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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________________________________
FORM 10-Q
________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission File Number: 001-38636
________________________________________________
Garrett Motion Inc.
(Exact Name of Registrant as Specified in its Charter)
________________________________________________
Delaware82-4873189
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
La Pièce 16, Rolle, Switzerland
1180
(Address of principal executive offices)(Zip Code)
+41 21 695 30 00
(Registrant’s telephone number, including area code)
N/A
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareGTXThe Nasdaq Stock Market LLC
Series A Cumulative Convertible Preferred Stock, par value $0.001 per shareGTXAPThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No
As of October 21, 2022, the registrant had 64,818,357 shares of Common Stock, $0.001 par value per share, outstanding.



Table of Contents
  Page
 
 
 
 
 
 
1


PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
(Dollars in millions, except per share amounts)
Net sales (Note 3)
$945 $839 $2,705 $2,771 
Cost of goods sold767 676 2,183 2,219 
Gross profit178 163 522 552 
Selling, general and administrative expenses57 60 164 166 
Other expense, net 1  2 1 
Interest expense18 25 61 70 
Loss on extinguishment of debt  5  
Non-operating income
(29)(4)(73)(4)
Reorganization items, net (Note 1)
 (9)2 (130)
Income before taxes
131 91 361 449 
Tax expense (Note 5)
26 28 83 82 
Net income
105 63 278 367 
Less: preferred stock dividend (Note 18)
(40)(36)(117)(60)
Net income available for distribution
$65 $27 $161 $307 
 Earnings per common share
Basic$0.21 $0.09 $0.52 $1.46 
Diluted$0.21 $0.09 $0.52 $1.15 
Weighted average common shares outstanding
Basic64,820,887 65,056,274 64,834,298 70,802,999 
Diluted65,250,287 65,081,343 65,118,021 318,580,250 
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
2



GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
 (Dollars in millions)
Net income
$105 $63 $278 $367 
Foreign exchange translation adjustment10 (6)13 37 
Changes in fair value of effective cash flow hedges, net of tax (Note 16)
9 2 26 7 
Changes in fair value of net investment hedges, net of tax (Note 16)
45 12 87 27 
Total other comprehensive income, net of tax
64 8 126 71 
Comprehensive income
$169 $71 $404 $438 
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
3



GARRETT MOTION INC.
CONSOLIDATED INTERIM BALANCE SHEETS
(Unaudited)
 September 30,
2022
December 31,
2021
 (Dollars in millions)
ASSETS  
Current assets:  
Cash and cash equivalents$159 $423 
Restricted cash2 41 
Accounts, notes and other receivables – net (Note 6)
797 747 
Inventories – net (Note 8)
283 244 
Other current assets130 56 
Total current assets1,371 1,511 
Investments and long-term receivables32 28 
Property, plant and equipment – net419 485 
Goodwill193 193 
Deferred income taxes250 289 
Other assets (Note 9)
338 200 
Total assets$2,603 $2,706 
LIABILITIES
Current liabilities:
Accounts payable$1,001 $1,006 
Current maturities of long-term debt (Note 13)
7 7 
Mandatorily redeemable Series B Preferred Stock (Note 15)
 200 
Accrued liabilities (Note 10)
331 295 
Total current liabilities1,339 1,508 
Long-term debt (Note 13)
1,108 1,181 
Mandatorily redeemable Series B Preferred Stock – long-term (Note 15)
 195 
Deferred income taxes17 21 
Other liabilities (Note 11)
241 269 
Total liabilities$2,705 $3,174 
COMMITMENTS AND CONTINGENCIES (Note 20)
EQUITY (DEFICIT)
Series A Preferred Stock, par value $0.001; 245,390,067 and 245,921,617 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
$ $ 
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 64,925,058 and 64,570,950 issued and 64,818,324 and 64,570,950 outstanding as of September 30, 2022 and December 31, 2021, respectively
  
Additional paid–in capital1,331 1,326 
Retained deficit
(1,555)(1,790)
Accumulated other comprehensive income (loss) (Note 17)
122 (4)
Total deficit(102)(468)
Total liabilities and deficit$2,603 $2,706 
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
4



GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited)
 
