10-Q 1 adnt-20220331.htm 10-Q adnt-20220331
00016705412022Q2FALSE--09-30http://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrent00016705412021-10-012022-03-3100016705412022-03-31xbrli:shares00016705412022-01-012022-03-31iso4217:USD00016705412021-01-012021-03-3100016705412020-10-012021-03-31iso4217:USDxbrli:shares00016705412021-09-3000016705412020-09-3000016705412021-03-31adnt:entity0001670541us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001670541us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-09-300001670541adnt:YanfengMemberadnt:YFASMember2021-03-12xbrli:pure0001670541adnt:YFASMemberadnt:AdientMember2021-03-122021-03-120001670541adnt:AYMMemberadnt:YanfengMember2021-03-120001670541adnt:AdientMemberadnt:AYMMember2021-03-120001670541adnt:YFASMemberadnt:YFASMember2021-03-122021-03-120001670541adnt:YFASMember2021-03-122021-03-12iso4217:CNY0001670541adnt:YFASMember2021-09-302021-09-300001670541adnt:YFASMember2021-12-012021-12-310001670541adnt:YFMMemberadnt:YFASMember2021-03-120001670541adnt:YFMMember2021-03-122021-03-120001670541adnt:YFASMemberadnt:YFATMember2021-03-122021-03-120001670541adnt:YFATMember2021-03-122021-03-120001670541adnt:YanfengMember2021-03-122021-03-120001670541adnt:YFASMemberadnt:YanfengMember2021-03-122021-03-120001670541adnt:YFASMember2021-03-122021-03-120001670541adnt:YFASMember2021-04-012021-06-300001670541adnt:YFASMember2021-09-302021-09-300001670541adnt:TheBoxunAgreementMemberadnt:BoxunMemberadnt:CQYFASMember2021-03-122021-03-120001670541adnt:TheBoxunAgreementMemberadnt:CQADNTMember2021-03-122021-03-120001670541adnt:TheBoxunAgreementMemberadnt:CQADNTMember2021-12-012021-12-310001670541adnt:TheBoxunAgreementMemberadnt:CQADNTMember2022-01-012022-01-310001670541adnt:TheBoxunAgreementMemberadnt:CQADNTMember2022-03-012022-03-310001670541adnt:CQYFASMemberadnt:YFASMember2021-03-122021-03-120001670541adnt:CQYFASMemberadnt:AdientMember2021-03-122021-03-120001670541adnt:KEIPERSeatingMechanismsCoLtdMemberadnt:AdientMemberadnt:YFATMember2021-03-122021-03-120001670541adnt:KEIPERSeatingMechanismsCoLtdMemberadnt:YFATMember2021-03-122021-03-120001670541adnt:YFASMemberadnt:GZDFASMemberadnt:AdientMember2021-03-122021-03-120001670541adnt:YFASMemberadnt:GZDFASMember2021-03-122021-03-120001670541adnt:YFASMemberadnt:AdientMemberadnt:YHASMember2021-03-122021-03-120001670541adnt:YFASMemberadnt:YHASMember2021-03-122021-03-120001670541adnt:YFASMember2021-11-012021-11-300001670541adnt:YanfengMemberadnt:YFAIMember2021-10-312021-10-310001670541adnt:AdientMemberadnt:YFAIMember2021-10-312021-10-310001670541adnt:CQYFASMember2021-09-302021-09-300001670541adnt:CQADNTMember2021-09-300001670541adnt:LFADNTMember2021-09-300001670541adnt:CQADNTMember2021-09-302021-09-300001670541adnt:LFADNTMember2021-09-302021-09-300001670541adnt:CustomerRelationshipsAndPatentedTechnologiesMembersrt:MinimumMember2021-09-302021-09-300001670541adnt:CustomerRelationshipsAndPatentedTechnologiesMembersrt:MaximumMember2021-09-302021-09-300001670541adnt:MeasurementInputRateOfReturnMember2021-09-300001670541adnt:CustomerRelationshipsAndPatentedTechnologiesMember2021-09-302021-09-300001670541us-gaap:SubsequentEventMemberadnt:YFATMemberadnt:KEIPERSeatingMechanismsCoLtdMember2022-04-012022-04-30iso4217:JPY0001670541us-gaap:SubsequentEventMemberadnt:YFATMember2022-04-012022-04-300001670541us-gaap:SubsequentEventMemberadnt:YFATMember2022-04-300001670541srt:ScenarioForecastMemberus-gaap:SubsequentEventMemberadnt:TwoJointVenturesMemberadnt:YanfengMember2022-04-012022-09-30adnt:venture0001670541srt:ScenarioForecastMemberus-gaap:SubsequentEventMemberadnt:TwoJointVenturesMemberadnt:YanfengMember2022-09-300001670541srt:ScenarioForecastMemberadnt:TwoJointVenturesMemberadnt:YanfengMember2022-04-012022-04-300001670541adnt:TwoJointVenturesMemberadnt:YanfengMember2022-01-012022-03-310001670541adnt:ShenyangJinbeiAdientAutomativeComponentsCoLtdMember2021-03-312021-03-310001670541adnt:ShenyangJinbeiAdientAutomativeComponentsCoLtdMember2021-03-312021-03-310001670541adnt:ShenyangJinbeiAdientAutomativeComponentsCoLtdMember2021-01-012021-03-310001670541adnt:ShenyangJinbeiAdientAutomativeComponentsCoLtdMember2021-04-012021-04-010001670541adnt:EMEASegmentMembercountry:RU2022-01-012022-03-310001670541adnt:EMEASegmentMembercountry:RU2020-10-012021-09-300001670541adnt:EMEASegmentMembercountry:RU2021-10-012022-03-310001670541adnt:EntitiesInChinaAndPropertiesInUSMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-10-012021-12-310001670541us-gaap:SellingGeneralAndAdministrativeExpensesMembercountry:TR2022-01-012022-03-310001670541adnt:FranceAndTurkeyMember2021-09-300001670541adnt:FranceAndTurkeyMember2020-10-012021-09-300001670541country:TR2021-10-012022-03-310001670541country:TR2021-04-012021-06-300001670541country:TR2022-01-012022-03-310001670541adnt:AmericasSegmentMember2021-09-300001670541adnt:EMEASegmentMember2021-09-300001670541adnt:AsiaSegmentMember2021-09-300001670541adnt:AmericasSegmentMember2021-10-012022-03-310001670541adnt:EMEASegmentMember2021-10-012022-03-310001670541adnt:AsiaSegmentMember2021-10-012022-03-310001670541adnt:AmericasSegmentMember2022-03-310001670541adnt:EMEASegmentMember2022-03-310001670541adnt:AsiaSegmentMember2022-03-310001670541us-gaap:PatentsMember2022-03-310001670541us-gaap:PatentsMember2021-09-300001670541us-gaap:CustomerRelationshipsMember2022-03-310001670541us-gaap:CustomerRelationshipsMember2021-09-300001670541us-gaap:TrademarksMember2022-03-310001670541us-gaap:TrademarksMember2021-09-300001670541us-gaap:OtherIntangibleAssetsMember2022-03-310001670541us-gaap:OtherIntangibleAssetsMember2021-09-300001670541adnt:TermLoanBLIBORPlus325DueIn2028Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001670541adnt:TermLoanBLIBORPlus325DueIn2028Member2022-03-310001670541adnt:TermLoanBLIBORPlus325DueIn2028Member2021-09-300001670541us-gaap:UnsecuredDebtMemberadnt:NotesDue2026Member2022-03-310001670541us-gaap:UnsecuredDebtMemberadnt:NotesDue2026Member2021-09-300001670541adnt:NotesDue2024Memberus-gaap:UnsecuredDebtMember2022-03-310001670541adnt:NotesDue2024Memberus-gaap:UnsecuredDebtMember2021-09-300001670541us-gaap:UnsecuredDebtMemberadnt:SeniorNotesDue2025900Member2022-03-310001670541us-gaap:UnsecuredDebtMemberadnt:SeniorNotesDue2025900Member2021-09-300001670541us-gaap:EurodollarMemberadnt:EuropeanInvestmentBankLoanduein2022Memberus-gaap:UnsecuredDebtMember2021-10-012022-03-310001670541adnt:EuropeanInvestmentBankLoanduein2022Memberus-gaap:UnsecuredDebtMember2022-03-310001670541adnt:EuropeanInvestmentBankLoanduein2022Memberus-gaap:UnsecuredDebtMember2021-09-300001670541us-gaap:RevolvingCreditFacilityMember2022-03-310001670541us-gaap:RevolvingCreditFacilityMemberadnt:NorthAmericanSubfacilityMember2022-03-310001670541adnt:EuropeanSubfacilityMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001670541us-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2021-10-012022-03-310001670541us-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2021-10-012022-03-310001670541us-gaap:LineOfCreditMember2022-03-310001670541us-gaap:RevolvingCreditFacilityMember2021-10-012022-03-310001670541us-gaap:RevolvingCreditFacilityMemberus-gaap:EurodollarMembersrt:MinimumMember2021-10-012022-03-310001670541us-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:EurodollarMember2021-10-012022-03-310001670541adnt:TermLoanBLIBORPlus350DueIn2028Memberus-gaap:SecuredDebtMember2021-10-012022-03-310001670541adnt:TermLoanBLIBORPlus350DueIn2028Memberus-gaap:SecuredDebtMember2022-03-310001670541adnt:IncrementalTermLoanMemberus-gaap:SecuredDebtMember2022-03-310001670541adnt:TermLoanBLIBORPlus350DueIn2028Member2021-10-012022-03-310001670541us-gaap:EurodollarMemberadnt:TermLoanBLIBORPlus350DueIn2028Memberus-gaap:SecuredDebtMember2021-04-012021-04-300001670541us-gaap:BaseRateMemberadnt:TermLoanBLIBORPlus350DueIn2028Memberus-gaap:SecuredDebtMember2021-04-012021-04-300001670541adnt:TermLoanBLIBORPlus350DueIn2028Memberus-gaap:SecuredDebtMember2021-04-012021-04-300001670541adnt:TermLoanBLIBORPlus350DueIn2028Memberus-gaap:SecuredDebtMember2021-04-3000016705412021-04-300001670541us-gaap:SeniorNotesMemberadnt:NotesDueInMay2026Member2022-03-310001670541us-gaap:SeniorNotesMemberadnt:NotesDueInMay2026Member2021-03-310001670541us-gaap:SeniorNotesMemberadnt:NotesDueInMay2026Member2021-01-012021-03-310001670541us-gaap:SeniorNotesMemberadnt:NotesDueInMay2026Member2021-06-300001670541us-gaap:SeniorNotesMemberadnt:NotesDueInMay2026Member2021-04-012021-06-300001670541adnt:NotesDueInMay2026Memberus-gaap:SecuredDebtMember2021-06-300001670541us-gaap:UnsecuredDebtMemberadnt:NotesDue2026Member2020-07-012020-09-300001670541us-gaap:UnsecuredDebtMemberadnt:NotesDue2026Member2020-09-300001670541us-gaap:UnsecuredDebtMemberadnt:NotesDue2026Member2020-10-012021-09-30iso4217:EUR0001670541adnt:NotesDue2024Memberus-gaap:UnsecuredDebtMember2022-02-280001670541adnt:NotesDue2024Memberus-gaap:UnsecuredDebtMember2022-02-012022-02-280001670541us-gaap:UnsecuredDebtMember2022-03-310001670541us-gaap:EurodollarMember2021-10-012022-03-310001670541us-gaap:UnsecuredDebtMember2021-10-012022-03-310001670541adnt:EuropeanInvestmentBankLoanduein2022Memberus-gaap:UnsecuredDebtMember2020-10-012020-12-310001670541adnt:EuropeanInvestmentBankLoanduein2022Memberus-gaap:UnsecuredDebtMember2021-05-012021-05-310001670541us-gaap:SeniorNotesMemberadnt:SeniorNotesDue2025900Member2020-04-200001670541us-gaap:SeniorNotesMemberadnt:SeniorNotesDue2025900Member2020-04-202020-04-200001670541us-gaap:SeniorNotesMemberadnt:SeniorNotesDue2025900Member2022-02-280