adnt-20201130
0001670541FALSE00016705412020-11-302020-11-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 30, 2020

ADIENT PLC
(Exact name of registrant as specified in its charter)

Ireland001-3775798-1328821
(State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification Number)

 25-28 North Wall Quay, IFSC
Dublin 1, Ireland D01 H104
(Address of principal executive offices)

Registrant’s telephone number, including area code: 734-254-5000


Not Applicable
(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of classTrading symbol(s)Name of exchange on which registered
Ordinary Shares, par value $0.001ADNTNew York Stock Exchange


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17     CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐



Item 2.02 Results of Operations and Financial Condition.

On November 30, 2020, Adient plc issued a news release announcing its financial results for the fourth quarter and fiscal year ended September 30, 2020. The news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

EXHIBIT INDEX
Exhibit No.Exhibit Description
99.1
104
Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ADIENT PLC
Date: November 30, 2020By:/s/ Heather M. Tiltmann
Name:Heather M. Tiltmann
Title:Senior Vice President, General Counsel and Secretary


Exhibit 99.1
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Appendix
Page 1

Adient plc
Condensed Consolidated Statements of Income
(Unaudited)

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions, except per share data)2020201920202019
Net sales$3,597 $3,921 $12,670 $16,526 
Cost of sales3,352 3,708 12,078 15,725 
Gross profit245 213 592 801 
Selling, general and administrative expenses151 160 558 671 
(Gain) loss on business divestitures - net(12)— 13 — 
Restructuring and impairment costs135 17 238 176 
Equity income (loss)79 66 22 275 
Earnings (loss) before interest and income taxes50 102 (195)229 
Net financing charges64 47 220 182 
Other pension expense (income)19 42 14 45 
Income (loss) before income taxes(33)13 (429)2 
Income tax provision (benefit)(18)(2)57 410 
Net income (loss)(15)15 (486)(408)
Income attributable to noncontrolling interests21 19 61 83 
Net income (loss) attributable to Adient$(36)$(4)$(547)$(491)
Diluted earnings (loss) per share$(0.38)$(0.04)$(5.83)$(5.25)
Shares outstanding at period end93.9 93.6 93.9 93.6 
Diluted weighted average shares93.9 93.6 93.8 93.6 




Appendix
Page 2

Adient plc
Condensed Consolidated Statements of Financial Position
(Unaudited)


September 30,
(in millions)20202019
Assets
Cash and cash equivalents$1,692 $924 
Accounts receivable - net
1,641 1,905 
Inventories685 793 
Assets held for sale43 — 
Other current assets421 494 
Current assets4,482 4,116 
Property, plant and equipment - net1,581 1,671 
Goodwill2,057 2,150 
Other intangible assets - net443 405 
Investments in partially-owned affiliates707 1,399 
Assets held for sale27 — 
Other noncurrent assets964 601 
Total assets$10,261 $10,342 
Liabilities and Shareholders' Equity
Short-term debt$210 $30 
Accounts payable and accrued expenses2,553 3,073 
Liabilities held for sale46 — 
Other current liabilities1,010 732 
Current liabilities3,819 3,835 
Long-term debt4,097 3,708 
Other noncurrent liabilities767 559 
Redeemable noncontrolling interests43 51 
Shareholders' equity attributable to Adient1,213 1,848 
Noncontrolling interests322 341 
Total liabilities and shareholders' equity$10,261 $10,342 



Appendix
Page 3

Adient plc
Condensed Consolidated Statements of Cash Flows
(Unaudited)


Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Operating Activities
Net income (loss) attributable to Adient$(36)$(4)$(547)$(491)
Income attributable to noncontrolling interests21 19 61 83 
Net income (loss)(15)15 (486)(408)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation81 73 295 278 
Amortization of intangibles10 9 37 40 
Pension and postretirement benefit expense (benefit)21 44 23 53 
Pension and postretirement contributions, net2 (2)(19)(19)
Equity in earnings of partially-owned affiliates, net of dividends received(61)(44)24 (55)
Impairment of nonconsolidated partially owned affiliate9 — 231 — 
Deferred income taxes(20)(16)(33)288 
Non-cash restructuring and impairment charges26 12 53 78 
Loss (gain) on divestitures - net(12)— 13 — 
Equity-based compensation7 4 15 20 
Other14 5 24 23 
Changes in assets and liabilities:
Receivables(516)(88)190 131 
Inventories62 (31)78 8 
Other assets63 58 140 163 
Restructuring reserves(20)(18)(80)(108)
Accounts payable and accrued liabilities884 (19)(251)(204)
Accrued income taxes(17)— (8)20 
Cash provided (used) by operating activities518 2 246 308 
Investing Activities
Capital expenditures(68)(118)(326)(468)
Sale of property, plant and equipment10 3 15 68 
Settlement of cross-currency interest rate swaps— 10 10 10 
Business divestitures (net of $4 million of divested cash)499 — 499 — 
Changes in long-term investments— — (37)3 
Other5 — 5 4 
Cash provided (used) by investing activities446 (105)166 (383)
Financing Activities
Increase (decrease) in short-term debt(180)16 (16)17 
Increase (decrease) in long-term debt— — 600 1,600 
Repayment of long-term debt(102)(2)(108)(1,204)
Debt financing costs— (2)(10)(47)
Cash dividends— — — (26)
Dividends paid to noncontrolling interests(4)(9)(71)(62)
Formation of consolidated joint venture— — — 28 
Other— — (2)(3)
Cash provided (used) by financing activities(286)3 393 303 
Effect of exchange rate changes on cash and cash equivalents(15)(1)(34)9 
Increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale663 (101)771 237 
Less: Cash classified within current assets held for sale(3)— (3)— 
Increase (decrease) in cash and cash equivalents$660 $(101)$768 $237 


Appendix
Page 4

Footnotes
1. Segment Results

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, 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, qualified 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, 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.

Financial information relating to Adient's reportable segments is as follows:


Three Months Ended September 30,Twelve Months Ended September 30,
(in millions)2020201920202019
Net Sales
Americas$1,796 $1,925 $5,889 $7,785 
EMEA1,398 1,505 5,148 6,675 
Asia460 558 1,822 2,337 
Eliminations(57)(67)(189)(271)
Total net sales$3,597 $3,921 $12,670 $16,526 

Appendix
Page 5


Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Adjusted EBITDA
Americas$111 $64 $228 $210 
EMEA84 47 101 161 
Asia113 126 424 513 
Corporate-related costs (1)
(21)(22)(80)(97)
Restructuring and impairment costs (2)
(135)(17)(238)(176)
Purchase accounting amortization (3)
(10)(12)(40)(44)
Restructuring related charges (4)
(3)(4)(20)(31)
Gain (loss) on business divestitures - net (5)
12 — (13)— 
Impairment of nonconsolidated partially owned affiliate(9)— (231)— 
Stock based compensation(7)(4)(15)(20)
Depreciation(81)(73)(295)(278)
Other items (6)
(4)(3)(16)(9)
Earnings (loss) before interest and income taxes50 102 (195)229 
Net financing charges(64)(47)(220)(182)
Other pension income (expense)(19)(42)(14)(45)
Income (loss) before income taxes$(33)$13 $(429)$2 

Refer to the Footnote Addendum for footnote explanations.


2. Earnings Per Share

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings (loss) per share:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions, except per share data)2020201920202019
Income available to shareholders
Net income (loss) attributable to Adient$(36)$(4)$(547)$(491)
Weighted average shares outstanding
Basic weighted average shares outstanding93.9 93.6 93.8 93.6 
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards— — — — 
Diluted weighted average shares outstanding93.9 93.6 93.8 93.6 


Appendix
Page 6

3. Non-GAAP Measures

Adjusted EBIT, Adjusted EBIT margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income attributable to Adient, Adjusted effective tax rate, Adjusted earnings per share, Adjusted equity income, Free cash flow and Net debt as well as other measures presented on an adjusted basis are not recognized terms under U.S. GAAP and do not purport to be alternatives to the most comparable U.S. GAAP amounts. Since all companies do not use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies. Management uses the identified non-GAAP measures to evaluate the operating performance of the Company and its business segments and to forecast future periods. Management believes these non-GAAP measures assist investors and other interested parties in evaluating Adient's on-going operations and provide important supplemental information to management and investors regarding financial and business trends relating to Adient's financial condition and results of operations. Investors should not consider these non-GAAP measures as alternatives to the related GAAP measures. Reconciliations of non-GAAP measures to their closest U.S. GAAP equivalent are presented below. Reconciliations of non-GAAP measures related to guidance for any future period have not been provided due to the unreasonable efforts it would take to provide such reconciliations.

