Adient plc

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 30, 2024
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
Adient plc
(exact name of Registrant as specified in its charter)
Ireland
98-1328821
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
3 Dublin Landings, 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 class
Trading Symbol
Name of exchange on which registered
Ordinary Shares, par value $0.001
ADNT
New York Stock Exchange
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  ☑  No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐  No  ☑
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.:
Large accelerated filer
☑
Accelerated filer
☐
Non-accelerated filer  
☐
Smaller 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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its
audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by
any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes  ☐  No  ☑
The aggregate market value of the voting and non-voting stock held by non-affiliates of the Registrant, as of March 31, 2024, the last business day of the
Registrant’s most recently completed second fiscal quarter, was approximately $3.0  billion. At September 30, 2024, 84,866,763 ordinary shares were
outstanding.
Documents Incorporated by Reference
Portions of the Registrant's definitive proxy statement relating to its 2025 annual general meeting of shareholders to be held on March 11, 2025 (the "2025
Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2025 Proxy Statement will be filed
with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
Adient plc | Form 10-K | 2

Adient plc
Form 10-K
For the Fiscal Year Ended September 30, 2024
TABLE OF CONTENTS
ITEM
PAGE
PART I
ITEM 1
Business
4
ITEM 1A
Risk Factors
13
ITEM 1B
Unresolved Staff Comments
26
ITEM 1C
Cybersecurity
26
ITEM 2
Properties
28
ITEM 3
Legal Proceedings
28
ITEM 4
Mine Safety Disclosures
28
PART II
ITEM 5
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
29
ITEM 6
[Reserved]
30
ITEM 7
Management's Discussion and Analysis of Financial Condition and Results of Operations
30
ITEM 7A
Quantitative and Qualitative Disclosures About Market Risk
50
ITEM 8
Financial Statements and Supplementary Data
52
ITEM 9
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
100
ITEM 9A
Controls and Procedures
100
ITEM 9B
Other Information
101
ITEM 9C
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
101
PART III
ITEM 10
Directors, Executive Officers and Corporate Governance
102
ITEM 11
Executive Compensation
102
ITEM 12
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
102
ITEM 13
Certain Relationships and Related Transactions, and Director Independence
102
ITEM 14
Principal Accounting Fees and Services
102
PART IV
ITEM 15
Exhibits and Financial Statement Schedules
103
ITEM 16
Form 10-K Summary
109
Signatures
110
Adient plc | Form 10-K | 3

PART I
Item 1. Business
Adient plc (“Adient”) is a global leader in the automotive seating supply industry with leading market positions in the Americas, Europe and China and
maintains longstanding relationships with the largest global automotive original equipment manufacturers (“OEMs”). 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 a global seat supplier with the capability to design, develop, engineer, manufacture, and deliver complete seat systems and components in
every major automotive producing region in the world.
Adient designs, manufactures and markets a full range of seating systems and components for passenger cars, commercial vehicles and light trucks, including
vans, pick-up trucks and sport/crossover utility vehicles. Adient operates more than 200 wholly- and majority-owned manufacturing or assembly facilities, with
operations in 29 countries. Additionally, Adient has partially-owned affiliates in China, Asia, Europe and North America. Through its global footprint and
vertical integration, Adient leverages its capabilities to drive growth in the automotive seating industry.
Adient's business model is focused on developing and maintaining long-term customer relationships, which allows Adient to successfully grow with leading
global OEMs. Adient and its engineers work closely with customers as vehicle platforms are developed, which results in close ties with key decision makers at
OEM customers.
Business Organization and Strategy
Global Manufacturing Footprint Adient is a global leader in automotive seating. With more than 70,000 employees operating in more than 200 manufacturing
and assembly plants in 29 countries worldwide, Adient produces and delivers automotive seating for all vehicle classes and all major OEMs. From complete
seating systems to individual components, Adient’s manufacturing capabilities span every aspect of the automotive seat-making process. Integrated, in-house
skills allows Adient to take products from research and design all the way to engineering and manufacturing and into millions of vehicles every year.
Operational Efficiencies Adient intends to maintain high capacity utilization and increase its efficiency through continued use of standardized manufacturing
processes, which represent a core competency. These standardized manufacturing processes allow Adient to deliver high quality levels and minimize waste.
Adient achieves scale advantages through a global manufacturing footprint and an integrated supply chain. Adient also creates efficiencies and optimizes
inventory, reduces freight and direct labor costs through its integrated modular assembly process. Adient fosters an environment of continuous improvement
and identifies best business practices through the analysis of process and cost metrics, which are then shared globally throughout Adient's manufacturing
network.
To ensure appropriate service levels, minimal inventory and optimal factory utilization, Adient employs a Sales & Operational Planning, or S&OP, process. A
well-executed S&OP process provides two strategic advantages: focused customer service and on-time delivery which result in both customer retention and the
opportunity for market share gain.
Investing in Technology Adient continues to invest in technology and innovation by utilizing automation in metals, foam, trim and complete seat operations as
well as expanding the use of artificial intelligence (“AI”). AI technology is being pursued to reduce direct labor costs, improve accuracy and to ensure
repeatable and reproducible results.
Adient plc | Form 10-K | 4

Longstanding Customer Relationships with Leading Global OEMs Adient works with OEMs  to develop complete seating solutions to meet consumer
expectations for performance, safety and comfort. Adient does business with all major global OEM customers, and in many cases, works closely with those
customers to develop a seating solution integrated into the overall vehicle appearance and architecture.
Through dedicated customer teams, Adient maintains close relationships with its global OEM customers. These relationships enable Adient to clearly
understand its customers' needs so that it is positioned to meet its customers' requirements. Adient's customer teams also lead the new business acquisition
process, which ensures alignment with Adient's product, process and manufacturing strategies.
Product Innovation and Process Leadership Adient has a strong record for developing winning product and process technologies over many years, which has
created a competitive advantage for Adient and its customers. Management expects to increase investment in innovation.
Adient utilizes a global Core Product Portfolio, or CPP, strategy for part and design reuse in all of its product applications. Adient intends to continue investing
in its CPP to sustain and expand its market success and to leverage its existing modular and scalable systems and interchangeable components. Through the
CPP strategy, Adient provides high quality products for its customers with market competitive cost and mass (low weight to improve fuel economy) while
meeting their performance requirements. Adient continues to use its CPP to advance Adient's lean manufacturing initiatives by providing standard, flexible
processes that reduce complexity, inventory and floor space. This will yield reductions in development time, product cost and investment.
Global Development Network Adient participates in innovating and developing key competitive differentiators in the automotive seating business. In the
development process, key downstream elements of the product are locked in, including material costs, plant conversion costs, quality characteristics and certain
technical requirements. Adient uses a common product development process globally that ensures that these elements are correct at the outset of the
development process, reflects the best practices of Adient's operations worldwide and meets the expectations of Adient's diverse customer base. Its product
launch system is customizable and scalable based on customer and product requirements.
Adient's worldwide engineering network includes ten core development centers. These development centers utilize a globally consistent approach to the
process for developing seating products. By leveraging a network of subject matter technical experts, Adient efficiently implements best practices and improves
product cost and quality. Adient's product development practices also entail leveraging low cost country development centers in India, China, Czech Republic
and Slovakia.
Development Centers
Plymouth (USA)
Trencin (Slovakia)
Burscheid (Germany)
Yokohama (Japan)
Solingen (Germany)
Chongqing (China)
Kaiserslautern (Germany)
Ceska Lipa (Czech Republic)
Ansan (South Korea)
Pune (India)
Leadership Position in China Adient is a leading supplier of "just-in-time" seating in China. It operates through its wholly owned entities and 6 joint ventures
(nonconsolidated and consolidated) with 37 manufacturing locations in 22 cities, which are supported by additional technical centers. Adient's strong position
with European and American automakers is complemented by partnerships with all major auto groups in China, which has resulted in Adient's broad market
penetration relative to seating competitors and market leadership in the industry's largest market. Adient leverages its operating expertise and innovation
capabilities developed worldwide to further support its growth in China.
Platform for Global Growth Adient's current global platform creates multiple opportunities for growth, such as:
• Market share expansion in seating and seating components. Adient has relationships with global OEM customers. These relationships, combined with
Adient's product offerings, enhance Adient's ability to expand its business with regional customers who are growing and expanding globally and also
with new entrants to the automotive market.
• Regional growth opportunities. Adient is able to leverage its position as the market leader in Europe, North America and China to grow in other markets,
such as Southeast Asia.
Adient plc | Form 10-K | 5

• Vertical integration. Adient's operations provide opportunities for continued vertical integration in areas that could enhance Adient's capabilities, expand
profit margins and grow revenues with customers who employ component sourcing strategies.
Product/Systems
Adient designs and manufactures a full range of seating systems and components for passenger cars, commercial vehicles and light trucks, including vans,
pick-up trucks and sport/crossover utility vehicles. Adient's technologies extend into virtually every area of automotive seating solutions including complete
seating systems, frames, mechanisms, foam, head restraints, armrests and trim covers.
Customers
Adient is a supplier to all of the global OEMs and has longstanding relationships with premier automotive manufacturers, including BMW, Mercedes-Benz
Group, Ford Motor Company, General Motors Company, Honda Motor Company, Hyundai Motor Company, Jaguar Land Rover, Kia Corporation, Mazda
Motor Corporation, Mitsubishi Motor Corporation, Nissan Motor Corporation, Renault Group, Stellantis N.V., Suzuki Motor Corporation, Toyota Motor
Corporation, Volkswagen Group and Volvo Car Group. Adient also supplies most of the growing regional OEMs such as Beijing Automotive Group Co., Ltd.,
Changan Automobile (Group) Co., Ltd., FAW Group Corporation, Proton Holdings Berhad, Ashok Leyland, Tata Motors Limited and Zhejiang Geely Holding
Group Co., Ltd. and newer auto manufacturers such as NIO, Xpeng Motors, BYD Company Ltd. and Xiaomi Motors. Additionally, Adient has 6 joint venture
partnerships with key OEMs, including Guangzhou Automobile Group Co., Ltd., Beijing Automobile Group Co., Ltd. and FAW Group Corporation. Further
details regarding Adient's customers is provided in Part II, Item 8 of this Form 10-K in Note 1, "Organization and Summary of Significant Accounting
Policies," of the notes to consolidated financial statements.
Industry
The Automotive Seating industry provides OEMs with complete seats on a "just-in-time" or "in-sequence" basis. Seats are assembled to specific order and
delivered on a predetermined schedule directly to an automotive assembly line. The components for these complete seat assemblies such as seating foam, metal
structures, fabrics, seat covers and seat mechanisms are shipped to Adient or competitor seating assembly plants. Adient is a global leader in complete seat
assembly and one of the largest in all major seating components including seating foam, metal structures, seat covers and seat mechanisms.
Demand for automotive parts in the OEM market is generally a function of the number of new vehicles produced, which is primarily driven by macro-
economic factors such as credit availability, interest rates, fuel prices, consumer confidence, employment and other trends. Although OEM demand is tied to
actual vehicle production, participants in the automotive supplier industry also have the opportunity to grow through increasing product content per vehicle by
further penetrating business with existing customers and in existing markets, gaining new customers and increasing their presence in global markets. Adient
believes that, as a company with a global presence and advanced technology, engineering, manufacturing and customer support capabilities, it is well
positioned to benefit from these opportunities.
Sourcing Patterns by OEMs Most OEMs have adopted global vehicle platforms to increase standardization, reduce per unit cost and increase capital efficiency
and profitability. In seating, three sourcing patterns exist:
1.    Core seat structures: By developing common front seat frames and mechanisms across multiple vehicle platforms, OEMs are reducing costs.
2.    Component sourcing: Several OEMs have shifted from sourcing a complete seating system to a components approach where the OEM sources each of
the different components of the seat and seating assembly as separate business awards.
3.    Engineering "in-sourcing": Some OEMs are conducting the design and engineering internally and are selecting suppliers that have the capability to
manufacture products on a worldwide basis and adapt to regional variations.
As a supplier with global scale and strong design, engineering and lean manufacturing capabilities in both complete seat systems and components, Adient is
well positioned to accommodate each of these three sourcing patterns.
Adient plc | Form 10-K | 6

Shorter Product Development Cycles As a result of new safety and environmental regulations, as well as a trend of more rapid customer preference changes,
OEMs are requiring suppliers to respond faster with new designs and product innovations. Although these trends are more significant in mature markets,
emerging markets are moving rapidly towards the regulatory standards and consumer preferences of the more mature markets. Suppliers with strong
technologies, robust global engineering and development capabilities will be best positioned to meet OEM demands for rapid innovation.
Electric Vehicles Electric vehicles (“EVs”) continue to be a focus in the global automotive industry driven by a variety of product offerings from legacy
manufacturers and from new entrants. The rollout of EVs platforms vary across the regions with factors such as pricing, affordability, government incentives,
infrastructure and overall consumer acceptance influencing the pace of adoption. While seating systems are not largely impacted by the shift to EVs, key
attributes of seat design are evolving as the market pivots toward EVs. This movement provides Adient with unique opportunities to provide value added
solutions through Adient’s Evolution of Seating Systems Sustainability (“ES ”) and to capture market share through new entrants based on Adient’s existing
leading market position.
Advanced Driver Assist Systems (“ADAS”) and Automated Driving Systems (“ADS”) As the global automotive industry continues to incorporate ADAS/ADS
into its vehicles and as alternative usage models evolve, such as car sharing and urban mobility, Adient is poised to capitalize on greater seating content that
may accompany these new innovations. Adient has developed an interiors concept for autonomous driving which addresses major seating and other interior
trends that are expected to drive the automotive industry of the future. Adient will continue to partner with OEMs and other customers in the development of
ADAS and ADS concepts.
Competition
Adient faces competition from other automotive suppliers and, with respect to certain products, from the automobile OEMs who produce or have the capability
to produce certain products the business supplies. The automotive supply industry competes on the basis of technology, quality, reliability of supply and price.
Design, engineering and product planning are also important factors. The competitive landscape for seating and components can be categorized into three
segments: (1) traditional seating suppliers, (2) component specialists and (3) competitors who are partnered with an OEM through ownership or interlocking
business relationships. Independent suppliers that represent the principal competitors of Adient include Lear Corporation, Toyota Boshoku Corporation, Forvia
SE, Magna International Inc. and Yanfeng Automotive Systems Co., Ltd. Adient's deep vertical integration, global footprint and broad product offering make it
well positioned to compete against the traditional global Tier-1 suppliers and component specialists.
Raw Materials
Raw materials used by Adient in connection with its operations include steel, aluminum, polyurethane chemicals, fabrics, leather, vinyl and polypropylene.
Continuing into fiscal 2024, the automotive industry has experienced volatility in commodity prices. This price volatility may continue into the future as
demand increases and/or supply is constrained. During fiscal 2025, commodity prices and availability could fluctuate throughout the year and significantly
affect Adient's results of operations. Refer to the Sustainability heading in this Item 1, “Business” for information on sustainability actions Adient is taking with
its products and related materials, and refer to Item 1A, “Risk Factors” of this Form 10-K for additional information on risks associated with the supply of
Adient’s raw materials.
Intellectual Property
Generally, Adient seeks statutory protection for strategic or financially important intellectual property developed in connection with its business. Certain
intellectual property, where appropriate, is protected by contracts, licenses, confidentiality or other agreements.
Adient owns numerous U.S. and non-U.S. patents (and their respective counterparts), the more important of which cover those technologies and inventions
embodied in current products or which are used in the manufacture of those products. While Adient believes patents are important to its business operations
and in the aggregate constitute a valuable asset, no single patent, or group of patents, is critical to the success of the business. Adient, from time to time, grants
licenses under its patents and technology and receives licenses under patents and technology of others.
Adient's trademarks are registered or otherwise legally protected in the United States and many non-U.S. countries where products and services of Adient are
sold.
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Adient plc | Form 10-K | 7

Most works of authorship produced for Adient, such as computer programs, catalogs and sales literature, carry appropriate notices indicating Adient's claim to
copyright protection under U.S. law and appropriate international treaties.
Regulation
Adient operates in a constantly evolving global regulatory environment and is subject to numerous and varying regulatory requirements for its product
performance and material content. Adient's practice is to identify potential regulatory and quality risks early in the design and development process and
proactively manage them throughout the product lifecycle through the use of routine assessments, protocols, standards, performance measures and audits. New
regulations and changes to existing regulations are managed in collaboration with the OEM customers and implemented through Adient's global systems and
procedures designed to ensure compliance with existing laws and regulations. Adient demonstrates material content compliance through the International
Material Data System (“IMDS”) which is the automotive industry material data system. In the IMDS, all materials used for automobile manufacturing are
archived and maintained, in order to meet the obligations placed on the automobile manufacturers and thus on their suppliers by national and international
standards, laws and regulations.
Adient works collaboratively with a number of stakeholder groups including government agencies (e.g., National Highway Traffic Safety Administration), its
customers and its suppliers to proactively engage in federal, state and international public policy processes.
Legal Matters
Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability,
environmental, safety and health, intellectual property, employment, commercial and contractual matters, and various other matters. Although the outcome of
such lawsuits, claims and proceedings cannot be predicted with certainty and some may be disposed of unfavorably to Adient, it is management's opinion that
none of these will have a material adverse effect on Adient's financial position, results of operations or cash flows. Costs related to such matters were not
material to the periods presented. Further details regarding Adient's commitments and contingencies is provided in Part II, Item 8 of this Form 10-K in Note 19,
"Commitments and Contingencies," of the notes to consolidated financial statements.
Sustainability
Adient recognizes robust, responsible and sustainable policies and practices are essential to the long-term success of its business and the well-being of its
stakeholders, including investors, employees, suppliers, customers and communities. Adient prioritizes environmental stewardship by integrating sustainability
principles into product development initiatives, manufacturing processes, procurement practices, corporate governance activities and other key business areas.
The Board of Directors and senior managers ensures that Adient operates ethically and in accordance with applicable laws and regulations, and, as appropriate,
they oversee and implement sustainability policies and strategies with input from a cross-functional team of subject matter experts across the organization.
Adient regularly communicates its targets and actions related to sustainability to stakeholders through SEC filings, media releases, adient.com website,
quarterly earnings reports and the annual corporate sustainability report.
Production Processes
Adient remains committed to improving sustainability in its global operations and utilizing standardized processes to reduce energy consumption, conserve
water and generate less waste and emissions at facilities globally. Adient set a goal of reducing its scope 1 and 2 greenhouse gas emissions 75% by 2030 (with
2019 as the base year), and continues to make progress toward that goal. In 2023, Adient expanded its goal with a longer term target of achieving carbon
neutrality at its manufacturing sites for scope 1 and 2 greenhouse gas emissions by 2040. Some fiscal year 2024 examples of how Adient is reducing emissions
and improving sustainability in its operations include:
• Identifying and repairing air leaks in pneumatic plant assembly lines.
• Recovering waste heat from air compressors and using it to help warm buildings.
• Installing wireless communication modules to automatically shut down fans when not needed.
• Optimizing how foam mold temperature machines are connected in parallel to ensure only heating the necessary number of machines.
• Optimizing packaging and delivery routes to reduce waste and fuel usage.
• Replacing liquefied petroleum gas (“LPG”) and diesel forklifts with electric forklifts at the end of their life cycle.
Adient plc | Form 10-K | 8

In addition, Adient has set a goal to attribute 100% of the electricity consumed at its sites worldwide to renewable sources by 2035. Several of Adient’s sites
already generate renewable electricity on-site via solar panel installations, and more than 60 Adient sites now consume electricity from a renewable source.
Products
Sustainability has been an inherent part of product development and innovation at Adient for more than three decades, and customers’ sustainability targets are
closely tracked to ensure its efforts align with the needs and goals of its customers. More recently, vehicle electrification and a general move toward
increasingly efficient transportation have emphasized the need for automotive seating products that are lighter, slimmer and made of more environmentally
friendly materials than traditional seating products. To help meet this need, Adient has developed products such as the Soft Back Panel and Soft Side Valance
components, which integrate up to 70% recycled polyethylene terephthalate (“PET”) while improving knee clearance and reducing the weight of each seat by
as much as 2 kg. Adient has also developed an innovative, EV-ready concept seat - the Pure Essential - that combines a high degree of comfort with a sleek
appearance while reducing cost, complexity, weight and the seat’s overall carbon footprint. The Pure Essential seat promotes product circularity by using just
two primary eco-friendly material types: green steel for the seat structure and recyclable polyester for comfort features and trim covers. Through Adient’s ES
(Evolution of Seating Systems Sustainability) approach to product design, Adient is continuously identifying and integrating materials and manufacturing
methods that minimize environmental impact and promote a circular economy.
Adient also recognizes the importance of its supply chain’s environmental risks and impacts and is working with its suppliers to reduce scope 3 (value chain)
emissions 35% by 2030 (with 2019 as the base year). In fiscal year 2024, Adient continued to expand the use of its proprietary Product Carbon Footprint Tool -
data-based software that calculates the carbon footprint of a specific product based on its bill of materials - impacting designer, engineer and customer
decisions and supporting its scope 3 emissions-reduction goal. As noted in Adient’s recently updated Deforestation Commitment and natural resources
webpage, Adient is making progress on its commitments in procuring forest risk commodities from more sustainable sources to reduce the impact on
deforestation and protect natural habitats globally.
People
Adient continues to work to protect the human rights and well-being of its employees, suppliers, customers and communities in which Adient operates globally
and released an updated Human Rights Policy Statement in 2024. Adient updated its Ethics Policy in 2023 to address evolving laws and regulations, including
those regarding sustainability, and in fiscal year 2024, 99% of Adient’s salaried workforce completed Adient’s annual Ethics Policy certification. Adient also
established in 2024 a new global Center of Excellence (“COE”) centrally addressing global supplier compliance and risk management; this COE is dedicated to
continuously improving Adient’s processes, procedures and systems for vetting and performing supplier due diligence. Additionally, Adient is proud to support
women-, minority- and veteran-owned businesses by spending more than $1 billion with diverse suppliers every year.
Human Capital Resources
Adient's ability to sustain and grow its business requires it to hire, retain and develop a highly skilled and diverse workforce. Adient values character and
integrity as much as qualifications and fosters an empowerment culture where employees have ownership in business outcomes. The highest levels of Adient’s
management drive these practices with the alignment and support of all levels within the organization. The Executive Vice President, Chief Legal and Human
Resources Officer, and Corporate Secretary, reporting directly to the Chief Executive Officer (“CEO”), oversees Adient’s global talent processes to attract,
develop and retain the most valuable asset - its employees. Adient has more than 70,000 employees worldwide who represent a wide variety of backgrounds.
Adient’s workforce composition (including employees at consolidated joint ventures), as of September 30, 2024, consists of approximately:
• 46% work in the Americas, 41% work in EMEA and 13% work in Asia
• 41% of the global workforce is female
• 52% of employees in the U.S. have identified themselves as an ethnic minority
Adient ensures its people are engaged and working collaboratively to achieve company goals through positive employee relations activities that focus on
supporting employees and their families. Adient also provides and encourages many forms of two-way communication such as town hall meetings, engagement
surveys, open-door policies and an ethics Integrity Helpline so that employees can hear directly from Adient leadership and have the opportunity to ask
questions, make suggestions, raise concerns, and provide input. Because the attraction, development and retention of the employee base is significant to its
business strategy, executive management provides frequent updates on these metrics to the Board of Directors.
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Adient plc | Form 10-K | 9

Health and Safety
Adient is committed to protecting the safety and well-being of colleagues, customers, suppliers and people using its premises by providing and maintaining a
safe working environment that protects both physical and mental well-being. Adient requires protective equipment, enforces comprehensive safety policies and
procedures, and encourages employees and leaders to look regularly for ways to improve workplace safety. Adient has implemented and maintains a health and
safety management system that is certified to the ISO 45001 Occupational Health and Safety standard. Globally, 100% of Adient’s facilities are internally
audited and compliant, and 100% are also third-party audited and certified. Adient employees work together across the globe, sharing best practice ideas,
procedures, and information regarding accidents and injuries. At Adient, every new machine, operation, building or workstation change requires a safety risk
assessment. When Adient’s employees come to work, they can know that where they work has undergone an extensive review of associated risks of injury or
illness and that those risks are eliminated and/or minimized through robust controls. Adient provides regular updates on health and safety to its Board of
Directors.
Diversity and Inclusion
Adient strives to build a culture of diversity and inclusion through purchasing, human resource practices and policies and strives to eliminate discrimination
and harassment in all its forms, including but not limited to discrimination against women, minorities and other protected groups. Adient President and CEO
Jerome Dorlack signed the "CEO Action for Diversity & Inclusion" pledge promulgated by the CEO Action for Diversity & Inclusion initiative, the largest
CEO-driven business commitment to advance diversity and inclusion in the workplace. In addition, Adient is a member of the Center for Automotive Diversity,
Inclusion and Advancement (“CADIA”). In fiscal year 2024, Adient updated its Human Rights Policy Statement; this document — as well as Adient’s
Commitment to Diversity, Equity and Inclusion document — emphasize Adient’s commitment to protecting the safety, well-being and human rights of its
people while driving a diverse and inclusive work culture. Guided by its diversity and inclusion vision and mission, Adient developed global focus areas,
including developing, engaging, and attracting diverse talent at all levels of the organization, including the leadership level, over the next three years, ensuring
there is equity in people and pay practices, and continuing to develop and refine our people metrics. Adient provides updates to the Board of Directors on
diversity initiatives and shares information on initiatives and metrics in its annual sustainability report.
Since success in this area requires listening to diverse voices, Adient established diversity and inclusion councils in each of its three business regions: 1) the
Americas, which is inclusive of North America and South America; 2) Europe, the Middle East and Africa (“EMEA”) and 3) Asia Pacific/China (“Asia”).
These councils drive strategic and tactical actions in the areas of talent acquisition and retention, communications and employee feedback, training and
education, metrics and key performance indicators, and Adient’s diverse and employee-led business resource groups (“BRGs”). While the three councils
primarily work within their regions, they also communicate and collaborate across regions to ensure alignment and progress toward enterprise-wide diversity
and inclusion goals. Additionally, Adient has periodic global online training for all salaried employees focused on diversity and inclusion. In addition to
frequent workshops and panel discussions, in fiscal year 2024 Adient launched a four-part manager training series facilitated by CADIA.
In 2024, Adient employees launched one new BRG in the Americas region, the Mission*Integrity*Leadership BRG, as well as one new affinity group, the
Technology Professionals Society. These two groups join Adient’s five other Americas BRGs: Hispanic Origins • Latino Ancestry BRG, African Ancestry
BRG, South Asian Community BRG, True Colors Network, and Women’s Resource Network. Adient continues to develop and refine its initiatives to achieve
its diversity and inclusion vision of being a premier employer that champions an inclusive and equitable work culture enriched by diversity, where all
employees are valued and respected.
Succession and Talent Development
Adient believes that attracting, developing, motivating and retaining employees is key to sustainable and profitable growth. Adient understands that, like
customers, employees and potential employees have choices of where to work, and Adient must compete for the best talent. Adient supports employee
development in multiple ways. Adient has a global performance management process through which employees provide a self-assessment and managers
provide evaluation and feedback on performance. This process informs employee development goals.
Adient has a number of global and regional development programs, growing employees at multiple stages in their career. Through these programs, Adient is
investing in the long-term success of employees, helping them develop skills and leadership acumen based on current needs and in anticipation of future needs.
Adient makes a substantial investment in employee development through its partnership with the University of Michigan’s Ross School of Business. Through
this partnership,
Adient plc | Form 10-K | 10

Adient offers two programs: Adient Accelerate, a leadership development program for director-level employees that is now in its fourth year, and Adient
Leadership and Performance Skills (“ALPS”), a new program in fiscal year 2024. The ALPS program is targeted to providing mid-level managers the
leadership skills and competency to address Adient’s current and future challenges.
Adient's Leadership Talent Review (“LTR”) is its annual process for identifying and evaluating talent for the purposes of aligning individual aspirations and
development plans with the organization's needs and building a diverse pipeline of leaders to mitigate leadership vacancy risk. LTR is designed to be an
inclusive process that promotes visibility of talent, increases the validity of succession plans and ensures development efforts are applied efficiently. Talent
potential assessments and succession plans are calibrated with broader groups of leaders to drive consistency, awareness and alignment on decisions and
development actions. Adient's executive leadership provides annual updates on succession and talent development to the Board of Directors.
Seasonal Factors
Adient's principal operations are directly related to the automotive industry. Consequently, Adient may experience seasonal fluctuations to the extent
automotive vehicle production slows, such as in the summer months when many customer plants close for model year changeovers and in December when
many customer plants close for the holidays.
Available Information
Adient's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to reports filed pursuant to Sections
13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are filed with the Securities and Exchange Commission (the
“SEC”). Adient is subject to the informational requirements of the Exchange Act and files or furnishes reports, proxy statements and other information with the
SEC. Such reports and other information filed by Adient with the SEC are available free of charge on Adient's website at www.adient.com when such reports
are available on the SEC's website. The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding
issuers that file electronically with the SEC at www.sec.gov. The contents of these websites are not incorporated into this filing. Further, Adient's references to
website URLs are intended to be inactive textual references only.
Information about Adient’s Executive Officers
The following table sets forth certain information with respect to Adient's executive officers as of the date of this filing:
Name
Age
Position(s) Held
Year Appointed to Present
Position
Michel P. Berthelin
54
Executive Vice President, EMEA
2019
James Conklin
52
Executive Vice President, Americas
2022
Jerome J. Dorlack
44
President and Chief Executive Officer
2024
James J. Huang
63
Executive Vice President, APAC
2019
Stephanie S. Marianos
56
Executive Vice President, Global IT & Business Services and Sustainability
2024
Mark A. Oswald
58
Executive Vice President and Chief Financial Officer
2024
Gregory S. Smith
56
Senior Vice President and Chief Accounting Officer
2019
Heather M. Tiltmann
52
Executive Vice President, Chief Legal and Human Resources Officer, and
Corporate Secretary
2021
Michel P. Berthelin. Mr. Berthelin is the Executive Vice President, EMEA of Adient. Mr. Berthelin was the Vice President, EMEA of Delphi Technologies
during 2018. He served as the Global Steering Vice President of ZF Friedrichshafen AG from 2016 to 2018 and the Vice President, North America-Braking of
ZF Friedrichshafen AG during 2015. He was also Vice President, Europe-Braking for TRW Automotive Holdings Corp. from 2012 to 2015.
James Conklin. Mr. Conklin is the Executive Vice President, Americas of Adient. Mr. Conklin served as Adient’s Vice President, Americas Operations from
2016 to 2022, as well as General Manager of Adient’s Seat Structures and Mechanisms business from 2018 to 2020. Prior to that, he had various roles of
increasing responsibility with Johnson Controls, Inc.,
Adient plc | Form 10-K | 11

including Vice President of Operations and Executive Director, Continuous Improvement and Best Business Practices, as well as leadership positions within
Advanced Manufacturing, Lean Manufacturing, Operations and Quality.
Jerome J. Dorlack. Mr. Dorlack is the President and Chief Executive Officer and a Director of Adient. Mr. Dorlack served as Executive Vice President and
Chief Financial Officer of Adient from 2022 to 2023, Executive Vice President, Americas of Adient from 2019 to 2022 and Vice President and Chief
Purchasing Officer of Adient from 2018 to 2019. He also served as Senior Vice President and President, Electrical Distribution System and President, South
America of Aptiv plc from 2017 to 2018, and Vice President, Powertrain Systems and General Manager, Global Powertrain Products of Delphi Automotive plc
from 2016 to 2017. Prior to that, Mr. Dorlack served as Executive Vice President – Global Procurement of ZF Friedrichshafen from 2015 to 2016, and Vice
President, Global Purchasing, Supplier Development and Logistics of ZF Friedrichshafen from 2013 to 2015.
James J. Huang. Mr. Huang is the Executive Vice President, APAC of Adient. Mr. Huang served as Vice President, Complete Seat APAC of Adient from 2016
to 2018, and Vice President Complete Seat APAC of Johnson Controls, Inc. from 2014 to 2016. Prior to that, Mr. Huang held leadership positions in Asia
Pacific in purchasing and sales before serving as General Manager of Shanghai Yanfeng Johnson Controls Seating Co., Ltd.
Stephanie S. Marianos. Ms. Marianos is the Executive Vice President, Global IT and Business Services and Sustainability of Adient. She previously served as
Vice President, Sustainability from 2023 to 2024 and Vice President, Internal Audit from 2020 to 2023. Prior to that, Ms. Marianos spent 15 years at Visteon
Corporation in a variety of finance roles including Vice President, Operations Finance and Vice President, Chief Accounting Officer.
Mark A. Oswald. Mr. Oswald is the Executive Vice President and Chief Financial Officer of Adient. Mr. Oswald served as Vice President, Treasurer, Investor
Relations, and Corporate Communications of Adient from 2020 to 2024. He previously served as Vice President Investor Relations and Corporate
Communication from 2018 to 2020 and Vice President Investor Relations from 2016 to 2018. Mr. Oswald held various investor relations and finance roles with
General Motors, TRW Automotive and Ford Motor Company from 1994 to 2016.
Gregory S. Smith. Mr. Smith is the Senior Vice President and Chief Accounting Officer of Adient. Mr. Smith served as Adient’s Assistant Corporate Controller
from 2016 to 2019. Prior to that, he served as Corporate Controller of Jason Industries, Inc. in 2015 and was with PricewaterhouseCoopers LLP from 1995 to
2015.
Heather M. Tiltmann. Ms. Tiltmann is the Executive Vice President, Chief Legal and Human Resources Officer, and Corporate Secretary of Adient. Ms.
Tiltmann served as Senior Vice President, General Counsel and Secretary of Adient from 2020 to 2021. Prior to that, Ms. Tiltmann was Adient’s Vice President
and General Counsel, Labor & Employment, Litigation and Compliance, and has served in other legal roles at Adient since 2016. Ms. Tiltmann was an attorney
at Johnson Controls, Inc. with increasing levels of responsibility from 2011 to 2016, and an attorney with the law firm of Whyte Hirschboeck Dudek S.C. from
2000 to 2011.
Adient plc | Form 10-K | 12

Item 1A. Risk Factors
The following discussion of risk factors contains forward-looking statements. These risk factors may be important to understanding other statements in this
Form 10-K. The following information should be read in conjunction with Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and the consolidated financial statements and related notes in Part II, Item 8, "Financial Statements and Supplementary Data" of this
Form 10-K.
The business, financial condition and operating results of Adient can be affected by a number of factors, whether currently known or unknown, including but
not limited to those described below, any one or more of which could, directly or indirectly, cause Adient's actual financial condition and operating results to
vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and
adversely affect Adient's business, financial condition, operating results and stock price.
Because of the following factors, as well as other factors affecting Adient's financial condition and operating results, past financial performance should not be
considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods.
Risks Related to Adient's Global Business
General economic, credit, capital market and global political conditions could adversely affect Adient's financial performance, Adient's ability to grow or
sustain its businesses and Adient's ability to access the capital markets.
Adient competes around the world in various geographic regions and product markets. Global economic conditions, including global demand for new vehicles,
new vehicle affordability, supply chain disruptions, inflationary concerns and labor availability, affect Adient's business. As discussed in greater detail below,
any future distress in the industries and/or markets where Adient competes could negatively affect Adient's revenues and financial performance in future
periods, result in future restructuring charges, and adversely impact Adient's ability to grow or sustain its businesses.
The global automotive industry has recently experienced uncertainties due to changing macroeconomic conditions. Weakening consumer demand, impacted by
new vehicle affordability and a high interest rate environment, among other factors, has resulted in lower automotive production volumes. The global adoption
of electric vehicles by consumers has also slowed, creating disruptions in production scheduling. More specifically, the EMEA region is faced with
overcapacity issues due to lower production volumes and resulting in pricing pressures. The EMEA region is also faced with intensifying competition from
Chinese imports and lower exports to China as domestic brands expand in China. Adient strives to offset the impact of lower production volumes through
improved operational performance, including commercial negotiations with Adient’s customers and vendors and through other operational improvements that
Adient can influence, however there is no guarantee that Adient will be able to sufficiently offset the impact of lower production volumes or to avoid more
significant restructuring actions. The global automotive industry has also experienced significant volatility in the past due to supply chain disruptions,
inflationary pressures, labor shortages, geopolitical uncertainties, high interest rates and foreign currency fluctuations. Although Adient's seating products have
not typically been dependent directly on the components causing the supply chain disruptions, Adient has been directly impacted by lower production levels at
the OEMs as a direct result of these disruptions. These disruptions have moderated in fiscal 2024, but supply chains remain fragile and, in the past have led to
unplanned downtime at Adient's production facilities, often with very little warning, which created operating inefficiencies and limited Adient's ability to
adequately mitigate such inefficiencies. The automotive industry has also experienced a period of significant price volatility (generally resulting in an increase
in commodities, energy costs, freight costs, labor costs and other input costs), as well as encountering an environment of unfavorable foreign currency
exposures and rising interest rates. While some of these input cost increases have moderated in fiscal 2024, other exposures will likely continue into fiscal 2025
and perhaps further into the future. This environment of significant price volatility has resulted in, and may continue to result in, increased costs for Adient that
may not be, or may only be partially, offset. Adient also experienced constrained labor availability which has resulted in wage inflationary pressures, both
internally and at key vendors. Adient continues to assess any impact labor shortages and wage inflation might have on Adient's ability to perform its
obligations. Although Adient has developed and implemented strategies to mitigate the impact of supply chain disruptions along with the impact of higher input
and other costs, these strategies, together with commercial negotiations with Adient's customers and suppliers, typically offset only a portion (less than 100%)
of the adverse impact. Additionally, Adient's operating model requires long lead times between the design and development of products and the launch of
production. This lead time requires Adient to secure vendor supply well in advance to minimize launch and production inefficiencies. During such lead times,
price commitments are subject to change and could lead to an inability of Adient to fully recover all such price changes.
Adient plc | Form 10-K | 13

