0001564590-21-021571 | 10-Q | XBRL Viewer

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Pension Benefits - Additional Information (Details) - Pension Benefits - Non-U.S. Plans $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Expected pension contribution in the next fiscal year	$ 7
Pension contribution	$ 1

Financial Instruments and Fair Value Measures

3 Months Ended

Mar. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Financial Instruments and Fair Value Measures

Note 15. 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 and Combined Financial Statements for the year ended December 31, 2020 included in our 2020 Form 10-K. At March 31, 2021 and December 31, 2020, we had contracts with aggregate gross notional amounts of $170 million and $19 million, respectively, to limit interest rate risk and to exchange foreign currencies, principally the U.S. Dollar, Swiss Franc, British Pound, Euro, Chinese Yuan, Japanese Yen, Mexican Peso, New Romanian Leu, Czech Koruna, Australian Dollar and Korean Won.

As a result of the Chapter 11 Cases, the Company has been limited in its ability to enter into hedging transactions. The Company has obtained Bankruptcy Court authorization for continuing hedging activities in the ordinary course of business, however, counterparties have either been unwilling to enter into hedging transactions with the Company during the Chapter 11 Cases or have required the Company to fully cash collateralize its obligations under the relevant hedging instrument, which has effectively reduced the Company’s ability to hedge foreign currency exposures beyond those relating to trade payables and receivables.

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 March 31, 2021 and December 31, 2020:

					Fair Value
	Notional Amounts				Assets
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
	(Dollars in millions)
Undesignated forward currency exchange contracts	$	170	$	19	$	2	$	—	^(a)

(a)	Recorded within Other current assets 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.

Following our voluntary filing for Chapter 11 protection, and as noted in the table above, the majority of our foreign exchange, interest rate swap, and cross-currency swap contracts were terminated at or prior to September 30, 2020. All outstanding amounts as

of March 31, 2021 and December 31, 2020 were classified as Other Liabilities and are fully secured and payable upon Emergence. Any valuation difference from our Petition Date to the termination date will be reflected in Reorganization items, net. See Note 2, Reorganization and Chapter 11 Proceedings, for additional information.

A number of our forward currency exchange contracts are also designated as accounting hedges. Upon termination, these amounts have been dedesignated. As the Company still anticipates the forecasted transaction to commence, the amounts in accumulated comprehensive incomes will be released based on our original forecast.

The carrying value of Cash, cash equivalents and restricted cash, Account receivables and Notes and Other receivables 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:

	March 31, 2021
	Carrying Value		Fair Value
	(Dollars in millions)
Liabilities not subject to compromise:
Terms Loans A and B	$	1,055	$	1,073
DIP Financing		100		100
Liabilities subject to compromise:
Senior Notes		412		440

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.

Reorganization and Chapter 11 Proceedings - Schedule of Reorganization Items Net (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Reorganizations [Abstract]
Advisor fees	$ 84
DIP Financing fees	1
Bid termination and expense reimbursement	79
Other	10
Total reorganization items, net	$ 174

Commitments and Contingencies - Summary of Obligation Payable to Honeywell (Details) - Exit Costs - Honeywell International Inc - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Beginning of year	$ 1,482	$ 1,351
Legal fees expensed		41
Payments to Honeywell		(35)
Currency translation adjustment	(61)	125
End of period	1,421	1,482
Current	41	42
Non-current	1,380	1,440
Total	1,421	1,482
Asbestos and Environmental
Loss Contingencies [Line Items]
Beginning of year	1,196	1,090
Legal fees expensed		41
Payments to Honeywell		(35)
Currency translation adjustment	(49)	100
End of period	1,147	1,196
Current	2	2
Non-current	1,145	1,194
Total	1,147	1,196
Tax Matters Agreement
Loss Contingencies [Line Items]
Beginning of year	286	261
Currency translation adjustment	(12)	25
End of period	274	286
Current	39	40
Non-current	235	246
Total	$ 274	$ 286

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Summary of Obligation Payable to Honeywell

The following table summarizes our Obligation payable to Honeywell related to these agreements. As of March 31, 2021 and December 31, 2020, all amounts have been reclassified to Liabilities subject to compromise on the Consolidated Interim Balance Sheets:

	Three Months Ended March 31, 2021
	Asbestos and environmental			Tax Matters			Total
	(Dollars in millions)
Beginning of year	$	1,196		$	286		$	1,482
Currency translation adjustment		(49	)		(12	)		(61	)
End of period	$	1,147		$	274		$	1,421

Current		2			39			41
Non-current		1,145			235			1,380
Total	$	1,147		$	274		$	1,421

	Twelve Months Ended December 31, 2020
	Asbestos and environmental			Tax Matters		Total
	(Dollars in millions)
Beginning of year	$	1,090		$	261	$	1,351
Legal fees expensed		41			—		41
Payments to Honeywell		(35	)		—		(35	)
Currency translation adjustment		100			25		125
End of period	$	1,196		$	286	$	1,482

Current		2			40		42
Non-current		1,194			246		1,440
Total	$	1,196		$	286	$	1,482

Other Liabilities

3 Months Ended

Mar. 31, 2021

Other Liabilities Disclosure [Abstract]

Other Liabilities

Note 13. Other Liabilities

Due to the Chapter 11 filing, Other Liabilities that existed as of March 31,2021 and December 31, 2020 and were deemed pre-petition, unsecured were reclassified as Liabilities subject to compromise, refer to Note 2, Reorganization and Chapter 11 Proceedings.

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Income taxes	$	47	$	45
Designated and undesignated derivatives		21		22
Pension and other employee related		18		14
Long-term lease liability (Note 14)		14		15
Advanced discounts from suppliers		10		11
Other		15		7
	$	125	$	114

Revenue Recognition and Contracts with Customers - Summary of Net Sales by Region and Channel (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Net sales	$ 997	$ 745
United States
Disaggregation Of Revenue [Line Items]
Net sales	138	132
Europe
Disaggregation Of Revenue [Line Items]
Net sales	528	433
Asia
Disaggregation Of Revenue [Line Items]
Net sales	319	173
Other International
Disaggregation Of Revenue [Line Items]
Net sales	12	7
OEM
Disaggregation Of Revenue [Line Items]
Net sales	889	648
OEM \| United States
Disaggregation Of Revenue [Line Items]
Net sales	100	92
OEM \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	481	394
OEM \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	302	159
OEM \| Other International
Disaggregation Of Revenue [Line Items]
Net sales	6	3
Aftermarket
Disaggregation Of Revenue [Line Items]
Net sales	91	82
Aftermarket \| United States
Disaggregation Of Revenue [Line Items]
Net sales	36	40
Aftermarket \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	39	30
Aftermarket \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	10	8
Aftermarket \| Other International
Disaggregation Of Revenue [Line Items]
Net sales	6	4
Other
Disaggregation Of Revenue [Line Items]
Net sales	17	15
Other \| United States
Disaggregation Of Revenue [Line Items]
Net sales	2
Other \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	8	9
Other \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	$ 7	$ 6

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Accrued Liabilities Current [Abstract]

Summary of Accrued Liabilities

	March 31, 2021		December 31, 2020
	(Dollars in millions)
Customer pricing reserve	$	87	$	82
Compensation, benefit and other employee related		59		62
Taxes		29		37
Product warranties and performance guarantees		16		14
Repositioning		13		7
Advanced discounts from suppliers, current		5		5
Customer advances and deferred income^(a)		9		8
Short-term lease liability (Note 14)		5		5
Other (primarily operating expenses)		54		28
	$	277	$	248

(a)	Customer advances and deferred income include $1 million and $2 million of contract liabilities as of March 31, 2021 and December 31, 2020, respectively. See Note 4, Revenue Recognition and Contracts with Customers.

Summary of Expenses Related to the Repositioning Accruals

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
	(Dollars in millions)
Balance at December 31, 2019	$	3		$	1	$	4
Charges		5			—		5
Usage—cash		(2	)		—		(2	)
Balance at March 31, 2020	$	6		$	1	$	7

	Severance Costs			Exit Costs		Total
	(Dollars in millions)
Balance at December 31, 2020	$	7		$	—	$	7
Charges		8			—		8
Usage—cash		(2	)		—		(2	)
Balance at March 31, 2021	$	13		$	—	$	13

Factoring and Notes Receivable

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Factoring and Notes Receivable

Note 9. Factoring and Notes Receivable

The Company has entered into arrangements with financial institutions to sell eligible trade receivables. During the periods ended March 31, 2021 and December 31, 2020, the Company sold $180 million and $473 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 March 31, 2021 and December 31, 2020, the Company sold $0 and $160 million of bank notes, respectively, without recourse, and accounted for these as true sales. As of March 31, 2021 and December 31, 2020, the Company has pledged as collateral $15 million and $18 million of guaranteed bank notes which have not been sold in order to be able to issue bank notes as payment to certain suppliers. Such pledged amounts are included as Notes receivables in Accounts, notes and other receivables – Net (Note 8).

Inventories-Net (Tables)

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Summary of Inventories

	March 31, 2021			December 31, 2020
	(Dollars in millions)
Raw materials	$	150		$	160
Work in process		21			19
Finished products		124			97
		295			276
Less—Reserves		(37	)		(41	)
	$	258		$	235

Other Expense, Net

3 Months Ended

Mar. 31, 2021

Other Income And Expenses [Abstract]

Other Expense, Net

Note 6. Other Expense, Net

	Three Months Ended March 31,
	2021		2020
	(Dollars in millions)
Indemnification related — post Spin-Off	$	—	$	15
Indemnification related — litigation		—		1
Factoring and notes receivables discount fees		1		—
	$	1	$	16

Accrued Liabilities - Summary of Accrued Liabilities (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Contract liabilities	$ 1	$ 2

Reorganization and Chapter 11 Proceedings (Tables)

3 Months Ended

Mar. 31, 2021

Reorganizations [Abstract]

Schedule of Reorganization Items Net

Reorganization items, net, are comprised of the following for the three months ended March 31, 2021:

	Three Months Ended March 31,
	2021
	(Dollars in millions)
Advisor fees	$	84
DIP Financing fees		1
Bid termination and expense reimbursement		79
Other		10
Total reorganization items, net	$	174

Schedule of Principal Amounts Outstanding on Senior Secured Credit Facilities and Senior Notes

The principal amounts outstanding on our Senior Secured Credit Facilities and the Senior Notes as of March 31, 2021 and December 31, 2020 are as follows:

	March 31,			December 31,
	2021			2020
	(Dollars in millions)
Senior Secured Credit Facilities ⁽¹⁾:
Term Loans	$	1,055		$	1,082
Borrowings under revolving credit facility		370			370
Total consolidated Secured Debt		1,425			1,452
Long-term debt, net subject to compromise ⁽²⁾:
Senior Notes		412			429
Total debt, prior to reclassification to Liabilities subject to compromise		1,837			1,881
Less: current portion		(376	)		(370	)
Less: Amounts reclassified to Liabilities subject to compromise		(412	)		(429	)
Total long-term debt	$	1,049		$	1,082

(1)

The Term A Facility, Term B Facility and Revolving Facility are fully secured. These continue to be accounted for under ASC 470.

(2)

The Senior Notes are not fully secured and have been reclassified to Liabilities subject to compromise in the Company's Consolidated Interim Balance Sheet as of March 31, 2021. As of the Petition Date, the Company ceased accruing related interest expense and amortization of debt issuance costs.

Schedule of Liabilities Subject to Compromise

The following table presents liabilities subject to compromise as reported in the Consolidated Interim Balance Sheet at March 31, 2021 and December 31, 2020, respectively:

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Obligations payable to Honeywell (Note 18)	$	1,421	$	1,482
Long-term debt ⁽¹⁾		412		429
Pension, compensation, benefit and other employee related		82		92
Uncertain tax positions and deferred taxes		61		69
Accounts payable		35		82
Advanced discounts from suppliers		28		33
Lease liability (Note 14)		17		19
Product warranties and performance guarantees		16		16
Freight Accrual		—		27
Other		35		41
Total liabilities subject to compromise	$	2,107	$	2,290

(1)

Please see above Pre-petition Long-Term Debt during the Chapter 11 Cases sub-section for details of the pre-petition debt reported as liabilities subject to compromise.

Schedule of Principal Amounts Outstanding on Debtor-In-Possession Financing

The principal amounts outstanding on Debtor-in-possession financing as of March 31, 2021 and December 31, 2020 are as follows:

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Debtor-in-possession financing	$	100	$	200

Schedule of Condensed Combined Financial Statements of Debtors

The financial statements below represent the condensed and combined interim financial statements of the Debtors as of and for the three months ended March 31, 2021. Any entities which are non-debtor entities, are not included in these condensed and combined

interim financial statements. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the non-debtor entities have not been eliminated in the Debtors’ financial statements.

	For the Three Months Ended March 31,
	2021
	(Dollars in millions)
Net sales	$	753
Cost of goods sold		602
Gross profit		151
Selling, general and administrative expenses		53
Interest expense		23
Non-operating expense		12
Reorganization items, net		174
Income before taxes		(111	)
Tax expense		20
Net loss	$	(131	)

	March 31, 2021			December 31, 2020
	(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	276		$	516
Restricted cash		40			30
Accounts, notes and other receivables – net		450			430
Accounts and other receivables from non-debtor affiliates		263			240
Inventories – net		178			166
Other current assets		75			91
Total current assets		1,282			1,473
Investments and long-term receivables		8			6
Investment in subsidiaries		888			883
Property, plant and equipment – net		304			319
Goodwill		193			193
Deferred income taxes		229			236
Other assets		89			93
Total assets	$	2,993		$	3,203
LIABILITIES
Current liabilities:
Accounts payable	$	597		$	497
Borrowings under revolving credit facility		370			370
Current maturities of long-term debt		6			—
Debtor-in-possession Term Loan		100			200
Accrued liabilities		135			106
Total current liabilities		1,208			1,173
Long-term debt		1,049			1,082
Other liabilities		29			22
Total liabilities not subject to compromise		2,286			2,277
Liabilities subject to compromise
External		2,107			2,290
With non-debtor affiliates		488			528
Total liabilities subject to compromise		2,595			2,818
Total liabilities	$	4,881		$	5,095
COMMITMENTS AND CONTINGENCIES (Note 18)
EQUITY (DEFICIT)
Total deficit attributable to the Debtors		(1,888	)		(1,892	)
Total liabilities and deficit	$	2,993		$	3,203

	For the Three Months Ended March 31,
	2021
	(Dollars in millions)
Cash Flows from operating activities:
Net cash used for operating activities	$	(100	)
Cash Flows from investing activities:
Expenditures for property, plant and equipment		(5	)
Other		1
Net cash used for investing activities		(4	)
Cash Flows from financing activities:
Payments of debtor-in-possession financing		(100	)
Debtor-in-possession financing fees		(1	)
Net cash used for financing activities		(101	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		(26	)
Net decrease in cash, cash equivalents and restricted cash		(231	)
Cash, cash equivalents and restricted cash at beginning of period		547
Cash, cash equivalents and restricted cash at end of period	$	316

