Related Party Transactions

12 Months Ended

Sep. 30, 2019

21. Related Party Transactions

In the ordinary course of business, Adient enters into transactions with related parties, such as equity affiliates. Such transactions consist of the sale or purchase of goods and other arrangements. Subsequent to the separation, transactions with the former Parent and its businesses represent third-party transactions.

The following table sets forth the location and amounts of net sales to and purchases from related parties included in Adient's

consolidated statements of income (loss):


		Year Ended September 30,
(in millions)		2019		2018		2017
Net sales to related parties	Net sales	$	386	$	389	$	409
Purchases from related parties	Cost of sales	704		614		511

The following table sets forth the location and amount of accounts receivable due from and payable to related parties in Adient's consolidated statements of financial position:


		September 30,
(in millions)		2019		2018
Accounts receivable due from related parties	Accounts receivable	$	73	$	91
Accounts payable due to related parties	Accounts payable	137		102

Average receivable and payable balances with related parties remained consistent with the period end balances shown above.

Allocations from Former Parent

During fiscal 2017, allocations from the former Parent were insignificant. During fiscal 2017, Adient and the former Parent finalized the reconciliation of working capital and other accounts and the net amount due from the former Parent of $87 million was settled in accordance with the separation agreement. The impact of the settlement is reflected within additional paid-in capital.