Investment in Nonconsolidated Affiliates

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment in Nonconsolidated Affiliates

6. Investment in Nonconsolidated Affiliates

During the second quarter of 2022, the Company sold a portion of its investment in KB Autosys Co., Ltd. (KB Autosys) and the Company’s ownership fell below 20%. As a result, the Company no longer has the ability to exercise significant influence over KB Autosys and the equity method of accounting will no longer be used to account for this investment. During the third quarter of 2022, the Company continued to sell shares of this investment resulting in a loss on the sale of $2 million and $3 million and received cash proceeds of $4 million and $5 million during the three and nine months ended September 30, 2022. Non-cash losses of $1 million and $6 million were recognized in “Other income (expense), net” in the condensed consolidated statements of income (loss) during the three and nine months ended September 30, 2022, as a result of the change in accounting to fair value. No other significant changes occurred in the Company’s ownership interests in its nonconsolidated affiliates during the three and nine months ended September 30, 2022.

The carrying amount of the Company’s investments in its nonconsolidated affiliates accounted for under the equity method exceeded its share of the underlying net assets by $182 million and $258 million at September 30, 2022 and December 31, 2021.

The following table is a summary of transactions with the Company’s nonconsolidated affiliates:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net sales	$	19	$	18	$	53	$	58
Purchases	$	92	$	87	$	296	$	310
Royalty and other income (expense)	$	2	$	2	$	7	$	9

The following table is a summary of amounts due to and from the Company’s nonconsolidated affiliates:

	September 30, 2022		December 31, 2021
Receivables	$	13	$	10
Payables and accruals	$	74	$	69