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Segment Information | 3 Months Ended
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Dec. 31, 2023
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: (i) Americas, which is inclusive of North America and South America; (ii) Europe, Middle East, and Africa ("EMEA"); and (iii) 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) |  | 2023 |  | 2022 |  |  |  |
Net Sales |  |  |  |  |  |  |  |
Americas |  | $ | 1,647 |  |  | $ | 1,724 |  |  |  |  |
EMEA |  | 1,268 |  |  | 1,182 |  |  |  |  |
Asia |  | 770 |  |  | 821 |  |  |  |  |
Eliminations |  | (25) |  |  | (28) |  |  |  |  |
Total net sales |  | $ | 3,660 |  |  | $ | 3,699 |  |  |  |  |
|  | Three Months Ended December 31, |  |
(in millions) |  | 2023 |  | 2022 |  |  |  |
Adjusted EBITDA |  |  |  |  |  |  |  |
Americas |  | $ | 80 |  |  | $ | 69 |  |  |  |  |
EMEA |  | 45 |  |  | 28 |  |  |  |  |
Asia |  | 114 |  |  | 138 |  |  |  |  |
Corporate-related costs (1) |  | (23) |  |  | (23) |  |  |  |  |
Restructuring and impairment costs (2) |  | (11) |  |  | (7) |  |  |  |  |
Purchase accounting amortization (3) |  | (11) |  |  | (12) |  |  |  |  |
Restructuring related charges (4) |  | 9 |  |  | (3) |  |  |  |  |
Depreciation |  | (72) |  |  | (69) |  |  |  |  |
Stock based compensation (5) |  | (13) |  |  | (8) |  |  |  |  |
Other items (6) |  | (7) |  |  | 1 |  |  |  |  |
Earnings before interest and income taxes |  | 111 |  |  | 114 |  |  |  |  |
Net financing charges |  | (44) |  |  | (41) |  |  |  |  |
Other pension income (expense) (7) |  | (2) |  |  | (9) |  |  |  |  |
Income before income taxes |  | $ | 65 |  |  | $ | 64 |  |  |  |  |
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. (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. The three months ended December 31, 2023 includes a $10 million gain on sale of a restructured facility. (5) During the three months ended December 31, 2023, a $5 million adjustment was recorded to increase equity-based compensation expense related to a retired executive's equity awards that should have been recognized in prior periods. (6) The three months ended December 31, 2023 includes an $8 million loss on sale of 51% of Adient's interest in LFADNT (as described in Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements), and a $2 million one-time divestiture related tax impact at an affiliate, partially offset by a $3 million non-recurring gain on contract related settlement. The three months ended December 31, 2022 includes a $1 million non-recurring adjustment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia, and $1 million of indirect tax recoveries in Brazil, partially offset by $1 million of transaction costs. (7) The three months ended December 31, 2022 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment. Geographic Information Revenue by geographic area is as follows:
Net Sales |  |  |  |  |  |  |  |
|  | Three Months Ended December 31, |  |
(in millions) |  | 2023 |  | 2022 |  |  |  |
Americas |  |  |  |  |  |  |  |
United States |  | $ | 1,422 |  |  | $ | 1,553 |  |  |  |  |
Mexico |  | 632 |  |  | 607 |  |  |  |  |
Other Americas |  | 86 |  |  | 95 |  |  |  |  |
Regional elimination |  | (493) |  |  | (531) |  |  |  |  |
|  | 1,647 |  |  | 1,724 |  |  |  |  |
EMEA |  |  |  |  |  |  |  |
Spain |  | 180 |  |  | 154 |  |  |  |  |
Germany |  | 224 |  |  | 248 |  |  |  |  |
Poland |  | 249 |  |  | 209 |  |  |  |  |
Czech Republic |  | 195 |  |  | 228 |  |  |  |  |
Other EMEA |  | 769 |  |  | 667 |  |  |  |  |
Regional elimination |  | (349) |  |  | (324) |  |  |  |  |
|  | 1,268 |  |  | 1,182 |  |  |  |  |
Asia |  |  |  |  |  |  |  |
China |  | 374 |  |  | 398 |  |  |  |  |
Korea |  | 122 |  |  | 138 |  |  |  |  |
Thailand |  | 122 |  |  | 141 |  |  |  |  |
Japan |  | 93 |  |  | 87 |  |  |  |  |
Other Asia |  | 71 |  |  | 65 |  |  |  |  |
Regional elimination |  | (12) |  |  | (8) |  |  |  |  |
|  | 770 |  |  | 821 |  |  |  |  |
Inter-segment elimination |  | (25) |  |  | (28) |  |  |  |  |
Total |  | $ | 3,660 |  |  | $ | 3,699 |  |  |  |  |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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