001670541adnt:NotesDue2024Memberus-gaap:SeniorNotesMember2020-04-200001670541adnt:NotesDue2024Memberus-gaap:SeniorNotesMember2020-04-202020-04-200001670541us-gaap:SeniorNotesMemberadnt:SeniorNotesDue2025900Member2022-02-012022-02-280001670541us-gaap:SeniorNotesMemberadnt:SeniorNotesDue2025900Member2022-03-310001670541adnt:NotesDue2024Memberus-gaap:UnsecuredDebtMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001670541country:JPus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMember2022-03-31adnt:instrument0001670541us-gaap:InterestRateCapMember2022-03-310001670541us-gaap:ForeignExchangeContractMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:NondesignatedMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:NondesignatedMember2021-09-300001670541us-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001670541us-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001670541us-gaap:NondesignatedMember2022-03-310001670541us-gaap:NondesignatedMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NondesignatedMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NondesignatedMember2021-09-300001670541us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongTermDebtMember2022-03-310001670541us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:LongTermDebtMember2021-09-300001670541us-gaap:NondesignatedMemberus-gaap:LongTermDebtMember2022-03-310001670541us-gaap:NondesignatedMemberus-gaap:LongTermDebtMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-10-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2020-10-012021-03-310001670541us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001670541us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-01-012021-03-310001670541us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-10-012022-03-310001670541us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2020-10-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-01-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-10-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2020-10-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2022-01-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-01-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-10-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-10-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2022-01-012022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-03-310001670541us-gaap:CashFlowHedgingMember2022-01-012022-03-310001670541us-gaap:CashFlowHedgingMember2021-01-012021-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-03-310001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentAssetsMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel3Member2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2022-03-310001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel3Member2022-03-310001670541us-gaap:FairValueInputsLevel1Member2022-03-310001670541us-gaap:FairValueInputsLevel2Member2022-03-310001670541us-gaap:FairValueInputsLevel3Member2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2022-03-310001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentLiabilitiesMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2022-03-310001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2021-09-300001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentAssetsMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel3Member2021-09-300001670541us-gaap:InterestRateCapMemberus-gaap:OtherNoncurrentAssetsMember2021-09-300001670541us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateCapMemberus-gaap:OtherNoncurrentAssetsMember2021-09-300001670541us-gaap:InterestRateCapMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001670541us-gaap:InterestRateCapMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel3Member2021-09-300001670541us-gaap:FairValueInputsLevel1Member2021-09-300001670541us-gaap:FairValueInputsLevel2Member2021-09-300001670541us-gaap:FairValueInputsLevel3Member2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-09-300001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentLiabilitiesMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001670541us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-09-300001670541us-gaap:FairValueInputsLevel1Memberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-09-300001670541us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherCurrentLiabilitiesMember2021-09-300001670541us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2021-09-300001670541us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2021-09-300001670541us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel3Member2021-09-300001670541us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMembercountry:CN2022-03-310001670541us-gaap:CommonStockMember2021-09-300001670541us-gaap:AdditionalPaidInCapitalMember2021-09-300001670541us-gaap:RetainedEarningsMember2021-09-300001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001670541us-gaap:ParentMember2021-09-300001670541us-gaap:NoncontrollingInterestMember2021-09-300001670541us-gaap:RetainedEarningsMember2021-10-012022-03-310001670541us-gaap:ParentMember2021-10-012022-03-310001670541us-gaap:NoncontrollingInterestMember2021-10-012022-03-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012022-03-310001670541us-gaap:AdditionalPaidInCapitalMember2021-10-012022-03-310001670541us-gaap:CommonStockMember2022-03-310001670541us-gaap:AdditionalPaidInCapitalMember2022-03-310001670541us-gaap:RetainedEarningsMember2022-03-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001670541us-gaap:ParentMember2022-03-310001670541us-gaap:NoncontrollingInterestMember2022-03-310001670541us-gaap:CommonStockMember2021-12-310001670541us-gaap:AdditionalPaidInCapitalMember2021-12-310001670541us-gaap:RetainedEarningsMember2021-12-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001670541us-gaap:ParentMember2021-12-310001670541us-gaap:NoncontrollingInterestMember2021-12-3100016705412021-12-310001670541us-gaap:RetainedEarningsMember2022-01-012022-03-310001670541us-gaap:ParentMember2022-01-012022-03-310001670541us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001670541us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001670541us-gaap:CommonStockMember2020-09-300001670541us-gaap:AdditionalPaidInCapitalMember2020-09-300001670541us-gaap:RetainedEarningsMember2020-09-300001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001670541us-gaap:ParentMember2020-09-300001670541us-gaap:NoncontrollingInterestMember2020-09-300001670541us-gaap:RetainedEarningsMember2020-10-012021-03-310001670541us-gaap:ParentMember2020-10-012021-03-310001670541us-gaap:NoncontrollingInterestMember2020-10-012021-03-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012021-03-310001670541us-gaap:AdditionalPaidInCapitalMember2020-10-012021-03-310001670541srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2020-09-300001670541srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ParentMember2020-09-300001670541srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-09-300001670541us-gaap:CommonStockMember2021-03-310001670541us-gaap:AdditionalPaidInCapitalMember2021-03-310001670541us-gaap:RetainedEarningsMember2021-03-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001670541us-gaap:ParentMember2021-03-310001670541us-gaap:NoncontrollingInterestMember2021-03-310001670541us-gaap:CommonStockMember2020-12-310001670541us-gaap:AdditionalPaidInCapitalMember2020-12-310001670541us-gaap:RetainedEarningsMember2020-12-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001670541us-gaap:ParentMember2020-12-310001670541us-gaap:NoncontrollingInterestMember2020-12-3100016705412020-12-310001670541us-gaap:RetainedEarningsMember2021-01-012021-03-310001670541us-gaap:ParentMember2021-01-012021-03-310001670541us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001670541us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001670541us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001670541srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2020-12-310001670541srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ParentMember2020-12-310001670541srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300001670541us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001670541us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2021-10-012022-03-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2020-10-012021-03-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001670541us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-300001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-10-012022-03-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-10-012021-03-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001670541us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001670541us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001670541us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001670541us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300001670541us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-300001670541us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310001670541us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310001670541adnt:RedeemableNoncontrollingInterestMember2021-12-310001670541adnt:RedeemableNoncontrollingInterestMember2020-12-310001670541adnt:RedeemableNoncontrollingInterestMember2021-09-300001670541adnt:RedeemableNoncontrollingInterestMember2020-09-300001670541adnt:RedeemableNoncontrollingInterestMember2022-01-012022-03-310001