FY 2018 Fourth Quarter Earnings Call
Non-GAAP reconciliations
Net Debt and Adjusted Equity Income
ADIENT
Net Debt and Net Leverage
(in $ millions)
September 30
2018
September 30
2017
(in $ millions)
Adjusted Equity Income
Three Months Ended
2018
September 30
2017
September 30
2018
2017
Twelve Months Ended
Cash
$
687 $
709
Equity income as reported
$ (281)
ՄՌ
$
248 $
(13)
$ 522
(1)
Total Debt
Net Debt
3,430
3,478
Purchase accounting amortization
6
6
22
22
$
2,743
$
2,769
Adjusted-EBITDA (last twelve months)
Net Leverage
$
1,200
$
1,605
2.29x
1.73x
Restructuring related charges
Impairment of YFAI Investment (3)
US tax reform legislation at YFAI
Gain on previously held interest
Adjusted equity income
(2)
6
10
1
358
358
8
(4)
(151)
(151)
$
89
$
103
$
385
$
394
1. Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income.
2. 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.
3. During the three months ended September 30, 2018, the Company recorded a non-cash pre-tax impairment charge related to its YFAI investment balance of $358 million (post-tax charge of $322 million). On-going performance issues within the YFAI business led
Adient to perform an impairment analysis of its YFAI investment and resulted in the recognition of such impairment charge, which has been recorded within equity income
4. In 2017, an amendment to the rights agreement with a Seating affiliate in China was finalized, giving Adient control of the previously non-consolidated JV. Adient began consolidating the affiliate in July 2017 and was required to apply purchase accounting, including
recognizing a gain on our previously held interest, which has been recorded in equity income.
FY 2018 Fourth Quarter Earnings Call / November 9, 2018
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