Nonconsolidated Partially-Owned Affiliates

12 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Nonconsolidated Partially-Owned Affiliates

19. Nonconsolidated Partially-Owned Affiliates

Investments in the net assets of nonconsolidated partially-owned affiliates are reported in the "Investments in partially-owned affiliates" line in the consolidated statements of financial position. Equity in the net income of nonconsolidated partially-owned affiliates are reported in the "Equity income" line in the consolidated statements of income (loss). Adient maintains total investments in partially-owned affiliates of $0.3 billion and $0.7 billion at September 30, 2021 and 2020, respectively. Operating information for nonconsolidated partially-owned affiliates is as follows:

	% ownership at September 30,
Name of key partially-owned affiliate	2021	2020
KEIPER Seating Mechanisms Co., Ltd. (KEIPER, previously AYM)	50.0%	50.0%
Changchun FAWAY Adient Automotive Systems Co. Ltd. (CFAA)	49.0%	49.0%
Yanfeng Adient Seating Co., Ltd. (YFAS)	—%	49.9%

	Year Ended September 30,
(in millions)	2021		2020		2019
Income statement data:
Net sales	$	8,809	$	9,538	$	15,555
Gross profit	$	1,008	$	1,111	$	1,721
Net income	$	733	$	591	$	667
Net income attributable to the entity	$	682	$	563	$	629

	September 30,
(in millions)	2021		2020
Balance sheet data:
Current assets	$	1,792	$	4,222
Noncurrent assets	$	874	$	1,579
Current liabilities	$	1,841	$	4,213
Noncurrent liabilities	$	145	$	87
Noncontrolling interests	$	—	$	105

On March 31, 2021, Adient sold its 50% equity interest in SJA to the joint venture partner for $58 million. The income statement data above includes SJA’s results for the first six months of fiscal 2021. On September 30, 2021, Adient sold all of the issued and outstanding equity interest in YFAS held, directly or indirectly, by Adient, which represented 49.99% of YFAS’s total issued and outstanding equity interest to Yanfeng, the joint venture partner, for ¥8,064 million ($1,210 million) as part of the 2021 Yanfeng Transaction. As a result, the balance sheet data as of September 30, 2021 above excludes those of SJA and YFAS. It also excludes that of CQADNT as Adient started consolidating CQADNT after completing the acquisition of additional interest on September 30, 2021. Refer to Note 3, “Acquisitions and Divestitures,” of the notes to the consolidated financial statements for additional information.

During fiscal 2020, Adient entered into an agreement to transfer all of the issued and outstanding equity interest in YFAI held, directly or indirectly, by Adient, which represented 30% of YFAI’s total issued and outstanding equity interest, to Yanfeng Automotive Trim Systems Company Ltd. for $369 million as part of the 2020 Yanfeng Transaction. As a result, Adient concluded that indicators of other-than-temporary impairment were present related to the investment in YFAI and recorded a $231 million non-cash impairment of Adient’s YFAI investment, during fiscal 2020. The impairment was determined based on combining the fair value of consideration received for all transactions contemplated as part of the Yanfeng transaction and has been recorded within equity income in the consolidated statements of income (loss). Refer to Note 3, “Acquisitions and Divestitures,” of the notes to the consolidated financial statements for additional information.