gtx-10q_20210630.htm
false Q2 0001735707 --12-31 true true P3Y P5Y P7Y P7Y P7Y P5Y P7Y P7Y P5Y P7Y P7Y P5Y us-gaap:OtherAssetsNoncurrent us-gaap:OtherAssetsNoncurrent us-gaap:OtherAssetsNoncurrent us-gaap:OtherAssetsNoncurrent us-gaap:AccruedLiabilitiesCurrent us-gaap:AccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent P4Y10M13D P5Y1M20D gtx:AccruedAndOtherNonCurrentLiabilitiesMember 0001735707 2021-01-01 2021-06-30 xbrli:shares 0001735707 2021-07-22 iso4217:USD 0001735707 2021-04-01 2021-06-30 0001735707 2020-04-01 2020-06-30 0001735707 2020-01-01 2020-06-30 iso4217:USD xbrli:shares 0001735707 2021-06-30 0001735707 2020-12-31 0001735707 us-gaap:SeriesBPreferredStockMember 2021-06-30 0001735707 us-gaap:SeriesAPreferredStockMember 2021-06-30 0001735707 us-gaap:SeriesAPreferredStockMember 2020-12-31 0001735707 2019-12-31 0001735707 2020-06-30 0001735707 us-gaap:CommonStockMember 2019-12-31 0001735707 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001735707 us-gaap:RetainedEarningsMember 2019-12-31 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001735707 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001735707 2020-01-01 2020-03-31 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001735707 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001735707 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-03-31 0001735707 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-03-31 0001735707 us-gaap:CommonStockMember 2020-03-31 0001735707 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001735707 us-gaap:RetainedEarningsMember 2020-03-31 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001735707 2020-03-31 0001735707 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001735707 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001735707 us-gaap:CommonStockMember 2020-06-30 0001735707 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001735707 us-gaap:RetainedEarningsMember 2020-06-30 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001735707 us-gaap:CommonStockMember 2020-12-31 0001735707 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001735707 us-gaap:RetainedEarningsMember 2020-12-31 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001735707 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001735707 2021-01-01 2021-03-31 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001735707 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001735707 us-gaap:CommonStockMember 2021-03-31 0001735707 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001735707 us-gaap:RetainedEarningsMember 2021-03-31 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001735707 2021-03-31 0001735707 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001735707 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001735707 us-gaap:SeriesAPreferredStockMember 2021-04-01 2021-06-30 0001735707 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001735707 us-gaap:CommonStockMember 2021-06-30 0001735707 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001735707 us-gaap:RetainedEarningsMember 2021-06-30 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001735707 gtx:ContinuityAwardsMember 2021-01-01 2021-06-30 xbrli:pure 0001735707 srt:MinimumMember 2021-04-25 2021-04-25 0001735707 2021-04-26 2021-04-26 0001735707 us-gaap:CommonStockMember 2021-04-26 2021-04-26 0001735707 us-gaap:SeriesAPreferredStockMember 2021-04-26 2021-04-26 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember 2021-04-26 2021-04-26 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember srt:ScenarioForecastMember 2022-12-31 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember 2021-06-30 0001735707 gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember 2021-04-26 2021-04-26 0001735707 gtx:PSAAndTransactionAmendedPlanMember gtx:DirectorsOfficersAndOtherEmployeesMember 2021-04-26 0001735707 gtx:DebtorInPossessionTermLoanFacilityMember 2021-04-26 2021-04-26 0001735707 gtx:CreditAgreementMember gtx:TermAFacilityMember gtx:SeniorSecuredCreditFacilitiesMember 2018-09-27 2018-09-27 iso4217:EUR 0001735707 gtx:CreditAgreementMember gtx:TermBFacilityMember gtx:SeniorSecuredCreditFacilitiesMember 2018-09-27 2018-09-27 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember gtx:SeniorSecuredCreditFacilitiesMember 2018-09-27 2018-09-27 0001735707 gtx:CreditAgreementMember gtx:SeniorSecuredCreditFacilitiesMember 2018-09-27 2018-09-27 0001735707 us-gaap:SeniorNotesMember gtx:DebtorsMember 2018-09-27 2018-09-27 0001735707 gtx:DebtorsMember 2018-09-27 0001735707 gtx:DebtorsMember us-gaap:SettledLitigationMember 