670541adnt:RedeemableNoncontrollingInterestMember2021-01-012021-03-310001670541adnt:RedeemableNoncontrollingInterestMember2021-10-012022-03-310001670541adnt:RedeemableNoncontrollingInterestMember2020-10-012021-03-310001670541adnt:RedeemableNoncontrollingInterestMember2022-03-310001670541adnt:RedeemableNoncontrollingInterestMember2021-03-310001670541adnt:A2022RestructuringPlanMember2022-03-310001670541adnt:A2022RestructuringPlanMember2021-10-012022-03-310001670541us-gaap:EmployeeSeveranceMemberadnt:A2022RestructuringPlanMember2021-09-300001670541adnt:A2022RestructuringPlanMember2021-09-300001670541us-gaap:EmployeeSeveranceMemberadnt:A2022RestructuringPlanMember2021-10-012022-03-310001670541us-gaap:EmployeeSeveranceMemberadnt:A2022RestructuringPlanMember2022-03-310001670541adnt:A2021RestructuringPlanMember2021-09-300001670541adnt:A2021RestructuringPlanMember2020-10-012021-09-300001670541adnt:EMEASegmentMemberadnt:A2021RestructuringPlanMember2021-09-300001670541adnt:A2021RestructuringPlanMemberadnt:AmericasSegmentMember2021-09-300001670541adnt:AsiaSegmentMemberadnt:A2021RestructuringPlanMember2021-09-300001670541adnt:A2021RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2021-09-300001670541adnt:A2021RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2021-10-012022-03-310001670541adnt:A2021RestructuringPlanMember2021-10-012022-03-310001670541adnt:A2021RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2022-03-310001670541adnt:A2021RestructuringPlanMember2022-03-310001670541adnt:A2020RestructuringPlanMember2019-10-012020-09-300001670541adnt:A2020RestructuringPlanMemberadnt:AmericasSegmentMember2019-10-012020-09-300001670541adnt:A2020RestructuringPlanMemberadnt:EMEASegmentMember2019-10-012020-09-300001670541adnt:A2020RestructuringPlanMemberadnt:AsiaSegmentMember2019-10-012020-09-3000016705412019-10-012020-09-300001670541adnt:A2020RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2021-09-300001670541adnt:A2020RestructuringPlanMemberus-gaap:ForeignCurrencyGainLossMember2021-09-300001670541adnt:A2020RestructuringPlanMember2021-09-300001670541adnt:A2020RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2021-10-012022-03-310001670541adnt:A2020RestructuringPlanMemberus-gaap:ForeignCurrencyGainLossMember2021-10-012022-03-310001670541adnt:A2020RestructuringPlanMember2021-10-012022-03-310001670541adnt:A2020RestructuringPlanMemberus-gaap:EmployeeSeveranceMember2022-03-310001670541adnt:A2020RestructuringPlanMemberus-gaap:ForeignCurrencyGainLossMember2022-03-310001670541adnt:A2020RestructuringPlanMember2022-03-310001670541us-gaap:EmployeeSeveranceMemberadnt:A2019RestructuringPlanMember2021-09-300001670541us-gaap:ForeignCurrencyGainLossMemberadnt:A2019RestructuringPlanMember2021-09-300001670541adnt:A2019RestructuringPlanMember2021-09-300001670541us-gaap:EmployeeSeveranceMemberadnt:A2019RestructuringPlanMember2021-10-012022-03-310001670541us-gaap:ForeignCurrencyGainLossMemberadnt:A2019RestructuringPlanMember2021-10-012022-03-310001670541adnt:A2019RestructuringPlanMember2021-10-012022-03-310001670541us-gaap:EmployeeSeveranceMemberadnt:A2019RestructuringPlanMember2022-03-310001670541us-gaap:ForeignCurrencyGainLossMemberadnt:A2019RestructuringPlanMember2022-03-310001670541adnt:A2019RestructuringPlanMember2022-03-310001670541adnt:RestructuringPlan201820172016Member2021-10-012022-03-310001670541adnt:RestructuringPlan2018Member2022-03-310001670541adnt:RestructuringPlan2017Member2022-03-310001670541adnt:RestructuringPlan2016Member2022-03-31adnt:employee00016705412022-03-312022-03-31adnt:plant0001670541us-gaap:StateAdministrationOfTaxationChinaMemberus-gaap:ForeignCountryMember2022-01-012022-03-310001670541us-gaap:SecretariatOfTheFederalRevenueBureauOfBrazilMemberus-gaap:ForeignCountryMember2021-10-012021-12-310001670541us-gaap:SecretariatOfTheFederalRevenueBureauOfBrazilMemberus-gaap:ForeignCountryMember2020-10-012020-12-31adnt:segment0001670541us-gaap:OperatingSegmentsMemberadnt:AmericasSegmentMember2022-01-012022-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AmericasSegmentMember2021-01-012021-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AmericasSegmentMember2021-10-012022-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AmericasSegmentMember2020-10-012021-03-310001670541us-gaap:OperatingSegmentsMemberadnt:EMEASegmentMember2022-01-012022-03-310001670541us-gaap:OperatingSegmentsMemberadnt:EMEASegmentMember2021-01-012021-03-310001670541us-gaap:OperatingSegmentsMemberadnt:EMEASegmentMember2021-10-012022-03-310001670541us-gaap:OperatingSegmentsMemberadnt:EMEASegmentMember2020-10-012021-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AsiaSegmentMember2022-01-012022-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AsiaSegmentMember2021-01-012021-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AsiaSegmentMember2021-10-012022-03-310001670541us-gaap:OperatingSegmentsMemberadnt:AsiaSegmentMember2020-10-012021-03-310001670541us-gaap:IntersegmentEliminationMember2022-01-012022-03-310001670541us-gaap:IntersegmentEliminationMember2021-01-012021-03-310001670541us-gaap:IntersegmentEliminationMember2021-10-012022-03-310001670541us-gaap:IntersegmentEliminationMember2020-10-012021-03-310001670541us-gaap:CorporateNonSegmentMember2022-01-012022-03-310001670541us-gaap:CorporateNonSegmentMember2021-01-012021-03-310001670541us-gaap:CorporateNonSegmentMember2021-10-012022-03-310001670541us-gaap:CorporateNonSegmentMember2020-10-012021-03-310001670541adnt:EMEASegmentMember2020-10-012021-03-310001670541country:ZA2022-01-012022-03-310001670541country:ZA2021-10-012022-03-310001670541adnt:ShenyangJinbeiAdientAutomativeComponentsCoLtdMember2020-10-012021-03-310001670541country:RU2022-01-012022-03-310001670541country:BR2022-01-012022-03-310001670541country:MY2022-01-012022-03-310001670541country:BR2020-10-012021-03-310001670541adnt:YFASMember2020-10-012021-03-310001670541country:US2022-01-012022-03-310001670541country:US2021-01-012021-03-310001670541country:US2021-10-012022-03-310001670541country:US2020-10-012021-03-310001670541country:MX2022-01-012022-03-310001670541country:MX2021-01-012021-03-310001670541country:MX2021-10-012022-03-310001670541country:MX2020-10-012021-03-310001670541adnt:OtherNonUSMember2022-01-012022-03-310001670541adnt:OtherNonUSMember2021-01-012021-03-310001670541adnt:OtherNonUSMember2021-10-012022-03-310001670541adnt:OtherNonUSMember2020-10-012021-03-310001670541srt:AmericasMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001670541srt:AmericasMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310001670541srt:AmericasMemberus-gaap:IntersegmentEliminationMember2021-10-012022-03-310001670541srt:AmericasMemberus-gaap:IntersegmentEliminationMember2020-10-012021-03-310001670541srt:AmericasMember2022-01-012022-03-310001670541srt:AmericasMember2021-01-012021-03-310001670541srt:AmericasMember2021-10-012022-03-310001670541srt:AmericasMember2020-10-012021-03-310001670541country:DE2022-01-012022-03-310001670541country:DE2021-01-012021-03-310001670541country:DE2021-10-012022-03-310001670541country:DE2020-10-012021-03-310001670541country:CZ2022-01-012022-03-310001670541country:CZ2021-01-012021-03-310001670541country:CZ2021-10-012022-03-310001670541country:CZ2020-10-012021-03-310001670541adnt:OtherEMEAExcludingGermanyMember2022-01-012022-03-310001670541adnt:OtherEMEAExcludingGermanyMember2021-01-012021-03-310001670541adnt:OtherEMEAExcludingGermanyMember2021-10-012022-03-310001670541adnt:OtherEMEAExcludingGermanyMember2020-10-012021-03-310001670541us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001670541us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310001670541us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2021-10-012022-03-310001670541us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2020-10-012021-03-310001670541us-gaap:EMEAMember2022-01-012022-03-310001670541us-gaap:EMEAMember2021-01-012021-03-310001670541us-gaap:EMEAMember2021-10-012022-03-310001670541us-gaap:EMEAMember2020-10-012021-03-310001670541country:TH2022-01-012022-03-310001670541country:TH2021-01-012021-03-310001670541country:TH2021-10-012022-03-310001670541country:TH2020-10-012021-03-310001670541country:CN2022-01-012022-03-310001670541country:CN2021-01-012021-03-310001670541country:CN2021-10-012022-03-310001670541country:CN2020-10-012021-03-310001670541country:JP2022-01-012022-03-310001670541country:JP2021-01-012021-03-310001670541country:JP2021-10-012022-03-310001670541country:JP2020-10-012021-03-310001670541adnt:OtherAsiaExcludingChinaMember2022-01-012022-03-310001670541adnt:OtherAsiaExcludingChinaMember2021-01-012021-03-310001670541adnt:OtherAsiaExcludingChinaMember2021-10-012022-03-310001670541adnt:OtherAsiaExcludingChinaMember2020-10-012021-03-310001670541srt:AsiaMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001670541srt:AsiaMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310001670541srt:AsiaMemberus-gaap:IntersegmentEliminationMember2021-10-012022-03-310001670541srt:AsiaMemberus-gaap:IntersegmentEliminationMember2020-10-012021-03-310001670541srt:AsiaMember2022-01-012022-03-310001670541srt:AsiaMember2021-01-012021-03-310001670541srt:AsiaMember2021-10-012022-03-310001670541srt:AsiaMember2020-10-012021-03-310001670541us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-10-012022-03-310001670541us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-10-012021-03-310001670541adnt:KEIPERSeatingMechanismsCoLtdMemberadnt:AffiliateOfYangengMember2022-03-310001670541adnt:KEIPERSeatingMechanismsCoLtdMember2022-03-31