The capital and credit markets provide Adient with liquidity to operate and grow its business beyond the liquidity that operating cash flows provide. A
worldwide economic downturn and/or disruption of the credit markets likely would reduce Adient's access to capital necessary for its operations and executing
its strategic plan. Adient's ability to borrow against the ABL Credit Facility is limited to its borrowing base, which consists primarily of accounts receivable,
inventory and certain cash account balances. Such working capital account balances fluctuate significantly depending on production levels and operating
activities. If Adient's access to capital were to become constrained significantly, or if costs of capital increased significantly, due to lowered credit ratings,
prevailing industry conditions, the volatility of the capital markets or other factors, Adient's financial condition, results of operations and cash flows likely
would be adversely affected.
Unfavorable changes in the condition of the global automotive industry and the condition of individual automakers may adversely affect Adient's results of
operations.
Adient's financial performance depends, in part, on conditions in the automotive industry. Automotive production and sales are highly cyclical and depend on
general economic conditions and other factors, including consumer spending and preferences. Automakers may experience a decline in the number of new
vehicle sales, whether as a result of economic decline, supply chain disruptions and labor shortages, increasing consumer borrowing rates or for various other
reasons. Automakers may also become less cost competitive due to rising input costs, such as labor or raw materials, and thereby experience a loss of demand
for their products as consumers shift to lower cost options. As a result, Adient may experience reductions in orders from these customers, incur write-offs of
accounts receivable, incur impairment charges or require additional restructuring actions beyond its current restructuring plans, particularly if any of the
automakers cannot adequately fund their operations or experience financial distress. Such adverse changes likely would have a negative impact on Adient's
business, financial condition or results of operations. In addition, Adient relies in part on its customers’ forecasting of their expected needs, which forecasts can
change rapidly and may not be accurate. Any inaccurate forecast data received by customers could also have an adverse impact on Adient’s results of
operations.
As a result of macroeconomic factors impacting Adient and the automotive industry, a heightened risk of impairment exists for the EMEA reporting unit as the
difference between its fair value and carrying value is less than 10% as of September 30, 2024. The decrease in EMEA’s fair value is driven by lower
forecasted vehicle volumes from weakening consumer demand, slower consumer adoption of electric vehicles, overcapacity in the industry resulting in pricing
pressure, intensifying competition from Chinese imports and lower exports to China from EMEA as domestic brands expand in China. As a result of the
heightened risk of impairment, Adient will continuously assess the changing macroeconomic conditions in EMEA including the outlook for consumer demand
for vehicles and other factors impacting the region, along with the need for further restructuring actions, all of which impact Adient’s ability to achieve its
projected long-term operating performance. Refer to Note 6, “Goodwill and Other Intangible Assets,” of the notes to the consolidated financial statements for
additional information.
Risks associated with joint venture partnerships may adversely affect Adient's business and financial results.
Adient has several joint ventures worldwide and may enter into additional joint ventures in the future. Adient's joint venture partners may at any time have
economic, business or legal interests or goals that are inconsistent with Adient's goals or with the goals of the joint venture which could lead to, among other
things, dissolution, liquidation and/or modification of the joint venture terms. Adient may compete against its joint venture partners in certain of its markets and
certain negotiations with its customers may negatively impact its joint venture business with those same customers. Disagreements with Adient's business
partners may impede Adient's ability to maximize the benefits of its partnerships and/or may consume management time and other resources to negotiate, and
which could lead to, among other things, dissolution, liquidation and/or modification of the joint venture terms. Adient's joint venture arrangements may
require Adient, among other matters, to pay certain costs or to make certain capital investments or to seek its joint venture partner's consent to take certain
actions. Adient does not control the ability to collect cash dividends from its non-consolidated joint ventures. In addition, Adient does not control the financial
reporting of its non-consolidated joint ventures, which may impact its ability to complete its financial statements in a timely or accurate manner. Delays in the
collection of dividends, even by a few days, could adversely affect Adient's financial position and cash flows. Adient's joint venture partners may be unable or
unwilling to meet their economic or other obligations under the operative documents, and Adient may be required to either fulfill those obligations alone to
ensure the ongoing success of a joint venture or to dissolve and liquidate a joint venture. Further, joint venture partnerships are subject to renewal or expiration
at various times. The failure to renew or extend the terms of Adient’s joint venture partnerships could impact other areas of Adient’s business, including its
business relationships. The above risks, if realized, could result in a material adverse effect on Adient's business and financial results.
Furthermore, non-consolidated joint ventures present various risks, including the risk that Adient may be slower or less able to identify or react to problems
affecting its non-consolidated joint ventures than Adient would for a wholly-owned subsidiary or consolidated joint venture. In addition, these arrangements
may cause Adient to be slower to detect compliance related
Adient plc | Form 10-K | 14

problems and make its design of effective internal controls more challenging. Each of these challenges may be more costly to implement, and the risk of failure
potentially higher, than would be the case in a more centralized structure. Depending on the nature of the problems, the failure to identify, detect or react could
materially adversely affect Adient’s business, financial condition or results of operations.
Risks associated with Adient's non-U.S. operations could adversely affect Adient's business, financial condition and results of operations.
Adient has significant operations in a number of countries outside the U.S., some of which are located in emerging markets. Long-term economic or political
uncertainty in some of the regions of the world in which Adient operates, such as Asia, South America and Europe and other emerging markets, could result in
the disruption of markets and negatively affect cash flows from Adient's operations to cover its capital needs and debt service requirements.
In addition, as a result of Adient's global presence, a significant portion of its revenues and expenses is denominated in currencies other than the U.S. Dollar.
Adient is therefore subject to foreign currency risks and foreign exchange exposure. While Adient employs financial instruments to hedge some of its
transactional foreign exchange exposure, these activities do not insulate Adient completely from those exposures. Exchange rates can be volatile and could
adversely impact Adient's financial results and the comparability of results from period to period. Adient’s use of financial instruments to limit this risk is
guided by strict policies and processes and the success of Adient’s hedging programs depends primarily on the performance of the business in comparison with
Adient’s forecasted sales proceeds and costs. If the forecast and other related factors are incorrect, the transactions entered into may have an adverse impact on
Adient’s financial results. No assurance can be given that judgment in this respect will be correct.
There are other risks that are inherent in Adient's non-U.S. operations, including the potential for changes in socioeconomic conditions, laws and regulations,
including sanctions, import, export, direct and indirect taxes, value-added taxes, labor and environmental laws, and monetary and fiscal policies; protectionist
measures that may prohibit acquisitions or joint ventures, or impact trade volumes; unsettled political conditions or instability; government-imposed plant or
other operational shutdowns; backlash from foreign labor organizations related to Adient's restructuring actions; asset freezes and seizures; corruption; natural
and man-made disasters; global health epidemics (such as COVID-19); hazards and losses; armed conflict, territorial disputes or acts of aggression in Asia,
South America, Europe or otherwise; violence, civil and labor unrest; and possible terrorist attacks.
Russia’s invasion of Ukraine in February 2022 resulted in significant uncertainty and instability in global supply chains and availability of certain commodities
and raw materials. Although Adient has no operations in Ukraine and its operation in Russia has since been disposed, certain of its suppliers as well as
customers depend on commodities and other material supplies that originate in Ukraine or Russia. In response to Russia’s invasion in Ukraine, a number of
countries, including the United States, the United Kingdom and members of the European Union, have implemented economic sanctions on Russia and certain
Russian enterprises including several large banks. The conflict also led to increases in the cost of energy and the potential for energy shortages, especially in
Europe. If the conflict continues or expands, it may trigger a series of additional economic and other sanctions which in turn could further disrupt the global
automotive supply chains by limiting supplies of key components and increasing inflationary pressures. This ongoing conflict, along with other geopolitical
uncertainties such as the current conflict in the Middle East, could have broader adverse impacts on macroeconomic factors that impact Adient's business, cash
flows, financial condition and results of operations.
Adient's business in China is subject to aggressive competition and is sensitive to economic and market conditions.
Maintaining a strong position in the Chinese market is a key component of Adient's strategy. Adient's business in China is conducted through both consolidated
subsidiaries and nonconsolidated joint ventures. The automotive supply market in China is highly competitive, with competition from many of the largest
global manufacturers and numerous smaller domestic manufacturers. As the size of the Chinese market evolves and as Chinese OEMs penetrate other markets
around the globe, often with lower-cost products, Adient anticipates that market participants will act aggressively to increase or maintain their market share.
Increased competition may result in price reductions, reduced margins and Adient's inability to gain or hold market share. In addition to the risks imposed by
U.S. economic trade policy discussed further below, Adient's business in China is sensitive to economic, political and market conditions that drive automotive
sales volumes in China. If Adient is unable to maintain its position in the Chinese market, or if vehicle sales in China decrease or do not continue to increase,
then Adient's business and financial results may be adversely affected. Also, if Chinese OEMs continue to expand into other markets and regions, Adient’s
business and financial results may be adversely affected if Adient does not have the same level of content on Chinese OEM vehicles.
Adient plc | Form 10-K | 15

Changes in U.S. administrative policy, including changes to existing trade agreements and any resulting changes in international trade relations, may have
an adverse effect on Adient.
There is continued uncertainty about the future relationship between the U.S. and various other countries, most significantly China, with respect to trade
policies, treaties, government regulations and tariffs. Changes in U.S. administrative policy could lead to changes to existing trade agreements, greater
restrictions on free trade generally, prohibitions or restrictions on the import of certain automobiles and components into the U.S. and significant increases in
tariffs on goods imported into the U.S., particularly tariffs on products manufactured in Mexico and China, among other possible changes. A trade war, other
governmental action related to tariffs or international trade agreements, changes in U.S. social, political, regulatory and economic conditions or in laws and
policies governing foreign trade, manufacturing, development and investment in the territories and countries where Adient currently manufactures and sells
products, and any resulting negative sentiments towards the U.S. as a result of such changes, likely would have an adverse effect on Adient's business, financial
condition or results of operations.
The regulation of Adient's international operations, and any failure of Adient to comply with those regulations, could adversely affect its business, results
of operations and reputation.
Due to Adient's global operations, Adient is subject to many laws governing international relations and its international operations, including laws that prohibit
improper payments to government officials and commercial customers and that restrict where Adient can do business, what information or products Adient can
import and export to and from certain countries and what information Adient can provide to a non-U.S. government. These laws include but are not limited to
the U.S. Foreign Corrupt Practices Act, the Irish Criminal Justice (“Corruption Offences”) Act, the U.K. Bribery Act, the U.S. Export Administration Act and
U.S. and international economic sanctions and money laundering regulations. Adient has internal policies and procedures relating to compliance with such
laws; however, there is a risk that such policies and procedures will not always protect Adient from the improper acts of employees, agents, business partners,
joint venture partners or representatives, particularly in the case of recently acquired operations that may not have significant training in applicable compliance
policies and procedures. Violations of these laws, which are complex, may result in criminal penalties, sanctions and/or fines, and may also result in costly and
time-consuming governmental investigations, any or all of which could have an adverse effect on Adient's business, financial condition and results of
operations and reputation. In addition, Adient is subject to antitrust laws in various countries throughout the world. Changes in these laws or their
interpretation, administration or enforcement may occur over time. Any such changes may limit Adient's future acquisitions, divestitures or operations.
Violations of antitrust laws may result in penalties, sanctions and/or fines, and may also result in costly and time-consuming governmental investigations, any
or all of which could have an adverse effect on Adient's business, financial condition and results of operations and reputation.
Risks Related to Adient's Operations
Increases in the costs and restrictions on the availability of raw materials, energy, commodities, freight, labor and product components could adversely
affect Adient's financial performance.
Raw material, energy, commodity, freight and labor costs can be volatile. Although Adient has developed and implemented strategies to mitigate the impact of
higher raw material, energy, commodity, freight and labor costs, these strategies, together with commercial negotiations with Adient's customers and suppliers,
may only offset a portion of the adverse impact. Certain of these strategies also may limit Adient's opportunities in a declining commodity environment. In
addition, the availability of raw materials, commodities, transportation and product components fluctuates from time to time due to factors outside of Adient's
control. Due to a variety of global factors, the automotive industry has experienced, and may continue to experience, supply chain disruptions from an
insufficient availability of raw materials, components and labor. As a result of these disruptions, the automotive industry has seen volatility in the volume of
automobile production, which has resulted in, and may continue to result in, decreased sales, without a corresponding decrease in labor costs, for Adient. In
addition, the automotive industry has seen periods of price increases for commodities, primarily related to steel, and to a lesser extent petrochemicals, and
energy costs in Europe. Adient has also experienced constrained labor availability which has resulted in wage inflationary pressures, both internally and at key
vendors. Given the United Auto Workers’ (“UAW”) strategy of targeted strikes, Adient may see increased pressure for wage and benefit increases in the U.S.
These increases may continue into the future as demand increases and as supply may remain constrained, which has resulted in, and may continue to result in,
increased costs for Adient. If the costs of raw materials, energy, commodities, freight costs, labor costs and product components increase or the availability
thereof is restricted, it could adversely affect Adient's financial condition, operating results and cash flows.
Adient plc | Form 10-K | 16

Adient operates in the highly competitive automotive supply industry.
The global automotive component supply industry is highly competitive. Competition is based primarily on price, technology, quality, delivery and overall
customer service. There can be no assurance that Adient's products will be able to compete successfully with the products of Adient's competitors. Furthermore,
the rapidly evolving nature of the markets in which Adient competes, including as a result of the autonomous vehicle market and consumer preferences for
mobility on demand services, such as car- and ride-sharing, may attract new entrants. Additionally, consolidation in the automotive industry may lead to
decreased product purchases from Adient.
As a result, Adient's sales levels and margins could be adversely affected by pricing pressures from OEMs and pricing actions of competitors. These factors
may lead to selective resourcing of business to competitors. Adient's competitors may develop, design or duplicate technologies that compete with Adient's
owned or licensed intellectual property. Developments or assertions by or against Adient relating to intellectual property rights, or any inability to protect
Adient's rights, could have an adverse impact on its business and competitive position. In addition, any of Adient's competitors may foresee the course of
market development more accurately than Adient, develop products that are superior to Adient's products, produce similar products at a lower cost than Adient,
or adapt more quickly than Adient to new technologies or evolving customer requirements. Adient cannot provide assurances that certain of Adient’s products
will not become obsolete or that Adient will be able to achieve the technological advances that may be necessary to remain competitive. As a result, Adient's
products may not be able to compete successfully with its competitors' products and Adient may not be able to meet the growing demands of customers. In
addition, Adient’s customers may increase levels of production insourcing for a variety of reasons, such as shifts in customers’ business strategies or the
emergence of low-cost production opportunities in other countries. These trends may adversely affect Adient's sales as well as the profit margins on Adient's
products.
Adient's profitability and results of operations may be adversely affected by a significant failure or inability to comply with the specifications and
manufacturing requirements of its OEM customers or by program launch difficulties.
Adient's business faces the production demands and requirements of its OEM customers, as described in Item 1, "Business" of this Annual Report on Form 10-
K. As a result of safety and environmental regulations, as well as a trend of more rapid customer preference changes, OEMs are requiring suppliers like Adient
to respond faster with new designs and product innovations. A significant failure or inability to comply with customer specifications and manufacturing
requirements or delays or other problems with existing or new products often results in financial penalties, increased costs, loss of sales, loss of customers or
potential breaches of customer contracts, which likely would have an adverse effect on Adient's profitability and results of operations.
In addition, to the extent Adient experiences product launch difficulties (which could be the result of a wide range of factors, including the production readiness
of Adient's and its suppliers' manufacturing facilities and manufacturing processes, as well as factors related to tooling, equipment, employees, initial product
quality and other factors), vehicle production at Adient’s customers could be significantly delayed or shut down. Such situations could result in significant
financial penalties to Adient, a diversion of personnel and financial resources to improving launches rather than investment in continuous process improvement
or other growth initiatives, and could result in Adient’s customers shifting work away from Adient to a competitor, all of which could result in loss of revenue,
loss of market share and likely would have an adverse effect on Adient’s profitability and cash flows. Adient's failure to successfully launch material new or
takeover business, or Adient's inability to accurately estimate the cost to design, develop and launch new or takeover business, likely would have an adverse
effect on Adient's profitability and results of operations.
Adient may not be able to successfully negotiate pricing and other terms with its customers or may be unable to achieve product cost reductions that offset
customer-imposed price reductions, both of which may adversely affect its results of operations.
Adient negotiates sales price adjustments and other contractual terms periodically with its automotive customers. There is no guarantee that Adient will be able
to successfully negotiate pricing or other terms that are favorable or beneficial to Adient. Further, any cost-cutting initiatives that its customers adopt generally
result in increased downward pressure on pricing. If Adient is unable to generate sufficient production or supply chain cost savings in the future to offset price
reductions, Adient's results of operations may be adversely affected. In particular, large commercial settlements with Adient's customers likely would adversely
affect Adient's results of operations. In addition, Adient must negotiate contract and other program changes during the life of customer programs to address
situations unforeseen at the beginning of the program, including those relating to labor shortages and material cost increases. The inability of Adient to
negotiate these contract or program changes in a manner favorable to Adient could also adversely affect Adient’s results of operations.
Adient plc | Form 10-K | 17

Work stoppages, including those at Adient’s customers, and similar events could significantly disrupt Adient's business.
Because the automotive industry relies heavily on just-in-time delivery of components during the assembly and manufacture of vehicles, a work stoppage at
one or more of Adient's manufacturing and assembly facilities could have adverse effects on the business. Similarly, if one or more of Adient's customers were
to experience a work stoppage, such as what occurred during the UAW strike in the U.S. in late 2023, resulting in ongoing supply chain disruptions, or
otherwise, that customer would likely halt or limit purchases of Adient's products, which could result in the shutdown of the related Adient manufacturing
facilities and or other cost-reduction initiatives. In certain instances, Adient may be unable to adjust its staffing levels to correspond to a customer’s work
stoppage such that Adient incurs increased labor costs along with a decrease in production. A significant disruption in the supply of a key component due to a
work stoppage at one of Adient's suppliers or any other supplier could have the same consequences, and accordingly, have an adverse effect on Adient's
financial results.
Adient may be unable to realize the expected benefits of its restructuring actions, which could adversely affect its profitability and operations.
In order to align Adient's resources with its strategies, operate more efficiently and control costs and to realign its businesses, with customer and market needs
and operating conditions, Adient has periodically announced, and in the future may continue to announce, restructuring plans, which may include workforce
reductions, global plant closures and consolidations, asset impairments and other cost reduction initiatives. In each of the last six fiscal years, Adient announced
restructurings related to cost reduction initiatives, which included workforce reductions, plant closures and asset impairments. Adient may undertake additional
restructuring actions, including plant closures and workforce reductions in the future, particularly in EMEA where Adient is closely monitoring macroeconomic
conditions and customer production plans. As these plans and actions are complex, unforeseen factors could result in expected savings and benefits to be
delayed or not realized to the full extent planned (if at all), and Adient's operations and business may be disrupted, which likely would adversely affect Adient's
financial condition, operating results and cash flow. Furthermore, to the extent such initiatives involve workforce changes, such changes may temporarily
reduce workforce productivity, which could be disruptive to Adient’s business and adversely affect results of operations.
A failure of Adient's information technology (“IT”) and data security infrastructure or the unsuccessful adoption of new technology such as artificial
intelligence could adversely impact Adient's business, operations and reputation.
Adient relies upon the capacity, reliability and security of its IT and data security infrastructure, as well as its ability to expand and continually update this
infrastructure in response to the changing needs of its business. If Adient experiences a problem with the functioning of an important IT system or a security
breach of Adient's IT systems, including a potential ransomware attack, due to failure to timely upgrade systems or during system upgrades and/or new system
implementations, the resulting disruptions could have an adverse effect on Adient's business.
Adient and certain of its third-party vendors receive and store personal information in connection with Adient's human resources operations and other aspects
of Adient's business. Despite Adient's implementation of security measures, Adient's IT systems, like those of other companies, are vulnerable to damages from
computer viruses, natural disasters, unauthorized access, cyber attack, ransomware attack, and other similar disruptions. Any system failure, accident or cyber
security breach or incident could result in disruptions to Adient's operations. A material network breach in the security of Adient's IT systems could lead to the
theft of Adient's intellectual property, trade secrets, customer information, human resources information or other confidential information. To the extent that
any disruptions or security breach results in a loss or damage to Adient's data, or an inappropriate disclosure of confidential, proprietary or customer
information, it could cause significant damage to Adient's reputation, affect Adient's relationships with its customers and vendors, lead to claims against Adient
and ultimately harm its business. In addition, Adient may be required to incur significant costs to protect against damage caused by these disruptions or security
breaches in the future.
In addition, legislators and/or regulators in countries in which Adient operates are increasingly adopting or revising privacy, information security and data
protection laws. In particular, the European Union's General Data Protection Regulation and the China security law both have extra-territorial scope. Violations
of such laws and regulations may result in penalties, sanctions and/or fines, and may also result in costly and time-consuming governmental investigations, any
or all of which could have an adverse effect on Adient's business, financial condition and results of operations and reputation.
Adient is increasingly incorporating automation and artificial intelligence capabilities into the development of technologies and business operations, and into
products and services. Artificial intelligence technology is complex and rapidly evolving, and may subject Adient to significant competitive, legal, regulatory,
operational and other risks. The implementation of artificial intelligence can be costly and there is no guarantee that Adient’s use of artificial intelligence will
enhance its technologies,
Adient plc | Form 10-K | 18

benefit its business operations, or produce products and services that are preferred by its customers. Adient’s competitors may be more successful in their
artificial intelligence strategy and develop superior products and services with the aid of artificial intelligence technology. Additionally, artificial intelligence
algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient or biased information, which can cause errors in outputs.
This may give rise to legal liability, reputational damage, and materially harm Adient’s business. The use of artificial intelligence in the development of
Adient’s products and services could also cause loss of intellectual property, as well as subject it to risks related to intellectual property infringement or
misappropriation, data privacy and cybersecurity. Additionally, market adoption of artificial intelligence technology could be impaired by ethical and other
issues inherent in the technology, which could impair demand for Adient’s products and services. Furthermore, the U.S. and other countries may adopt laws and
regulations related to artificial intelligence. Such laws and regulations could cause Adient to incur greater compliance costs and limit the use of artificial
intelligence in the development of its products and services. Any failure or perceived failure by Adient to comply with such regulatory requirements could
subject Adient to legal liabilities, reputational damage, or otherwise have a material and adverse impact on Adient’s business.
Negative or unexpected tax consequences could adversely affect Adient's results of operations.
Adverse changes in the underlying profitability and financial outlook of Adient's operations in several jurisdictions could lead to additional changes in Adient's
valuation allowances against deferred tax assets and other tax reserves on Adient's statements of financial position. Additionally, changes in tax laws in Ireland,
the U.S. or in other countries where Adient has significant operations could materially affect deferred tax assets and liabilities on Adient's statements of
financial position and income tax provision on Adient's statements of income.
Adient is also subject to tax audits for both direct and indirect taxes by governmental authorities on a worldwide basis. Governmental authorities have become
more aggressive in proposing tax assessments, including interest related to income taxes and transaction taxes such as Value Added Tax (“VAT”). Negative
unexpected results from one or more such tax audits could adversely affect Adient's results of operations.
If Adient does not respond appropriately, the evolution of the automotive industry towards autonomous vehicles and mobility on demand services could
adversely affect Adient’s business.
The automotive industry is increasingly focused on the development of advanced driver assistance technologies, with the goal of developing and introducing a
commercially-viable, fully automated driving experience. There has also been an increase in consumer preferences for mobility on demand services, such as
car- and ride-sharing, as opposed to automobile ownership, which may result in a long term reduction in the number of vehicles per capita. These evolving
areas have also attracted increased competition from entrants outside the traditional automotive industry. If Adient does not continue to innovate to develop or
acquire new and compelling products that capitalize upon new technologies in response to OEM and consumer preferences, this could have an adverse impact
on Adient’s results of operations.
Adient may incur material losses and costs as a result of warranty claims and product liability actions that may be brought against Adient.
Adient faces an inherent business risk of exposure to warranty claims and product liability in the event that its products fail to perform as expected and, in the
case of product liability, such failure of its products results, or is alleged to result, in bodily injury and/or property damage. While Adient will maintain
reasonable limits of insurance coverage to appropriately respond to such exposures, large product liability claims, if made, could exceed Adient's insurance
coverage limits and insurance may not continue to be available on commercially acceptable terms, if at all. Adient may incur significant costs to defend these
claims or experience product liability losses in the future. If any of Adient's products are or are alleged to be defective, Adient may be required to participate in
a recall involving such products. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly
functions, auto manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. A recall claim
brought against Adient that is not insured, or a product liability claim brought against Adient in excess of its available insurance, could have an adverse impact
on Adient's results of operations. In addition, a recall claim could require Adient to review its entire product portfolio to assess whether similar issues are
present in other product lines, which could result in significant disruption to Adient's business and could have an adverse impact on Adient's results of
operations.
Auto manufacturers are also increasingly requiring their suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such
products under new vehicle warranties. Depending on the terms under which Adient supplies products to an auto manufacturer, an auto manufacturer may
attempt to hold Adient responsible for some or all of the repair or
Adient plc | Form 10-K | 19

replacement costs of defective products under new vehicle warranties, when the vehicle manufacturer asserts that the product supplied did not perform as
warranted.
Although Adient cannot assure that the future costs of warranty claims by its customers and product liability claims will not be material, Adient believes its
established reserves are adequate to cover potential settlements. Adient's reserves are based on Adient's best estimates of amounts necessary to settle future and
existing claims. Adient regularly evaluates the level of these reserves, and adjusts them when appropriate. However, the final amounts determined to be due
related to these matters could differ materially from Adient's recorded estimates.
Any changes in consumer credit availability or cost of borrowing could adversely affect Adient's business.
Declines in the availability of consumer credit and increases in consumer borrowing costs have negatively impacted global automotive sales and resulted in
lower production volumes in the past. Substantial declines in automotive sales and production by Adient's customers likely would have an adverse effect on
Adient's business, results of operations and financial condition.
Global climate change and related emphasis on sustainability matters by various stakeholders could negatively affect Adient's business.
Increased public awareness and concern regarding global climate change may result in more regional and/or federal requirements to reduce or mitigate the
effects of greenhouse gas emissions. There continues to be a lack of consistent climate legislation, which creates economic and regulatory uncertainty. Such
regulatory uncertainty extends to future incentives for energy efficient vehicles and costs of compliance, which may impact the demand for Adient's products
and Adient's results of operations.
The effects of climate change, such as extreme weather conditions, create financial risk to Adient's business. For example, the demand for Adient's products
and services may be affected by unseasonable weather conditions. Climate changes could also disrupt Adient's operations by impacting the availability and cost
of materials needed for manufacturing and could increase insurance and other operating costs. These factors may impact Adient's decisions to construct new
facilities or maintain existing facilities in areas most prone to physical climate risks. Adient could also face indirect financial risks passed through the supply
chain, and process disruptions due to physical climate changes could result in price modifications for Adient's products and the resources needed to produce
them.
Furthermore, customer, investor, regulatory and employee expectations in areas such as sustainability have been rapidly evolving and increasing. Specifically,
regulatory bodies around the globe continue to develop sustainability reporting requirements, many of which will be subject to independent audits. Emerging
European legislation is requiring detailed emissions data reporting for imported carbon intensive commodities, subject to financial payment mechanisms after a
transition period. Further European legislation is requiring extensive value chain diligence for forest related commodities to ensure goods do not result from
recent deforestation, forest degradation or breaches of local law. Also, certain customers are beginning to require that Adient provide information on its plans
and goals relating to certain climate-related matters such as carbon and greenhouse gas emissions and renewable energy. Product design activities for lower
carbon emission products must keep pace with customer carbon emission reduction and pricing expectations. The enhanced stakeholder focus on sustainability
issues relating to Adient requires the continuous monitoring of various and evolving standards and the associated reporting requirements. A failure to
adequately meet regulatory requirements and stakeholder expectations or achieve its sustainability-related goals may result in the loss of business, diluted
market valuation, an inability to attract customers or an inability to attract and retain top talent.
As of the date of this filing, Adient has made several public commitments regarding the intended reduction of carbon emissions, including commitments to
science-based targets to reduce carbon emissions from its operations and the operations of its customers. Although Adient intends to meet these commitments,
it may be required to expend significant resources to do so, which could increase its operational costs. Further, there can be no assurance that any of Adient’s
commitments will be achieved, or that any future investments it makes to achieve such targets and goals will meet investor expectations or any binding or non-
binding legal standards regarding sustainability performance. Moreover, Adient may determine that it is in the best interest of Adient and its shareholders to
prioritize other business, social, governance or sustainable investments over the achievement of Adient’s current commitments based on economic, regulatory
and social factors, business strategy or pressure from investors, activist groups or other stakeholders. If Adient is unable to meet these commitments, then it
could incur adverse publicity and reactions from investors, activist groups and other stakeholders, which could adversely impact the perception of Adient and
its products and services by current and potential customers, as well as investors, which could in turn adversely impact its results of operations.
Adient plc | Form 10-K | 20

Risks related to Adient's defined benefit retirement plans may adversely impact Adient's results of operations and cash flow.
Significant changes in actual investment return on defined benefit plan assets, discount rates, mortality assumptions and other factors could adversely affect
Adient's results of operations and the amounts of contributions Adient must make to its defined benefit plans in future periods. For example, Adient has
recorded mark-to-market adjustments on the revaluation of its pension obligations that have significantly impacted its overall results the past two years.
Generally accepted accounting principles in the U.S. require that Adient calculate income or expense for the plans using actuarial valuations. These valuations
reflect assumptions about financial markets and interest rates, which may change based on economic conditions. Funding requirements for Adient's defined
benefit plans are dependent upon, among other factors, interest rates, underlying asset returns and the impact of legislative or regulatory changes related to
defined benefit funding obligations.
Legal proceedings in which Adient is, or may be, a party may adversely affect Adient.
Adient is currently and may in the future become subject to legal proceedings and commercial, contractual or other disputes. These are typically lawsuits,
claims and proceedings that arise in the normal course of business including, without limitation, claims pertaining to product liability, product safety,
environmental, safety and health, intellectual property, employment, commercial, contractual and various other matters. The outcome of such lawsuits, claims
or proceedings cannot be predicted with certainty and some may be disposed of unfavorably to Adient. There exists the possibility that such claims may have
an adverse impact on Adient's results of operations that is greater than Adient anticipates, and/or negatively affect Adient's reputation.
A downgrade in the ratings of Adient's debt capital could restrict Adient's ability to access the debt capital markets and increase Adient's interest costs.
Unfavorable changes in the ratings that rating agencies assign to Adient's debt may ultimately negatively impact Adient's access to the debt capital markets and
increase the costs Adient incurs to borrow funds. Future tightening in the credit markets and a reduced level of liquidity in many financial markets due to
turmoil in the financial and banking industries could adversely affect Adient's access to the debt capital markets or the price Adient pays to issue debt. A
downgrade in Adient's ratings or volatility in the financial markets causing limitations to the debt capital markets could have an adverse effect on Adient's
business or Adient's ability to meet its liquidity needs. There can be no assurance that Adient would be able to obtain additional financing or refinancing and
failure to obtain such additional financing or refinancing could have a material adverse impact on Adient’s operations. Adient may incur or assume significantly
more debt in the future. If Adient incurs more debt in the future and does not retire existing debt, the risks described above could increase.
Adient's debt obligations could adversely affect Adient's business, profitability and the ability to meet its obligations.
As of September 30, 2024, Adient's total consolidated indebtedness approximated $2.4 billion. This significant amount of debt could potentially have adverse
consequences to Adient and its debt and equity investors, including:
•
making it more difficult to satisfy other obligations;
•
increasing the risk of a future credit ratings downgrade of its debt, which could increase future debt costs and limit the future availability of debt
financing;
•
increasing Adient's vulnerability to general adverse economic and industry conditions;
•
placing Adient at a competitive disadvantage relative to its competitors that may not be as highly leveraged with debt; and
•
limiting Adient's ability to borrow additional funds as needed.
Adient's business success depends on attracting and retaining qualified personnel and the attempt to operate under a hybrid working environment may not
be successful.
Adient's ability to sustain and grow its business requires it to hire, retain and develop a highly skilled and diverse management team and workforce. Failure to
ensure that Adient has the leadership capacity with the necessary skill set and experience could impede Adient's ability to deliver its growth objectives and
execute its strategic plan. Organizational and reporting changes as a result of any future leadership transition and corporate initiatives, including restructuring
actions, could result in increased turnover. Additionally, any unplanned turnover or inability to attract and retain key employees could have a negative effect on
Adient's results of operations. Further, certain of the recent austerity measures related to employee compensation, along with the on-going unpredictability of
production schedules, could result in employees pursuing other employment opportunities outside of Adient.
Adient plc | Form 10-K | 21

Adient is operating under a “hybrid” working environment, meaning that the majority of its non-plant employees have the flexibility to work remotely at least
some of the time, for the foreseeable future. The hybrid working environment may impair Adient’s ability to maintain its collaborative and innovative culture,
and may cause disruptions among employees, including decreases in productivity, challenges in communications between on-site and off-site employees and,
potentially, employee dissatisfaction and attrition. If Adient’s attempts to operate under a hybrid working environment are not successful, its business could be
adversely impacted.
Adverse developments affecting, or the financial distress of, one or more of Adient's suppliers or other third-party counterparties could adversely affect
Adient's financial performance.
Adient obtains components and other products and services from numerous automotive suppliers and other vendors throughout the world. In addition, Adient is
party to various arrangements with third parties who owe Adient money or goods and services, or who purchase goods and services from Adient. Adient is
responsible for managing its supply chain, including suppliers that may be the sole sources of products that Adient requires, which Adient's customers direct
Adient to use or which have unique capabilities that would make it difficult and/or expensive to re-source. In addition, with fewer sources of supply for certain
components, each supplier may perceive that it has greater leverage and, therefore, some ability to seek higher prices at a time that Adient faces substantial
pressure from OEMs to reduce the prices of Adient’s products. This could adversely affect customer relations and business. In certain instances entire industries
may experience short-term capacity constraints. Additionally, Adient's production capacity, and that of Adient's customers and suppliers, may be adversely
affected by natural disasters. Any such significant disruption could adversely affect Adient's financial performance. Unfavorable economic or industry
conditions could also result in financial distress within Adient's supply chain or among other third-party counterparties, thereby increasing the risk of supply
disruption or lost orders. Although market conditions generally have improved in recent years, uncertainty remains and another economic downturn or other
unfavorable industry conditions in one or more of the regions in which Adient operates could cause a supply disruption or loss of customer orders and thereby
adversely affect Adient's financial condition, operating results and cash flows.
The loss of business with respect to, or the lack of commercial success of, a vehicle model for which Adient is a significant supplier could adversely affect
Adient's financial performance.
Although Adient receives purchase orders from its customers, these purchase orders often provide for the supply of a customer's annual requirements for a
particular vehicle model and assembly plant, or in some cases, for the supply of a customer's requirements for the life of a particular vehicle model, rather than
for the purchase of a specific quantity of products. In addition, it is possible that Adient's customers could elect to manufacture its products internally or
increase the extent to which they require Adient to utilize specific suppliers or materials in the manufacture of its products. The loss of business with respect to,
the lack of commercial success of or an increase in directed component sourcing for a vehicle model for which Adient is a significant supplier could reduce
Adient's sales or margins and thereby adversely affect Adient's financial condition, operating results and cash flows.
Shifts in market shares among vehicles, vehicle segments or shifts away from vehicles on which Adient has significant content or overall changes in
consumer demand could have an adverse effect on Adient's profitability.
While Adient supplies parts for a wide variety of vehicles produced globally, Adient does not supply parts for all vehicles produced, nor is the number or value
of parts evenly distributed among the vehicles for which Adient does supply parts. Shifts in market shares among vehicles or vehicle segments, including as a
result of the autonomous vehicle market, particularly shifts away from vehicles on which Adient has significant content and shifts away from vehicle segments
in which Adient's sales may be more heavily concentrated, could have an adverse effect on Adient's profitability. Similarly, certain vehicles or vehicle segments
Adient supplies may be disproportionately impacted by overall industry disruptions such that Adient’s sales may be adversely effected relative to the industry
in general or Adient’s competitors, which could have a negative effect on Adient’s business. Increases in energy costs or other factors (e.g., climate change
concerns) may also shift consumer demand away from motor vehicles that typically have higher interior content that Adient supplies, such as light trucks,
crossover vehicles, minivans and sports utility vehicles, to smaller vehicles having less interior content. The loss of business with respect to, or a lack of
commercial success of, one or more particular vehicle models for which Adient is a significant supplier could reduce Adient's sales and harm Adient's
profitability, thereby adversely affecting Adient's results of operations.
Adient may not pay dividends on its ordinary shares, which may impact Adient’s investor base.
Adient currently does not have plans to pay dividends on its ordinary shares. The timing, declaration, amount and payment of future dividends to shareholders
will fall within the discretion of Adient's Board of Directors. The Board's decisions regarding the payment of dividends will depend on many factors, such as
Adient's financial condition, earnings, sufficiency of
Adient plc | Form 10-K | 22

distributable reserves, capital requirements, debt service obligations, legal requirements, regulatory constraints and other factors that the board deems relevant.
Adient's ability to pay dividends will depend on its ongoing ability to generate cash from operations and access capital markets. Adient cannot guarantee that it
will pay dividends in the future which may impact Adient’s investor base.
A variety of other factors could adversely affect Adient's results of operations.
Any of the following could adversely impact Adient's results of operations: the inability of Adient to execute continued turnaround actions to improve
profitability; the loss of, or changes in, automobile supply contracts, sourcing strategies or customer claims with Adient's major customers or suppliers;
increased freight or shipping costs resulting from extreme weather conditions or supply chain disruptions, lack of commodity availability and unfavorable
commodity pricing; start-up expenses associated with new vehicle programs or delays or cancellations of such programs; underutilization of Adient's
manufacturing facilities, which are generally located near, and devoted to, a particular customer's facility; inability to recover engineering and tooling costs;
market and financial consequences of any recalls that may be required on products that Adient has supplied or sold into the automotive aftermarket; delays or
difficulties in new product development and integration; quantity and complexity of new program launches, which are subject to Adient's customers' timing,
performance, design and quality standards; interruption of supply of certain single-source components; the potential introduction of similar or superior
technologies; changing nature and prevalence of Adient's joint ventures and relationships with its strategic business partners; global overcapacity and vehicle
platform proliferation; and the implementation of new internal control systems and procedures that fail to achieve accurate financial reporting or that fail to
prevent fraudulent activity (such as vendor payments to fraudulent bank accounts).
Risks Related to Adient’s Jurisdiction of Incorporation
As an Irish public limited company, certain capital structure decisions require shareholder approval, which may limit Adient's flexibility to manage its
capital structure.
Irish law provides that a Board of Directors may allot shares (or rights to subscribe for or convertible into shares) only with the prior authorization of
shareholders. At Adient’s most recent Annual General Meeting, Adient's shareholders renewed this authorization for a period of 18 months (unless previously
renewed, varied or revoked). This authorization will need to be further renewed by ordinary resolution, being a resolution passed by a simple majority of votes
cast, prior to expiration. Adient anticipates seeking another authorization at the next Annual General Meeting and annually thereafter. Should this authorization
not be approved, the ability to issue equity could be limited which could adversely affect Adient’s securities holders.
Irish law also generally provides shareholders with preemptive rights when new shares are issued for cash; however, it is possible for shareholders to vote to
exclude preemptive rights in a general meeting. At the most recent Annual General Meeting, Adient's shareholders renewed this authorization for a period of 18
months (unless previously renewed, varied or revoked). This authorization will need to be renewed by special resolution, being a resolution passed by not less
than 75% of votes cast, upon expiration. Adient anticipates seeking another authorization at the next Annual General Meeting and annually thereafter. Should
this authorization not be approved, the ability to issue equity could be limited which could adversely affect Adient’s securities holders.
The laws of Ireland differ from the laws in effect in the U.S. and may afford less protection to holders of Adient securities.
It may not be possible to enforce court judgments obtained in the U.S. against Adient in Ireland based on the civil liability provisions of the U.S. federal or state
securities laws. In addition, there is some uncertainty as to whether the courts of Ireland would recognize or enforce judgments of U.S. courts obtained against
Adient or its directors or officers based on the civil liabilities provisions of the U.S. federal or state securities laws or hear actions against Adient or those
persons based on those laws. The U.S. currently does not have a treaty with Ireland providing for the reciprocal recognition and enforcement of judgments in
civil and commercial matters in Ireland. Therefore, a final judgment for the payment of money rendered by any U.S. federal or state court based on civil
liability, whether or not based solely on U.S. federal or state securities laws, would not automatically be enforceable in Ireland.
A judgment obtained against Adient will be enforced by the courts of Ireland if the following general requirements are met: (i) U.S. courts must have had
jurisdiction in relation to the particular defendant according to Irish conflict of law rules (the submission to jurisdiction by the defendant would satisfy this rule)
and (ii) the judgment must be final and conclusive and the decree must be final and unalterable in the court which pronounces it. A judgment can be final and
conclusive even if it is subject to appeal or even if an appeal is pending. Where however the effect of lodging an appeal under the applicable law is to stay
execution of the judgment, it is possible that in the meantime the judgment may not be actionable in Ireland. It remains to
Adient plc | Form 10-K | 23

be determined whether final judgment given in default of appearance is final and conclusive. However, Irish courts may refuse to enforce a judgment of the
U.S. courts which meets the above requirements for one of the following reasons: (i) if the judgment is not for a definite sum of money; (ii) if the judgment was
obtained by fraud; (iii) the enforcement of the judgment in Ireland would be contrary to natural or constitutional justice; (iv) the judgment is contrary to Irish
public policy or involves certain U.S. laws which will not be enforced in Ireland; or (v) jurisdiction cannot be obtained by the Irish courts over the judgment
debtors in the enforcement proceedings by personal service in Ireland or outside Ireland under Order 11 of the Ireland Superior Courts Rules.
As an Irish company, Adient is governed by the Irish Companies Act 2014, which differs in some material respects from laws generally applicable to U.S.
corporations and shareholders, including, among others, differences relating to interested director and officer transactions and shareholder lawsuits. Likewise,
the duties of directors and officers of an Irish company generally are owed to Adient only. Shareholders of Irish companies generally do not have a personal
right of action against directors or officers of Adient and may exercise such rights of action on behalf of Adient only in limited circumstances. Accordingly,
holders of Adient's securities may have more difficulty protecting their interests than would holders of securities of a corporation incorporated in a jurisdiction
of the U.S.
In addition, the Adient articles of association provide that the Irish courts have exclusive jurisdiction to determine any and all derivative actions in which a
holder of Adient ordinary shares asserts a claim in the name of Adient, actions asserting a claim of breach of a fiduciary duty of any of the directors of Adient
and actions asserting a claim arising pursuant to any provision of Irish law or Adient's articles of association. Under Irish law, the proper claimant for wrongs
committed against Adient, including by the Adient directors, is considered to be Adient itself. Irish law permits a shareholder to initiate a lawsuit on behalf of a
company such as Adient only in limited circumstances, and requires court permission to do so.
Adient’s effective tax rate could be volatile and materially change as a result of changes in tax laws, mix of earnings and other factors.
A change in tax laws is one of many factors that impact Adient’s effective tax rate. The U.S. Congress, the Organization for Economic Co-operation and
Development (“OECD”) and other government agencies in jurisdictions where Adient and its affiliates do business have had an extended focus on issues
related to the taxation of multinational corporations. One example is in the area of base erosion and profit shifting, including situations where payments are
made between affiliates from a jurisdiction with high tax rates to a jurisdiction with lower tax rates. As a result, the tax laws in the U.S. and other countries in
which Adient and its affiliates do business could change on a prospective or retroactive basis, and any such changes could adversely impact Adient and its
affiliates, including potential adverse impacts to Adient's effective tax rate.
On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the “IRA”) into law. The corporate tax provisions include (a) the creation of a
15% corporate minimum tax, effective for Adient’s fiscal year 2024, and (b) a nondeductible 1% excise tax on share buy-backs of covered corporations,
effective for stock repurchases that occur after December 31, 2022. Based upon current IRS guidance and Adient income levels, Adient is not subject to either
provision. However, Adient will continue to monitor and reassess the impact, if any, as the IRS and U.S. Treasury issue additional guidance on the IRA
provisions. Given the current political environment, it is uncertain whether additional U.S. corporate tax reform could be expected. There are a number of
corporate income tax topics that were not addressed in the IRA that could be raised in the future, for example: increasing the U.S. corporate tax rate, increasing
the rate of tax on certain earnings of foreign subsidiaries (the corporate minimum tax), modifying the base erosion and anti-abuse tax rules to target outbound
payments to low-taxed jurisdictions, and further limiting interest expense deductibility. If any or all of these (or similar) proposals are ultimately enacted into
law, in whole or in part, Adient’s effective tax rate could be negatively impacted.
In 2021, the OECD released a framework for the fundamental reform of international tax rules. The framework provides for two primary “Pillars”; however,
only Pillar Two, which provides for a global minimum corporate tax rate of 15% in each jurisdiction in which the group operates, is expected to be applicable
to Adient (Pillar One is not expected to be applicable as Adient does not currently meet the turnover threshold – EUR 20 billion). In December 2022, Pillar Two
was adopted by the Council of the European Union for implementation by European Union member states by December 31, 2023, with effect for tax years
beginning in calendar year 2024 (Adient’s 2025 fiscal year) and Ireland has enacted national legislation to implement Pillar Two. Similar directives under Pillar
Two are already adopted or expected to be adopted by taxing authorities in other countries where Adient does business, with widespread implementation of the
global minimum tax in calendar years 2024 and 2025. The OECD, and its member countries, continue to release new guidance on these rules and Adient is
continuously evaluating the impact to its financial position. Currently, the global enactment of Pillar Two is not expected to materially impact Adient’s effective
tax rate or cash flows. However, Adient will continue to monitor and evaluate new legislation and guidance, which could change the current assessment.
Adient plc | Form 10-K | 24

