FY 2018 Fourth Quarter Earnings Call
Factors impacting ADNT's Q4 GAAP results
ADIENT
> Q4 GAAP net loss impacted by a variety of one-time, non-cash charges which included:
Performance related driven by on-going business performance issues that are
expected to persist into the foreseeable future:
SS&M asset impairment - an analysis resulted in an impairment charge to write-
down long-lived assets, primarily fixed assets, to their fair values
YFAI asset impairment - an analysis resulted in an impairment charge to write-
down the value of Adient's investment in YFAI
Deferred tax asset impairment - based on the history of earnings in certain
geographic regions and forecasts of future earnings, it was determined the
company would be unlikely to realize the benefit of certain deferred tax assets,
resulting in the valuation allowances
> Revision to provisional estimate for US Tax Reform (SAB 118) - impacts have been
updated for FY18 to be $210M compared with the Q1 estimate of $258M
> Other adjustments including "becoming Adient", restructuring charges, pension mark-to-
market, and purchase accounting amortization also impacted Q4 GAAP results
Factors impacting Q4 GAAP net loss
Category
Impairments:
Impact
($ mils)
•
•
SS&M
YFAI
$718
$322
Deferred tax assets
$439
Tax matters:
SAB 118 adjustment
$(48)
$49
$1,480
Other
•
Total
FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018
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