View Filing Data

Print Document View Excel Document

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2020	Jul. 27, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	GTX
Entity Registrant Name	Garrett Motion Inc.
Entity Central Index Key	0001735707
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		75,635,938
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38636
Entity Tax Identification Number	82-4873189
Entity Address, Address Line One	La Pièce 16
Entity Address, City or Town	Rolle
Entity Incorporation, State or Country Code	DE
Entity Address, Country	CH
Entity Address, Postal Zip Code	1180
City Area Code	41 21
Local Phone Number	695 30 00
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock,$0.001 par value per share
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales (Note 3)	$ 477	$ 802	$ 1,222	$ 1,637
Cost of goods sold	393	620	996	1,259
Gross profit	84	182	226	378
Selling, general and administrative expenses	51	58	112	118
Other expense, net (Note 5)	15	17	31	36
Interest expense	20	18	36	34
Non-operating (income) expense	(4)	2	(8)	6
Income before taxes	2	87	55	184
Tax expense (Note 6)	11	21	12	45
Net (loss) income	$ (9)	$ 66	$ 43	$ 139
Earnings (loss) per common share
Basic	$ (0.12)	$ 0.88	$ 0.57	$ 1.87
Diluted	$ (0.12)	$ 0.86	$ 0.57	$ 1.83
Weighted average common shares outstanding
Basic	75,595,991	74,591,478	75,316,827	74,414,450
Diluted	75,845,511	76,900,544	75,837,459	76,129,821

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (9)	$ 66	$ 43	$ 139
Foreign exchange translation adjustment	(50)	(34)	(11)	25
Defined benefit pension plan adjustment, net of tax (Note 18)				1
Changes in fair value of effective cash flow hedges, net of tax (Note 14)	(2)	(1)	(2)	2
Total other comprehensive (loss) income, net of tax	(52)	(35)	(13)	28
Comprehensive (loss) income	$ (61)	$ 31	$ 30	$ 167

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 139	$ 187
Accounts, notes and other receivables – net (Note 7)	554	707
Inventories – net (Note 9)	234	220
Other current assets	77	85
Total current assets	1,004	1,199
Investments and long-term receivables	34	36
Property, plant and equipment – net	457	471
Goodwill	193	193
Deferred income taxes	272	268
Other assets (Note 10)	106	108
Total assets	2,066	2,275
Current liabilities:
Accounts payable	705	1,009
Borrowings under revolving credit facility	135
Current maturities of long-term debt	4	4
Obligations payable to Honeywell, current (Note 17)	37	69
Accrued liabilities (Note 11)	284	310
Total current liabilities	1,165	1,392
Long-term debt	1,403	1,409
Deferred income taxes	35	51
Obligations payable to Honeywell (Note 17)	1,304	1,282
Other liabilities (Note 12)	262	274
Total liabilities	4,169	4,408
COMMITMENTS AND CONTINGENCIES (Note 17)
EQUITY (DEFICIT)
Additional paid-in capital	24	19
Retained earnings	(2,244)	(2,282)
Accumulated other comprehensive income (Note 15)	117	130
Total stockholders' deficit	(2,103)	(2,133)
Total liabilities and stockholders' deficit	$ 2,066	$ 2,275

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares, issued	76,008,388	74,911,139
Common stock, shares, outstanding	75,630,561	74,826,329

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 43	$ 139
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(5)
Depreciation	37	35
Amortization of deferred issuance costs	3	3
Foreign exchange loss	3	11
Stock compensation expense	6	9
Pension expense		3
Other	4	6
Changes in assets and liabilities:
Accounts, notes and other receivables	114	(42)
Inventories	(23)	(26)
Other assets	(11)	14
Accounts payable	(231)	(14)
Accrued liabilities	(16)	(48)
Obligations payable to Honeywell	(8)	(61)
Other liabilities	(11)	8
Net cash (used for) provided by operating activities	(95)	37
Cash flows from investing activities:
Expenditures for property, plant and equipment	(63)	(51)
Other	(1)	18
Net cash used for investing activities	(64)	(33)
Cash flows from financing activities:
Proceeds from revolving credit facility	1,023	300
Payments of revolving credit facility	(904)	(300)
Payments of long-term debt	(2)	(21)
Other	(3)	4
Net cash provided by (used for) financing activities	114	(17)
Effect of foreign exchange rate changes on cash and cash equivalents	(3)	(1)
Net decrease in cash and cash equivalents	(48)	(14)
Cash and cash equivalents at beginning of period	187	196
Cash and cash equivalents at end of period	$ 139	$ 182

CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT) (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Invested Deficit	Accumulated Other Comprehensive Income/(loss)
Beginning balance at Dec. 31, 2018	$ (2,517)		$ 5	$ (2,595)		$ 73
Beginning balance, Shares at Dec. 31, 2018		74
Net income (loss)	73			73	$ 0
Other comprehensive income (loss), net of tax	63					63
Stock-based compensation	5		5
Stock based compensation, Shares		1
Ending balance at Mar. 31, 2019	(2,376)		10	(2,522)		136
Ending balance, Shares at Mar. 31, 2019		75
Beginning balance at Dec. 31, 2018	(2,517)		5	(2,595)		73
Beginning balance, Shares at Dec. 31, 2018		74
Net income (loss)	139
Other comprehensive income (loss), net of tax	28					28
Ending balance at Jun. 30, 2019	(2,341)		14	(2,456)		101
Ending balance, Shares at Jun. 30, 2019		75
Beginning balance at Mar. 31, 2019	(2,376)		10	(2,522)		136
Beginning balance, Shares at Mar. 31, 2019		75
Net income (loss)	66			66
Other comprehensive income (loss), net of tax	(35)					(35)
Stock-based compensation	4		4
Ending balance at Jun. 30, 2019	(2,341)		14	(2,456)		101
Ending balance, Shares at Jun. 30, 2019		75
Beginning balance at Dec. 31, 2019	(2,133)		19	(2,282)		130
Beginning balance, Shares at Dec. 31, 2019		75
Net income (loss)	52			52
Other comprehensive income (loss), net of tax	39					39
Stock-based compensation	2		2
Tax withholding related to vesting of restricted stock units and other	(1)		(1)
Adoption impact of ASU 2016-13, Financial Instruments - Credit Losses	(5)			(5)
Ending balance at Mar. 31, 2020	(2,046)		20	(2,235)		169
Ending balance, Shares at Mar. 31, 2020		75
Beginning balance at Dec. 31, 2019	(2,133)		19	(2,282)		130
Beginning balance, Shares at Dec. 31, 2019		75
Net income (loss)	43
Other comprehensive income (loss), net of tax	(13)					(13)
Ending balance at Jun. 30, 2020	(2,103)		24	(2,244)		117
Ending balance, Shares at Jun. 30, 2020		75
Beginning balance at Mar. 31, 2020	(2,046)		20	(2,235)		169
Beginning balance, Shares at Mar. 31, 2020		75
Net income (loss)	(9)			(9)
Other comprehensive income (loss), net of tax	(52)					(52)
Stock-based compensation	4		4
Ending balance at Jun. 30, 2020	$ (2,103)		$ 24	$ (2,244)		$ 117
Ending balance, Shares at Jun. 30, 2020		75

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Background and Basis of Presentation

6 Months Ended

Jun. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Background and Basis of Presentation

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) powertrains. These products are key enablers for fuel economy and emission standards compliance.

COVID-19

In December 2019, a strain of novel coronavirus disease, COVID-19, was identified in Wuhan, China. This virus has been declared a pandemic and has spread across the world, including throughout Asia, the United States and Europe. Our business operations have been materially disrupted and our revenues have decreased significantly as a result of the COVID-19 pandemic and related response measures, and we expect our financial performance in the quarter ending September 30, 2020, and in future fiscal quarters, to be materially negatively affected by the pandemic and its impact on the global automotive industry.

On June 12, 2020, the Company entered into an amendment (the “2020 Amendment”) to its Credit Agreement, dated as of September 27, 2018 (as amended, the “Credit Agreement”) by and among the Company, Garrett LX I S.à r.l., Garrett LX II S.à r.l., Garrett LX III S.à r.l., Garrett Borrowing LLC, and Garrett Motion Sàrl (f/k/a Honeywell Technologies Sàrl), the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent, consisting of:

•

a seven-year term B loan facility, consisting of a tranche denominated in Euro of €375 million and a tranche denominated in U.S. Dollars of $425 million (the “Term B Facility”);

•

a five-year term A loan facility in an aggregate principal amount of €330 million (the “Term A Facility” and, together with the Term B Facility, the “Term Loan Facilities”); and

•

a five-year revolving credit facility in an aggregate principal amount of €430 million (the “Revolving Facility” and, together with the Term Loan Facilities, the “Senior Credit Facilities”).

The primary purpose for entering into the 2020 Amendment was to obtain covenant relief with respect to the total leverage ratio and interest coverage ratios under the Credit Agreement as a result of the impact of the COVID-19 pandemic and the Company’s leveraged capital structure. The 2020 Amendment provides that the financial maintenance covenants set forth in the Credit Agreement will not apply until the earlier of the occurrence of a Covenant Relief Termination Event (as defined below) and the conclusion of the Relief Period (as defined below) and puts the following financial ratios and tests in place during the Relief Period:

•

Minimum Liquidity: As of the end of each fiscal month, commencing with the fiscal month ending June 30, 2020, the restricted group under the Credit Agreement must have minimum liquidity of not less than: (a) $125 million through, and including, the fiscal month ending March 31, 2021 and (b) $200 million, as of the end of each fiscal month ending thereafter for the remainder of the Relief Period. Liquidity includes available unrestricted cash and amounts available to be drawn under the Revolving Facility.