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-37757
adnt-20220331_g1.jpg
Adient plc
(exact name of Registrant as specified in its charter)
Ireland98-1328821
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
25-28 North Wall Quay, IFSC, Dublin 1, Ireland D01 H104
(Address of principal executive offices)
734-254-5000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of exchange on which registered
Ordinary Shares, par value $0.001ADNTNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☑  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes    No  ☑

At March 31, 2022, 94,811,378 ordinary shares were outstanding.



Adient plc
Form 10-Q
For the Three Months Ended March 31, 2022

TABLE OF CONTENTS

Adient plc | Form 10-Q | 2


PART I - FINANCIAL INFORMATION

Item 1.Unaudited Financial Statements

Adient plc
Consolidated Statements of Income (Loss)
(unaudited)

Three Months Ended
March 31,
Six Months Ended
March 31,
(in millions, except per share data)2022202120222021
Net sales$3,506 $3,819 $6,986 $7,667 
Cost of sales3,328 3,521 6,635 7,028 
Gross profit178 298 351 639 
Selling, general and administrative expenses135 148 297 297 
Restructuring and impairment costs4 5 8 12 
Equity income (loss)7 85 40 182 
Earnings (loss) before interest and income taxes46 230 86 512 
Net financing charges83 110 133 169 
Other pension expense (income)(1)(2)(2)(4)
Income (loss) before income taxes(36)122 (45)347 
Income tax provision (benefit)24 28 45 80 
Net income (loss)(60)94 (90)267 
Income (loss) attributable to noncontrolling interests21 25 45 48 
Net income (loss) attributable to Adient$(81)$69 $(135)$219 
Earnings (loss) per share:
Basic$(0.85)$0.73 $(1.43)$2.33 
Diluted$(0.85)$0.72 $(1.43)$2.30 
Shares used in computing earnings per share:
Basic94.8 94.2 94.7 94.1 
Diluted94.8 96.0 94.7 95.4 

The accompanying notes are an integral part of the consolidated financial statements.

Adient plc | Form 10-Q | 3


Adient plc
Consolidated Statements of Comprehensive Income (Loss)
(unaudited)




Three Months Ended
March 31,
Six Months Ended
March 31,
(in millions)2022202120222021
Net income (loss)$(60)$94 $(90)$267 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments9 (35)33 37 
Realized and unrealized gains (losses) on derivatives4 (11)2 17 
Other comprehensive income (loss)13 (46)35 54 
Total comprehensive income (loss)(47)48 (55)321 
Comprehensive income (loss) attributable to noncontrolling interests22 16 53 56 
Comprehensive income (loss) attributable to Adient $(69)$32 $(108)$265 

The accompanying notes are an integral part of the consolidated financial statements.

