FY 2017 Second Quarter Earnings Call
Non-GAAP reconciliations
EBIT, Pro-forma Adjusted EBIT, Pro-forma Adjusted EBITDA
FY16 Actual
FY17 Actual
Last Twelve Months Ended
ADIENT
Actual
(in $ millions)
Q4 FY15
Q1 FY16
Q2 FY16
Q3 FY16
Q4 FY16
Q1 FY17
Q2 FY17
Jun '16
Actual
Sep '16
Actual
Dec '16
Actual
Mar '17
Net income attributable to Adient
(116)
$
137
(779)
(14)
(877)
149
$
192
$
(772)
(1,533)
Income attributable to noncontrolling interests
13
17
23
21
23
22
24
74
84
(1,521)
89
(550)
90
Income Tax Provision
284
53
838
136
812
28
37
1,311
1,839
1,814
1,013
Financing Charges
Earnings before interest and income taxes
1
2
4
2
14
35
33
9
22
55
84
$
182
$
209
$
86
$
145
$
(28)
$
234
$
286
$
622
$
412
$
437
$
637
(1)
Separation costs
60
72
122
115
10
254
369
319
247
Becoming Adient
(1) (9)
15
23
15
38
(2)
Purchase accounting amortization
9
9
10
9
9
10
9
37
37
38
37
Restructuring related charges
Other items (4) (9)
(3) (9)
4
4
3
3
4
8
10
14
14
18
25
(7)
(21)
(35)
(22)
(1)
13
(85)
(79)
(45)
(10)
(5)
Restructuring and impariment costs
182
169
75
88
6
426
332
332
169
(6)
Pension mark-to-market
6
110
6
110
110
110
Gain on business divestiture
(137)
(137)
Adjusted EBIT
$
239
$
261
$
305
ՄԴ
332
es
$
297
$
290
334
1,137
$ 1,195
$
1,224
1,253
Pro-forma IT dis-synergies
(8)
(6)
(6)
(7)
(6)
(7)
(25)
(26)
(20)
(13)
Pro-forma Adjusted EBIT
$
233
$
255
$
298
$ 326
290
$
290
$
334
1,112
1,169 $
1,204 $
1,240
Stock based compensation
Depreciation
(7)
(4)
1
5
14
8
4
11
16
28
31
37
77
82
81
77
87
83
78
317
327
328
325
Pro-forma Adjusted EBITDA
$
306
$
338
$
384 $
417
$ 385
$
377
$
423
$
1,445 $
1,524
$
1,563 $
1,602
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. First quarter 2017 primarily consists of $12M of initial funding of the Adient foundation. Also Reflects a first quarter 2016 $13 million favorable commercial settlement, second quarter 2016 $22 million favorable settlements from prior year business divestitures and a $6 million favorable legal settlement,
and a third quarter 2016 $14 million favorable legal settlement. Also reflected is a multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent in the amount of $8 million, $7 million, $8 million and $1 million in the first, second, third and fourth
quarters of 2016, respectively.
5. Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420.
6. Reflects net mark-to-market adjustments on pension and postretirement plans.
7. Stock based compensation excludes $2 million and $5 million of expense in the first and second quarters of 2017, respectively, which is included with the costs associated with becoming an independent company (Becoming Adient costs) discussed above.
8. 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.
9. During the second quarter of fiscal 2017, Adient decided to reclassify certain Becoming Adient costs into other reconciling categories in calculating Adjusted EBIT. As a result, Becoming Adient costs related to prior periods decreased by $16 million and restructuring related items and
other items increased by $3 million, and $13 million, respectively. This change did not impact the Adjusted EBIT numbers for any prior periods.
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