•

Net Secured Leverage Ratio: As of the end of each fiscal quarter, commencing with fiscal quarter ending June 30, 2020, the ratio of (a)(i) consolidated secured debt minus (ii) the lesser of available unrestricted cash on such day and $100 million to (b) consolidated EBITDA (as defined in the Credit Agreement) over the last twelve months, must not exceed the ratio set out in the table below:


Fiscal Quarter Ending		Consolidated Net Secured Leverage Ratio
June 30, 2020		5.75 to 1.00
September 30, 2020		9.25 to 1.00
December 31, 2020		10.75 to 1.00
March 31, 2021		11.75 to 1.00
June 30, 2021		6.50 to 1.00
September 30, 2021		4.50 to 1.00
December 31, 2021		4.25 to 1.00
March 31, 2022		3.75 to 1.00
June 30, 2022		3.50 to 1.00

•

Maximum Cash: Commencing with the fiscal month ending June 30, 2020, the Company must not permit the average amount of available unrestricted cash of the restricted group under the Credit Agreement based on the balance for each of the last five business days of the fiscal month to exceed $165 million.

Upon the occurrence of a Covenant Relief Termination Event or the conclusion of the Relief Period, the total leverage ratio and interest coverage ratio covenants included in the Credit Agreement will again apply. The minimum liquidity, net secured leverage ratio and maximum cash covenants will no longer apply following the conclusion of the Relief Period.

The “Relief Period” will conclude on the earlier of (a) June 30, 2022 and (b) the date on which the administrative agent receives a certificate from a financial officer of the Company certifying as of such date that (i) the Company is in compliance with the total leverage ratio and interest coverage ratio covenants included in the Credit Agreement as they would apply without giving effect to the Relief Period for the most recently ended period of four consecutive fiscal quarters ended on or prior to such date and (ii) if such date is on or prior to the date of delivery of the Company’s financial statements with respect to the period of four consecutive quarters ending June 30, 2022, based on a financial model provided to the administrative agent, the Company expects in good faith that it will be in compliance with such total leverage ratio and interest coverage ratio covenants as they would apply without giving effect to the Relief Period from the end of the quarter in which such certificate is given until and including the period of four consecutive quarters ending June 30, 2022.

A “Covenant Relief Termination Event” will occur if any member of the restricted group under the Credit Agreement (including Garrett ASASCO Inc. (“Garrett ASASCO”), a wholly owned indirect subsidiary of the Company) makes any payment under the Subordinated Indemnity Agreement but excluding the payment in respect of the second fiscal quarter of 2020. As of the date of this Quarterly Report on Form 10-Q, based on the Company’s current forecasts, we do not anticipate that a Covenant Relief Termination Event will occur prior to 2022.

Each of the Revolving Facility and Term A Facility continues to mature on September 27, 2023, and the Term B Facility continues to mature on September 27, 2025. Pursuant to the 2020 Amendment, (i) the margin applicable to loans under the Term B Facility will increase by 75 basis points through the maturity date and (ii) the margin applicable to loans under the Revolving Facility and Term A Facility will increase by 25 basis points until the Company delivers consolidated financial statements as of and for its first fiscal quarter ending on or after the last day of the Relief Period. In addition, pursuant to the 2020 Amendment, if (a) our corporate family rating by Moody’s is B2 or lower or there is no corporate family rating of the Company by Moody’s and, at the same time, (b) our corporate rating from S&P is B+ or lower or there is no corporate rating of the Company by S&P, then upon the first occurrence of this ratings event the margin applicable to loans under our Senior Credit Facilities will increase by 25 basis points through the maturity date.

The 2020 Amendment also tightened certain of the baskets applicable to our ability to incur additional indebtedness, create liens, and make investments and restricted payments. These increased restrictions will no longer apply following the conclusion of the Relief Period. The 2020 Amendment also modifies the conditions to drawdown under the Revolving Facility and makes certain other changes to the Senior Credit Facilities.

The 2020 Amendment qualified as a debt modification that did not result in an extinguishment or have a material impact on our Consolidated Interim Financial Statements.

Basis of Presentation

The Consolidated Interim Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All amounts presented are in millions, except per share amounts.

Asbestos-related expenses, net of probable insurance recoveries, are presented within Other expense, net in the Consolidated Interim Statement of Operations. Honeywell is subject to certain asbestos-related and environmental-related liabilities, primarily related to its legacy Bendix business. In conjunction with the Spin-Off, certain operations that were part of the Bendix business, along with the ownership of the Bendix trademark, as well as certain operations that were part of other legacy elements of the Business, were transferred to us. The accounting for the majority of our asbestos-related liability payments and accounts payable reflect the terms of the Subordinated Indemnity Agreement with Honeywell entered into on September 12, 2018, under which Garrett ASASCO is required to make payments to Honeywell in amounts equal to 90% of Honeywell’s asbestos-related liability payments and accounts payable, primarily related to the Bendix business in the United States, as well as certain environmental-related liability payments and accounts payable and non-United States asbestos-related liability payments and accounts payable, in each case related to legacy elements of the Business, including the legal costs of defending and resolving such liabilities, less 90% of Honeywell’s net insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities. The Subordinated Indemnity Agreement provides that the agreement will terminate upon the earlier of (x) December 31, 2048 or (y) December 31st of the third consecutive year during which certain amounts owed to Honeywell during each such year were less than $25 million as converted into Euros in accordance with the terms of the agreement. We are currently engaged in litigation against Honeywell in connection with the Subordinated Indemnity Agreement. For additional information, see Note 17, Commitments and Contingencies.

The Consolidated Interim Financial Statements are unaudited; however, in the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. The Consolidated Interim Financial Statements should be read in conjunction with the audited annual Consolidated and Combined Financial Statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K, as filed with the SEC on February 27, 2020 (our “2019 Form 10-K”). The results of operations for the three and six months ended June 30, 2020 and cash flows for the six months ended June 30, 2020 should not necessarily be taken as indicative of the entire year.

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 in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. For differences in actual closing dates that are material to year-over-year comparisons of quarterly or year-to-date results, such differences have been adjusted for the three months ended June 30, 2020. Our actual closing dates for the three months ended June 30, 2020 and 2019 were June 27, 2020 and June 29, 2019, respectively.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

The accounting policies of the Company are set forth in Note 2 to the audited annual Consolidated and Combined Financial Statements for the year ended December 31, 2019 included in our 2019 Form 10-K. We include herein certain updates to those policies.

Trade Receivables and Allowance for Doubtful Accounts—Trade accounts receivable are recorded at the invoiced amount as a result of transactions with customers. Garrett maintains allowances for doubtful accounts for estimated losses as a result of a customer’s inability to make required payments. As of January 1, 2020, Garrett adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance requires an entity to recognize as an allowance its estimate of lifetime expected credit losses rather than incurred losses. The guidance is also applicable to contract assets such as unbilled receivables. Consistent with the new guidance, Garrett estimates losses from doubtful accounts expected over the contractual life of the receivables based on days past due as measured from the contractual due date and collection history. Garrett also takes into consideration changes in economic conditions that may not be reflected in historical trends (for example, customers in bankruptcy, liquidation or reorganization). Receivables are written-off against the allowance for doubtful accounts when they are determined uncollectible. Such determination includes analysis and consideration of the particular conditions of the account, including time intervals since last collection, customer performance against agreed upon payment plans, solvency of customer and any bankruptcy proceedings.

Recently Adopted Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which amends certain disclosure requirements related to fair value measures. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Effective January 1, 2020, the Company adopted the new guidance. The adoption did not have an impact on our Consolidated Interim Balance Sheets, Consolidated Interim Statements of Operations and related Notes to the Consolidated Interim Financial Statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. Adoption of the new standard resulted in an increase in the allowance for doubtful accounts of $5 million which was recognized as a cumulative-effect adjustment to opening retained earnings as of January 1, 2020.

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits Defined Benefit Plans – General (Subtopic 715-20), which amends certain disclosure requirements related to the defined benefit pension and other postretirement plans. The guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the impact on its disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact on our hedging relationships, other transactions, and disclosures.

Revenue Recognition and Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition and Contracts with Customers

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 June 30, 2020
	OEM		Aftermarket		Other		Total
United States	$	33	$	32	$	1	$	66
Europe		160		22		6		188
Asia		202		11		5		218
Other International		—		5		—		5
	$	395	$	70	$	12	$	477

	Six months ended June 30, 2020
	OEM		Aftermarket		Other		Total
United States	$	125	$	72	$	1	$	198
Europe		554		52		15		621
Asia		361		19		11		391
Other International		3		9		—		12
	$	1,043	$	152	$	27	$	1,222

	Three months ended June 30, 2019
	OEM		Aftermarket		Other		Total
United States	$	77	$	49	$	2	$	128
Europe		416		31		8		455
Asia		190		13		7		210
Other International		4		5		—		9
	$	687	$	98	$	17	$	802

	Six months ended June 30, 2019
	OEM		Aftermarket		Other		Total
United States	$	160	$	94	$	3	$	257
Europe		845		68		20		933
Asia		389		26		14		429
Other International		8		10		—		18
	$	1,402	$	198	$	37	$	1,637

Contract Balances

The following table summarizes our contract assets and liabilities balances:

	2020
Contract assets—January 1	$	6
Contract assets—June 30		32
Change in contract assets—Increase/(Decrease)		26
Contract liabilities—January 1	$	(3	)
Contract liabilities—June 30		(3	)
Change in contract liabilities—(Increase)/Decrease	$	—

Research, Development & Engineering

6 Months Ended

Jun. 30, 2020

Research And Development [Abstract]

Research, Development & Engineering

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:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development costs	$	25	$	29	$	52	$	61
Engineering-related expenses		3		1		7		4
	$	28	$	30	$	59	$	65

Other Expense, Net

6 Months Ended

Jun. 30, 2020

Other Income And Expenses [Abstract]

Other Expense, Net

Note 5. Other Expense, Net

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Indemnification related — post Spin-Off	$	12	$	17	$	27	$	36
Indemnification related — litigation		2		—		3		—
Factoring and notes receivables discount fees		1		—		1		—
	$	15	$	17	$	31	$	36

Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 6. Income Taxes

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in millions)
Tax expense	$	11		$	21		$	12		$	45
Effective tax rate		550	%		24.1	%		21.8	%		24.5	%

For the period ended June 30, 2020 the Company computed its effective tax rate using actual year to date information rather than a full year forecast to compute an annual effective tax rate. Based on current forecasts which take into account a range of potential impacts from COVID-19, the Company’s effective tax rate is expected to be highly sensitive to changes in earnings because of non-deductible asbestos related expenses which have no correlation to earnings. Accordingly, the Company concluded that computing its effective tax rate using year to date actual results is its best estimate of tax expense for the period ended June 30, 2020.