Adient plc | Form 10-Q | 4


Adient plc
Consolidated Statements of Financial Position
(unaudited)




(in millions, except share and per share data)March 31,
2022
September 30,
2021
Assets
Cash and cash equivalents$1,118 $1,521 
Accounts receivable - net
1,742 1,426 
Inventories998 976 
Assets held for sale 49 
Other current assets459 1,114 
Current assets4,317 5,086 
Property, plant and equipment - net1,523 1,607 
Goodwill2,198 2,212 
Other intangible assets - net537 555 
Investments in partially-owned affiliates376 335 
Assets held for sale9 25 
Other noncurrent assets894 958 
Total assets$9,854 $10,778 
Liabilities and Shareholders' Equity
Short-term debt$9 $17 
Current portion of long-term debt161 167 
Accounts payable2,468 2,130 
Accrued compensation and benefits331 389 
Liabilities held for sale 16 
Restructuring reserve73 115 
Other current liabilities616 677 
Current liabilities3,658 3,511 
Long-term debt2,766 3,512 
Pension and postretirement benefits121 128 
Other noncurrent liabilities636 669 
Long-term liabilities3,523 4,309 
Commitments and Contingencies (Note 17)
Redeemable noncontrolling interests48 240 
Preferred shares issued, par value $0.001; 100,000,000 shares authorized,
Zero shares issued and outstanding at March 31, 2022
  
Ordinary shares issued, par value $0.001; 500,000,000 shares authorized,
94,811,378 shares issued and outstanding at March 31, 2022
  
Additional paid-in capital4,008 3,991 
Accumulated deficit(1,123)(988)
Accumulated other comprehensive income (loss)(600)(627)
Shareholders' equity attributable to Adient2,285 2,376 
Noncontrolling interests340 342 
Total shareholders' equity2,625 2,718 
Total liabilities and shareholders' equity$9,854 $10,778 

The accompanying notes are an integral part of the consolidated financial statements.

Adient plc | Form 10-Q | 5

Adient plc
Consolidated Statements of Cash Flows
(unaudited)
Six Months Ended
March 31,
(in millions)20222021
Operating Activities
Net income (loss) attributable to Adient$(135)$219 
Income attributable to noncontrolling interests45 48 
Net income (loss)(90)267 
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation151 139 
Amortization of intangibles26 19 
Pension and postretirement expense (benefit)2  
Pension and postretirement contributions, net(10)(12)
Equity in earnings of partially-owned affiliates, net of dividends received (includes purchase accounting amortization of $1 and $2, respectively)
(48)(139)
Impairment/(gain) on sale of nonconsolidated partially-owned affiliates8 (33)
Premium and transaction costs paid on repurchase of debt34 46 
Derivative loss on the 2021 Yanfeng Transaction3  
Deferred income taxes(8)(3)
Non-cash impairment charges11 10 
Equity-based compensation14 26 
Other14 6 
Changes in assets and liabilities:
Receivables(332)(120)
Inventories(34)(71)
Other assets55 (85)
Restructuring reserves(38)(95)
Accounts payable and accrued liabilities246 135 
Accrued income taxes11 50 
Cash provided (used) by operating activities15 140 
Investing Activities
Capital expenditures(117)(126)
Sale of property, plant and equipment12 12 
Settlement of derivatives(30) 
Advance payment for business acquisitions(6) 
Proceeds from business divestitures740 19 
Cash provided (used) by investing activities599 (95)
Financing Activities
Increase (decrease) in short-term debt(8)6 
Repayment of long-term debt(744)(705)
Debt financing costs(1)(1)
Cash paid to acquire a noncontrolling interest(153) 
Dividends paid to noncontrolling interests(99)(59)
Other(12)(3)
Cash provided (used) by financing activities(1,017)(762)
Effect of exchange rate changes on cash and cash equivalents 12 
Increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale(403)(705)
Change in cash classified within current assets held for sale (3)
Increase (decrease) in cash and cash equivalents(403)(708)
Cash and cash equivalents at beginning of period1,521 1,692 
Cash and cash equivalents at end of period$1,118 $984 

The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-Q | 6

Adient plc
Notes to Consolidated Financial Statements
(unaudited)





1. Basis of Presentation and Summary of Significant Accounting Policies

Adient is a global leader in the automotive seating supplier industry. Adient has a leading market position in the Americas, Europe and China, and has longstanding relationships with the largest global original equipment manufacturers, or OEMs, in the automotive space. Adient's proprietary technologies extend into virtually every area of automotive seating solutions, including complete seating systems, frames, mechanisms, foam, head restraints, armrests and trim covers. Adient is an independent seat supplier with global scale and the capability to design, develop, engineer, manufacture, and deliver complete seat systems and components in every major automotive producing region in the world.

Basis of Presentation
The consolidated financial statements of Adient have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). During the second half of fiscal 2021 and continuing into the first half of fiscal 2022, Adient faced, along with the entire global automotive industry, widespread supply chain disruptions primarily related to semiconductor chip shortages. Although Adient’s seating products are not highly dependent directly on semiconductor chips, Adient is directly impacted by the lower production levels at OEM’s as a direct result of these supply chain disruptions. These disruptions have led to unplanned down time at Adient’s production facilities, often with very little warning, which creates operating inefficiencies and limits Adient’s ability to adequately mitigate such inefficiencies. Adient also continues to experience higher freight costs due to premiums associated with these supply chain disruptions. Further, the Russia/Ukraine conflict has created additional risks to the macroeconomic environment of the global automotive industry by restricting availabilities of certain key raw material components. Refer to Note 3, "Acquisitions and Divestitures," of the notes to the consolidated financial statements for additional information on the impacts from the Russia/Ukraine conflict.

The automotive industry has also experienced price increases for commodities, utilities and shipping costs. These cost increases may continue into the future as demand increases and supply may remain constrained, which has resulted in, and may continue to result in, increased costs for Adient that may not be, or may only be partially, offset. Adient is also closely monitoring labor availability and wage inflationary pressures, both internally and at key vendors, to assess any impact labor shortages and wage inflation might have on Adient’s ability to perform its obligations.

Additionally, the impact of COVID-19, and related variants and sub-variants, continues to be present throughout the world, including in all global and regional markets served by Adient. The elevated COVID-19 rates in China have led to widespread lockdowns during the second quarter of fiscal 2022, and are expected to continue throughout fiscal 2022, negatively impacting the automotive production levels in that region, along with creating further supply chain disruptions. Although vaccines have been introduced that are expected to have the result of reducing the effect of COVID-19 and COVID-19 started to wane in certain geographic areas, governmental authorities continue to implement numerous measures attempting to contain and mitigate the effects of COVID-19, including travel bans and restrictions, quarantines, social distancing orders, shelter in place orders and shutdowns of non-essential activities. Adient's manufacturing facilities are located in areas that continue to be affected by the pandemic. Adient continues to actively monitor the threat and impacts of COVID-19.

Principles of Consolidation
Adient consolidates its wholly-owned subsidiaries and those entities in which it has a controlling interest. Investments in partially-owned affiliates are accounted for by the equity method when Adient's interest exceeds 20% and does not have a controlling interest.
Consolidated VIEs
Based upon the criteria set forth in the Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC) 810, "Consolidation," Adient has determined that it was the primary beneficiary in two variable interest entities (VIEs) for the reporting periods ended March 31, 2022, and September 30, 2021, respectively, as Adient absorbs significant economics of the entities and has the power to direct the activities that are considered most significant to the entities.
The two VIEs manufacture seating products in North America for the automotive industry. Adient funds the entities' short-term liquidity needs through revolving credit facilities and has the power to direct the activities that are considered most significant to the entities through its key customer supply relationships.
Adient plc | Form 10-Q | 7


The carrying amounts and classification of assets (none of which is restricted) and liabilities included in Adient's consolidated statements of financial position for the consolidated VIEs are as follows:

(in millions)March 31,
2022
September 30,
2021
Current assets$213 $158 
Noncurrent assets101 88 
Total assets$314 $246 
Current liabilities$221 $143 
Noncurrent liabilities14 8 
Total liabilities$235 $151 

Earnings Per Share
The following table shows the computation of basic and diluted earnings (loss) per share:
Three Months Ended
March 31,
Six Months Ended
March 31,
(in millions, except per share data)2022202120222021
Numerator:
Net income (loss) attributable to Adient$(81)$69 $(135)$219 
Denominator:
Shares outstanding94.8 94.2 94.7 94.1 
Effect of dilutive securities 1.8  1.3 
Diluted shares94.8 96.0 94.7 95.4 
Earnings (loss) per share:
Basic$(0.85)$0.73 $(1.43)$2.33 
Diluted$(0.85)$0.72 $(1.43)$2.30 
The effect of common stock equivalents which would have been anti-dilutive was excluded from the calculation of diluted earnings per share for the three and six months ended March 31, 2021. Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share which for the three and six months ended March 31, 2022 is a result of being in a loss position.