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Reorganization and Chapter 11 Proceedings - Additional Information (Details)												3 Months Ended	12 Months Ended
	Mar. 17, 2021 USD ($)	Mar. 09, 2021 USD ($) $ / shares	Mar. 08, 2021 $ / shares	Feb. 15, 2021 USD ($)	Jan. 11, 2021 USD ($) $ / shares	Oct. 22, 2020 USD ($)	Oct. 09, 2020 USD ($)	Oct. 06, 2020	Sep. 04, 2020	Jun. 12, 2020 USD ($)	Sep. 27, 2018 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Apr. 26, 2021 USD ($) Claim	Sep. 20, 2020	Jun. 12, 2020 EUR (€)	Sep. 27, 2018 EUR (€)
Reorganization And Chapter11 Proceedings [Line Items]
Professional and filing fees by debtor												$ 84,000,000
Payment of debt issuance costs											$ 37,000,000
Write-off of pre-petition unamortized debt issuance costs													$ 6,000,000
Line of credit, interest rate terms												Following commencement of the Chapter 11 Cases, the contractual non-default rate of interest that is applicable under Senior Secured Credit Facilities is either (a) in the case of dollar denominated borrowings, base rate determined by reference to the highest of (1) the rate of interest last quoted by The Wall Street Journal as the “prime rate” in the United States, (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5% and (3) the one month adjusted LIBOR rate, plus 1% per annum (“ABR”), (b) in the case of borrowings denominated in certain permitted foreign currencies other than dollars or euros, an adjusted LIBOR rate (“LIBOR”) (which shall not be less than zero), or (c) in the case of borrowings denominated in euros, an adjusted EURIBOR rate (“EURIBOR”) (which shall not be less than zero), in each case, plus an applicable margin.
Subsequent Event
Reorganization And Chapter11 Proceedings [Line Items]
Number of proofs of claim filed \| Claim														2,487
Unsecured claims amount														$ 146,000,000,000
Senior Secured Credit Facilities \| Federal Funds Effective Rate and Overnight Bank Funding Rate
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate								0.50%
Senior Secured Credit Facilities \| LIBOR Loans
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate								1.00%
RSA
Reorganization And Chapter11 Proceedings [Line Items]
Aggregate outstanding principal amount of loan percentage															61.00%
2020 Amended Credit Agreement \| Senior Secured Credit Facilities
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate									0.25%
Maximum
Reorganization And Chapter11 Proceedings [Line Items]
Professional and filing fees by debtor		$ 25,000,000
Term Loan Facility
Reorganization And Chapter11 Proceedings [Line Items]
Debtor-in-possession financing, committed amount upon emergence					$ 1,250,000,000
Revolving Credit Facility
Reorganization And Chapter11 Proceedings [Line Items]
Debtor-in-possession financing, committed amount upon emergence					$ 300,000,000
Payment of debt issuance costs											6,000,000
Revolving Credit Facility \| Credit Agreement \| Senior Secured Credit Facilities
Reorganization And Chapter11 Proceedings [Line Items]
Line of credit, term										5 years
Line of credit, maximum borrowing capacity \| €																€ 430,000,000
Term B Facility \| Senior Secured Credit Facilities \| ABR Loans
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate								2.50%
Term B Facility \| Senior Secured Credit Facilities \| EURIBOR Loans
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate										3.75%
Term B Facility \| Credit Agreement \| Senior Secured Credit Facilities
Reorganization And Chapter11 Proceedings [Line Items]
Line of credit, term										7 years
Line of credit, maximum borrowing capacity										$ 425,000,000						375,000,000
Term B Facility \| 2020 Amended Credit Agreement \| Senior Secured Credit Facilities
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate										0.75%
Term A Facility \| Credit Agreement \| Senior Secured Credit Facilities
Reorganization And Chapter11 Proceedings [Line Items]
Line of credit, term										5 years
Line of credit, maximum borrowing capacity \| €																€ 330,000,000
Term A Facility \| 2020 Amended Credit Agreement \| Senior Secured Credit Facilities
Reorganization And Chapter11 Proceedings [Line Items]
Debt instrument applicable margin rate										0.25%
5.125% Senior Notes Due 2026
Reorganization And Chapter11 Proceedings [Line Items]
Senior notes											$ 410,000,000	$ 412,000,000	$ 429,000,000				€ 350,000,000
Debt instrument, annual fixed interest rate											5.125%						5.125%
Debt instrument maturity date											Oct. 15, 2026
Stalking Horse Bidder and AMP U.S. Holdings, LLC
Reorganization And Chapter11 Proceedings [Line Items]
Winning bid selected												$ 2,100,000,000
Stalking Horse Bidder
Reorganization And Chapter11 Proceedings [Line Items]
Bankruptcy proceedings, date petition for bankruptcy Filed					Jan. 11, 2021
Termination payment					$ 63,000,000
Reimbursement payment expense					$ 15,700,000
CO Group \| PSA
Reorganization And Chapter11 Proceedings [Line Items]
Common stock exchange rate for cancellation per share \| $ / shares					$ 6.25
Professional and filing fees by debtor				$ 25,000,000
Estimated professional and filing fees by debtor				$ 82,000,000
CO Group \| Series A Preferred Stock
Reorganization And Chapter11 Proceedings [Line Items]
Equity method investment aggregate amount in cash		668,800,000
Equity method investment maximum aggregate value		$ 632,000,000			$ 632,000,000
Conversion price \| $ / shares		$ 5.25	$ 3.50
CO Group \| Series A Preferred Stock \| Centerbridge and Oaktree
Reorganization And Chapter11 Proceedings [Line Items]
Equity method investment aggregate amount in cash					$ 668,800,000
DIP Agent and DIP Lenders \| DIP Term Loan Facility
Reorganization And Chapter11 Proceedings [Line Items]
Debtor-in-possession, date of approval by Bankruptcy court								Oct. 06, 2020
Principal amount to be funded						$ 100,000,000	$ 100,000,000
Debtor-in-possession financing maturity date	Apr. 30, 2021							Mar. 31, 2021
Debtor-in-possession financing extensions description												The original maturity date of the DIP Term Loan Facility was the earlier to occur of (a) March 31, 2021 (the “Scheduled Maturity Date”); provided, however, that upon the Company’s written request such Scheduled Maturity Date can be extended by three separate one-month extensions subject to (i) the payment of an extension fee to the Lenders equal to 0.50% of the principal amount of the Loans outstanding at the time of such extension, (ii) no default or Event of Default (as defined in the DIP Credit Agreement) existing at the time of such extension and (iii) accuracy of the representations and warranties in all material respects at the time of such extension and after giving effect thereto; and (b) the effective date of a plan of reorganization; and certain other events under the DIP Credit Agreement. On March 17, 2021, the Company prepaid $100 million that was previously outstanding under the DIP Credit Agreement, and on March 31, 2021 the Company exercised its first extension option and extended the maturity date for the loans remaining outstanding under the DIP Credit Agreement to April 30, 2021.
Principal amount of loans outstanding percentage								0.50%
Debtor-in-possession financing prepaid outstanding loan	$ 100,000,000
Debtor-in-possession interest rate description												Following the exercise by the Company of its initial maturity date extension option, the outstanding principal amount under the DIP Term Loan Facility bears interest at a rate equal to LIBOR (subject to a 1.00% LIBOR floor) plus 5.50% per annum payable every 30 days in arrears. On the Closing Date, the Company paid 1.00% in commitment fees on the total commitment plus 2.00% in fees in the form of original issue discount on the initial $100 million borrowing. On the Delayed Draw Borrowing Date, the Company paid 2.00% in fees in the form of original issue discount on the $100 million delayed draw loan. Upon an event of default, all outstanding amounts under the DIP Credit Agreement will bear interest at a rate equal to the applicable interest rate plus an additional 2.00% per annum and be payable on demand.
Debtor-in-possession financing,floor rate												1.00%
Debtor-in-possession financing,LIBOR rate												5.50%
Debtor-in-possession financing commitment fees percentage												1.00%
Debtor-in-possession financing commitment fees issue discount on initial borrowing percentage							2.00%
Initial draw of principal amount borrowed							$ 100,000,000
Debtor-in-possession financing, commitment fees issue discount on delayed draw loan percentage						2.00%
Delayed draw of principal amount borrowed						$ 100,000,000
Debtor-in-possession financing,additional interest rate												2.00%
DIP Agent and DIP Lenders \| Maximum \| DIP Term Loan Facility
Reorganization And Chapter11 Proceedings [Line Items]
Principal amount to be funded							$ 200,000,000

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3. Summary of Significant Accounting Policies

The accounting policies of the Company are set forth in Note 3 to the audited annual Consolidated and Combined Financial Statements for the year ended December 31, 2020 included in our 2020 Form 10-K. There were no new accounting pronouncements adopted during the three months ended March 31, 2021.

Reclassifications

Certain reclassifications have been made to prior year amounts to conform to current year classifications, specifically certain items that had been previously recorded in selling, general and administrative expenses presented now within cost of goods sold. The reclassifications had no impact on net income, equity, or cash flows as previously reported.

Recently Issued Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of 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. In January 2021, the FASB issued clarification on the scope of relief related to the reference rate reform. The Company is currently evaluating the impact of the guidance related to certain existing debt agreements on our Consolidated Financial Statements.

There are no other recently issued, but not yet adopted, accounting pronouncements which are expected to have a material impact on the Company’s Consolidated Interim Financial Statements and related disclosures.

Research, Development & Engineering (Tables)

3 Months Ended

Mar. 31, 2021

Research And Development [Abstract]

Summary of Research, Development & Engineering Activities

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 March 31,
	2021		2020
	(Dollars in millions)
Research and development costs	$	33	$	30
Engineering-related expenses		6		6
	$	39	$	36

Accounts, Notes and Other Receivables—Net (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Accounts, Notes and Other Receivables Net

	March 31, 2021			December 31, 2020
	(Dollars in millions)
Trade receivables	$	672		$	625
Notes receivables		70			152
Other receivables		75			77
		817			854
Less—Allowance for doubtful accounts		(10	)		(13	)
	$	807		$	841

Pension Benefits

3 Months Ended

Mar. 31, 2021

Compensation And Retirement Disclosure [Abstract]

Pension Benefits

Note 19. 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 2021. 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 2021, of which $1 million has been contributed through the first three months of the year.

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

	Three Months Ended March 31,
	U.S. Plans						Non-U.S. Plan,
	2021			2020			2021			2020
	(Dollars in millions)
Service cost	$	—		$	—		$	3		$	2
Interest cost		1			1			—			—
Expected return on plan assets		(3	)		(3	)		(2	)		(1	)
	$	(2	)	$	(2	)	$	1		$	1

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.

- Definition

The entire disclosure for retirement benefits.

+ References

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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Advanced discounts to customers, non-current	$ 68	$ 70
Operating right-of-use assets (Note 14)	$ 36	$ 36
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Other	$ 27	$ 29
Total	$ 131	$ 135

Reorganization and Chapter 11 Proceedings

3 Months Ended

Mar. 31, 2021

Reorganizations [Abstract]

Reorganization and Chapter 11 Proceedings

Note 2. Reorganization and Chapter 11 Proceedings

Key Events and Voluntary Petition for Reorganization

Due to the Company´s highly leveraged capital structure resulting from the Spin-Off, the Company began a strategic review process assisted by external financial advisers before the COVID-19 pandemic. The pandemic accelerated the review process to include the careful monitoring of liquidity and the consideration of potential court-supervised restructuring processes.

The strategic review process lasted months and considered a wide variety of options, including strategic mergers and stand-alone recapitalizations, both out-of-court and with the assistance of Chapter 11. The result of the Company’s strategic review process was the decision to commence a pre-filing marketing process for a cash sale of the business in Chapter 11, with the proceeds of the sale and any litigation recoveries related to the spin-off to be distributed to stakeholders. After the bidding process, the Company selected a winning bid of $2.1 billion from AMP Intermediate B.V. (the “Stalking Horse Bidder”) and AMP U.S. Holdings, LLC, each affiliate of KPS Capital Partners, LP, (“KPS”).

As described in greater detail below, the Stalking Horse Bidder and certain of the Debtors entered into a share and asset purchase agreement (the “Stalking Horse Purchase Agreement”) on the Petition Date. The Stalking Horse Purchase Agreement constituted a “stalking horse” bid that was subject to higher and better offers by third parties in accordance with the bidding procedures approved by the Bankruptcy Court in an order entered by the Bankruptcy Court after hearings on October 21, 2020 and October 23, 2020 (the “Bidding Procedures Order”). The Bidding Procedures Order permitted third parties to submit competing proposals for the purchase and/or reorganization of the Debtors and approved stalking horse protections for the Stalking Horse Bidder.

Following entry into the Stalking Horse Purchase Agreement, the Chapter 11 Cases were commenced on the Petition Date. The Debtors filed certain motions and applications intended to limit the disruption of the Chapter 11 Cases on their operations. Since the commencement of the Chapter 11 Cases, the Debtors have continued to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.

The Bankruptcy Court granted the first day relief the Debtors requested that was designed primarily to mitigate the impact of Chapter 11 Cases on our operations, customers and employees. As a result, we are able to conduct normal business activities and pay all associated obligations for the period following the Petition Date and we are also authorized to pay prepetition employee wages and benefits and certain vendors and suppliers in the ordinary course for goods and services provided prior to the Petition Date. During the pendency of the Chapter 11 Cases, all transactions outside of the ordinary course of business require the prior approval of Bankruptcy Court.

In accordance with the Bidding Procedures Order, the Debtors held an auction (the “Auction”) at which they solicited and received higher and better offers from KPS and from a consortium made up of Owl Creek Asset Management, L.P., Warlander Asset Management, L.P., Jefferies LLC, Bardin Hill Opportunistic Credit Master Fund LP, Marathon Asset Management L.P., and Cetus Capital VI, L.P., or affiliates thereof (collectively, the “OWJ Group”). In addition to the bids received at the Auction from KPS and the OWJ Group, the Debtors also received a transaction proposal in parallel to the Auction from Centerbridge Partners, L.P. (“Centerbridge”), Oaktree Capital Management, L.P. (“Oaktree”), Honeywell International Inc. and certain other investors and parties (collectively, the “CO Group”). The Auction was completed on January 8, 2021, at which point the Debtors filed with the Bankruptcy Court (i) an auction notice noting that a bid received from KPS was the successful bid at the Auction but that the Debtors were still considering the proposal from the CO Group, (ii) a plan of reorganization (as may be amended, restated, supplemented or otherwise modified from time to time, the “Plan”) and (iii) a related disclosure statement (as may be amended, restated, supplemented or otherwise modified from time to time, the “Disclosure Statement”).

On January 11, 2021, the Debtors, having determined that the proposal from the CO Group was a higher and better proposal than the successful bid of KPS at the Auction, entered into a Plan Support Agreement with the CO Group (as amended, restated, supplemented or otherwise modified from time to time, the “PSA”) and announced their intention to pursue a restructuring transaction with the CO Group (the “Transaction”). As a result of the entry into the PSA, (i) the Debtors filed a supplemental auction notice with the Bankruptcy Court on January 11, 2021 describing the Debtors’ determination to proceed with the Transaction, (ii) the Debtors filed a revised Plan and related revised disclosure statement with the Bankruptcy Court on January 22, 2021 to implement the Transaction and (iii) the Stalking Horse Purchase Agreement became terminable, following which, on January 15, 2021, the Stalking Horse Bidder terminated the Stalking Horse Purchase Agreement and the Debtors subsequently paid a termination payment of $63 million and an expense reimbursement payment of $ 15.7 million to the Stalking Horse Bidder pursuant to the terms of the Stalking Horse Purchase Agreement and the Bidding Procedures Order.

In accordance with the terms of the PSA, on January 22, 2021, the Debtors’ entered into an Equity Backstop Commitment Agreement (as amended, restated, supplemented, replaced or otherwise modified from time to time, the “EBCA”) with certain members of the CO Group (the “Original Backstop Parties”), pursuant to which, among other things, the Company would conduct the rights offering contemplated by the PSA (as modified pursuant to the PSA from time to time, the “Rights Offering”) and each Original Backstop Party committed to (i) exercise its rights, as a stockholder of the Company, to purchase in the Rights Offering shares of the convertible Series A preferred stock of the Company to be offered in the Rights Offering (the “Series A Preferred Stock”) and (ii) purchase, on a pro rata basis (in accordance with percentages set forth in the EBCA), shares of Series A Preferred Stock which were offered but not subscribed for in the Rights Offering.

