FY 2017 Second Quarter Earnings Call
Non-GAAP reconciliations
Adjusted Net Income
(in $ millions)
Net income attributable to Adient
Separation costs
(1)
Becoming Adient
(1)
Purchase accounting amortization
(2)
(3)
Restructuring related charges
Other items
(4)
Adjusted Net Income
Restructuring and impairment costs
(5)
Tax impact of above adjustments and one time tax items
Adjusted net income attributable to Adient
(6)
Pro-forma IT dis-synergies
Pro-forma net financing charges
(6)
Tax impact of above pro-forma adjustments
(6)
Pro-forma effective tax rate adjustment
Pro-forma Adjusted net income attributable to Adient
Adjusted Diluted EPS
ADIENT
Three Months Ended
March 31
Three Months Ended
March 31
2017
2016
2017
2016
$ 192 $ (779)
Diluted earnings per share as reported
$ 2.04 $ (8.31)
72
Separation costs
(1)
0.77
23
Becoming Adient
(1)
0.24
(2)
9
10
Purchase accounting amortization
0.10
0.11
(3)
10
3
Restructuring related charges
0.11
0.03
(4)
(35)
Other items
(0.37)
(5)
9
169
Restructuring and impairment costs
0.06
1.80
(5)
773
Tax impact of above adjustments and one time tax items
(0.05)
8.24
St
$
235
$
213
Adjusted diluted earnings per share
$
2.50 $
2.27
(6)
(7)
Pro-forma IT dis-synergies
(0.07)
(32)
Pro-forma net financing charges
(6)
(0.34)
8
Tax impact of above pro-forma adjustments
0.09
(6)
20
$
235
$
202
Pro-forma effective tax rate adjustment
Pro-forma Adjusted diluted earnings per share
0.20
$
2.50 $
2.15
1. Reflects incremental expenses associated with becoming an independent company and expenses associated with the separation from JCI.
2. Reflects amortization of intangible assets including those related to the YFAI joint venture recorded within equity income.
3. Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420.
4. Reflects a second quarter 2016 $22 million favorable settlements from prior year business divestitures and a $6 million favorable legal settlement. Also reflected is a multi-employer pension credit associated with the removal of costs for pension plans that
remained with JCI in the amount of $7 million in the first quarter of 2016.
5. Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420.
6. Pro-forma amounts include IT dis-synergies as a result of higher stand-alone IT costs as compared to allocated IT costs under JCI, interest expense that Adient would have incurred had it been a stand-alone company and the impact of the tax rate had Adient
been operating as a stand-alone company domiciled in its current jurisdiction.
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