The effective tax rate for the three months ended June 30, 2020 is significantly higher than the effective tax rate for the three months ended June 30, 2019 primarily because of substantially lower earnings due to the adverse economic impacts of COVID-19 and, to a lesser extent, an increase in tax reserves.

The effective tax rate for the six months ended June 30, 2020 is lower than the effective tax rate for the six months ended June 30, 2019 because of a decrease in withholding taxes related to undistributed earnings, partially offset by the impacts of lower earnings.

The effective tax rate for the three months ended June 30, 2020 was higher than the U.S. federal statutory rate of 21% primarily due to lower earnings, the impacts of non-deductible asbestos related expenses which have no correlation to earnings and tax reserves.

The effective tax rate for the three months ended June 30, 2019 was higher than the U.S. federal statutory rate of 21% primarily due to non-deductible asbestos related expenses, withholding taxes on current year earnings and tax reserves, partially offset by non-U.S. earnings taxed at lower rates.

The effective tax rate can vary from quarter to quarter due to changes in the Company’s global mix of earnings, impacts of Covid-19, 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.

In connection with the global outbreak of COVID-19, many countries have enacted legislation to provide various forms of emergency economic relief, including the CARES Act in the United States, that may provide financial benefits to the Company. At this time, we do not expect such benefits to have a material impact to the Company.

Accounts, Notes and Other Receivables—Net

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Accounts, Notes and Other Receivables—Net

Note 7. Accounts, Notes and Other Receivables—Net

	June 30, 2020			December 31, 2019
Trade receivables	$	438		$	574
Notes receivables		55			68
Other receivables		70			69
	$	563		$	711
Less—Allowance for doubtful accounts		(9	)		(4	)
	$	554		$	707

Trade Receivables include $32 million and $4 million of unbilled balances as of June 30, 2020 and December 31, 2019, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. Unbilled receivables include $32 million and $6 million of contract assets as of June 30, 2020 and December 31, 2019, respectively. See Note 3, Revenue Recognition and Contracts with Customers.

Factoring and Notes Receivable

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Factoring and Notes Receivable

Note 8. Factoring and Notes Receivable

The Company entered into arrangements with financial institutions to sell eligible trade receivable. During the periods ended June 30, 2020 and December 31, 2019, the Company sold $66 and $27 million of eligible receivables, respectively, without recourse, and accounted for these arrangements as true sales.

The Company also received 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. During the periods ended June 30, 2020 and December 31, 2019, the Company sold $47 and $105 million of bank notes, respectively, without recourse, and accounted for these as true sales.

Inventories-Net

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventories-Net

Note 9. Inventories—Net

	June 30, 2020			December 31, 2019
Raw materials	$	158		$	142
Work in process		22			18
Finished products		83			85
	$	263		$	245
Less—Reserves		(29	)		(25	)
	$	234		$	220

Other Assets

6 Months Ended

Jun. 30, 2020

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Other Assets

Note 10. Other Assets

	June 30,		December 31,
	2020		2019
Advanced discounts to customers, non-current	$	61	$	62
Operating right-of-use assets (Note 13)		34		35
Undesignated cross-currency swap at fair value		1		—
Other		10		11
	$	106	$	108

Accrued Liabilities

6 Months Ended

Jun. 30, 2020

Accrued Liabilities Current [Abstract]

Accrued Liabilities

Note 11. Accrued Liabilities

	June 30, 2020		December 31, 2019
Customer pricing reserve	$	88	$	90
Compensation, benefit and other employee related		62		64
Repositioning		6		4
Product warranties and performance guarantees		25		29
Taxes		23		33
Advanced discounts from suppliers, current		19		19
Customer advances and deferred income^(a)		18		12
Accrued interest		5		5
Short-term lease liability (Note 13)		8		8
Other (primarily operating expenses)		30		46
	$	284	$	310

(a)	Customer advances and deferred income include $2 million and $3 million of contract liabilities as of June 30, 2020 and December 31, 2019, respectively. See Note 3, Revenue Recognition and Contracts with Customers.

The Company accrued repositioning costs related to projects to optimize its product costs and right-size its organizational structure. Expenses related to the repositioning accruals are included in Cost of goods sold in our Consolidated Interim Statements of Operations.

	Severance Costs			Exit Costs			Total
Balance at December 31, 2018	$	13		$	2		$	15
Charges		3			—			3
Usage—cash		(6	)		(2	)		(8	)
Adjustments and reclassifications		(6	)		1			(5	)
Foreign currency translation		—			—			—
Balance at June 30, 2019	$	4		$	1		$	5

	Severance Costs			Exit Costs		Total
Balance at December 31, 2019	$	3		$	1	$	4
Charges		6			—		6
Usage—cash		(4	)		—		(4	)
Adjustments and reclassifications		—			—		—
Foreign currency translation		—			—		—
Balance at June 30, 2020	$	5		$	1	$	6

Other Liabilities

6 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Other Liabilities

Note 12. Other Liabilities

	June 30,		December 31,
	2020		2019
Pension and other employee related	$	93	$	94
Advanced discounts from suppliers		37		46
Uncertain tax positions		80		79
Long-term lease liability (Note 13)		27		28
Other		25		27
	$	262	$	274

Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Note 13. Leases

We have operating leases for real estate and machinery and equipment. Our leases have remaining lease terms of up to 11 years, some of which include options to extend the leases for up to two years, and some of which include options to terminate the leases within the year.

The components of lease expense are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	3	$	3	$	6	$	6

Supplemental cash flow information related to operating leases is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3	$	3	$	5	$	6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5	$	3	$	5	$	8

Supplemental balance sheet information related to operating leases is as follows:

	June 30, 2020		December 31, 2019
Other assets	$	34	$	35
Accrued liabilities		8		8
Other liabilities		27		28

	June 30, 2020	December 31, 2019
Weighted-average lease term	5.83	6.30
Weighted-average discount rate	6.23	6.36

Maturities of operating lease liabilities were as follows:

	June 30, 2020
2020	$	5
2021		8
2022		7
2023		6
2024		5
Thereafter		11
Total lease payments		42
Less imputed interest		(7	)
	$	35

Financial Instruments and Fair Value Measures

6 Months Ended

Jun. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Financial Instruments and Fair Value Measures

Note 14. Financial Instruments and Fair Value Measures

Our credit, market and foreign currency risk management policies are described in Note 18, Financial Instruments and Fair Value Measures, of the notes to the audited annual Consolidated Financial Statements for the year ended December 31, 2019 included in our 2019 Form 10-K. At June 30, 2020 and December 31, 2019, we had contracts with aggregate gross notional amounts of $1,399 million and $1,820 million, respectively, to limit interest rate risk and to exchange foreign currencies, principally the U.S. Dollar, Swiss Franc, Euro, Chinese Yuan, Japanese Yen, Mexican Peso, New Romanian Leu, Czech Koruna, Australian Dollar and Korean Won.

Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2020 and December 31, 2019:

					Fair Value
	Notional Amounts				Assets					Liabilities
	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019			June 30, 2020		December 31, 2019
Designated forward currency exchange contracts	$	286	$	392	$	4	$	5	^(a)	$	1	$	1	^(b)
Undesignated instruments:
Undesignated cross-currency swap		418		420		1		—	^(c)		—		1	^(d)
Undesignated interest rate swap		471		561		—		—			2		1	^(d)
Undesignated forward currency exchange contracts		224		447		2		2	^(a)		—		3	^(b)
	$	1,399	$	1,820	$	7	$	7		$	3	$	6

(a)

Recorded within Other current assets in the Company’s Consolidated Interim Balance Sheets

(b)

Recorded within Accrued liabilities in the Company’s Consolidated Interim Balance Sheets

(c)

Recorded within Other assets in the Company’s Consolidated Interim Balance Sheets

(d)

Recorded within Other liabilities in the Company´s Consolidated Interim Balance Sheets

The foreign currency exchange, interest rate swap and cross-currency swap contracts are valued using market observable inputs. As such, these derivative instruments are classified within Level 2. The assumptions used in measuring fair value of the cross-currency swap are considered Level 2 inputs, which are based upon market observable interest rate curves, cross currency basis curves, credit default swap curves, and foreign exchange rates.

The carrying value of Cash and cash equivalents, Account receivables, Notes and Other receivables, and Account payables contained in the Consolidated Balance Sheets approximates fair value.

The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:

	June 30, 2020
	Carrying Value		Fair Value
Long-term debt and related current maturities	$	1,407	$	1,309

The Company determined the fair value of certain of its long-term debt and related current maturities utilizing transactions in the listed markets for similar liabilities. As such, the fair value of the long-term debt and related current maturities is considered Level 2.