•Adjusted EBIT is defined as income before income taxes and noncontrolling interests excluding net financing charges, restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, other significant non-recurring items, and net mark-to-market adjustments on pension and postretirement plans. Adjusted EBIT margin is adjusted EBIT as a percentage of net sales.
•Adjusted EBITDA is defined as adjusted EBIT excluding depreciation and stock based compensation. Certain corporate-related costs are not allocated to the business segments in determining Adjusted EBITDA. Adjusted EBITDA margin is adjusted EBITDA as a percentage of net sales.
•Adjusted net income attributable to Adient is defined as net income attributable to Adient excluding restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, expenses associated with becoming an independent company, other significant non-recurring items, net mark-to-market adjustments on pension and postretirement plans, the tax impact of these items and other discrete tax charges/benefits.
•Adjusted effective tax rate is defined as adjusted income tax provision as a percentage of adjusted income before income taxes.
•Adjusted earnings per share is defined as Adjusted net income attributable to Adient divided by diluted weighted average shares.
•Adjusted equity income is defined as equity income excluding amortization of Adient's intangible assets related to its non-consolidated joint ventures and other unusual or one-time items impacting equity income.
•Free cash flow is defined as cash from operating activities less capital expenditures.
•Net debt is calculated as gross debt less cash and cash equivalents.


Appendix
Page 7

Summarized Income Statement Information
(Refer to the Footnote Addendum for footnote explanations and details
of reconciling items between GAAP results and Adjusted results)

Three Months Ended September 30,
20202019
(in millions, except per share data)GAAP ResultsAdj.Adjusted ResultsGAAP ResultsAdj.Adjusted Results
Net sales$3,597 $— $3,597 $3,921 $— $3,921 
Cost of sales (7)
3,352 (4)3,348 3,708 (4)3,704 
Gross profit245 4 249 213 4 217 
Selling, general and administrative expenses (8)
151 (13)138 160 (7)153 
(Gain) loss on business divestitures - net (5)
(12)12 — — — — 
Restructuring and impairment costs (2)
135 (135)— 17 (17)— 
Equity income (loss) (9)
79 9 88 66 8 74 
Earnings (loss) before interest and income taxes (EBIT)50 149 199 102 36 138 
Memo accounts:
Depreciation81 73 
Equity based compensation costs7 4 
Adjusted EBITDA$287 $215 
Net financing charges (10)
64 3 67 47 — 47 
Other pension expense (income) (11)
19 (21)(2)42 (43)(1)
Income (loss) before income taxes(33)167 134 13 79 92 
Income tax provision (benefit) (12)
(18)19 1 (2)15 13 
Net income (loss) attributable to Adient(36)145 109 (4)63 59 
Diluted earnings (loss) per share(0.38)1.53 1.15 (0.04)0.67 0.63 
Diluted weighted average shares93.9 0.5 94.4 93.6 0.5 94.1 





















Appendix
Page 8

Summarized Income Statement Information
(Refer to the Footnote Addendum for footnote explanations and details
of reconciling items between GAAP results and Adjusted results)

Twelve Months Ended September 30,
20202019
(in millions, except per share data)GAAP ResultsAdj.Adjusted ResultsGAAP ResultsAdj.Adjusted Results
Net sales$12,670 $— $12,670 $16,526 $— $16,526 
Cost of sales (7)
12,078 (10)12,068 15,725 (33)15,692 
Gross profit592 10 602 801 33 834 
Selling, general and administrative expenses (8)
558 (54)504 671 (40)631 
(Gain) loss on business divestitures - net (5)
13 (13)— — — — 
Restructuring and impairment costs (2)
238 (238)— 176 (176)— 
Equity income (loss) (9)
22 243 265 275 11 286 
Earnings (loss) before interest and income taxes (EBIT)(195)558 363 229 260 489 
Memo accounts:
Depreciation295 278 
Equity based compensation costs15 20 
Adjusted EBITDA$673 $787 
Net financing charges (10)
220 3 223 182 (13)169 
Other pension expense (income) (11)
14 (23)(9)45 (49)(4)
Income (loss) before income taxes(429)578 149 2 322 324 
Income tax provision (benefit) (12)
57 27 84 410 (325)85 
Net income (loss) attributable to Adient(547)543 (4)(491)644 153 
Diluted earnings (loss) per share(5.83)5.79 (0.04)(5.25)6.88 1.63 
Diluted weighted average shares93.8 — 93.8 93.6 0.3 93.9 





