New Accounting Pronouncements

Standards Adopted During Fiscal 2022

On October 1, 2021, Adient adopted Accounting Standards Codification (ASU) 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20). ASU 20218-14 eliminates, adds, and modifies certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance is to be applied on a retrospective basis. The adoption of this guidance on October 1, 2021 did not significantly impact Adient's consolidated financial statements for the six months ended March 31, 2022.

On October 1, 2021, Adient adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 modifies ASC 740, Income Taxes, by simplifying accounting for income taxes. As part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements, the FASB’s amendments may impact both interim and annual reporting periods. The adoption of this guidance on October 1, 2021 did not significantly impact Adient's consolidated financial statements for the six months ended March 31, 2022.
Adient plc | Form 10-Q | 8



Standards Effective After Fiscal 2022

Adient has considered the ASUs summarized below, effective after fiscal 2022, none of which are expected to significantly impact the consolidated financial statements:
Standard AdoptedDescriptionDate Effective
ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity by reducing the number of accounting models for convertible debt and convertible preferred stock.October 1, 2022
ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government AssistanceThe ASU requires annual disclosures of: i) information about the nature of government assistance transactions and the related accounting policy used to account for the transactions, ii) the balance sheet and income statement line items affected by the transactions, and the amounts for each financial statement line item, and iii) significant transaction terms and conditions.October 1, 2022

2. Revenue Recognition

Adient generates revenue through the sale of automotive seating solutions, including complete seating systems and the components of complete seating systems. Adient provides production and service parts to its customers under awarded multi-year programs. The duration of a program is generally consistent with the life cycle of a vehicle, however, the program can be canceled at any time without cause by the customer. Programs awarded to Adient to supply parts to its customers do not contain a firm commitment by the customer for volume or price and do not reach the level of a performance obligation until Adient receives either a purchase order and/or a materials release from the customer for a specific number of parts at a specified price, at which point an enforceable contract exists. Sales revenue is generally recognized at the point in time when parts are shipped and control has transferred to the customer, at which point an enforceable right to payment exists. Contracts may provide for annual price reductions over the production life of the awarded program, and prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors. The amount of revenue recognized reflects the consideration that Adient expects to be entitled to in exchange for such products based on purchase orders, annual price reductions and ongoing price adjustments (some of which are accounted for as variable consideration and subject to being constrained), net of the impact, if any, of consideration paid to the customer.

In a typical arrangement with the customer, purchase orders are issued for pre-production activities which consist of engineering, design and development, tooling and prototypes for the manufacture and delivery of component parts. Adient has concluded that these activities are not in the scope of ASC 606.

Adient has elected to continue to include shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in cost of sales. Taxes collected from customers are excluded from revenue and credited directly to obligations to the appropriate government agencies. Payment terms with customers are established based on customary industry and regional practices. Adient has evaluated the terms of its arrangements and determined that they do not contain significant financing components.

Contract assets primarily relate to the right to consideration for work completed, but not billed at the reporting date on contracts with customers. The contracts assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been satisfied and revenue has not been recognized. No significant contract assets or liabilities were identified at September 30, 2021 or at March 31, 2022. As described above, the issuance of a purchase order and/or a materials release by the customer represents the point at which an enforceable contract with the customer exists. Therefore, Adient has elected to apply the practical expedient in ASC 606, paragraph 606-10-50-14 and does not disclose information about the remaining performance obligations that have an original expected duration of one year or less. Refer to Note 15, "Segment Information," of the notes to consolidated financial statements for disaggregated revenue by geographical market.


Adient plc | Form 10-Q | 9


3. Acquisitions and Divestitures

2021 Yanfeng Transaction
On March 12, 2021, Adient, Yanfeng Automotive Trim Systems Company Ltd. (“Yanfeng”), Yanfeng Adient Seating Co., Ltd. (“YFAS”), a joint venture owned, directly or indirectly, by Yanfeng (50.01%) and Adient (49.99%), and KEIPER Seating Mechanisms Co., Ltd. (f/k/a Adient Yanfeng Seating Mechanisms Co., Ltd. (“AYM” or "KEIPER"), a joint venture owned, directly or indirectly, by Yanfeng (50%) and Adient (50%), entered into a Master Agreement (the “2021 Agreement”), pursuant to which the parties agreed to, among other things, the following transactions (collectively, the “2021 Yanfeng Transaction”). The 2021 Yanfeng Transaction closed on September 30, 2021 (“Closing Date”).

a.Adient transferred all of the issued and outstanding equity interest in YFAS held by Adient, which represents 49.99% of YFAS’s total issued and outstanding equity interest, to Yanfeng pursuant to the Equity Transfer Agreement, dated as of March 12, 2021, by and between Yanfeng and Adient, for CNY ¥8,064 million ($1,210 million), of which ¥3,446 million ($519 million) was paid by Yanfeng to Adient on the Closing Date, and ¥4,618 million ($691 million) was paid by Yanfeng to Adient in December 2021, and;

b.YFAS transferred all of the issued and outstanding equity interests in Yanfeng Adient Automotive Components Co., Ltd. ("CQADNT") and Adient (Langfang) Seating Co., Ltd. ("LFADNT") held directly or indirectly by YFAS to Adient for a price of ¥1,754 million ($271 million) (the “YFAS JVs Acquisition”). The YFAS JVs Acquisition was funded, in part, by annual cash dividends from YFAS and KEIPER, paid to shareholders of YFAS and KEIPER;

c.YFAS transferred all of the issued and outstanding equity interest in Yanfeng Adient Founder Motor Co., Ltd. (“YFM”) held, directly or indirectly, by YFAS, which represented 70% of YFM’s total issued and outstanding equity interest, to KEIPER for ¥71 million ($11 million) (the “YFM Sale”);

d.YFAS transferred all of the issued and outstanding equity interest in Nantong Yanfeng Adient Seating Trim Co., Ltd. (“YFAT”) held, directly or indirectly, by YFAS, which represented 75% of YFAT’s total issued and outstanding equity interest, to KEIPER for ¥113 million ($17 million) (the “YFAT Sale”);

e.Adient granted to Yanfeng a license of intellectual property for use on a non-exclusive and perpetual basis for a payment of ¥385 million ($59 million), and Yanfeng/YFAS granted to Adient a royalty-free, non-exclusive and perpetual intellectual property license of the Yanfeng/YFAS intellectual property; and

f.YFAS declared and distributed dividends in the amounts and at the times as set forth in the 2021 Agreement to its shareholders (proportionately to their ownership interest, namely 50.01% to Yanfeng and 49.99% to Adient) of approximately ¥4,168 million ($635 million) in the aggregate. YFAS paid an aggregate dividend of ¥2,809 million ($436 million) during the third quarter of fiscal 2021, and ¥1,359 million ($199 million) was distributed on the Closing Date.

In addition, on March 12, 2021, Adient, YFAS, Yanfeng and KEIPER, entered into an Ancillary Master Agreement (the “Ancillary Master Agreement”), pursuant to which the parties have agreed to, among other things, the following transactions (collectively, the “Ancillary Transactions”). The Ancillary Transactions were also completed on the Closing Date.

a.Adient and Yanfeng amended the KEIPER Equity Joint Venture Contract, dated as of January 31, 2020, as amended, and the Articles of Association of KEIPER, dated as of September 9, 2013, as amended, to, among other things, (i) provide that KEIPER would declare and pay certain annual dividends to KEIPER’s shareholders with respect to each of its 2021 to 2023 fiscal years and (ii) upon closing of the earlier of the YFAT Sales (as defined below) or YFM Sale, because of KEIPER’s ownership of YFAT and YFM, certain amendments relating thereto, including modifying the scope of KEIPER’s business to include the manufacture and sale of automotive seat trim products and micro-motors; and

b.KEIPER and Yanfeng and KEIPER and Adient each entered into a long-term supply agreement.