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 15. Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income (Loss) by Component

	Foreign Exchange Translation Adjustment		Changes in Fair Value of Effective Cash Flow Hedges		Pension Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2018	$	86	$	—	$	(13	)	$	73
Other comprehensive income (loss) before reclassifications		25		2		—			27
Amounts reclassified from accumulated other comprehensive income (loss)		—		—		1			1
Net current period other comprehensive income (loss)		25		2		1			28
Balance at June 30, 2019	$	111	$	2	$	(12	)	$	101

	Foreign Exchange Translation Adjustment			Changes in Fair Value of Effective Cash Flow Hedges			Pension Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2019	$	153		$	4		$	(27	)	$	130
Other comprehensive income (loss) before reclassifications		(11	)		(2	)		—			(13	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			—			—			—
Net current period other comprehensive income (loss)		(11	)		(2	)					(13	)
Balance at June 30, 2020	$	142		$	2		$	(27	)	$	117

Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Note 16. Earnings Per Share

The details of the earnings per share (“EPS”) calculations for the three and six months ended June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020		2019
Basic
Net (loss) Income	$	(9	)	$	66	$	43	$	139
Weighted average common shares outstanding		75,595,991			74,591,478		75,316,827		74,414,450
EPS – Basic	$	(0.12	)	$	0.88	$	0.57	$	1.87

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020		2019
Diluted
Net (loss) Income	$	(9	)	$	66	$	43	$	139
Weighted average common shares outstanding – Basic		75,595,991			74,591,478		75,316,827		74,414,450
Dilutive effect of unvested RSUs and other contingently issuable shares		249,520			2,309,066		520,632		1,715,371
Weighted average common shares outstanding – Diluted		75,845,511			76,900,544		75,837,459		76,129,821
EPS – Diluted	$	(0.12	)	$	0.86	$	0.57	$	1.83

Diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period.

The diluted earnings per share calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the three and six months ended June 30, 2020, the weighted number of stock options excluded from the computations was 437,333 and 439,649, respectively. These stock options were outstanding for the three and six months ended June 30, 2020, respectively.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 17. Commitments and Contingencies

Obligations payable to Honeywell

Honeywell is a defendant in asbestos-related personal injury actions mainly related to its legacy Bendix friction materials (“Bendix”) business. The Bendix business manufactured automotive brake linings that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. Certain operations that were part of the Bendix business were transferred to Garrett.

In connection with the Spin-Off, Garrett ASASCO, a wholly owned indirect subsidiary of the Company, entered into the Subordinated Indemnity Agreement with Honeywell on September 12, 2018. As of the Spin-Off date of October 1, 2018, Garrett ASASCO is obligated to make payments to Honeywell in amounts equal to 90% of Honeywell’s asbestos-related liability payments and accounts payable, primarily related to the Bendix business in the United States, as well as certain environmental-related liability payments and accounts payable and non-United States asbestos-related liability payments and accounts payable, in each case related to legacy elements of the Business, including the legal costs of defending and resolving such liabilities, less 90% of Honeywell’s net insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities. Pursuant to the terms of this Subordinated Indemnity Agreement, Garrett ASASCO is responsible for paying to Honeywell such amounts, up to a cap of an amount equal to the Euro-to-U.S. dollar exchange rate determined by Honeywell as of a date within two business days prior to the date of the Distribution (1.16977 USD = 1 EUR) equivalent of $175 million in respect of such liabilities arising in any given calendar year. The payments that Garrett ASASCO is required to make to Honeywell pursuant to the terms of the Subordinated Indemnity Agreement will not be deductible for U.S. federal income tax purposes. The Subordinated Indemnity Agreement provides that the agreement will terminate upon the earlier of (x) December 31, 2048 or (y) December 31st of the third consecutive year during which certain amounts owed to Honeywell during each such year were less than $25 million as converted into Euros in accordance with the terms of the agreement. During the first quarter of 2020, Garrett ASASCO paid Honeywell the Euro-equivalent of $35 million in connection with the Subordinated Indemnity Agreement. Honeywell and Garrett agreed to defer the payment under the Subordinated Indemnity Agreement due May 1, 2020 to December 31, 2020 (the “Q2 Payment”). As of the date of this Quarterly Report on Form 10-Q, we do not anticipate that Garrett ASASCO will make any additional payments under the Subordinated Indemnity Agreement, other than the Q2 Payment, prior to 2022, in accordance with the payment deferral mechanism contained in the Subordinated Indemnity Agreement, which is described in additional detail in our 2019 Form 10-K. In accordance with the Subordinated Indemnity Agreement, we anticipate that the deferred payments will be partially settled on April 30, 2023, up to the available capacity to make such payments under the Credit Agreement , assuming we remain in compliance with the financial maintenance covenants in the Credit Agreement at that time. We expect to pay the remaining balance of deferred amounts from 2023 onwards. These amounts do not reflect any increases to the aggregate amount owed to Honeywell.

In conjunction with the 2020 Amendment, on June 12, 2020, Garrett ASASCO entered into an amendment (the “Subordinated Indemnity Amendment”) to the Subordinated Indemnity Agreement. The Subordinated Indemnity Amendment:

•

Amends the negative covenants contained in Exhibit L of the Subordinated Indemnity Agreement to reflect amendments made by the 2020 Amendment to the corresponding negative covenants in the Credit Agreement; and

•

Modifies the Subordinated Indemnity Agreement such that we may not agree to an amendment or waiver of (i) the minimum liquidity, net secured leverage ratio and maximum cash covenants under the Credit Agreement as amended by the 2020 Amendment that would make those covenants more restrictive to us and (ii) during the Relief Period, the additional drawdown condition for revolving borrowings, in each case, without the prior written consent of Honeywell.

On December 2, 2019, the Company and its subsidiary Garrett ASASCO, filed a Summons with Notice in the Commercial Division of the Supreme Court of the State of New York, County of New York (the “NY Supreme Court”) commencing an action (the “Action”) against Honeywell, certain of Honeywell’s subsidiaries and certain of Honeywell’s employees for declaratory judgment, breach of contract, breach of fiduciary duties, aiding and abetting breach of fiduciary duties, corporate waste, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. On January 15, 2020, the Company and Garrett ASASCO, filed a Complaint in the NY Supreme Court in connection with the Action. The lawsuit arises from the Subordinated Indemnity Agreement. The Company is seeking declaratory relief; compensatory damages in an amount to be determined at trial; rescission of the Subordinated Indemnity Agreement; attorneys’ fees and costs and such other and further relief as the Court may deem just and proper. There can be no assurance as to the time and resources that will be required to pursue these claims or the ultimate outcome of the lawsuit. Among other claims, Garrett asserts that Honeywell is not entitled to indemnification because it improperly seeks indemnification for amounts attributable to punitive damages and intentional misconduct, and because it has failed to establish other prerequisites for indemnification under New York law. Specifically, the claim asserts that Honeywell has failed to establish its right to indemnity for each and every asbestos settlement of the thousands for which it seeks indemnification. The Action seeks to establish that the Subordinated Indemnity Agreement is not enforceable, in whole or in part. On March 5, 2020, Honeywell filed a “Notice of Motion to Dismiss Garrett’s Complaint.” On June 18, 2020, by agreement of the parties, Honeywell withdrew its motion to dismiss and Garrett agreed to file an amended complaint on September 15, 2020.

On September 12, 2018, we also entered into a Tax Matters Agreement with Honeywell (the “Tax Matters Agreement”), which governs the respective rights, responsibilities and obligations of Honeywell and us after the Spin-Off with respect to all tax matters (including tax liabilities, tax attributes, tax returns and tax contests). The Tax Matters Agreement generally provides that, following the Spin-Off date of October 1, 2018, we are responsible and will indemnify Honeywell for all taxes, including income taxes, sales taxes, value-added and payroll taxes, relating to Garrett for all periods, including periods prior to the completion date of the Spin-Off. Among other items, as a result of the mandatory transition tax imposed by the Tax Cuts and Jobs Act, Garrett ASASCO is required to make payments to a subsidiary of Honeywell in the amount representing the net tax liability of Honeywell under the mandatory transition tax attributable to us, as determined by Honeywell. We estimate that Garrett ASASCO’s total aggregate payments to Honeywell with respect to the mandatory transition tax will be $240 million with $193 million in payments remaining as of June 30, 2020. Under the terms of the Tax Matters Agreement, Garrett ASASCO is required to pay this amount in Euros, without interest, in five annual installments, each equal to 8% of the aggregate amount, followed by three additional annual installments equal to 15%, 20% and 25% of the aggregate amount, respectively. Following the Spin-Off in October 2018, Garrett ASASCO paid the first annual installment in October 2018, with subsequent annual installments to be paid in April of each year. The annual installment due on April 1, 2020 has been deferred to December 31, 2020 in agreement with Honeywell.

In addition, the Tax Matters Agreement addresses the allocation of liability for taxes incurred as a result of restructuring activities undertaken to effectuate the Spin-Off. The Tax Matters Agreement also provides that we are required to indemnify Honeywell for certain taxes (and reasonable expenses) resulting from the failure of the Spin-Off and related internal transactions to qualify for their intended tax treatment under U.S. federal, state and local income tax law, as well as foreign tax law. Further, the Tax Matters Agreement also imposes certain restrictions on us and our subsidiaries (including restrictions on share issuances, redemptions or repurchases, business combinations, sales of assets and similar transactions) that are designed to address compliance with Section 355 of the Internal Revenue Code of 1986, as amended, and are intended to preserve the tax-free nature of the Spin-Off.

On July 17, 2020, we provided notice to Honeywell asserting that Honeywell has caused material breaches of the Tax Matters Agreement and that the Tax Matters Agreement is unenforceable.