On January 24, 2021, representatives of the official committee of equity securities holders (the “Equity Committee”) submitted a restructuring term sheet for a proposed plan of reorganization sponsored by Atlantic Park. The Equity Committee subsequently filed with the Bankruptcy Court on February 5, 2021, a proposed plan of reorganization and related disclosure statement with respect to such transaction (as reflected in the proposed plan of reorganization filed with the Bankruptcy Court, the “Atlantic Park Proposal”). The transactions contemplated under the Atlantic Park Proposal were proposed as an alternative to the transactions contemplated under the Plan. In connection with the Atlantic Park Proposal, the Equity Committee filed a motion with the Bankruptcy Court seeking to modify the Debtors’ exclusive periods to file and solicit votes on a Chapter 11 plan (the “Equity Committee Exclusivity Motion”). On February 9, 2021, the Equity Committee filed an objection to the Debtors’ motion seeking authority to enter into and perform under the PSA and the EBCA (the “Equity Committee Objection”). The Company had significant concerns with the feasibility of the Atlantic Park Proposal and concluded at the time that the transactions contemplated under the Atlantic Park Proposal were not

reasonably likely to lead to a higher and better alternative plan of reorganization as compared to the Plan. The Equity Committee filed a revised proposed plan of reorganization and disclosure statement in connection with the Atlantic Park Proposal with the Bankruptcy Court on February 15, 2021.

On February 15, 2021, the Debtors and the CO Group agreed with certain of the Consenting Lenders to amend and restate the PSA so as to, among other things, add certain of the Consenting Lenders as parties thereto supporting the Plan.

Following a hearing in the Bankruptcy Court on February 16, 2021, the Debtors, the CO Group, the Equity Committee and certain additional parties agreed to proceed with a court-approved mediation process to attempt to reach a consensual resolution regarding the Equity Committee Exclusivity Motion and the Equity Committee Objection.

Through the mediation, the Debtors, the CO Group, the Equity Committee and the additional parties to the mediation, reached a consensual resolution regarding certain aspects of the Plan, and on March 9, 2021, the PSA was subsequently amended and restated, and a replacement EBCA among the Debtors and certain of the Additional Investors (the “Equity Backstop Parties”) was entered into, to provide for, among other things: (i) a direct equity investment of $668.8 million by Centerbridge and Oaktree to purchase the Series A Preferred Stock to be issued pursuant to the Plan, (ii) two Rights Offerings in an aggregate amount of $632 million (including an allocation of subscription rights to the Equity Backstop Parties as consideration for their agreement to backstop the Rights Offerings), and (iii) an increase of the conversion price to common stock of the Series A Preferred Stock from $3.50 to $5.25. On March 9, 2021 the Debtors filed amended versions of the Plan and Disclosure Statement with the Bankruptcy Court to reflect this consensual resolution. On March 12, 2021 the Bankruptcy Court entered orders approving the Disclosure Statement, the proposed procedures for solicitation of votes on the Plan and the Debtors’ entry into and performance and obligations under the PSA and the EBCA, which remain subject to customary closing conditions. On March 12, 2021 the Debtors filed the solicitation versions of the Plan and Disclosure Statement with the Bankruptcy Court.

As contemplated by the Plan, the Company filed a supplement to the Plan (as amended, restated, supplemented or otherwise modified from time to time, the “Plan Supplement”) with the Bankruptcy Court on April 9, 2021, which includes drafts of certain documents related to the Plan and referenced therein. On April 20, 2021, and April 22, 2021, the Debtors filed amended Plan Supplements reflecting updates and other changes and corrections to certain of the draft documentation. Also, on April 20, 2021, the Debtors also filed an amended version of the Plan, reflecting, among other things, revised treatment of certain claims and certain other technical changes and corrections. Following a hearing in the Bankruptcy Court on April 23, 2021, the Debtors filed a further amended Plan on April 26, 2021.

On April 26, 2021, the Bankruptcy Court entered an order (the “Confirmation Order”), among other things, confirming the Plan. The Company expects that the effective date of the Plan (the “Effective Date”) will occur as soon as all conditions precedent to the Plan have been satisfied, which the Company is targeting for April 30, 2021. Although the Company is targeting occurrence of the Effective Date on April 30, 2021, the Company can make no assurances as to when, or ultimately if, the Plan will become effective.

Plan Support Agreement and Equity Backstop Commitment Agreement

On the Petition Date, certain of the Debtors entered into the Stalking Horse Purchase Agreement with the Stalking Horse Bidder, pursuant to which the Stalking Horse Bidder agreed to purchase, subject to the terms and conditions contained therein, substantially all of the assets of the Debtors. The Stalking Horse Purchase Agreement constituted a “stalking horse” bid that was subject to higher and better offers by third parties in accordance with the bidding procedures approved by the Bidding Procedures Order. The Bidding Procedures Order permitted third parties to submit competing proposals for the purchase and/or reorganization of the Debtors and approved stalking horse protections for the Stalking Horse Bidder. In accordance with the Bidding Procedures Order, the Debtors held the Auction at which they solicited and received higher and better offers from KPS and the OWJ Group. In addition to the bids received at the Auction from KPS and the OWJ Group, the Debtors also received a transaction proposal in parallel from the CO Group. The Auction was completed on January 8, 2021, at which point the Debtors filed with the Bankruptcy Court (i) an auction notice noting that a bid received from KPS was the successful bid at the Auction but that the Debtors were still considering the proposal from the CO Group, (ii) a Plan and (iii) a related Disclosure Statement.

On January 11, 2021, the Debtors, having determined that the proposal from the CO Group was a higher and better proposal than the successful bid of KPS at the Auction, entered into the PSA and announced their intention to pursue the Transaction. As a result of the entry into the PSA, (i) the Debtors filed a supplemental auction notice with the Bankruptcy Court on January 11, 2021 describing the Debtors’ determination to proceed with the Transaction, (ii) the Debtors filed a revised Plan and a related revised Disclosure Statement with the Bankruptcy Court on January 22, 2021 to implement the Transaction and (iii) the Stalking Horse Purchase Agreement became terminable, following which, on January 15, 2021, the Stalking Horse Bidder terminated the Stalking Horse Purchase Agreement and the Debtors subsequently paid a termination payment of $63 million and an expense reimbursement payment of $15.7 million to the Stalking Horse Bidder pursuant to the terms of the Stalking Horse Purchase Agreement and the Bidding Procedures Order. The subsequent payment was recorded in Reorganization items, net in the first quarter of 2021, due to the termination notice by KPS. On February 15, 2021, the Debtors and the CO Group agreed with certain of the Consenting Lenders to

amend and restate the PSA so as to, among other things, add certain of the Consenting Lenders as parties thereto. On March 9, 2012, the PSA was subsequently amended and restated to reflect changes agreed to among the Debtors, the CO Group, the Equity Committee and other parties during the court-approved mediation process.

Under the PSA, the material terms of the Transaction include:

•

Committed direct equity investment in the form of Series A Preferred Stock of the reorganized Company by Centerbridge and Oaktree in the amount of $668.8 million in the aggregate in cash;

•

Two Rights Offerings of the reorganized Company’s Series A Preferred Stock for a maximum aggregate value of $632 million (including an allocation of subscription rights to the Equity Backstop Parties as consideration for their agreement to backstop the Rights Offerings) to existing holders of the Company’s common stock, backstopped by the Equity Backstop Parties on a fully committed basis;

•

Holders of shares of the Company’s existing common stock may effectively retain their shares or, at each stockholder’s election (unless such stockholder is a party to the PSA), receive cash at $6.25 per share in exchange for cancellation of their shares;

•

Re-listing of the reorganized Company’s common stock on a national securities exchange;

•

Payment in full of all customer, supplier, trade, vendor, employee, pension, regulatory, environmental and other liabilities of the Debtors and their worldwide subsidiaries; and

•

A final global settlement for substantially all claims by Honeywell International Inc. and its affiliates (including spin-off-related claims, but excluding claims arising under ordinary course business dealings);

•

Committed debt financing for the reorganized Debtors upon Emergence, consisting of an approximately $1,250 million term loan facility and an approximately $300 million revolving credit facility at Emergence.

The PSA contains customary representations, warranties and covenants. The PSA is subject to certain termination events, subject to certain exceptions, including (a) the breach by any party of any of the representations, warranties, covenants, obligations or commitments set forth therein, where such breach would materially and adversely interfere with the Transaction and remains uncured; (b) the issuance by any governmental authority of an order that would have an adverse effect on a material provision of the PSA or a material portion of the Transaction or the Plan or a material adverse effect on the Debtors’ business; (c) an examiner, trustee or receiver is appointed in the Chapter 11 Cases; (d) conversion of one or more of the Chapter 11 Cases to cases under Chapter 7 of the Bankruptcy Code or dismissal of any of the Chapter 11 Cases; (e) if any of the restructuring documents after completion (i) contain terms, conditions, representations, warranties or covenants that are materially inconsistent with the terms of the PSA, (ii) are materially and adversely amended or modified with respect to the terminating party or (iii) are withdrawn without the consent of the applicable party; (f) if any party proposes, supports, assists, solicits or files a pleading seeking approval of any alternative transaction without the prior written consent of certain parties; (g) if, on or after April 19, 2021, the Plan is not filed with the Bankruptcy Court, subject to certain extensions; (h) if the effective date of the Plan has not occurred by June 30, 2021, subject to certain extensions; (i) if the Bankruptcy Court grants relief that is inconsistent with the PSA in any material respect or that would materially frustrate the purposes of the PSA; or (j) by the Debtors, if their boards of directors reasonably determine in good faith after receiving the advice of outside counsel that the Debtors’ continued performance under the PSAs would be inconsistent with the exercise of such boards’ fiduciary duties under applicable law.

The PSA provides for the reimbursement by the Debtors of professional fees and expenses of the CO Group, subject to an interim cap of $25 million prior to Emergence and with the balance to be paid at Emergence, and certain of the Consenting Lenders and Consenting Noteholders. As of February 15, 2021, the CO Group estimated that the aggregate amount of professional fees and expenses expected to be payable by the Debtors under the PSA (inclusive of any amounts payable prior to Emergence) was approximately $82 million.

On March 9, 2021 the Debtors entered into the replacement EBCA with the Equity Backstop Parties, pursuant to which, among other things, the Company will conduct the Rights Offerings and each Equity Backstop Party committed to (i) exercise its rights, as a stockholder of the Company, to purchase in the Rights Offerings shares of the Series A Preferred Stock and (ii) purchase, on a pro rata basis (in accordance with percentages set forth in the EBCA), shares of Series A Preferred Stock which were offered but not subscribed for in the Rights Offerings. The EBCA provides for the reimbursement by the Debtors of professional fees and expenses and filing fees incurred by the Equity Backstop Parties in connection with the Chapter 11 Cases in an aggregate amount that, together with and inclusive of amounts to be reimbursed pursuant to the PSA, do not exceed $25 million prior to Emergence. The EBCA further provides for indemnification by the Debtors of losses, claims, damages, liabilities, costs and expenses incurred by the Equity Backstop Parties in connection with the Transaction.

The EBCA contains customary representations, warranties and covenants. The EBCA is subject to certain termination events, including, without limitation, (a) by mutual agreement of the parties, (b) by the Company following an uncured breach of a representation, warranty or covenant in the EBCA by an Equity Backstop Party, or (c) by the Equity Backstop Parties constituting each of Centerbridge, Oaktree and a number of the other Equity Backstop Parties holding at least a majority of the rights to purchase Series A Preferred Stock pursuant to the PSA (excluding any such rights held by Centerbridge and Oaktree) following an uncured breach by the Debtors of a representation, warranty or covenant in the EBCA. The EBCA will automatically terminate if the Plan Support Agreement terminates with respect to the rights and obligations of the Debtors prior to the occurrence of the effective date of the Plan in accordance with its terms.

Restructuring Support Agreement

On the Petition Date, the Debtors entered into a Restructuring Support Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “RSA”) with consenting lenders (the “Consenting Lenders”) holding, in the aggregate, approximately 61% of the aggregate outstanding principal amount of loans under the Prepetition Credit Agreement. Pursuant to the RSA, the Consenting Lenders and the Debtors agreed to the principal terms of a financial restructuring, which will be implemented through a plan of reorganization under the Bankruptcy Code and which could include the sale of all or substantially all of the assets of certain Debtors and of the stock of certain Debtors and other subsidiaries, as further described below. On January 6, 2021, the Debtors and Consenting Lenders holding no less than a majority of the aggregate outstanding principal amount of loans under the Prepetition Credit Agreement then held by all Consenting Lenders entered into Amendment No. 1 to the Restructuring Support Agreement (the “Amendment”), which, among other things, extended certain milestones contained in the RSA.

The RSA provides that the Consenting Lenders will support the Debtors’ restructuring efforts, including the approval of the Plan, as set forth in, and subject to the terms and conditions of, the RSA. In addition, the Consenting Lenders agreed to the Debtors’ entry into the DIP Term Loan Facility (as defined below) discussed below.

The RSA provides certain milestones for the Chapter 11 Cases. Failure of the Debtors to satisfy these milestones without a waiver or consensual amendment would provide the Requisite Consenting Lenders a termination right under the RSA. These milestones, as modified from time to time, include (a) no later than February 22, 2021, (i) the hearing to approve the Disclosure Statement shall have occurred and (ii) the Bankruptcy Court shall have entered an order approving the Disclosure Statement on a final basis, which shall be in form and substance reasonably acceptable to the Requisite Consenting Lenders; (b) no later than April 7, 2021, a hearing shall have occurred for approval of the Plan, and within 2 Business Days thereafter, the Bankruptcy Court shall have entered the Confirmation Order on a final basis, which shall be in form and substance reasonably acceptable to the Requisite Consenting Lenders; and (c) no later than April 30, 2021, (i) the Transaction shall have closed and (ii) the Plan Effective Date shall have occurred.

Plan of Reorganization

As described above, the Debtors filed the Plan and Disclosure Statement on January 8, 2021 and filed a revised Plan and revised Disclosure Statement on January 22, 2021 to implement the Transaction, with further amended versions of the Plan and Disclosure Statement filed with the Bankruptcy Court on February 15, 2021 and March 9, 2021. On March 12, 2021, the Debtors filed the solicitation versions of the Plan and the Disclosure Statement, and on April 20, 2021, the Debtors filed a further revised Plan. Following a hearing in the Bankruptcy Court on April 23, 2021, the Debtors filed a further revised Plan on April 26, 2021. On April 26, 2021, the Bankruptcy Court entered the Confirmation Order. It is possible that technical amendments could be made to the Plan prior to the Effective Date.

Chapter 11 Accounting

The Company has applied ASC 852 in preparing our Consolidated Interim Financial Statements. ASC 852 requires the financial statements for periods subsequent to the Petition Date to distinguish transactions and events that are directly associated with the Company's reorganization from the ongoing operations of the business. Accordingly, revenues, expenses, realized gains and losses, and provisions for losses directly resulting from the reorganization and restructuring shall be reported separately as Reorganization items, net in the Consolidated Interim Statements of Operations. In addition, the balance sheet distinguishes pre-petition liabilities subject to compromise from those pre-petition liabilities that are not subject to compromise and post-petition liabilities. Pre-petition liabilities that are not fully secured or those that have at least a possibility of not being repaid at the allowed claim amount have been classified as liabilities subject to compromise on the Consolidated Interim Balance Sheet at March 31, 2021.

Under the Bankruptcy Code, the Debtors may assume and assign or reject executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a prepetition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors of performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach subject, in the case of the rejection of unexpired leases of real property, to certain caps on damages. Counterparties to such rejected contracts or leases may assert unsecured claims in the Bankruptcy Court against the applicable Debtor’s estate for such damages. Generally, the assumption or assumption and assignment of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory

contract or unexpired lease and provide adequate assurance of future performance thereunder. Accordingly, any description of an executory contract or unexpired lease with a Debtor in this quarterly report, including where applicable a quantification of the Company’s obligations under any such executory contract or unexpired lease with a Debtor is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. The Plan provides for the assumption of all of the Debtors’ executory contracts and unexpired leases except for certain agreements with Honeywell.

