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Nonconsolidated Partially-Owned Affiliates | 12 Months Ended
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Sep. 30, 2020
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 $0.7 billion and $1.4 billion at September 30, 2020 and 2019, respectively. Operating information for nonconsolidated partially-owned affiliates is as follows:
|  | % ownership
Name of key partially-owned affiliate |  | 2020 |  | 2019
Adient Yanfeng Seating Mechanism Co., Ltd. (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% |  | 49.9%
Yanfeng Global Automotive Interiors Systems Co., Ltd. (YFAI) |  | —% |  | 30.0%
|  | Year Ended September 30,
(in millions) |  | 2020 |  | 2019 |  | 2018
Income statement data: |  |  |  |  |  |
Net sales |  | $ | 9,538 |  |  | $ | 15,555 |  |  | $ | 18,258 |
Gross profit |  | $ | 1,111 |  |  | $ | 1,721 |  |  | $ | 2,214 |
Net income |  | $ | 591 |  |  | $ | 667 |  |  | $ | 823 |
Net income attributable to the entity |  | $ | 563 |  |  | $ | 629 |  |  | $ | 773 |
|  | September 30,
(in millions) |  | 2020 |  | 2019
Balance sheet data: |  |  |  |
Current assets |  | $ | 4,222 |  |  | $ | 7,122 |
Noncurrent assets |  | $ | 1,579 |  |  | $ | 3,335 |
Current liabilities |  | $ | 4,213 |  |  | $ | 7,058 |
Noncurrent liabilities |  | $ | 87 |  |  | $ | 433 |
Noncontrolling interests |  | $ | 105 |  |  | $ | 125 |
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 represents 30% of YFAI’s total issued and outstanding equity interest, to Yanfeng Automotive Trim Systems Company Ltd. for $369 million as part of the 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. During the fourth quarter of fiscal 2018, Adient concluded that indicators of potential impairment were present related to the investment in YFAI based on the declines in operating performance during fiscal 2018 along with declines in projections of the YFAI business for the foreseeable future. Accordingly, Adient deemed such issues to represent an other-than-temporary decline and undertook an impairment analysis to determine the fair value of the investment in YFAI, which was completed under an income approach utilizing discounted cash flows to derive a fair value of the investment in YFAI. Based on the fair value, the carrying value of the investment in YFAI exceeded fair value by $358 million, and as such Adient recorded a non-cash impairment charge within equity income in the consolidated statements of income (loss) for that amount in the fourth quarter of 2018. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement" and primarily consist of expected future operating margins and cash flows of YFAI, estimated production volumes, weighted average cost of capital (12.5%) and noncontrolling interest discounts.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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