In conjunction with the 2021 Yanfeng Transaction, Adient entered into an agreement (the “Boxun Agreement”) with Chongqing Boxun Industrial Co., Ltd. (“Boxun”). Pursuant to such agreement, upon consummation of the YFAS JVs Acquisition, Adient provided Boxun with the right to sell and, if exercised, Adient agreed to purchase, all of the issued and outstanding equity interest in CQADNT held by Boxun, which represents 25% of CQADNT’s total issued and outstanding equity interest (the “Boxun Equity Purchase”). On October 29, 2021, Boxun exercised its right to sell its equity interest to
Adient plc | Form 10-Q | 10


Adient. In January 2022, Boxun and Adient closed the transaction. The total payment to Boxun from Adient was approximately $200 million, of which $15 million of historical dividends were paid in December 2021, and $185 million, including $32 million of historical dividends, was paid in the second quarter of fiscal 2022. At September 30, 2021, $194 million had been reflected as redeemable noncontrolling interest. With the acquisitions of Boxun’s 25% and YFAS’s 50% interest of CQADNT, Adient owns 100% of CQADNT effective January 2022.

In addition, in conjunction with the 2021 Yanfeng Transaction, Adient entered into agreements, whereby, Adient would: (i) transfer all of the issued and outstanding equity interest in YFAT held, directly or indirectly, by Adient, which represents 25% of YFAT’s total issued and outstanding equity interest, to KEIPER for ¥38 million ($6 million) (the “Adient YFAT Sale” and together with the YFAT Sale, the “YFAT Sales”); (ii) transfer all of the issued and outstanding equity interest in Guangzhou Dongfeng Adient Seating Co., Ltd. (“GZDFAS”) held by Adient, which represents 25% of GZDFAS’s total issued and outstanding equity interest, to YFAS for ¥371 million ($56 million) (the “GZDFAS Sale”) and (iii) transfer all of the issued and outstanding equity interest in Hefei Adient Yunhe Automotive Seating Co., Ltd. (“YHAS”) held by Adient, which represents 10% of YHAS’s total issued and outstanding equity interest, to YFAS for ¥13 million ($2 million) (the “YHAS Sale,” together with the Adient YFAT Sale and GZDFAS Sale, each an “Additional Equity Sale” and collectively, the “Additional Equity Sales”). The Additional Equity Sales were completed on the Closing Date.

As a result of the 2021 Agreement, Adient received $41 million in November 2021 representing the remaining balance of proceeds from the sale of its interest in Yanfeng Global Automotive Interior Systems Co. ("YFAI"), a joint venture previously owned, directly or indirectly, by Yanfeng (70%) and Adient (30%), which was part of the 2020 Yanfeng Transaction (as defined and described in Form 10-K for the fiscal year ended September 30, 2021).

Upon completion of the 2021 Yanfeng Transaction on September 30, 2021, Adient started consolidating CQADNT and LFADNT. The net purchase consideration of $271 million consisted of net cash consideration of $211 million, net of $60 million acquired. The acquisition was accounted for using the acquisition method, and the operating results and cash flows of CQADNT and LFADNT will be included in Adient's consolidated financial statements starting from October 1, 2021. The acquisitions are expected to provide substantial synergies through vertical integration, purchasing and logistics improvements. The acquisitions also provide for an immediate manufacturing presence in strategic locations in China.

Adient recorded a purchase price allocation for the assets acquired and liabilities assumed based on their estimated fair values as of the September 30, 2021 acquisition date. The preliminary purchase price adjustments and allocation is as follows:

Fair value allocation
(in millions)CQADNTLFADNT
Cash$55 $5 
Accounts receivable296 2 
Inventory37 5 
Property, plant and equipment86 8 
Other assets46 2 
Goodwill180 8 
Intangible assets234 6 
Accounts payable(252)(19)
Other liabilities(127)(4)
Subtotal555 13 
Less: Interest already owned103  
Less: Redeemable noncontrolling interest194  
Total purchase consideration258 13 
Less: cash acquired55 5 
Net cash paid$203 $8 

The values allocated to CQADNT and LFADNT’s intangible assets of $234 million and $6 million, respectively, primarily consisted of customer relationships and patented technologies which are being amortized on a straight line basis over estimated useful lives of 3 to 12 years. The assets were valued using a combination of an income approach and a relief from royalty
Adient plc | Form 10-Q | 11


approach. These values were considered level 3 measurements under the U.S. GAAP fair value hierarchy. Key assumptions used in the valuation of customer relationships included a rate of return of 13.5% and the life of the relationship of approximately 12 years. Key assumptions used in the valuation of patented technologies included a rate of return of 13.5% and the life of the technologies of approximately 10 years.

The allocation of the purchase price was based on the valuations performed to determine the fair value of the net assets as of the acquisition date. The amounts allocated to goodwill and intangible assets along with fair value adjustments on property, plant and equipment and inventory reflected preliminary valuations.

In April 2022, Adient entered into an agreement whereby Adient would purchase all of the issued and outstanding equity interest in YFAT held by KEIPER for ¥150 million ($24 million). Adient made an initial deposit of ¥37 million ($6 million) (reflected within other current assets as of March 31, 2022), and a second deposit of ¥37 million ($6 million) in April 2022, which represents 50% of the estimated purchase price. The transaction is subject to a public bidding process and other customary regulatory approvals, and is expected to be completed in the second half of calendar year 2022. The remaining 50% of the estimated purchase price will be paid at the time of completion of the transaction.

Also, Adient has entered into agreements, whereby Adient would transfer all of the issued and outstanding equity interests in two joint ventures in China held directly by Adient, each of which represents 25% of their total issued and outstanding equity interests, to Yanfeng for $3 million. As a result, Adient concluded that indicators of other-than-temporary impairment were present related to the investments in these joint ventures as of March 31, 2022, and recorded a non-cash impairment charge of $3 million. The transactions are expected to be completed during the second half of fiscal 2022.

SJA
On March 31, 2021, Adient sold its 50% equity interest in Shenyang Jinbei Adient Automotive Components Co., Ltd. ("SJA") to the joint venture partner for $58 million, which resulted in a $33 million one-time gain recognized during the second quarter of fiscal 2021. The receivable was recorded as part of other current assets on March 31, 2021, and the net proceeds of $53 million were received on April 1, 2021.

Russia/Ukraine conflict

Following Russia's invasion of Ukraine in February 2022, Adient has been considering withdrawing from the Russian market. After consideration of related sanctions, Adient recorded a charge of $3 million during the second quarter of fiscal 2022, which included a $2 million impairment of Adient's Russian entity and $1 million of allowance for doubtful accounts in EMEA. Adient's Russian operation, which primarily produces automotive seating trim products for the domestic market, recorded $7 million of net sales and de minimis amount of net income in fiscal 2021. Upon a final withdrawal from Russia, an additional charge of approximately $5 million is expected related to accumulated foreign currency translation losses that are reflected in accumulated other comprehensive income (loss) under shareholders' equity on Adient's consolidated statements of financial position as of March 31, 2022.

Assets held for sale

During the first quarter of fiscal 2022, Adient committed to sell certain assets in EMEA. As a result these assets were classified as assets held for sale and were required to be adjusted to the lower of fair value less cost to sell or carrying value. This resulted in an impairment charge of $7 million. The impairment was measured using third party sales pricing to determine fair values of the assets. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." During the second quarter of fiscal 2022, Adient collected the final portion of proceeds from the sale of certain assets in Turkey, which had been classified as assets held for sale during fiscal 2021. The finalization of the transaction resulted in a loss on sale of $2 million, recorded within selling, general and administrative costs on the consolidated statement of income (loss) in the second quarter of fiscal 2022.

During fiscal 2021, Adient committed to sell certain assets in France and Turkey. As a result, these assets were classified as assets held for sale (including an allocation of $11 million of goodwill) and were required to be adjusted to the lower of fair value less cost to sell or carrying value. This resulted in Adient recording an impairment charge of $9 million within restructuring and impairment costs on the consolidated statement of income (loss) related to the assets in France. The impairment was measured using third party sales pricing to determine fair values of the assets. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement." The sale of the assets in France was completed during the third quarter of fiscal 2021 for minimal proceeds while the sale of the assets in Turkey was completed in October 2021 for total proceeds of $46 million, of which $36 million was collected at closing, and $10 million was collected in the second quarter of fiscal 2022.
Adient plc | Form 10-Q | 12




4. Inventories

Inventories consisted of the following:

(in millions)March 31,
2022
September 30,
2021
Raw materials and supplies$786 $750 
Work-in-process25 29 
Finished goods187 197 
Inventories$998 $976 


5. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill are as follows:

(in millions)AmericasEMEAAsiaTotal
Balance at September 30, 2021$607 $354 $1,251 $2,212 
Currency translation and other4 (14)(4)(14)
Balance at March 31, 2022
$611 $340 $1,247 $2,198 

Refer to Note 15, "Segment Information," of the notes to consolidated financial statements for more information on Adient's reportable segments.