  Nine Months Ended September 30,
(Dollars in millions)20222021
Cash flows from operating activities:  
Net income
$278 $367 
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Reorganization items, net (423)
Deferred income taxes16 10 
Depreciation64 70 
Amortization of deferred issuance costs6 5 
Interest payments, net of debt discount accretion(19)18 
Loss on extinguishment of debt5  
Foreign exchange loss
4 7 
Stock compensation expense8 5 
Pension expense
 (1)
Change in fair value of derivatives(54) 
Other2 (3)
Changes in assets and liabilities:
Accounts, notes and other receivables(166)48 
Inventories(80)(59)
Other assets13 40 
Accounts payable180 (161)
Accrued liabilities(2)(19)
Obligations payable to Honeywell (375)
Other liabilities(17)25 
Net cash provided by (used for) operating activities
$238 $(446)
Cash flows from investing activities:
Expenditures for property, plant and equipment(78)(74)
Other 1 
Net cash used for investing activities
$(78)$(73)
Cash flows from financing activities:
Proceeds from issuance of Series A Preferred Stock 1,301 
Proceeds from issuance of long-term debt, net of deferred financing costs 1,221 
Payments of long-term debt(5)(1,513)
Payments of revolving credit facility (370)
Payments of debtor-in-possession financing (200)
Redemption of Series B Preferred stock(381) 
Payments for Cash-Out election (69)
Payments for share repurchases(4) 
Payments for dividends(42) 
Debt financing costs(4)(8)
Net cash (used for) provided by financing activities
$(436)$362 
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(27)(2)
Net decrease in cash, cash equivalents and restricted cash
(303)(159)
Cash, cash equivalents and restricted cash at beginning of the period464 693 
Cash, cash equivalents and restricted cash at end of the period$161 $534 
Supplemental cash flow disclosure:
Income taxes paid (net of refunds)$38 $47 
Interest paid56 42 
Reorganization items paid4 342 
Supplemental disclosure of non-cash investing and financing activities:
Issuance of Series B Preferred Stock 577 
     The Notes to the Consolidated Interim Financial Statements are an integral part of this statement
5



GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT)
(Unaudited)
 Series A
Preferred Stock
Common StockAdditional
Paid-in
Capital
Retained
Deficit
Accumulated Other
Comprehensive
(Loss)/Income
Total
Deficit
 SharesAmountShares Amount
 (in millions)
Balance at December 31, 2020
 $ 76 $ $28 $(2,207)$(129)$(2,308)
Net loss— — — — — (105)— (105)
Other comprehensive income, net of tax— — — — — — 111 111 
Stock-based compensation— — — — 2 — — 2 
Balance at March 31, 2021
  76  $30 $(2,312)$(18)$(2,300)
Net income— — — — — 409 — 409 
Cash-out election— — (11)— — (69)— (69)
Issuance of Series A Preferred Stock248 — — — 1,301 — — 1,301 
Other comprehensive loss, net of tax— — — — — — (48)(48)
Stock-based compensation— — — — 1 — — 1 
Balance at June 30, 2021
248 $ 65 $ $1,332 $(1,972)$(66)$(706)
Net income— — — — — 63 — 63 
Other comprehensive income, net of tax— — — — — — 8 8 
Stock-based compensation— — — — 2 — — 2 
Balance at September 30, 2021
248 $ 65 $ $1,334 $(1,909)$(58)$(633)
Series A
Preferred Stock
Common StockAdditional
Paid-in
Capital
Retained
Deficit
Accumulated Other
Comprehensive
(Loss)/Income
Total
Deficit
SharesAmountSharesAmount
(in millions)
Balance at December 31, 2021
246 $ 64 $ $1,326 $(1,790)$(4)$(468)
Net income
— — — — — 88 — 88 
Share repurchases— — — — (1)(1)— (2)
Other comprehensive income, net of tax
— — — — — — 23 23 
Stock-based compensation— — — — 2 — — 2 
Balance at March 31, 2022
246  64  $1,327 $(1,703)$19 $(357)
Net income
— — — — — 85 — 85 
Share repurchases— — — — (1)— — (1)
Other comprehensive income, net of tax
— — — — — — 39 39 
Stock-based compensation— — — — 3 — — 3 
Balance at June 30, 2022
246 $ 64 $ $1,329 $(1,618)$58 $(231)
Net income
— — — — — 105 — 105 
Share repurchases— — — — (1)— — (1)
Other comprehensive income, net of tax
— — — — — — 64 64 
Dividends declared— — — — — (42)— (42)
Stock-based compensation— — — — 3 — — 3 
Balance at September 30, 2022
246 $ 64 $ $1,331 $(1,555)$122 $(102)
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
6