Currently, Adient incurs losses in certain countries where it does not receive a financial statement benefit, and Adient operates in countries which have different
statutory rates. Consequently, changes in the mix and source of earnings between countries could have a material impact on Adient’s overall effective tax rate.
Legislative and other proposals that would deny governmental contracts to U.S. companies that move their corporate location abroad may affect Adient if
adopted.
Various U.S. federal and state legislative and other proposals that would deny governmental contracts to U.S. companies (and subsidiaries of U.S. companies)
that move (or have moved) their corporate location abroad may affect Adient and/or its affiliates if adopted. It is difficult to predict the likelihood that any such
proposals might be adopted, the nature of the regulations that might be promulgated, or the effect such adoptions and increased regulatory scrutiny might have
on Adient's business.
Adient's status as a foreign corporation for U.S. federal tax purposes could be affected by a change in law.
Under current law, Adient is expected to be treated as a foreign corporation for U.S. federal tax purposes and Section 7874 is not otherwise expected to apply to
Adient or its affiliates as a result of the separation from Johnson Controls International plc (the “Former Parent”) in 2016. However, changes to the rules
contained in Section 7874 and the Treasury Regulations promulgated thereunder, or other changes in law, could adversely affect Adient's and/or its affiliates'
status as foreign corporations for U.S. federal tax purposes, the ability of Adient's U.S. affiliates to use certain attributes or deductions, the Adient group's
effective tax rate and/or future tax planning for the Adient group, and any such changes could have prospective or retroactive application to Adient, its
shareholders and affiliates, and/or the separation and distribution from the Former Parent.
Prior legislative and other proposals have aimed to expand the scope of U.S. corporate tax residence. Under such proposals, Adient and/or its affiliates could be
treated as U.S. corporations if the management and control of Adient or such affiliates were determined to be located primarily in the U.S. In addition, prior
legislative and other proposals have aimed to expand the scope of Section 7874, or otherwise address certain perceived issues arising in connection with so-
called inversion transactions. Such proposals, if made retroactively effective to transactions completed during the period in which the separation from the
Former Parent occurred, could cause Adient and/or its affiliates to be treated as U.S. corporations for U.S federal tax purposes. If enacted, such proposals could
cause the Adient group to be subject to substantially greater U.S. tax liability than currently contemplated.
Transfers of Adient ordinary shares, other than by means of the transfer of book-entry interests in the Depository Trust Company, may be subject to Irish
stamp duty.
It is expected that, for the majority of transfers of Adient ordinary shares, there will not be any Irish stamp duty. Transfers of Adient ordinary shares effected by
means of the transfer of book-entry interests in the Depository Trust Company (“DTC”) are not subject to Irish stamp duty. But if Adient ordinary shares are
held directly rather than beneficially through DTC, any transfer of Adient ordinary shares could be subject to Irish stamp duty (currently at the rate of 1% of the
higher of the price paid or the market value of the shares acquired). A shareholder who directly holds Adient ordinary shares may transfer those shares into his
or her own broker account to be held through DTC (or vice versa) without giving rise to Irish stamp duty provided that there is no change in the beneficial
ownership of the shares as a result of the transfer and the transfer is not in contemplation of a sale of the shares by a beneficial owner to a third-party.
Payment of Irish stamp duty is generally a legal obligation of the transferee. The potential for stamp duty could adversely affect the price of Adient ordinary
shares.
Certain provisions in Adient's articles of association, among other things, could prevent or delay an acquisition of Adient, which could decrease the trading
price of Adient ordinary shares.
Adient’s articles of association include measures that may be found in the charters of U.S. companies and that could have the effect of deterring coercive
takeover practices, inadequate takeover bids and unsolicited offers. These provisions include, among others: (i) the power for the Board of Directors to issue
and allot preferred shares or implement a shareholder rights plan without shareholder approval in certain circumstances; (ii) a provision similar to Section 203
of the Delaware General Corporation Law, which provides that, subject to limited exceptions, persons that acquire, or are affiliated with a person that acquires,
more than 15 percent of the outstanding ordinary shares of Adient shall not engage in any business combination with Adient, including by merger,
consolidation or acquisitions of additional shares, for a three-year period following the date on which that person or its affiliates becomes the holder of more
than 15 percent of Adient's outstanding ordinary shares; (iii) rules
Adient plc | Form 10-K | 25

regarding how shareholders may present proposals or nominate directors for election at shareholder meetings; and (iv) the ability of the Adient Board of
Directors to fill vacancies on the Board of Directors in certain circumstances.
It could be difficult for Adient to obtain shareholder approval for a merger or negotiated transaction because the shareholder approval requirements for certain
types of transactions differ, and in some cases are greater, under Irish law than under U.S. state law.
In addition, several mandatory provisions of Irish law could prevent or delay an acquisition of Adient. For example, Adient will be subject to various provisions
of Irish law relating to mandatory bids, voluntary bids, requirements to make a cash offer and minimum price requirements, as well as substantial acquisition
rules and rules requiring the disclosure of interests in Adient ordinary shares in certain circumstances. Also, Irish companies, including Adient, may only alter
their memorandum of association and articles of association with the approval of the holders of at least 75% of Adient's shares present and voting in person or
by proxy at a general meeting of Adient (and certain provisions of Adient's memorandum of association and articles of association may only be amended with
the approval of the holders of at least 80% in nominal value of Adient's issued ordinary shares).
Irish law requires that Adient meet certain additional financial requirements before it declares dividends.
Under Irish law, Adient will be able to declare dividends and make distributions only out of "distributable reserves." Distributable reserves are the accumulated
realized profits of Adient that have not previously been utilized in a distribution or capitalization less accumulated realized losses that have not previously been
written off in a reduction or reorganization of capital, and include reserves created by way of a reduction of capital, including the share premium account. In
addition, no distribution or dividend may be paid or made by Adient unless the net assets of Adient are equal to, or exceed, the aggregate of Adient's called up
share capital plus non-distributable reserves and the distribution does not reduce Adient's net assets below such aggregate. Non-distributable reserves include
the share premium account, the capital redemption reserve fund and the amount by which Adient's accumulated unrealized profits that have not been previously
utilized by any capitalization exceed Adient's accumulated unrealized losses that have not previously been written off in a reduction or reorganization of
capital.
Item 1B. Unresolved Staff Comments
None.
Item 1C. Cybersecurity
Adient recognizes the critical importance of cybersecurity risk management, strategy, and governance. Adient's focus is protecting its valuable assets and data,
ensuring business continuity, and maintaining trust with customers and stakeholders. Adient’s cybersecurity risk strategy involves assessing and prioritizing
potential threats, implementing robust security controls, maintaining an incident response plan and building plans to restore business capabilities and services,
allowing prompt return to normal operations. Continuous monitoring and regular updates are essential to detect and respond to threats in real-time. While
providing users with clear guidelines and regular updates, ensuring leadership is informed about potential risks and mitigation strategies, the Adient IT
leadership team keeps executives updated on the overall cybersecurity posture and any significant incidents, while maintaining transparency with customers
and shareholders.
Risk Assessment
Adient’s IT compliance team conducts regular risk assessments and related testing for software applications, networks and other asset vulnerabilities, including
cybersecurity. Adient’s internal audit function performs an independent risk assessment, including cyber risks, to determine its annual audit plan. The IT
management team also conducts cyber maturity self-assessments at least every two years, whereby risk owners are responsible to further assess and remediate,
as applicable. Assessment risks are gauged on their potential impact and likelihood. Adient documents and monitors the efficacy of its strategic interventions
designed to minimize these risks, ensuring robust and proactive risk management. Separately, Adient applies a risk-based approach for suppliers, by conducting
risk reviews, directing surveys, and requiring adherence to its Global Supplier Standards Manual. Adient’s third-party risk assessment process is intended to
equip leadership with an objective analysis of security risk for more informed decision making and enhanced organizational resilience.
Adient plc | Form 10-K | 26

Risk Identification
Potential malicious threats are identified through both internal and external resources and tools including, but not limited to, software information and event
management software (“SIEM”), endpoint detection (“EDR”), threat intelligence services, network monitoring, and cloud monitoring. In addition,
cybersecurity risks identified through external audits, customer audits, third-party monitoring services and industry benchmarking are reviewed for likelihood
and impact and addressed accordingly.
Adient’s cybersecurity strategy is enhanced by the integration of specialized third-party services. These providers offer critical support in pinpointing,
evaluating, and managing cybersecurity risks. Adient’s suite of external resources includes threat intelligence, risk reduction, surveillance of the dark web,
external assessments, scoring services, monitoring of threats and reputation, forensic analysis, cyber insurance, consultative expertise, and legal advice.
For the year ended September 30, 2024, Adient did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially
affect Adient’s business strategy, results of operations, or financial condition. For further information about the risks associated with cybersecurity incidents,
refer to the cybersecurity risk factor in Item 1A, “Risk Factors” in this Form 10-K.
Risk Management
Adient’s management strategy includes evaluating and deploying tools and technologies for cyber protection and detection, addressing risks according to
likelihood and magnitude, performing cybersecurity related tabletops, phishing exercises, engineering and architectural reviews, and penetration tests to
simulate incidents, as well as conducting ongoing awareness trainings.
In an ever-evolving cybersecurity landscape, Adient has established a dynamic and comprehensive security posture. Adient implements a variety of technical,
physical, and organizational measures to mitigate the risks associated with cyber threats. Adient’s strategy encompasses an incident response policy with
scenario-based playbooks, a detection and response program, and a vulnerability management program. Additionally, Adient maintains disaster recovery and
business continuity plans, and conducts regular risk assessments. Systems monitoring and employee awareness training further fortify Adient’s defenses. To
underscore Adient’s commitment to information security, Adient has secured Trusted Information Security Assessment Exchange (“TISAX”) certification at
multiple international locations, ensuring Adient meets industry recognized benchmarks for protecting data.
Adient employs advanced detection tools to continuously track cybersecurity threats and incidents. Upon identifying potential risks, Adient swiftly implements
mitigation and remediation measures. Subsequently, pertinent threats are reported by Adient’s information security leadership team.
Adient follows its cybersecurity incident response policy which outlines roles, identifies incident categories, severity levels, response activities and
communication protocols that leverages the National Institute of Standards and Technology (“NIST”) Framework.
Board Oversight
Adient’s Board of Directors has delegated cybersecurity risk oversight to the Audit Committee. The Chief Information Officer and information security
leadership regularly update the Audit Committee regarding cybersecurity programs, risks and significant incidents. The Board of Directors receives a summary
of cybersecurity matters in connection with regular reports from the Audit Committee. Cybersecurity risks are also considered by the Audit Committee and the
full Board of Directors as part of the annual enterprise risk management process and the annual internal audit plan, which is reviewed and approved by the
Audit Committee.
Management Expertise
Adient’s global information operations security leader has over 30 years of experience in IT with a focus on cybersecurity for the past 25 years, reporting into
Adient’s Chief Information Officer, who has over 25 years of IT related experience and who further reports into Adient’s Executive Vice President of Global IT
& Business Services and Sustainability as well as the senior executive team and the Audit Committee and the Board, as necessary.
Adient plc | Form 10-K | 27

Item 2. Properties
The following table sets forth Adient's principal owned and leased facilities as of September 30, 2024.
Number of Locations
Operations
Administrative
Owned
Leased
Total
Owned
Leased
Total
United States
20 
10 
30 
2 
1 
3 
Mexico
8 
10 
18 
— 
1 
1 
Germany
3 
9 
12 
2 
6 
8 
Thailand
3 
11 
14 
— 
— 
— 
China
5 
25 
30 
— 
3 
3 
Czech Republic
3 
4 
7 
— 
1 
1 
Japan
5 
3 
8 
1 
1 
2 
Other EMEA
25 
28 
53 
— 
9 
9 
Other Asia
6 
20 
26 
— 
4 
4 
Other Americas
7 
2 
9 
— 
— 
— 
85 
122 
207 
5 
26 
31 
Adient considers its facilities suitable and adequate for the purposes for which they are used and do not anticipate difficulty in renewing existing leases as they
expire or in finding alternative facilities. See Part II, Item 8 of this Annual Report on Form 10-K in Note 8, "Leases," of the notes to consolidated financial
statements for information regarding lease commitments.
Item 3. Legal Proceedings
Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability, product
safety, environmental, safety and health, intellectual property, employment, commercial, contractual and various other matters. Although the outcome of any
such lawsuit, claim or proceeding cannot be predicted with certainty and some may be disposed of unfavorably to Adient, it is management's opinion that none
of these will have a material adverse effect on Adient's financial position, results of operations or cash flows. Adient accrues for potential liabilities in a manner
consistent with accounting principles generally accepted in the U.S., that is, when it is probable a liability has been incurred and the amount of the liability is
reasonably estimable.
Item 4. Mine Safety Disclosures
Not applicable.
Adient plc | Form 10-K | 28

PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Principal Market
Adient's ordinary shares are traded on the New York Stock Exchange (“NYSE”) under the symbol “ADNT.”
Holders
As of September 30, 2024, there were 22,289 shareholders of record.
Dividends
Adient suspended its cash dividends following the dividend paid in the first quarter of fiscal 2019. Any future dividends will be at the discretion of the Board of
Directors and will depend upon Adient's financial condition, results of operations, capital requirements, alternative uses of capital and other factors the Board
of Directors may consider at its discretion. In addition, under Irish law, dividends and distributions (including the payment of cash dividends or share
repurchases) may be made only from "distributable reserves" on Adient's unconsolidated balance sheet prepared in accordance with the Irish Companies Act
2014. In addition, no distribution or dividend may be paid or made by Adient unless the net assets of Adient are equal to, or exceed, the aggregate of Adient's
share capital that has been paid up or that is payable in the future plus non-distributable reserves, and the distribution does not reduce Adient's net assets below
such aggregate.
Recent Sales of Unregistered Equity Securities
None.
Repurchases of Equity Securities
In November 2022, Adient’s Board of Directors authorized the repurchase of Adient’s ordinary shares up to an aggregate purchase price of $600 million with
no expiration date. Under the share repurchase authorization, Adient’s ordinary shares may be purchased either through discretionary purchases on the open
market, by block trades or privately negotiated transactions. The number of ordinary shares repurchased, if any, and the timing of repurchases will depend on a
number of factors, including share price, trading volume and general market conditions, as well as on working capital requirements, general business
conditions and other factors. During fiscal 2023, Adient repurchased $65 million of its ordinary shares at an average price of $37.00 a share under the program.
During fiscal 2024, Adient repurchased $275 million of its ordinary shares at an average price of $29.18 a share under the program. As of September 30, 2024,
Adient has a remaining repurchase authorization of $260 million.
Share repurchase activity during the three months ended September 30, 2024 was as follows:
Periods
Total Number of
Shares (or Units)
Purchased
Average Price
Paid per Share (or
Unit)
Total Number of Shares (or
Units) Purchased as Part of
Publicly Announced Plans or
Programs
Approximate Dollar Value of
Shares (or Units) that may
yet be Purchased Under the
Plans or Programs
(in millions)
July 1 to July 31, 2024
—  $
— 
—  $
310 
August 1 to August 31, 2024
2,326,616 
21.49 
2,326,616 
260 
September 1 to September 30, 2024
— 
— 
— 
260 
2,326,616  $
21.49 
2,326,616  $
260 
Stock Performance Graph
The following information in this Item 5 is not deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C under the
Securities Exchange Act of 1934 or to the liabilities of Section 18 of the Securities Exchange
(1)
Adient plc | Form 10-K | 29

Act of 1934, and will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934,
except to the extent Adient specifically incorporates it by reference into such a filing.
The following graph shows a comparison of cumulative total shareholder return, calculated on a dividend reinvested basis, for Adient’s ordinary shares, the
Standard & Poor’s 500 Index, the Dow Jones US Auto Parts Index and a peer group for September 30, 2019 through September 30, 2024. The graph assumes
the value of the investment in Adient's ordinary shares and each index was $100 on September 30, 2019, and that all dividends were reinvested. Historic stock
price performance is not necessarily indicative of future stock price performance. Adient selected a peer group comprised of representative independent
automotive suppliers whose common stock is publicly traded. The peer group referenced in the graph below consists of Autoliv, Inc., BorgWarner, Inc.,
Cooper-Standard Holding, Inc., Forvia SE, The Goodyear Tire & Rubber Company, Huayu Automotive Systems Co. Ltd., Lear Corporation, Magna
International Inc., and Toyota Boshoku Corporation.
*$100 invested on 9/30/19 in stock or index, including reinvestment of dividends.
Fiscal year ending September 30.
Copyright© 2024 Standard & Poor’s, a division of S&P Global. All rights reserved.
Copyright© 2024 Russell Investment Group. All rights reserved.
Sep/2019
Sep/2020
Sep/2021
Sep/2022
Sep/2023
Sep/2024
Adient plc
$
100 
$
75 
$
181 
$
121 
$
160 
$
98 
S&P 500
$
100 
$
115 
$
150 
$
127 
$
154 
$
210 
Dow Jones US Auto Parts
$
100 
$
101 
$
140 
$
99 
$
119 
$
99 
Peer Group
$
100 
$
101 
$
131 
$
113 
$
170 
$
127 
Item 6. [Reserved]
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Presentation of Information
 
Adient plc | Form 10-K | 30

Unless the context requires otherwise, references to "Adient plc" or "Adient" refer to Adient plc and its consolidated subsidiaries. The information presented
herein are based on management’s perspective of Adient’s results of operations.
Forward-Looking Statements
Adient has made statements in this section and other parts of this Annual Report on Form 10-K that are management’s perspective of forward-looking
information and, therefore, are subject to risks and uncertainties. All statements in this Form 10-K other than statements of historical fact are statements that
are, or could be, deemed "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995. In this Form 10-K,
statements regarding Adient's future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt
levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as "future," "may," "will," "would," "could,"
"can," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "predict," "project" or "plan" or terms of similar meaning are also generally
intended to identify forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and
other factors, some of which are beyond Adient’s control, that could cause Adient’s actual results to differ materially from those expressed or implied by such
forward-looking statements, including, among others, risks related to the effects of local and national economic, credit and capital market conditions
(including the persistence of high interest rates, vehicle affordability and volatile currency exchange rates) on the global economy, automotive vehicle
production levels, mix and schedules, as well as the concentration of exposure to certain automotive manufacturers, shifts in market shares among vehicles,
vehicle segments or away from vehicles on which Adient has significant content, changes in consumer demand, risks associated with Adient’s joint ventures,
volatile energy markets, Adient’s ability and timing of customer recoveries for increased input costs, the availability of raw materials and component products
(including components required by Adient’s customers for the manufacture of vehicles), geopolitical uncertainties such as the Ukraine and Middle East
conflicts and the impact on the regional and global economies and additional pressure on supply chain and vehicle production, uncertainties in U.S.
administrative policy regarding trade agreements, tariffs and other international trade relations, the ability of Adient to effectively launch new business at
forecast and profitable levels, work stoppages, including due to strikes, supply chain disruptions and similar events, wage inflationary pressures due to labor
shortages and new labor negotiations, the ability of Adient to execute its restructuring plans and achieve the desired benefit, the ability of Adient to meet debt
service requirements and, terms of future financing, the impact of global tax reform legislation, global climate change and related emphasis on sustainability
matters by various stakeholders, and the ability of Adient to achieve its sustainability-related goals, cancellation of or changes to commercial arrangements,
and the ability of Adient to identify, recruit and retain key leadership. Factors that might cause differences include, but are not limited to, those discussed in
Part 1, Item 1A of this Form 10-K under the heading "Risk Factors," which are incorporated herein by reference. All information presented herein is based on
Adient's fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to Adient's fiscal years ended in September
and the associated quarters, months and periods of those fiscal years. The forward-looking statements included in this Form 10-K are made only as of the date
of this report, unless otherwise specified, and, except as required by law, Adient assumes no obligation, and disclaims any obligation, to update such statements
to reflect events or circumstances occurring after the date of this Form 10-K.
Overview
Adient is a global leader in the automotive seating supply industry and maintains relationships with the largest global automotive original equipment
manufacturers, or OEMs. 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.
Adient designs, manufactures and markets a full range of seating systems and components for passenger cars, commercial vehicles and light trucks, including
vans, pick-up trucks and sport/crossover utility vehicles. Adient operates more than 200 wholly- and majority-owned manufacturing or assembly facilities, with
operations in 29 countries. Additionally, Adient has partially-owned affiliates in China, Asia, Europe and North America. Through its global footprint and
vertical integration, Adient leverages its capabilities to drive growth in the automotive seating industry.
Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which
is inclusive of North America and South America; 2) Europe, the Middle East and Africa (“EMEA”) and 3) 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
Adient plc | Form 10-K | 31

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. Refer to Note 17, "Segment Information," of the notes to the consolidated financial
statements for additional information on Adient's reportable segments.
Factors Affecting Adient’s Operating Environment
Adient, along with the automotive industry, continues to experience lower than expected vehicle production due to softening consumer demand, uncertainties
surrounding the global adoption of electric vehicles and delayed vehicle launches in Americas along with persistent operational and market-driven headwinds
in EMEA. Refer to the consolidated results of operations and segment analysis discussion below for additional information on the impacts of these items on
Adient's results.
As a result of macroeconomic factors impacting Adient and the automotive industry, a heightened risk of impairment exists for the EMEA reporting unit as the
difference between its fair value and carrying value is less than 10% as of September 30, 2024. The decrease in EMEA’s fair value is driven by lower
forecasted vehicle volumes from weakening consumer demand, slower consumer adoption of electric vehicles, overcapacity in the industry resulting in pricing
pressure, intensifying competition from Chinese imports and lower exports to China from EMEA as domestic brands expand in China. As a result of the
heightened risk of impairment, Adient will continuously assess the changing macroeconomic conditions in EMEA including the outlook for consumer demand
for vehicles and other factors impacting the region, along with the need for further restructuring actions, all of which impact Adient’s ability to achieve its
projected long-term operating performance. Refer to Note 6, “Goodwill and Other Intangible Assets,” of the notes to the consolidated financial statements for
additional information.
Global Automotive Industry
Adient conducts its business globally in the automotive industry, which is highly competitive and sensitive to economic, political and social factors in the
various regions. During fiscal 2024, global light vehicle production increased 1.5%, driven by improved production volumes predominately in China. The
current operating environment varies by region, being impacted by weakening consumer demand due to new vehicle affordability and high interest rates along
with slower electric vehicle adoption rates.
Light vehicle production levels by geographic region are provided below:
Light Vehicle Production
(units in millions)
2024
Change
2023
Change
2022
Global
89.4 
1.5 %
88.1 
8.0 %
81.6 
North America
15.6 
0.6 %
15.5 
9.9 %
14.1 
South America
2.8 
-6.7 %
3.0 
7.1 %
2.8 
Europe
16.2 
-2.4 %
16.6 
15.3 %
14.4 
Other EMEA
1.3 
18.2 %
1.1 
-8.3 %
1.2 
China
29.5 
7.7 %
27.4 
2.6 %
26.7 
Asia, excluding China
24.0 
-2.0 %
24.5 
9.4 %
22.4 
Source: S&P Global, October 2024
Financial Results Summary
Significant aspects of Adient's financial results for fiscal 2024 include the following:
•
Adient recorded net sales of $14,688 million for fiscal 2024, representing a decrease of $707 million when compared to fiscal 2023. The decrease in net
sales is attributable to Adient's lower overall production volumes in all regions, the unfavorable impact of foreign currencies, and unfavorable material
economics recoveries, partially offset by favorable net pricing adjustments.
•
Gross profit was $928 million, or 6.3% of net sales for fiscal 2024 compared to $1,033 million, or 6.7% of net sales for fiscal 2023. Profitability, including
gross profit as a percentage of net sales, was lower due to lower production volumes in all regions, the unfavorable impact of foreign currencies,
unfavorable operating performance in EMEA, unfavorable
Adient plc | Form 10-K | 32

material economics, net of recoveries and non-recurring net benefits largely associated with insurance recoveries in fiscal 2023, partially offset by
favorable operating performance in Americas and Asia.
•
Equity income was $90 million for fiscal 2024, which compares to equity income of $84 million for fiscal 2023. The increase is primarily attributable to
favorable operating performance at partially-owned affiliates, partially offset by the impact of the KEIPER supply agreement modifications executed in
fiscal 2023 and the unfavorable impact of foreign currencies.
•
Net income attributable to Adient was $18 million for fiscal 2024, compared to an income of $205 million for fiscal 2023. The lower net income in fiscal
2024 is primarily attributable to lower overall production volumes, higher restructuring and impairment costs, unfavorable material economics, net of
recoveries, higher income tax expense, the unfavorable impact of foreign currencies and prior year non-recurring net benefits largely associated with
insurance recoveries, partially offset by favorable net operating performance, lower Selling, general and administrative expenses (“SG&A”) mainly driven
by lower incentive compensation expense and lower net engineering and other administrative spending, higher equity income and lower income
attributable to noncontrolling interests.
Consolidated Results of Operations
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net sales
$
14,688 
(5)%
$
15,395 
9%
$
14,121 
Cost of sales
13,760 
(4)%
14,362 
8%
13,314 
Gross profit
928 
(10)%
1,033 
28%
807 
Selling, general and administrative expenses
507 
(8)%
554 
(7)%
598 
Restructuring and impairment costs
168 
>100%
40 
60%
25 
Equity income
90 
7%
84 
12%
75 
Earnings before interest and income taxes
343 
(34)%
523 
>100%
259 
Net financing charges
189 
(3)%
195 
(9)%
215 
Other pension expense (income)
21 
(36)%
33 
>100%
(10)
Income before income taxes
133 
(55)%
295 
>100%
54 
Income tax provision
32 
>100%
— 
>(100)%
94 
Net income (loss)
101 
(66)%
295 
>100%
(40)
Income attributable to noncontrolling interests
83 
(8)%
90 
13%
80 
Net income (loss) attributable to Adient
$
18 
(91)%
$
205 
>100%
$
(120)
Net Sales
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net sales
$
14,688 
(5)%
$
15,395 
9%
$
14,121 
Net sales decreased by $707 million, or 5%, during fiscal 2024 as compared to fiscal 2023 due to lower overall production volumes in all regions that are
resulting from softening consumer demand and weaker product mix in EMEA along with slower than expected product launches and production disruptions at
certain customers in the Americas including the impact of the United Auto Workers ("UAW") strike during the first fiscal quarter ($697 million), unfavorable
material economics recoveries ($93 million) and the unfavorable impact of foreign currencies ($16 million), partially offset by net favorable pricing
adjustments ($99 million).
Adient plc | Form 10-K | 33

Net sales increased by $1,274 million, or 9%, in fiscal 2023 as compared to fiscal 2022 due to higher overall production volumes in all operating segments
($1,558 million) and net favorable pricing adjustments ($141 million), partially offset by the unfavorable impact of foreign currencies ($301 million) and
unfavorable material economics recoveries ($124 million).
Refer to the segment analysis below for a discussion of segment net sales.
Cost of Sales / Gross Profit
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Cost of sales
$
13,760
(4)%
$
14,362
8%
$
13,314
Gross profit
928
(10)%
1,033
28%
807
% of sales
6.3 %
6.7 %
5.7 %
Cost of sales decreased by $602 million, or 4%, and gross profit decreased by $105 million, or 10%, during fiscal 2024 as compared to fiscal 2023. The year
over year decrease in cost of sales was primarily due to lower production volumes ($522 million), favorable material economics ($79 million), favorable
operating performance driven by lower freight costs ($25 million), favorable supplier pricing adjustments ($20 million), the favorable impact of the KEIPER
supply agreement modifications ($8 million) and lower depreciation expense ($2 million), partially offset by non-recurring net benefits largely associated with
insurance recoveries in fiscal 2023 ($29 million), the unfavorable impact of foreign currencies ($18 million), and higher restructuring related charges ($5
million). Gross profit for fiscal 2024 was unfavorably impacted by lower production volumes, non-recurring net benefits largely associated with insurance
recoveries in fiscal 2023, unfavorable material economics, net of recoveries and the unfavorable impact of foreign currencies, partially offset by favorable
operating performance.
Cost of sales increased by $1,048 million, or 8%, and gross profit increased by $226 million in fiscal 2023 as compared to fiscal 2022. The year-over-year
increase in cost of sales was due to higher production volumes ($1,312 million), increased utilities and labor costs along with operating inefficiencies
associated with supply chain issues ($104 million), and the impact of fiscal 2022 gains associated with retrospective recoveries of Brazil indirect tax credits
($29 million), partially offset by the favorable impact of foreign currencies ($282 million), favorable supplier pricing ($69 million), non-recurring fiscal 2023
net benefits largely associated with insurance recoveries ($29 million), the favorable impact of the KEIPER supply agreement modifications ($11 million), and
lower depreciation expense ($6 million). Gross profit was favorably impacted by higher overall production volumes, net favorable pricing adjustments, and
non-recurring net benefits largely associated with insurance recoveries, partially offset by higher utilities and labor costs, and unfavorable net material
economics.
Refer to the segment analysis below for a discussion of segment profitability.
Selling, General and Administrative Expenses
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Selling, general and administrative expenses
$
507 
(8)%
$
554 
(7)%
$
598 
% of sales
3.5 %
3.6 %
4.2 %
SG&A for fiscal 2024 decreased by $47 million, or 8%, as compared to fiscal 2023. The year over year decrease in SG&A was primarily due to lower
compensation expense including performance-based incentive compensation costs and other compensation related austerity measures ($32 million), lower net
engineering and other administrative spending ($16 million), lower depreciation and amortization expense ($6 million), the favorable impact of foreign
currencies ($2 million) and lower transaction costs ($2 million), partially offset by a one-time loss on business divestiture ($8 million) and other non-recurring
items ($3 million).
SG&A in fiscal 2023 decreased by $44 million, or 7%, as compared to fiscal 2022. The-year-over year decrease in SG&A is attributable to the favorable impact
of foreign currencies ($12 million), one-time gain on sale of a restructured facility ($10 million), lower transaction costs ($5 million), non-recurring
unfavorable fiscal 2022 costs ($17 million), lower overall
Adient plc | Form 10-K | 34

engineering and other administrative spending ($15 million), and lower depreciation and amortization expense ($4 million), partially offset by higher
compensation expense including stock-based and performance-based incentive compensation costs due in part to the non-recurrence of fiscal 2022 austerity
measures ($19 million).
Refer to the segment analysis below for a discussion of segment profitability.
Restructuring and Impairment Costs
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Restructuring and impairment costs
$
168 
>100%
$
40 
60%
$
25 
Restructuring and impairment costs were higher by $128 million during fiscal 2024 due to restructuring actions taken primarily in EMEA in response to the
macroeconomic factors occurring in the European automotive market causing reduced production volumes and to ensure Adient maintains a competitive cost
structure by reducing labor costs and increasing efficiencies. Adient also recorded a $9 million impairment on its Adient Aerospace investment in fiscal 2024
contributing to the increase year over year. Adient continues to monitor and assess market conditions within the automotive industry in each of its regions, with
particular focus on EMEA in the near term, and will consider taking further restructuring action as needed to stay competitive and to position Adient to serve
the needs of its customers.
Restructuring and impairment costs were higher by $15 million in fiscal 2023 as compared to fiscal 2022 due primarily to higher levels of restructuring actions
taken in EMEA. The restructuring actions related to cost reduction initiatives and consisted primarily of workforce reductions.
Refer to Note 15, "Restructuring and Impairment Costs," of the notes to the consolidated financial statements and the discussion under Liquidity and Capital
Resources below for additional information related to Adient's restructuring plans.
Equity Income
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Equity income
$
90 
7%
$
84 
12%
$
75 
Equity income was $90 million for fiscal 2024, compared to $84 million for fiscal 2023. The increase is primarily attributable to favorable production volumes
and operating performance at partially-owned affiliates ($17 million) and the non-recurrence of prior year non-cash impairment charges recorded on certain of
Adient's investments in non-consolidated affiliates ($3 million), partially offset by the impact of the KEIPER supply agreement modifications executed in fiscal
2023 ($8 million), and the unfavorable impact of foreign currencies ($5 million).
Equity income was $84 million in fiscal 2023 compared to $75 million in fiscal 2022. The increase is primarily attributable to higher production volumes and
favorable operating performance at Adient's partially-owned affiliates ($28 million), one-time gain on divestiture of investment at an affiliate ($4 million), and
lower non-cash impairment charges recorded on certain of Adient's investments in non-consolidated affiliates ($2 million), partially offset by the impact of the
KEIPER supply agreement modifications ($17 million), the unfavorable impact of foreign currencies ($7 million), and restructuring-related activities at certain
affiliates ($1 million).
Refer to Note 3, "Acquisitions and Divestitures," and Note 18, "Nonconsolidated Partially-Owned Affiliates," of the notes to the consolidated financial
statements for more information.
Adient plc | Form 10-K | 35

Net Financing Charges
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net financing charges
$
189 
(3)%
$
195 
(9)%
$
215 
Net financing charges decreased by $6 million during fiscal 2024 as compared to fiscal 2023 due primarily to premiums paid and deferred financing cost write
offs associated with repurchasing of debt during fiscal 2023. Net financing charges decreased by $20 million in fiscal 2023 as compared to fiscal 2022 due to
higher premiums paid to tender outstanding debt and higher accelerated expensing of deferred financing costs during fiscal 2022.
Refer to Note 9, "Debt and Financing Arrangements," of the notes to the consolidated financial statements for information related to the components of Adient's
net financing charges.
Other Pension Expense (Income)
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Other pension expense (income)
$
21 
(36)%
$
33 
>100%
$
(10)
Other pension expense (income) consists of mark-to-market, curtailment and settlement adjustments, and non-service components of net periodic pension costs
of Adient's retirement plans. Other pension expense was lower by $16 million in fiscal 2024 as compared to fiscal 2023 due primarily to a $13 million current
year mark-to-market loss (compared to a $19 million loss in fiscal 2023) and an $8 million prior year curtailment loss primarily associated with employee
termination benefit plans in the Americas segment.
The higher fiscal 2023 expense compared to fiscal 2022 is due primarily to a $19 million fiscal 2023 mark-to-market loss (compared to a $8 million gain in
fiscal 2022), an $8 million curtailment loss primarily associated with employee termination benefit plans in the Americas segment, and higher pension interest
expense. Refer to Note 14, "Retirement Plans," of the notes to the consolidated financial statements for information related to the components of Adient's net
periodic pension costs.
Income Tax Provision
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Income tax provision
$
32 
>100%
$
— 
>(100)%
$
94 
The fiscal 2024 income tax expense of $32 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for
losses in jurisdictions with valuation allowances, the repatriation of foreign earnings, $17 million of tax expense related to foreign exchange remeasurements of
tax balances primarily in Mexico and tax expense from the establishment of valuation allowances at certain subsidiaries, partially offset by tax benefits from
the release of uncertain tax positions due to audit closures and from the release of valuation allowances at certain subsidiaries.
Adient reviews the realizability of its deferred tax assets on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required.
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or combined group recording the net
deferred tax asset are considered, along with any other positive or negative evidence. All of the factors that Adient considers in evaluating whether and when to
establish or release all or a portion of the deferred tax asset valuation allowance involve significant judgment. Since future financial results may differ from
previous estimates, periodic adjustments to Adient's valuation allowances may be necessary.
Given current earnings and anticipated future earnings at certain subsidiaries, Adient believes that there is a possibility that sufficient positive evidence may
become available that would allow the release of all, or a portion of, valuation allowances at certain subsidiaries within the next twelve months. A release of
valuation allowances, if any, would result in the recognition of certain deferred tax assets which could generate a material income tax benefit for the period in
which such release is recorded.
Adient plc | Form 10-K | 36

As a result of Adient's fiscal 2024 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other
positive and negative evidence, Adient determined it was more likely than not that certain deferred tax assets would be realizable and recorded an income tax
benefit of $14 million in China, $8 million in Mexico, $7 million in France, and $6 million in Japan to release valuation allowances. In addition, Adient
determined it was necessary to establish valuation allowances on certain deferred tax assets in Poland and Mexico, recording tax expense of $14 million and $5
million, respectively. Adient continues to record valuation allowances on certain deferred tax assets in Germany, Hungary, Luxembourg, Mexico, Poland,
Spain, the United Kingdom, the U.S. and other jurisdictions as it remains more likely than not that they will not be realized.
The fiscal 2023 income tax expense of $0 million was lower than the Irish statutory rate of 12.5% primarily due to the release of valuation allowances in
Mexico, partially offset by the inability to recognize a tax benefit for losses in jurisdictions with valuation allowances, the repatriation of foreign earnings, and
foreign tax rate differentials.
As a result of Adient's fiscal 2023 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other
positive and negative evidence, Adient determined it was more likely than not that certain deferred tax assets in Mexico would be realizable and recorded an
income tax benefit of $114 million to release valuation allowances. In addition, Adient determined it was necessary to release valuation allowances and
establish valuation allowances in other jurisdictions that did not have a material impact on Adient’s financial statements.
The fiscal 2022 income tax expense of $94 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to recognize a tax benefit for
losses in jurisdictions with valuation allowances, the establishment of valuation allowances in certain jurisdictions, and the repatriation of foreign earnings,
partially offset by tax benefits related to the release of valuation allowances in certain jurisdictions.
As a result of Adient's fiscal 2022 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other
positive and negative evidence, Adient determined it was more likely than not that certain deferred tax assets in Canada, Japan, and other jurisdictions would
not be realized and recorded income tax expense of $12 million, $3 million and $3 million, respectively, to establish valuation allowances. Additionally, Adient
determined it was more likely than not that deferred tax assets in the Czech Republic and other jurisdictions would be realizable and recorded income tax
benefit of $11 million and $2 million, respectively, to release valuation allowances.
Adient is subject to income taxes in Ireland, the U.S. and other non-U.S. jurisdictions. Judgment is required in determining its worldwide provision for income
taxes and recording the related assets and liabilities. In the ordinary course of Adient's business, there are many transactions and calculations where the ultimate
tax determination is uncertain. Adient's income tax returns for various fiscal years remain under audit by the respective tax authorities. Although the outcome of
tax audits is always uncertain, management believes that it has appropriate support for the positions taken on its tax returns and that its annual tax provisions
included amounts sufficient to pay assessments, if any, which may be proposed by the taxing authorities. Nonetheless, the amounts ultimately paid, if any, upon
resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year.
Adient does not generally provide for additional income taxes which would become payable upon repatriation of undistributed earnings of wholly owned
foreign subsidiaries. Adient's intent is for such earnings to be reinvested by the subsidiaries or to be repatriated only when it would be tax efficient.
Income Attributable to Noncontrolling Interests
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Income attributable to noncontrolling interests
$
83 
(8)%
$
90 
13%
$
80 
The decrease in income attributable to noncontrolling interests during fiscal 2024 compared to fiscal 2023 is attributable to lower production volumes
associated with new program launches at certain affiliates, which is partially offset by a $5 million adjustment to increase income attributable to noncontrolling
interests recorded in fiscal 2024 but related to fiscal 2023.
The $10 million increase in income attributable to noncontrolling interests in fiscal 2023 as compared to fiscal 2022 is primarily attributable to higher
production volumes at affiliates in various jurisdictions.
Adient plc | Form 10-K | 37

Net Income (Loss) Attributable to Adient
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net income (loss) attributable to Adient
$
18 
(91)%
$
205 
>100%
$
(120)
Net income attributable to Adient was $18 million for fiscal 2024, compared to an income of $205 million for fiscal 2023. The lower net income in fiscal 2024
is primarily attributable to lower overall production volumes, higher restructuring and impairment costs, unfavorable material economics, net of recoveries,
higher income tax expense, the unfavorable impact of foreign currencies and prior year non-recurring net benefits largely associated with insurance recoveries,
partially offset by favorable net operating performance, lower SG&A expenses mainly driven by lower incentive compensation expense and lower net
engineering and other administrative spending, higher equity income and lower income attributable to noncontrolling interests.
Net income attributable to Adient was $205 million in fiscal 2023, compared to $120 million of net loss attributable to Adient in fiscal 2022. The higher net
income in fiscal 2023 is primarily attributable to higher overall production volumes, favorable pricing and operating performance, one-time insurance
recoveries, one-time income tax benefit related to the release of certain tax valuation allowances, lower SG&A expenses, lower net financing charges, and
higher equity income, partially offset by unfavorable material economics, higher other pension expense, higher restructuring cost, higher income attributable to
noncontrolling interests, and the unfavorable impact of foreign currencies.
Comprehensive Income (Loss) Attributable to Adient
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Comprehensive income (loss) attributable to Adient
$
167 
(20)%
$
208 
>100%
$
(338)
Comprehensive income attributable to Adient was $167 million in fiscal 2024 compared to $208 million of comprehensive income in fiscal 2023. The decrease
of $41 million is due primarily to lower net income ($194 million), higher realized and unrealized losses on derivatives ($53 million) and higher
comprehensive income attributable to noncontrolling interests ($15 million), partially offset by the favorable impact of foreign currency translation adjustments
($221 million).
Comprehensive income attributable to Adient was $208 million in fiscal 2023 compared to $338 million of comprehensive loss in fiscal 2022. The increase of
$546 million is due primarily to higher net income ($335 million), the favorable impact of foreign currency translation adjustments ($233 million) and the
impact of realized and unrealized gains on derivatives ($21 million), partially offset by higher comprehensive income attributable to noncontrolling interests
($42 million).
Segment Analysis
Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which
is inclusive of North America and South America; 2) EMEA and 3) 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. 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.
Adient plc | Form 10-K | 38

The following table summarizes net sales and adjusted EBITDA by reportable segment for fiscal 2024, 2023 and 2022:
(in millions)
Americas
EMEA
Asia
Corporate/Eliminations
Consolidated
Fiscal 2024
Net sales
$
6,763  $
5,029  $
2,989  $
(93)
$
14,688 
Adjusted EBITDA
$
375  $
155  $
439  $
(89)
$
880 
Fiscal 2023
Net sales
$
7,220  $
5,195  $
3,085  $
(105)
$
15,395 
Adjusted EBITDA
$
336  $
232  $
464  $
(94)
$
938 
Fiscal 2022
Net sales
$
6,557  $
4,764  $
2,926  $
(126)
$
14,121 
Adjusted EBITDA
$
242  $
138  $
383  $
(88)
$
675 
The following is a reconciliation of Adient's reportable segments' adjusted EBITDA to income before income taxes:
Year Ended
September 30,
(in millions)
2024
2023
2022
Adjusted EBITDA
Americas
$
375  $
336  $
242 
EMEA
155 
232 
138 
Asia
439 
464 
383 
Subtotal
969 
1,032 
763 
Corporate-related costs 
(89)
(94)
(88)
Restructuring and impairment costs 
(168)
(40)
(25)
Purchase accounting amortization 
(48)
(52)
(54)
Restructuring related activities
— 
2 
(6)
Loss on disposal transactions 
(7)
(6)
— 
Depreciation
(285)
(290)
(298)
Equity based compensation
(31)
(34)
(29)
Other items 
2 
5 
(4)
Earnings before interest and income taxes
343 
523 
259 
Net financing charges
(189)
(195)
(215)
Other pension income (expense)
(21)
(33)
10 
Income before income taxes
$
133  $
295  $
54 
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. During fiscal 2024, an impairment
charge of $9 million related to Adient’s investment in Adient Aerospace was recorded. During fiscal 2022, an impairment charge of $4 million related to the
withdrawal from and sale of its operations in Russia, and a held-for-sale impairment charge of $6  million were recorded in EMEA. Refer to Note 15,
“Restructuring and Impairment Costs,” of the notes to the consolidated financial statements for more information.
(3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.
(1)
(2)
(3)
 (4)
(5)
(6)
Adient plc | Form 10-K | 39

