Adient's lease portfolio consists of operating leases for real estate including production facilities, warehouses and administrative offices, equipment such as forklifts and computer servers and laptops, and fleet vehicles.
The components of lease costs included in the consolidated statements of income (loss) for the three and nine months ended June 30, 2026 and 2025 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Nine Months Ended June 30, | | (in millions) | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating lease cost | | $ | 29 | | | $ | 28 | | | $ | 85 | | | $ | 82 | | | Short-term lease cost | | 9 | | | 7 | | | 26 | | | 21 | | | | | | | | | | | | Total lease cost | | $ | 38 | | | $ | 35 | | | $ | 111 | | | $ | 103 | |
Operating lease right-of-use assets and lease liabilities included in the consolidated statements of financial position were as follows:
| | | | | | | | | | | | | | | | | | | | | | (in millions) | | | | June 30, 2026 | | September 30, 2025 | | Operating leases: | | | | | | | | Operating lease right-of-use assets | | Other noncurrent assets | | $ | 262 | | $ | 259 | | | | | | | | | Operating lease liabilities - current | | Other current liabilities | | $ | 86 | | $ | 82 | | Operating lease liabilities - noncurrent | | Other noncurrent liabilities | | 175 | | 176 | | | | | $ | 261 | | $ | 258 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Weighted average remaining lease term: | | | | | | | | Operating leases | | | | 4 years | | 5 years | | | | | | | | | | | | | | | | Weighted average discount rate: | | | | | | | | Operating leases | | | | 6.2 | % | | 6.0 | % | | | | | | | |
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 June 30, 2026 were as follows:
| | | | | | | | | | | | | | | Fiscal years (in millions) | | Operating Leases | 2026 (excluding the nine months ended June 30, 2026) | | $ | 28 | | | | | 2027 | | 93 | | | | | 2028 | | 66 | | | | | 2029 | | 42 | | | | | 2030 | | 28 | | | | | Thereafter | | 48 | | | | | Total lease payments | | 305 | | | | | Less: imputed interest | | (44) | | | | | Present value of lease liabilities | | $ | 261 | | | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | | Nine Months Ended June 30, | | (in millions) | | 2026 | | 2025 | | Right-of-use assets obtained in exchange for lease obligations: | | | | | | Operating leases (non-cash activity) | | $ | 64 | | | $ | 65 | | | | | | | | | | | | | Operating cash flows: | | | | | | Cash paid for amounts included in the measurement of lease liabilities | | $ | 84 | | | $ | 81 | | | | | | | | | | | |
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