The following table summarizes our Obligation payable to Honeywell related to these agreements:

	Six Months Ended June 30, 2020
	Asbestos and environmental			Tax Matters		Total
Beginning of year	$	1,090		$	261	$	1,351
Accrual for update to estimated liability		—			—		—
Legal fees expensed		27			—		27
Payments to Honeywell		(35	)		—		(35	)
Currency translation adjustment		(2	)		—		(2	)
End of period	$	1,080		$	261	$	1,341

Current		—			37		37
Non-current		1,080			224		1,304
Total	$	1,080		$	261	$	1,341

Asbestos Matters

The accounting for the majority of our asbestos-related liability payments and accounts payable reflect the terms of the Subordinated Indemnity Agreement with Honeywell entered into by Garrett ASASCO on September 12, 2018, under which Garrett ASASCO is required to make payments to Honeywell in amounts equal to 90% of Honeywell’s asbestos-related liability payments and accounts payable, primarily related to the Bendix business in the United States, as well as certain environmental-related liability payments and accounts payable and non-United States asbestos-related liability payments and accounts payable, in each case related to legacy elements of the Business, including the legal costs of defending and resolving such liabilities, less 90% of Honeywell’s net insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities. The Subordinated Indemnity Agreement provides that the agreement will terminate upon the earlier of (x) December 31, 2048 or (y) December 31st of the third consecutive year during which certain amounts owed to Honeywell during each such year were less than $25 million as converted into Euros in accordance with the terms of the agreement.

The following tables present information regarding Bendix related asbestos claims activity:

	Six Months Ended June 30,			Year Ended December 31,
Claims Activity	2020			2019
Claims Unresolved at the beginning of the period		6,480			6,209
Claims Filed		1,013			2,659
Claims Resolved		(1,195	)		(2,388	)
Claims Unresolved at the end of the period		6,298			6,480

	Six Months Ended June 30,		Years Ended December 31,
Disease Distribution of Unresolved Claims	2020		2019
Mesothelioma and Other Cancer Claims		3,278		3,399
Nonmalignant Claims		3,020		3,081
Total Claims		6,298		6,480

Honeywell has experienced average resolutions per claim excluding legal costs as follows:

	Years Ended December 31,
	2019		2018		2017		2016
					(in whole dollars)
Malignant claims	$	50,200	$	55,300	$	56,000	$	44,000
Nonmalignant claims	$	3,900	$	4,700	$	2,800	$	4,485

It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future.

Other Matters

We are subject to other lawsuits, investigations and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. To date, no such matters are material to the Consolidated Interim Statements of Operations.

Pension Benefits

6 Months Ended

Jun. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Pension Benefits

Note 18. Pension Benefits

We sponsor several funded U.S. and non-U.S. defined benefit pension plans. Significant plans outside of the U.S. are in Switzerland and Ireland. Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate.

Our general funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. We are not required to make any contributions to our U.S. pension plan in 2020. We expect to make contributions of cash and/or marketable securities of approximately $7 million to our non-U.S. pension plans to satisfy regulatory funding standards in 2020, of which $3 million has been contributed through the first six months of the year.

Net periodic benefit costs for our significant defined benefit plans include the following components:

	Three Months Ended June 30,										Six Months Ended June 30,
	U.S. Plans					Non-U.S. Plan,					U.S. Plans						Non-U.S. Plan,
	2020			2019		2020			2019		2020			2019			2020			2019
Service cost	$	—		$	—	$	2		$	1	$	1		$	—		$	5		$	2
Interest cost		1			—		—			—		3			1			1			1
Expected return on plan assets		(3	)		—		(1	)		—		(5	)		(1	)		(3	)		(1	)
Amortization of prior service (credit)		—			—		—			—		—			—			—			—
	$	(2	)	$	—	$	1		$	1	$	(1	)	$	—		$	3		$	2

For both our U.S. and non-U.S. defined benefit pension plans, we estimate the service and interest cost components of net period benefit (income) cost by utilizing a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows. This approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates.

China Variable Interest Entity

6 Months Ended

Jun. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

China Variable Interest Entity

Note 19. China Variable Interest Entity

On September 20, 2018 in preparation of the Spin-Off, we entered into an agreement by and between Honeywell and Garrett (the “China Purchase Agreement”) in which Honeywell agreed to sell to Garrett 100% of the equity interests of Honeywell Transportation Investment (China) Co., Ltd. (“Garrett China”) consisting of our primary operations in China, in exchange for upfront consideration of 8,444,077 shares of our common stock. No further consideration from Garrett was due. The China Purchase Agreement was amended to extend the date of the transfer of the equity interests in Garrett China from September 20, 2019 to June 30, 2020.

Prior to the transfer of the equity interests, Garrett China was considered a variable interest entity for which Garrett is the primary beneficiary because the China Purchase Agreement provided Garrett control to direct the management and operation of Garrett China as well as all economic benefits and losses. The intent of the agreement was to place Garrett in the same position as if it already owned 100% of the equity interests of Garrett China. As the agreement was effective prior to the Spin-Off date while the Company and Garrett China were under common control of Honeywell, the assets and liabilities of Garrett China were recognized at their carrying amounts.

On June 3, 2020 Honeywell transferred 100% of the equity interests of Garrett China in accordance with the China Purchase Agreement. Following the transfer, Garret continues to consolidate Garrett China. However, Garrett China is no longer considered to be a variable interest entity as Garrett now owns 100% of the equity interests. There was no change in the basis of the net assets of Garrett China as the transaction did not result in a change of control under U.S. GAAP.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Trade Receivables and Allowance for Doubtful Accounts	Trade Receivables and Allowance for Doubtful Accounts—Trade accounts receivable are recorded at the invoiced amount as a result of transactions with customers. Garrett maintains allowances for doubtful accounts for estimated losses as a result of a customer’s inability to make required payments. As of January 1, 2020, Garrett adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance requires an entity to recognize as an allowance its estimate of lifetime expected credit losses rather than incurred losses. The guidance is also applicable to contract assets such as unbilled receivables. Consistent with the new guidance, Garrett estimates losses from doubtful accounts expected over the contractual life of the receivables based on days past due as measured from the contractual due date and collection history. Garrett also takes into consideration changes in economic conditions that may not be reflected in historical trends (for example, customers in bankruptcy, liquidation or reorganization). Receivables are written-off against the allowance for doubtful accounts when they are determined uncollectible. Such determination includes analysis and consideration of the particular conditions of the account, including time intervals since last collection, customer performance against agreed upon payment plans, solvency of customer and any bankruptcy proceedings.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which amends certain disclosure requirements related to fair value measures. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Effective January 1, 2020, the Company adopted the new guidance. The adoption did not have an impact on our Consolidated Interim Balance Sheets, Consolidated Interim Statements of Operations and related Notes to the Consolidated Interim Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. Adoption of the new standard resulted in an increase in the allowance for doubtful accounts of $5 million which was recognized as a cumulative-effect adjustment to opening retained earnings as of January 1, 2020.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits Defined Benefit Plans – General (Subtopic 715-20), which amends certain disclosure requirements related to the defined benefit pension and other postretirement plans. The guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted. The Company is currently evaluating the impact on its disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact on our hedging relationships, other transactions, and disclosures.

Background and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Consolidated Net Secured Leverage Ratio

•


Fiscal Quarter Ending		Consolidated Net Secured Leverage Ratio
June 30, 2020		5.75 to 1.00
September 30, 2020		9.25 to 1.00
December 31, 2020		10.75 to 1.00
March 31, 2021		11.75 to 1.00
June 30, 2021		6.50 to 1.00
September 30, 2021		4.50 to 1.00
December 31, 2021		4.25 to 1.00
March 31, 2022		3.75 to 1.00
June 30, 2022		3.50 to 1.00

Revenue Recognition and Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Summary of Net Sales by Region and Channel

Net sales by region (determined based on country of shipment) and channel are as follows:

	Three months ended June 30, 2020
	OEM		Aftermarket		Other		Total
United States	$	33	$	32	$	1	$	66
Europe		160		22		6		188
Asia		202		11		5		218
Other International		—		5		—		5
	$	395	$	70	$	12	$	477

	Six months ended June 30, 2020
	OEM		Aftermarket		Other		Total
United States	$	125	$	72	$	1	$	198
Europe		554		52		15		621
Asia		361		19		11		391
Other International		3		9		—		12
	$	1,043	$	152	$	27	$	1,222

	Three months ended June 30, 2019
	OEM		Aftermarket		Other		Total
United States	$	77	$	49	$	2	$	128
Europe		416		31		8		455
Asia		190		13		7		210
Other International		4		5		—		9
	$	687	$	98	$	17	$	802

	Six months ended June 30, 2019
	OEM		Aftermarket		Other		Total
United States	$	160	$	94	$	3	$	257
Europe		845		68		20		933
Asia		389		26		14		429
Other International		8		10		—		18
	$	1,402	$	198	$	37	$	1,637

Summary of Contract Assets and Liabilities

The following table summarizes our contract assets and liabilities balances:

	2020
Contract assets—January 1	$	6
Contract assets—June 30		32
Change in contract assets—Increase/(Decrease)		26
Contract liabilities—January 1	$	(3	)
Contract liabilities—June 30		(3	)
Change in contract liabilities—(Increase)/Decrease	$	—

Research, Development & Engineering (Tables)

6 Months Ended

Jun. 30, 2020

Research And Development [Abstract]

Summary of Research, Development & Engineering Activities

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Research and development costs	$	25	$	29	$	52	$	61
Engineering-related expenses		3		1		7		4
	$	28	$	30	$	59	$	65

Other Expenses, Net (Tables)

6 Months Ended

Jun. 30, 2020

Other Income And Expenses [Abstract]