(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. Fiscal 2024 and 2023 also each include a non-recurring $10 million gain on the sale of two restructured facilities in Americas.
(5) Fiscal 2024 reflects 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), partially offset by a $1 million gain on sale of a nonconsolidated partially-owned affiliate. Fiscal 2023 reflects $3 million
and $3 million of non-cash impairment related to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively,
(6) Fiscal 2024 reflects a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil, partially offset by
$1 million of transaction costs and a $1 million one-time divestiture related impact at an affiliate. Fiscal 2023 reflects $4 million of one-time divestiture gain at
an affiliate and $4 million of a gain associated with the retrospective recovery of indirect tax credits in Brazil, partially offset by $3 million of transaction costs.
Fiscal 2022 includes $3 million and $7 million of non-cash impairments of certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia
and EMEA, respectively, $8 million of transaction costs, a $14 million charge related to a non-recurring contract related settlement, $1 million of accounts
receivable allowances resulting from the withdrawal from and sale of operations in Russia, and $2 million of loss on finalization of asset sale in Turkey,
partially offset by a gain of $32 million associated with the retrospective recovery of indirect tax credits in Brazil.
Americas
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net sales
$
6,763 
(6)%
$
7,220 
10%
$
6,557 
Adjusted EBITDA
$
375 
12%
$
336 
39%
$
242 
Net sales decreased in fiscal 2024 by $457 million primarily due to lower current year production volumes resulting from weakening consumer demand, slower
than expected product launches and the UAW strike-related disruptions during the first quarter of fiscal 2024 at certain customers ($470 million), unfavorable
material economics recoveries ($55 million) and the unfavorable impact of foreign currencies ($21 million), partially offset by net favorable pricing
adjustments ($89 million).
Adjusted EBITDA increased in fiscal 2024 by $39 million due to net favorable pricing adjustments and operational improvements including lower freight costs
and the impact of the KEIPER supply agreement modifications ($145 million) and lower SG&A expenses driven by lower compensation expense, including
lower performance based compensation costs and other compensation related austerity measures, along with improved engineering recoveries ($48 million),
partially offset by lower current year production volumes ($89 million, including the UAW strike-related impact during the first quarter of fiscal 2024 of $25
million), the unfavorable impact of foreign currencies ($27 million), unfavorable material economics, net of recoveries ($25 million) and non-recurring net
benefits largely associated with insurance recoveries in fiscal 2023 ($13 million).
Net sales increased in fiscal 2023 by $663 million primarily as a result of higher production volumes ($669 million) and favorable net pricing adjustments ($73
million), partially offset by the unfavorable impact of material economics recoveries ($79 million).
Adjusted EBITDA increased in fiscal 2023 by $94 million due to higher production volumes ($93 million), net material margin improvements including the
impact of the KEIPER supply agreement modifications ($79 million), non-recurring net benefits associated with insurance recoveries ($13 million), and higher
equity income ($1 million), partially offset by higher labor, utility and launch costs ($58 million), unfavorable material economics, net of recoveries ($17
million), higher administrative and engineering expense due in part to the non-recurrence of fiscal 2022 austerity measures ($8 million), and the unfavorable
impact of foreign currencies ($9 million).
Adient plc | Form 10-K | 40

EMEA
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net sales
$
5,029 
(3)%
$
5,195 
9%
$
4,764 
Adjusted EBITDA
$
155 
(33)%
$
232 
68%
$
138 
Net sales decreased in fiscal 2024 by $166 million primarily due to lower production volumes resulting from weakening consumer demand for new vehicles
and product mix ($212 million), unfavorable material economics recoveries ($36 million) and net unfavorable pricing adjustments ($9 million), partially offset
by the favorable impact of foreign currencies ($91 million).
Adjusted EBITDA decreased in fiscal 2024 by $77 million due to lower production volumes ($48 million), higher operating costs associated with lower levels
of customer orders, which were often reduced with little warning, leading to unplanned downtime and operating inefficiencies ($21 million), non-recurring net
benefits largely associated with insurance recoveries in fiscal 2023 ($17 million) and the non-recurrence of prior year gains on sale of assets ($6 million),
partially offset by the favorable impact of foreign currencies ($5 million), increased equity income ($4 million), favorable material economics, net of recoveries
($4 million) and lower administrative and engineering expense ($2 million).
Net sales increased in fiscal 2023 by $431 million primarily as a result of higher production volumes ($511 million), and net favorable pricing adjustments ($87
million), partially offset by the unfavorable impact of foreign currency ($124 million) and the unfavorable impact of material economics recoveries ($43
million).
Adjusted EBITDA increased in fiscal 2023 by $94 million due primarily to net material margin improvements ($117 million), higher production volumes ($81
million), non-recurring net benefits associated with insurance recoveries ($17 million), the favorable impact of foreign currencies ($22 million), higher equity
income ($4 million), and lower administrative and engineering expense ($6 million), partially offset by unfavorable material economics, net of recoveries ($111
million) and higher input costs including freight, labor and utilities ($42 million).
Refer to the “Factors Affecting Adient’s Operating Environment” included above in Item 7 within the Management’s Discussion and Analysis section for more
information.
Asia
Year Ended
September 30,
(in millions)
2024
Change
2023
Change
2022
Net sales
$
2,989 
(3)%
$
3,085 
5%
$
2,926 
Adjusted EBITDA
$
439 
(5)%
$
464 
21%
$
383 
Net sales decreased in fiscal 2024 by $96 million due to the unfavorable impact of foreign currencies ($85 million), lower production volumes due primarily to
program changeovers, program launches and lower volumes on foreign OEM platforms in China ($29 million) and unfavorable material economics recoveries
($2 million), partially offset by net favorable pricing adjustments ($20 million).
Adjusted EBITDA decreased in fiscal 2024 by $25 million due to lower current year production volumes and unfavorable product mix ($38 million), the
unfavorable impact of foreign currencies ($19 million) and higher administrative and engineering expense ($6 million), partially offset by net favorable pricing
adjustments and improved labor efficiencies ($30 million), favorable material economics, net of recoveries ($6 million) and higher equity income which
includes the unfavorable impact of the KEIPER supply agreement modifications ($2 million).
Net sales increased in fiscal 2023 by $159 million due to higher production volumes and mix ($360 million), partially offset by the unfavorable impact of
foreign currencies ($180 million), net unfavorable pricing adjustments ($19 million), and the unfavorable impact of material economics recoveries ($2 million).
Adient plc | Form 10-K | 41

Adjusted EBITDA increased in 2023 by $81 million due primarily to favorable volume and mix ($72 million), net material margin improvements including the
impact of the KEIPER supply agreement modifications and including certain favorable pricing adjustments in China that are non-recurring ($25 million),
higher equity income at partially-owned affiliates ($13 million), favorable operating performance ($17 million), and favorable impact of material economics,
net of recoveries ($4 million), partially offset by the unfavorable impact of foreign currencies ($26 million), the impact of the KEIPER supply agreement
modifications on equity income ($18 million), and higher administrative and engineering expense ($6 million).
Liquidity and Capital Resources
Adient's primary liquidity needs are to fund general business requirements, including working capital, capital expenditures, restructuring costs and debt service
requirements. Adient's principal sources of liquidity are cash flows from operating activities, the revolving credit facility and other debt issuances, and existing
cash balances. Adient actively manages its working capital and associated cash requirements and continually seeks more effective uses of cash. During fiscal
2023, Adient announced a share repurchase authorization (up to $600 million) with no expiration date, wherein Adient has taken and will continue to take a
measured approach as to the timing and amount of share repurchases as part of its assessment of the most effective use of cash. Working capital is highly
influenced by the timing of cash flows associated with sales and purchases, and therefore can be difficult to manage at times. See below and refer to Note 9,
"Debt and Financing Arrangements," of the notes to consolidated financial statements for discussion of financing arrangements. Following the first quarter of
fiscal 2019 dividend payout, Adient suspended future dividends. Adient believes that its current financial resources will be sufficient to fund its liquidity
requirements for at least the next twelve months.
Indebtedness
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 and certain other restrictions, including a minimum fixed
charge coverage ratio. The ABL Credit Facility, as amended in November 2022, is set to mature on November 2, 2027, subject to certain springing maturity
provisions. Adient paid $7 million in debt issuance costs for the amended ABL Credit Facility and 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 Krona. It also provides flexibility for future amendments to the ABL Facility to incorporate certain
sustainability-based pricing provisions. 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. Interest is payable on the
ABL Credit Facility at a fluctuating rate of interest determined by reference to Term Secured Overnight Financing Rate (“SOFR”), in the case of amounts
outstanding in Dollars, Euro Interbank Offered Rate (“EURIBOR”), in the case of amounts outstanding in Euros, Stockholm Interbank Offered Rate
(“STIBOR”), in the case of amounts outstanding in Swedish Krona and Sterling Over Night Indexed Average (“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 September 30, 2024, Adient had not drawn down on the ABL Credit
Facility and had availability under this facility of approximately $779 million (net of $11 million of letters of credit).
In addition, Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintains a senior secured term loan facility (the “Term Loan B
Agreement”) that had an outstanding balance of $632 million as of September 30, 2024. During fiscal 2023, Adient prepaid $350 million of the Term Loan B
Agreement principal, and wrote off $2 million of previously deferred financing costs to net financing charges. During fiscal 2024, the Term Loan B Agreement
was amended to reduce the applicable margin from 3.25% to 2.75% and extend final maturity to January 31, 2031 (which maturity was previously April 8,
2028). Adient incurred $5 million of costs associated with the modification, of which $4 million was recorded as deferred financing costs. 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 due at
final maturity. 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.
The ABL Credit Facility and Term Loan B Agreement contain covenants that are usual and customary for facilities and debt instruments of this type and that,
among other things, restrict the ability of Adient and its restricted subsidiaries to: create certain liens and enter into sale and lease-back transactions; create,
assume, incur or guarantee certain indebtedness; pay
Adient plc | Form 10-K | 42

dividends or make other distributions on, or repurchase or redeem, Adient’s capital stock or certain other debt; make other restricted payments; and consolidate
or merge with, or convey, transfer or lease all or substantially all of Adient’s and its restricted subsidiaries’ assets, to another person. These covenants are
subject to a number of other limitations and exceptions set forth in the agreements. The agreements also provide for customary events of default, including, but
not limited to, cross-default clauses with other debt arrangements, failure to pay principal and interest, failure to comply with covenants, agreements or
conditions, and certain events of bankruptcy or insolvency involving Adient and its significant subsidiaries.
During fiscal 2023, Adient Global Holdings Ltd. (“AGH”), a wholly-owned subsidiary of Adient, issued (i) $500 million (net proceeds of $494 million) in
aggregate principal amount of 7% senior secured notes due 2028 and (ii) $500 million (net proceeds of $494 million) in aggregate principal amount of 8.250%
senior unsecured notes due 2031. Interest on both of these notes are paid on April 15 and October 15 each year, beginning on October 15, 2023. These notes
contain covenants that are usual and customary. The total net proceeds of $988 million along with cash on hand were used primarily to redeem $350 million of
the senior secured term loan facility under the Term Loan B Agreement as described above, and repurchase €700  million ($743  million) of the 3.50%
unsecured notes due 2024 as described below. Adient paid $16 million in debt issuance costs for these new debt issuances.
AGH also maintains 4.875% USD-denominated unsecured notes due 2026. The aggregate principal amount of these notes was $795 million as of September
30, 2024 and 2023. AGH also paid the remaining balance of its 3.50% Euro denominated unsecured notes of €123 million ($132 million) in August 2024 upon
final maturity. During fiscal 2023, Adient repurchased €700  million ($743  million) of the 3.50% unsecured notes due 2024 at a premium of €7  million
($7 million) plus €3 million ($3 million) of accrued and unpaid interest, and expensed €2 million ($2 million) of previously deferred financing costs to net
financing charges.
During fiscal 2022, Adient repurchased the entirety of its $600 million, 9.00% Senior First Lien Notes due 2025 at a premium of $34 million plus $19 million
of accrued interest.
Sources of Cash Flows
 
Year Ended
September 30,
(in millions)
2024
2023
2022
Cash provided (used) by operating activities
$
543  $
667  $
274 
Cash provided (used) by investing activities
(253)
(229)
484 
Cash provided (used) by financing activities
(502)
(271)
(1,273)
Capital expenditures
(266)
(252)
(227)
Cash flows from operating activities
Fiscal 2024 compared to Fiscal 2023: The decrease in cash flows from operating activities is primarily due to lower profitability driven by lower production
volumes in fiscal 2024 along with unfavorable changes to working capital year over year.
Fiscal 2023 compared to Fiscal 2022: The increase in cash flows from operating activities is primarily due to the higher net income attributable to Adient in
fiscal 2023 and favorable overall changes to working capital year-over-year due to lower levels of inventory and higher levels of current liabilities. See the
working capital section below for further information on changes in working capital.
Cash flows from investing activities
Fiscal 2024 compared to Fiscal 2023: The increase in cash used by investing activities is primarily attributable to higher capital expenditures as further
explained below and by lower levels of proceeds from asset sales.
Fiscal 2023 compared to Fiscal 2022: The increase in cash used by investing activities is primarily related to the non-recurrence of the fiscal 2022 cash inflows
associated with business divestitures including the $651 million of proceeds received related to the 2021 Yanfeng Transaction (as defined and described in
Form 10-K for the fiscal year ended September 30, 2021), $46 million in proceeds received from the sale of the assets in Turkey, and the collection of $41
million of deferred proceeds related to the 2020 Yanfeng Transaction (as defined and described in Form 10-K for the fiscal year ended September 30, 2021).
Adient plc | Form 10-K | 43

Cash flows from financing activities
Fiscal 2024 compared to Fiscal 2023: The increase in cash used by financing activities is attributable to $275 million common stock repurchases transacted in
fiscal 2024 ($65 million in fiscal 2023) and the repayment of the €123 million ($132 million) unsecured notes, partially offset by the non-recurrence of prior
year debt refinancing activities. Refer to Note 9, "Debt and Financing Arrangements," and Note 13, "Equity and Noncontrolling Interests," of the notes to the
consolidated financial statements for additional information.
Fiscal 2023 compared to Fiscal 2022: The decrease in cash used by financing activities is attributable to fiscal 2022 financing activities. This includes
repayment of long-term debt of $744 million (including $34 million of premiums), amounts paid to acquire the noncontrolling interest of Chongqing Adient
Automotive Components Co., Ltd. ($153 million), and higher dividend payments to noncontrolling interests. These are partially offset by fiscal 2023 debt
refinancing activities totaling $102 million and common stock repurchases of $65 million.
Capital expenditures
Fiscal 2024 compared to Fiscal 2023: Higher capital expenditures in fiscal 2024 were due primarily to timing of program spend on product launches in
EMEA.
Fiscal 2023 compared to Fiscal 2022: A $25 million increase in capital expenditures is primarily associated with new program launches particularly in EMEA
and Asia, and additional investments in continuous improvement initiatives in all regions.
Working capital
(in millions)
September 30, 2024
September 30, 2023
Current assets
$
4,086 
$
4,316 
Current liabilities
3,678 
3,738 
Working capital
$
408 
$
578 
Working capital decreased by $170 million as of September 30, 2024 primarily due to a decrease in cash as a result of the share repurchase activity and debt
pay downs in fiscal 2024, a decrease in inventories due to focused management of inventory levels and an increase in the restructuring reserves as a result of
the EMEA restructuring actions taken in fiscal 2024, partially offset by decreases in accrued compensation and benefits.
Off-Balance Sheet Arrangements
Adient enters into supply chain financing programs in certain domestic and foreign jurisdictions to either sell or discount accounts receivable without recourse
to third-party institutions. Sales or discounts of accounts receivable are reflected as a reduction of accounts receivable on the consolidated statements of
financial position and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. As of both September 30,
2024 and September 30, 2023, $170 million was funded under these programs.
Adient also has a program with an external financial institution under which Adient's suppliers can sell their receivables from Adient to the financial institution
at their sole discretion. Adient is not a party to the agreements between the participating suppliers and the financial institution. Adient's obligation under the
program is to pay the original amounts of supplier invoices to the financial institution on the original invoice dates. No fees are paid and no assets are pledged
by Adient. The payment terms for trade payables can range from 45 days to 120 days depending on types of services and goods being purchased. The payment
terms for molds, dies and other tools that are acquired as part of pre-production activities are in general longer, and are normally dependent on the terms which
Adient has agreed with its customers. As of September 30, 2024, and September 30, 2023, Adient's liabilities related to this program were $76 million and
$50 million, respectively. Cash flows related to the program are all presented within operating activities in Adient's consolidated statements of cash flows.
Adient plc | Form 10-K | 44

Contractual Obligations
A summary of Adient's significant contractual obligations as of September 30, 2024:
(in millions)
Total
2025
2026-2027
2028-2029
Beyond 2030
Long-term debt
$
2,432  $
8  $
810  $
512  $
1,102 
Interest on long-term debt
815 
164 
289 
215 
147 
Operating leases
291 
91 
110 
43 
47 
Purchase obligations 
426 
257 
22 
66 
81 
Pension contributions
83 
9 
18 
14 
42 
Total contractual cash obligations
$
4,047  $
529  $
1,249  $
850  $
1,419 
Primarily consists of commitments for production materials and other supply items, as well as $74 million of committed capital expenditures.
Effects of Inflation and Changing Prices
The effects of inflation have historically not been significant to Adient's results of operations. Generally, Adient has been able to implement operating
efficiencies to sufficiently offset cost increases, which over time have been moderate. The automotive industry has recently experienced a period of significant
volatility in commodity and other input costs, including steel, petrochemical, freight, energy and labor costs. This price volatility may continue into the future
as demand increases and/or supply is constrained. Price volatility has resulted in an overall increase of input costs for Adient that may not be, or may only be
partially, offset through customer negotiations. During fiscal 2025, commodity prices and availability could fluctuate throughout the year and significantly
affect Adient's results of operations.
Critical Accounting Estimates and Policies
Adient prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S.
GAAP). This requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from
those estimates. The following policies are considered by management to be the most critical in understanding the judgments that are involved in the
preparation of Adient's consolidated financial statements and the uncertainties that could impact results of operations, financial position and cash flows.
Revenue Recognition
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, an awarded program does 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. Revenue is recognized at a
point in time when Adient transfers control of the product to the customer. Contracts with customers may provide for annual price reductions over the
production life of the awarded program. Transaction prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial
factors, some of which are considered as variable consideration and must be estimated. 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.
In pursuit of new program awards, Adient at times agrees to make upfront payments to customers. Each time such a payment is made, Adient evaluates its
nature, the underlying economics, legal and compliance ramifications, and other relevant factors and circumstances. These payments are deemed to be
consideration payable to customers and are generally recognized as a reduction to revenue once mutually agreed. Certain upfront payments, however, are
capitalized as other current and noncurrent assets if they are determined to be incremental, attributable only to the specific new program being awarded, and
recoverable. As products under the new program are sold to the customer, the capitalized amount is amortized and recognized as a reduction to revenue over
the term of the program, typically between three and seven years. Adient assesses recoverability of the capitalized amounts on an on-going basis. Any amounts
that are concluded to be no longer recoverable are immediately
(1)
(1) 
Adient plc | Form 10-K | 45

recognized as a reduction to revenue.
Refer to Note 1, "Organization and Summary of Significant Accounting Policies," and Note 2, "Revenue Recognition," of the notes to the consolidated
financial statements for more information.
Impairment of Goodwill, Other Long-lived Assets and Investments in Partially Owned Affiliates
Goodwill reflects the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. Adient reviews goodwill for impairment
during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. Adient performs impairment
reviews for its reporting units, which have been determined to be Adient's reportable segments, using a fair value method based on management's judgments
and assumptions or third-party valuations. The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly
transaction between market participants at the measurement date. In estimating the fair value, Adient uses the income approach in which discounted cash flow
analyses are used to derive estimates of fair value of each reporting unit. Multiples of earnings based on the average of historical, published multiples of
earnings of comparable entities with similar operations and economic characteristics are also used in developing estimated fair values. 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." These calculations contain
uncertainties as they require management to make assumptions about market comparables, future cash flows and appropriate discount rates (based on weighted
average cost of capital ranging from 15.5% to 18.5% at September 30, 2024) to reflect the risk inherent in the future cash flows and to derive a reasonable
enterprise value and related premium.
The estimated future cash flows reflect management's latest assumptions of the financial projections based on current and anticipated competitive landscape,
including estimates of revenue based on production volumes over the foreseeable future and long-term growth rates, and operating margins based on historical
trends and future cost containment activities. The financial projections considered the impact of the various issues causing uncertainty in the automotive
industry such as weaker vehicle demand impacted by new vehicle affordability and a high interest rate environment, slower global adoption of electric vehicles
by consumers, volatile commodity pricing, and persistent inflationary pressures. Specifically in the EMEA region, where Adient recorded significant
restructuring charges during fiscal 2024, a heightened risk of impairment exists as the difference between its fair value and carrying value is less than 10%. The
EMEA reporting unit maintains $341 million of goodwill at September 30, 2024. The decrease in EMEA’s fair value is driven by lower forecasted vehicle
volumes from weakening consumer demand, slower consumer adoption of electric vehicles, overcapacity in the industry resulting in pricing pressure,
intensifying competition from Chinese imports and lower exports to China from EMEA as domestic brands expand in China. No goodwill impairment was
recorded in fiscal 2024; however, if further degradation in the economic conditions in the EMEA region occur or if significantly higher levels of restructuring
actions are needed in the region, the EMEA reporting unit may incur significant impairment of goodwill and other long-lived assets. Adient generally assumes
operating margins in future years will normalize over time as it is believed that this is consistent with a market participant view. Had Adient assumed future
operating margins consistent with those in fiscal 2024, the EMEA reporting unit would have failed the impairment quantitative tests, which may have resulted
in material goodwill impairment losses. The current year results are not indicative of future market participant expectations primarily due to the current
challenging market conditions as mentioned above. While revenue is not expected to return to historical levels, there are expectations for enhanced profitability
and cash flows driven by near-term efficiency actions, strategic review of portfolio and reduction of capital expenditures. Long-term profitability and cash
flows will also be impacted by the expiration of underperforming contracts and more profitable business starting in fiscal 2026 along with restructuring benefits
taking full effect. Further, the high levels of recent restructurings and the associated significant costs of such actions in the EMEA region are not expected to
persist for the long-term at comparable levels. To pass the impairment quantitative test, projected long-term operating margins, utilizing the discounted cash
flow method, are expected to average approximately 5.5%-6.5%. Additionally, if further restructuring actions persist beyond what is anticipated or if a
hypothetical increase occurred in the discount rate of approximately 100 basis points at September 30, 2024, with all other assumptions unchanged, the
carrying value of this reporting unit would likely exceed its fair value, which may have resulted in a material goodwill impairment loss. Refer to Note 6,
"Goodwill and Other Intangible Assets," of the notes to the consolidated financial statements for additional information.
Adient reviews long-lived assets, including property, plant and equipment and other intangible assets with definite lives, for impairment whenever events or
changes in circumstances indicate that the asset's carrying amount may not be recoverable. Adient conducts its long-lived asset impairment analyses in
accordance with ASC 360-10-15, "Impairment or Disposal of Long-Lived Assets." ASC 360-10-15 requires Adient to group assets and liabilities at the lowest
level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of
the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is
measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. Intangible
assets with definite lives continue to be amortized over
Adient plc | Form 10-K | 46

their estimated useful lives and are subject to impairment testing as part of their asset group if events or changes in circumstances indicate that the asset might
be impaired. A considerable amount of management judgment and assumptions are required in performing the impairment tests. No triggering events were
identified during fiscal 2024 and 2023.
Adient monitors its investments in partially-owned affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If Adient determines
that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the recorded book
value and the fair value of the investment. Fair value is generally determined using an income approach based on discounted cash flows or negotiated
transaction values. No other-than-temporary impairment indicators were present in fiscal 2024. During fiscal 2023, Adient concluded that indicators of other-
than-temporary impairment were present related to two nonconsolidated partially-owned affiliates, and recorded a $6 million ($3 million in Asia and $3 million
in EMEA) non-cash impairment as a result. Refer to Note 18, “Nonconsolidated Partially-Owned Affiliates,” of the notes to the consolidated financial
statements for additional information.
During fiscal 2024, Adient determined that an impairment had occurred with its investment in Adient Aerospace and recorded an impairment charge of $9
million. Refer to Note 15, “Restructuring and Impairment Costs,” of the notes to the consolidated financial statements for additional information.
Employee Benefit Plans
Adient provides a range of pension benefits to its employees and retired employees. These benefits are Adient's direct obligation and have been recorded within
Adient's consolidated financial statements. Plan assets and obligations are measured annually, or more frequently if there is a remeasurement event, based on
Adient's measurement date utilizing various actuarial assumptions such as discount rates, assumed rates of return, compensation increases, turnover rates and
health care cost trend rates as of that date. Adient reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on
current rates and trends when appropriate.
Adient utilizes a mark-to-market approach for recognizing pension benefit expenses, including measuring the market related value of plan assets at fair value
and recognizing actuarial gains and losses in the fourth quarter of each fiscal year or at the date of a remeasurement event.
U.S. GAAP requires that companies recognize in the statement of financial position a liability for defined benefit pension and postretirement plans that are
underfunded or unfunded, or an asset for defined benefit pension and postretirement plans that are overfunded. U.S. GAAP also requires that companies
measure the benefit obligations and fair value of plan assets that determine a benefit plan's funded status as of the date of the employer's fiscal year end.
Adient considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, Adient uses different discount rates
for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S. pension plans,
Adient uses a discount rate provided by an independent third-party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension,
Adient consistently uses the relevant country specific benchmark indices for determining the various discount rates. Adient's discount rate on U.S. pension
plans was 4.99% and 5.87% at September 30, 2024 and 2023, respectively. Adient's weighted average discount rate on non-U.S. plans was 4.75% and 5.60% at
September 30, 2024 and 2023, respectively.
In estimating the expected return on plan assets, Adient considers the historical returns on plan assets, adjusted for forward-looking considerations, inflation
assumptions and the impact of the active management of the plans' invested assets. Reflecting the relatively long-term nature of the plans' obligations,
approximately 70% of the plans' assets are invested in fixed income securities and 10% in equity securities, with the remainder primarily invested in alternative
investments. For fiscal years 2024 and 2023, Adient's expected long-term return on U.S. pension plan assets used to determine net periodic benefit cost was
6.75% and 6.75% respectively. The actual rate of return on U.S. pension plans was above 6.75% in fiscal 2024 and was above 6.75% in fiscal 2023. For fiscal
years 2024 and 2023, Adient's weighted average expected long-term return on non-U.S. pension plan assets was 4.95% and 4.53%, respectively. The actual rate
of return on non-U.S. pension plans was above 4.95% in fiscal 2024 and was below 4.53% in fiscal 2023.
For fiscal 2025, Adient estimates the long-term rate of return will approximate 6.75% and 4.95% for U.S. pension and non-U.S. pension plans, respectively.
Any differences between actual investment results and the expected long-term asset returns will be reflected in net periodic benefit costs in the fourth quarter of
each fiscal year. If Adient's actual returns on plan assets are less than Adient's expectations, additional contributions may be required.
Adient plc | Form 10-K | 47

In fiscal 2024, total Adient contributions to the defined benefit pension plans were $20 million. Adient expects to contribute at least $10 million in cash to its
defined benefit pension plans in fiscal 2025.
Based on information provided by its independent actuaries and other relevant sources, Adient believes that the assumptions used to measure Adient’s pension
obligations are reasonable; however, changes in these assumptions could impact Adient's financial position, results of operations or cash flows.
The following table illustrates estimated increases (decreases) in projected benefit obligation (“PBO”) and net periodic benefit cost excluding changes in mark-
to-market adjustments and settlement charges (“NPBC”) as of September 30, 2024 and for fiscal 2024 assuming a decrease of 100 basis points in the discount
rate and expected return on plan assets.
Pension Benefits
U.S. Plans
Non-U.S. Plans
(in millions)
Change in PBO
Change in NPBC
Change in PBO
Change in NPBC
100 basis point decrease in discount rate
$
— 
$
— 
$
42 
$
(1)
100 basis point decrease in expected return on plan assets
N/A
— 
N/A
2
Refer to Note 14, “Retirement Plans,” of the notes to consolidated financial statements for more information on Adient's pension plans.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and operating loss and other loss carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Adient
records a valuation allowance that primarily represents operating and other loss carryforwards for which realization is uncertain. Management judgment is
required in determining Adient's provision for income taxes, deferred tax assets and liabilities, and the valuation allowance recorded against Adient's net
deferred tax assets.
Adient reviews the realizability of its deferred tax assets on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required.
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or combined group recording the net
deferred tax asset are considered, along with any other positive or negative evidence. Since future financial results may differ from previous estimates, periodic
adjustments to Adient's valuation allowances may be necessary.
Adient is subject to income taxes in Ireland, the U.S. and other non-U.S. jurisdictions. Judgment is required in determining its worldwide provision for income
taxes and recording the related assets and liabilities. In the ordinary course of Adient's business, there are many transactions and calculations where the ultimate
tax determination is uncertain. Adient's income tax returns for various fiscal years remain under audit by the respective tax authorities. Although the outcome of
tax audits is always uncertain, management believes that it has appropriate support for the positions taken on its tax returns and that its annual tax provisions
included amounts sufficient to pay assessments, if any, which may be proposed by the taxing authorities. Nonetheless, the amounts ultimately paid, if any, upon
resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year.
Adient does not generally provide for additional income taxes which would become payable upon repatriation of undistributed earnings of wholly owned
foreign subsidiaries. Adient's intent is for such earnings to be reinvested by the subsidiaries or to be repatriated only when it would be tax efficient.
Refer to Note 16, “Income Taxes,” of the notes to consolidated financial statements for Adient's income tax disclosures.
Restructuring Costs
Adient accrues costs in connection with its restructuring actions. These accruals include estimates primarily related to employee headcount, local statutory
benefits, and other employee termination costs. Actual costs may vary from these estimates. These
Adient plc | Form 10-K | 48

accruals are reviewed on a quarterly basis and changes to restructuring actions are appropriately recognized when identified. Refer to Note 15, “Restructuring
and Impairment Costs,” of the notes to consolidated financial statements for more information.
During fiscal 2024, Adient committed to a restructuring plan of $169 million that was offset by prior period underspend of $1 million and $9 million cost
reimbursement committed by a customer. The fiscal 2024 charges are mostly related to termination benefits in Europe. The 2024 Plan is being implemented in
response to the macroeconomic factors occurring in the European automotive market causing reduced production volumes and to ensure Adient maintains a
competitive cost structure by reducing operating, administrative and engineering costs, and increasing efficiencies. Restructuring actions associated with these
specific plans will primarily occur in fiscal years 2025 and 2026 and are expected to be substantially complete by fiscal year 2027. Adient estimates that upon
completion of the restructuring actions, the fiscal 2024 restructuring plan would reduce annual operating costs by approximately $110 million, which was
primarily the result of lower costs of sales and selling, general and administrative expenses due to reduced employee-related costs, of which approximately
60% would result in net savings. Restructuring costs are included in restructuring and impairment costs in the consolidated statements of income.
During fiscal 2023, Adient committed to a restructuring plan (“2023 Plan”) of $39 million. Adient also recorded additional charges totaling $1 million related
to prior year plans. The restructuring actions related to cost reduction initiatives and consist primarily of workforce reductions in EMEA. Adient estimated that
upon completion of the restructuring actions, the fiscal 2023 restructuring plan would reduce annual operating costs by approximately $30 million, which was
primarily the result of lower costs of sales and selling, general and administrative expenses due to reduced employee-related costs, of which approximately
15% would result in net savings. The restructuring actions are expected to be substantially completed by fiscal 2025.
During fiscal 2022, Adient committed to a restructuring plan (“2022 Plan”) of $25 million that was offset by $10 million of prior year underspend. The
restructuring actions related to cost reduction initiatives and consist primarily of workforce reductions in EMEA and Americas. Adient estimated that upon
completion of the restructuring actions, the fiscal 2022 restructuring plan would reduce annual operating costs by approximately $30 million, which was
primarily the result of lower costs of sales and selling, general and administrative expenses due to reduced employee-related costs, of which approximately
30% would result in net savings. The restructuring actions were substantially completed by fiscal 2023.
New Accounting Pronouncements
See Note 1, “Organization and Summary of Significant Accounting Policies,” of the notes to consolidated financial statements for a discussion of new
accounting pronouncements.
Adient plc | Form 10-K | 49

Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Interest Rate and Foreign Currency Risk Management
Adient regularly reviews its underlying foreign exchange and interest rate exposures, both on a stand-alone basis and in conjunction with applicable derivative
hedge positions. Given the effective horizons of Adient's risk management activities and the anticipatory nature of the exposures, there is no assurance the
“derivative hedge” positions will offset more than a portion of the financial impact resulting from movements in Adient's underlying foreign exchange or
interest rate exposures. Further, the recognition of the gains and losses related to these instruments may not coincide with the timing of gains and losses related
to the underlying economic exposures and, therefore, may adversely affect Adient's financial condition and operating results.
Adient selectively uses derivative instruments to reduce market risk associated with changes in foreign currency. All hedging transactions were authorized and
executed pursuant to clearly defined policies and procedures, which strictly prohibit the use of financial instruments for speculative purposes. At the inception
of the hedge, Adient assesses the effectiveness of the hedge instrument and designates the hedge instrument as either (1) a hedge of a recognized asset or
liability or of a recognized firm commitment (a fair value hedge), (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or
paid related to an unrecognized asset or liability (a cash flow hedge) or (3) a hedge of a net investment in a non-U.S. operation (a net investment hedge). Adient
performs hedge effectiveness testing on an ongoing basis depending on the type of hedging instrument used. All other derivatives not designated as hedging
instruments under ASC 815, “Derivatives and Hedging,” are revalued in the consolidated statements of income.
Adient evaluates cash flow hedges for effectiveness at inception based on the critical terms match method. The hedges are not expected to incur any
ineffectiveness, however, a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use.
For all designated net investment hedges, Adient assesses its net investment position in non-U.S. operations and compares it with the outstanding net
investment hedge principal on a quarterly basis. All hedges are deemed highly effective if the aggregate outstanding principal of the hedge instrument
designated as the net investment hedge in a non-U.S. operation is between 80% and 125% of its net investment position in respective non-U.S. operations.
Further details are provided in Part II, Item 8 of this Annual Report in the notes to consolidated financial statements. A discussion of Adient's accounting
policies for derivative financial instruments is included in Note 1, “Organization and Summary of Significant Accounting Policies,” and further disclosure
relating to derivatives and hedging activities is included in Note 10, “Derivative Instruments and Hedging Activities,” and Note 11, “Fair Value
Measurements,” of the notes to consolidated financial statements.
Interest Rate Risk
Adient's exposure to changes in global interest rates relates primarily to Adient's investment portfolio and outstanding debt. While Adient is exposed to global
interest rate fluctuations, Adient's interest income and expense are most sensitive to fluctuations in U.S. interest rates. Changes in global interest rates affect the
interest earned on Adient's cash, cash equivalents and marketable securities and the fair value of those securities, as well as costs associated with hedging and
interest paid on Adient's debt.
Adient's investment policy and strategy are focused on preservation of capital and supporting Adient's liquidity requirements. Adient uses a combination of
internal and external management to execute its investment strategy and achieve its investment objectives. Adient typically invests in highly-rated securities,
and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade,
with the primary objective of minimizing the potential risk of principal loss.
Further details regarding Adient's debt and financing arrangements are provided in Note 9, “Debt and Financing Arrangements,” of the notes to consolidated
financial statements.
Adient plc | Form 10-K | 50

Foreign Currency Risk
Adient has manufacturing, sales and distribution facilities around the world and thus makes investments and enters into transactions denominated in various
foreign currencies. In order to maintain strict control and achieve the benefits of Adient's global diversification, foreign exchange exposures for each currency
are netted internally so that only its net foreign exchange exposures are, as appropriate, hedged with financial instruments.
On an annual basis, Adient hedges 70% to 90% of the nominal amount of each of its known foreign exchange transactional exposures. Adient primarily enters
into foreign currency exchange contracts to reduce the earnings and cash flow impact of the variation of non-functional currency denominated receivables and
payables. Gains and losses resulting from hedging instruments offset the foreign exchange gains or losses on the underlying assets and liabilities being hedged.
The maturities of the forward exchange contracts generally coincide with the settlement dates of the related transactions. Realized and unrealized gains and
losses on these contracts are recognized in the same period as gains and losses on the hedged items. During fiscal 2024, Adient had hedge contracts outstanding
with the aim of hedging balance sheet items, or with the aim of hedging forecasted commitments. Foreign exchange contracts hedging balance sheet items are
marked-to-market through the income statement, while foreign exchange contracts to hedge forecasted commitments are designated in a hedge relationship as a
cash flow hedge. These are marked-to-market through other comprehensive income when effective.
As of September 30, 2024, certain foreign currency forward contracts have been designated to selectively hedge portions of Adient's net investments in China.
The currency effects of the foreign currency forward contracts are reflected in the accumulated other comprehensive income account (“AOCI”) within
shareholders' equity attributable to Adient where they offset gains and losses recorded on Adient's net investments in China.
At September 30, 2024 and 2023, Adient estimates that the fair value of outstanding foreign exchange contracts would have been adversely impacted by
approximately $72 million and $47 million, respectively, from an unfavorable 10% change in all applicable foreign currency exchange rates versus the U.S.
Dollar. In practice, such a change would generally be offset by an opposing fair value change of the underlying asset, liability or transaction.
Commodity Risk
Adient's exposures to market risk from changes in the price of production material are managed primarily through indexing arrangements and negotiations with
suppliers and customers, although not all customer commodity exposures are covered by indexing arrangements and there can be no assurance that Adient will
otherwise be able to recover all such costs. Adient’s current indexing arrangements with its customers typically provide for partial recovery of commodity price
changes on a lag of 3 months to, in some cases, more than 12 months between cost occurrence and partial recovery. Adient continues to evaluate its
arrangements with its customers and to pursue negotiated commercial settlements related to commodity pricing matters. Adient evaluates from time to time
derivatives available in the marketplace and may decide to utilize derivatives in the future to manage select commodity risks if acceptable hedging instruments
and counterparties are identified for its exposure level at that time, as well as the effectiveness of the financial hedge among other factors.
Adient plc | Form 10-K | 51

Item 8.
Financial Statements and Supplementary Data
Index to Consolidated Financial Statements
Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
53
Consolidated Statements of Income (Loss) for the years ended September 30, 2024, 2023 and 2022
56
Consolidated Statements of Comprehensive Income (Loss) for the years ended September 30, 2024, 2023 and 2022
57
Consolidated Statements of Financial Position as of September 30, 2024 and 2023
58
Consolidated Statements of Cash Flows for the years ended September 30, 2024, 2023 and 2022
59
Consolidated Statements of Shareholders' Equity for the years ended September 30, 2024, 2023 and 2022
61
Notes to Consolidated Financial Statements
62
Schedule II - Valuation and Qualifying Accounts for the years ended September 30, 2024, 2023 and 2022
103
Adient plc | Form 10-K | 52

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Adient plc
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated statements of financial position of Adient plc and its subsidiaries (the “Company”) as of September 30, 2024
and 2023, and the related consolidated statements of income (loss), of comprehensive income (loss), of shareholders' equity and of cash flows for each of the
three years in the period ended September 30, 2024, including the related notes and financial statement schedule listed in the accompanying index (collectively
referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of September 30, 2024,
based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of
September 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2024 in
conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control - Integrated Framework
(2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and
for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial
Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's
internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal
control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control
over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other
procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Adient plc | Form 10-K | 53

Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over
financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated
or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements
and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Annual Goodwill Impairment Assessment
As described in Notes 1, 6 and 17 to the consolidated financial statements, the Company’s goodwill balance, which is comprised of the Americas, Europe, the
Middle East and Africa (EMEA), and Asia Pacific/China (Asia) reporting units (collectively, “the reporting units”), was $2,164 million as of September 30,
2024. Management reviews goodwill for impairment during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset
might be impaired. Fair value of the reporting units is estimated using an income approach utilizing discounted cash flow analyses. The estimated future cash
flows reflect management’s latest assumptions of the financial projections based on current and anticipated competitive landscape, including estimates of
revenue based on production volumes over the foreseeable future and long-term growth rates, and operating margins based on historical trends and future cost
containment activities, as well as the discount rates.
The principal considerations for our determination that performing procedures relating to the annual goodwill impairment assessment is a critical audit matter
are (i) the significant judgment by management when developing the fair value estimate of the reporting units; (ii) a high degree of auditor judgment,
subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to estimates of operating margins for the
Americas reporting unit, estimates of revenue, long-term growth rate, and operating margins, as well as the discount rate for the EMEA reporting unit, and
estimates of revenue for the Asia reporting unit; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated
financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including
controls over the valuation of the Company’s reporting units. These procedures also included, among others (i) testing management’s process for developing
the fair value estimate of the reporting units; (ii) evaluating the appropriateness of the discounted cash flow analyses; (iii) testing the completeness and
accuracy of underlying data used by management in the discounted cash flow analyses; and (iv) evaluating the reasonableness of the significant assumptions
used by management related to estimates of operating margins for the Americas reporting unit, estimates of revenue, long-term growth rate, and operating
margins, as well as the discount rate for the EMEA reporting unit, and estimates of revenue for the Asia reporting unit. Evaluating management’s assumptions
related to estimates of revenue, long-term growth rate, and operating margins involved evaluating whether the assumptions used by management were
reasonable considering (i) the current and past performance of the reporting units, as applicable; (ii) the consistency with relevant industry data; and (iii)
whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to
assist in evaluating the appropriateness of the discounted cash flow analyses and the reasonableness of the long-term growth rate and discount rate
assumptions.
Adient plc | Form 10-K | 54

