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 the first nine months of fiscal 2026, Adient committed to restructuring actions ("2026 Plan") resulting in charges of $33 million and an additional $1 million related to prior year plans. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions in EMEA. The 2026 Plan is being implemented in response to manufacturing footprint and structural changes occurring in the global automotive industry and to ensure Adient maintains a competitive cost structure by reducing operating, administrative and engineering costs, and increasing efficiencies. Restructuring actions associated with the 2026 Plan will primarily occur in fiscal years 2026 and 2027, 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 (loss). The following tables summarize the changes in Adient's restructuring reserve.


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at March 31, 2026	$	126	$	3	$	129
2026 Plan charges	5		—		5
Utilized - cash	(34)		—		(34)

Balance at June 30, 2026	$	97	$	3	$	100

Current restructuring reserve - other current liabilities					$	67
Noncurrent restructuring reserve - other noncurrent liabilities					33
Balance at June 30, 2026					$	100


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at September 30, 2025	$	128	$	6	$	134
2026 Plan charges	33		—		33
Utilized - cash	(65)		—		(65)
Noncash and other adjustments	1		(3)		(2)
Balance at June 30, 2026	$	97	$	3	$	100

During the first nine months of fiscal 2025, Adient committed to restructuring actions ("2025 Plan") resulting in charges of $42 million, which was offset by $4 million of prior-year underspend. The restructuring actions relate to cost reduction initiatives and consist primarily of workforce reductions in EMEA. The 2025 Plan is being implemented in response to manufacturing footprint and structural changes occurring in the global automotive industry 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 have occurred and 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 (loss). The following tables summarize the changes in Adient's restructuring reserve.


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at March 31, 2025	$	155	$	(3)	$	152
2025 Plan charges	9		—		9
Utilized - cash	(26)		—		(26)
Noncash and other adjustments	(2)		10		8
Balance at June 30, 2025	$	136	$	7	$	143

Current restructuring reserve - other current liabilities					$	75
Noncurrent restructuring reserve - other noncurrent liabilities					68
Balance at June 30, 2025					$	143


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at September 30, 2024	$	181	$	1	$	182
2025 Plan charges	42		—		42
Utilized - cash	(83)		—		(83)
Noncash and other adjustments	(4)		6		2
Balance at June 30, 2025	$	136	$	7	$	143

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. 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.

During the first three months of fiscal 2025, Adient recorded a non-cash impairment loss of $10 million on its investment in Adient Aerospace. The impairment is included in restructuring and impairment costs in the consolidated statements of income (loss). Refer also to Note 5, “Goodwill and Other Intangible Assets” of the notes to the consolidated financial statements for information about the EMEA goodwill impairment recorded during fiscal 2025.