Reorganization Items, Net

The Debtors have incurred and will continue to incur significant costs associated with the reorganization, including the write-off of original issue discount and deferred long-term debt fees on debt, a component of liabilities subject to compromise, costs of debtor-in-possession financing and legal and professional fees. The amount of these charges, which since the Petition Date are being expensed as incurred, are expected to significantly affect the Company’s results of operations. In accordance with applicable guidance, costs associated with the bankruptcy proceedings have been recorded as Reorganization items, net within the Company's Consolidated Interim Statements of Operations for the three months ended March 31, 2021.

Reorganization items, net, are comprised of the following for the three months ended March 31, 2021:

	Three Months Ended March 31,
	2021
	(Dollars in millions)
Advisor fees	$	84
DIP Financing fees		1
Bid termination and expense reimbursement		79
Other		10
Total reorganization items, net	$	174

Pre-petition Long-Term Debt during the Chapter 11 Cases

We are party to the Prepetition Credit Agreement, 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 Secured Credit Facilities”). The Prepetition Credit Agreement was amended on June 12, 2020 (the “2020 Amendment”).

On September 27, 2018, we completed the offering of €350 million (approximately $410 million based on exchange rates as of September 27, 2018) in aggregate principal amount of 5.125% senior notes due 2026 (the “Senior Notes”). The Senior Notes bear interest at a fixed annual interest rate of 5.125% and mature on October 15, 2026.

The Senior Notes were issued pursuant to an Indenture, dated September 27, 2018 (the “Indenture”), which, among other things and subject to certain limitations and exceptions, limits our ability and the ability of our restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness or issue certain disqualified equity interests and preferred shares, (ii) pay dividends or distributions on, or redeem or repurchase, capital stock and make other restricted payments, (iii) make investments, (iv) consummate certain asset sales or transfers, (v) engage in certain transactions with affiliates, (vi) grant or assume certain liens on assets to secure debt unless the Senior Notes are secured equally and ratably (vii) restrict dividends and other payments by certain of their subsidiaries and (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of our or our restricted subsidiaries’ assets.

All debt issuance costs, except for those associated to the Revolving Credit Facility, are deferred and recognized as a direct deduction to the related debt liability and are amortized to interest expense over the debt term. The Company paid approximately $37 million of debt issuance costs in connection with the Term A Facility, Term B Facility, and Senior Notes.

Debt issuance costs associated with the Revolving Credit Facility were capitalized in Other assets and are amortized to interest expense over the debt term. Approximately, $6 million of debt issuance costs were paid in connection with the Revolving Credit Facility issued on September 27, 2018.

As a result of the Chapter 11 Cases, and in order to adjust the carrying amount of the debt to the expected allowed claim amount in accordance with ASC 852, the Company expensed $6 million of deferred issuance costs related to the pre-petition Senior Notes which are not fully secured in 2020. These costs were recorded to Reorganization items, net, in the Consolidated Statement of Operations for the year ended December 31, 2020. Refer to Note 2, Reorganization and Chapter 11 Proceedings for further discussion.

The principal amounts outstanding on our Senior Secured Credit Facilities and the Senior Notes as of March 31, 2021 and December 31, 2020 are as follows:

	March 31,			December 31,
	2021			2020
	(Dollars in millions)
Senior Secured Credit Facilities ⁽¹⁾:
Term Loans	$	1,055		$	1,082
Borrowings under revolving credit facility		370			370
Total consolidated Secured Debt		1,425			1,452
Long-term debt, net subject to compromise ⁽²⁾:
Senior Notes		412			429
Total debt, prior to reclassification to Liabilities subject to compromise		1,837			1,881
Less: current portion		(376	)		(370	)
Less: Amounts reclassified to Liabilities subject to compromise		(412	)		(429	)
Total long-term debt	$	1,049		$	1,082

(1)

The Term A Facility, Term B Facility and Revolving Facility are fully secured. These continue to be accounted for under ASC 470.

(2)

The commencement of the Chapter 11 Cases constituted an event of default that accelerated the Company’s obligations and terminated undrawn commitments, as applicable, under the Prepetition Credit Agreement. The Prepetition Credit Agreement provides that as a result of the commencement of the Chapter 11 Cases, the principal, interest and all other amounts due thereunder shall be immediately due and payable. Any efforts to enforce the payment obligations under the Prepetition Credit Agreement are automatically stayed as a result of the Chapter 11 Cases, and the creditors’ rights of enforcement in respect of the Prepetition Credit Agreement are subject to the applicable provisions of the Bankruptcy Code.

During the Chapter 11 Cases and pursuant to an order of the Bankruptcy Court, we make monthly payments of adequate protection at the contractual non-default rate of interest on loans and certain other obligations under our Senior Secured Credit Facilities.

Following commencement of the Chapter 11 Cases, the contractual non-default rate of interest that is applicable under Senior Secured Credit Facilities is either (a) in the case of dollar denominated borrowings, base rate determined by reference to the highest of (1) the rate of interest last quoted by The Wall Street Journal as the “prime rate” in the United States, (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5% and (3) the one month adjusted LIBOR rate, plus 1% per annum (“ABR”), (b) in the case of borrowings denominated in certain permitted foreign currencies other than dollars or euros, an adjusted LIBOR rate (“LIBOR”) (which shall not be less than zero), or (c) in the case of borrowings denominated in euros, an adjusted EURIBOR rate (“EURIBOR”) (which shall not be less than zero), in each case, plus an applicable margin. Pursuant to the 2020 Amendment, (i) the margin applicable to loans under the Term B Facility increased by 75 basis points through the maturity date and (ii) the margin applicable to loans under the Revolving Facility and Term A Facility increased 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 (as defined in the 2020 Amendment). Pursuant to the 2020 Amendment, the margin applicable to loans under our Senior Secured Credit Facilities increased by 25 basis points on September 4, 2020 following a downgrade in our corporate credit rating by S&P Global ratings.

The applicable margin for the U.S. Dollar tranche of the Term B Facility is currently 2.50% per annum (for ABR loans) while that for the euro tranche of the Term B Facility is currently 3.75% per annum (for EURIBOR loans). The applicable margin for each of the Term A Facility and the Revolving Facility varies based on our leverage ratio. Accordingly, the interest rates for the Senior Secured Credit Facilities will fluctuate during the term of the Credit Agreement based on changes in the ABR, LIBOR, EURIBOR or future changes in our corporate rating or leverage ratio.

Financial Statement Classification of Liabilities Subject to Compromise

As a result of the Chapter 11 Cases, the payment of pre-petition liabilities is generally subject to compromise pursuant to a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims generally is not permitted, the Bankruptcy Court granted the Debtors authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Debtors’ business and assets. Among other things, the Bankruptcy Court authorized, but did not require, the Debtors to pay certain pre-petition claims relating to employee wages and benefits, taxes, critical vendors and foreign vendors. Pre-petition

liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for different amounts. The amounts classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determination of secured status of certain claims, the determination as to the value of any collateral securing claims, proof of claims or other events.

The following table presents liabilities subject to compromise as reported in the Consolidated Interim Balance Sheet at March 31, 2021 and December 31, 2020, respectively:

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Obligations payable to Honeywell (Note 18)	$	1,421	$	1,482
Long-term debt ⁽¹⁾		412		429
Pension, compensation, benefit and other employee related		82		92
Uncertain tax positions and deferred taxes		61		69
Accounts payable		35		82
Advanced discounts from suppliers		28		33
Lease liability (Note 14)		17		19
Product warranties and performance guarantees		16		16
Freight Accrual		—		27
Other		35		41
Total liabilities subject to compromise	$	2,107	$	2,290

(1)

Please see above Pre-petition Long-Term Debt during the Chapter 11 Cases sub-section for details of the pre-petition debt reported as liabilities subject to compromise.

As discussed above, the Confirmation Order has been entered. The amounts in the table above represent the best estimate of our pre-petition liabilities of that date.

Potential Claims

On November 3, 2020, the Debtors filed with the Bankruptcy Court schedules and statements for Garrett Motion Inc., Garrett Motion Holdings Inc., Garrett ASASCO Inc. and Garrett Motion Holdings II Inc. (collectively, the “Initial Reporting Debtors”), setting forth, among other things, the assets and liabilities of each of the Initial Reporting Debtors, subject to the assumptions filed in connection therewith. On December 18, 2020, the Debtors filed with the Bankruptcy Court schedules and statements for each of the remaining Debtors, setting forth, among other things, the assets and liabilities of each of the remaining Debtors, subject to the assumptions filed in connection therewith. These schedules and statements are subject to further amendment or modification. As part of the Chapter 11 Cases, parties believing that they have claims or causes of action against the Debtors may file proofs of claim evidencing such claims. All holders of pre-petition claims against the Initial Reporting Debtors were required to have submitted proofs of claim with respect to such claims by December 18, 2020 (other than holders of claims under U.S. securities laws, which were required to have submitted proofs of claim with respect to such claims by March 1, 2021). All holders of governmental pre-petition claims against the Initial Reporting Debtors are required to submit proofs of claim with respect to such claims by May 3, 2021. All holders of pre-petition claims against the remaining Debtors were required to have submitted proofs of claim with respect to such claims by March 1, 2021. All holders of governmental pre-petition claims against the remaining Debtors are required to submit proofs of claim with respect to such claims by June 14, 2021.

The Debtors' have received 2,487 proofs of claim as of April 26, 2021, for an amount of approximately $146 billion. Such amount includes duplicate claims across multiple debtor legal entities. As claims are filed against the Debtors, the claims will be reconciled to amounts recorded in the Company's accounting records. Differences in amounts recorded and claims filed by creditors will be investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. In addition, the Company may ask the Bankruptcy Court to disallow claims that the Company believes are duplicative, have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. In light of the substantial number of claims already filed, and expected to be filed, the claims resolution process may take considerable time to complete and may continue after the Debtors emerge from bankruptcy. As of April 26, 2021 the Company’s assessment of the validity of claims received has not been completed.

DIP Credit Agreement

On October 6, 2020, the Bankruptcy Court entered an order granting interim approval of the Debtors’ entry into a Senior Secured Super-Priority Debtor-in-Possession Credit Agreement (the “DIP Credit Agreement”), with the lenders party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “DIP Lenders”) and Citibank N.A. as administrative

agent (the “DIP Agent”). On October 9, 2020 (the “Closing Date”), the Company, the DIP Agent and the DIP Lenders entered into the DIP Credit Agreement. The DIP Credit Agreement provides for a senior secured, super-priority term loan (the “DIP Term Loan Facility”) with a maximum principal amount of $200 million, $100 million of which was funded on the Closing Date and $100 million of which was subsequently funded on October 22, 2020 (the “Delayed Draw Borrowing Date”), following entry of the Bankruptcy Court’s final order approving the DIP Term Loan Facility on October 21, 2020. The proceeds of the DIP Term Loan Facility are to be used by the Debtors to (a) pay certain costs, premiums, fees and expenses related to the Chapter 11 Cases, (b) make payments pursuant to any interim or final order entered by the Bankruptcy Court pursuant to any “first day” motions permitting the payment by the Debtors of any prepetition amounts then due and owing; (c) make certain adequate protection payments in accordance with the DIP Credit Agreement and (d) fund working capital needs of the Debtors and their subsidiaries to the extent permitted by the DIP Credit Agreement.

The original maturity date of the DIP Term Loan Facility was the earlier to occur of (a) March 31, 2021 (the “Scheduled Maturity Date”); provided, however, that upon the Company’s written request such Scheduled Maturity Date can be extended by three separate one-month extensions subject to (i) the payment of an extension fee to the Lenders equal to 0.50% of the principal amount of the Loans outstanding at the time of such extension, (ii) no default or Event of Default (as defined in the DIP Credit Agreement) existing at the time of such extension and (iii) accuracy of the representations and warranties in all material respects at the time of such extension and after giving effect thereto; and (b) the effective date of a plan of reorganization; and certain other events under the DIP Credit Agreement. On March 17, 2021, the Company prepaid $100 million that was previously outstanding under the DIP Credit Agreement, and on March 31, 2021 the Company exercised its first extension option and extended the maturity date for the loans remaining outstanding under the DIP Credit Agreement to April 30, 2021.

Following the exercise by the Company of its initial maturity date extension option, the outstanding principal amount under the DIP Term Loan Facility bears interest at a rate equal to LIBOR (subject to a 1.00% LIBOR floor) plus 5.50% per annum payable every 30 days in arrears. On the Closing Date, the Company paid 1.00% in commitment fees on the total commitment plus 2.00% in fees in the form of original issue discount on the initial $100 million borrowing. On the Delayed Draw Borrowing Date, the Company paid 2.00% in fees in the form of original issue discount on the $100 million delayed draw loan. Upon an event of default, all outstanding amounts under the DIP Credit Agreement will bear interest at a rate equal to the applicable interest rate plus an additional 2.00% per annum and be payable on demand.

Pursuant to the terms of the DIP Credit Agreement, certain subsidiaries of the Company that guarantee the obligations arising under the prepetition Credit Agreement and that are Debtors in the Chapter 11 Case have guaranteed the Company’s obligations under the DIP Credit Agreement. Subject to certain exceptions, the DIP Term Loan Facility is secured by a security interest in substantially all of the assets of the Company and the guarantors. The DIP Financing is subject to certain covenants, including, without limitation, related to the incurrence of additional debt, liens, the making of restricted payments, and the Company’s failure to comply with certain bankruptcy-related covenants, in each case as set forth in the DIP Credit Agreement. The DIP Credit Agreement contains representations, warranties and events of default that are customary for debtor-in-possession facilities of this type. The DIP Financing is subject to certain prepayment events, including, without limitation, upon the sale of certain assets, in each case as set forth in the DIP Credit Agreement.

On October 12, 2020, the Company, the DIP Agent and the DIP Lenders entered into the First Amendment to the DIP Credit Agreement (the “First Amendment”). The First Amendment eliminates the obligation for the Company to pay certain fees to the DIP Lenders in connection with certain prepayment events under the DIP Credit Agreement.

The principal amounts outstanding on Debtor-in-possession financing as of March 31, 2021 and December 31, 2020 are as follows:

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Debtor-in-possession financing	$	100	$	200

Automatic Stay

Subject to certain specific exceptions under the Bankruptcy Code, the commencement of the Chapter 11 Cases automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities are subject to settlement in accordance with the Bankruptcy Code.

