FY 2017 First Quarter Earnings Call
Non-GAAP reconciliations
Adjusted Net Income
Adjusted Net Income
Three Months Ended
December 31
ADIENT
Adjusted Diluted EPS
Three Months Ended
December 31
2016
2015
(in $ millions)
2016
2015
(in $ millions)
Net income attributable to Adient
$
149 $
137
Diluted earnings per share as reported
$
1.59
$ 1.46
(1)
Becoming Adient/separation costs
41
60
Becoming Adient/separation costs
(1)
0.44
0.64
(2)
Purchase accounting amortization
(2)
10
9
Purchase accounting amortization
0.10
0.09
(3)
Restructuring related charges
(3)
5
4
Restructuring related charges
0.05
0.04
(4)
Other items
(21) Other items
(4)
(0.22)
Tax impact of above adjustments and one time tax items
Adjusted net income attributable to Adient
(6)
(3)
Tax impact of above adjustments and one time tax items
(0.06)
(0.03)
$
199
$
186
Adjusted diluted earnings per share
2.12
1.98
Pro-forma IT dis-synergies
(5)
Pro-forma net financing charges
(5)
(6)
Pro-forma IT dis-synergies
(5)
(0.06)
(31) Pro-forma net financing charges
(5)
(0.33)
Tax impact of above pro-forma adjustments
5
Tax impact of above pro-forma adjustments
0.05
Pro-forma effective tax rate adjustment
(5)
21
Pro-forma adjusted net income attributable to Adient
$
199
$
175
Pro-forma effective tax rate adjustment
Pro-forma adjusted diluted earnings per share
(5)
0.23
2.12
1.87
1. Reflects incremental/non-recurring 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 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 JCI in the amount of $8 million, $7 million, $8 million and $1 million in the first, second, third and fourth quarters of 2016.
5. 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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