Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2025

Projected benefit payments from the plans as of September 30, 2025 are estimated as follows (in millions):

Adient's plan assets by asset category, are as follows:


	Fair Value Measurements Using:
(in millions)	Total as of September 30, 2025		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Net Asset Value (NAV)
Pension
Cash	$	3	$	3	$	—	$	—	$	—
Equity Securities
Domestic	2		2		—		—		—
International - Developed	23		23		—		—		—

Fixed Income Securities
Government	134		32		76		—		26
Corporate/Other	71		31		29		—		11
Hedge Fund	37		—		37		—		—
Real Estate	3		—		—		—		3
Total	$	273	$	91	$	142	$	—	$	40


	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

The following sets forth a summary of changes in the fair value of pension assets measured using significant unobservable inputs (Level 3):

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)	2025		2024
Accumulated Benefit Obligation	$	346	$	366
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	384	$	349
Service cost	6		5
Interest cost	16		19

Actuarial loss (gain)	(14)		28
Benefits paid	(21)		(28)
Curtailments, settlements and other	(12)		(6)

Currency translation adjustment	7		17
Projected benefit obligation at end of year	$	366	$	384
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	293	$	263
Actual return on plan assets	(6)		26
Employer contributions, net	18		20
Benefits paid	(21)		(28)
Curtailments, settlements and other	(12)		(6)

Currency translation adjustment	1		18
Fair value of plan assets at end of year	$	273	$	293
Funded status	$	(93)	$	(91)
Amounts recognized in the statement of financial position consist of:
Pension plan assets (other noncurrent assets)	$	25	$	19
Pension benefits (of which $6 million and $5 million are included in accrued compensation and benefits, respectively)	(118)		(110)
Net amount recognized	$	(93)	$	(91)


	Pension Benefits
	U.S. Plans				Non-U.S. Plans
	2025		2024		2025		2024
Weighted Average Assumptions (1):
Discount rate (2)	5.60	%	4.99	%	5.29	%	4.75	%
Rate of compensation increase	N/A		N/A		4.68	%	4.82	%


(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.

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)	2025		2024		2023
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	6	$	6	$	5
Interest cost	16		19		18
Expected return on plan assets	(13)		(12)		(12)
Net actuarial loss	3		13		19
Settlement loss	4		1		8
Net periodic benefit cost	$	16	$	27	$	38


	Pension Benefits
	U.S. Plans						Non-U.S. Plans
	2025		2024		2023		2025		2024		2023
Expense Assumptions:
Discount rate	4.99	%	5.87	%	5.51	%	4.75	%	5.60	%	4.98	%
Expected return on plan assets	6.75	%	6.75	%	6.75	%	5.14	%	4.95	%	4.53	%
Rate of compensation increase	N/A		N/A		NA		4.38	%	4.53	%	4.43	%

Adient plc 10-K