/s/ PricewaterhouseCoopers LLP
Detroit, Michigan
November 18, 2024
We have served as the Company’s auditor since 1957.
Adient plc | Form 10-K | 55

Adient plc
Consolidated Statements of Income (Loss)
Year Ended
September 30,
(in millions, except per share data)
2024
2023
2022
Net sales
$
14,688  $
15,395 
$
14,121 
Cost of sales
13,760 
14,362 
13,314 
Gross profit
928 
1,033 
807 
Selling, general and administrative expenses
507 
554 
598 
Restructuring and impairment costs
168 
40 
25 
Equity income
90 
84 
75 
Earnings before interest and income taxes
343 
523 
259 
Net financing charges
189 
195 
215 
Other pension expense (income)
21 
33 
(10)
Income before income taxes
133 
295 
54 
Income tax provision
32 
— 
94 
Net income (loss)
101 
295 
(40)
Income attributable to noncontrolling interests
83 
90 
80 
Net income (loss) attributable to Adient
$
18  $
205 
$
(120)
Earnings per share:
Basic
$
0.20  $
2.17 
$
(1.27)
Diluted
$
0.20  $
2.15 
$
(1.27)
Shares used in computing earnings per share:
Basic
89.5 
94.5 
94.8 
Diluted
90.1 
95.4 
94.8 
The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-K | 56

Adient plc
Consolidated Statements of Comprehensive Income (Loss)
Year Ended
September 30,
(in millions)
2024
2023
2022
Net income (loss)
$
101 
$
295 
$
(40)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments
204 
(17)
(250)
Realized and unrealized gains (losses) on derivatives
(32)
21 
— 
Pension and postretirement plans
— 
— 
1 
Other comprehensive income (loss)
172 
4 
(249)
Total comprehensive income (loss)
273 
299 
(289)
Comprehensive income (loss) attributable to noncontrolling interests
106 
91 
49 
Comprehensive income (loss) attributable to Adient
$
167 
$
208 
$
(338)
The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-K | 57

Adient plc
Consolidated Statements of Financial Position
September 30,
(in millions, except share and per share data)
2024
2023
Assets
Cash and cash equivalents
$
945  $
1,110 
Accounts receivable, less allowances of $24 and $15, respectively
1,896 
1,874 
Inventories
758 
841 
Other current assets
487 
491 
Current assets
4,086 
4,316 
Property, plant and equipment - net
1,410 
1,382 
Goodwill
2,164 
2,094 
Other intangible assets - net
371 
408 
Investments in partially-owned affiliates
338 
303 
Assets held for sale
8 
7 
Other noncurrent assets
974 
914 
Total assets
$
9,351  $
9,424 
Liabilities and Shareholders' Equity
Short-term debt
$
1  $
2 
Current portion of long-term debt
8 
132 
Accounts payable
2,552 
2,526 
Accrued compensation and benefits
358 
400 
Other current liabilities
759 
678 
Current liabilities
3,678 
3,738 
Long-term debt
2,396 
2,401 
Pension benefits
105 
92 
Other noncurrent liabilities
638 
590 
Long-term liabilities
3,139 
3,083 
Commitments and Contingencies (Note 19)
Redeemable noncontrolling interests
91 
57 
Preferred shares issued, par value $0.001; 100,000,000 shares authorized
zero shares issued and outstanding at September 30, 2024
— 
— 
Ordinary shares issued, par value $0.001; 500,000,000 shares authorized
84,866,763 shares issued and outstanding at September 30, 2024
— 
— 
Additional paid-in capital
3,712 
3,973 
Retained earnings (accumulated deficit)
(885)
(903)
Accumulated other comprehensive income (loss)
(693)
(842)
Shareholders' equity attributable to Adient
2,134 
2,228 
Noncontrolling interests
309 
318 
Total shareholders' equity
2,443 
2,546 
Total liabilities and shareholders' equity
$
9,351  $
9,424 
The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-K | 58

Adient plc
Consolidated Statements of Cash Flows
Year Ended September 30,
(in millions)
2024
2023
2022
Operating Activities
Net income (loss) attributable to Adient
$
18  $
205  $
(120)
Income attributable to noncontrolling interests
83 
90 
80 
Net income (loss)
101 
295 
(40)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation
285 
290 
298 
Amortization of intangibles
47 
50 
52 
Pension and postretirement benefit expense (benefit)
27 
38 
(2)
Pension and postretirement contributions, net
(20)
(17)
(16)
Equity in earnings of partially-owned affiliates, net of dividends received
(17)
(34)
4 
(Gain) on sale of / impairment of nonconsolidated partially owned affiliates
(1)
6 
10 
Premium paid on repurchase of debt
— 
7 
38 
Retrospective recoveries of Brazil indirect tax credits
— 
— 
(29)
Derivative loss on the 2021 Yanfeng Transaction
— 
— 
3 
Deferred income taxes
(1)
(124)
5 
Non-cash restructuring and impairment charges
9 
— 
14 
Equity-based compensation
31 
34 
29 
Other
7 
(4)
17 
Changes in assets and liabilities:
Receivables
12 
16 
(576)
Inventories
93 
126 
(62)
Other assets
(57)
(26)
32 
Accounts payable and accrued liabilities
90 
(19)
485 
Accrued income taxes
(63)
29 
12 
Cash provided (used) by operating activities
543 
667 
274 
Investing Activities
Capital expenditures
(266)
(252)
(227)
Sale of property, plant and equipment
15 
26 
20 
Settlement of derivative contracts
— 
— 
(30)
Acquisition of businesses, net of cash acquired
— 
(6)
(19)
Business divestitures
(2)
5 
740 
Other
— 
(2)
— 
Cash provided (used) by investing activities
(253)
(229)
484 
Continued on next page
Adient plc | Form 10-K | 59

Adient plc
Consolidated Statements of Cash Flows
(Continued)
Year Ended September 30,
(in millions)
2024
2023
2022
Financing Activities
Increase (decrease) in short-term debt
(1)
(1)
(14)
Increase (decrease) in long-term debt
— 
1,002 
— 
Repayment of long-term debt
(137)
(1,104)
(987)
Debt financing costs
(5)
(23)
(1)
Share repurchases
(275)
(65)
— 
Cash paid to acquire a noncontrolling interest
— 
— 
(153)
Dividends paid to noncontrolling interests
(72)
(67)
(106)
Other
(12)
(13)
(12)
Cash provided (used) by financing activities
(502)
(271)
(1,273)
Effect of exchange rate changes on cash and cash equivalents
47 
(4)
(59)
Increase (decrease) in cash and cash equivalents
(165)
163 
(574)
Cash and cash equivalents at beginning of period
1,110 
947 
1,521 
Cash and cash equivalents at end of period
$
945  $
1,110  $
947 
The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-K | 60

Adient plc
Consolidated Statements of Shareholders' Equity
(in millions)
Ordinary
Shares, par
value
Additional
Paid-in
Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Shareholders'
Equity
Attributable
 to Adient
Shareholders'
Equity
Attributable to
Noncontrolling
Interests
Total Equity
Balance at September 30, 2021
$
— 
$
3,991 
$
(988)
$
(627)
$
2,376 
$
342 
$
2,718 
Net income (loss)
— 
— 
(120)
— 
(120)
45 
(75)
Foreign currency translation adjustments
— 
— 
— 
(219)
(219)
(20)
(239)
Employee retirement plans
— 
— 
— 
1 
1 
— 
1 
Dividends paid to and other transactions with
noncontrolling interests
— 
— 
— 
— 
— 
(53)
(53)
Purchase of subsidiary shares from
noncontrolling interest
— 
12 
— 
— 
12 
(12)
— 
Share based compensation and other
— 
23 
— 
— 
23 
— 
23 
Balance at September 30, 2022
$
— 
$
4,026 
$
(1,108)
$
(845)
$
2,073 
$
302 
$
2,375 
Net income
— 
— 
205 
— 
205 
63 
268 
Foreign currency translation adjustments
— 
— 
— 
(18)
(18)
(2)
(20)
Realized and unrealized gains on derivatives
— 
— 
— 
21 
21 
— 
21 
Dividends paid to and other transactions with
noncontrolling interests
— 
— 
— 
— 
— 
(45)
(45)
Repurchase and retirement of ordinary shares
— 
(65)
— 
— 
(65)
— 
(65)
Share based compensation and other
— 
12 
— 
— 
12 
— 
12 
Balance at September 30, 2023
$
— 
$
3,973 
$
(903)
$
(842)
$
2,228 
$
318 
$
2,546 
Net income
— 
— 
18 
— 
18 
45 
63 
Foreign currency translation adjustments
— 
— 
— 
181 
181 
6 
187 
Realized and unrealized losses on derivatives
— 
— 
— 
(32)
(32)
— 
(32)
Dividends paid to and other transactions with
noncontrolling interests
— 
— 
— 
— 
— 
(60)
(60)
Repurchase and retirement of ordinary shares
— 
(275)
— 
— 
(275)
— 
(275)
Share based compensation and other
— 
14 
— 
— 
14 
— 
14 
Balance at September 30, 2024
$
— 
$
3,712 
$
(885)
$
(693)
$
2,134 
$
309 
$
2,443 
The accompanying notes are an integral part of the consolidated financial statements.
Adient plc | Form 10-K | 61

Adient plc
Notes to Consolidated Financial Statements
1. Organization and Summary of Significant Accounting Policies
Adient is a global leader in the automotive seating supplier industry and maintains relationships with the largest global automotive original equipment
manufacturers, or OEMs. 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”).
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 does not have a controlling interest but is assessed to have significant influence on their operations. Certain
figures for comparative periods were reclassified to conform to current period presentation.
Consolidated VIEs
Based upon the criteria set forth in the Financial Accounting Standards Board 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 September 30, 2024 and 2023,
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.
The carrying amounts and classification of assets (none of which are restricted) and liabilities included in Adient's consolidated statements of financial position
for the consolidated VIEs are as follows:
September 30,
(in millions)
2024
2023
Current assets
$
285  $
265 
Noncurrent assets
98 
121 
Total assets
$
383  $
386 
Current liabilities
$
241  $
228 
Noncurrent liabilities
12 
13 
Total liabilities
$
253  $
241 
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported
amounts of revenues and expenses during the reporting period. The consolidated financial statements reflect management's estimates as of the reporting date.
Actual results could differ from those estimates.
Adient plc | Form 10-K | 62

Fair Value of Financial Instruments
The fair values of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. See Note 10,
“Derivative Instruments and Hedging Activities,” and Note 11, “Fair Value Measurements,” of the notes to consolidated financial statements for fair value of
financial instruments, including derivative instruments and hedging activities.
Cash and Cash Equivalents
Adient considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash is managed by legal entity,
with cash pooling agreements in place for all participating entities on a global basis, as applicable.
Receivables
Receivables consist of amounts billed and currently due from customers and revenues that have been recognized for accounting purposes but not yet billed to
customers. Adient extends credit to customers in the normal course of business and maintains allowances resulting from the inability or unwillingness of
customers to make required payments. The allowances are established based on historical data along with Adient’s assessment of expected credit losses that
reflects current and forecasted industry and economic conditions, in accordance with ASC Topic 326, Financial Instruments - Credit Losses. Adient enters into
supply chain financing programs in certain domestic and foreign jurisdictions to either sell or discount accounts receivable without recourse to third-party
institutions. Sales or discounts of accounts receivable are reflected as a reduction of accounts receivable on the consolidated statements of financial position
and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. As of both September 30, 2024 and 2023,
$170 million was funded under these programs.
Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Finished goods and work-in-process
inventories include material, labor and manufacturing overhead costs.
Pre-Production Costs Related to Long-Term Supply Arrangements
Adient's policy for engineering, research and development, and other design and development costs related to products that will be sold under long-term supply
arrangements requires such costs to be expensed as incurred or capitalized if reimbursement from the customer is contractually assured. Income related to
recovery of these costs is recorded within selling, general and administrative expense in the consolidated statements of income. At September 30, 2024 and
2023, Adient recorded within the consolidated statements of financial position $310 million and $274 million, respectively, of engineering and research and
development costs for which customer reimbursement is contractually assured. The reimbursable costs are recorded in other current assets if reimbursement
will occur in less than one year and in other noncurrent assets if reimbursement will occur beyond one year. At September 30, 2024, Adient had $108 million
and $202 million of reimbursable costs recorded in current and noncurrent assets, respectively. At September 30, 2023, Adient had $104 million and $170
million of reimbursable costs recorded in current and noncurrent assets, respectively.
Costs for molds, dies and other tools used to make products that will be sold under long-term supply arrangements are capitalized within property, plant and
equipment if Adient has title to the assets or has the non-cancelable right to use the assets during the term of the supply arrangement. Capitalized items, if
specifically designed for a supply arrangement, are amortized over the term of the arrangement; otherwise, amounts are amortized over the estimated useful
lives of the assets. At September 30, 2024 and 2023, approximately $50 million and $53 million, respectively, of costs for molds, dies and other tools were
capitalized within property, plant and equipment which represented assets to which Adient had title. In addition, at September 30, 2024, Adient recorded within
the consolidated statements of financial position in other current and noncurrent assets $156 million and $25 million, respectively, of costs for molds, dies and
other tools for which customer reimbursement is contractually assured. At September 30, 2023, Adient recorded within the consolidated statements of financial
position in other current and noncurrent assets $151 million and $11 million, respectively, of costs for molds, dies and other tools for which customer
reimbursement is contractually assured.
Adient plc | Form 10-K | 63

Property, Plant and Equipment
Property, plant and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the respective assets using the straight-line
method for financial reporting purposes and accelerated methods for income tax purposes. The estimated useful lives range from 3 to 40 years for buildings and
improvements and from 3 to 15 years for machinery and equipment.
Leases
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at
commencement dates. ROU assets also include payments made in advance and exclude lease incentives. Lease terms may include options to extend or
terminate the lease when it is reasonably certain that such options are to be exercised. Adient uses its incremental borrowing rate, which is the rate of interest it
would pay to borrow on a collateralized basis over a similar term to the lease in a similar economic environment, for discounting lease consideration as most
lease agreements do not provide an implicit rate. Refer to Note 8, “Leases” of the notes to consolidated financial statements for more information regarding
Adient’s leases.
Goodwill and Other Intangible Assets
Goodwill reflects the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. Adient reviews goodwill for impairment
during the fourth fiscal quarter or more frequently if events or changes in circumstances indicate the asset might be impaired. Adient performs impairment
reviews for its reporting units, which have been determined to be Adient's reportable segments using a fair value method based on management's judgments
and assumptions or third-party valuations. The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly
transaction between market participants at the measurement date. In estimating the fair value, Adient primarily uses an income approach utilizing discounted
cash flow analyses. Adient also uses a market approach utilizing published multiples of earnings of comparable entities with similar operational and economic
characteristics to further support the fair value estimates. 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 estimated fair value is then compared with the carrying amount of the reporting unit, including recorded
goodwill. An impairment is recorded to the extent the estimated fair value is below the carrying amount of the reporting unit. No goodwill impairment has been
recorded in fiscal 2024, 2023 or 2022.
As a result of macroeconomic factors impacting Adient and the automotive industry, a heightened risk of impairment exists for the EMEA reporting unit as the
difference between its fair value and carrying value is less than 10% as of September 30, 2024. The decrease in EMEA’s fair value is driven by lower
forecasted vehicle volumes from weakening consumer demand, slower consumer adoption of electric vehicles, overcapacity in the industry resulting in pricing
pressure, intensifying competition from Chinese imports and lower exports to China from EMEA as domestic brands expand in China. As a result of the
heightened risk of impairment, Adient will continuously assess the changing macroeconomic conditions in EMEA including the outlook for consumer demand
for vehicles and other factors impacting the region, along with the need for further restructuring actions, all of which impact Adient’s ability to achieve its
projected long-term operating performance. Refer to Note 6, “Goodwill and Other Intangible Assets,” of the notes to the consolidated financial statements for
additional information.
Intangible assets with definite lives are amortized over their estimated useful lives and are subject to impairment testing if events or changes in circumstances
indicate that the asset might be impaired.
Impairment of Long-Lived Assets
Adient reviews long-lived assets, including property, plant and equipment, operating lease ROU assets and other intangible assets with definite lives, for
impairment whenever events or changes in circumstances indicate that the asset's carrying amount may not be recoverable. Adient conducts its long-lived asset
impairment analyses in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets.” ASC 360-10-15 requires Adient to group assets and
liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset
group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an
impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or
appraisals.
Adient plc | Form 10-K | 64

Impairment of Investments in Partially-Owned Affiliates
Adient monitors its investments in partially-owned affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If Adient determines
that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the recorded book
value and the fair value of the investment. Fair value is generally determined using an income approach based on discounted cash flows or negotiated
transaction values. Refer to Note 18, “Nonconsolidated Partially-Owned Affiliates,” of the notes to consolidated financial statements for more information on
Adient’s partially-owned affiliates.
Revenue Recognition
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, an awarded program does 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
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. Refer to Note 2, “Revenue Recognition,” of
the notes to consolidated financial statements for information on Adient's revenue recognition.
Customers
Essentially all of Adient’s sales are to the automotive industry. Volkswagen Group comprised 13% and 11% of consolidated net sales in fiscal 2024 and 2023,
respectively, primarily within the EMEA segment. Ford Motor Company comprised 12% and 11% of consolidated net sales in fiscal 2024 and 2023,
respectively, across all segments. Stellantis N.V. comprised 10% and 12% of consolidated net sales in fiscal 2023 and 2022, respectively, primarily within the
Americas segment.
Research and Development Costs
Expenditures for research activities relating to product development and improvement (other than those expenditures that are contractually guaranteed for
reimbursement from the customer) are charged against income as incurred and included within selling, general and administrative expenses in the consolidated
statements of income. Such expenditures for the years ended September 30, 2024, 2023 and 2022 were $372 million, $362 million and $322 million,
respectively. A portion of these costs associated with these activities are reimbursed by customers in the amounts of $280 million, $250 million and $194
million for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.
Government Assistance
Adient periodically receives government incentives in the forms of cash grants which are based on making qualifying capital investments in property, plant and
equipment. Such assistance is initially recorded as a reduction to property, plant and equipment. Once in use, the balance is systematically recognized in the
statements of income as the asset is depreciated over the useful life of the underlying asset. Adient also periodically receives government assistance for creating
new job opportunities and maintaining a certain number of employees. Such employment-related incentives are normally deferred as current or noncurrent
liabilities as appropriate. These benefits are recognized in the statements of income as a reduction of expense when Adient has met or is expected to meet all
related contractual obligations. The impact of government assistance received by Adient and related balances for all periods presented were immaterial.
Foreign Currency Translation
Adient's international operations, in general, use the respective local currency as the functional currency. Assets and liabilities of international entities have
been translated at period-end exchange rates, and income and expenses have been translated using average exchange rates for the period. Monetary assets and
liabilities denominated in non-functional currencies are adjusted to reflect period-end exchange rates. The resulting translation adjustments are accumulated as
a component of AOCI. The aggregate transaction gains (losses) included in net income for the years ended September 30, 2024, 2023 and 2022 were $(3)
million, $4 million and $6 million, respectively.
Adient plc | Form 10-K | 65

Derivative Financial Instruments
The fair values of all derivatives are recorded in the consolidated statements of financial position. The change in a derivative's fair value is recorded each
period in current earnings or accumulated other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction and if
so, the type of hedge transaction. Refer to Note 10, “Derivative Instruments and Hedging Activities,” and Note 11, “Fair Value Measurements,” of the notes to
consolidated financial statements for disclosure of Adient's derivative instruments and hedging activities.
Restructuring Costs
Adient recognizes restructuring costs that are probable and reasonably estimable related to separation programs that have been approved by and are committed
to by management. In these situations, the affected employees are identified and it is unlikely that actions required to complete the separation plan will change
significantly. Costs associated with benefits that are contingent on the employee continuing to provide services are recorded over the required service period.
All other costs associated with restructuring activities are expensed as incurred.
Stock-Based Compensation
Stock-based compensation is initially measured at the fair value of the awards on the grant date and is recognized in the financial statements over the period the
employees are required to provide services in exchange for the awards. The fair value of restricted stock awards is based on the number of units granted and the
stock price on the grant date. The fair value of performance-based share unit, or PSU, awards is based on the stock price at the grant date and the assessed
probability of meeting future performance targets. The fair value of cash settled awards are recalculated at the end of each reporting period and the liability and
expense are adjusted based on the new fair value. Refer to Note 12, “Stock-Based Compensation,” of the notes to consolidated financial statements for Adient's
stock based compensation disclosures.
Pension and Postretirement Benefits
Adient utilizes a mark-to-market approach for recognizing pension and postretirement benefit expenses, including measuring the market related value of plan
assets at fair value and recognizing actuarial gains and losses in the fourth quarter of each fiscal year or at the date of a remeasurement event. Refer to Note 14,
“Retirement Plans,” of the notes to consolidated financial statements for disclosure of Adient's pension and postretirement benefit plans.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and operating loss and other loss carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Adient
records a valuation allowance that primarily represents operating and other loss carryforwards for which realization is uncertain. Management judgment is
required in determining Adient's provision for income taxes, deferred tax assets and liabilities, and the valuation allowance recorded against Adient's net
deferred tax assets.
Adient reviews the realizability of its deferred tax assets on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required.
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or combined group recording the net
deferred tax asset are considered, along with any other positive or negative evidence. Since future financial results may differ from previous estimates, periodic
adjustments to Adient's valuation allowances may be necessary.
Adient is subject to income taxes in Ireland, the U.S. and other non-U.S. jurisdictions. Judgment is required in determining its worldwide provision for income
taxes and recording the related assets and liabilities. In the ordinary course of Adient's business, there are many transactions and calculations where the ultimate
tax determination is uncertain. Adient's income tax returns for various fiscal years remain under audit by the respective tax authorities. Although the outcome of
tax audits is always uncertain, management believes that it has appropriate support for the positions taken on its tax returns and that its annual tax provisions
included amounts sufficient to pay assessments, if any, which may be proposed by the taxing authorities. Nonetheless, the amounts ultimately paid, if any, upon
resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year.
Adient plc | Form 10-K | 66

Adient does not generally provide for additional income taxes which would become payable upon repatriation of undistributed earnings of wholly owned
foreign subsidiaries. Adient's intent is for such earnings to be reinvested by the subsidiaries or to be repatriated only when it would be tax efficient.
Refer to Note 16, “Income Taxes,” of the notes to consolidated financial statements for Adient's income tax disclosures.
Earnings Per Share
The following table shows the computation of basic and diluted earnings per share:
Year Ended
September 30,
(in millions, except per share data)
2024
2023
2022
Numerator:
Net income (loss) attributable to Adient
$
18  $
205  $
(120)
Denominator:
Shares outstanding
89.5 
94.5 
94.8 
Effect of dilutive securities
0.6 
0.9 
— 
Diluted shares
90.1 
95.4 
94.8 
Earnings per share:
Basic
$
0.20 
$
2.17 
$
(1.27)
Diluted
$
0.20 
$
2.15 
$
(1.27)
The effect of common stock equivalents which would have been anti-dilutive was excluded from the calculation of diluted earnings per share for fiscal 2024
and 2023 and was immaterial. Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings
per share for fiscal 2022 which is a result of being in a loss position.
New Accounting Pronouncements
Standards Adopted During Fiscal 2024
On October 1, 2023, Adient adopted Accounting Standards Codification (“ASU”) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50):
Disclosure of Supplier Finance Program Obligations, which requires disclosures of key terms of Adient's material supplier finance program. Refer to Note 9,
"Debt and Financing Arrangements," of the notes to consolidated financial statements for additional information.
Standards Effective After Fiscal 2024
Adient has considered the new standards that are summarized below, each to be effective after fiscal 2024:
Adient plc | Form 10-K | 67

Standard to be Adopted
Description
Date Effective
ASU 2023-07 Segment Reporting (Topic
280): Improvements to Reportable
Segment Disclosures
The ASU requires additional disclosures on significant segment expenses that are regularly
provided to the chief operating decision maker and included within each reported measure
of segment profit or loss (collectively referred to as the “significant expense principle”).
The ASU also requires additional disclosures of an amount for other segment items by
reportable segment and a description of its composition.
October 1, 2024
ASU 2023-09 Income Taxes (Topic
740): Improvements to Income Tax
Disclosures
The ASU requires disclosure of additional details about the reporting entity's reconciliation
of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. The
ASU also requires further disaggregation of income tax amounts paid by federal, state and
foreign, as well as by material jurisdiction.
October 1, 2025
SEC Climate Disclosure Rules
Final Rule 33-11275
In March 2024, the SEC adopted the final rule surrounding disclosures of the impacts and
risks of climate-related matters that have a material impact on Adient's operations and
consolidated financial statements. These disclosures would be required in annual reports
and registration statements and would discuss Scope 1 and Scope 2 greenhouse gas
emissions along with other climate-related information such as severe weather events and
other natural conditions. In April 2024, the SEC voluntarily stayed the climate disclosure
rules pending judicial review. Adient is monitoring the outcome and evaluating the impact
of these rules on its consolidated financial statements and related disclosures.
October 1, 2025
(under final rules
which are now
stayed)
ASU 2024-03 Income Statement -
Reporting Comprehensive
Income - Expense: Disaggregation
Disclosures
(Subtopic 220-40)
The ASU requires disclosures of specified information about certain costs and expenses in
the notes to financial statements at each interim and annual reporting period, including: the
amounts of purchases of inventory, employee compensation, depreciation, intangible asset
amortization, and a qualitative description of the amounts remaining in relevant expense
captions that are not separately disaggregated quantitatively. It also requires disclosures of
the total amount of selling expenses and, in annual reporting periods, an entity’s definition
of selling expenses.
October 1, 2027
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. Approximately 1%
of net sales recorded in fiscal 2024 were related to product sales transacted in prior fiscal years.
In pursuit of new program awards, Adient at times agrees to make upfront payments to customers. Each time such a payment is made, Adient evaluates its
nature, the underlying economics, legal and compliance ramifications, and other relevant factors and circumstances. These payments are deemed to be
consideration payable to customers and are generally recognized as a reduction to revenue once mutually agreed. Certain upfront payments, however, are
capitalized as other current and noncurrent assets if they are determined to be incremental, attributable only to the specific new program being awarded, and
recoverable. As products under the new program are sold to the customer, the capitalized amount is amortized and recognized as a reduction to revenue over
the term of the program, typically between three and seven years. Adient assesses recoverability of the capitalized amounts on an on-going basis. Any amounts
that are concluded to be no longer recoverable are immediately recognized as a reduction to revenue. As of September 30, 2024 and 2023, Adient maintained
capitalized upfront payments of
Adient plc | Form 10-K | 68

$155 million and $126 million, respectively, within other noncurrent assets.
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,
“Revenue from Contracts with Customers.”
Adient includes 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 and 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 contract
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 material contract assets or liabilities exist
at September 30, 2024. 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 17, “Segment
Information,” of the notes to consolidated financial statements for disaggregated revenue by geographical market.
3. Acquisitions and Divestitures
2024 Transaction
In November 2023, Adient finalized the sale of 51% of its interest (previously held 100%) in Adient (Langfang) Seating Co., Ltd. ("LFADNT") in China for
¥44 million ($6 million), resulting in the deconsolidation of LFADNT, including $9 million of cash. Adient recorded an $8 million loss as a result of the
transaction in the Asia segment, including $5 million of allocated goodwill.
2023 Transactions
Adient completed the acquisition of Nantong Yanfeng Adient Seating Trim Co., Ltd. (“YFAT”) from KEIPER Seating Mechanisms Co., Ltd. (“KEIPER”), in
April 2023 for ¥150 million ($23 million). Adient made an initial deposit of ¥75 million ($12 million) in fiscal 2022, which represents 50% of the purchase
price (reflected within other current assets as of September 30, 2022). During fiscal 2023, Adient paid the remaining purchase price of ¥75  million
($11 million). The acquisition was accounted for using the acquisition method, and the operating results and cash flows of YFAT are included in Adient's
consolidated financial statements starting from May 2023. The acquisition is expected to provide additional synergies within the Asia segment. Adient recorded
a purchase price allocation for the assets acquired and liabilities assumed based on their fair values as of the April 2023 acquisition date, which included
$13 million of goodwill and $5 million of acquired cash. The allocation of the purchase price is based on the valuations performed to determine the fair value
of the net assets as of the acquisition date. If the acquisition of YFAT had occurred on October 1, 2021, its impact on Adient's net sales and net income
attributable to Adient for fiscal 2022 and fiscal 2023 would have been immaterial. Upon acquisition, YFAT was renamed as Adient (Nantong) Automotive
Seating Components Co., Ltd.
2022 Transactions
In conjunction with the 2021 and 2020 Yanfeng Transactions (as defined and described in Form 10-K for the fiscal year ended September 30, 2021), Adient
received total proceeds of $693 million during fiscal 2022 from sales of its interests in two nonconsolidated partially-owned affiliates in China.
Assets held for sale
During 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, which resulted in an impairment charge of $6 million. Also, the sale of certain operations
in EMEA which were classified as held for sale in fiscal 2021 was completed in fiscal 2022 for total proceeds of $46 million.
Adient plc | Form 10-K | 69

4. Inventories
Inventories consisted of the following:
September 30,
(in millions)
2024
2023
Raw materials and supplies
$
582  $
644 
Work-in-process
29 
34 
Finished goods
147 
163 
Inventories
$
758  $
841 
5. Property, Plant and Equipment
Property, plant and equipment consisted of the following:
 
September 30,
(in millions)
2024
2023
Buildings and improvements
$
1,031  $
990 
Machinery and equipment
3,245 
3,097 
Construction in progress
152 
148 
Land
86 
84 
Total property, plant and equipment
4,514 
4,319 
Less: accumulated depreciation
(3,104)
(2,937)
Property, plant and equipment - net
$
1,410  $
1,382 
There were no material finance leases included in net property, plant and equipment at September 30, 2024 and 2023.
As of September 30, 2024, Adient is the lessor of properties included in gross building and improvements for $14 million and accumulated depreciation of $10
million. As of September 30, 2023, Adient is the lessor of properties included in gross building and improvements for $13 million and accumulated
depreciation of $9 million.
6. Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill are as follows:
(in millions)
Americas
EMEA
Asia
Total
Balance at September 30, 2022
$
607 
$
295  $
1,155  $
2,057 
Business acquisitions
— 
— 
13 
13 
Currency translation and other
2 
22 
— 
24 
Balance at September 30, 2023
$
609 
$
317  $
1,168  $
2,094 
Business divestiture
— 
— 
(5)
(5)
Currency translation and other
(3)
24 
54 
75 
Balance at September 30, 2024
$
606 
$
341  $
1,217  $
2,164 
Refer to Note 3, “Acquisitions and Divestitures,” of the notes to consolidated financial statements for additional information.
Adient performed its annual goodwill impairment test during the fourth quarter of fiscal year 2024 using a fair value method based on management's judgments
and assumptions regarding future cash flows. These calculations contain uncertainties as they require management to make assumptions about market
comparables, future cash flows, and the appropriate discount rates
Adient plc | Form 10-K | 70

(based on weighted average cost of capital ranging from 15.5% to 18.5%) to reflect the risk inherent in the future cash flows and to derive a reasonable
enterprise value and related premium. The estimated future cash flows reflect management's latest assumptions of the financial projections based on current and
anticipated competitive landscape, including estimates of revenue based on production volumes over the foreseeable future and long-term growth rates, and
operating margins based on historical trends and future cost containment activities. The financial projections considered the impact of the various issues
causing uncertainty in the automotive industry such as weaker vehicle demand impacted by new vehicle affordability and a high interest rate environment,
slower global adoption of electric vehicles by consumers, volatile commodity pricing, and persistent inflationary pressures. Specifically in the EMEA region,
where Adient recorded significant restructuring charges during fiscal 2024, a heightened risk of impairment exists as the difference between its fair value and
carrying value is less than 10%. The EMEA reporting unit maintains $341 million of goodwill at September 30, 2024. The decrease in EMEA’s fair value is
driven by lower forecasted vehicle volumes from weakening consumer demand, slower consumer adoption of electric vehicles, overcapacity in the industry
resulting in pricing pressure, intensifying competition from Chinese imports and lower exports to China from EMEA as domestic brands expand in China. No
goodwill impairment was recorded in fiscal 2024; however, if further degradation in the economic conditions in the EMEA region occur or if significantly
higher levels of restructuring actions are needed in the region, the EMEA reporting unit may incur significant impairment of goodwill and other long-lived
assets. Adient generally assumes operating margins in future years will normalize over time as it is believed that this is consistent with a market participant
view. The current year results are not indicative of future market participant expectations primarily due to the current challenging market conditions as
mentioned above. While revenue is not expected to return to historical levels, there are expectations for enhanced profitability and cash flows driven by near-
term efficiency actions, strategic review of portfolio and reduction of capital expenditures. Long-term profitability and cash flows will also be impacted by the
expiration of underperforming contracts and more profitable business starting in fiscal 2026 along with restructuring benefits taking full effect. Further, the
high levels of recent restructurings and the associated significant costs of such actions in the EMEA region are not expected to persist for the long-term at
comparable levels.
Adient's other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted of:
 
September 30, 2024
September 30, 2023
(in millions)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Gross
Carrying
Amount
Accumulated
Amortization
Net
Intangible assets
Patented technology
$
81 
$
(39)
$
42  $
79 
$
(32)
$
47 
Customer relationships
563 
(246)
317 
550 
(201)
349 
Trademarks and other
25 
(13)
12 
41 
(29)
12 
Total intangible assets
$
669 
$
(298)
$
371  $
670 
$
(262)
$
408 
Amortization of other intangible assets for the fiscal years ended September 30, 2024, 2023 and 2022 was $47 million, $50  million and $52  million,
respectively. Adient anticipates amortization for fiscal 2025, 2026, 2027, 2028 and 2029 will be approximately $47 million, $46 million, $40 million, $32
million and $32 million, respectively.
7. Product Warranty
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:
Adient plc | Form 10-K | 71

September 30,
(in millions)
2024
2023
Balance at beginning of period
$
21  $
21 
Accruals for warranties issued during the period
7 
8 
Settlements made (in cash or in kind) during the period
(6)
(8)
Balance at end of period
$
22  $
21 
8. Leases
Adient's lease portfolio consists of operating leases for real estate including production facilities, warehouses and administrative offices, equipment such as
forklifts, computer servers, laptops and fleet vehicles. Adient has elected not to record leases with an initial term of 12 months or less on its consolidated
statement of financial position.
A lease liability and corresponding ROU asset are recognized based on the present value of lease payments. To determine the present value of lease payments,
Adient uses its incremental borrowing rate as of lease commencement. The incremental borrowing rate (IBR) is defined as the rate Adient would have to pay to
borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Adient primarily derives its IBR
from its debt portfolio, adjusted for collateralization, lease term and jurisdictional factors.
The components of lease costs for the years ended September 30, 2024, 2023 and 2022 were as follows:
Year Ended September 30,
(in millions)
2024
2023
2022
Operating lease cost
$
108  $
108  $
117 
Short-term lease cost
29 
29 
20 
Total lease cost
$
137  $
137  $
137 
Operating lease right-of-use assets and lease liabilities included in the consolidated statement of financial position were as follows:
September 30,
(in millions)
2024
2023
Operating leases:
Operating lease right-of-use assets
Other noncurrent assets
$
248 
$
241 
Operating lease liabilities - current
Other current liabilities
$
78 
$
77 
Operating lease liabilities - noncurrent
Other noncurrent liabilities
168 
163 
$
246 
$
240 
Weighted average remaining lease term:
Operating leases
5 years
5 years
Weighted average discount rate:
Operating leases
6.2 %
6.1 %
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
September 30, 2024 were as follows:
Adient plc | Form 10-K | 72

Fiscal years (in millions)
Operating Leases
2025
$
91 
2026
64 
2027
46 
2028
28 
2029
15 
Thereafter
47 
Total lease payments
291 
Less: imputed interest
(45)
Present value of lease liabilities
$
246 
Supplemental cash flow information related to leases was as follows:
Year Ended September 30,
(in millions)
2024
2023
2022
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (non-cash activity)
$
84  $
35  $
52 
Operating cash flows:
Cash paid for amounts included in the measurement of lease liabilities
$
108  $
108  $
116 
Adient’s finance leases were not significant to the consolidated financial statements during fiscal 2024, 2023 and 2022. Refer to Note 9, “Debt and Financing
Arrangements,” of the notes to consolidated financial statements for additional information.
9. Debt and Financing Arrangements
Long-term and short-term debt consisted of the following:
September 30,
(in millions)
2024
2023
Long-term debt:
8.25% Notes due 2031
$
500  $
500 
7.00% Secured Notes due 2028
500 
500 
Term Loan B due in 2031
632 
635 
4.875% Notes due in 2026
795 
795 
3.50% Notes due in 2024
— 
130 
Other bank borrowings and finance lease obligations
5 
4 
Less: debt issuance costs
(28)
(31)
Gross long-term debt
2,404 
2,533 
Less: current portion
8 
132 
Net long-term debt
$
2,396  $
2,401 
Short-term debt:
Other bank borrowings 
1 
2 
Total short-term debt
$
1  $
2 
The weighted average interest rates on short-term debts, based on levels of debt maintained in various jurisdictions, were 5.4% and 10.1% at September 30,
2024 and 2023, respectively.
(1)
(1) 
Adient plc | Form 10-K | 73

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 and certain other restrictions, including a minimum fixed
charge coverage ratio. The ABL Credit Facility, as amended in November 2022, is set to mature on November 2, 2027, subject to certain springing maturity
provisions. Adient paid $7 million in debt issuance costs for the amended ABL Credit Facility and 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 Krona. It also provides flexibility for future amendments to the ABL Facility to incorporate certain
sustainability-based pricing provisions. 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. Interest is payable on the
ABL Credit Facility at a fluctuating rate of interest determined by reference to Term SOFR, 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 September 30, 2024, Adient had not drawn down on the ABL Credit Facility
and had availability under this facility of approximately $779 million (net of $11 million of letters of credit).
In addition, Adient Global Holdings S.à r.l., a wholly-owned subsidiary of Adient, maintains a senior secured term loan facility (the “Term Loan B
Agreement”) that had an outstanding balance of $632 million as of September 30, 2024. During fiscal 2023, Adient prepaid $350 million of the Term Loan B
Agreement principal, and wrote off $2 million of previously deferred financing costs to net financing charges. During fiscal 2024, the Term Loan B Agreement
was amended to reduce the applicable margin from 3.25% to 2.75% and extend final maturity to January 31, 2031 (which maturity was previously April 8,
2028). Adient incurred $5 million of costs associated with the modification, of which $4 million was recorded as deferred financing costs. 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 due at
final maturity. 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.
The ABL Credit Facility and Term Loan B Agreement contain covenants that are usual and customary for facilities and debt instruments of this type and that,
among other things, restrict the ability of Adient and its restricted subsidiaries to: create certain liens and enter into sale and lease-back transactions; create,
assume, incur or guarantee certain indebtedness; pay dividends or make other distributions on, or repurchase or redeem, Adient’s capital stock or certain other
debt; make other restricted payments; and consolidate or merge with, or convey, transfer or lease all or substantially all of Adient’s and its restricted
subsidiaries’ assets, to another person. These covenants are subject to a number of other limitations and exceptions set forth in the agreements. The agreements
also provide for customary events of default, including, but not limited to, cross-default clauses with other debt arrangements, failure to pay principal and
interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving Adient and its significant
subsidiaries.
During fiscal 2023, Adient Global Holdings Ltd. (“AGH”), a wholly-owned subsidiary of Adient, issued (i) $500 million (net proceeds of $494 million) in
aggregate principal amount of 7% senior secured notes due 2028 and (ii) $500 million (net proceeds of $494 million) in aggregate principal amount of 8.250%
senior unsecured notes due 2031. Interest on both of these notes are paid on April 15 and October 15 each year, beginning on October 15, 2023. These notes
contain covenants that are usual and customary. The total net proceeds of $988 million along with cash on hand were used primarily to redeem $350 million of
the senior secured term loan facility under the Term Loan B Agreement as described above, and repurchase €700  million ($743  million) of the 3.50%
unsecured notes due 2024 as described below. Adient paid $16 million in debt issuance costs for these new debt issuances.
AGH also maintains 4.875% USD-denominated unsecured notes due 2026. The aggregate principal amount of these notes was $795 million as of September
30, 2024 and 2023. AGH also paid the remaining balance of its 3.50% Euro denominated unsecured notes of €123 million ($132 million) in August 2024 upon
final maturity. During fiscal 2023, Adient repurchased €700  million ($743  million) of the 3.50% unsecured notes due 2024 at a premium of €7  million
($7 million) plus €3 million ($3 million) of accrued and unpaid interest, and expensed €2 million ($2 million) of previously deferred financing costs to net
financing charges.
Adient plc | Form 10-K | 74