GARRETT MOTION INC.
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions, except per share amounts)
Note 1. Background and Basis of Presentation
Background
Garrett Motion Inc., (the “Company” or “Garrett”) designs, manufactures and sells highly engineered turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers (“OEMs”) and the global vehicle independent aftermarket, as well as automotive software solutions. These OEMs in turn ship to consumers globally. We are a global technology leader with significant expertise in delivering products across gasoline, diesel, natural gas and electric (hybrid and fuel cell) power trains. These products are key enablers for fuel economy and emission standards compliance.
Basis of Presentation
The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. The unaudited Consolidated Interim Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2021 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 14, 2022 (our “2021 Form 10-K”). The results of operations for the three and nine months ended September 30, 2022 and cash flows for the nine months ended September 30, 2022 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts.
We report our quarterly financial information using a calendar convention: the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday to minimize the potentially disruptive effects of quarterly closing on our business processes. For differences in actual closing dates that are material to year-over-year comparisons of quarterly or year-to-date results have been adjusted for the three months ended September 30, 2022. Our actual closing dates for the three months ended September 30, 2022 and 2021 were October 1, 2022 and October 2, 2021, respectively.
We evaluate segment reporting in accordance with ASC 280, Segment Reporting. We concluded that Garrett operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products across channels and geographies.
The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances, including considerations for the impact of the outbreak of the COVID-19 pandemic on the Company's business due to various global macroeconomic, operational and supply-chain risks as a result of COVID-19. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods.
Voluntary Filing Under Chapter 11
On September 20, 2020 (the “Petition Date”), the Company and certain of its subsidiaries (collectively, the “Debtors”) each filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Debtors’ chapter 11 cases (the “Chapter 11 Cases”) were jointly administered under the caption “In re: Garrett Motion Inc., 20-12212.” On April 20, 2021, the Debtors filed the Revised Amended Plan of Reorganization (the “Plan”). On April 26, 2021, the Bankruptcy Court entered an order among other things, confirming the Plan. On April 30, 2021 (the “Effective Date”), the conditions to the effectiveness of the Plan were satisfied or waived and the Company emerged from bankruptcy (“Emergence”).
7



Emergence from Chapter 11
Upon Emergence or shortly thereafter, amounts recorded as liabilities subject to compromise were either settled, or such amounts have been reinstated to current or non-current liabilities in the Consolidated Interim Balance Sheet, based upon management’s judgment as to the timing for settlement of such claims.
Reorganization items, net represent amounts incurred after the Petition Date as a direct result of the Chapter 11 Cases and are comprised of the following for the three and nine months ended September 30, 2022 and 2021, respectively:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
(Dollars in millions)
Gain on settlement of Honeywell claims(1)
$ $ $ $(502)
Advisor fees (8) 172 
Bid termination and expense reimbursement   79 
Director’s and officers insurance   39 
Expenses related to Senior Notes(2)
   28 
Write off pre-petition debt issuance cost   25 
Employee stock cash out   13 
Debtor in Possession ("DIP") financing fees   1 
Other (1)2 15 
Total reorganization items, net$ $(9)$2 $(130)
(1)     The gain on settlement of Honeywell claims of $502 million is comprised of the pre-emergence Honeywell claims of $1,459 million, less the $375 million payment to Honeywell, less the Series B Preferred Stock issued to Honeywell which was recorded at $577 million, less a currency translation adjustment of $5 million.
(2)     Includes $15 million in connection with a complaint in the Bankruptcy Court against the trustee of the indenture governing the Company's previously-issued 5.125% senior notes due 2026, and $13 million related to post-petition interest thereon. The obligations of the Debtors under the indenture were canceled at Emergence.

Note 2. Summary of Significant Accounting Policies
The accounting policies of the Company are set forth in Note 3 to the Consolidated Financial Statements for the year ended December 31, 2021 included in our 2021 Form 10-K.
Recently Adopted Accounting Pronouncements
In November 2021, the Financial Accounting Standards Board (“FASB”) issued accounting standards update ("ASU") 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. The Company adopted the new guidance as of January 1, 2022. The adoption did not have a material impact on our Consolidated Interim Financial Statements; however, the Company expects to increase its disclosures with respect to government assistance beginning with our Annual Report on Form 10-K for the year ended December 31, 2022.
Recently Issued Accounting Pronouncements
In September 2022, the FASB issued ASU 2022-04, Disclosure of Supplier Finance Program Obligations (Topic 405-50): Disclosure of Supplier Finance Purchase Obligations. The amendment in this update requires companies to disclose key terms of supplier financing programs used in connection with the purchase of goods and services, along with information about their obligations under these programs including a rollforward of those obligations. The guidance is effective for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective on a prospective basis for
8



fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the guidance to determine the impact on its disclosures.
Note 3. Revenue Recognition and Contracts with Customers
Disaggregated Revenue
Net sales by region (determined based on country of shipment) and channel are as follows:
Three Months Ended September 30, 2022
Three Months Ended September 30, 2021
OEMAftermarketOtherTotalOEMAftermarketOtherTotal
(Dollars in millions)
United States$134 $54 $1 $189 $92 $49 $2 $143 
Europe381 41 6 428 348 40 5 393 
Asia288 14 6 308 271 12 6 289 
Other14 6  20 8 6  14 
$817 $115 $13 $945 $719 $107 $13 $839 
Nine Months Ended September 30, 2022
Nine Months Ended September 30, 2021
OEMAftermarketOtherTotalOEMAftermarketOtherTotal
(Dollars in millions)
United States$354 $159 $2 $515 $290 $129 $4 $423 
Europe1,181 117 21 1,319 1,263 117 21 1,401 
Asia765 34 18 817 853 36 20 909 
Other36 18  54 20 18  38 
$2,336 $328 $41 $2,705 $2,426 $300 $45 $2,771 
Contract Balances
The following table summarizes our contract assets and liabilities balances:
 20222021
 (Dollars in millions)
Contract assets—January 1$63 $61 
Contract assets—September 30
51 56 
Change in contract assets—(Decrease)/Increase$(12)$(5)
Contract liabilities—January 1$(5)$(2)
Contract liabilities—September 30
(9)(4)
Change in contract liabilities—(Increase)/Decrease$(4)$(2)

