XML 31 R21.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Information
 3 Months Ended
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)20232022
Net Sales
Americas$1,647 $1,724 
EMEA1,268 1,182 
Asia770 821 
Eliminations(25)(28)
Total net sales$3,660 $3,699 
Three Months Ended
December 31,
(in millions)20232022
Adjusted EBITDA
Americas$80 $69 
EMEA45 28 
Asia114 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 taxes111 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)20232022
Americas
United States$1,422 $1,553 
Mexico632 607 
Other Americas86 95 
Regional elimination(493)(531)
1,647 1,724 
EMEA
Spain180 154 
Germany224 248 
Poland249 209 
Czech Republic195 228 
Other EMEA769 667 
Regional elimination(349)(324)
1,268 1,182 
Asia
China374 398 
Korea122 138 
Thailand122 141 
Japan93 87 
Other Asia71 65 
Regional elimination(12)(8)
770 821 
Inter-segment elimination(25)(28)
Total$3,660 $3,699