Condensed Combined Debtor Only Financial Information

	For the Three Months Ended March 31,
	2021
	(Dollars in millions)
Net sales	$	753
Cost of goods sold		602
Gross profit		151
Selling, general and administrative expenses		53
Interest expense		23
Non-operating expense		12
Reorganization items, net		174
Income before taxes		(111	)
Tax expense		20
Net loss	$	(131	)

	March 31, 2021			December 31, 2020
	(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	276		$	516
Restricted cash		40			30
Accounts, notes and other receivables – net		450			430
Accounts and other receivables from non-debtor affiliates		263			240
Inventories – net		178			166
Other current assets		75			91
Total current assets		1,282			1,473
Investments and long-term receivables		8			6
Investment in subsidiaries		888			883
Property, plant and equipment – net		304			319
Goodwill		193			193
Deferred income taxes		229			236
Other assets		89			93
Total assets	$	2,993		$	3,203
LIABILITIES
Current liabilities:
Accounts payable	$	597		$	497
Borrowings under revolving credit facility		370			370
Current maturities of long-term debt		6			—
Debtor-in-possession Term Loan		100			200
Accrued liabilities		135			106
Total current liabilities		1,208			1,173
Long-term debt		1,049			1,082
Other liabilities		29			22
Total liabilities not subject to compromise		2,286			2,277
Liabilities subject to compromise
External		2,107			2,290
With non-debtor affiliates		488			528
Total liabilities subject to compromise		2,595			2,818
Total liabilities	$	4,881		$	5,095
COMMITMENTS AND CONTINGENCIES (Note 18)
EQUITY (DEFICIT)
Total deficit attributable to the Debtors		(1,888	)		(1,892	)
Total liabilities and deficit	$	2,993		$	3,203

	For the Three Months Ended March 31,
	2021
	(Dollars in millions)
Cash Flows from operating activities:
Net cash used for operating activities	$	(100	)
Cash Flows from investing activities:
Expenditures for property, plant and equipment		(5	)
Other		1
Net cash used for investing activities		(4	)
Cash Flows from financing activities:
Payments of debtor-in-possession financing		(100	)
Debtor-in-possession financing fees		(1	)
Net cash used for financing activities		(101	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		(26	)
Net decrease in cash, cash equivalents and restricted cash		(231	)
Cash, cash equivalents and restricted cash at beginning of period		547
Cash, cash equivalents and restricted cash at end of period	$	316

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Millions	Mar. 31, 2021 USD ($)
Leases [Abstract]
2021	$ 9
2022	10
2023	7
2024	5
2025	4
Thereafter	8
Total lease payments	43
Less imputed interest	(6)
Operating lease, liabilities	$ 37
Operating Lease, Liability, Statement of Financial Position [Extensible List]	gtx:AccruedAndOtherNonCurrentLiabilitiesMember

Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Note 14. Leases

We have operating leases that primarily consist of real estate, machinery and equipment. Our leases have remaining lease terms of up to 10 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 March 31,
	2021		2020
	(Dollars in millions)
Operating lease cost	$	4	$	3

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

	Three Months Ended March 31,
	2021		2020
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3	$	2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1			—

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

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Other assets	$	36	$	36
Accrued liabilities		5		5
Other liabilities		14		15
Liabilities subject to compromise		17		19

	March 31,		December 31,
	2021		2020
Weighted-average lease term (in years)	5.02		5.14
Weighted-average discount rate	6.18	%	6.16	%

Maturities of operating lease liabilities were as follows:

	March 31, 2021
	(Dollars in millions)
2021	$	9
2022		10
2023		7
2024		5
2025		4
Thereafter		8
Total lease payments		43
Less imputed interest		(6	)
	$	37

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Customer pricing reserve	$ 87	$ 82
Compensation, benefit and other employee related	59	62
Taxes	29	37
Product warranties and performance guarantees	16	14
Repositioning	13	7
Advanced discounts from suppliers, current	5	5
Customer advances and deferred income	9	8
Short-term lease liability (Note 14)	5	5
Other (primarily operating expenses)	54	28
Accrued Liabilities	$ 277	$ 248

Other Expense, Net - Schedule of Other Operating Cost and Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Other Income And Expenses [Abstract]
Indemnification related — post Spin-Off		$ 15
Indemnification related — litigation		1
Factoring and notes receivables discount fees	$ 1
Other Expense, Net	$ 1	$ 16

Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 4	$ 3

Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Income taxes	$	47	$	45
Designated and undesignated derivatives		21		22
Pension and other employee related		18		14
Long-term lease liability (Note 14)		14		15
Advanced discounts from suppliers		10		11
Other		15		7
	$	125	$	114

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Net sales (Note 4)	$ 997	$ 745
Cost of goods sold	801	607
Gross profit	196	138
Selling, general and administrative expenses	55	57
Other expense, net (Note 6)	1	16
Interest expense (excludes contractual interest for the three months ended March 31, 2021 of $9 million) (Note 2)	21	16
Non-operating expense (income)	26	(4)
Reorganization items, net (Note 2)	174
(Loss) income before taxes	(81)	53
Tax expense (Note 7)	24	1
Net (loss) income	$ (105)	$ 52
Earnings (loss) per common share
Basic	$ (1.38)	$ 0.69
Diluted	$ (1.38)	$ 0.68
Weighted average common shares outstanding
Basic	75,904,898	75,040,932
Diluted	75,904,898	76,261,545

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Summary of Components of Lease Expense

The components of lease expense are as follows:

	Three Months Ended March 31,
	2021		2020
	(Dollars in millions)
Operating lease cost	$	4	$	3

Summary of Supplemental Cash Flow Information Related to Operating Leases

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

	Three Months Ended March 31,
	2021		2020
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3	$	2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1			—

Summary of Supplemental Balance Sheet Information Related to Operating Leases

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

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Other assets	$	36	$	36
Accrued liabilities		5		5
Other liabilities		14		15
Liabilities subject to compromise		17		19

	March 31,		December 31,
	2021		2020
Weighted-average lease term (in years)	5.02		5.14
Weighted-average discount rate	6.18	%	6.16	%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities were as follows:

	March 31, 2021
	(Dollars in millions)
2021	$	9
2022		10
2023		7
2024		5
2025		4
Thereafter		8
Total lease payments		43
Less imputed interest		(6	)
	$	37

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Tax Expense and Effective Tax Rate

	For the Three Months Ended March 31,
	2021			2020
	(Dollars in millions)
Tax expense	$	24		$	1
Effective tax rate		(29.6	)%		1.9	%

Reorganization and Chapter 11 Proceedings - Condensed Balance Sheets of Debtors (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 382	$ 592
Restricted cash	195	101
Accounts, notes and other receivables – net	807	841
Inventories – net	258	235
Other current assets	93	110
Total current assets	1,735	1,879
Investments and long-term receivables	30	30
Property, plant and equipment – net	484	505
Goodwill	193	193
Deferred income taxes	262	275
Other assets	131	135
Total assets	2,835	3,017
Current liabilities:
Accounts payable	1,099	1,019
Borrowings under revolving credit facility	370	370
Current maturities of long-term debt	6
Debtor-in-possession Term Loan	100	200
Accrued liabilities	277	248
Total current liabilities	1,852	1,837
Long-term debt	1,049	1,082
Other liabilities	125	114
Total liabilities not subject to compromise	3,028	3,035
Liabilities subject to compromise
Total liabilities subject to compromise	2,107	2,290
Total liabilities	5,135	5,325
COMMITMENTS AND CONTINGENCIES (Note 18)
EQUITY (DEFICIT)
Total deficit attributable to the Debtors	(2,300)	(2,308)	$ (2,046)	$ (2,133)
Total liabilities and deficit	2,835	3,017
Debtors
Current assets:
Cash and cash equivalents	276	516
Restricted cash	40	30
Accounts, notes and other receivables – net	450	430
Accounts and other receivables from non-debtor affiliates	263	240
Inventories – net	178	166
Other current assets	75	91
Total current assets	1,282	1,473
Investments and long-term receivables	8	6
Investment in subsidiaries	888	883
Property, plant and equipment – net	304	319
Goodwill	193	193
Deferred income taxes	229	236
Other assets	89	93
Total assets	2,993	3,203
Current liabilities:
Accounts payable	597	497
Borrowings under revolving credit facility	370	370
Current maturities of long-term debt	6
Debtor-in-possession Term Loan	100	200
Accrued liabilities	135	106
Total current liabilities	1,208	1,173
Long-term debt	1,049	1,082
Other liabilities	29	22
Total liabilities not subject to compromise	2,286	2,277
Liabilities subject to compromise
External	2,107	2,290
With non-debtor affiliates	488	528
Total liabilities subject to compromise	2,595	2,818
Total liabilities	4,881	5,095
COMMITMENTS AND CONTINGENCIES (Note 18)
EQUITY (DEFICIT)
Total deficit attributable to the Debtors	(1,888)	(1,892)
Total liabilities and deficit	$ 2,993	$ 3,203

Revenue Recognition and Contracts with Customers - Summary of Contract Assets and Liabilities (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Contract With Customer Asset And Liability [Abstract]
Contract assets—January 1	$ 61
Contract assets—March 31	65
Change in contract assets—Increase/(Decrease)	4
Contract liabilities—January 1	(2)
Contract liabilities—March 31	(1)
Change in contract liabilities—(Increase)/Decrease	$ 1

Accrued Liabilities

3 Months Ended

Mar. 31, 2021

Accrued Liabilities Current [Abstract]

Accrued Liabilities

Note 12. Accrued Liabilities

Due to the Chapter 11 filing, Accrued Liabilities that existed as of March 31, 2021 and December 31, 2020 and were deemed pre-petition, unsecured were reclassified as Liabilities subject to compromise, refer to Note 2, Reorganization and Chapter 11 Proceedings.

	March 31, 2021		December 31, 2020
	(Dollars in millions)
Customer pricing reserve	$	87	$	82
Compensation, benefit and other employee related		59		62
Taxes		29		37
Product warranties and performance guarantees		16		14
Repositioning		13		7
Advanced discounts from suppliers, current		5		5
Customer advances and deferred income^(a)		9		8
Short-term lease liability (Note 14)		5		5
Other (primarily operating expenses)		54		28
	$	277	$	248

(a)	Customer advances and deferred income include $1 million and $2 million of contract liabilities as of March 31, 2021 and December 31, 2020, respectively. See Note 4, Revenue Recognition and Contracts with Customers.

	Severance Costs			Exit Costs		Total
	(Dollars in millions)
Balance at December 31, 2019	$	3		$	1	$	4
Charges		5			—		5
Usage—cash		(2	)		—		(2	)
Balance at March 31, 2020	$	6		$	1	$	7

	Severance Costs			Exit Costs		Total
	(Dollars in millions)
Balance at December 31, 2020	$	7		$	—	$	7
Charges		8			—		8
Usage—cash		(2	)		—		(2	)
Balance at March 31, 2021	$	13		$	—	$	13

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 382	$ 592
Restricted cash	195	101
Accounts, notes and other receivables – net (Note 8)	807	841
Inventories – net (Note 10)	258	235
Other current assets	93	110
Total current assets	1,735	1,879
Investments and long-term receivables	30	30
Property, plant and equipment – net	484	505
Goodwill	193	193
Deferred income taxes	262	275
Other assets (Note 11)	131	135
Total assets	2,835	3,017
Current liabilities:
Accounts payable	1,099	1,019
Borrowings under revolving credit facility	370	370
Current maturities of long-term debt	6
Debtor-in-possession Term Loan (Note 2)	100	200
Accrued liabilities (Note 12)	277	248
Total current liabilities	1,852	1,837
Long-term debt	1,049	1,082
Deferred income taxes	2	2
Other liabilities (Note 13)	125	114
Total liabilities not subject to compromise	3,028	3,035
Liabilities subject to compromise (Note 2)	2,107	2,290
Total liabilities	5,135	5,325
COMMITMENTS AND CONTINGENCIES (Note 18)
EQUITY (DEFICIT)
Additional paid-in capital	30	28
Retained deficit	(2,312)	(2,207)
Accumulated other comprehensive loss (Note 16)	(18)	(129)
Total deficit	(2,300)	(2,308)
Total liabilities and deficit	$ 2,835	$ 3,017

Earnings (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings (Loss) Per Share

The details of the earnings (loss) per share (“EPS”) calculations for the three months ended March 31, 2021 and 2020 are as follows:

	Three Months Ended March 31,
	2021			2020
	(Dollars in millions except per share amounts)
Basic
Net (loss) income	$	(105	)	$	52
Weighted average common shares outstanding		75,904,898			75,040,932
EPS – Basic	$	(1.38	)	$	0.69

	Three Months Ended March 31,
	2021			2020
	(Dollars in millions except per share amounts)
Diluted
Net (loss) income	$	(105	)	$	52
Weighted average common shares outstanding – Basic		75,904,898			75,040,932
Dilutive effect of unvested RSUs and other contingently issuable shares		—			1,220,613
Weighted average common shares outstanding – Diluted		75,904,898			76,261,545
EPS – Diluted	$	(1.38	)	$	0.68

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Income Statement [Abstract]
Contractual interest	$ 9

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	Apr. 23, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Registrant Name	Garrett Motion Inc.
Entity Central Index Key	0001735707
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		76,082,592
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
Document Quarterly Report	true
Document Transition Report	false

Reorganization and Chapter 11 Proceedings - Schedule of Principal Amounts Outstanding on Debtor-In-Possession Financing (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Debtor-in-possession financing	$ 100	$ 200

Research, Development & Engineering

3 Months Ended

Mar. 31, 2021

Research And Development [Abstract]

Research, Development & Engineering

Note 5. Research, Development & Engineering

	Three Months Ended March 31,
	2021		2020
	(Dollars in millions)
Research and development costs	$	33	$	30
Engineering-related expenses		6		6
	$	39	$	36

Earnings (Loss) Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basic
Net (loss) income	$ (105)	$ 52
Weighted average common shares outstanding - Basic	75,904,898	75,040,932
EPS – Basic	$ (1.38)	$ 0.69
Diluted
Net (loss) income	$ (105)	$ 52
Weighted average common shares outstanding - Basic	75,904,898	75,040,932
Dilutive effect of unvested RSUs and other contingently issuable shares		1,220,613
Weighted average common shares outstanding – Diluted	75,904,898	76,261,545
EPS – Diluted	$ (1.38)	$ 0.68

- Definition

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

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+ Details

Revenue Recognition and Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2021
	OEM		Aftermarket		Other		Total
	(Dollars in millions)
United States	$	100	$	36	$	2	$	138
Europe		481		39		8		528
Asia		302		10		7		319
Other International		6		6		—		12
	$	889	$	91	$	17	$	997

	Three months ended March 31, 2020
	OEM		Aftermarket		Other		Total
	(Dollars in millions)
United States	$	92	$	40	$	—	$	132
Europe		394		30		9		433
Asia		159		8		6		173
Other International		3		4		—		7
	$	648	$	82	$	15	$	745

Summary of Contract Assets and Liabilities

The following table summarizes our contract assets and liabilities balances:

	2021
	(Dollars in millions)
Contract assets—January 1	$	61
Contract assets—March 31		65
Change in contract assets—Increase/(Decrease)		4
Contract liabilities—January 1	$	(2	)
Contract liabilities—March 31		(1	)
Change in contract liabilities—(Increase)/Decrease	$	1

Accrued Liabilities - Summary of Expenses Related to the Repositioning Accruals (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Cost And Reserve [Line Items]
Balance at beginning of period	$ 7	$ 4
Charges	8	5
Usage—cash	(2)	(2)
Balance at end of period	13	7
Severance Costs
Restructuring Cost And Reserve [Line Items]
Balance at beginning of period	7	3
Charges	8	5
Usage—cash	(2)	(2)
Balance at end of period	$ 13	6
Exit Costs
Restructuring Cost And Reserve [Line Items]
Balance at beginning of period		1
Usage—cash		0
Balance at end of period		$ 1

Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	$ 3,028	$ 3,035
Carrying Value \| Terms Loans A and B
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	1,055
Carrying Value \| Debtor In Possession Financing
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	100
Carrying Value \| 5.125% Senior Notes Due 2026
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	412
Fair Value \| Terms Loans A and B \| Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	1,073
Fair Value \| Debtor In Possession Financing \| Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	100
Fair Value \| 5.125% Senior Notes Due 2026 \| Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Liabilities not subject to compromise	$ 440

Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	$ 170,000,000	$ 19,000,000
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	170,000,000	$ 19,000,000
Fair Value, Assets	$ 2,000,000

Accounts, Notes and Other Receivables—Net

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Accounts, Notes and Other Receivables—Net

Note 8. Accounts, Notes and Other Receivables—Net

	March 31, 2021			December 31, 2020
	(Dollars in millions)
Trade receivables	$	672		$	625
Notes receivables		70			152
Other receivables		75			77
		817			854
Less—Allowance for doubtful accounts		(10	)		(13	)
	$	807		$	841

Trade Receivables include $65 million and $61 million of unbilled balances as of March 31, 2021 and December 31, 2020, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. Unbilled receivables include $65 million and $61 million of contract assets as of March 31, 2021 and December 31, 2020, respectively. See Note 4, Revenue Recognition and Contracts with Customers.

