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Segment Information (Tables) | 6 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Schedule of Financial Information for Reportable Segments | The following table summarizes net sales and adjusted EBITDA by reportable segment for the three and six months ended March 31, 2024 and 2023:
(in millions) |  | Americas |  | EMEA |  | Asia |  | Corporate/Eliminations |  | Consolidated
Three months ended March 31, 2024
Net sales |  | $ | 1,660 |  |  | $ | 1,370 |  |  | $ | 742 |  |  | $ | (22) |  |  | $ | 3,750 |
Adjusted EBITDA |  | $ | 80 |  |  | $ | 57 |  |  | $ | 112 |  |  | $ | (22) |  |  | $ | 227 |
Three months ended March 31, 2023
Net sales |  | $ | 1,761 |  |  | $ | 1,401 |  |  | $ | 774 |  |  | $ | (24) |  |  | $ | 3,912 |
Adjusted EBITDA |  | $ | 72 |  |  | $ | 53 |  |  | $ | 113 |  |  | $ | (23) |  |  | $ | 215 |
Six months ended March 31, 2024
Net sales |  | $ | 3,307 |  |  | $ | 2,638 |  |  | $ | 1,512 |  |  | $ | (47) |  |  | $ | 7,410 |
Adjusted EBITDA |  | $ | 160 |  |  | $ | 102 |  |  | $ | 226 |  |  | $ | (45) |  |  | $ | 443 |
Six months ended March 31, 2023
Net sales |  | $ | 3,485 |  |  | $ | 2,583 |  |  | $ | 1,595 |  |  | $ | (52) |  |  | $ | 7,611 |
Adjusted EBITDA |  | $ | 141 |  |  | $ | 81 |  |  | $ | 251 |  |  | $ | (46) |  |  | $ | 427 |
The following is a reconciliation of Adient's reportable segments' adjusted EBITDA to income before income taxes:
|  | Three Months Ended March 31, |  | Six Months Ended March 31,
(in millions) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Adjusted EBITDA |  |  |  |  |  |  |  |
Americas |  | $ | 80 |  |  | $ | 72 |  |  | $ | 160 |  |  | $ | 141 |
EMEA |  | 57 |  |  | 53 |  |  | 102 |  |  | 81 |
Asia |  | 112 |  |  | 113 |  |  | 226 |  |  | 251 |
Subtotal |  | 249 |  |  | 238 |  |  | 488 |  |  | 473 |
Corporate-related costs (1) |  | (22) |  |  | (23) |  |  | (45) |  |  | (46) |
Restructuring and impairment costs (2) |  | (125) |  |  | (17) |  |  | (136) |  |  | (24) |
Purchase accounting amortization (3) |  | (13) |  |  | (14) |  |  | (24) |  |  | (26) |
Restructuring related charges (4) |  | (2) |  |  | — |  |  | 7 |  |  | (3) |
Impairment of interests in nonconsolidated partially owned affiliates (5) |  | — |  |  | (7) |  |  | — |  |  | (6) |
Depreciation |  | (70) |  |  | (71) |  |  | (142) |  |  | (140) |
Equity based compensation (6) |  | (10) |  |  | (10) |  |  | (23) |  |  | (18) |
Other items (7) |  | 1 |  |  | — |  |  | (6) |  |  | — |
Earnings before interest and income taxes |  | 8 |  |  | 96 |  |  | 119 |  |  | 210 |
Net financing charges |  | (47) |  |  | (59) |  |  | (91) |  |  | (100) |
Other pension income (expense) (8) |  | (2) |  |  | (2) |  |  | (4) |  |  | (11) |
Income (loss) before income taxes |  | $ | (41) |  |  | $ | 35 |  |  | $ | 24 |  |  | $ | 99 |
Notes: (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects restructuring charges for costs that are probable and reasonably estimable and one-time asset impairments related to restructuring activities. (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 recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities. The six months ended March 31, 2024 includes a $10 million gain on sale of a restructured facility. (5) The three months ended March 31, 2023 reflects $4 million and $3 million of non-recurring impairment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively. The six months ended March 31, 2023 also reflects a $1 million non-recurring adjustment to certain of Adient's investments. (6) During the six months ended March 31, 2024, 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 periods prior to September 30, 2023. (7) The three months ended March 31, 2024 reflects $1 million of indirect tax recoveries in Brazil. The six months ended March 31, 2024 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 a contract related settlement and $1 million of indirect tax recoveries in Brazil. (8) The six months ended March 31, 2023 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.
Schedule of Disaggregation of Revenue by Geographical Market | Revenue by geographic area is as follows:
Net Sales |  |  |  |  |  |  |  |
|  | Three Months Ended March 31, |  | Six Months Ended March 31,
(in millions) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Americas |  |  |  |  |  |  |  |
United States |  | $ | 1,491 |  |  | $ | 1,629 |  |  | $ | 2,913 |  |  | $ | 3,182 |
Mexico |  | 628 |  |  | 615 |  |  | 1,260 |  |  | 1,222 |
Other Americas |  | 61 |  |  | 87 |  |  | 147 |  |  | 182 |
Regional elimination |  | (520) |  |  | (570) |  |  | (1,013) |  |  | (1,101) |
|  | 1,660 |  |  | 1,761 |  |  | 3,307 |  |  | 3,485 |
EMEA |  |  |  |  |  |  |  |
Germany |  | 254 |  |  | 305 |  |  | 478 |  |  | 553 |
Poland |  | 249 |  |  | 248 |  |  | 498 |  |  | 454 |
Czech Republic |  | 220 |  |  | 261 |  |  | 415 |  |  | 488 |
Other EMEA |  | 1,021 |  |  | 986 |  |  | 1,970 |  |  | 1,811 |
Regional elimination |  | (374) |  |  | (399) |  |  | (723) |  |  | (723) |
|  | 1,370 |  |  | 1,401 |  |  | 2,638 |  |  | 2,583 |
Asia |  |  |  |  |  |  |  |
China |  | 336 |  |  | 307 |  |  | 710 |  |  | 705 |
Korea |  | 128 |  |  | 140 |  |  | 250 |  |  | 279 |
Thailand |  | 126 |  |  | 154 |  |  | 248 |  |  | 295 |
Japan |  | 86 |  |  | 103 |  |  | 179 |  |  | 190 |
Other Asia |  | 78 |  |  | 79 |  |  | 149 |  |  | 143 |
Regional elimination |  | (12) |  |  | (9) |  |  | (24) |  |  | (17) |
|  | 742 |  |  | 774 |  |  | 1,512 |  |  | 1,595 |
Inter-segment elimination |  | (22) |  |  | (24) |  |  | (47) |  |  | (52) |
Total |  | $ | 3,750 |  |  | $ | 3,912 |  |  | $ | 7,410 |  |  | $ | 7,611 |

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