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Equity Method Investments
 12 Months Ended
Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
EQUITY METHOD INVESTMENTS

Valvoline has a strategic relationship with Cummins, Inc. (“Cummins”), a leading supplier of engines and related component products, which includes co-branding products for heavy duty consumers and a 50% interest in joint ventures in India, China, and Argentina. Valvoline also has joint ventures with other partners in Latin America. Valvoline’s investments in these unconsolidated affiliates were $31 million and $30 million as of September 30, 2018 and 2017, respectively.

Valvoline’s stockholders’ deficit included $30 million and $28 million of undistributed earnings from affiliates accounted for under the equity method as of September 30, 2018 and 2017, respectively. Summarized financial information for Valvoline’s equity method investments follows as of and for the years ended September 30:

(In millions)
 
2018
 
2017
Financial position
 
 
 
 
Current assets
 
$
116

 
$
105

Current liabilities
 
(76
)
 
(69
)
Working capital
 
40

 
36

Noncurrent assets
 
23

 
25

Noncurrent liabilities
 
(1
)
 
(1
)
Stockholders’ equity
 
$
62

 
$
60



(In millions)
 
2018
 
2017
 
2016
Results of operations
 
 
 
 
 
 
Sales
 
$
313

 
$
289

 
$
255

Income from operations
 
$
62

 
$
53

 
$
46

Net income
 
$
27

 
$
25

 
$
23


The Company’s transactions with affiliate companies accounted for under the equity method were as follows for the years ended September 30:

(In millions)
 
2018
 
2017
 
2016
Equity income (a)
 
$
14

 
$
12

 
$
12

Distributions received
 
$
10

 
$
8

 
$
16

Royalty income (a)
 
$
8

 
$
7

 
$
4

Sales to
 
$
12

12

$
12

—

$
10

Purchases from
 
$
2

 
$
—

 
$
—

 
 
 
 
 
 
 
(a)
Equity and royalty income are recognized in Equity and other income, net in the Consolidated Statements of Comprehensive Income.

Valvoline has outstanding receivable balances with affiliates accounted for under the equity method of $6 million and $3 million as of September 30, 2018 and 2017, respectively, included in Accounts receivable, net within the Consolidated Balance Sheets.