Appendix
Page 9





Segment Performance:
Three months ended September 30, 2020
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$1,796 $1,398 $460 $(57)$3,597 
Adjusted EBITDA$111 $84 $113 $(21)$287 
Adjusted EBITDA margin6.2 %6.0 %24.6 %N/A8.0 %
Three months ended September 30, 2019
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$1,925 $1,505 $558 $(67)$3,921 
Adjusted EBITDA$64 $47 $126 $(22)$215 
Adjusted EBITDA margin3.3 %3.1 %22.6 %N/A5.5 %
Twelve months ended September 30, 2020
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$5,889 $5,148 $1,822 $(189)$12,670 
Adjusted EBITDA$228 $101 $424 $(80)$673 
Adjusted EBITDA margin3.9 %2.0 %23.3 %N/A5.3 %
Twelve months ended September 30, 2019
AmericasEMEAAsiaCorporate/EliminationsConsolidated
7785
Net sales$7,785 $6,675 $2,337 $(271)$16,526 
$513
Adjusted EBITDA$210 $161 $513 $(97)$787 
Adjusted EBITDA margin2.7 %2.4 %22.0 %N/A4.8 %





Appendix
Page 10

The following table reconciles income (loss) before income taxes to adjusted income before income taxes and presents the related effective tax rate and adjusted effective tax rate:

Three Months Ended September 30,
20202019
(in millions, except effective tax rate)Income (loss) before income taxesTax impactEffective tax rateIncome (loss) before income taxesTax impactEffective tax rate
As reported$(33)$(18)54.5%$13 $(2)(15.4)%
Adjustments (12)
167 19 11.4%79 15 19.0%
As adjusted$134 $1 0.7%$92 $13 14.1%


Twelve Months Ended September 30,
20202019
(in millions, except effective tax rate)Income (loss) before income taxesTax impactEffective tax rateIncome (loss) before income taxesTax impactEffective tax rate
As reported$(429)$57 (13.3)%$2 $410 *
Adjustments (12)
578 27 4.7%322 (325)*
As adjusted$149 $84 56.4%$324 $85 26.2%

* Measure not meaningful.


The following table reconciles net income (loss) attributable to Adient to adjusted net income (loss) attributable to Adient:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Net income (loss) attributable to Adient$(36)$(4)$(547)$(491)
Restructuring and impairment costs (2)
135 17 238 176 
Purchase accounting amortization (3)
10 12 40 44 
Restructuring related charges (4)
3 4 20 31 
(Gain) loss on business divestitures - net (5)
(12)— 13 — 
Pension mark-to-market and settlement gain/loss (11)
21 43 23 49 
Impairment of YFAI investment (9)
9 — 231 — 
Gain on partial extinguishment of long-term debt (10)
(3)— (3)13 
Other items (6)
4 3 16 9 
Impact of adjustments on noncontrolling interests (13)
(3)(1)(8)(3)
Tax impact of above adjustments and other tax items (12)
(19)(15)(27)325 
Adjusted net income (loss) attributable to Adient$109 $59 $(4)$153 

Refer to the Footnote Addendum for footnote explanations

Appendix
Page 11

The following table reconciles diluted earnings (loss) per share as reported to adjusted diluted earnings per share:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
2020201920202019
Diluted earnings (loss) per share as reported$(0.38)$(0.04)$(5.83)$(5.25)
Restructuring and impairment costs (2)
1.43 0.18 2.54 1.87 
Purchase accounting amortization (3)
0.11 0.13 0.43 0.47 
Restructuring related charges (4)
0.03 0.04 0.21 0.33 
(Gain) loss on business divestitures - net (5)
(0.13)— 0.14 — 
Pension mark-to-market and settlement gain/loss (11)
0.22 0.46 0.25 0.52 
Impairment of YFAI investment (9)
0.10 — 2.46 — 
Gain on partial extinguishment of long-term debt (10)
(0.03)— (0.03)0.14 
Other items (6)
0.04 0.03 0.17 0.11 
Impact of adjustments on noncontrolling interests (13)
(0.03)(0.01)(0.09)(0.03)
Tax impact of above adjustments and other tax items (12)
(0.21)(0.16)(0.29)3.47 
Adjusted diluted earnings (loss) per share$1.15 $0.63 $(0.04)$1.63 

