costs |
13. 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 the first quarter of fiscal 2022, Adient committed to a restructuring plan ("2022 Plan") of $3 million that was offset by $6 million of prior year underspend. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions in EMEA and Americas. The restructuring actions are expected to be substantially completed within fiscal 2022.
(in millions) |  | Employee Severance and Termination Benefits |  |  |  |  |  |  |  | Total
Original reserve |  | $ | 3 |  |  |  |  |  |  |  |  | $ | 3 |
Utilized—cash |  | (1) |  |  |  |  |  |  |  |  | (1) |
Balance at December 31, 2021 |  | $ | 2 |  |  |  |  |  |  |  |  | $ | 2 |
During fiscal 2021, Adient committed to a restructuring plan ("2021 Plan") of $27 million that was offset by $16 million of prior year underspend. Of the restructuring costs recorded, $23 million related to the EMEA segment, $3 million related to the Americas segment, and $1 million related to the Asia segment. The restructuring actions related to cost reduction initiatives and consisted primarily of workforce reductions and lease contract terminations. The restructuring actions are expected to be substantially completed by fiscal 2023.
(in millions) |  | Employee Severance and Termination Benefits |  |  |  |  |  |  |  | Total
Balance at September 30, 2021 |  | $ | 22 |  |  |  |  |  |  |  |  | $ | 22 |
Utilized—cash |  | (10) |  |  |  |  |  |  |  |  | (10) |
Noncash adjustment—other |  | (1) |  |  |  |  |  |  |  |  | (1) |
Balance at December 31, 2021 |  | $ | 11 |  |  |  |  |  |  |  |  | $ | 11 |
During fiscal 2020, Adient committed to a restructuring plan ("2020 Plan") of $205 million. Of the restructuring costs recorded, $20 million related to the Americas segment, $175 million related to the EMEA segment and $10 million related to the Asia segment. The restructuring actions related to cost reduction initiatives and consist primarily of workforce reductions. Also recorded in fiscal 2020 was $20 million of underspend related to prior year plan reserves. The restructuring actions are expected to be substantially completed by fiscal 2022. The following table summarizes the changes in Adient's 2020 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  |  |  |  |  | Currency Translation |  | Total
Balance at September 30, 2021 |  | $ | 75 |  |  |  |  |  |  | $ | 2 |  |  | $ | 77 |
Utilized—cash |  | (10) |  |  |  |  |  |  | — |  |  | (10) |
Noncash adjustment—underspend/other |  | (5) |  |  |  |  |  |  | (1) |  |  | (6) |
Balance at December 31, 2021 |  | $ | 60 |  |  |  |  |  |  | $ | 1 |  |  | $ | 61 |
The following table summarizes the changes in Adient's 2019 Plan reserve:
(in millions) |  | Employee Severance and Termination Benefits |  |  |  | Currency Translation |  | Total
Balance at September 30, 2021 |  | $ | 8 |  |  |  |  | $ | 1 |  |  | $ | 9 |
Utilized—cash |  | (2) |  |  |  |  | — |  |  | (2) |
Noncash adjustment—underspend/other |  | (1) |  |  |  |  | — |  |  | (1) |
Balance at December 31, 2021 |  | $ | 5 |  |  |  |  | $ | 1 |  |  | $ | 6 |
During the first three months of fiscal 2022, there was $1 million of cash utilized against the 2018, 2017 and 2016 Plan's reserve balances. The majority of the cash utilized during the period was related to the 2016 Plan's reserve balance. The 2018, 2017, and 2016 Plan's reserve balances at December 31, 2021 were $3 million, $2 million, and $1 million, respectively. Adient's restructuring plans include workforce reductions of approximately 15,000 employees. 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 December 31, 2021, approximately 14,000 of the employees have been separated from Adient pursuant to the restructuring plans. In addition, the restructuring plans included twenty-five plant closures. As of December 31, 2021, twenty of the twenty-five 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 and supply chain disruptions, 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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