During fiscal 2022, Adient repurchased the entirety of its $600 million, 9.00% Senior First Lien Notes due 2025 at a premium of $34 million plus $19 million
of accrued interest.
Principal payments required on long-term debt during the next five years are as follows:
Year Ended
September 30,
(in millions)
2025
2026
2027
2028
2029
Thereafter
Principal payments
$
8  $
803  $
7  $
506  $
6  $
1,102 
Net Financing Charges
Adient's net financing charges in the consolidated statements of income (loss) contained the following components:
Year Ended September 30,
(in millions)
2024
2023
2022
Interest expense, net of capitalized interest costs
$
191  $
186  $
161 
Banking fees and debt issuance cost amortization
18 
20 
22 
Interest income
(28)
(22)
(9)
Premium paid on repurchase of debt
— 
7 
38 
Derivative loss on Yanfeng transaction
— 
— 
3 
Net foreign exchange
8 
4 
— 
Net financing charges
$
189  $
195  $
215 
Banking fees in fiscal 2023 and 2022 includes $4 million and $8 million, respectively, of one-time accelerated-deferred financing fee charges associated with
voluntary repayments of debt. Total interest paid on both short and long-term debt for the fiscal years ended September 30, 2024, 2023 and 2022 was $187
million, $132 million and $192 million, respectively.
Other Arrangements
Adient enters into supply chain financing programs in certain domestic and foreign jurisdictions to either sell or discount accounts receivable without recourse
to third-party institutions. Sales or discounts of accounts receivable are reflected as a reduction of accounts receivable on the consolidated statements of
financial position and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. As of both September 30,
2024 and September 30, 2023, $170 million was funded under these programs.
Adient also has a program with an external financial institution under which Adient's suppliers can sell their receivables from Adient to the financial institution
at their sole discretion. Adient is not a party to the agreements between the participating suppliers and the financial institution. Adient's obligation under the
program is to pay the original amounts of supplier invoices to the financial institution on the original invoice dates. No fees are paid and no assets are pledged
by Adient. The payment terms for trade payables can range from 45 days to 120 days depending on types of services and goods being purchased. The payment
terms for molds, dies and other tools that are acquired as part of pre-production activities are in general longer, and are normally dependent on the terms which
Adient has agreed with its customers. As of September 30, 2024, and September 30, 2023, Adient's liabilities related to this program were $76 million and
$50 million, respectively. Cash flows related to the program are all presented within operating activities in Adient's consolidated statements of cash flows.
10. Derivative Instruments and Hedging Activities
Adient selectively uses derivative instruments to reduce Adient's market risk associated with changes in foreign currency. Under Adient's policy, the use of
derivatives is restricted to those intended for hedging purposes; the use of any derivative instrument for speculative purposes is strictly prohibited. A
description of each type of derivative utilized to manage Adient's risk is included in the following paragraphs. In addition, refer to Note 11, “Fair Value
Measurements,” of the notes to consolidated financial statements for information related to the fair value measurements and valuation methods utilized by
Adient for each derivative type.
Adient plc | Form 10-K | 75

Adient has global operations and participates in the foreign exchange markets to minimize its risk of loss from fluctuations in foreign currency exchange rates.
Adient primarily uses foreign currency exchange contracts to hedge certain foreign exchange rate exposures. Adient hedges 70% to 90% of the nominal amount
of each of its known foreign exchange transactional exposures. Gains and losses on derivative contracts offset gains and losses on underlying foreign currency
exposures. These contracts have been designated as cash flow hedges under ASC 815, "Derivatives and Hedging," and the hedge gains or losses due to changes
in fair value are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions occur and affect
earnings. All contracts were highly effective in hedging the variability in future cash flows attributable to changes in currency exchange rates at September 30,
2024 and 2023, respectively.
The €123 million ($132 million) aggregate principal amount of 3.50% Euro-denominated unsecured notes due August 2024 was previously designated as a net
investment hedge to selectively hedge portions of Adient's net investment in Europe. The currency effects of Adient's Euro-denominated notes are reflected in
the AOCI account within shareholders' equity attributable to Adient where they offset gains and losses recorded on Adient's net investment in Europe. During
the first quarter of fiscal 2024, Adient de-designated these notes as a net investment hedge concurrent with entering into a foreign exchange forward contract
designated as a fair value hedge of the principal balance on the 3.50% notes. The impact of foreign currency changes on the notes and the contract were
recorded in net financing charges until payment of the notes and maturity of the foreign exchange forward contract in August 2024.
During the second quarter of fiscal 2024, Adient entered into a ¥685 million ($96 million) foreign exchange forward contract to selectively hedge portions of
its net investment in China. Adient de-designated the majority of the contracted amount during fourth quarter of fiscal 2024, resulting in an outstanding
contract amount of ¥120 million ($17 million) as of September 30, 2024. The contract matured in October 2024, the impact of which was not material. During
the third quarter of fiscal 2024, Adient entered into an additional ¥570 million ($78 million) contract to selectively hedge portions of its net investment in
China. The contract is set to mature in October 2025.
Adient entered into a ¥240 million ($35 million) foreign exchange forward contract during the second quarter of fiscal 2023 to selectively hedge portions of its
net investment in China. The currency effects of the forward contract were reflected in the AOCI account within shareholders’ equity attributable to Adient,
where they offset gains and losses recorded on Adient’s net investment in China. During fiscal 2023, the foreign exchange forward contract matured, the impact
of which was not material.
Adient entered into a ¥150 million ($23 million) foreign exchange forward contract during fiscal 2022 to selectively hedge portions of its net investment in
China. The currency effects of the forward contract are reflected in the AOCI account within shareholders’ equity attributable to Adient, where they offset gains
and losses recorded on Adient’s net investment in China. The forward contract matured in early fiscal 2023, the impact of which was not material.
Adient plc | Form 10-K | 76

The following table presents the location and fair values of derivative instruments and other amounts used in hedging activities included in Adient's
consolidated statements of financial position:
 
Derivatives and Hedging
Activities Designated as
Hedging Instruments
under ASC 815
Derivatives and Hedging
Activities Not Designated as
Hedging Instruments
under ASC 815
September 30,
(in millions)
2024
2023
2024
2023
Other current assets
Foreign currency exchange derivatives
$
9 
$
30 
$
6 
$
4 
Other noncurrent assets
Foreign currency exchange derivatives
1 
— 
2 
— 
Total assets
$
10 
$
30 
$
8 
$
4 
Other current liabilities
Foreign currency exchange derivatives
$
32 
$
8 
$
— 
$
— 
Other noncurrent liabilities
Foreign currency exchange derivatives
9 
6 
— 
— 
Long-term debt
Foreign currency denominated debt
— 
130 
— 
— 
Total liabilities
$
41 
$
144 
$
— 
$
— 
Adient enters into International Swaps and Derivatives Associations master netting agreements with counterparties that permit the net settlement of amounts
owed under the derivative contracts. The master netting agreements generally provide for net settlement of all outstanding contracts with a counterparty in the
case of an event of default or a termination event. Adient has not elected to offset the fair value positions of the derivative contracts recorded in the
consolidated statements of financial position. Collateral is generally not required of Adient or the counterparties under the master netting agreements. As of
September 30, 2024 and 2023, no cash collateral was received or pledged under the master netting agreements.
The gross and net amounts of derivative instruments and other amounts used in hedging activities are as follows:
Assets
Liabilities
September 30,
(in millions)
2024
2023
2024
2023
Gross amount recognized
$
18  $
34  $
41  $
144 
Gross amount eligible for offsetting
(9)
(12)
(9)
(12)
Net amount
$
9  $
22  $
32  $
132 
The following table presents the effective portion of pretax gains (losses) recorded in other comprehensive income related to cash flow hedges:
Year Ended
September 30,
(in millions)
2024
2023
2022
Foreign currency exchange derivatives
$
(2) $
89  $
8 
Adient plc | Form 10-K | 77

The following table presents the location and amount of the effective portion of pretax gains (losses) on cash flow hedges reclassified from AOCI into Adient's
consolidated statements of income:
(in millions)
Year Ended
September 30,
2024
2023
2022
Foreign currency exchange derivatives
Cost of sales
$
46  $
66  $
6 
During the next twelve months, $23 million of pretax loss on cash flow hedges are expected to be reclassified from AOCI into Adient's consolidated statements
of income.
The following table presents the location and amount of pretax gains (losses) on fair value hedge activity in Adient's consolidated statements of income:
(in millions)
Year Ended
September 30,
2024
2023
2022
Foreign currency exchange derivatives
Net financing charges
$
1  $
—  $
— 
The following table presents the location and amount of pretax gains (losses) on derivatives not designated as hedging instruments recognized in Adient's
consolidated statements of income (loss):
(in millions)
Year Ended
September 30,
2024
2023
2022
Foreign currency exchange derivatives
Cost of sales
$
(8) $
8  $
— 
Foreign currency exchange derivatives
Net financing charges
22 
(10)
(33)
Total
$
14  $
(2) $
(33)
The effective portion of pretax gains (losses) recorded in currency translation adjustment (“CTA”) within other comprehensive income (loss) related to net
investment hedges was $(5) million, $(67) million and $151 million for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. For the years
ended September 30, 2024, 2023 and 2022, respectively, no significant gains or losses were reclassified from CTA into income for Adient's outstanding net
investment hedges.
For the years ended September 30, 2024, 2023 and 2022, no gains or losses were recognized in income for the ineffective portion of cash flow hedges.
11. Fair Value Measurements
ASC 820, "Fair Value Measurement," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing
assumptions when pricing an asset or liability as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.
ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within
different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair
value measurement.
Adient plc | Form 10-K | 78

Recurring Fair Value Measurements
The following tables present Adient's fair value hierarchy for those assets and liabilities measured at fair value. Refer to Note 14, “Retirement Plans,” of the
notes to consolidated financial statements for fair value tables of pension assets.
 
Fair Value Measurements Using:
(in millions)
Total as of
September 30,
2024
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Other current assets
Foreign currency exchange derivatives
$
15 
$
— 
$
15 
$
— 
Other noncurrent assets
Foreign currency exchange derivatives
3 
— 
3 
— 
Total assets
$
18 
$
— 
$
18 
$
— 
Other current liabilities
Foreign currency exchange derivatives
$
32 
$
— 
$
32 
$
— 
Other noncurrent liabilities
Foreign currency exchange derivatives
9 
— 
9 
— 
Total liabilities
$
41 
$
— 
$
41 
$
— 
 
Fair Value Measurements Using:
(in millions)
Total as of
September 30,
2023
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Other current assets
Foreign currency exchange derivatives
$
34 
$
— 
$
34 
$
— 
Total assets
$
34 
$
— 
$
34 
$
— 
Other current liabilities
Foreign currency exchange derivatives
$
8 
$
— 
$
8 
$
— 
Other noncurrent liabilities
Foreign currency exchange derivatives
6 
— 
6 
— 
Total liabilities
$
14 
$
— 
$
14 
$
— 
Valuation Methods
Foreign currency exchange derivatives Adient selectively hedges anticipated transactions and net investments that are subject to foreign exchange rate risk
primarily using foreign currency exchange hedge contracts. The foreign currency exchange derivatives are valued under a market approach using publicized
spot and forward prices. Changes in fair value on foreign exchange derivatives accounted for as hedging instruments under ASC 815 are initially recorded as a
component of AOCI and are subsequently reclassified into earnings when the hedged transactions occur and affect earnings. These contracts were highly
effective in hedging the variability in future cash flows attributable to changes in currency exchange rates at September 30, 2024 and 2023, respectively. The
changes in fair value of foreign currency exchange derivatives not designated as hedging instruments under ASC 815 are recorded in the consolidated
statements of income.
The fair value of cash and cash equivalents, accounts receivable, short-term debt and accounts payable approximate their carrying values. The fair value of
long-term debt, which was $2.4 billion and $2.5 billion at September 30, 2024 and 2023, respectively, was determined primarily using market quotes classified
as Level 1 inputs within the ASC 820 fair value hierarchy.
Adient plc | Form 10-K | 79

12. Stock-Based Compensation
Adient provides certain key employees equity awards in the form of restricted stock units (“RSU”) and performance share units (“PSUs”) under the Adient plc
2016 Omnibus Incentive Plan and the Adient plc 2021 Omnibus Incentive Plan (collectively, the “Plan”). Adient also provides directors with share awards
under the Adient plc 2016 Director Share Plan and the Adient plc 2021 Omnibus Incentive Plan.
Total stock-based compensation cost included in the consolidated statements of income was $31 million, $34 million and $29 million for the fiscal years ended
September 30, 2024, 2023 and 2022, respectively. No material income tax benefits were recognized in the consolidated statements of income for the share-
based compensation arrangements in any of these years due to tax valuation allowances in those years.
The following tables present activity related to the granting of awards during the year ended September 30, 2024 along with the composition of outstanding and
exercisable awards at September 30, 2024.
Restricted Stock
The Plan provides for the award of restricted stock or restricted stock units to certain employees. These awards are typically share settled except for certain
non-U.S. employees which are settled in cash. Cash settled awards are recorded in Adient's consolidated statements of financial position as a liability and
adjusted each reporting period for changes in share value until the settlement of the award. Restricted stock awards typically vest over a three year period
following the grant date. The Plan allows for different vesting terms on specific grants with approval by Adient's Board of Directors.
A summary of the status of nonvested restricted stock awards at September 30, 2024, and changes for the fiscal year then ended, is presented below:
Weighted
Average
Price
Restricted
Shares/Units
Nonvested, September 30, 2023
$
38.32 
962,089 
Granted
32.55 
888,994 
Vested
36.50 
(443,946)
Forfeited
33.99 
(216,473)
Nonvested, September 30, 2024
$
35.36 
1,190,664 
At September 30, 2024, Adient had approximately $19 million of total unrecognized compensation cost related to nonvested restricted stock arrangements
granted. That cost is expected to be recognized over a weighted-average period of 1.9 years.
Performance Share Awards
The Plan permits the grant of PSU awards. The number of PSUs granted is equal to the PSU award value divided by the closing price of a Adient ordinary
share at the grant date. The PSUs are generally contingent on the achievement of predetermined performance goals over a three-year performance period as
well as on the award holder's continuous employment until the vesting date. Each PSU that is earned will be settled with an ordinary share of Adient following
the completion of the performance period except for certain non-U.S. employees which are settled in cash. Cash settled awards are recorded in Adient's
consolidated statements of financial position as a liability and adjusted each reporting period for changes in share value until the settlement of the award.
Adient plc | Form 10-K | 80

A summary of the status of Adient's nonvested PSUs at September 30, 2024, and changes for the fiscal year then ended is presented below:
Weighted
Average
Price
Performance
Shares/Units
Nonvested, September 30, 2023
$
36.87 
858,583 
Granted
32.99 
538,680 
Vested
27.84 
(304,418)
Forfeited
34.88 
(285,216)
Nonvested, September 30, 2024
$
38.39 
807,629 
At September 30, 2024, Adient had approximately $8 million of total unrecognized compensation cost related to nonvested performance share units granted.
That cost is expected to be recognized over a weighted-average period of 1.9 years.
13. Equity and Noncontrolling Interests
The following table presents changes in AOCI attributable to Adient:
Year Ended September 30,
(in millions)
2024
2023
2022
Foreign currency translation adjustments
Balance at beginning of period
$
(854) $
(836) $
(617)
Aggregate adjustment for the period, net of tax
181 
(18)
(219)
Balance at end of period
(673)
(854)
(836)
Realized and unrealized gains (losses) on derivatives
Balance at beginning of period
13 
(8)
(8)
Current period changes in fair value, net of tax
(1)
79 
6 
Reclassification to income, net of tax
(31)
(58)
(6)
Balance at end of period
(19)
13 
(8)
Pension plans
Balance at beginning of period
(1)
(1)
(2)
Net reclassifications to AOCI
— 
— 
1 
Balance at end of period
(1)
(1)
(1)
Accumulated other comprehensive income (loss), end of period
$
(693) $
(842) $
(845)
 Foreign currency translation adjustments as of September 30, 2024 and 2023 include gains (losses) on designated net investment hedge instruments of
$(4)  million and $76  million, respectively. During the next twelve months, no significant gains or losses are expected to be reclassified from AOCI into
Adient's consolidated statements of income.
Adient consolidates certain subsidiaries in which the noncontrolling interest party has within their control the right to require Adient to redeem all or a portion
of its interest in the subsidiary. These redeemable noncontrolling interests are reported at their estimated redemption value. Any adjustment to the redemption
value impacts retained earnings but does not impact net income. Redeemable noncontrolling interests which are redeemable only upon future events, the
occurrence of which is not currently probable, are recorded at carrying value. The following table presents changes in the redeemable noncontrolling interests:
 (1)
(1)
Adient plc | Form 10-K | 81

Year Ended September 30,
(in millions)
2024
2023
2022
Beginning balance
$
57  $
45  $
240 
Net income 
38 
27 
35 
Dividends
(21)
(18)
(66)
Change in noncontrolling interest share
— 
— 
(153)
Foreign currency translation adjustments
17 
3 
(11)
Ending balance
$
91  $
57  $
45 
 During fiscal 2024, a $5 million adjustment was recorded to increase income attributable to noncontrolling interest related to fiscal 2023.
The change in noncontrolling interests in fiscal 2022 relates to Adient’s acquisition of the remaining 25% interest in Chongqing Adient Automotive
Components Co., Ltd.
Repurchases of Equity Securities
In November 2022, Adient’s Board of Directors authorized the repurchase of Adient’s ordinary shares up to an aggregate purchase price of $600 million with
no expiration date. Under the share repurchase authorization, Adient’s ordinary shares may be purchased either through discretionary purchases on the open
market, by block trades or privately negotiated transactions. The number of ordinary shares repurchased, if any, and the timing of repurchases will depend on a
number of factors, including share price, trading volume and general market conditions, as well as on working capital requirements, general business
conditions and other factors. During fiscal 2023, Adient repurchased and immediately retired 1,756,777 of its ordinary shares at an average purchase price per
share of $37.00. The aggregate amount of cash paid to repurchase the shares was $65 million. During fiscal 2024, Adient repurchased and immediately retired
9,424,668 of its ordinary shares at an average purchase price per share of $29.18. The aggregate amount of cash paid to repurchase the shares was $275 million.
As of September 30, 2024, the remaining aggregate amount of authorized repurchases was $260 million.
14. Retirement Plans
Pension Benefits
Adient maintains non-contributory defined benefit pension plans covering primarily non-U.S. employees and a limited number of U.S. employees. The benefits
provided are primarily based on years of service and average compensation or a monthly retirement benefit amount. Funding for non-U.S. plans observes the
local legal and regulatory limits. Funding for U.S. pension plans equals or exceeds the minimum requirements of the Employee Retirement Income Security
Act of 1974.
For pension plans with accumulated benefit obligations (“ABO”) that exceed plan assets, the projected benefit obligation (“PBO”), ABO and fair value of plan
assets of those plans were $162 million, $144 million and $52 million, respectively, as of September 30, 2024, and $155 million, $137 million and $48 million,
respectively, as of September 30, 2023.
For pension plans with a PBO that exceed plan assets, the PBO, ABO and fair value of plan assets of those plans were $162  million, $144  million and
$52 million, respectively, as of September 30, 2024 and $155 million, $137 million and $48 million, respectively, as of September 30, 2023.
In fiscal 2024, Adient paid contributions to the defined benefit pension plans of $20 million. Contributions of at least $10 million in cash to its defined benefit
pension plans are expected in fiscal 2025. Projected benefit payments from the plans as of September 30, 2024 are estimated as follows (in millions):
(1)
(1)
Adient plc | Form 10-K | 82

2025
$
23 
2026
25 
2027
26 
2028
25 
2029
24 
2030-2033
146 
Savings and Investment Plans
Adient sponsors various defined contribution savings plans that allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance
with plan specified guidelines. Under specified conditions, Adient will contribute to certain savings plans based on the employees' eligible pay and/or will
match a percentage of the employee contributions up to certain limits. Matching contributions expense in connection with these plans amounted to $38 million,
$46 million and $23 million for fiscal years 2024, 2023 and 2022, respectively.
Plan Assets
Adient's investment policies employ an approach whereby a mix of equities, fixed income and alternative investments are used to maximize the long-term
return of plan assets for a prudent level of risk. The investment portfolio primarily contains a diversified blend of equity and fixed income investments. Equity
investments are diversified across domestic and non-domestic stocks, as well as growth, value and small to large capitalizations. Fixed income investments
include corporate and government issues, with short-, mid- and long-term maturities, with a focus on investment grade when purchased and a target duration
close to that of the plan liability. Investment and market risks are measured and monitored on an ongoing basis through regular investment portfolio reviews,
annual liability measurements and periodic asset/liability studies. The majority of the real estate component of the portfolio is invested in a diversified portfolio
of high-quality, operating properties with cash yields greater than the targeted appreciation. Investments in other alternative asset classes, including hedge funds
and commodities, diversify the expected investment returns relative to the equity and fixed income investments. As a result of Adient's diversification
strategies, there are no significant concentrations of risk within the portfolio of investments.
Adient's actual asset allocations are in line with target allocations. Adient rebalances asset allocations as appropriate, in order to stay within a range of
allocation for each asset category.
The expected return on plan assets is based on Adient's expectation of the long-term average rate of return of the capital markets in which the plans invest. The
average market returns are adjusted, where appropriate, for active asset management returns. The expected return reflects the investment policy target asset mix
and considers the historical returns earned for each asset category. Adient's plan assets by asset category, are as follows:
 
Fair Value Measurements Using:
(in millions)
Total as of
September 30,
2024
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Net Asset Value
(NAV)
Pension
Cash
$
5 
$
5 
$
— 
$
— 
$
— 
Equity Securities
Domestic
2 
2 
— 
— 
— 
International - Developed
19 
19 
— 
— 
— 
Fixed Income Securities
Government
150 
33 
90 
— 
27 
Corporate/Other
70 
29 
29 
— 
12 
Hedge Fund
38 
— 
38 
— 
— 
Real Estate
9 
— 
— 
— 
9 
Total
$
293 
$
88 
$
157 
$
— 
$
48 
Adient plc | Form 10-K | 83

 
Fair Value Measurements Using:
(in millions)
Total as of
September 30,
2023
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Net Asset Value
(NAV)
Pension
Cash
$
6 
$
6 
$
— 
$
— 
$
— 
Equity Securities
Domestic
1 
1 
— 
— 
— 
International - Developed
17 
17 
— 
— 
— 
International - Emerging
— 
— 
— 
— 
— 
Fixed Income Securities
Government
128 
30 
75 
— 
23 
Corporate/Other
59 
24 
25 
— 
10 
Hedge Fund
34 
— 
34 
— 
— 
Real Estate
18 
— 
— 
4 
14 
Total
$
263 
$
78 
$
134 
$
4 
$
47 
The following is a description of the valuation methodologies used for assets measured at fair value.
Cash: The fair value of cash is valued at cost.
Equity Securities: The fair value of equity securities is determined by direct quoted market prices. The underlying holdings are direct quoted market prices on
regulated financial exchanges.
Fixed Income Securities: The fair value of fixed income securities is determined by direct or indirect quoted market prices. If indirect quoted market prices are
utilized, the value of assets held in separate accounts is not published, but the investment managers report daily the underlying holdings. The underlying
holdings are direct quoted market prices on regulated financial exchanges.
Hedge Funds: The fair value of hedge funds is determined by the custodian. The custodian obtains valuations from underlying managers based on market
quotes for the most liquid assets and alternative methods for assets that do not have sufficient trading activity to derive prices. Adient and custodian review the
methods used by the underlying managers to value the assets. Adient believes this is an appropriate methodology to obtain the fair value of these assets.
Real Estate: The fair value of certain investments in real estate is deemed Level 3 since these investments do not have a readily determinable fair value and
requires the fund managers independently to arrive at fair value by calculating NAV per share. In order to calculate NAV per share, the fund managers value the
real estate investments using any one, or a combination of, the following methods: independent third-party appraisals, discounted cash flow analysis of net cash
flows projected to be generated by the investment and recent sales of comparable investments. Assumptions used to revalue the properties are updated every
quarter. Adient believes this is an appropriate methodology to obtain the fair value of these assets.
Investments at NAV: For mutual or collective funds where a NAV is not publicly quoted, the NAV per share is used as a practical expedient and is based on the
quoted market prices of the underlying net assets of the fund as reported daily by the fund managers. Funds valued based on NAV per share as a practical
expedient are not categorized within the fair value hierarchy.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.
Furthermore, while Adient believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or
assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
Adient plc | Form 10-K | 84

The following sets forth a summary of changes in the fair value of pension assets measured using significant unobservable inputs (Level 3):
(in millions)
Real Estate
Pension
Asset value as of September 30, 2022
$
7 
Redemptions
(2)
Unrealized gain
(1)
Asset value as of September 30, 2023
$
4 
Redemptions
(4)
Asset value as of September 30, 2024
$
— 
Funded Status
The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status:
 
Pension Benefits
(in millions)
2024
2023
Accumulated Benefit Obligation
$
366  $
331 
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year
$
349  $
340 
Service cost
5 
5 
Interest cost
19 
18 
Actuarial loss (gain)
28 
(15)
Benefits paid
(28)
(20)
Curtailments, settlements and other
(6)
(6)
Currency translation adjustment
17 
27 
Projected benefit obligation at end of year
$
384  $
349 
Change in Plan Assets:
Fair value of plan assets at beginning of year
$
263  $
283 
Actual return on plan assets
26 
(23)
Employer contributions, net
20 
17 
Benefits paid
(28)
(20)
Curtailments, settlements and other
(6)
(14)
Currency translation adjustment
18 
20 
Fair value of plan assets at end of year
$
293  $
263 
Funded status
$
(91) $
(86)
Amounts recognized in the statement of financial position consist of:
Pension plan assets (other noncurrent assets)
$
19  $
22 
Pension benefits (of which $5 million and $16 million are included in accrued compensation and benefits,
respectively)
(110)
(108)
Net amount recognized
$
(91) $
(86)
Adient plc | Form 10-K | 85

 
Pension Benefits
 
U.S. Plans
Non-U.S. Plans
2024
2023
2024
2023
Weighted Average Assumptions :
Discount rate 
4.99 %
5.87 %
4.75 %
5.60 %
Rate of compensation increase
N/A
N/A
4.82 %
4.53 %
(1)
Plan assets and obligations are determined based on a September 30 measurement date.
(2)
Adient considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, Adient uses different discount
rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S.
pension plan, Adient uses a discount rate provided by an independent third-party calculated based on an appropriate mix of high quality bonds. For the
non-U.S. pension plans, Adient consistently uses the relevant country specific benchmark indices for determining the various discount rates.
Accumulated Other Comprehensive Income
The amounts in AOCI on the consolidated statements of financial position, exclusive of tax impacts, that have not yet been recognized as components of net
periodic benefit cost at September 30, 2024 and 2023 were $2 million and $2 million, respectively, related to pension benefits.
The amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year for pension and postretirement benefits are
not significant.
Net Periodic Benefit Cost
The tables that follow contain the components and key assumptions of net periodic benefit cost related to Adient’s pension plans:
 
Pension Benefits
(in millions)
2024
2023
2022
Components of Net Periodic Benefit Cost (Credit):
Service cost
$
6  $
5  $
7 
Interest cost
19 
18 
10 
Expected return on plan assets
(12)
(12)
(14)
Net actuarial loss (gain)
13 
19 
(7)
Settlement loss
1 
8 
1 
Net periodic benefit cost (credit)
$
27  $
38  $
(3)
 
Pension Benefits
 
U.S. Plans
Non-U.S. Plans
2024
2023
2022
2024
2023
2022
Expense Assumptions:
Discount rate
5.87 %
5.51 %
3.06 %
5.60 %
4.98 %
2.14 %
Expected return on plan assets
6.75 %
6.75 %
6.75 %
4.95 %
4.53 %
3.20 %
Rate of compensation increase
N/A
N/A
NA
4.53 %
4.43 %
4.05 %
(1)
(2)
Adient plc | Form 10-K | 86

15. Restructuring and Impairment Costs
Restructuring
To better align its resources with its overall strategies and reduce the cost structure of its global operations to address the softness in certain underlying markets,
Adient commits to restructuring plans as necessary. Adient, in general, records costs associated with separation programs when management has approved the
plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs
associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period. All other costs
associated with restructuring activities are expensed as incurred.
During fiscal 2024, Adient committed to a restructuring plan of $169 million that was offset by prior period underspend of $1 million and $9 million of cost
reimbursement committed by a customer. The fiscal 2024 charges are mostly related to termination benefits in Europe. The 2024 Plan is being implemented in
response to the macroeconomic factors occurring in the European automotive market causing reduced production volumes and to ensure Adient maintains a
competitive cost structure by reducing operating, administrative and engineering costs, and increasing efficiencies. Restructuring actions associated with these
specific plans will primarily occur in fiscal years 2025 and 2026 and are expected to be substantially complete by fiscal year 2027. Restructuring costs are
included in restructuring and impairment costs in the consolidated statements of income. The following tables summarize the changes in Adient's restructuring
reserve.
(in millions)
Employee
Severance and
Termination
Benefits
Currency
Translation and
Other
Total
Balance at September 30, 2021
$
112 
$
3 
$
115 
2022 Plan charges
25 
— 
25 
Utilized - cash
(57)
— 
(57)
Noncash adjustment - (under) overspend and other
(11)
(12)
(23)
Balance at September 30, 2022
$
69 
$
(9)
$
60 
2023 Plan charges
39 
— 
39 
Utilized - cash
(53)
— 
(53)
Noncash adjustment - (under) overspend and other
1 
4 
5 
Balance at September 30, 2023
$
56 
$
(5)
$
51 
2024 Plan charges
169 
— 
169 
Utilized - cash
(43)
— 
(43)
Noncash adjustment - (under) overspend and other
(1)
6 
5 
Balance at September 30, 2024
$
181 
$
1 
$
182 
Current restructuring reserve - other current liabilities
$
87 
Noncurrent restructuring reserve - other noncurrent liabilities
95 
Balance at September 30, 2024
$
182 
Adient's management closely monitors its overall cost structure and continually analyzes each of its businesses for opportunities to consolidate current
operations, improve operating efficiencies and locate facilities in low cost countries in close proximity to customers. This ongoing analysis includes a review of
its manufacturing, engineering, purchasing and administrative functions, as well as the overall global footprint for all its businesses. Because of the importance
of new vehicle sales by automotive manufacturers, Adient is affected by the general business conditions in the automotive industry. Future adverse
developments in the automotive industry could impact Adient's liquidity position, lead to impairment charges and/or require additional restructuring of its
operations.
Impairment
During fiscal 2024, Adient recorded an impairment loss of $9 million on its investment in Adient Aerospace. The impairment is included in restructuring and
impairment costs in the consolidated statement of income (loss).
Adient plc | Form 10-K | 87

16. Income Taxes
Consolidated income (loss) before income taxes and noncontrolling interests for the years ended September 30, 2024, 2023, and 2022 is as follows:
Year Ended
September 30,
(in millions)
2024
2023
2022
Ireland
$
(13) $
(1) $
(2)
United States
(361)
(178)
(595)
Other Foreign
507 
474 
651 
Income before income taxes and noncontrolling interests
$
133  $
295  $
54 
The components of the provision (benefit) for income taxes are as follows:
 
Year Ended
September 30,
(in millions)
2024
2023
2022
Current
Ireland
$
—  $
—  $
(1)
US - Federal and State
5 
4 
6 
Other Foreign
28 
120 
84 
33 
124 
89 
Deferred
Ireland
— 
— 
1 
US - Federal and State
— 
1 
(1)
Other Foreign
(1)
(125)
5 
(1)
(124)
5 
Income tax provision
$
32  $
—  $
94 
The significant components of Adient's income tax provision are summarized in the following tables. These amounts do not include the impact of income tax
expense related to Adient’s nonconsolidated partially-owned affiliates, which is netted against equity income on the consolidated statements of income (loss).
The reconciliation between the Irish statutory income tax rate, and Adient’s effective tax rate is as follows:
Adient plc | Form 10-K | 88

Year Ended
September 30,
(in millions)
2024
2023
2022
Tax expense at Ireland statutory rate
$
17  $
37  $
7 
State and local income taxes, net of federal benefit
(15)
(5)
(38)
Foreign tax rate differential
9 
22 
(1)
Notional interest deduction
(6)
(6)
(6)
Credits and incentives
(12)
(7)
(15)
Repatriation of foreign earnings
18 
24 
24 
Foreign exchange
17 
(7)
(2)
Impact of tax rate changes
(1)
— 
(3)
Audit settlements and change in uncertain tax positions
(43)
(8)
(2)
Change in valuation allowance
90 
(61)
94 
Tax adjustments to value of investments
(38)
— 
— 
Tax impact of corporate equity and business restructuring transactions
1 
1 
30 
Other
(5)
10 
6 
Income tax provision
$
32  $
—  $
94 
The income tax expense was higher than the Irish statutory rate of 12.5% for fiscal 2024 due to the inability to record a tax benefit for losses in jurisdictions
with valuation allowances, the repatriation of foreign earnings, tax expense related to foreign exchange remeasurements of tax balances primarily in Mexico,
and tax expense from the establishment of valuation allowances at certain subsidiaries, partially offset by tax benefits from the release of uncertain tax
positions due to audit closures and from the release of valuation allowances at certain subsidiaries. No items included in the other category are individually, or
when appropriately aggregated, significant.
The income tax expense was lower than the Irish statutory rate of 12.5% for fiscal 2023 primarily due to the release of valuation allowances in Mexico,
partially offset by the inability to recognize a tax benefit for losses in jurisdictions with valuation allowances, the repatriation of foreign earnings, and foreign
tax rate differentials. No items included in the other category are individually, or when appropriately aggregated, significant.
The income tax expense was higher than the Irish statutory rate of 12.5% for fiscal 2022 primarily due to the inability to recognize a tax benefit for losses in
jurisdictions with valuation allowances, the establishment of valuation allowances in certain jurisdictions, and the repatriation of foreign earnings, partially
offset by tax benefits related to the release of valuation allowances in certain jurisdictions. No items included in the other category are individually, or when
appropriately aggregated, significant.
Adient’s foreign tax rate differential primarily comprises two components. First is the difference in foreign tax rates from the Irish statutory tax rate that will
fluctuate with the mix of income and losses in multiple jurisdictions with higher or lower statutory tax rates. Second is the elimination of the effects, at the Irish
statutory tax rate, on the amount of income reported for nonconsolidated partially-owned affiliates whose corresponding income tax expense is already netted
against equity income on the consolidated statements of income and reflected in income (loss) before income taxes. During fiscal 2024, 2023 and 2022,
significant income and loss jurisdictions include Brazil, China, Germany, Luxembourg, Mexico, Thailand, the United Kingdom, and the United States, with
federal statutory tax rates ranging between 16% and 34%, which are all above the Irish statutory rate of 12.5%.
Due to the significant jurisdictions in which it operates having statutory tax rates higher than the Irish statutory rate of 12.5%, Adient generally expects that
foreign tax rate differentials will continue to result in net expense when its consolidated subsidiaries generate net pretax income and overall pretax income does
not consist primarily of equity income from nonconsolidated partially-owned affiliates. In periods in which Adient’s consolidated subsidiaries generate net
losses, or overall pretax income consists primarily of equity income reported from nonconsolidated partially-owned affiliates, Adient generally expects that
foreign tax rate differentials will result in a net benefit. During fiscal 2024 and 2023, Adient’s pretax income was primarily generated by Adient’s consolidated
subsidiaries, resulting in a net foreign tax rate differential expense. During fiscal 2022, Adient’s pretax income consisted primarily of income of
nonconsolidated partially-owned affiliates whose corresponding
Adient plc | Form 10-K | 89

income tax expense is netted against equity income on the consolidated statements of income, with the elimination of the effects at the Irish statutory tax rate
resulting in a net foreign tax rate differential benefit.
For fiscal 2024, the foreign tax differential expense of $9 million includes $20 million related to the higher tax expense resulting from the tax rate differential
primarily from the mix of income and losses in the significant jurisdictions listed above with higher statutory tax rates than Ireland, which was partially offset
by $11 million related to the elimination of the tax effects of the equity income from nonconsolidated partially-owned affiliates whose corresponding income
tax expense is already netted in income before income taxes.
For fiscal 2023, the foreign tax differential expense of $22 million includes $33 million related to the higher tax expense resulting from the tax rate differential
primarily from the mix of income and losses in the significant jurisdictions listed above with higher statutory tax rates than Ireland, which was partially offset
by $11 million related to the elimination of the tax effects of the equity income from nonconsolidated partially-owned affiliates whose corresponding income
tax expense is already netted in income before income taxes.
For fiscal 2022, the foreign tax differential benefit of $1 million includes $9 million related to the elimination of the tax effects of the equity income from
nonconsolidated partially-owned affiliates, partially offset by $8 million related to the higher tax expense resulting from tax rate differential primarily related to
the mix of income and losses in Adient’s consolidated subsidiaries with tax rates higher than Ireland.
Deferred taxes are classified in the consolidated statements of financial position as follows:
September 30,
(in millions)
2024
2023
Other noncurrent assets
$
245  $
253 
Other noncurrent liabilities
(191)
(206)
Net deferred tax asset
$
54  $
47 
Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities included:
 
September 30,
(in millions)
2024
2023
Deferred tax assets:
Accrued expenses and reserves
$
123  $
135 
Employee and retiree benefits
24 
25 
Net operating loss and other carryforwards
1,400 
1,293 
Property, plant and equipment
114 
113 
Intangible assets
112 
132 
Operating lease liabilities
57 
55 
Research and development
102 
66 
1,932 
1,819 
Valuation allowances
(1,769)
(1,655)
163 
164 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries
39 
38 
Indirect tax credits
— 
10 
Operating lease right-of-use assets
57 
55 
Other
13 
14 
109 
117 
Net deferred tax asset
$
54  $
47 
Adient plc | Form 10-K | 90

At September 30, 2024, Adient had available net operating loss carryforwards of approximately $4.7 billion which are available to reduce future tax liabilities.
Net operating loss carryforwards of $2.4 billion will expire at various dates between 2025 and 2044, with the remainder having an indefinite carryforward
period. Net operating loss carryforwards of $3.4 billion are offset by a valuation allowance.
Adient reviews the realizability of its deferred tax assets on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required.
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or combined group recording the net
deferred tax asset are considered, along with any other positive or negative evidence. All of the factors that Adient considers in evaluating whether and when to
establish or release all or a portion of the deferred tax asset valuation allowance involve significant judgment. Since future financial results may differ from
previous estimates, periodic adjustments to Adient's valuation allowances may be necessary.
Given current earnings and anticipated future earnings at certain subsidiaries, Adient believes that there is a possibility that sufficient positive evidence may
become available that would allow the release of all, or a portion of, valuation allowances at certain subsidiaries within the next twelve months. A release of
valuation allowances, if any, would result in the recognition of certain deferred tax assets which could generate a material income tax benefit for the period in
which such release is recorded.
As a result of Adient's fiscal 2024 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other
positive and negative evidence, Adient determined it was more likely than not that certain deferred tax assets would be realizable and recorded an income tax
benefit of $14 million in China, $8 million in Mexico, $7 million in France, and $6 million in Japan to release valuation allowances. In addition, Adient
determined it was necessary to establish valuation allowances on certain deferred tax assets in Poland and Mexico, recording tax expense of $14 million and
$5 million, respectively. Adient continues to record valuation allowances on certain deferred tax assets in Germany, Hungary, Luxembourg, Mexico, Poland,
Spain, the United Kingdom, the U.S. and other jurisdictions as it remains more likely than not that they will not be realized. During fiscal 2024, the valuation
allowance in Luxembourg increased by $38 million related to tax adjustments to the value of certain investments, with an offsetting increase in net operating
loss carryforwards and no net impact to tax expense.
As a result of Adient's fiscal 2023 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other
positive and negative evidence, Adient determined it was more likely than not that certain deferred tax assets in Mexico would be realizable and recorded an
income tax benefit of $114  million to release valuation allowances. In addition, Adient determined it was necessary to release valuation allowances and
establish valuation allowances in other jurisdictions that did not have a material impact on Adient’s financial statements.
As a result of Adient's fiscal 2022 analysis of the realizability of its worldwide deferred tax assets, and after considering tax planning initiatives and other
positive and negative evidence, Adient determined it was more likely than not that certain deferred tax assets in Canada, Japan, and other jurisdictions would
not be realized and recorded income tax expense of $12 million, $3 million and $3 million, respectively, to establish valuation allowances. Additionally, Adient
determined it was more likely than not that deferred tax assets in the Czech Republic and other jurisdictions would be realizable and recorded income tax
benefit of $11 million and $2 million, respectively, to release valuation allowances.
Adient is subject to income taxes in Ireland, the U.S. and other foreign jurisdictions. With few exceptions, Adient is no longer subject to income tax
examination by U.S. federal, state or local tax authorities or by non-U.S. tax authorities for years before 2014.
Adient regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. For the year ended
September 30, 2024, Adient believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting
in no material impact on its consolidated financial statements. However, the final determination with respect to tax audits and any related litigation could be
materially different from Adient’s estimates.
For the years ended September 30, 2024, 2023 and 2022, Adient had gross tax effected unrecognized tax benefits of $422  million, $527  million, and
$499 million, respectively. If recognized, $106 million of Adient's unrecognized tax benefits would impact the effective tax rate. Total net accrued interest for
the years ended September 30, 2024, 2023 and 2022, was approximately $21 million, $31 million and $22 million, respectively (net of tax benefit). Adient
recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense.
Adient plc | Form 10-K | 91

During fiscal 2024, Adient settled audits in various jurisdictions that resulted in a $115 million reduction to its unrecognized tax benefits, of which $63 million
was recorded as a tax benefit. The remaining difference primarily offset other changes in deferred tax balances.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended September 30,
(in millions)
2024
2023
2022
Beginning balance
$
527  $
499  $
499 
Additions for tax positions related to the current year
6 
2 
62 
Additions for tax positions of prior years
18 
50 
2 
Reductions for tax positions of prior years
(9)
(5)
(52)
Settlements with taxing authorities
(115)
(11)
(3)
Statute closings
(5)
(8)
(9)
Ending balance
$
422  $
527  $
499 
During the next twelve months, it is possible that tax audit resolutions or applicable statute of limitation lapses could result in a significant change in the
balance of gross unrecognized tax benefits. Given the number of years, jurisdictions and positions subject to examination, Adient is unable to estimate the full
range of possible adjustments to the balance of unrecognized tax benefits.
Adient has recorded a deferred tax liability of approximately $39 million as of September 30, 2024 on the undistributed earnings of certain consolidated and
unconsolidated foreign affiliates for which Adient does not have an indefinite reinvestment assertion. Adient has not provided for deferred taxes on the
remainder of undistributed earnings from consolidated foreign affiliates because such earnings should not give rise to additional tax liabilities upon repatriation
or are considered to be indefinitely reinvested. It is not practicable to determine the unrecognized deferred tax liability on these earnings because the actual tax
liability, if any, is dependent on circumstances existing when remittance occurs.
Income taxes paid for the fiscal years ended September 30, 2024, 2023 and 2022 were $96 million, $94 million and $77 million, respectively.
Impacts of Tax Legislation and Change in Statutory Tax Rates
On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 into law. Adient does not expect the provisions of the legislation to have a
significant impact on the effective tax rate or the income tax payable and deferred income tax positions of Adient.
During fiscal years 2024, 2023, and 2022, other tax legislation was adopted in various jurisdictions. These law changes did not have a material impact on the
consolidated financial statements.
Tax Impact of One-Time Items
During fiscal 2022, Adient recognized a one-time gain of $32 million associated with the retrospective recovery of indirect tax credits in Brazil resulting from
Adient’s prioritization of those credits, resulting in net tax expense of $4 million.
17. Segment Information
Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which
is inclusive of North America and South America; 2) Europe, the Middle East and Africa (“EMEA”) and 3) 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,
Adient plc | Form 10-K | 92