Adient's other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of:

 March 31, 2022September 30, 2021
(in millions)Gross
Carrying
Amount
Accumulated
Amortization
NetGross
Carrying
Amount
Accumulated
Amortization
Net
Intangible assets
Patented technology$88 $(24)$64 $86 $(19)$67 
Customer relationships654 (196)458 649 (178)471 
Trademarks21 (18)3 26 (21)5 
Miscellaneous24 (12)12 24 (12)12 
Total intangible assets$787 $(250)$537 $785 $(230)$555 

Amortization of other intangible assets for the six months ended March 31, 2022 and 2021 was $26 million and $19 million, respectively.

Refer to Note 15, "Segment Information," of the notes to consolidated financial statements for more information on Adient's reportable segments.


Adient plc | Form 10-Q | 13


6. Product Warranties

Adient offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that Adient replace defective products within a specified time period from the date of sale. Adient records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, Adient's warranty provisions are adjusted as necessary. Adient monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates. Adient's product warranty liability is recorded in the consolidated statements of financial position in other current liabilities.
The changes in Adient's total product warranty liability are as follows:
Six Months Ended
March 31,
(in millions)20222021
Balance at beginning of period$23 $24 
Accruals for warranties issued during the period5 4 
Changes in accruals related to pre-existing warranties (including changes in estimates)1 (1)
Settlements made (in cash or in kind) during the period(6)(4)
Balance at end of period$23 $23 


7. Leases

Adient's lease portfolio consists of operating leases for real estate including production facilities, warehouses and administrative offices, equipment such as forklifts and computer servers and laptops, and fleet vehicles.

The components of lease costs included in the consolidated statement of income (loss) for the three and six months ended March 31, 2022 and 2021 were as follows:

Three Months Ended
March 31,
Six Months Ended
March 31,
(in millions)2022202120222021
Operating lease cost$28 $32 $58 $62 
Short-term lease cost7 6 12 12 
Total lease cost$35 $38 $70 $74 

Operating lease right-of-use assets and lease liabilities included in the consolidated statement of financial position were as follows:

Adient plc | Form 10-Q | 14


(in millions)March 31,
2022
September 30,
2021
Operating leases:
Operating lease right-of-use assetsOther noncurrent assets$304$335
Operating lease liabilities - currentOther current liabilities$86$89
Operating lease liabilities - noncurrentOther noncurrent liabilities218246
$304$335
Weighted average remaining lease term:
Operating leases6 years6 years
Weighted average discount rate:
Operating leases5.4 %5.2 %

Maturities of operating lease liabilities and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year as of March 31, 2022 are as follows:

Operating leases
Fiscal years (in millions)March 31, 2022
2022 (excluding the six months ended March 31, 2022)
$72 
202384 
202463 
202545 
202630 
Thereafter80 
Total lease payments374 
Less: imputed interest(70)
Present value of lease liabilities$304 

Supplemental cash flow information related to leases is as follows:

Six Months Ended
March 31,
(in millions)20222021
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)$18 $69 
Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities$58 $65 


Adient plc | Form 10-Q | 15


8. Debt and Financing Arrangements

Debt consisted of the following:

(in millions)March 31,
2022
September 30,
2021
Long-term debt:
Term Loan B - LIBOR plus 3.25% due in 2028
$993 $998 
4.875% Notes due in 2026
795 795 
3.50% Notes due in 2024
918 1,161 
9.00% Notes due in 2025
92 600 
European Investment Bank Loan - EURIBOR plus 1.58% due in 2022
150 156 
Finance lease obligations1 1 
Less: debt issuance costs(22)(32)
Gross long-term debt2,927 3,679 
Less: current portion161 167 
Net long-term debt$2,766 $3,512 
Short-term debt:
Other bank borrowings$9 $17 
Total short-term debt$9 $17 

Adient US LLC ("Adient US"), a wholly owned subsidiary of Adient, together with certain of Adient's other subsidiaries, maintains an asset-based revolving credit facility (the “ABL Credit Facility”), which provides for a revolving line of credit up to $1,250 million, including a North American subfacility of up to $950 million and a European subfacility of up to $300 million, subject to borrowing base capacity. The ABL Credit Facility will mature on May 6, 2024, subject to a springing maturity date 91 days earlier if certain amounts remain outstanding at that time under the Term Loan B Agreement (defined below). Adient will pay a commitment fee of 0.25% to 0.375% on the unused portion of the commitments under the asset-based revolving credit facility based on average global availability. Letters of credit are limited to the lesser of (x) $150 million and (y) the aggregate unused amount of commitments under the ABL Credit Facility then in effect. Subject to certain conditions, the ABL Credit Facility may be expanded by up to $250 million in additional commitments. Loans under the ABL Credit Facility may be denominated, at the option of Adient, in U.S. dollars, Euros, Pounds Sterling or Swedish Kroner. The ABL Credit Agreement is secured on a first-priority lien on all accounts receivable, inventory and bank accounts (and funds on deposit therein) and a second-priority lien on all of the tangible and intangible assets of certain Adient subsidiaries. On November 24, 2021, Adient entered into an amendment to its ABL Credit Facility (the “ABL Amendment”) to amend certain terms and provisions, including to (i) change the interest rate benchmark rates applicable under the ABL Credit Facility for borrowings denominated in euro, Swedish krona and pounds sterling to EURIBOR, STIBOR, and SONIA, in each case subject to certain adjustments, and (ii) update the provisions in our ABL Credit Facility by which U.S. dollar LIBOR will eventually be replaced with SOFR or another interest rate benchmark, in each case, to reflect the most recent standards and practices used in the industry. Interest is payable on the ABL Credit Facility at a fluctuating rate of interest determined by reference to LIBOR, in the case of amounts outstanding in dollars, EURIBOR, in the case of amounts outstanding in euros, STIBOR, in the case of amounts outstanding in Swedish krona and SONIA, in the case of amounts outstanding in pounds sterling, in each case, plus an applicable margin of 1.50% to 2.00%. As of March 31, 2022, Adient had not drawn down on the ABL Credit Facility and had availability under this facility of $816 million (net of $53 million of letters of credit).

In addition, Adient US and Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintain a term loan credit agreement (the “Term Loan B Agreement”) that initially provided for a 5-year $800 million senior secured term loan facility that was fully drawn on closing. The Term Loan B Agreement amortizes in equal quarterly installments at a rate of 1.00% per annum of the original principal amount thereof, with the remaining balance originally due at final maturity on May 6, 2024. Interest on the Term Loan B Agreement accrues at the Eurodollar rate plus an applicable margin originally equal to 4.25% (with one 0.25% step down based on achievement of a specific secured net leverage level starting with the fiscal quarter ending December 31, 2019). The Term Loan B Agreement also permits Adient to incur incremental term loans in an aggregate amount not to exceed the greater of $750 million and an unlimited amount subject to a pro forma first lien secured net leverage ratio of not greater than 1.75 to 1.00 and certain other conditions. In April 2021, Adient amended the Term Loan B Agreement
Adient plc | Form 10-Q | 16


("Amended Agreement") which, among other changes (i) extended the maturity date for loans outstanding to April 8, 2028, (ii) reduced the interest rate margin applicable thereunder by 0.75% to 3.50%, in the case of Eurodollar Rate loans, and 2.50% (in the case of Base Rate loans) (in each case, with one 0.25% step down based on achievement of a specified first lien secured net leverage level starting with the fiscal quarter ending December 31, 2021) and (iii) made certain other negative covenant and mandatory prepayment changes in connection therewith. The amendment also established incremental term loans in an aggregate principal amount of $214 million resulting in total loans outstanding under the Amended Agreement of $1.0 billion. Adient paid $7 million related to the Amended Agreement and wrote off $8 million of previously deferred financing costs as a result of the debt extinguishment during the third quarter of fiscal 2021.

Adient US was also a party to an indenture relating to the issuance of $