To better align its resources with its overall strategies and reduce the cost structure of its global operations to address the softness in certain underlying markets, Adient commits to restructuring plans as necessary. Adient, in general, records costs associated with separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period. All other costs associated with restructuring activities are expensed as incurred.

During the first six months of fiscal 2024, Adient committed to restructuring actions ("2024 Plan") resulting in charges of $138 million, including a charge of $127 million recorded during the three months ended March 31, 2024, which was offset by $2 million of prior-year underspend. The second quarter charges were almost entirely related to termination benefits in Europe. The 2024 Plan is being implemented in response to structural changes occurring in the European automotive market and to ensure Adient maintains a competitive cost structure by reducing operating, administrative and engineering costs, and increasing efficiencies. Restructuring actions associated with these specific plans will primarily occur in fiscal years 2025 and 2026 and are expected to be substantially complete by fiscal year 2027. Restructuring costs are included in restructuring and impairment costs in the consolidated statements of income. The following tables summarize the changes in Adient's restructuring reserve.


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at December 31, 2023	$	58	$	(4)	$	54
2024 Plan charges	127		—		127
Utilized - cash	(8)		—		(8)
Noncash and other adjustments	(2)		(2)		(4)
Balance at March 31, 2024	$	175	$	(6)	$	169

Current restructuring reserve - other current liabilities					$	64
Noncurrent restructuring reserve - other noncurrent liabilities					105
Balance at March 31, 2024					$	169


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at September 30, 2023	$	56	$	(5)	$	51
2024 Plan charges	138		—		138
Utilized - cash	(17)		—		(17)
Noncash and other adjustments	(2)		(1)		(3)
Balance at March 31, 2024	$	175	$	(6)	$	169


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at December 31, 2022	$	49	$	(4)	$	45
2023 Plan charges	17		—		17
Utilized - cash	(10)		—		(10)
Noncash and other adjustments	1		—		1
Balance at March 31, 2023	$	57	$	(4)	$	53

Current restructuring reserve - other current liabilities					$	53
Noncurrent restructuring reserve - other noncurrent liabilities					—
Balance at March 31, 2023					$	53


(in millions)	Employee Severance and Termination Benefits		Currency Translation		Total
Balance at September 30, 2022	$	69	$	(9)	$	60
2023 Plan charges	24		—		24
Utilized - cash	(37)		—		(37)
Noncash and other adjustments	1		5		6
Balance at March 31, 2023	$	57	$	(4)	$	53

Adient's management closely monitors its overall cost structure and continually analyzes each of its businesses for opportunities to consolidate current operations, improve operating efficiencies and locate facilities in low-cost countries in close proximity to customers. This ongoing analysis includes a review of its manufacturing, engineering, purchasing and administrative functions, as well as the overall global footprint for all its businesses. Future adverse developments in the automotive industry could impact Adient's liquidity position, lead to impairment charges and/or require additional restructuring of its operations.