Note 15. Related Party Transactions

3 Months Ended

Dec. 31, 2017



15. Related Party Transactions

In the ordinary course of business, Adient enters into transactions with related parties, such as equity affiliates. Such transactions consist of facility management services, 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 net sales to and purchases from related parties included in the consolidated statements of income:



	Three Months Ended December 31,
(in millions)	2017		2016
Net sales	$	99	$	98
Cost of sales	137		100

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



(in millions)	December 31, 2017		September 30, 2017
Accounts receivable	$	158	$	129
Accounts payable	122		104

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 during the quarter ended March 31, 2017 in accordance with the separation agreement. The impact of the settlement is reflected within additional paid-in capital.