Schedule of Other Operating Cost and Expense

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Indemnification related — post Spin-Off	$	12	$	17	$	27	$	36
Indemnification related — litigation		2		—		3		—
Factoring and notes receivables discount fees		1		—		1		—
	$	15	$	17	$	31	$	36

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Tax Expense (Benefit) and Effective Tax Rate

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in millions)
Tax expense	$	11		$	21		$	12		$	45
Effective tax rate		550	%		24.1	%		21.8	%		24.5	%

Accounts, Notes and Other Receivables—Net (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of Accounts, Notes and Other Receivables Net

	June 30, 2020			December 31, 2019
Trade receivables	$	438		$	574
Notes receivables		55			68
Other receivables		70			69
	$	563		$	711
Less—Allowance for doubtful accounts		(9	)		(4	)
	$	554		$	707

Inventories-Net (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Summary of Inventories

	June 30, 2020			December 31, 2019
Raw materials	$	158		$	142
Work in process		22			18
Finished products		83			85
	$	263		$	245
Less—Reserves		(29	)		(25	)
	$	234		$	220

Other Assets (Tables)

6 Months Ended

Jun. 30, 2020

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Schedule of Other Assets

	June 30,		December 31,
	2020		2019
Advanced discounts to customers, non-current	$	61	$	62
Operating right-of-use assets (Note 13)		34		35
Undesignated cross-currency swap at fair value		1		—
Other		10		11
	$	106	$	108

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Accrued Liabilities Current [Abstract]

Summary of Accrued Liabilities

	June 30, 2020		December 31, 2019
Customer pricing reserve	$	88	$	90
Compensation, benefit and other employee related		62		64
Repositioning		6		4
Product warranties and performance guarantees		25		29
Taxes		23		33
Advanced discounts from suppliers, current		19		19
Customer advances and deferred income^(a)		18		12
Accrued interest		5		5
Short-term lease liability (Note 13)		8		8
Other (primarily operating expenses)		30		46
	$	284	$	310

(a)	Customer advances and deferred income include $2 million and $3 million of contract liabilities as of June 30, 2020 and December 31, 2019, respectively. See Note 3, Revenue Recognition and Contracts with Customers.

Summary of Expenses Related to the Repositioning Accruals

	Severance Costs			Exit Costs			Total
Balance at December 31, 2018	$	13		$	2		$	15
Charges		3			—			3
Usage—cash		(6	)		(2	)		(8	)
Adjustments and reclassifications		(6	)		1			(5	)
Foreign currency translation		—			—			—
Balance at June 30, 2019	$	4		$	1		$	5

	Severance Costs			Exit Costs		Total
Balance at December 31, 2019	$	3		$	1	$	4
Charges		6			—		6
Usage—cash		(4	)		—		(4	)
Adjustments and reclassifications		—			—		—
Foreign currency translation		—			—		—
Balance at June 30, 2020	$	5		$	1	$	6

Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities

	June 30,		December 31,
	2020		2019
Pension and other employee related	$	93	$	94
Advanced discounts from suppliers		37		46
Uncertain tax positions		80		79
Long-term lease liability (Note 13)		27		28
Other		25		27
	$	262	$	274

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Summary of Components of Lease Expense

The components of lease expense are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	3	$	3	$	6	$	6

Summary of Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3	$	3	$	5	$	6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5	$	3	$	5	$	8

Summary of Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to operating leases is as follows:

	June 30, 2020		December 31, 2019
Other assets	$	34	$	35
Accrued liabilities		8		8
Other liabilities		27		28

	June 30, 2020	December 31, 2019
Weighted-average lease term	5.83	6.30
Weighted-average discount rate	6.23	6.36

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities were as follows:

	June 30, 2020
2020	$	5
2021		8
2022		7
2023		6
2024		5
Thereafter		11
Total lease payments		42
Less imputed interest		(7	)
	$	35

Financial Instruments and Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2020 and December 31, 2019:

					Fair Value
	Notional Amounts				Assets					Liabilities
	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019			June 30, 2020		December 31, 2019
Designated forward currency exchange contracts	$	286	$	392	$	4	$	5	^(a)	$	1	$	1	^(b)
Undesignated instruments:
Undesignated cross-currency swap		418		420		1		—	^(c)		—		1	^(d)
Undesignated interest rate swap		471		561		—		—			2		1	^(d)
Undesignated forward currency exchange contracts		224		447		2		2	^(a)		—		3	^(b)
	$	1,399	$	1,820	$	7	$	7		$	3	$	6

(a)

Recorded within Other current assets in the Company’s Consolidated Interim Balance Sheets

(b)

Recorded within Accrued liabilities in the Company’s Consolidated Interim Balance Sheets

(c)

Recorded within Other assets in the Company’s Consolidated Interim Balance Sheets

(d)

Recorded within Other liabilities in the Company´s Consolidated Interim Balance Sheets

Summary of Financial Assets and Liabilities Not Carried at Fair Value

The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:

	June 30, 2020
	Carrying Value		Fair Value
Long-term debt and related current maturities	$	1,407	$	1,309

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component

Changes in Accumulated Other Comprehensive Income (Loss) by Component

	Foreign Exchange Translation Adjustment		Changes in Fair Value of Effective Cash Flow Hedges		Pension Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2018	$	86	$	—	$	(13	)	$	73
Other comprehensive income (loss) before reclassifications		25		2		—			27
Amounts reclassified from accumulated other comprehensive income (loss)		—		—		1			1
Net current period other comprehensive income (loss)		25		2		1			28
Balance at June 30, 2019	$	111	$	2	$	(12	)	$	101

	Foreign Exchange Translation Adjustment			Changes in Fair Value of Effective Cash Flow Hedges			Pension Adjustments			Total Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2019	$	153		$	4		$	(27	)	$	130
Other comprehensive income (loss) before reclassifications		(11	)		(2	)		—			(13	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			—			—			—
Net current period other comprehensive income (loss)		(11	)		(2	)					(13	)
Balance at June 30, 2020	$	142		$	2		$	(27	)	$	117

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

The details of the earnings per share (“EPS”) calculations for the three and six months ended June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020		2019
Basic
Net (loss) Income	$	(9	)	$	66	$	43	$	139
Weighted average common shares outstanding		75,595,991			74,591,478		75,316,827		74,414,450
EPS – Basic	$	(0.12	)	$	0.88	$	0.57	$	1.87

	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020		2019
Diluted
Net (loss) Income	$	(9	)	$	66	$	43	$	139
Weighted average common shares outstanding – Basic		75,595,991			74,591,478		75,316,827		74,414,450
Dilutive effect of unvested RSUs and other contingently issuable shares		249,520			2,309,066		520,632		1,715,371
Weighted average common shares outstanding – Diluted		75,845,511			76,900,544		75,837,459		76,129,821
EPS – Diluted	$	(0.12	)	$	0.86	$	0.57	$	1.83

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Summary of Obligation Payable to Honeywell

The following table summarizes our Obligation payable to Honeywell related to these agreements:

	Six Months Ended June 30, 2020
	Asbestos and environmental			Tax Matters		Total
Beginning of year	$	1,090		$	261	$	1,351
Accrual for update to estimated liability		—			—		—
Legal fees expensed		27			—		27
Payments to Honeywell		(35	)		—		(35	)
Currency translation adjustment		(2	)		—		(2	)
End of period	$	1,080		$	261	$	1,341

Current		—			37		37
Non-current		1,080			224		1,304
Total	$	1,080		$	261	$	1,341

Summary of Asbestos Claim Activity

The following tables present information regarding Bendix related asbestos claims activity:

	Six Months Ended June 30,			Year Ended December 31,
Claims Activity	2020			2019
Claims Unresolved at the beginning of the period		6,480			6,209
Claims Filed		1,013			2,659
Claims Resolved		(1,195	)		(2,388	)
Claims Unresolved at the end of the period		6,298			6,480

	Six Months Ended June 30,		Years Ended December 31,
Disease Distribution of Unresolved Claims	2020		2019
Mesothelioma and Other Cancer Claims		3,278		3,399
Nonmalignant Claims		3,020		3,081
Total Claims		6,298		6,480

Summary of Average Resolutions Per Claim Excluding Legal Costs

Honeywell has experienced average resolutions per claim excluding legal costs as follows:

	Years Ended December 31,
	2019		2018		2017		2016
					(in whole dollars)
Malignant claims	$	50,200	$	55,300	$	56,000	$	44,000
Nonmalignant claims	$	3,900	$	4,700	$	2,800	$	4,485

Pension Benefits (Tables)

6 Months Ended

Jun. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Summary of Net Periodic Benefit Cost

Net periodic benefit costs for our significant defined benefit plans include the following components:

	Three Months Ended June 30,										Six Months Ended June 30,
	U.S. Plans					Non-U.S. Plan,					U.S. Plans						Non-U.S. Plan,
	2020			2019		2020			2019		2020			2019			2020			2019
Service cost	$	—		$	—	$	2		$	1	$	1		$	—		$	5		$	2
Interest cost		1			—		—			—		3			1			1			1
Expected return on plan assets		(3	)		—		(1	)		—		(5	)		(1	)		(3	)		(1	)
Amortization of prior service (credit)		—			—		—			—		—			—			—			—
	$	(2	)	$	—	$	1		$	1	$	(1	)	$	—		$	3		$	2