Reorganization and Chapter 11 Proceedings - Condensed Statements of Operations of Debtors (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net sales	$ 997	$ 745
Cost of goods sold	801	607
Gross profit	196	138
Selling, general and administrative expenses	55	57
Interest expense	21	16
Non-operating expense	26	(4)
Reorganization items, net	174
(Loss) income before taxes	(81)	53
Tax expense	24	1
Net (loss) income	(105)	$ 52
Debtors
Net sales	753
Cost of goods sold	602
Gross profit	151
Selling, general and administrative expenses	53
Interest expense	23
Non-operating expense	12
Reorganization items, net	174
(Loss) income before taxes	(111)
Tax expense	20
Net (loss) income	$ (131)

Commitments and Contingencies - Additional Information (Details)				3 Months Ended			12 Months Ended
	Dec. 18, 2020 USD ($)	Oct. 01, 2018 USD ($) Installment	Sep. 12, 2018 USD ($)	Mar. 31, 2021 USD ($) $ / shares	Mar. 31, 2020 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2022 USD ($)	Jan. 11, 2021 USD ($)	Sep. 30, 2020 USD ($)
Loss Contingencies [Line Items]
Make-whole premium claim amount				$ 0					$ 15,000,000
Brazilian Tax Authorities
Loss Contingencies [Line Items]
Estimated amount of contingency including penalties and interest				27,000,000
Right to offset federal tax				$ 27,000,000
Debtors
Loss Contingencies [Line Items]
Common stock exchange rate for cancellation per share \| $ / shares				$ 6.25
Honeywell Indemnity Agreement
Loss Contingencies [Line Items]
Loss contingency payable			$ 175,000,000
Minimum amount agreed to maintain for termination			25,000,000
Agreement termination description				The Honeywell 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.
Indemnification and Reimbursement Agreement
Loss Contingencies [Line Items]
Minimum amount agreed to maintain for termination			$ 25,000,000
Agreement termination description				The Honeywell 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 \| PSA and The Transaction, The Amended Plan
Loss Contingencies [Line Items]
Litigation cash payment at emergence				$ 375,000,000
Option for partial payment period at emergence				18 months
Honeywell International Inc \| PSA and The Transaction, The Amended Plan \| Series B Preferred Stock
Loss Contingencies [Line Items]
Preferred stock issued payable annually in 2023				$ 100,000,000
Preferred stock issued payable annually in 2024				100,000,000
Preferred stock issued payable annually in 2025				100,000,000
Preferred stock issued payable annually in 2026				100,000,000
Preferred stock issued payable annually in 2027				100,000,000
Preferred stock issued payable annually in 2028				100,000,000
Preferred stock issued payable annually in 2029				100,000,000
Preferred stock issued payable annually in 2030				100,000,000
Option to prepay preferred stock at call price				$ 584,000,000
Discount rate				7.25%
Option for partial payment of preferred stock reducing present value				$ 400,000,000
Honeywell International Inc \| PSA and The Transaction, The Amended Plan \| Series B Preferred Stock \| Scenario Forecast
Loss Contingencies [Line Items]
Preferred stock issued payable in instalments								$ 35,000,000
Honeywell International Inc \| Tax Matters Agreement
Loss Contingencies [Line Items]
Obligation payment connection with mandatory transition tax claim		$ 240,000,000								$ 273,000,000
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%
Payments related Tax Matters Agreement						$ 19,000,000	$ 18,000,000
Honeywell International Inc \| Minimum [Member]
Loss Contingencies [Line Items]
Loss contingency, owes	$ 1,900,000,000
Honeywell International Inc \| Honeywell Indemnity Agreement
Loss Contingencies [Line Items]
Percentage of net insurance receipts			90.00%
Payment made in connection with the Indemnification and Reimbursement Agreement					$ 35,000,000
Description of indemnification 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 certain Honeywell 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 Honeywell 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.
Honeywell International Inc \| Indemnification and Reimbursement Agreement
Loss Contingencies [Line Items]
Percentage of net insurance receipts			90.00%
Bendix \| Honeywell International Inc \| Honeywell Indemnity Agreement
Loss Contingencies [Line Items]
Percentage of asbestos and environmental liabilities liable to pay			90.00%
Bendix \| Honeywell International Inc \| Indemnification and Reimbursement Agreement
Loss Contingencies [Line Items]
Percentage of asbestos and environmental liabilities liable to pay			90.00%

Accounts, Notes and Other Receivables-Net - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Unbilled balances	$ 65	$ 61
Unbilled contracts assets	$ 65	$ 61

Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 18. Commitments and Contingencies

Chapter 11 Proceedings

Commencement of the Chapter 11 Cases automatically stayed the proceedings and actions against us that are described below, in addition to actions seeking to collect pre-petition indebtedness or to exercise control over the property of the Company’s bankruptcy estates. The Plan filed by the Debtors, as confirmed by the Bankruptcy Court provides for the treatment of claims against the Company’s bankruptcy estates, including pre-petition liabilities that have not been satisfied or addressed during the Chapter 11 Cases.

See Note 1, Background and Basis of Presentation and Note 2, Reorganization and Chapter 11 Proceedings for additional information on the Chapter 11 Cases, the RSA, the Stalking Horse Purchase Agreement, the PSA, the EBCA, the Transaction and the DIP Credit Agreement.

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 Honeywell 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 certain Honeywell 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 Honeywell 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 Honeywell Indemnity Agreement will not be deductible for U.S. federal income tax purposes. The Honeywell 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 Honeywell Indemnity Agreement. Honeywell and Garrett agreed to defer the payment under the Honeywell Indemnity Agreement due May 1, 2020 to December 31, 2020 (the “Q2 Payment”), however we do not expect Garrett ASASCO to make payments to Honeywell under the Honeywell Indemnity Agreement during the pendency of the Chapter 11 Cases. The Plan, as confirmed by the Bankruptcy Court, includes a global settlement with Honeywell providing for, among other things, the full and final satisfaction, settlement, release, and discharge of all liabilities under or related to the Indemnity Agreements.

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 Honeywell Indemnity Agreement. The Company is seeking declaratory relief; compensatory damages in an amount to be determined at trial; rescission of the Honeywell 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 Honeywell 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 September 20, 2020, Garrett and certain of its subsidiaries each filed the Chapter 11 Cases. On September 23, 2020, Garrett removed the case to the United States District Court for the Southern District of New York, and on September 24, 2020, the case was referred to the Bankruptcy Court, where the case is currently pending. On October 13, 2020, Honeywell filed a motion to dismiss in the Bankruptcy Court. Garrett does not believe Honeywell’s motion has merit. A pre-trial conference took place on October 22, 2020. The Court heard argument on Honeywell’s pending motion to dismiss on November 18, 2020; the Court has not yet issued a decision. On November 2, 2020, the Garrett entities that are Debtors and Debtors in Possession filed a Motion Pursuant to Sections 105(a) and 502(c) To Establish Procedures For Estimating The Maximum Amount Of Honeywell’s Claims And Related Relief (“Motion”). The Court heard argument on the Motion on November 18. The Court ordered an estimation proceeding to take place to estimate all of Honeywell’s claims against the Garrett entities that are Debtors and Debtors in Possession.

On December 18, 2020, Honeywell filed proofs of claim in the Chapter 11 Cases, asserting that the Company owes at least $1.9 billion in respect of such claims. The Bankruptcy Court was scheduled to estimate the amount of Honeywell’s claims in an estimation proceeding that was scheduled to commence on February 1, 2021. As noted below, the estimation proceeding has been stayed by order of the Bankruptcy Court.

On January 11, 2021, the Company announced that it had agreed to settle Honeywell’s claims as part of a broader revised Plan. The Plan is subject to various conditions.

Under the Plan, Honeywell would receive a $375 million payment and Series B Preferred Stock payable in installments of $35 million in 2022, and $100 million annually 2023-2030. The Company would have the option to prepay the Series B Preferred Stock in full at any time at a call price equivalent to $584 million as of the Emergence date (representing the present value of the installments at a 7.25% discount rate). The Company will also have the option to make a partial payment of the Series B Preferred Stock, reducing the present value to $400 million, at any time within 18 months of Emergence.

On January 15, 2021, the Bankruptcy Court ordered that the Action and the estimation proceeding both be stayed pending the Bankruptcy Court’s consideration of the Plan. On April 26, 2021, the Bankruptcy Court entered the Confirmation Order.

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. Additionally, the Tax Matters Agreement provides that Garrett ASASCO is to make payments to a subsidiary of Honeywell for a portion of Honeywell’s net tax liability under Section 965(h)(6)(A) of the Internal Revenue Code for mandatory transition taxes that Honeywell determined is attributable to us (the “MTT Claim”). Following the Spin-Off, Honeywell asserted that Garrett ASASCO was obligated to pay $240 million to Honeywell for the MTT Claim under the Tax Matters Agreement. Accordingly, and in connection with the Tax Matters Agreement, we made payments to Honeywell, under protest, for the Euro-equivalent of $18 million and $19 million during 2019 and the fourth quarter of 2018, respectively, for the MTT Claim. On October 30, 2020, however, Honeywell filed an SEC Form 10-Q for the quarterly period ended September 30, 2020, reporting that its claim against us under the Tax Matters Agreement, including the MTT Claim, is now $273 million. 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 was initially deferred to December 31, 2020 in agreement with Honeywell, and subsequently not paid as a result of the automatic stay applicable to the Debtors under the Bankruptcy Code as a result of the Chapter 11 Cases. We do not expect Garrett ASASCO to make payments to Honeywell under the Tax Matters Agreement during the pendency of the Chapter 11 Cases.

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 value and validity of Honeywell’s claims under the Tax Matters Agreement, including the MTT Claim, are currently being litigated in the Chapter 11 Cases. As described above, the Plan, as confirmed by the Bankruptcy Court, includes a global settlement with Honeywell providing for, among other things, the full and final satisfaction, settlement, release, and discharge of all liabilities under or related to the Tax Matters Agreement.

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.

The Obligation payable to Honeywell related to these agreements was deemed a pre-petition, unsecured liability subject to compromise. On the Petition Date, the Obligation was stayed from further payment and, in accordance with ASC 852-10, measured at the expected allowed claim amount. The Company measured the expected allowed claim as of December 31, 2020 utilizing a combination of data points including: (1) the historical actuarial claims data provided by Honeywell up to December 31, 2019 (2) the aforementioned Honeywell claims estimation trial proceedings, (3) Honeywell’s bankruptcy claim filed with the Bankruptcy Court, and (4) the expected settlement of the Honeywell liabilities as per the Plan of Reorganization.

	Three Months Ended March 31, 2021
	Asbestos and environmental			Tax Matters			Total
	(Dollars in millions)
Beginning of year	$	1,196		$	286		$	1,482
Currency translation adjustment		(49	)		(12	)		(61	)
End of period	$	1,147		$	274		$	1,421

Current		2			39			41
Non-current		1,145			235			1,380
Total	$	1,147		$	274		$	1,421

	Twelve Months Ended December 31, 2020
	Asbestos and environmental			Tax Matters		Total
	(Dollars in millions)
Beginning of year	$	1,090		$	261	$	1,351
Legal fees expensed		41			—		41
Payments to Honeywell		(35	)		—		(35	)
Currency translation adjustment		100			25		125
End of period	$	1,196		$	286	$	1,482

Current		2			40		42
Non-current		1,194			246		1,440
Total	$	1,196		$	286	$	1,482

Asbestos Matters

The accounting for the majority of our asbestos-related liability payments and accounts payable reflect the terms of the Honeywell 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 Honeywell 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. As stated above, on January 11, 2021, the Company announced that it had agreed to settle Honeywell’s claims as part of a revised Plan. This settlement would extinguish our obligations to Honeywell under the Honeywell Indemnity Agreement. The Plan is subject to various conditions. On April 26, 2021, the Bankruptcy Court entered the Confirmation Order.

Securities Litigation

On September 25, 2020, a putative securities class action complaint was filed against Garrett Motion Inc. and certain current and former Garrett officers and directors, in the United States District Court for the Southern District of New York. The case bears the caption: Steven Husson, Individually and On Behalf of All Others Similarly Situated, v. Garrett Motion Inc., Olivier Rabiller, Alessandro Gili, Peter Bracke, Sean Deason, and Su Ping Lu, Case No. 1:20-cv-07992-JPC (SDNY) (the “Husson Action”). The Husson Action asserted claims under Sections 10(b) and 20(a) of the Exchange Act, for securities fraud and control person liability. On September 28, 2020, the plaintiff sought to voluntarily dismiss his claim against Garrett Motion Inc. in light of the Company’s bankruptcy; this request was granted.

On October 5, 2020, another putative securities class action complaint was filed against certain current and former Garrett officers and directors, in the United States District Court for the Southern District of New York. This case bears the caption: The Gabelli Asset Fund, The Gabelli Dividend & Income Trust, The Gabelli Value 25 Fund Inc., The Gabelli Equity Trust Inc., SM Investors LP and SM Investors II LP, on behalf of themselves and all others similarly situated, v. Su Ping Lu, Olivier Rabiller, Alessandro Gili, Peter Bracke, Sean Deason, Craig Balis, Thierry Mabru, Russell James, Carlos M. Cardoso, Maura J. Clark, Courtney M. Enghauser, Susan L. Main, Carsten Reinhardt, and Scott A. Tozier, Case No. 1:20-cv-08296-JPC (SDNY) (the “Gabelli Action”). The Gabelli Action also asserted claims under Sections 10(b) and 20(a) of the Exchange Act.

On November 5, 2020, another putative securities class action complaint was filed against certain current and former Garrett officers and directors, in the United States District Court for the Southern District of New York. This case bears the caption: Joseph Froehlich, Individually and On Behalf of All Others Similarly Situated, v. Olivier Rabiller, Allesandro Gili, Peter Bracke, Sean Deason, and Su Ping Lu, Case No. 1:20-cv-09279-JPC (SDNY) (the “Froehlich Action”). The Froehlich Action also asserted claims under Sections 10(b) and 20(a) of the Exchange Act.

All three actions are currently assigned to Judge John P. Cronan. Su Ping Lu filed a waiver of service in the Gabelli Action on November 10, 2020. On November 24, 2020, competing motions were filed seeking the appointment of lead plaintiff and lead counsel and the consolidation of the Husson, Gabelli, and Froehlich Actions.

On December 8, 2020, counsel for the plaintiffs in the Gabelli Action – the Entwistle & Cappucci law firm – filed an unopposed stipulation and proposed order that would (1) appoint the plaintiffs in the Gabelli Action – the “Gabelli Entities” – the lead plaintiffs; (2) would appoint Entwistle & Cappucci as lead counsel for the plaintiff class; and (3) consolidate the Gabelli Action, the Husson Action, and the Froehlich Action. On January 21, 2021, the Court granted the motion to consolidate the actions and granted the Gabelli Entities’ motions for appointment as lead plaintiff and for selection of lead counsel. On February 25, 2021, plaintiffs filed a Consolidated Amended Complaint for Violation of the Federal Securities Laws. Defendants’ motion to dismiss is due by April 26, 2021; Plaintiffs’ opposition is due by June 25, 2021; and Defendants’ reply is due by July 26, 2021.

The Company’s insurer, AIG has accepted the defense, subject the customary reservation of rights.