Note 4. Research, Development & Engineering
Garrett conducts research, development and engineering (“RD&E”) activities, which consist primarily of the development of new products and product applications. RD&E costs are charged to expense as incurred unless the Company has a contractual guarantee for reimbursement from the customer. Customer reimbursements are netted against gross RD&E expenditures as they are considered a recovery of cost. Such costs are included in Cost of goods sold as follows:
9



Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
(Dollars in millions)
Research and development costs$38 $33 $112 $99 
Engineering-related expenses4 5 13 16 
$42 $38 $125 $115 
Note 5. Income Taxes
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
(Dollars in millions)
Tax expense$26 $28 $83 $82 
Effective tax rate19.8 %30.8 %23.0 %18.3 %

The effective tax rate for the three months ended September 30, 2022 is lower than the effective tax rate for the three months ended September 30, 2021 primarily related to lower nondeductible expenses in addition to a decrease in withholding taxes on undistributed earnings.

The effective tax rate for the nine months ended September 30, 2022 is higher than the effective rate for the nine months ended September 30, 2021 primarily related to the nontaxable gain recognized in 2021 on the settlement of the Honeywell claims partially offset by nondeductible expenses recorded in the prior period and a decrease in withholding taxes on undistributed earnings.

The effective tax rate for the three months ended September 30, 2022 was lower than the U.S. federal statutory rate of 21% primarily due to a decrease in the withholding taxes on undistributed earnings.

The effective tax rate for the nine months ended September 30, 2022 is higher than the U.S. federal statutory rate of 21% primarily due to tax reserves, partially offset by lower taxes on non-U.S. earnings and the previously mentioned decrease in withholding taxes on undistributed earnings.

The effective tax rate can vary from quarter to quarter due to changes in the Company’s global mix of earnings, the resolution of income tax audits, changes in tax laws (including updated guidance on U.S. tax reform), deductions related to employee share-based payments, internal restructurings, and pension mark-to-market adjustments.

Note 6. Accounts, Notes and Other Receivables—Net

September 30,
2022
December 31,
2021
(Dollars in millions)
Trade receivables
$645 $553 
Notes receivable
85 121 
Other receivables
75 78 
805 752 
Less—Allowance for expected credit losses
(8)(5)
$797 $747 
Trade receivables include $51 million and $63 million of unbilled customer contract asset balances as of September 30, 2022 and December 31, 2021, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. See Note 3, Revenue Recognition and Contracts with Customers.
10



Notes receivable is related to guaranteed bank notes without recourse that the Company receives in settlement of accounts receivables, primarily in the Asia Pacific region. See Note 7, Factoring and Notes Receivable for further information.

Note 7. Factoring and Notes Receivable
The Company enters into arrangements with financial institutions to sell eligible trade receivables. The receivables are sold without recourse and the Company accounts for these arrangements as true sales. The Company also receives guaranteed bank notes without recourse, in settlement of accounts receivables, primarily in the Asia Pacific region. The Company can hold the bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. Bank notes sold to third-party financial institutions without recourse are likewise accounted for as true sales.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(Dollars in millions)
Eligible receivables sold without recourse$112$104$481$437
Guaranteed bank notes sold without recourse35102
The expenses related to the sale of trade receivables and guaranteed bank notes are recognized within Other expense, net in the consolidated interim statements of operations, and were immaterial for the three and nine months ended September 30, 2022.
September 30,
2022
December 31,
2021
(Dollars in millions)
Receivables sold but not yet collected by the bank from the customer$12 $26 
Guaranteed bank notes sold but not yet collected by the bank from the customer1  
As of September 30, 2022 the Company has no guaranteed bank notes pledged as collateral and at December 31, 2021, the Company has pledged as collateral $5 million of guaranteed bank notes, which have not been sold in order to be able to issue bank notes as payment to certain suppliers. Such pledged amounts are included as Notes receivable in our Consolidated Interim Balance Sheet.

Note 8. Inventories—Net
September 30,
2022
December 31,
2021
(Dollars in millions)
Raw materials$203 $162 
Work in process19 19 
Finished products90 92 
 312 273 
Less—Reserves