Background and Basis of Presentation - Additional Information (Details)				6 Months Ended
	Jun. 12, 2020	Sep. 27, 2018 USD ($)	Sep. 12, 2018 USD ($)	Jun. 30, 2020 USD ($)	Sep. 27, 2018 EUR (€)
Subordinated Indemnity Agreement
Background And Basis Of Presentation [Line Items]
Percentage of net insurance receipts			90.00%
Agreement termination date			Dec. 31, 2048
Agreement termination description				The Subordinated Indemnity Agreement provides that the agreement will terminate upon the earlier of (x) December 31, 2048 or (y) December 31st of the third consecutive year during which certain amounts owed to Honeywell during each such year were less than $25 million as converted into Euros in accordance with the terms of the agreement.
Honeywell International Inc \| Subordinated Indemnity Agreement
Background And Basis Of Presentation [Line Items]
Percentage of net insurance receipts			90.00%
Honeywell International Inc \| Subordinated Indemnity Agreement \| Maximum
Background And Basis Of Presentation [Line Items]
Liability for asbestos and environmental claims maximum amount converted into euros			$ 25,000,000
Honeywell International Inc \| Bendix \| Subordinated Indemnity Agreement
Background And Basis Of Presentation [Line Items]
Percentage of asbestos and environmental liabilities liable to pay			90.00%
Credit Agreement
Background And Basis Of Presentation [Line Items]
Line of credit, minimum available of unrestricted cash				$ 100,000,000
Line of credit, maximum available of unrestricted cash				$ 165,000,000
Credit Agreement \| Term B Facility
Background And Basis Of Presentation [Line Items]
Line of credit, term		7 years
Line of credit, maximum borrowing capacity		$ 425,000,000			€ 375,000,000
Line of credit, mature date				Sep. 27, 2025
Credit Agreement \| Term A Facility
Background And Basis Of Presentation [Line Items]
Line of credit, term		5 years
Line of credit, maximum borrowing capacity \| €					330,000,000
Line of credit, mature date				Sep. 27, 2023
Credit Agreement \| Revolving Facility
Background And Basis Of Presentation [Line Items]
Line of credit, term		5 years
Line of credit, maximum borrowing capacity \| €					€ 430,000,000
Minimum liquidity				$ 125,000,000
Minimum liquidity thereafter				$ 200,000,000
Line of credit, mature date				Sep. 27, 2023
2020 Amendment Credit Agreement \| Term B Facility
Background And Basis Of Presentation [Line Items]
Increase in basis points	0.75%
2020 Amendment Credit Agreement \| Term A Facility
Background And Basis Of Presentation [Line Items]
Increase in basis points	0.25%
2020 Amendment Credit Agreement \| Revolving Facility
Background And Basis Of Presentation [Line Items]
Increase in basis points	0.25%
2020 Amendment Credit Agreement \| Senior Credit Facilities
Background And Basis Of Presentation [Line Items]
Increase in basis points	0.25%

Background and Basis of Presentation - Schedule of Consolidated Net Secured Leverage Ratio (Details) - Credit Agreement	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Background And Basis Of Presentation [Line Items]
Consolidated Net Secured Leverage Ratio									5.75
Scenario Forecast
Background And Basis Of Presentation [Line Items]
Consolidated Net Secured Leverage Ratio	3.50	3.75	4.25	4.50	6.50	11.75	10.75	9.25

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 01, 2020	Mar. 31, 2020
Significant Accounting Policies [Line Items]
Cumulative-effect adjustment to opening retained earnings		$ (5)
ASU 2016-13
Significant Accounting Policies [Line Items]
Cumulative-effect adjustment to opening retained earnings	$ 5

Revenue Recognition and Contracts with Customers - Summary of Net Sales by Region and Channel (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation Of Revenue [Line Items]
Net sales	$ 477	$ 802	$ 1,222	$ 1,637
United States
Disaggregation Of Revenue [Line Items]
Net sales	66	128	198	257
Europe
Disaggregation Of Revenue [Line Items]
Net sales	188	455	621	933
Asia
Disaggregation Of Revenue [Line Items]
Net sales	218	210	391	429
Other International
Disaggregation Of Revenue [Line Items]
Net sales	5	9	12	18
OEM
Disaggregation Of Revenue [Line Items]
Net sales	395	687	1,043	1,402
OEM \| United States
Disaggregation Of Revenue [Line Items]
Net sales	33	77	125	160
OEM \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	160	416	554	845
OEM \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	202	190	361	389
OEM \| Other International
Disaggregation Of Revenue [Line Items]
Net sales		4	3	8
Aftermarket
Disaggregation Of Revenue [Line Items]
Net sales	70	98	152	198
Aftermarket \| United States
Disaggregation Of Revenue [Line Items]
Net sales	32	49	72	94
Aftermarket \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	22	31	52	68
Aftermarket \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	11	13	19	26
Aftermarket \| Other International
Disaggregation Of Revenue [Line Items]
Net sales	5	5	9	10
Other
Disaggregation Of Revenue [Line Items]
Net sales	12	17	27	37
Other \| United States
Disaggregation Of Revenue [Line Items]
Net sales	1	2	1	3
Other \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	6	8	15	20
Other \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	$ 5	$ 7	$ 11	$ 14

Revenue Recognition and Contracts with Customers - Summary of Contract Assets and Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
Contract With Customer Asset And Liability [Abstract]
Contract assets—January 1	$ 6
Contract assets—June 30	32
Change in contract assets—Increase/(Decrease)	26
Contract liabilities—January 1	(3)
Contract liabilities—June 30	$ (3)

Research, Development & Engineering - Summary of Research, Development & Engineering Activities (Details) - Cost of Goods Sold - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	$ 28	$ 30	$ 59	$ 65
Research and Development Costs
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	25	29	52	61
Engineering-Related Expenses
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	$ 3	$ 1	$ 7	$ 4

Other Expense, Net - Schedule of Other Operating Cost and Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other Income And Expenses [Abstract]
Indemnification related — post Spin-Off	$ 12	$ 17	$ 27	$ 36
Indemnification related — litigation	2		3
Factoring and notes receivables discount fees	1		1
Other Expense, Net	$ 15	$ 17	$ 31	$ 36

Income Taxes - Tax Expense (Benefit) and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Tax expense (Note 6)	$ 11	$ 21	$ 12	$ 45
Effective tax rate	550.00%	24.10%	21.80%	24.50%

Income Taxes - Additional Information (Details)	3 Months Ended
Income Taxes - Additional Information (Details)	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%

Accounts, Notes and Other Receivables Net - Schedule of Accounts, Notes and Other Receivables Net (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Trade receivables	$ 438	$ 574
Notes receivables	55	68
Other receivables	70	69
Accounts, notes and other receivables, gross	563	711
Less—Allowance for doubtful accounts	(9)	(4)
Accounts, notes and other receivables, net	$ 554	$ 707

Accounts, Notes and Other Receivables Net - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Unbilled balances	$ 32	$ 4
Unbilled contracts assets	$ 32	$ 6

Factoring and Notes Receivable - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Sale of trade receivables	$ 66	$ 27
Proceeds from sale of bank notes	$ 47	$ 105

Inventories-Net - Summary of Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Inventory Combining Work In Process And Raw Materials Alternative Gross [Abstract]
Raw materials	$ 158	$ 142
Work in process	22	18
Finished products	83	85
Inventory, gross	263	245
Less—Reserves	(29)	(25)
Inventories	$ 234	$ 220

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Other Assets [Line Items]
Advanced discounts to customers, non-current	$ 61	$ 62
Operating right-of-use assets (Note 13)	$ 34	$ 35
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Other	$ 10	$ 11
Total	106	$ 108
Undesignated as Hedging \| Cross-currency Swap
Other Assets [Line Items]
Undesignated cross-currency swap at fair value	$ 1

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Accrued Liabilities Current [Abstract]
Customer pricing reserve	$ 88	$ 90
Compensation, benefit and other employee related	62	64
Repositioning	6	4
Product warranties and performance guarantees	25	29
Taxes	23	33
Advanced discounts from suppliers, current	19	19
Customer advances and deferred income	18	12
Accrued interest	5	5
Short-term lease liability (Note 13)	8	8
Other (primarily operating expenses)	30	46
Accrued Liabilities	$ 284	$ 310

Accrued Liabilities - Summary of Accrued Liabilities (Parenthetical) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Accrued Liabilities Current [Abstract]
Contract liabilities	$ 2	$ 3

Accrued Liabilities - Summary of Expenses Related to the Repositioning Accruals (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Restructuring Cost And Reserve [Line Items]
Balance at beginning of period	$ 4	$ 15
Charges	6	3
Usage—cash	(4)	(8)
Adjustments and reclassifications		(5)
Balance at end of period	6	5
Severance Costs
Restructuring Cost And Reserve [Line Items]
Balance at beginning of period	3	13
Charges	6	3
Usage—cash	(4)	(6)
Adjustments and reclassifications		(6)
Balance at end of period	5	4
Exit Costs
Restructuring Cost And Reserve [Line Items]
Balance at beginning of period	1	2
Usage—cash	0	(2)
Adjustments and reclassifications		1
Balance at end of period	$ 1	$ 1

Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Pension and other employee related	$ 93	$ 94
Advanced discounts from suppliers	37	46
Uncertain tax positions	80	79
Long-term lease liability (Note 13)	27	28
Other	25	27
Other Liabilities	$ 262	$ 274

Leases - Additional Information (Details)	6 Months Ended
Leases - Additional Information (Details)	Jun. 30, 2020
Lessee Lease Description [Line Items]
Operating lease, option to extend	true
Operating lease, option to extend, description	some of which include options to extend the leases for up to two years
Operating lease, option to terminate	true
Operating lease, option to terminate, description	some of which include options to terminate the leases within the year
Maximum
Lessee Lease Description [Line Items]
Operating lease, remaining lease terms	11 years
Operating lease, options to extend, years	2 years

Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 3	$ 3	$ 6	$ 6

Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating cash outflows from operating leases	$ 3	$ 3	$ 5	$ 6
Right-of-use assets obtained in exchange for lease obligations, operating leases	$ 5	$ 3	$ 5	$ 8

Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Other assets	$ 34	$ 35
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Accrued liabilities	$ 8	$ 8
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Other liabilities	$ 27	$ 28
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Weighted-average lease term	5 years 9 months 29 days	6 years 3 months 18 days
Weighted-average discount rate	6.23%	6.36%

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Millions	Jun. 30, 2020 USD ($)
Leases [Abstract]
2020	$ 5
2021	8
2022	7
2023	6
2024	5
Thereafter	11
Total lease payments	42
Less imputed interest	(7)
Operating lease, liabilities	$ 35

Financial Instruments and Fair Value Measures - Additional Information (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative, aggregate gross notional amount	$ 1,399,000,000	$ 1,820,000,000

Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	$ 1,399,000,000	$ 1,820,000,000
Undesignated as Hedging \| Cross-currency Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value, Assets	1,000,000
Fair Value Measurements Recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	1,399,000,000	1,820,000,000
Fair Value, Assets	7,000,000	7,000,000
Fair Value, Liabilities	3,000,000	6,000,000
Fair Value Measurements Recurring \| Level 2 \| Designated as Hedging \| Forward Currency Exchange Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	286,000,000	392,000,000
Fair Value, Assets	4,000,000	5,000,000
Fair Value, Liabilities	1,000,000	1,000,000
Fair Value Measurements Recurring \| Level 2 \| Undesignated as Hedging \| Forward Currency Exchange Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	224,000,000	447,000,000
Fair Value, Assets	2,000,000	2,000,000
Fair Value, Liabilities		3,000,000
Fair Value Measurements Recurring \| Level 2 \| Undesignated as Hedging \| Cross-currency Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	418,000,000	420,000,000
Fair Value, Assets	1,000,000
Fair Value, Liabilities		1,000,000
Fair Value Measurements Recurring \| Level 2 \| Undesignated as Hedging \| Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	471,000,000	561,000,000
Fair Value, Liabilities	$ 2,000,000	$ 1,000,000

Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) $ in Millions	Jun. 30, 2020 USD ($)
Carrying Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt and related current maturities	$ 1,407
Fair Value \| Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt and related current maturities	$ 1,309

Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ (2,046)	$ (2,133)	$ (2,376)	$ (2,517)	$ (2,133)	$ (2,517)
Total other comprehensive (loss) income, net of tax	(52)	39	(35)	63	(13)	28
Ending balance	(2,103)	(2,046)	(2,341)	(2,376)	(2,103)	(2,341)
Foreign Exchange Translation Adjustment
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance		153		86	153	86
Other comprehensive income (loss) before reclassifications					(11)	25
Total other comprehensive (loss) income, net of tax					(11)	25
Ending balance	142		111		142	111
Changes in Fair Value of Effective Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance		4			4
Other comprehensive income (loss) before reclassifications					(2)	2
Total other comprehensive (loss) income, net of tax					(2)	2
Ending balance	2		2		2	2
Pension Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance		(27)		(13)	(27)	(13)
Amounts reclassified from accumulated other comprehensive income (loss)						1
Total other comprehensive (loss) income, net of tax						1
Ending balance	(27)		(12)		(27)	(12)
Total Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	169	130	136	73	130	73
Other comprehensive income (loss) before reclassifications					(13)	27
Amounts reclassified from accumulated other comprehensive income (loss)						1
Total other comprehensive (loss) income, net of tax	(52)	39	(35)	63	(13)	28
Ending balance	$ 117	$ 169	$ 101	$ 136	$ 117	$ 101

Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic
Net (loss) income	$ (9)	$ 52	$ 66	$ 73	$ 43	$ 139
Weighted average common shares outstanding – Basic	75,595,991		74,591,478		75,316,827	74,414,450
EPS – Basic	$ (0.12)		$ 0.88		$ 0.57	$ 1.87
Diluted
Net (loss) income	$ (9)	$ 52	$ 66	$ 73	$ 43	$ 139
Weighted average common shares outstanding – Basic	75,595,991		74,591,478		75,316,827	74,414,450
Dilutive effect of unvested RSUs and other contingently issuable shares	249,520		2,309,066		520,632	1,715,371
Weighted average common shares outstanding – Diluted	75,845,511		76,900,544		75,837,459	76,129,821
EPS – Diluted	$ (0.12)		$ 0.86		$ 0.57	$ 1.83

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Earnings Per Share [Abstract]
Antidilutive shares excluded from computation of diluted EPS	437,333	439,649

Commitments and Contingencies - Additional Information (Details) $ in Millions			3 Months Ended	6 Months Ended
	Oct. 01, 2018 USD ($) Installment	Sep. 12, 2018 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)
Subordinated Indemnity Agreement
Loss Contingencies [Line Items]
Percentage of net insurance receipts		90.00%
Loss contingency payable		$ 175
Minimum amount agreed to maintain for termination		$ 25
Agreement termination description				The Subordinated Indemnity Agreement provides that the agreement will terminate upon the earlier of (x) December 31, 2048 or (y) December 31st of the third consecutive year during which certain amounts owed to Honeywell during each such year were less than $25 million as converted into Euros in accordance with the terms of the agreement.
Honeywell International Inc \| Tax Matters Agreement
Loss Contingencies [Line Items]
Aggregate payments connection with mandatory transition tax	$ 240
Remaining payments connection with mandatory transition tax				$ 193
Number of annual installments \| Installment	5
Mandatory transition tax rate first installment	8.00%
Mandatory transition tax rate second installment	8.00%
Mandatory transition tax rate third installment	15.00%
Mandatory transition tax rate fourth installment	20.00%
Mandatory transition tax rate fifth installment	25.00%
Honeywell International Inc \| Subordinated Indemnity Agreement
Loss Contingencies [Line Items]
Percentage of net insurance receipts		90.00%
Payment made in connection with the Indemnification and Reimbursement Agreement			$ 35
Description of subordinated indemnity agreement				As of the Spin-Off date of October 1, 2018, Garrett ASASCO is obligated to make payments to Honeywell in amounts equal to 90% of Honeywell’s asbestos-related liability payments and accounts payable, primarily related to the Bendix business in the United States, as well as certain environmental-related liability payments and accounts payable and non-United States asbestos-related liability payments and accounts payable, in each case related to legacy elements of the Business, including the legal costs of defending and resolving such liabilities, less 90% of Honeywell’s net insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities. Pursuant to the terms of this Subordinated Indemnity Agreement, Garrett ASASCO is responsible for paying to Honeywell such amounts, up to a cap of an amount equal to the Euro-to-U.S. dollar exchange rate determined by Honeywell as of a date within two business days prior to the date of the Distribution (1.16977 USD = 1 EUR) equivalent of $175 million in respect of such liabilities arising in any given calendar year.
Bendix \| Honeywell International Inc \| Subordinated Indemnity Agreement
Loss Contingencies [Line Items]
Percentage of asbestos and environmental liabilities liable to pay		90.00%

Commitments and Contingencies - Summary of Obligation Payable to Honeywell (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Current	$ 37	$ 69
Non-current	1,304	$ 1,282
Exit Costs \| Honeywell International Inc
Loss Contingencies [Line Items]
Beginning of year	1,351
Legal fees expensed	27
Payments to Honeywell	(35)
Currency translation adjustment	(2)
End of period	1,341
Current	37
Non-current	1,304
Total	1,341
Exit Costs \| Honeywell International Inc \| Asbestos and Environmental
Loss Contingencies [Line Items]
Beginning of year	1,090
Legal fees expensed	27
Payments to Honeywell	(35)
Currency translation adjustment	(2)
End of period	1,080
Non-current	1,080
Total	1,080
Exit Costs \| Honeywell International Inc \| Tax Matters Agreement
Loss Contingencies [Line Items]
Beginning of year	261
End of period	261
Current	37
Non-current	224
Total	$ 261

Commitments and Contingencies - Summary of Asbestos Claims Activity (Details) - Bendix - Claim	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Claims Activity
Claims Unresolved at the beginning of the period	6,480	6,209
Claims Filed	1,013	2,659
Claims Resolved	(1,195)	(2,388)
Claims Unresolved at the end of the period	6,298	6,480

Commitments and Contingencies - Summary of Asbestos Disease Distribution of Unresolved Claims (Details) - Bendix - Claim	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Disease Distribution of Unresolved Claims
Mesothelioma and Other Cancer Claims	3,278	3,399
Nonmalignant Claims	3,020	3,081
Total Claims	6,298	6,480	6,209

Commitments and Contingencies - Summary of Average Resolutions Per Claim Excluding Legal Costs (Details) - $ / Claim	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Malignant claims	50,200	55,300	56,000	44,000
Nonmalignant claims	3,900	4,700	2,800	4,485

Pension Benefits - Additional Information (Details) - Pension Benefits - Non-U.S. Plans $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Expected pension contribution in the next fiscal year	$ 7
Pension contribution	$ 3

Pension Benefits - Summary of Net Periodic Benefit Cost (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
United States
Defined Benefit Plan Disclosure [Line Items]
Service cost			$ 1
Interest cost	$ 1		3	$ 1
Expected return on plan assets	(3)		(5)	(1)
Net periodic benefit costs	(2)		(1)
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	$ 1	5	2
Interest cost			1	1
Expected return on plan assets	(1)		(3)	(1)
Net periodic benefit costs	$ 1	$ 1	$ 3	$ 2

China Variable Interest Entity - Additional Information (Details) - shares	1 Months Ended
	Sep. 30, 2018	Jun. 03, 2020
Honeywell International Inc \| Garrett China
Variable Interest Entity [Line Items]
Equity interest ownership percentage		100.00%
Garrett China \| Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Variable interest ownership percentage	100.00%
Equity interests in exchange for shares of common stock issued	8,444,077