The bankruptcy court set a bar date of March 1, 2021 for current and former shareholders to file claims against the Debtors arising from rescission of a purchase or sale of common stock of Garrett Motion Inc., for damages arising from the purchase or sale of common stock of Garrett Motion Inc., or for reimbursement or contribution allowed under section 502 of the Bankruptcy Code on account of such claims arising (or deemed to have arisen) prior to the Petition Date for all securities claims arising prior to the Petition Date. We are not yet able to assess the likelihood that any such claims will be allowed. To the extent allowed, each holder of such claims will be entitled to receive, (x) its pro rata share of the aggregate cash payments received or recoverable from any insurance policies of the Company on account of any such allowed claims and (y) solely to the extent that such payments are less than the amount of its allowed claim, payment in full of the remaining amount of its allowed claim, at the option of the reorganized Debtors, in cash or a number of shares of Garrett common stock at a value of $6.25 per share.

Make-Whole Litigation

On November 13, 2020, certain of the Debtors (the “Plaintiffs”) filed a complaint in the Bankruptcy Court against the indenture trustee (the “Indenture Trustee”) of the 5.125% senior notes due 2026 (the “Senior Notes”) seeking declaratory judgment on two claims for relief that the Debtors do not owe, and the holders of the Senior Notes (the “Noteholders”) are not entitled to, any make-whole premium under the Indenture (the “Make-Whole” and such litigation, the “Make-Whole Litigation”). Certain Noteholders have contended in these Chapter 11 Cases that the Noteholders are entitled to payment of the Make-Whole under the terms of the Indenture, which provide for the payment of the Make-Whole if the Debtors exercise their right to redeem the Senior Notes prior to maturity, as a result of the Debtors’ commencement of their Chapter 11 Cases. The Plaintiffs’ position is that the Noteholders are not entitled to any Make-Whole because the Debtors have not exercised their right of redemption as contemplated by the Indenture and, in the alternative, the Make-Whole should be disallowed as unmatured interest pursuant to Section 502(b)(2) of the Bankruptcy Code. On January 8, 2021, the Indenture Trustee filed an answer to the Debtors’ complaint. On January 11, 2021, the Company announced that it had agreed to settle the Make-Whole Litigation as part of the transactions and settlements embodied in the Plan. The Plan is subject to various conditions. Pursuant to the settlement embodied in the Plan, the Make Whole is an allowed claim in the amount of $15 million. As the Confirmation Order was not entered by the Bankruptcy Court until April 26, 2021, the Make Whole was not recorded as of March 31, 2021. The Debtors and the Indenture Trustee agreed to suspend all litigation activities related to and stay the Make-Whole Litigation to permit Bankruptcy Court consideration of the Plan and to dismiss with prejudice the Make-Whole Litigation upon the Effective Date.

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.

In September 2020, the Brazilian tax authorities issued an infraction notice against Garrett Motion Industria Automotiva Brasil Ltda, challenging the use of certain tax credits (“Befiex Credits”) between January 2017 and February 2020. The infraction notice results in a loss contingency that may or may not ultimately be incurred by the Company. The estimated total amount of the contingency as of March 31, 2021 was $27 million including penalties and interest. The Company appealed the infraction notice on October 23, 2020. In March 2021, in response to our request, the Brazilian Tax Authorities reconsidered their position for a portion of the $27 million mentioned above and allowed Garrett Motion Brazil the right to offset Federal Tax with the Befiex Credits. The letter does not qualify as a formal decision and requires formal recognition from the Judge and from the Federal Judgement Office in charge of the disputes. The Company believes, based on management’s assessment and the advice of external legal counsel, that it has meritorious arguments in connection with the infraction notice and any liability for the infraction notice is currently not probable. Accordingly, no accrual is required at this time.

Financial Instruments and Fair Value Measures - Additional Information (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative, aggregate gross notional amount	$ 170,000,000	$ 19,000,000

Other Assets

3 Months Ended

Mar. 31, 2021

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Other Assets

Note 11. Other Assets

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Advanced discounts to customers, non-current	$	68	$	70
Operating right-of-use assets (Note 14)		36		36
Other		27		29
	$	131	$	135

Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Note 17. Earnings (Loss) Per Share

The details of the earnings (loss) per share (“EPS”) calculations for the three months ended March 31, 2021 and 2020 are as follows:

	Three Months Ended March 31,
	2021			2020
	(Dollars in millions except per share amounts)
Basic
Net (loss) income	$	(105	)	$	52
Weighted average common shares outstanding		75,904,898			75,040,932
EPS – Basic	$	(1.38	)	$	0.69

	Three Months Ended March 31,
	2021			2020
	(Dollars in millions except per share amounts)
Diluted
Net (loss) income	$	(105	)	$	52
Weighted average common shares outstanding – Basic		75,904,898			75,040,932
Dilutive effect of unvested RSUs and other contingently issuable shares		—			1,220,613
Weighted average common shares outstanding – Diluted		75,904,898			76,261,545
EPS – Diluted	$	(1.38	)	$	0.68

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 months ended March 31, 2021 and March 31, 2020, the weighted number of stock options excluded from the computations was 399,489 and 441,966, respectively. These stock options were outstanding for the three months ended March 31, 2021 and 2020, respectively.

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (105)	$ 52
Foreign exchange translation adjustment	110	39
Changes in fair value of effective cash flow hedges, net of tax (Note 15)	1
Total other comprehensive income, net of tax	111	39
Comprehensive income	$ 6	$ 91

- Definition

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

+ References

+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

Factoring and Notes Receivable - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Sale of trade receivables	$ 180	$ 473
Proceeds from sale of bank notes	0	160
Guaranteed bank notes pledged as collateral	$ 15	$ 18

Pension Benefits - Summary of Net Periodic Benefit Cost (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
United States
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 1	$ 1
Expected return on plan assets	(3)	(3)
Net periodic benefit costs	(2)	(2)
Non-U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	3	2
Expected return on plan assets	(2)	(1)
Net periodic benefit costs	$ 1	$ 1

Research, Development & Engineering - Summary of Research, Development & Engineering Activities (Details) - Cost of Goods Sold - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	$ 39	$ 36
Research and Development Costs
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	33	30
Engineering-Related Expenses
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	$ 6	$ 6

Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Other assets	$ 36	$ 36
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Accrued liabilities	$ 5	$ 5
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Other liabilities	$ 14	$ 15
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Liabilities subject to compromise	$ 17	$ 19
Weighted-average lease term (in years)	5 years 7 days	5 years 1 month 20 days
Weighted-average discount rate	6.18%	6.16%

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net (loss) income	$ (105)	$ 52
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Reorganization items, net	19
Deferred income taxes	4	(15)
Depreciation	23	19
Amortization of deferred issuance costs	2	2
Foreign exchange loss	33	12
Stock compensation expense	2	2
Other	(6)	8
Changes in assets and liabilities:
Accounts, notes and other receivables	(2)	58
Inventories	(34)	(14)
Other assets	14	(10)
Accounts payable	74	(29)
Accrued liabilities	17	1
Obligations payable to Honeywell		(21)
Other liabilities	(9)	(8)
Net cash provided by operating activities	32	57
Cash flows from investing activities:
Expenditures for property, plant and equipment	(18)	(39)
Other	1
Net cash used for investing activities	(17)	(39)
Cash flows from financing activities:
Payments of debtor-in-possession financing	(100)
Proceeds from revolving credit facility		621
Payments of revolving credit facility		(555)
Payments of long-term debt		(1)
Debtor-in-possession financing fees	(1)
Other		(3)
Net cash (used for) provided by financing activities	(101)	62
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(30)	(13)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(116)	67
Cash, cash equivalents and restricted cash at beginning of period	693	187
Cash, cash equivalents and restricted cash at end of period	577	$ 254
Supplemental Cash Flow Disclosure:
Reorganization items paid	$ 145

Reorganization and Chapter 11 Proceedings - Schedule of Principal Amounts Outstanding on Senior Secured Credit Facilities and Senior Notes (Details) € in Millions, $ in Millions	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 27, 2018 USD ($)	Sep. 27, 2018 EUR (€)
Long-term debt, net subject to compromise
Total debt, prior to reclassification to Liabilities subject to compromise	$ 1,837	$ 1,881
Less: current portion	(376)	(370)
Less: Amounts reclassified to Liabilities subject to compromise	(412)	(429)
Total long-term debt	1,049	1,082
5.125% Senior Notes Due 2026
Long-term debt, net subject to compromise
Senior notes	412	429	$ 410	€ 350
Credit Agreement \| Senior Secured Credit Facilities
Debt Instrument [Line Items]
Total consolidated Secured Debt	1,425	1,452
Credit Agreement \| Term A and B Facility \| Senior Secured Credit Facilities
Debt Instrument [Line Items]
Total consolidated Secured Debt	1,055	1,082
Credit Agreement \| Revolving Credit Facility \| Senior Secured Credit Facilities
Debt Instrument [Line Items]
Total consolidated Secured Debt	$ 370	$ 370

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Summary of Changes in 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)
	(Dollars in millions)
Balance at December 31, 2019	$	153	$	4	$	(27	)	$	130
Other comprehensive income (loss) before reclassifications		39		—		—			39
Amounts reclassified from accumulated other comprehensive income (loss)		—		—		—			—
Net current period other comprehensive income (loss)		39							39
Balance at March 31, 2020	$	192	$	4	$	(27	)	$	169

	Foreign Exchange Translation Adjustment			Changes in Fair Value of Effective Cash Flow Hedges			Pension Adjustments			Total Accumulated Other Comprehensive Income (Loss)
	(Dollars in millions)
Balance at December 31, 2020	$	(81	)	$	(3	)	$	(45	)	$	(129	)
Other comprehensive (loss) before reclassifications		110			—			—			110
Amounts reclassified from accumulated other comprehensive income (loss)		—			1			—			1
Net current period other comprehensive (loss)		110			1						111
Balance at March 31, 2021	$	29		$	(2	)	$	(45	)	$	(18	)

Reorganization and Chapter 11 Proceedings - Condensed Statements of Cash Flows of Debtors (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net cash used for operating activities	$ 32	$ 57
Cash flows from investing activities:
Expenditures for property, plant and equipment	(18)	(39)
Other	1
Net cash used for investing activities	(17)	(39)
Cash flows from financing activities:
Debtor-in-possession financing fees	(1)
Net cash (used for) provided by financing activities	(101)	62
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(30)	(13)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(116)	67
Cash, cash equivalents and restricted cash at beginning of period	693	187
Cash, cash equivalents and restricted cash at end of period	577	$ 254
Debtors
Cash flows from operating activities:
Net cash used for operating activities	(100)
Cash flows from investing activities:
Expenditures for property, plant and equipment	(5)
Other	1
Net cash used for investing activities	(4)
Cash flows from financing activities:
Payments of debtor-in-possession financing	(100)
Debtor-in-possession financing fees	(1)
Net cash (used for) provided by financing activities	(101)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(26)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(231)
Cash, cash equivalents and restricted cash at beginning of period	547
Cash, cash equivalents and restricted cash at end of period	$ 316

Earnings (Loss) Per Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Antidilutive shares excluded from computation of diluted EPS	399,489	441,966

Revenue Recognition and Contracts with Customers

3 Months Ended

Mar. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition and Contracts with Customers

Note 4. 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 March 31, 2021
	OEM		Aftermarket		Other		Total
	(Dollars in millions)
United States	$	100	$	36	$	2	$	138
Europe		481		39		8		528
Asia		302		10		7		319
Other International		6		6		—		12
	$	889	$	91	$	17	$	997

	Three months ended March 31, 2020
	OEM		Aftermarket		Other		Total
	(Dollars in millions)
United States	$	92	$	40	$	—	$	132
Europe		394		30		9		433
Asia		159		8		6		173
Other International		3		4		—		7
	$	648	$	82	$	15	$	745

Contract Balances

The following table summarizes our contract assets and liabilities balances:

	2021
	(Dollars in millions)
Contract assets—January 1	$	61
Contract assets—March 31		65
Change in contract assets—Increase/(Decrease)		4
Contract liabilities—January 1	$	(2	)
Contract liabilities—March 31		(1	)
Change in contract liabilities—(Increase)/Decrease	$	1

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT) (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Cumulative-Effect Adjustment	Common Stock	Additional Paid-in Capital	Retained (Deficit) Earnings	Retained (Deficit) Earnings Cumulative-Effect Adjustment	Accumulated Other Comprehensive Income/(loss)
Beginning balance at Dec. 31, 2019	$ (2,133)	$ (5)		$ 19	$ (2,282)	$ (5)	$ 130
Beginning balance, Shares at Dec. 31, 2019			75
Net income (loss)	52				52
Other comprehensive income, net of tax	39						39
Stock-based compensation	2			2
Tax withholding related to vesting of restricted stock units and other	$ (1)			(1)
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
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, 2020	(2,308)			28	(2,207)		(129)
Beginning balance, Shares at Dec. 31, 2020			76
Net income (loss)	(105)				(105)
Other comprehensive income, net of tax	111						111
Stock-based compensation	2			2
Ending balance at Mar. 31, 2021	$ (2,300)			$ 30	$ (2,312)		$ (18)
Ending balance, Shares at Mar. 31, 2021			76

- Definition

Indicates amendment to accounting standards.

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+ Details

- Definition

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

+ References

+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating cash outflows from operating leases	$ 3	$ 2
Right-of-use assets obtained in exchange for lease obligations, operating leases	$ 1

Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 7. Income Taxes

	For the Three Months Ended March 31,
	2021			2020
	(Dollars in millions)
Tax expense	$	24		$	1
Effective tax rate		(29.6	)%		1.9	%

The effective tax rate was (29.6%) and 1.9% for the three months ended March 31, 2021 and 2020, respectively. The negative effective tax rate for 2021 reflects a tax expense in a period of an overall pre-tax loss. The change in the effective tax rate for the three months ended March 31, 2021 compared to the prior year period primarily related to the increase in nondeductible bankruptcy costs and the absence of tax benefits from lower withholding taxes.

The effective tax rate for the three months ended March 31, 2021 was lower than the U.S. federal statutory rate of 21% primarily because of pre-tax losses related to nondeductible bankruptcy and restructuring costs.

For the period ended March 31, 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 available forecasts which took into account a range of potential impacts from COVID-19, the Company’s effective tax rate was expected to be highly sensitive to changes in pre-tax book income 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 was its best estimate of tax expense for the period ended March 31, 2020.

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. Such benefits have not had a material impact on the Company.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Background and Basis of Presentation

3 Months Ended

Mar. 31, 2021

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 and Our Credit Facilities

In 2020, the COVID-19 virus was declared a pandemic and 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 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 “Prepetition 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 Prepetition Credit Agreement as a result of the impact of the COVID-19 pandemic and the Company’s leveraged capital structure.

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.

The commencement of the Chapter 11 Cases (as defined below) constituted an event of default that accelerated the Company’s obligations, as applicable, under the Prepetition Credit Agreement. The Prepetition Credit Agreement provides that as a result of the commencement of the Chapter 11 Cases, the principal, interest and all other amounts due thereunder shall be immediately due and payable. Any efforts to enforce the payment obligations under the Prepetition Credit Agreement are automatically stayed as a result of the Chapter 11 Cases, and the creditors’ rights of enforcement in respect of the Prepetition Credit Agreement are subject to the applicable provisions of the Bankruptcy Code.

The Plan (as defined below) provides for payment in full of the Company’s obligations under the Prepetition Credit Agreement. The Bankruptcy Court (as defined below) entered the Confirmation Order (as defined below) on April 26, 2021. The Company expects that the Effective Date (as defined below) will occur as soon as all conditions precedent to the Plan have been satisfied, which the Company is targeting for April 30, 2021. Although the Company is targeting occurrence of the Effective Date on April 30, 2021, the Company can make no assurances as to when, or ultimately if, the Plan will become effective.