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.
The following table summarizes net sales and adjusted EBITDA by reportable segment for fiscal 2024, 2023 and 2022:
(in millions)
Americas
EMEA
Asia
Corporate/Eliminations
Consolidated
Fiscal 2024
Net sales
$
6,763  $
5,029  $
2,989  $
(93)
$
14,688 
Adjusted EBITDA
$
375  $
155  $
439  $
(89)
$
880 
Fiscal 2023
Net sales
$
7,220  $
5,195  $
3,085  $
(105)
$
15,395 
Adjusted EBITDA
$
336  $
232  $
464  $
(94)
$
938 
Fiscal 2022
Net sales
$
6,557  $
4,764  $
2,926  $
(126)
$
14,121 
Adjusted EBITDA
$
242  $
138  $
383  $
(88)
$
675 
The following is a reconciliation of Adient's reportable segments' adjusted EBITDA to income before income taxes:
Year Ended
September 30,
(in millions)
2024
2023
2022
Adjusted EBITDA
Americas
$
375  $
336  $
242 
EMEA
155 
232 
138 
Asia
439 
464 
383 
Subtotal
969 
1,032 
763 
Corporate-related costs 
(89)
(94)
(88)
Restructuring and impairment costs 
(168)
(40)
(25)
Purchase accounting amortization 
(48)
(52)
(54)
Restructuring related activities
— 
2 
(6)
Loss on disposal transactions 
(7)
(6)
— 
Depreciation
(285)
(290)
(298)
Equity based compensation
(31)
(34)
(29)
Other items 
2 
5 
(4)
Earnings before interest and income taxes
343 
523 
259 
Net financing charges
(189)
(195)
(215)
Other pension income (expense)
(21)
(33)
10 
Income before income taxes
$
133  $
295  $
54 
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. During fiscal 2024, an impairment
charge of $9 million related to Adient’s investment in Adient Aerospace was recorded. During fiscal 2022, an impairment charge of $4 million related to the
withdrawal from and sale of its operations in Russia, and a held-for-sale impairment charge of $6  million were recorded in EMEA. Refer to Note 15,
“Restructuring and Impairment Costs,” of the notes to the consolidated financial statements for more information.
(1)
(2)
(3)
 (4)
(5)
(6)
Adient plc | Form 10-K | 93

(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. Fiscal 2024 and 2023 also each include a non-recurring $10 million gain on the sale of two restructured facilities in Americas.
(5) Fiscal 2024 reflects 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), partially offset by a $1 million gain on sale of a nonconsolidated partially-owned affiliate. Fiscal 2023 reflects $3 million
and $3 million of non-cash impairment related to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively,
(6) Fiscal 2024 reflects a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil, partially offset by
$1 million of transaction costs and a $1 million one-time divestiture related impact at an affiliate. Fiscal 2023 reflects $4 million of one-time divestiture gain at
an affiliate and $4 million of a gain associated with the retrospective recovery of indirect tax credits in Brazil, partially offset by $3 million of transaction costs.
Fiscal 2022 includes $3 million and $7 million of non-cash impairments of certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia
and EMEA, respectively, $8 million of transaction costs, a $14 million charge related to a non-recurring contract related settlement, $1 million of accounts
receivable allowances resulting from the withdrawal from and sale of operations in Russia, and $2 million of loss on finalization of asset sale in Turkey,
partially offset by a gain of $32 million associated with the retrospective recovery of indirect tax credits in Brazil.
Additional Segment Information
Year Ended September 30, 2024
Reportable Segments
Reconciling
Items
Consolidated
(in millions)
Americas
EMEA
Asia
Net Sales
$
6,763  $
5,029  $
2,989  $
(93)
$
14,688 
Equity Income
3 
15 
73 
(1)
90 
Total Assets
2,863 
2,349 
3,185 
954 
9,351 
Depreciation
127 
112 
46 
— 
285 
Amortization
12 
2 
33 
— 
47 
Capital Expenditures
100 
107 
59 
— 
266 
Reconciling items include the elimination of intercompany transactions, corporate-related assets and other amounts to reconcile to consolidated totals.
Specific reconciling items for equity income represents $1 million of purchase accounting amortization. Corporate-related assets primarily include cash and
assets held for sale.
Year Ended September 30, 2023
Reportable Segments
Reconciling
Items
Consolidated
(in millions)
Americas
EMEA
Asia
Net Sales
$
7,220  $
5,195  $
3,085  $
(105)
$
15,395 
Equity Income
3 
16 
71 
(6)
84 
Total Assets
3,122 
2,252 
2,930 
1,120 
9,424 
Depreciation
133 
107 
50 
— 
290 
Amortization
12 
3 
35 
— 
50 
Capital Expenditures
114 
81 
57 
— 
252 
 Reconciling items include the elimination of intercompany transactions, corporate-related assets and other amounts to reconcile to consolidated totals.
Specific reconciling items for equity income represents $6 million of non-cash impairments of Adient's investments in partially-owned affiliates, $2 million of
restructuring related charges, and $2 million of purchase accounting amortization, partially offset by a $4 million gain on sale of certain assets at affiliates in
China. Corporate-related assets primarily include cash and assets held for sale.
(1)
(1) 
(1)
(1)
Adient plc | Form 10-K | 94

Year Ended September 30, 2022
Reportable Segments
Reconciling
Items
Consolidated
(in millions)
Americas
EMEA
Asia
Net Sales
$
6,557 
4,764  $
2,926 
(126)
$
14,121 
Equity Income
— 
12 
76 
(13)
75 
Total Assets
3,073 
2,166 
2,959 
960 
9,158 
Depreciation
130 
116 
52 
— 
298 
Amortization
12 
4 
36 
— 
52 
Capital Expenditures
104 
73 
50 
— 
227 
 Reconciling items include the elimination of intercompany transactions, corporate-related assets and other amounts to reconcile to consolidated totals.
Specific reconciling items for equity income represents $10 million of non-cash impairments of Adient's investments in partially-owned affiliates, $1 million of
restructuring related charges, $2 million of purchase accounting amortization, $7 million of a non-recurring customer termination charge at an affiliate in Asia,
partially offset by a $7 million non-recurring gain on sale of land use rights at an affiliate in China. Corporate-related assets primarily include cash and deferred
income tax assets.
(1)
(1)
Adient plc | Form 10-K | 95

Geographic Information
Financial information relating to Adient's operations by geographic area is as follows:
Net Sales
 
Year Ended September 30,
(in millions)
2024
2023
2022
Americas
United States
$
5,893  $
6,530  $
5,876 
Mexico
2,634 
2,661 
2,427 
Other Americas
314 
338 
377 
Regional Elimination
(2,078)
(2,309)
(2,123)
6,763 
7,220 
6,557 
EMEA
Germany
942 
1,046 
862 
Poland
939 
963 
770 
Czech Republic
756 
900 
962 
Other EMEA
3,736 
3,714 
3,462 
Regional Elimination
(1,344)
(1,428)
(1,292)
5,029 
5,195 
4,764 
Asia
China
1,420 
1,385 
1,374 
Thailand
496 
564 
508 
Korea
488 
534 
534 
Japan
344 
373 
264 
Other Asia
294 
284 
270 
Regional Elimination
(53)
(55)
(24)
2,989 
3,085 
2,926 
Inter-segment elimination
(93)
(105)
(126)
Total
$
14,688  $
15,395  $
14,121 
Adient plc | Form 10-K | 96

Long-Lived Assets (consisting of net property, plant and equipment)
 
Year Ended September 30,
(in millions)
2024
2023
Americas
United States
$
420  $
446 
Mexico
151 
152 
Other Americas
17 
18 
588 
616 
EMEA
Germany
127 
127 
Poland
155 
131 
Czech Republic
35 
30 
Other EMEA
233 
228 
550 
516 
Asia
China
115 
113 
Thailand
52 
45 
Korea
23 
22 
Japan
62 
51 
Other Asia
20 
19 
272
250
Total
$
1,410  $
1,382 
18. Nonconsolidated Partially-Owned Affiliates
Investments in the net assets of nonconsolidated partially-owned affiliates are reported in the "Investments in partially-owned affiliates" line in the consolidated
statements of financial position. Equity in the net income of nonconsolidated partially-owned affiliates are reported in the “Equity income” line in the
consolidated statements of income (loss). Adient maintains total investments in partially-owned affiliates of $338 million and $303 million at September 30,
2024 and 2023, respectively. Operating information for nonconsolidated partially-owned affiliates is as follows:
% ownership at September 30,
Name of key partially-owned affiliate
2024
2023
KEIPER Seating Mechanisms Co., Ltd. (“KEIPER”)
50.0%
50.0%
Changchun FAWAY Adient Automotive Systems Co. Ltd. (“CFAA”)
49.0%
49.0%
Year Ended September 30,
(in millions)
2024
2023
2022
Income statement data:
Net sales
$
3,783  $
3,791  $
4,039 
Gross profit
$
368  $
346  $
374 
Net income
$
184  $
173  $
189 
Net income attributable to the entity
$
182  $
171  $
187 
Adient plc | Form 10-K | 97

September 30,
(in millions)
2024
2023
Balance sheet data:
Current assets
$
2,072  $
1,800 
Noncurrent assets
$
730  $
756 
Current liabilities
$
1,875  $
1,639 
Noncurrent liabilities
$
269  $
283 
During fiscal 2023, Adient concluded that indicators of other-than-temporary impairment were present related to nonconsolidated partially-owned affiliates in
Asia and EMEA, and recorded non-cash impairment charges of $3 million and $3 million as a result, respectively.
In fiscal 2023 and 2022, Adient and KEIPER have modified existing supply agreements, resulting in reductions in Adient’s purchase prices on certain products.
Such modifications resulted in reductions of $25 million and $34 million in Adient’s cost of sales and equity income, respectively, during fiscal 2023. The
modifications resulted in reductions of $14 million and $17 million in Adient’s cost of sales and equity income, respectively, during fiscal 2022.
19. Commitments and Contingencies
Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability,
casualty, environmental, safety and health, intellectual property, employment, trade compliance, commercial and contractual matters, and various other matters.
Although the outcome of any such lawsuit, claim or proceeding cannot be predicted with certainty and some may be disposed of unfavorably to Adient, it is
management's opinion that none of these will have a material adverse effect on Adient's financial position, results of operations or cash flows. Costs related to
such matters were not material to the periods presented.
Adient accrues for potential environmental liabilities when it is probable a liability has been incurred and the amount of the liability is reasonably estimable.
Reserves for environmental liabilities totaled $3 million and $4 million at September 30, 2024 and 2023, respectively. Adient reviews the status of its
environmental sites on a quarterly basis and adjusts its reserves accordingly. Such potential liabilities accrued by Adient do not take into consideration possible
recoveries of future insurance proceeds. They do, however, take into account the likely share other parties will bear at remediation sites. It is difficult to
estimate Adient's ultimate level of liability at many remediation sites due to the large number of other parties that may be involved, the complexity of
determining the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, the
uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective
actions at the sites, the often quite lengthy periods over which eventual remediation may occur, and changing environmental laws. Nevertheless, Adient does
not currently believe that any claims, penalties or costs in connection with known environmental matters will have a material adverse effect on Adient's
financial position, results of operations or cash flows.
20. Related Party Transactions
In the ordinary course of business, Adient enters into transactions with related parties, such as equity affiliates. Such transactions consist of the sale or purchase
of goods and other arrangements.
The following table sets forth the location and amounts of net sales to and purchases from related parties included in Adient's consolidated statements of
income (loss):
Year Ended September 30,
(in millions)
2024
2023
2022
Net sales to related parties
Net sales
$
251  $
253  $
247 
Purchases from related parties
Cost of sales
399 
397 
434 
Adient plc | Form 10-K | 98

The following table sets forth the location and amount of accounts receivable due from and payable to related parties in Adient's consolidated statements of
financial position:
September 30,
(in millions)
2024
2023
Accounts receivable due from related parties
Accounts receivable
$
28  $
26 
Accounts payable due to related parties
Accounts payable
114 
67 
Average receivable and payable balances with related parties remained consistent with the period end balances shown above.
Adient plc | Form 10-K | 99

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under the supervision of and with the participation of management, including the principal executive officer and principal financial officer, Adient conducted
an evaluation of the effectiveness of the design and operation of disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended, or the Exchange Act, as of September 30, 2024, the end of the period covered by this report, or the Evaluation
Date. Based upon the evaluation, the principal executive officer and principal financial officer concluded that Adient's disclosure controls and procedures were
effective at the reasonable assurance level as of the Evaluation Date. Disclosure controls and procedures are controls and procedures designed to provide
reasonable assurance that information required to be disclosed in Adient's reports filed or submitted under the Exchange Act, such as this report, is recorded,
processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include controls and
procedures designed to provide reasonable assurance that such information is accumulated and communicated to Adient's management, including the principal
executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Definition of and Inherent Limitations over Internal Control over Financial Reporting
Adient's internal control over financial reporting is a process designed by, or under the supervision of, the principal executive officer and principal financial
officer, or persons performing similar functions, and effected by Adient's Board of Directors, management and other personnel designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. Adient's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets; (ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the receipts and expenditures
are being made only in accordance with authorizations of Adient's management and directors; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of Adient's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance
with the policies or procedures may deteriorate.
Management's Annual Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f)
under the Exchange Act). Management has assessed the effectiveness of Adient's internal control over financial reporting based on the criteria set forth in
Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. Based on this
evaluation, management concluded that Adient maintained effective internal control over financial reporting as of September 30, 2024. The effectiveness of
Adient's internal control over financial reporting as of September 30, 2024 has been audited by PricewaterhouseCoopers LLP, an independent registered public
accounting firm, as stated in their report in Item 8 of Part II of this Form 10-K.
Changes in Internal Control over Financial Reporting
During fiscal 2024, Adient implemented a new enterprise resource planning (“ERP”) system at certain of its 100% owned entities in China. The
implementation of the ERP system is planned to occur in phases over the coming years for all majority-owned entities in China. There were no other changes in
internal control over financial reporting during the fiscal year ended September 30, 2024 that have materially affected, or are reasonably likely to materially
affect, Adient's internal control over financial reporting.
Adient plc | Form 10-K | 100

Item 9B. Other Information
During the fourth quarter of fiscal year 2024, none of Adient’s directors or executive officers adopted or terminated any “Rule 10b5-1 trading arrangement” or
“non-Rule 10b5-1 trading arrangement” as those terms are defined in Item 408(a) of Regulation S-K.
On November 14, 2024, the Board of Directors (the “Board”) of Adient plc (“Adient”) approved a restricted stock unit award for Jerome J. Dorlack, Adient’s
President and Chief Executive Officer (the “Replacement RSU Award”), pursuant to Adient’s 2021 Omnibus Incentive Plan in replacement of 30% of his salary
for calendar year 2025 in connection with a salary reduction program, which is being done to further Adient’s commitment to aligning pay with performance
and the interests of Adient’s chief executive officer with the interests of its shareholders. The Replacement RSU Award will have a grant date of January 1,
2025, and a grant date fair value in an amount equal to 30% of his salary as in effect at the time of grant. The terms of the Replacement RSU Award will be
reflected in a form of Restricted Shares or Restricted Share Unit Award Agreement that was previously approved for use in granting a salary replacement
restricted stock unit award to Mr. Dorlack, as disclosed in Adient’s Current Report on Form 8-K dated as of November 8, 2023. The Replacement RSU Award
granted to Mr. Dorlack will vest upon the one-year anniversary of the grant date (subject to continued vesting upon an involuntary termination without cause,
or accelerated vesting upon death or disability).
On November 14, 2024, the Human Capital and Compensation Committee (the “Committee”) of the Board approved a one-time restricted stock unit retention
award for James J. Huang, Adient’s Executive Vice President, APAC (the “Special RSU Award”), pursuant to Adient’s 2021 Omnibus Incentive Plan based on
the centrality of his role in fiscal year 2024 and his key contributions to date. The Special RSU Award had a grant date of November 14, 2024 and a grant date
fair value in an amount equal to $2,000,000. The Special RSU Award granted to Mr. Huang will vest one-half per year over two years (subject to continued
vesting upon an involuntary termination without cause, or accelerated vesting upon death or disability). The terms of the Special RSU Award will be reflected
in a form of Restricted Shares or Restricted Share Unit Award Agreement (the “Special RSU Agreement”), which is filed as Exhibit 10.42 to this Annual Report
on Form 10-K and incorporated by reference herein. The foregoing description of the Special RSU Agreement is not complete and is qualified in its entirety by
the full text of the Special RSU Agreement.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
Adient plc | Form 10-K | 101

PART III
Item 10. Directors, Executive Officers and Corporate Governance
Adient intends to hold its 2025 annual general meeting of shareholders on March 11, 2025.
The information required by this Item is set forth under the sections entitled "Q: Where can I find Corporate Governance materials for Adient?," "Proposal
One: Election of Directors," "Corporate Governance," "Board and Committee Information," "Audit Committee Report," and "Delinquent Section 16(a)
Reports" in Adient's 2025 Proxy Statement to be filed with the U.S. Securities and Exchange Commission ("SEC") within 120 days after September 30, 2024 in
connection with the solicitation of proxies for Adient's 2025 annual general meeting of shareholders and is incorporated herein by reference.
Adient has an Ethics Policy that applies to all employees, including Adient's principal executive officer, principal financial officer, and principal accounting
officer, as well as to the members of the Board of Directors of Adient. The Ethics Policy is available at www.adient.com. Adient intends to disclose any
changes in, or waivers from, this Ethics Policy by posting such information on the same website or by filing a Current Report on Form 8-K, in each case to the
extent such disclosure is required by rules of the SEC or the NYSE.
Adient has an Insider Trading Policy governing the purchase, sale and/or other dispositions of its securities by Adient’s directors, officers, employees and
related persons that is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the exchange listing standards
applicable to Adient. A copy of the Insider Trading Policy, as amended to date, is filed as Exhibit 19.1 to this Annual Report on Form 10-K.
Item 11. Executive Compensation
The information required by this Item is set forth under the sections entitled “Corporate Governance,” “Board and Committee Information,” “Human Capital
and Compensation Committee Report,” “Compensation Discussion and Analysis,” “Director Compensation,” “Potential Payments upon Termination and
Change in Control,” and “Security Ownership of Certain Beneficial Owners and Management” in Adient's 2025 Proxy Statement to be filed with the SEC
within 120 days after September 30, 2024 and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information required by this Item is set forth under the section entitled “Securities Authorized for Issuance Under Equity Compensation Plans” and
“Security Ownership of Certain Beneficial Owners and Management” in Adient's 2025 Proxy Statement to be filed with the SEC within 120 days after
September 30, 2024 and is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item is set forth under the section entitled “Corporate Governance,” “Certain Relationships and Related Person Transactions”
and “Board and Committee Information” in Adient's 2025 Proxy Statement to be filed with the SEC within 120 days after September 30, 2024 and is
incorporated herein by reference.
Item 14. Principal Accounting Fees and Services
The information required by this Item is set forth under the section entitled "Audit Committee Report" in Adient's 2025 Proxy Statement to be filed with the
SEC within 120 days after September 30, 2024 and is incorporated herein by reference.
Adient plc | Form 10-K | 102

PART IV
Item 15.
Exhibits and Financial Statement Schedules
(a)
Documents filed as part of this report
(1)
All financial statements
Index to Consolidated Financial Statements
Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
53
Consolidated Statements of Income (Loss) for the years ended September 30, 2024, 2023 and 2022
56
Consolidated Statements of Comprehensive Income (Loss) for the years ended September 30, 2024, 2023 and 2022
57
Consolidated Statements of Financial Position as of September 30, 2024 and 2023
58
Consolidated Statements of Cash Flows for the years ended September 30, 2024, 2023 and 2022
59
Consolidated Statements of Shareholders' Equity for the years ended September 30, 2024, 2023 and 2022
61
Notes to Consolidated Financial Statements
62
Schedule II - Valuation and Qualifying Accounts for the years ended September 30, 2024, 2023 and 2022
103
(2)
Financial Statement Schedules
ADIENT AND SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
Year Ended
September 30,
(in millions)
2024
2023
2022
Accounts Receivable - Allowances
Balance at beginning of period
$
15 
$
21 
$
29 
Provision charged to costs and expenses
13 
9 
10 
Reserve adjustments
(5)
(15)
(16)
Currency translation
1 
— 
(2)
Balance at end of period
$
24 
$
15 
$
21 
Deferred Tax Assets - Valuation Allowance
Balance at beginning of period
$
1,655 
$
1,662 
$
1,637 
Allowance provision (benefit) for operating and other loss carryforwards
90 
(61)
94 
Allowance provision (benefit) adjustments
24 
54 
(69)
Balance at end of period
$
1,769 
$
1,655 
$
1,662 
All other financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to require
submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto included in this Form 10-
K.
Adient plc | Form 10-K | 103

(3)
Exhibits required by Item 601 of Regulation S-K
EXHIBIT INDEX
Exhibit No.
Exhibit Title
2.1
Separation and Distribution Agreement, dated as of September 8, 2016, by and between Johnson Controls International plc and Adient
Limited (incorporated by reference to Exhibit 2.1 to Amendment No. 4 to Adient plc’s Registration Statement on Form 10 filed September
20, 2016 (File No. 1-37757)).#
3.1
Memorandum of Association and Amended and Restated Articles of Association of Adient (incorporated by reference to Exhibit 3.1 to
Adient plc’s Current Report on Form 8-K filed November 1, 2016 (File No. 1-37757)).
4.1
Indenture, dated as of August 19, 2016, between Adient Global Holdings Ltd and U.S. Bank National Association (incorporated by
reference to Exhibit 4.1 to Amendment No. 4 to Adient plc’s Registration Statement on Form 10 filed September 20, 2016 (File No. 1-
37757)).
4.2
Guarantor Supplemental Indenture to the Dollar Notes Indenture, dated as of October 14, 2016, by and among Adient Global Holdings
Limited, U.S. Bank National Association, as Trustee, and certain subsidiaries of Adient Global Holdings Limited party thereto
(incorporated by reference to Exhibit 4.2 to Adient plc’s Current Report on Form 8-K filed November 1, 2016 (File No. 1-37757)).
4.3
Guarantor Supplemental Indenture to the Dollar Notes Indenture, dated as of October 31, 2016, by and among Adient plc, Adient Global
Holdings Limited, U.S. Bank National Association, as Trustee, and certain subsidiaries of Adient Global Holdings Limited party thereto
(incorporated by reference to Exhibit 4.4 to Adient plc’s Current Report on Form 8-K filed November 1, 2016 (File No. 1-37757)).
4.4
Guarantor Supplemental Indenture to the Dollar Notes Indenture, dated as of June 19, 2017, by and among Adient Global Holdings Ltd,
Adient Global Holdings S.à r.l., Adient Global Holdings Luxembourg S.à r.l., Adient Holding Ireland Limited and U.S. Bank National
Association, as Trustee (incorporated by reference to Exhibit 4.2 to Adient plc’s Quarterly Report on Form 10-Q filed May 7, 2018 (File
No. 1-37757)).
4.5
Fourth Supplemental Indenture to the Dollar Notes Indenture, dated as of January 29, 2018, by and among Adient Global Holdings Ltd,
Adient Ltd, Adient UK Global Financing Ltd and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.4 to
Adient plc’s Quarterly Report on Form 10-Q filed May 7, 2018 (File No. 1-37757)).
4.6
Guarantor Supplemental Indenture to the Dollar Notes Indenture, dated as of March 20, 2018, by and among Adient Global Holdings Ltd,
U.S. Bank National Association, as Trustee, and certain subsidiaries of Adient Global Holdings Ltd party thereto (incorporated by reference
to Exhibit 4.6 to Adient plc’s Quarterly Report on Form 10-Q filed May 7, 2018 (File No. 1-37757)).
4.7
Indenture, dated as of May 6, 2019, among Adient US LLC, the guarantors party thereto from time to time and U.S. Bank National
Association, as Trustee and Collateral Agent, relating to the $800.0 million aggregate principal amount of 7.00% senior first lien notes due
2026 (the “Indenture”) (incorporated by reference to Exhibit 4.1 to Adient plc’s Current Report on Form 8-K filed May 6, 2019 (File No. 1-
37757)).
4.8
Supplemental Indenture, dated as of May 6, 2019, among Adient Fabrics Spain, S.A.U., Michel Thierry Unit Components, S.L.U., Adient
Seating Holding Spain, S.L.U., Adient Seating Spain, S.L.U., Adient Automotive, S.L.U., Adient Real Estate Holding Spain, S.L.U. and
U.S. Bank National Association, relating to the Indenture (incorporated by reference to Exhibit 4.2 to Adient plc’s Current Report on Form
8-K filed May 6, 2019 (File No. 1-37757)).
4.9
Guarantor Supplemental Indenture to the Dollar Notes Indenture, dated as of October 3, 2019, by and among Adient Global Holdings Ltd,
the subsidiary of Adient Global Holdings Ltd party thereto, and U.S. Bank National Association, as Trustee (incorporated by reference to
Exhibit 4.16 to Adient plc’s Annual Report on Form 10-K filed November 22, 2019 (File No. 1-37757)).
Adient plc | Form 10-K | 104

4.10
Indenture, dated as of April 23, 2020, among Adient US LLC, the guarantors party thereto from time to time and U.S. Bank National
Association, as Trustee and Collateral Agent, relating to the $600.0 million aggregate principal amount of 9.000% senior first lien notes due
2025 (the “Indenture”) (incorporated by reference to Exhibit 4.1 to Adient plc’ Current Report on Form 8-K filed April 23, 2020 (File No.
1-37757)).
4.11
Description of securities (incorporated by reference to Exhibit 4.17 to Adient plc’s Annual Report on Form 10-K filed November 22, 2019
(File No. 1-37757)).
4.12
Third Supplemental Indenture, dated as of February 10, 2022, among Adient US LLC, the guarantors party thereto and U.S. Bank National
Association, as Trustee and Collateral Agent (incorporated by reference to Exhibit 4.1 to Adient plc’s Current Report on Form 8-K filed
February 10, 2022 (File No. 1-37757)).
4.13
Indenture, dated as of March 14, 2023, among Adient Global Holdings Ltd, the guarantors party thereto from time to time and U.S. Bank
Trust Company, National Association, as Trustee and Collateral Agent, relating to the $500.0 million aggregate principal amount of 7.000%
senior secured notes due 2028 (incorporated by reference to Exhibit 4.1 to Adient plc's Current Report on Form 8-K filed on March 14,
2023 (File No. 1-37757).
4.14
Supplemental Indenture, dated as of March 14, 2023, among Adient Seating Holding Spain, S.L.U., Adient Seating Spain, S.L.U., Adient
Automotive, S.L.U., Adient Real Estate Holding Spain, S.L.U. and U.S. Bank Trust Company, National Association, relating to the Secured
Indenture (incorporated by reference to Exhibit 4.2 to Adient plc's Current Report on Form 8-K filed on March 14, 2023 (File No. 1-
37757).
4.15
Indenture, dated as of March 14, 2023, among Adient Global Holdings Ltd, the guarantors party thereto from time to time and U.S. Bank
Trust Company, National Association, as Trustee and Collateral Agent, relating to the $500.0 million aggregate principal amount of 8.250%
senior unsecured notes due 2031 (incorporated by reference to Exhibit 4.3 to Adient plc's Current Report on Form 8-K filed on March 14,
2023 (File No. 1-37757).
4.16
Supplemental Indenture, dated as of March 14, 2023, among Adient Seating Holding Spain, S.L.U., Adient Seating Spain, S.L.U., Adient
Automotive, S.L.U., Adient Real Estate Holding Spain, S.L.U. and U.S. Bank Trust Company, National Association, relating to the
Unsecured Indenture (incorporated by reference to Exhibit 4.4 to Adient plc's Current Report on Form 8-K filed on March 14, 2023 (File
No. 1-37757).
10.1
Tax Matters Agreement, dated as of September 8, 2016, by and between Johnson Controls International plc and Adient Limited, as
amended October 31, 2016 (incorporated by reference to Exhibit 10.2 to Amendment No. 1 to Adient plc’s Annual Report on Form 10-K/A
filed June 29, 2017 (File No. 1-37757)).
10.2
Employee Matters Agreement, dated as of September 8, 2016, by and between Johnson Controls International plc and Adient Limited
(incorporated by reference to Exhibit 10.3 to Amendment No. 4 to Adient plc’s Registration Statement on Form 10 filed September 20,
2016 (File No. 1-37757)).
10.3
Form of Indemnification Agreement (Ireland) with individual directors and officers (incorporated by reference to Exhibit 10.5 to
Amendment No. 1 to Adient plc’s Annual Report on Form 10-K/A filed June 29, 2017 (File No. 1-37757)).*
10.4
Form of Indemnification Agreement (US) with individual directors and officers (incorporated by reference to Exhibit 10.6 to
Amendment No. 1 to Adient plc’s Annual Report on Form 10-K/A filed June 29, 2017 (File No. 1-37757)).*
10.5
Joint Venture Contract, dated October 22, 1997, between Shanghai Yanfeng Automotive Trim Company, Ltd. and Johnson Controls
International, Inc., as amended (incorporated by reference to Exhibit 10.7 of Adient plc’s Registration Statement on Form 10 filed April 27,
2016 (File No. 1-37757)).
Adient plc | Form 10-K | 105

10.6
Term Loan Credit Agreement, dated as of May 6, 2019, among Adient US LLC, Adient Global Holdings S.à r.l., the lenders party thereto
and Bank of America, N.A., as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.1 to Adient plc’s
Current Report on Form 8-K filed May 6, 2019 (File No. 1-37757)).
10.7
Amendment and Restatement Agreement to Amended and Restated Revolving Credit Agreement, dated as of November 2, 2022, among
Adient US LLC, the other borrower subsidiaries party thereto, the lenders party thereto, the issuing banks party thereto and JPMorgan
Chase Bank, N.A., as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on
Form 8-K filed November 4, 2022 (File No. 1-37757)).
10.8
Adient plc 2016 Omnibus Incentive Plan (incorporated by reference to Exhibit 4.1 to Adient plc’s Registration Statement on Form S-8 filed
October 28, 2016 (File No. 1-37757)).*
10.9
Form of Adient plc Restricted Shares or Restricted Share Unit Award Agreement (incorporated by reference to Exhibit 10.10 to Amendment
No. 1 to Adient plc’s Annual Report on Form 10-K/A filed June 29, 2017 (File No. 1-37757)).*
10.10
Form of Adient plc Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.11 to Amendment No. 1 to Adient
plc’s Annual Report on Form 10-K/A filed June 29, 2017 (File No. 1-37757)).*
10.11
Form of Adient plc Performance Unit Award agreement (incorporated by reference to Exhibit 10.1 to Adient  plc’s Current Report on
Form 8-K filed September 29, 2017 (File No. 1-37757)).*
10.12
Form of Adient plc Restricted Shares or Restricted Share Unit Award agreement (incorporated by reference to Exhibit 10.2 to Adient plc’s
Current Report on Form 8-K filed September 29, 2017 (File No. 1-37757)).*
10.13
Adient US LLC Retirement Restoration Plan, as amended and restated effective January 1, 2017 (incorporated by reference to Exhibit 10.1
to Adient plc’s Current Report on Form 8-K filed January 13, 2017 (File No. 1-37757)).*
10.14
Adient US LLC Executive Deferred Compensation Plan, as amended and restated March 12, 2018 (incorporated by reference to Exhibit
10.1 to the Company’s Quarterly Report on Form 10-Q filed May 7, 2018 (File No. 1-37757)).*
10.15
Adient plc Flexible Perquisites Program (incorporated by reference to Exhibit 10.3 to Adient plc’s Quarterly Report on Form 10-Q filed
August 7, 2019 (File No. 1-37757)).*
10.16
Written description of Adient US LLC severance benefit for certain executive officers (incorporated by reference to Exhibit 10.18 to Adient
plc’s Annual Report on Form 10-K filed November 22, 2019 (File No. 1-37757)).*
10.17
Adient plc Non-Employee Directors Compensation Summary and Ownership Guidelines, as amended and restated effective as of October
1, 2022 (incorporated by reference to Exhibit 10.17 to Adient plc’s Annual Report on Form 10-K filed November 17, 2023 (File No. 1-
37757)).*
10.18
Adient plc Executive Share Ownership Guidelines effective as of September 17, 2019 (incorporated by reference to Exhibit 10.20 to Adient
plc’s Annual Report on Form 10-K filed November 22, 2019 (File No. 1-37757)).*
10.19
Form of Key Executive Severance and Change of Control Agreement by and among Adient plc, Adient US LLC and the following
executive officers: Jerome J. Dorlack, James D. Conklin, Stephanie S. Marianos, Mark A. Oswald, and Heather M. Tiltmann (incorporated
by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed January 20, 2017 (File No. 1-37757)).*
Adient plc | Form 10-K | 106

10.20
Employment Contract, dated October 29, 2018, entered into between Adient Germany Ltd. & Co. KG and Michel Pierre Berthelin.
(incorporated by reference to Exhibit 10.2 to Adient plc’s Quarterly Report on Form 10-Q filed August 7, 2019 (File No. 1-37757)).*
10.21
Labour Contract, dated as of March 6, 2016, by and between Adient Management (China) Co., Ltd. and Jian James Huang (incorporated by
reference to Exhibit 10.29 to Adient plc’s Annual Report on Form 10-K filed November 22, 2019 (File No. 1-37757)).*
10.22
Master Agreement, dated as of January 31, 2020, by and among Adient plc, Yanfeng Automotive Trim Systems Company Ltd., Adient
Yanfeng Seating Mechanisms Co., Ltd., Yanfeng Adient Seating Co., Ltd. and Yanfeng Global Automotive Interior Systems Co., Ltd.
(incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on January 31, 2020).*
10.23
Amendment to the Joint Venture Contract of Yanfeng Adient Seating Co., Ltd. (effective upon the satisfaction of the relevant conditions set
forth in the Master Agreement filed as Exhibit 10.29 to this Form 10-K) (incorporated by reference to Exhibit 10.2. to Adient plc’s Current
Report on Form 8-K filed on January 31, 2020).*
10.24
Restricted Shares or Restricted Share Unit Award Agreement for grants made July 1, 2020 under the Adient plc Omnibus Incentive Plan
(incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on May 28, 2020).*
10.25
Amended and Restated Master Agreement, dated as of June 24, 2020, by and among Adient plc, Yanfeng Automotive Trim Systems
Company Ltd., Adient Yanfeng Seating Mechanisms Co., Ltd., Yanfeng Adient Seating Co., Ltd. and Yanfeng Global Automotive Interior
Systems Co., Ltd. (incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on June 24, 2020).*
10.26
Adient US LLC Retirement Restoration Plan, as amended and restated effective January 1, 2021 (incorporated by reference to Exhibit
10.33 to Adient plc’s Annual Report on Form 10-K filed November 30, 2020 (File No. 1-37757)).*
10.27
Master Agreement, dated as of March 12, 2021, by and among Adient plc, Adient Asia Holdings Co., Ltd., Qiyue (Shanghai) Trading Co.,
Ltd., Yanfeng Automotive Trim Systems Co., Ltd., Yanfeng Adient Seating Co., Ltd. and KEIPER Seating Mechanisms Co., Ltd.
(incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on March 12, 2021).#
10.28
Ancillary Master Agreement, dated as of March 12, 2021, by and among Adient plc, Adient Asia Holdings Co., Ltd., Yanfeng Adient
Seating Co., Ltd., Yanfeng Automotive Trim Systems Co., Ltd. and KEIPER Seating Mechanisms Co., Ltd. (incorporated by reference to
Exhibit 10.2 to Adient plc’s Current Report on Form 8-K filed on March 12, 2021).#
10.29
Equity Transfer Agreement, dated as of March 12, 2021, by and between Yanfeng Automotive Trim Systems Co., Ltd. and Adient Asia
Holdings Co., Ltd. (incorporated by reference to Exhibit 10.3 to Adient plc’s Current Report on Form 8-K filed on March 12, 2021.).#
10.30
Amendment No. 1 dated April 8, 2021 to the Term Loan Credit Agreement dated as of May 6, 2019, among the Borrowers, the lenders
party hereto, and the Agent (incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on April 9, 2021.).
10.31
Restricted Shares or Restricted Share Unit Award Agreement for certain salary reduction replacement grants made under the Adient plc
2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on June 30,
2021.).*
10.32
Form of Restricted Shares or Restricted Share Unit Award Agreement under the Adient plc 2021 Omnibus Incentive Plan (incorporated by
reference to Exhibit 10.2 to Adient plc’s Current Report on Form 8-K filed on March 10, 2021 (File No. 1-37757)).*
Adient plc | Form 10-K | 107

10.33
Adient plc 2021 Omnibus Incentive Plan (incorporated by reference to Annex A to Adient plc’s definitive proxy statement on Schedule 14A
filed on January 26, 2021 for the Adient plc 2021 annual general meeting of shareholders held March 9, 2021 (File No. 1-37757)).*
10.34
Form of Performance Unit Award Agreement under the Adient plc 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3
to Adient plc’s Current Report on Form 8-K filed on March 10, 2021 (File No. 1-37757)).*
10.35
Form of Adient plc Performance Unit Award Agreement under the Adient plc 2021 Omnibus Incentive Plan, as updated in March 2022
(incorporated by reference to Exhibit 10.1 to Adient plc’s Quarterly Report on Form 10-Q filed on May 5, 2022 (File No. 1-37757)).*
10.36
Form of Restricted Shares or Restricted Share Unit Award Agreement for the 2022 salary replacement awards for Douglas G. Del Grosso
and Jerome J. Dorlack made under the Adient plc 2021 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to Adient plc’s
Current Report on Form 8-K filed on September 23, 2022 (File No. 1-37757)).*
10.37
Amendment Agreement No. 1, dated March 13, 2023, to Amended and Restated Revolving Credit Agreement, dated as of November 2,
2022, among Adient US LLC, the other borrower subsidiaries party thereto, the lenders party thereto, the issuing banks party thereto and
JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to Adient plc’s
Quarterly Report on Form 10-Q filed May 3, 2023 (File No. 1-37757)).
10.38
Amendment Agreement No. 2, dated March 13, 2023, to Amended and Restated Revolving Credit Agreement, dated as of November 2,
2022, among Adient US LLC, the other borrower subsidiaries party thereto, the lenders party thereto, the issuing banks party thereto and
JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (incorporated by reference to Exhibit 10.2 to Adient plc’s
Quarterly Report on Form 10-Q filed May 3, 2023 (File No. 1-37757)).
10.39
Amendment Agreement, dated March 13, 2023, to Term Loan Credit Agreement, dated as of May 6, 2019, among Adient US LLC, Adient
Global Holdings S.à r.l., the lenders party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent (incorporated
by reference to Exhibit 10.3 to Adient plc’s Quarterly Report on Form 10-Q filed May 3, 2023 (File No. 1-37757)).
10.40
Amendment No. 2, dated April 24, 2023, to the Term Loan Credit Agreement dated as of May 6, 2019, among Adient US LLC, Adient
Global Holdings S.à r.l., the lenders party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent (incorporated
by reference to Exhibit 10.4 to Adient plc’s Quarterly Report on Form 10-Q filed May 3, 2023 (File No. 1-37757)).
10.41
Amendment No. 3 dated January 31, 2024 to the Term Loan Credit Agreement dated as of May 6, 2019, among Adient US LLC, Adient
Global Holdings S.à r.l., the lenders party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent (incorporated
by reference to Exhibit 10.1 to Adient plc’s Current Report on Form 8-K filed on February 1, 2024 (File No. 1-37757)).
10.42
Form of Restricted Shares or Restricted Share Unit Award Agreement for certain retention awards made under the Adient plc 2021
Omnibus Incentive Plan.*
19.1
Adient plc Insider Trading Policy.
21.1
List of Subsidiaries.
23.1
Consent of Independent Registered Public Accounting Firm.
31.1
Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Adient plc | Form 10-K | 108

31.2
Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
97.1
Adient plc Amended and Restated Executive Compensation Incentive Recoupment Policy.
101.INS
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded
within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).
#
Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Adient hereby undertakes to furnish copies of any
of the omitted schedules and exhibits upon request by the SEC.
*
Denotes management contract or compensatory plan or arrangement required to be filed as an exhibit hereto.
Item 16.
Form 10-K Summary
Not applicable.
Adient plc | Form 10-K | 109

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Adient plc
By:
/s/ Jerome J. Dorlack
Jerome J. Dorlack
President and Chief Executive Officer and a Director
Date:
November 18, 2024
By:
/s/ Mark A. Oswald
Mark A. Oswald
Executive Vice President and Chief Financial Officer
Date:
November 18, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below as of November 18, 2024, by the following persons on
behalf of the Registrant and in the capacities indicated:
/s/ Jerome J. Dorlack
/s/ Mark A. Oswald
Jerome J. Dorlack
Mark A. Oswald
President and Chief Executive Officer and a Director
Executive Vice President and Chief Financial Officer
(Principal Executive Officer)
(Principal Financial Officer)
/s/ Gregory S. Smith
/s/ Frederick A. Henderson
Gregory S. Smith
Frederick A. Henderson
Senior Vice President and Chief Accounting Officer
Non-Executive Chairman and Director
(Principal Accounting Officer)
/s/ Julie L. Bushman
/s/ Peter H. Carlin
Julie L. Bushman
Peter H. Carlin
Director
Director
/s/ Ricky T. Dillon
/s/ Jodi E. Eddy
Ricky T. Dillon
Jodi E. Eddy
Director
Director
/s/ Richard Goodman
/s/ José M. Gutiérrez
Richard Goodman
José M. Gutiérrez
Director
Director
/s/ Barb J. Samardzich
Barb J. Samardzich
Director
Adient plc | Form 10-K | 110