The following table presents calculations of net debt:

September 30,
(in millions, except net leverage)20202019
Cash$1,692 $924 
Total debt4,307 3,738 
Net debt$2,615 $2,814 

The following table reconciles cash from operating activities to free cash flow:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Operating cash flow$518 $2 $246 $308 
Capital expenditures(68)(118)(326)(468)
Free cash flow$450 $(116)$(80)$(160)



Appendix
Page 12

The following table reconciles adjusted EBITDA to Free cash flow:
FY20FY19
(in millions)Q4FY20YTDQ4FY19YTD
Adjusted EBITDA$287 $673 $215 $787 
(+/-) Net equity in earnings(61)12 (53)(68)
(-) Restructuring (cash)(23)(93)(19)(132)
(+/-) Net Customer Tooling4 18 30 73 
(+/-) Trade Working Capital (Net AR/AP + Inventory)204 (180)(89)(176)
(+/-) Accrued Compensation28 (14)(31)17 
(-) Interest paid(59)(207)(55)(137)
(+/-) Tax refund/taxes paid(19)(98)(14)(102)
(+/-) Other157 135 18 46 
Operating cash flow518 246 2 308 
Capital expenditures(68)(326)(118)(468)
Free cash flow$450 $(80)$(116)$(160)




Appendix
Page 13


Footnote Addendum

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.

(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 and one-time asset impairments, as follows:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Restructuring charges$109 $5 $185 $92 
Long-lived asset impairment - SS&M— — — 66 
Held for sale and other asset adjustments26 12 26 18 
Futuris China intangible assets impairment— — 27 — 
$135 $17 $238 $176 

(3) Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.

(4) Reflects non-qualified restructuring charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates recorded within equity income.

(5) (Gain) loss on business divestitures include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Adient Aerospace deconsolidation$— $— $4 $— 
Sale of RECARO business— — 21 — 
Completion of Yanfeng transaction(12)— (12)— 
$(12)$— $13 $— 

(6) Other items include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Transaction costs$(4)$— $(15)$(3)
Futuris integration— (1)— (4)
Tax adjustments at YFAI— (2)(1)(2)
$(4)$(3)$(16)$(9)



Appendix
Page 14


(7) The adjustments to cost of sales include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Purchase accounting amortization$(1)$(2)$(1)$(5)
Restructuring related charges(3)(1)(9)(24)
Futuris integration— (1)— (4)
$(4)$(4)$(10)$(33)

(8) The adjustments to selling, general and administrative costs include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Purchase accounting amortization$(9)$(7)$(36)$(35)
Restructuring related charges— — (3)(2)
Transaction costs(4)— (15)(3)
$(13)$(7)$(54)$(40)

(9) The adjustments to equity income include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Purchase accounting amortization
$— $3 $3 $4 
Restructuring related charges
— 3 8 5 
Impairment of YFAI investment (part of Yanfeng transaction)
9 — 231 — 
Tax adjustments at YFAI— 2 1 2 
$9 $8 $243 $11 

(10) The adjustments to net financing charges include:


Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Write off of deferred financing charges upon debt renewal$— $— $— $(13)
Gain on partial extinguishment of long-term debt3 — 3 — 
$3 $— $3 $(13)



Appendix
Page 15


(11) The adjustments to other pension expense (income) include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Mark-to-market adjustments$(22)$(43)$(22)$(49)
One-time settlement and curtailment gain (loss)1 — (1)— 
$(21)$(43)$(23)$(49)

(12) The adjustments to income tax provision (benefit) include:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in millions)2020201920202019
Tax rate change$— $8 $1 $5 
Valuation allowances (5)3 (5)(297)
Increase to the effective tax rate resulting from valuation allowances— — — (50)
Sale of fabrics business3 — 3 — 
Yanfeng transaction including YFAI investment impairment12 — 16 — 
SS&M long-lived asset impairment— — — 4 
Benefits associated with restructuring and impairment charges2 — 7 — 
Other reconciling items7 4 5 13 
$19 $15 $27 $(325)

(13) Reflects the impacts of adjustments, primarily purchase accounting amortization and changes in income tax rates, on noncontrolling interests.