Voluntary Filing Under Chapter 11

On September 20, 2020 (the “Petition Date”), the Company and certain of its subsidiaries (collectively, the “Debtors”) each filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Debtors’ chapter 11 cases (the “Chapter 11 Cases”) are being jointly administered under the caption “In re: Garrett Motion Inc., 20-12212.” On September 22 and 24, 2020, the

Bankruptcy Court entered orders granting interim approval of certain forms of relief requested by the Debtors, enabling the Debtors to conduct their business activities in the ordinary course, subject to the terms and conditions of such orders, including authorizing the Debtors to pay employee wages and benefits, to pay certain taxes and certain governmental fees and charges, to continue to operate the Debtors’ cash management system in the ordinary course, to maintain certain customer programs, and to pay the prepetition claims of certain of the Debtors’ vendors. On October 20 and 21, 2020, the Bankruptcy Court entered orders granting such relief on a final basis. For goods and services provided following the Petition Date, the Debtors continue to pay vendors under normal terms.

The Consolidated Interim Financial Statements included herein have been prepared in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 852, Reorganizations. See Note 2, Reorganization and Chapter 11 Proceedings, for further details.

Delisting from NYSE

On September 20, 2020, the Company was notified by the New York Stock Exchange (the “NYSE”) that, as a result of the Chapter 11 Cases, and in accordance with Section 802.01D of the NYSE Listed Company Manual, that the NYSE had commenced proceedings to delist the Company’s common stock from the NYSE. The NYSE indefinitely suspended trading of the Company’s common stock on September 21, 2020. The Company determined not to appeal the NYSE’s determination. On October 8, 2020, the NYSE filed a Form 25-NSE with the Securities and Exchange Commission, which removed the Company’s common stock from listing and registration on the NYSE effective as of the opening of business on October 19, 2020. Trading of the Company’s common stock now occurs on the OTC Pink Market under the symbol “GTXMQ.” Any over-the-counter market quotations of the Company’s common stock reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

Going Concern

The accompanying Consolidated Interim Financial Statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities subject to compromise will be resolved in connection with the Chapter 11 Cases. The Company’s ability to continue as a going concern is contingent upon the Company’s ability to successfully implement a plan of reorganization in the Chapter 11 Cases, among other factors. As a result of the Chapter 11 Cases, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession under the Bankruptcy Code, the Company may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business, for amounts other than those reflected in the accompanying Consolidated Interim Financial Statements. Further, any plan of reorganization in the Chapter 11 Cases could materially change the amounts and classifications of assets and liabilities reported in the Consolidated Interim Financial Statements. The accompanying Consolidated Interim Financial Statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern or as a consequence of the Chapter 11 Cases. As a result of our financial condition, uncertainty related to the impacts of COVID-19, and the risks and uncertainties surrounding the Chapter 11 Cases, substantial doubt exists that we will be able to continue as a going concern.

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 indemnification and reimbursement agreement with Honeywell entered into on September 12, 2018 (the “Honeywell Indemnity Agreement”), 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 Honeywell 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 have accounted for the Honeywell liability consistent with the agreement up to the Petition Date and classified it as part of Liabilities Subject to Compromise.

Under the terms of the PSA and the Transaction, the Plan (as defined below), as confirmed by the Bankruptcy Court, includes a global settlement with Honeywell providing for (a) the full and final satisfaction, settlement, release, and discharge of all liabilities under or related to the Honeywell Indemnity Agreement, that certain Indemnification Guarantee Agreement, dated as of September 27, 2018 (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time), by and among Honeywell ASASCO 2 Inc. as payee, Garrett ASASCO as payor, and certain subsidiary guarantors as defined therein (the “Guarantee Agreement,” and together with the Honeywell Indemnity Agreement, the “Indemnity Agreements”) and the Tax Matters Agreement and (b) the dismissal with prejudice of the Honeywell Litigation in exchange for (x) a $375 million cash payment at Emergence from the Chapter 11 Cases and (y) the new Series B Preferred Stock issued by the Company payable in installments of $35 million in 2022, and $100 million annually 2023-2030 (the “Series B Preferred Stock”). The Company will have the option to prepay the Series B Preferred Stock in full at any time at a call price equivalent to $584 million as of Emergence (representing the present value of the installments at a 7.25% discount rate). The Company will also have the option to make a partial payment of the Series B Preferred Stock, reducing the present value to $400 million, at any time within 18 months of Emergence. In every case the duration of future liabilities to Honeywell will be reduced from 30 years prior to the Chapter 11 filing to a maximum of nine years.

For additional information, see Note 18, Commitments and Contingencies, of the Notes to the Consolidated Interim Financial Statements.

The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances, including considerations for the impact from the outbreak of the COVID-19 pandemic on the Company's business due to various global macroeconomic, operational and supply chain risks as a result of COVID-19. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods. Furthermore, while operating as “debtors-in-possession” under Chapter 11, the Debtors may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business and subject to restrictions of the debtor in possession (“DIP”) financing, for amounts other than those reflected in the accompanying unaudited Consolidated Interim Financial Statements. Any such actions occurring during the Chapter 11 Cases, including through a plan of reorganization confirmed by the Bankruptcy Court could materially impact the amounts and classifications of assets and liabilities reported in the unaudited Consolidated Interim Financial Statements.

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, 2020 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 16, 2020 (our “2020 Form 10-K”). The results of operations for three months ended March 31, 2021 and cash flows for the three months ended March 31, 2021 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 March 31, 2021. Our actual closing dates for the three months ended March 31, 2021 and 2020 were April 3, 2021 and March 28, 2020, respectively.

Income Taxes - Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Tax expense	$ 24	$ 1
Effective tax rate	(29.60%)	1.90%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Financial Instruments and Fair Value Measures (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020:

					Fair Value
	Notional Amounts				Assets
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
	(Dollars in millions)
Undesignated forward currency exchange contracts	$	170	$	19	$	2	$	—	^(a)

(a)	Recorded within Other current assets 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:

	March 31, 2021
	Carrying Value		Fair Value
	(Dollars in millions)
Liabilities not subject to compromise:
Terms Loans A and B	$	1,055	$	1,073
DIP Financing		100		100
Liabilities subject to compromise:
Senior Notes		412		440

Reorganization and Chapter 11 Proceedings - Schedule of Liabilities Subject to Compromise (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Reorganizations [Abstract]
Obligations payable to Honeywell	$ 1,421	$ 1,482
Long-term debt	412	429
Pension, compensation, benefit and other employee related	82	92
Uncertain tax positions and deferred taxes	61	69
Accounts payable	35	82
Advanced discounts from suppliers	28	33
Lease liability	17	19
Product warranties and performance guarantees	16	16
Freight Accrual		27
Other	35	41
Total liabilities subject to compromise	$ 2,107	$ 2,290

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
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	76,531,559	76,229,578
Common stock, shares, outstanding	76,068,026	75,813,634

Inventories-Net - Summary of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventory Combining Work In Process And Raw Materials Alternative Gross [Abstract]
Raw materials	$ 150	$ 160
Work in process	21	19
Finished products	124	97
Inventory, gross	295	276
Less—Reserves	(37)	(41)
Inventories	$ 258	$ 235

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Chapter 11 Accounting	Chapter 11 Accounting The Company has applied ASC 852 in preparing our Consolidated Interim Financial Statements. ASC 852 requires the financial statements for periods subsequent to the Petition Date to distinguish transactions and events that are directly associated with the Company's reorganization from the ongoing operations of the business. Accordingly, revenues, expenses, realized gains and losses, and provisions for losses directly resulting from the reorganization and restructuring shall be reported separately as Reorganization items, net in the Consolidated Interim Statements of Operations. In addition, the balance sheet distinguishes pre-petition liabilities subject to compromise from those pre-petition liabilities that are not subject to compromise and post-petition liabilities. Pre-petition liabilities that are not fully secured or those that have at least a possibility of not being repaid at the allowed claim amount have been classified as liabilities subject to compromise on the Consolidated Interim Balance Sheet at March 31, 2021. Under the Bankruptcy Code, the Debtors may assume and assign or reject executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a prepetition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors of performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach subject, in the case of the rejection of unexpired leases of real property, to certain caps on damages. Counterparties to such rejected contracts or leases may assert unsecured claims in the Bankruptcy Court against the applicable Debtor’s estate for such damages. Generally, the assumption or assumption and assignment of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance thereunder. Accordingly, any description of an executory contract or unexpired lease with a Debtor in this quarterly report, including where applicable a quantification of the Company’s obligations under any such executory contract or unexpired lease with a Debtor is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. The Plan provides for the assumption of all of the Debtors’ executory contracts and unexpired leases except for certain agreements with Honeywell.
Reclassifications	Reclassifications Certain reclassifications have been made to prior year amounts to conform to current year classifications, specifically certain items that had been previously recorded in selling, general and administrative expenses presented now within cost of goods sold. The reclassifications had no impact on net income, equity, or cash flows as previously reported.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of 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. In January 2021, the FASB issued clarification on the scope of relief related to the reference rate reform. The Company is currently evaluating the impact of the guidance related to certain existing debt agreements on our Consolidated Financial Statements. There are no other recently issued, but not yet adopted, accounting pronouncements which are expected to have a material impact on the Company’s Consolidated Interim Financial Statements and related disclosures.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 16. 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)
	(Dollars in millions)
Balance at December 31, 2019	$	153	$	4	$	(27	)	$	130
Other comprehensive income (loss) before reclassifications		39		—		—			39
Amounts reclassified from accumulated other comprehensive income (loss)		—		—		—			—
Net current period other comprehensive income (loss)		39							39
Balance at March 31, 2020	$	192	$	4	$	(27	)	$	169

	Foreign Exchange Translation Adjustment			Changes in Fair Value of Effective Cash Flow Hedges			Pension Adjustments			Total Accumulated Other Comprehensive Income (Loss)
	(Dollars in millions)
Balance at December 31, 2020	$	(81	)	$	(3	)	$	(45	)	$	(129	)
Other comprehensive (loss) before reclassifications		110			—			—			110
Amounts reclassified from accumulated other comprehensive income (loss)		—			1			—			1
Net current period other comprehensive (loss)		110			1						111
Balance at March 31, 2021	$	29		$	(2	)	$	(45	)	$	(18	)

Income Taxes - Additional Information (Details)	3 Months Ended
Income Taxes - Additional Information (Details)	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	(29.60%)	1.90%
U.S. federal statutory income tax rate	21.00%

Accounts, Notes and Other Receivables-Net - Schedule of Accounts, Notes and Other Receivables Net (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Trade receivables	$ 672	$ 625
Notes receivables	70	152
Other receivables	75	77
Accounts, notes and other receivables, gross	817	854
Less—Allowance for doubtful accounts	(10)	(13)
Accounts, notes and other receivables, net	$ 807	$ 841

Pension Benefits (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31,
	U.S. Plans						Non-U.S. Plan,
	2021			2020			2021			2020
	(Dollars in millions)
Service cost	$	—		$	—		$	3		$	2
Interest cost		1			1			—			—
Expected return on plan assets		(3	)		(3	)		(2	)		(1	)
	$	(2	)	$	(2	)	$	1		$	1

Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ (2,308)	$ (2,133)
Total other comprehensive income, net of tax	111	39
Ending balance	(2,300)	(2,046)
Foreign Exchange Translation Adjustment
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(81)	153
Other comprehensive income (loss) before reclassifications	110	39
Total other comprehensive income, net of tax	110	39
Ending balance	29	192
Changes in Fair Value of Effective Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(3)	4
Amounts reclassified from accumulated other comprehensive income (loss)	1
Total other comprehensive income, net of tax	1
Ending balance	(2)	4
Pension Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(45)	(27)
Ending balance	(45)	(27)
Total Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(129)	130
Other comprehensive income (loss) before reclassifications	110	39
Amounts reclassified from accumulated other comprehensive income (loss)	1
Total other comprehensive income, net of tax	111	39
Ending balance	$ (18)	$ 169

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

+ References + Details

Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Income taxes	$ 47	$ 45
Designated and undesignated derivatives	21	22
Pension and other employee related	18	14
Long-term lease liability (Note 14)	14	15
Advanced discounts from suppliers	10	11
Other	15	7
Other Liabilities	$ 125	$ 114

Background and Basis of Presentation - Additional Information (Details) € in Millions			3 Months Ended
	Jun. 12, 2020 USD ($)	Sep. 12, 2018 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Jun. 12, 2020 EUR (€)
Indemnification and Reimbursement Agreement
Background And Basis Of Presentation [Line Items]
Agreement termination date		Dec. 31, 2048
Agreement termination description			The Honeywell 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 \| Indemnification and Reimbursement Agreement
Background And Basis Of Presentation [Line Items]
Percentage of net insurance receipts		90.00%
Honeywell International Inc \| Indemnification and Reimbursement 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 \| Indemnification and Reimbursement Agreement
Background And Basis Of Presentation [Line Items]
Percentage of asbestos and environmental liabilities liable to pay		90.00%
2020 Amended Credit Agreement \| Revolving Credit Facility
Background And Basis Of Presentation [Line Items]
Debt instrument, face amount \| €					€ 430
Debt instrument term	5 years
PSA and The Transaction, The Amended Plan \| Honeywell International Inc
Background And Basis Of Presentation [Line Items]
Litigation cash payment at emergence			$ 375,000,000
Option for partial payment period at emergence			18 months
Reduction of duration of future liabilities prior to chapter 11 filing			30 years
Maximum duration of future liabilities under chapter 11 filing			9 years
PSA and The Transaction, The Amended Plan \| Honeywell International Inc \| Series B Preferred Stock
Background And Basis Of Presentation [Line Items]
Preferred stock issued payable annually in 2023			$ 100,000,000
Preferred stock issued payable annually in 2024			100,000,000
Preferred stock issued payable annually in 2025			100,000,000
Preferred stock issued payable annually in 2026			100,000,000
Preferred stock issued payable annually in 2027			100,000,000
Preferred stock issued payable annually in 2028			100,000,000
Preferred stock issued payable annually in 2029			100,000,000
Preferred stock issued payable annually in 2030			100,000,000
Option to prepay preferred stock at call price			$ 584,000,000
Discount rate			7.25%
Option for partial payment of preferred stock reducing present value			$ 400,000,000
PSA and The Transaction, The Amended Plan \| Honeywell International Inc \| Series B Preferred Stock \| Scenario Forecast
Background And Basis Of Presentation [Line Items]
Preferred stock issued payable in instalments				$ 35,000,000
Term B Loan Facility \| 2020 Amended Credit Agreement
Background And Basis Of Presentation [Line Items]
Debt instrument, face amount	$ 425,000,000				375
Debt instrument term	7 years
Term A Loan Facility \| 2020 Amended Credit Agreement
Background And Basis Of Presentation [Line Items]
Debt instrument, face amount \| €					€ 330
Debt instrument term	5 years

Leases - Additional Information (Details)	3 Months Ended
Leases - Additional Information (Details)	Mar. 31, 2021
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	10 years
Operating lease, options to extend, years	2 years

Inventories-Net

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Inventories-Net

Note 10. Inventories—Net

	March 31, 2021			December 31, 2020
	(Dollars in millions)
Raw materials	$	150		$	160
Work in process		21			19
Finished products		124			97
		295			276
Less—Reserves		(37	)		(41	)
	$	258		$	235

Other Expenses, Net (Tables)

3 Months Ended

Mar. 31, 2021

Other Income And Expenses [Abstract]

Schedule of Other Operating Cost and Expense

	Three Months Ended March 31,
	2021		2020
	(Dollars in millions)
Indemnification related — post Spin-Off	$	—	$	15
Indemnification related — litigation		—		1
Factoring and notes receivables discount fees		1		—
	$	1	$	16

Other Assets (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Schedule of Other Assets

	March 31,		December 31,
	2021		2020
	(Dollars in millions)
Advanced discounts to customers, non-current	$	68	$	70
Operating right-of-use assets (Note 14)		36		36
Other		27		29
	$	131	$	135