Exhibit 10.42
ADIENT PLC
RESTRICTED SHARES OR RESTRICTED SHARE UNIT AWARD AGREEMENT
Grant - Terms for Restricted Shares and Restricted Share Units
Participant Name:
###PARTICIPANT_NAME###
Grant Date:
###GRANT_DATE###
Number of Restricted Share Units:
###TOTAL_AWARDS###
Restriction Period:
1 Year from the Grant Date for 50% of the Restricted Share
Units
2 Years from the Grant Date for 50% of the Restricted Share
Units
Settlement of Units and Dividend Equivalents:
###CF_EE_GRANT_GRANT/ AWARD USER CODE 2###
Adient plc has adopted the 2021 Omnibus Incentive Plan to permit awards of restricted shares or restricted share units to be made to
certain key employees of the Company or any Affiliate. The Company desires to provide incentives and potential rewards for future
performance by the employee by providing the Participant with a means to acquire or to increase his or her proprietary interest in the
Company's success.
Definitions. Capitalized terms used in this Award Agreement have the following meanings:
(a) “Award” means this grant of Restricted Shares and/or Restricted Share Units.
(b) “Award Agreement” means this agreement setting forth the terms and conditions of the Award.
(c) “Award Notice” means an Award notification (if any) other than this Award Agreement delivered to the Participant in connection with
this Award.
(d) “Company” means Adient plc or any successor thereto.
(e) “Inimical Conduct” means any of the following as determined by the Administrator in its sole discretion: (i) any act or omission that is
inimical to the best interests of the Company or any Affiliate as determined by the Administrator, (ii) violation of any employment, non-
compete, confidentiality or other agreement in effect with the Company or any Affiliate, or the Company’s or an Affiliate’s code of
ethics, as then in effect, (iii) conduct rising to the level of gross negligence or willful misconduct in the course of employment with the
Company or an Affiliate, (iv) commission of an act of dishonesty or disloyalty involving the Company or an Affiliate, or taking any
action which damages or negatively reflects on the reputation of the Company or an Affiliate, (v) failure to comply with applicable laws
relating to trade secrets, confidential information or unfair competition or a violation of any other federal, state or local law in
connection with the Participant’s employment or service, or (vi) breach of any fiduciary duty to the Company or an Affiliate.
(f) “Participant” means the individual selected to receive this Award.
(g) “Plan” means the Adient plc 2021 Omnibus Incentive Plan, as may be amended from time to time.
(h) “Restriction Period” means the length of time indicated above or in any Award Notice during which the Participant cannot sell, transfer,
pledge, assign or otherwise encumber the Restricted Shares or Restricted Share Units granted under this Award.
(i)
“Restricted Shares” means Shares that are subject to a risk of forfeiture and the Restriction Period.
Adient – CONFIDENTIAL
A-1

(j)
“Restricted Share Unit” means the right to receive a payment, in cash or Shares, equal to the Fair Market Value of one Share, that is
subject to a risk of forfeiture and the Restriction Period.
(k)  “Share” means an ordinary share of the Company.
   Other capitalized terms used in this Award Agreement have the meanings given in the Plan.
The parties agree as follows:
1.
Grant of Award. The Company hereby grants to the Participant an award of Restricted Shares or Restricted Share Units, as
specified above or in any Award Notice, on the date and with respect to the number of Shares or Units specified above or in any Award
Notice. The Award is subject to the terms and conditions set forth herein and in the Plan, a copy of which has been delivered to the
Participant, and which is made a part of this Award.
2.
Restricted Shares. If the Award is in the form of Restricted Shares, the Shares are subject to the following terms:
a.
Restriction Period. The Company will hold the Shares in escrow or via an independent trust or nominee for the Restriction
Period. During this period, the Shares shall be subject to forfeiture as provided in Section 4.
b.
Removal of Restrictions. Subject to any applicable deferral election under the Adient US LLC Executive Deferred
Compensation Plan (or any successor plan) and to Section 4 below, Shares that have not been forfeited shall become
available to the Participant after the last day of the Restriction Period upon payment in full of all taxes due with respect to
such Shares.
c.
Voting Rights. During the Restriction Period, the Participant may exercise full voting rights with respect to the Shares.
d.
Dividends and Other Distributions. Any cash dividends or other distributions paid or delivered with respect to Restricted
Shares for which the record date occurs on or before the last day of the Restriction Period will be credited to a
bookkeeping account for the benefit of the Participant. To the extent such account is credited, it will be converted into and
settled in additional Shares issued under the Plan at the end of the applicable Restriction Period unless it is indicated
above or in any Award Notice that the account will be paid to the Participant in cash, in which case it will be paid in cash at
the end of the applicable Restriction Period. Prior to the end of the Restriction Period, any account credited pursuant to
this paragraph will be subject to the same terms and conditions (including risk of forfeiture) as the Restricted Shares to
which the dividends or other distributions relate.
3.
Restricted Share Units. If the Award is in the form of Restricted Share Units, the Restricted Share Units are subject to the
following terms:
a.
Restriction Period. During the Restriction Period, the Restricted Share Units shall be subject to forfeiture as provided in
Section 4.
b.
Settlement of Restricted Share Units. Subject to any applicable deferral election under the Adient US LLC Executive
Deferred Compensation Plan (or any successor plan thereto) and to Section 4 below, the Restricted Share Units shall be
settled by
Adient – CONFIDENTIAL
A-2

payment of one Share per Restricted Share Unit unless it is indicated above or in any Award Notice that the Restricted
Share Units will be settled through payment of cash, in which case the Restricted Share Units will be settled through
payment of cash equal to the Fair Market Value of one Share per Restricted Share Unit, in each case as soon as
practicable after the last day of the Restriction Period and upon payment in full of all taxes due with respect to such
Restricted Share Units. Notwithstanding the foregoing, if this Award provides that it will be settled in cash, but the
Company has satisfied all registration, qualification or other legal requirements necessary to permit the settlement of the
Restricted Share Units in Shares in the Participant’s jurisdiction without adverse legal, tax, financial or accounting
consequences to the Company or its Affiliates, then such Award will instead be settled in Shares and the Participant will
have no right to receive cash. Notwithstanding the foregoing, if the Participant is a specified employee within the meaning
of Code Section 409A and the Restriction Period lapses due to a termination of employment (other than for death), then
the vested Restricted Share Units will be settled as soon as practicable six months after the Participant’s termination to
the extent required to comply with Code Section 409A.
c.
Dividend Equivalent Units. Any cash dividends or other distributions paid or delivered with respect to the Shares for which
the record date occurs on or before the last day of the Restriction Period will result in a credit to a bookkeeping account
for the benefit of the Participant. Any such credit or dividend equivalent will be equal to the dividends or other distributions
that would have been paid with respect to the Shares subject to the Restricted Share Units had such Shares been
outstanding. To the extent a bookkeeping account is credited pursuant to this paragraph, it will be converted into and
settled in additional Shares issued under the Plan at the end of the applicable Restriction Period unless it is indicated
above or in any Award Notice that the account will be paid to the Participant in cash, in which case it will be paid in cash at
the end of the applicable Restriction Period. Prior to the end of the Restriction Period, any account credited pursuant to
this paragraph will be subject to the same terms and conditions (including risk of forfeiture) as the Restricted Share Units
to which the dividends or other distributions relate.
4.
Termination of Employment – Risk of Forfeiture.
a.
Involuntary Termination Other Than For Cause. If the Participant’s employment with the Company and its Affiliates
terminates due to the Company’s involuntary termination of the Participant’s employment other than for Cause before the
end of the Restriction Period, then the Participant’s Restricted Shares or Restricted Share Units that are then unvested
will continue to vest and otherwise be subject to the terms and conditions of this Award Agreement as if the Participant’s
employment had not terminated. If the Participant, after his or her involuntary termination, engages in Inimical Conduct,
then any Restricted Shares or Restricted Share Units that have not yet vested or been settled shall automatically be
forfeited and returned to the Company as of the date of the Administrator’s determination. The Participant shall provide
such information or documentation as the Administrator reasonably determines is necessary to confirm whether the
Participant has engaged in any prohibited activity as described in the preceding sentence.
Adient – CONFIDENTIAL
A-3

b.
Voluntary Termination. If the Participant’s employment with the Company and its Affiliates terminates due to a voluntary
resignation before the end of the Restriction Period, then all Restricted Shares and Restricted Share Units subject to this
Award shall automatically be forfeited and returned to the Company as of the date of such resignation.
c.
Death. If the Participant’s employment with the Company and its Affiliates terminates because of death at a time
when the Participant could not have been terminated for Cause, then, effective as of the date the Company
determines the Participant’s employment terminated due to death (provided such determination is made no more
than 75 days after the date of death), any remaining Restriction Period shall automatically lapse. The Company
shall have no liability to any person for any taxes, penalties or interest incurred by any person due to the Company
not receiving notice of the Participant’s death within 75 days.
d.
Disability. If the Participant becomes Disabled at a time when the Participant could not have been terminated for
Cause, then the Participant shall become vested in (and any remaining Restriction Period shall automatically lapse
with respect to) the Restricted Shares or Restricted Share Units subject to this Award as of the date of such
Disability.
e.
Other Termination. If the Participant’s employment terminates for any reason not described above, then any
Restricted Shares or any Restricted Share Units (and all deferred dividends paid or credited thereon) still subject to
the Restriction Period as of the date of such termination of employment shall automatically be forfeited and returned
to the Company. The Company may suspend payment or delivery of Shares (without liability for interest thereon)
pending the Administrator’s determination of whether the Participant’s employment was or should have been
terminated for Cause or whether the Participant has engaged in Inimical Conduct.
5.
Withholding. The Participant agrees to remit to the Company any foreign, U.S. federal, state and/or local taxes (including the
Participant’s FICA obligation) required by law to be withheld with respect to the issuance of Shares under this Award, the vesting of this
Award or the payment of cash under this Award. Unless the Company otherwise determines, the Company will satisfy any withholding
obligations in connection with this Award by withholding from cash or Shares otherwise payable or issuable under this Award in the
amount needed to satisfy any withholding obligations; provided that, in the case of Shares, the amount withheld may not exceed the total
maximum statutory tax rates associated with the transaction. Alternatively, the Company may require the Participant to pay to the
Company, in cash, promptly on demand, amounts sufficient to satisfy such tax obligations or make other arrangements satisfactory to the
Company regarding the payment to the Company of the aggregate amount of any such tax obligations, or the Company may withhold
from cash or other property, payable or issuable to the Participant or from Shares no longer subject to restrictions in the amount needed
to satisfy any withholding obligations.
6.
No Claim for Forfeiture. Neither the Award nor any benefit accruing to the Participant from the Award will be considered to be
part of the Participant’s normal or expected compensation or salary for any purposes, including, but not limited to, calculating any
severance, resignation,
Adient – CONFIDENTIAL
A-4

termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or
similar payments. In no event may the Award or any benefit accruing to the Participant from the Award be considered as compensation
for, or relating in any way to, past services for the Company or any Affiliate. In consideration of the Award, no claim or entitlement to
compensation or damages shall arise from forfeiture of the Award resulting from termination of the Participant’s employment by the
Company or any Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably
releases the Company and its Affiliates from any such claim that may arise. If, notwithstanding the foregoing, any such claim is found by a
court of competent jurisdiction to have arisen, then, by accepting the grant, the Participant shall have been deemed irrevocably to have
waived any entitlement to pursue such claim.
7.
Electronic Delivery. The Company or its Affiliates may, in its or their sole discretion, decide to deliver any documents related to
current or future participation in the Plan or related to this Award by electronic means. The Participant hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained
by the Company or a third party designated by the Company. The Participant hereby agrees that all on-line acknowledgements shall have
the same force and effect as a written signature.
8.
Securities Compliance. The Company may place a legend or legends upon the certificates for Shares issued under the Plan and
may issue “stop transfer” instructions to its transfer agent in respect of such Shares as it determines to be necessary or appropriate to (a)
prevent a violation of, or to obtain an exemption from, the registration requirements of the Securities Act of 1933, as amended, applicable
state securities laws or other legal requirements, or (b) implement the provisions of the Plan, this Award Agreement or any other
agreement between the Company and the Participant with respect to such Shares.
9.
Successors. All obligations of the Company under this Award shall be binding on any successor to the Company. The terms of
this Award and the Plan shall be binding upon and inure to the benefit of the Participant, and his or her heirs, executors, administrators or
legal representatives.
10.
Legal Compliance. The granting of this Award and the issuance of Shares under this Award shall be subject to all applicable
laws, rules, and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required.
11.
Governing Law; Arbitration. This Award and the rights and obligations hereunder shall be governed by and construed in
accordance with, except to the extent preempted by other applicable laws (a) with respect to the corporate law requirements applicable to
the Company, the validity and authorization of the issuance of Shares under the Plan and similar matters, the internal laws of Ireland
(without reference to conflict of law principles thereof) and (b) with respect to all other matters relating to the Plan and Awards, the internal
laws of the State of New York (without reference to conflict of law principles thereof). Arbitration will be conducted, to the extent
applicable, per the provisions in the Plan.
12.
Data Privacy and Sharing. As a condition of the granting of the Award, the Participant acknowledges and agrees that it is
necessary for some of the Participant’s personal identifiable information to be provided to certain employees of the Company, the third
party data processor that administers the Plan and the Company’s designated third party broker in the United States. These transfers will
be made pursuant to a contract that requires the processor to provide adequate levels of protection for data privacy and security interests
in accordance with the General Data Protection
Adient – CONFIDENTIAL
A-5

Regulation (EU 2016/679) and the implementing legislation of the Participant’s home country. By accepting the Award, the Participant
acknowledges having been informed of the processing of the Participant’s personal identifiable information described in the preceding
paragraph and consents to the Company collecting and transferring to the Company's Total Rewards Department or Shareholder
Services Department, and its independent benefit plan administrator and third party broker, the Participant’s personal data that are
necessary to administer the Award and the Plan. The Participant understands that his or her personal information may be transferred,
processed and stored outside of the Participant’s home country in a country that may not have the same data protection laws as his or
her home country, for the purposes mentioned in this Award Agreement.
This Award, including any Award Notice delivered to the Participant and any other documents expressly referenced in this Award
Agreement, contain all of the provisions applicable to the Award and no other statements, documents or practices may modify, waive or
alter such provisions unless expressly set forth in writing, signed by an authorized officer of the Company and delivered to the Participant.
The Company has caused this Award Agreement to be executed by one of its authorized officers as of the date of grant.
ADIENT PLC
[Placeholder for signature]
Heather M. Tiltmann
Executive Vice President, Chief Legal and Human Resources Officer and Corporate Secretary
Adient – CONFIDENTIAL
A-6

Exhibit 19.1
ADIENT PLC
INSIDER TRADING POLICY
U.S. Federal securities laws, and other countries’ securities laws, prohibit the use of material nonpublic information in connection
with securities Transactions (defined below). Individuals violating these restrictions may be subject to serious criminal and civil
liabilities and sanctions, including civil penalties of up to three times the illegal profit gained or loss avoided on the securities
Transaction. The violation may also subject Adient plc (“Adient”) to criminal and civil penalties, and would severely damage
Adient’s reputation and business relationships.
Accordingly, Adient has adopted this Insider Trading Policy in an effort to apply uniform conduct guidelines to all Directors, Section
16 Officers (defined below), employees, and Related Persons (defined below) of Adient and its subsidiaries globally. Adient may
also determine that other persons should be subject to this policy, such as contractors or consultants who have access to material
nonpublic information. Any violation of this policy may result in Adient imposing serious sanctions, including dismissal for cause,
of the persons involved.
1.    Objectives. The objectives of this Insider Trading Policy are to: (1) promote compliance with applicable securities laws and
avoid even the appearance of improper conduct relative to such laws; (2) preserve the reputation and integrity of Adient and its
Directors, Section 16 Officers, employees and Related Persons; and (3) describe the general standards and procedures for engaging
in Transactions involving Adient Securities (defined below) and the securities of other publicly traded companies. This policy and
Adient’s authorized employees may provide advice and guidance relative to insider trading compliance; however, ultimate
responsibility for compliance resides with the individual.
2.    Scope. This policy applies to all Directors, Section 16 Officers, employees, and Related Persons (collectively referred to herein
as “You”).
3.    Policy.
a.    Prohibition Against Trading on Material Nonpublic Information. You may not trade in Adient Securities at any time if
you are aware of any material nonpublic information relating to Adient (definitions of “material” and “nonpublic” are included
below). This prohibition also applies to any material nonpublic information you become aware of in the course of your employment
or service with Adient relating to any other company, including Adient’s suppliers and customers.
b.    Prohibition Against Tipping. You may not disclose material nonpublic information to persons within Adient whose jobs
do not require them to have that information, or outside of Adient to other persons, including, but not limited to, family, friends,
business associates, investors and expert consulting firms, unless any such disclosure is made in
Insider Trading Policy
Page 1 of 6

accordance with Adient’s policies regarding the protection or authorized external disclosure of information regarding Adient. This
disclosure may be viewed as “tipping,” resulting in liability under the Federal securities laws for both the person who provides the
information, and the person who receives the information. This prohibition also applies to any material nonpublic information you
become aware of in the course of your employment or service with Adient relating to any other company, including Adient’s
suppliers and customers.
4.    Penalties for Violations.
a.    Individual Penalties. The federal securities laws impose severe penalties on persons who trade while aware of material
nonpublic information or who improperly disclose such information to a third party. Individuals trading on (or tipping) material
nonpublic information may be liable for criminal fines of up to $5 million, 20 years imprisonment and civil penalties of up to three
times the profit gained or loss avoided.
b.        Control Person Penalties. Penalties may also be imposed against so-called “controlling persons” who fail to take
appropriate steps to prevent and detect insider trading violations (including tipping) by their employees or subordinates. The SEC
may impose upon control persons a civil penalty of up to the greater of $1 million or three times the amount of profit gained or loss
avoided as a result of the employee’s violation. In addition, incorporated violators may be fined up to $25 million if found guilty of a
criminal insider trading violation. It is possible that your status as a Director, Section 16 Officer and/or employee would implicate
you as a controlling person subject to personal liability for the insider trading violations of Adient’s employees.
5.    Definitions.
a.    Adient Securities. Includes ordinary and preferred shares, derivative securities (e.g., share options), and debt securities
(e.g., bonds and notes) of Adient plc.
b.    Material Information. It is difficult to describe exhaustively what constitutes “material” information, but you should
assume that any information, positive or negative, that might affect the price of Adient Securities or otherwise might be of
significance to an investor in determining whether to purchase, sell or hold Adient Securities would be “material.” Some examples of
information that would typically be considered material include:
    earnings information, including annual, quarterly or monthly financial results and guidance or projections relating
to future earnings performance;
    mergers, tender offers, joint ventures or material acquisitions or dispositions of assets;
    new products or services, or developments regarding customers or suppliers (e.g., the acquisition or loss of an
important contract);
    changes in control of Adient or in its senior management;
    a change in auditors or an auditor notification that Adient may no longer rely on an auditor’s audit report;
Insider Trading Policy
Page 2 of 6

    events regarding Adient Securities (e.g., defaults on senior securities, calls of securities for redemption, repurchase
plans, share splits, changes in dividend policy, changes to the rights of security holders, financing transactions or public or private
offerings of securities);
    pending significant litigation or a change in the status of such litigation; and
    bankruptcies or receiverships involving Adient or parties with whom Adient has a material relationship.
This list is not intended to be all-inclusive. Questions concerning the materiality of particular information should be directed
to Shareholder Services prior to your trading in Adient Securities or the securities of another publicly traded company, such as a
customer or supplier of Adient.
c.        Nonpublic information. Nonpublic information is generally not known or available to the public. To be “public”,
information must have been disseminated in a manner designed to reach investors generally, and the investors must be given the
opportunity to absorb the information. Adient generally considers information to be public after one full trading day has elapsed
following Adient's release of such information to the general public.
d.    Related Persons. For purposes of the policy, a related person includes the following:
    your spouse, minor children and relatives who share your home, and certain entities affiliated with you (e.g., trusts,
partnerships, estates, and corporations).
    any family members who do not live in your household, but whose transactions in securities are directed by you or
are subject to your influence or control.
    any person to whom you have disclosed material, nonpublic information.
    any person acting on your behalf or on behalf of any individual listed above.
e.    Section 16 Officer. For purposes of the policy, a Section 16 Officer is an individual designated by Adient’s Board of
Directors as an “officer” of Adient for purposes of Section 16 of the Securities Exchange Act of 1934, as amended.
f.    Trades or Transactions. Includes sales, dispositions, purchases, acquisitions, share option exercises, standing orders ,
gifts, pledges, transfers and certain employee benefit plan Transactions as discussed below. This list is not all-inclusive; questions
regarding whether an activity is considered a Transaction should be directed to Shareholder Services prior to consummation.
6.    Applicability of Policy to Transactions under Adient Benefit Plans.
 You may be liable for Trades made pursuant to standing orders (e.g., market and/or limit orders) if such Trade is made while you are in possession of material
nonpublic information. Accordingly, you are strongly discouraged from entering into a standing order if there is a reasonable chance that the order may be
executed while you are in possession of material nonpublic information.
1
1
Insider Trading Policy
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The following are applications of this policy under Adient benefit plans:
a.    401(k) Plan. The policy trading prohibition does not apply to purchases or acquisitions of Adient share units in your
401(k) plan account resulting from periodic contributions of money pursuant to an existing payroll deduction. However, the trading
prohibition does apply to an election to:
    begin or terminate investing in the Adient share fund of the 401(k) plan;
    increase or decrease the percentage of your periodic contributions that will be allocated to the Adient share fund of
the 401(k) plan;
    make an intra-plan transfer of an existing account balance into or out of the Adient share fund;
    borrow money against your 401(k) plan balance if the loan will result in a liquidation of some or all of your Adient
share fund balance; and
    pre-pay a plan loan if the pre-payment will result in the allocation of loan proceeds to the Adient share fund.
b.    Deferred Compensation Plan. The policy trading prohibition does not apply to acquisitions of Adient share units in your
deferred compensation account resulting from periodic deferrals of compensation pursuant to the deferral methods allowed under the
deferred compensation plan and your advance deferral election. However, the trading prohibition does apply to an election to:
    begin or terminate investing in the Adient share fund of the deferred compensation plan;
    increase or decrease the percentage of your periodic contributions that will be allocated to the Adient share fund of
the deferred compensation plan; and
    make an intra-plan transfer of an existing account balance into or out of the Adient share fund.
c.    Direct Share Purchase Plan. The policy trading prohibition does not apply to acquisitions of Adient shares under the
Bank Sponsored Direct Purchase Plan administered by Wells Fargo N.A. resulting from your reinvestment of dividends paid on
Adient shares. The policy trading prohibition does apply to an election to:
    sell Adient shares acquired via the plan;
    begin or terminate participation in the plan;
    increase or decrease your level of participation in the plan; and
    make additional contributions to the plan which result in a voluntary purchase of Adient shares.
d.    Performance Share Awards and Restricted Share Awards. The policy trading prohibition does not apply to the awarding
or vesting of performance share or restricted share awards and related dividend equivalents, or the withholding of Adient shares to
cover the employee’s minimum tax liability upon vesting. However, the policy trading prohibition does apply to Transactions
involving the underlying Adient shares after vesting (e.g., the sale or transfer of Adient shares).
Insider Trading Policy
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e.    Share Appreciation Rights and Share Options. The policy trading prohibition does not apply to the granting or vesting
of share appreciation rights and share options. However, the policy trading prohibition does apply to all exercises of share
appreciation rights and share options, except as set forth in the Blackout Guidelines and pursuant to approved Rule 10b5-1 Trading
Plans (as discussed in Section 14 below).
7.    Pre-Clearance Guidelines. Directors and Section 16 Officers must contact Shareholder Services prior to engaging in or making
any commitment to engage in a Transaction in Adient Securities. These individuals will receive additional information from
Shareholder Services regarding the Pre-Clearance Guidelines.
8.    Blackout Guidelines. Directors, Section 16 Officers, certain employees and Related Persons are subject to periodic prohibitions
on the trading of Adient Securities under Adient’s Blackout Guidelines. These individuals will receive written notice from
Shareholder Services if they are subject to the Blackout Guidelines.
9.    Restrictions on Certain Types of Transactions. Trading on an exchange in puts, calls or any other derivative securities relating
to Adient Securities, and engaging in hedging or monetization transactions relating to Adient Securities, or short sales of Adient
Securities, is prohibited at all times. Investments in mutual fund(s) or exchange traded fund(s) that invest in a broad index or sector
(“ETF”) that also invest in Adient Securities, are not prohibited, although the purchase, sale or hedging of mutual fund or ETF
shares based on material nonpublic information about Adient would violate this policy and implicate the securities laws.
10.    Discretionary Brokerage Accounts. If there is a reasonable chance that a trade involving Adient Securities may be executed
at a time when you are in possession of material nonpublic information, we strongly discourage you from holding Adient Securities
in a discretionary brokerage account. A discretionary brokerage account, also known as a controlled account, is an investment
account whereby the broker has complete authority to act on your behalf in buying and selling securities without your prior approval
or knowledge of the type and price of the security.
11.    Margin Accounts and Pledges. You are prohibited from holding Adient Securities in a margin account, or pledging Adient
Securities as collateral for a loan. Securities held in a margin account or pledged as collateral for a loan may be sold without your
consent by the broker if you fail to meet a margin call or by the lender in a foreclosure if you default on a loan. The margin or
foreclosure sale may occur when you are aware of material nonpublic information or otherwise are not permitted to trade in Adient
Securities.
12.    Confidentiality. You should not discuss internal Adient matters or developments with anyone outside of Adient, except as
required in your performance of regular employment duties. Please refer to Adient Communication Policy and Adient Ethics Policy
for further guidance on Adient’s policies concerning confidential information.
Insider Trading Policy
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13.        Post-Termination Transactions. The prohibitions in this policy apply to Transactions in Adient Securities even after
termination of service to or employment with Adient. If an individual is in possession of material nonpublic information when his or
her service or employment terminates, that individual may not trade in Adient Securities until that information has become public or
is no longer material.
14.    Rule 10b5-1 Trading Plans. Certain individuals as determined by the General Counsel are permitted to enter Rule 10b5-1
trading plans that are approved by Adient in advance and meet certain guidelines. For additional information regarding Rule 10b5-1
trading plans contact Shareholder Services.
15.       Adient Assistance. If you have any doubts as to your responsibilities under this policy, you should seek guidance and
clarification from Shareholder Services. Please do not try to resolve uncertainties on your own.
16.    Interpretation Authority. The General Counsel shall have the authority to interpret this policy and all related policies and
procedures and such other authority and responsibility as described in this policy or in related policies and procedures. The
Shareholder Services department has authority to manage this policy and all related policies and procedures.
Effective: June 5, 2018
Insider Trading Policy
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Exhibit 21.1
Subsidiaries of Adient plc*
Name of Entity
Jurisdiction of Formation
Economic Interest
(if not 100%)
Adient & Summit Corporation Ltd.
Thailand
68.0%
Adient (Thailand) Co., Ltd.
Thailand
68.0%
Adient Asia Holdings Co., Limited
Hong Kong
Adient Automotive Argentina S.R.L.
Argentina
Adient Automotive Interior Investment Co., Limited
Hong Kong
Adient Automotive Romania S.R.L.
Romania
Adient Automotive Seating (M) Sdn. Bhd.
Malaysia
87.0%
Adient Belgium BV
Belgium
Adient Beteiligungs GmbH
Germany
Adient Czech Republic s.r.o.
Czech Republic
Adient Clanton Inc.
US
Adient Components Ltd. & Co. KG
Germany
Adient do Brasil Bancos Automotivos Ltda.
Brazil
Adient DongSung Inc
Korea
60.0%
Adient Eldon Inc.
US
Adient Financial Luxembourg S.a r.l.
Luxembourg
Adient France SAS
France
Adient Germany Ltd. & Co. KG.
Germany
Adient GK
Japan
Adient Global Holdings Ltd
Jersey
Adient Global Holdings S.à r.l.
Luxembourg
Adient Hungary Kft.
Hungary
Adient India Private Limited
India
Adient Interiors Ltd. & Co. KG
Germany
Adient Korea Inc
Korea
Adient Ltd. & Co. KG
Germany
Adient Luxembourg Asia Holding S.a.r.l.
Luxembourg
Adient Mexico Automotriz S. de R.L. de C.V.
Mexico
Adient Mezölak Korlátolt Felelősségű Társaság
Hungary
Adient Novo mesto, proizvodnja avtomobilskih sedežev, d.o.o.
Slovenia
Adient Poland Sp. z o.o.
Poland
Adient Properties UK Ltd
UK
Adient Saarlouis Ltd. & Co. KG
Germany
Adient Seating d.o.o.
Serbia
Adient Seating Poland Spółka z ograniczona odpowiedzialnoscia
Poland
Adient Seating Spain S.L.
Spain
Adient SRL
Romania
Adient Seating UK Ltd
UK
Adient South Africa (Pty) Ltd.
South Africa
Adient Strasbourg
France
Adient Sweden AB
Sweden

Subsidiaries of Adient plc (continued)*
Name of Entity
Jurisdiction of Formation
Economic Interest
(if not 100%)
Adient (Taizhou) Automotive Components Co., Ltd.
China
Adient UK Financing Ltd
UK
Adient US LLC
US
Adient Verwaltungs GmbH & Co. KG
Germany
Avanzar Interior Technologies, Ltd.
US
49.0%
Beijing Adient Automotive Components Co., Ltd.
China
51.0%
Bridgewater Interiors, LLC
US
49.0%
Adient (Chongqing) Automotive Components Co., Ltd.
China
Adient Yufu (Chongqing) Automotive Components Co., Ltd.
China
Adient (Chengdu) Automotive Components Co., Ltd.
China
Adient (Daqing) Automotive Components Co., Ltd.
China
Ensamble de Interiores Automotrices Mexico, S. de R.L. de C.V.
Mexico
Guangzhou Adient Automotive Seating Co. Ltd.
China
52.0%
PT Adient Automotive Indonesia
Indonesia
TechnoTrim de Mexico, S. de R.L. de C.V.
Mexico
51.0%
TechnoTrim, Inc.
US
51.0%
*Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other subsidiaries of Adient plc are omitted because, considered in the aggregate, they would
not constitute a significant subsidiary as of the end of the year covered by this report.

Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-237106, 333-214320 and 333-254026) of Adient plc
of our report dated November 18, 2024 relating to the financial statements and financial statement schedule and the effectiveness of internal control over
financial reporting, which appears in this Form 10-K.
/s/ PricewaterhouseCoopers LLP
Detroit, Michigan
November 18, 2024

Exhibit 31.1
Certification
I, Jerome J. Dorlack, certify that:
1
I have reviewed this annual report on Form 10-K of Adient plc;
2
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4
The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the Registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent
fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the Registrant’s internal control over financial reporting; and
5
The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control
over financial reporting.
Date:
November 18, 2024
By:
/s/ Jerome J. Dorlack
Jerome J. Dorlack
President and Chief Executive Officer and a Director

Exhibit 31.2
Certification
I, Mark A. Oswald, certify that:
1
I have reviewed this annual report on Form 10-K of Adient plc;
2
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4
The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the Registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent
fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the Registrant’s internal control over financial reporting; and
5
The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control
over financial reporting.
Date:
November 18, 2024
By:
/s/ Mark A. Oswald
Mark A. Oswald
Executive Vice President and Chief Financial Officer

Exhibit 32.1
CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Jerome J. Dorlack, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that the Annual Report of Adient plc on Form 10-K for the fiscal year ended September 30, 2024 fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934 and that information contained in such Form 10-K fairly presents, in all material respects, the financial condition and
results of operations of Adient plc.
Date:
November 18, 2024
By:
/s/ Jerome J. Dorlack
Jerome J. Dorlack
President and Chief Executive Officer and a Director
I, Mark A. Oswald, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that the Annual Report of Adient plc on Form 10-K for the fiscal year ended September 30, 2024 fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934 and that information contained in such Form 10-K fairly presents, in all material respects, the financial condition and
results of operations of Adient plc.
Date:
November 18, 2024
By:
/s/ Mark A. Oswald
Mark A. Oswald
Executive Vice President and Chief Financial Officer
A signed original of this written statement required by Section 906 has been provided to Adient plc and will be retained by Adient plc and furnished to the
Securities and Exchange Commission or its staff upon request.

        Exhibit 97.1
ADIENT PLC
AMENDED AND RESTATED EXECUTIVE INCENTIVE
COMPENSATION RECOUPMENT POLICY
1.    Purpose. The purpose of this Amended and Restated Executive Incentive Compensation Recoupment Policy (this “Policy”) is to
describe the circumstances under which Adient plc (the “Company”) has the right, or is required, to recover, reduce or cancel
certain compensation paid or awarded to, or earned by, certain employees. Any references in compensation plans,
agreements, equity awards or other policies to the Company’s “recoupment”, “clawback” or similarly-named policy shall be
deemed to refer to this Policy with respect to (a) Incentive-Based Compensation Received after the Effective Date and (b)
any other compensation paid, awarded or earned after the Amendment Effective Date. With respect to (x) Incentive-Based
Compensation Received prior to the Effective Date, such references to the Company’s “recoupment”, “clawback” or
similarly-named policy in compensation plans, agreements, equity awards or other policies shall be deemed to refer to the
Company’s “recoupment,” “clawback” or similarly-named policy in effect prior to the Effective Date and (y) other
compensation paid, awarded or earned prior to the Amendment Effective Date, such references to the Company’s
“recoupment”, “clawback” or similarly-named policy in compensation plans, agreements, equity awards or other policies
shall be deemed to refer to the Company’s “recoupment,” “clawback” or similarly-named policy in effect prior to the
Amendment Effective Date.
2.    Mandatory Recovery of Compensation. In the event that the Company is required to prepare an Accounting Restatement, the
Company shall recover reasonably promptly the amount of Erroneously Awarded Compensation.
3.    Discretionary Recovery of Compensation. If any of the following has occurred with respect to a current or former Covered
Officer, then the Administrator may instruct the Company, and the Company shall be entitled (to the extent permitted by
applicable law), to recover, reduce or cancel all or a portion of any equity- or cash-based award or any other past or future
compensation (other than base salary) paid or awarded to, or earned by, such current or former Covered Officer on or after
the Amendment Effective Date:
(a)    The Covered Officer has committed a material breach of any agreement between the Covered Officer and the Company
or materially violated any Company policy, the Company has notified the Covered Officer of such breach or
violation, as applicable, and the Covered Officer has not cured such breach or violation within 15 days after such
notification;
(b)    The Covered Officer has been convicted of, or entered a guilty plea or plea of no contest with respect to, a felony, the
equivalent thereof, or of a lesser crime having as its predicate element fraud, dishonesty or misappropriation of
property, whether or not property of the Company (if, in the case of a crime having as its

predicate element fraud or dishonesty, such fraud or dishonesty related to actions of the Covered Officer associated
with or related to the Company or its affiliates);
(c)    The Covered Officer has engaged in willful misconduct, willful dishonesty, or illegal conduct that the Administrator
reasonably determines has caused or could cause material financial or reputational harm to the Company or its
affiliates; or
(d)    The Covered Officer has willfully and materially failed to comply with any valid and legal directive of the Company.
4.    Definitions. For purposes of this Policy, the following terms, when capitalized, shall have the meanings set forth below:
(a)    “Accounting Restatement” shall mean any accounting restatement required due to material noncompliance of the
Company with any financial reporting requirement under the securities laws, including to correct an error in
previously issued financial statements that is material to the previously issued financial statements, or that would
result in a material misstatement if the error were corrected in the current period or left uncorrected in the current
period.
(b)    “Amendment Effective Date” shall mean September 13, 2024.
(c)    “Covered Officer” shall mean the Company’s president; principal financial officer; principal accounting officer (or if
there is no such accounting officer, the controller); any vice-president of the Company in charge of a principal
business unit, division, or function (such as sales, administration, or finance); any other officer who performs a
significant policy-making function; or any other person who performs similar significant policy-making functions for
the Company.
(d)    “Effective Date” shall mean October 2, 2023.
(e)    “Erroneously Awarded Compensation” shall mean the excess of (i) the amount of Incentive-Based Compensation
Received by a person (A) after beginning service as a Covered Officer, (B) who served as a Covered Officer at any
time during the performance period for that Incentive-Based Compensation, (C) while the Company has a class of
securities listed on a national securities exchange or a national securities association and (D) during the Recovery
Period; over (ii) the Recalculated Compensation.
(f)    “Incentive-Based Compensation” shall mean any compensation that is granted, earned, or vested based wholly or in part
upon the attainment of a financial reporting measure. A financial reporting measure is a measure that is determined
and presented in accordance with the accounting principles used in preparing the Company’s financial statements, and
any measures that are derived wholly or in part from such measures, regardless of whether such measure is presented
within the financial statements or included in a filing with the Securities Exchange
2

Commission. Each of stock price and total shareholder return is a financial reporting measure. For the avoidance of
doubt, incentive-based compensation subject to this Policy does not include stock options, restricted stock, restricted
stock units or similar equity-based awards for which the grant is not contingent upon achieving any financial
reporting measure performance goal and vesting is contingent solely upon completion of a specified employment
period and/or attaining one or more non-financial reporting measures.
(g)    “Recalculated Compensation” shall mean the amount of Incentive-Based Compensation that otherwise would have
been Received had it been determined based on the restated amounts in the Accounting Restatement, computed
without regard to any taxes paid. For Incentive-Based Compensation based on stock price or total shareholder return,
where the amount of the Erroneously Awarded Compensation is not subject to mathematical recalculation directly
from the information in an Accounting Restatement, the amount of the Recalculated Compensation must be based on
a reasonable estimate of the effect of the Accounting Restatement on the stock price or total shareholder return, as the
case may be, on the compensation Received. The Company must maintain documentation of the determination of that
reasonable estimate and provide such documentation to the national securities exchange or association on which its
securities are listed.
(h)    Incentive-Based Compensation is deemed “Received” in the Company’s fiscal period during which the financial
reporting measure specified in the award of such Incentive-Based Compensation is attained, even if the payment or
grant of the Incentive-Based Compensation occurs after the end of that period.
(i)    “Recovery Period” shall mean the three completed fiscal years of the Company immediately preceding the date the
Company is required to prepare an Accounting Restatement; provided that the Recovery Period shall not begin before
the Effective Date. For purposes of determining the Recovery Period, the Company is considered to be “required to
prepare an Accounting Restatement” on the earlier to occur of: (i) the date the Company’s Board of Directors (the
“Board”), a committee thereof, or the Company’s authorized officers conclude, or reasonably should have concluded,
that the Company is required to prepare an Accounting Restatement, or (ii) the date a court, regulator, or other legally
authorized body directs the Company to prepare an Accounting Restatement. If the Company changes its fiscal year,
then the transition period within or immediately following such three completed fiscal years also shall be included in
the Recovery Period, provided that if the transition period between the last day of the Company’s prior fiscal year end
and the first day of its new fiscal year comprises a period of nine to 12 months, then such transition period shall
instead be deemed one of the three completed fiscal years and shall not extend the length of the Recovery Period.
3

5.    Exceptions. Notwithstanding anything to the contrary in this Policy, recovery of Erroneously Awarded Compensation will not be
required to the extent the Company’s committee of independent directors responsible for executive compensation decisions
(or a majority of the independent directors on the Board in the absence of such a committee) has made a determination that
such recovery would be impracticable and one of the following conditions have been satisfied:
(a)    The direct expense paid to a third party to assist in enforcing this Policy would exceed the amount to be recovered;
provided that, before concluding that it would be impracticable to recover any amount of Erroneously Awarded
Compensation that was Incentive-Based Compensation based on the expense of enforcement, the Company must
make a reasonable attempt to recover such Erroneously Awarded Compensation, document such reasonable attempt(s)
to recover, and provide that documentation to the national securities exchange or association on which its securities
are listed.
(b)    Recovery would violate home country law where, with respect to Incentive-Based Compensation, that law was adopted
prior to November 28, 2022; provided that, before concluding that it would be impracticable to recover any amount of
Erroneously Awarded Compensation that was Incentive-Based Compensation based on violation of home country
law, the Company must obtain an opinion of home country counsel, acceptable to the national securities exchange or
association on which its securities are listed, that recovery would result in such a violation, and must provide such
opinion to the exchange or association.
(c)    Recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to
employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and
regulations thereunder.
6.    Manner of Recovery. In addition to any other actions permitted by law or contract, the Company may take any or all of the
following actions to recover any Erroneously Awarded Compensation or any compensation subject to recovery under Section
3: (a) require the Covered Officer to repay such amount; (b) offset such amount from any other compensation owed by the
Company or any of its affiliates to the Covered Officer, regardless of whether the contract or other documentation governing
such other compensation specifically permits or specifically prohibits such offsets; and (c) subject to Section 5(c), to the
extent the Erroneously Awarded Compensation or other compensation subject to recovery was deferred into a plan of
deferred compensation, whether or not qualified, forfeit such amount (as well as the earnings on such amounts) from the
Covered Officer’s balance in such plan, regardless of whether the plan specifically permits or specifically prohibits such
forfeiture. If the Erroneously Awarded Compensation or other compensation subject to recovery consists of shares of the
Company’s common stock, and the Covered Officer still owns such shares, then the
4

Company may satisfy its recovery obligations or rights by requiring the Covered Officer to transfer such shares back to the
Company.
7.    Other.
(a)    This Policy shall be administered and interpreted, and may be amended from time to time, by the Board or any
committee to which the Board may delegate its authority in its sole discretion in compliance with the applicable
listing standards of the national securities exchange or association on which the Company’s securities are listed (the
Board or such committee, the “Administrator”), and the determinations of the Administrator shall be binding on all
Covered Officers.
(b)    The Company shall not indemnify any Covered Officer against the loss of Erroneously Awarded Compensation.
(c)    The Company shall file all disclosures with respect to this Policy in accordance with the requirements of the Federal
securities laws, including disclosure required by the Securities Exchange Commission filings.
(d)    Any right to recovery under this Policy shall be in addition to, and not in lieu of, any other rights of recovery that may
be available to the Company.
Effective: October 2, 2023
Amendment Effective Date: September 13, 2024
5