2018-09-27 0001735707 gtx:CreditAgreementMember gtx:TermLoanFacilityMember us-gaap:SecuredDebtMember 2021-04-26 2021-04-26 0001735707 gtx:CreditAgreementMember gtx:TermLoanFacilityMember us-gaap:SecuredDebtMember 2021-04-26 0001735707 gtx:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2021-04-26 2021-04-26 0001735707 gtx:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2021-04-26 0001735707 us-gaap:LetterOfCreditMember gtx:BNPParibasMember 2021-04-26 0001735707 us-gaap:LetterOfCreditMember gtx:BNPParibasMember 2021-04-26 2021-04-26 0001735707 2021-04-26 0001735707 gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember 2021-01-01 2021-06-30 0001735707 us-gaap:SettledLitigationMember 2021-06-30 0001735707 us-gaap:LetterOfCreditMember us-gaap:RevolvingCreditFacilityMember 2021-04-26 0001735707 gtx:SecuredTermLoanFacilitiesAndAccruedInterestMember 2020-12-31 0001735707 us-gaap:RevolvingCreditFacilityMember 2020-12-31 0001735707 gtx:SeniorNotesAndAccruedInterestMember 2020-12-31 0001735707 gtx:DebtorInPossessionTermLoanFacilityMember 2020-12-31 0001735707 gtx:SecuredTermLoanFacilitiesAndAccruedInterestMember 2021-01-01 2021-06-30 0001735707 us-gaap:RevolvingCreditFacilityMember 2021-01-01 2021-06-30 0001735707 gtx:SeniorNotesAndAccruedInterestMember 2021-01-01 2021-06-30 0001735707 gtx:DebtorInPossessionTermLoanFacilityMember 2021-01-01 2021-06-30 0001735707 gtx:TermLoanFacilitiesMember 2021-01-01 2021-06-30 0001735707 gtx:TermLoanFacilitiesMember 2021-06-30 0001735707 us-gaap:ObligationsMember 2020-12-31 0001735707 us-gaap:SeniorNotesMember 2020-12-31 0001735707 gtx:PensionCompensationBenefitAndOtherEmployeeRelatedMember 2020-12-31 0001735707 gtx:UncertainTaxPositionsAndDeferredTaxesMember 2020-12-31 0001735707 us-gaap:AccountsPayableMember 2020-12-31 0001735707 gtx:AdvancedDiscountsFromSuppliersMember 2020-12-31 0001735707 gtx:LeaseLiabilityMember 2020-12-31 0001735707 gtx:ProductWarrantiesAndPerformanceGuaranteesMember 2020-12-31 0001735707 gtx:FreightAccrualMember 2020-12-31 0001735707 us-gaap:OtherLiabilitiesMember 2020-12-31 0001735707 us-gaap:ObligationsMember 2021-01-01 2021-06-30 0001735707 us-gaap:SeniorNotesMember 2021-01-01 2021-06-30 0001735707 gtx:PensionCompensationBenefitAndOtherEmployeeRelatedMember 2021-01-01 2021-06-30 0001735707 gtx:UncertainTaxPositionsAndDeferredTaxesMember 2021-01-01 2021-06-30 0001735707 us-gaap:AccountsPayableMember 2021-01-01 2021-06-30 0001735707 gtx:AdvancedDiscountsFromSuppliersMember 2021-01-01 2021-06-30 0001735707 gtx:LeaseLiabilityMember 2021-01-01 2021-06-30 0001735707 gtx:FreightAccrualMember 2021-01-01 2021-06-30 0001735707 us-gaap:OtherLiabilitiesMember 2021-01-01 2021-06-30 0001735707 gtx:ProductWarrantiesAndPerformanceGuaranteesMember 2021-01-01 2021-06-30 0001735707 gtx:HoneywellInternationalIncMember 2021-04-01 2021-06-30 0001735707 gtx:HoneywellInternationalIncMember 2021-01-01 2021-06-30 0001735707 gtx:HoneywellInternationalIncMember 2021-06-30 0001735707 country:US gtx:OriginalEquipmentManufacturersMember 2021-04-01 2021-06-30 0001735707 country:US gtx:AftermarketMember 2021-04-01 2021-06-30 0001735707 country:US 2021-04-01 2021-06-30 0001735707 srt:EuropeMember gtx:OriginalEquipmentManufacturersMember 2021-04-01 2021-06-30 0001735707 srt:EuropeMember gtx:AftermarketMember 2021-04-01 2021-06-30 0001735707 srt:EuropeMember gtx:OtherMember 2021-04-01 2021-06-30 0001735707 srt:EuropeMember 2021-04-01 2021-06-30 0001735707 srt:AsiaMember gtx:OriginalEquipmentManufacturersMember 2021-04-01 2021-06-30 0001735707 srt:AsiaMember gtx:AftermarketMember 2021-04-01 2021-06-30 0001735707 srt:AsiaMember gtx:OtherMember 2021-04-01 2021-06-30 0001735707 srt:AsiaMember 2021-04-01 2021-06-30 0001735707 us-gaap:NonUsMember gtx:OriginalEquipmentManufacturersMember 2021-04-01 2021-06-30 0001735707 us-gaap:NonUsMember gtx:AftermarketMember 2021-04-01 2021-06-30 0001735707 us-gaap:NonUsMember 2021-04-01 2021-06-30 0001735707 gtx:OriginalEquipmentManufacturersMember 2021-04-01 2021-06-30 0001735707 gtx:AftermarketMember 2021-04-01 2021-06-30 0001735707 gtx:OtherMember 2021-04-01 2021-06-30 0001735707 country:US gtx:OriginalEquipmentManufacturersMember 2021-01-01 2021-06-30 0001735707 country:US gtx:AftermarketMember 2021-01-01 2021-06-30 0001735707 country:US gtx:OtherMember 2021-01-01 2021-06-30 0001735707 country:US 2021-01-01 2021-06-30 0001735707 srt:EuropeMember gtx:OriginalEquipmentManufacturersMember 2021-01-01 2021-06-30 0001735707 srt:EuropeMember gtx:AftermarketMember 2021-01-01 2021-06-30 0001735707 srt:EuropeMember gtx:OtherMember 2021-01-01 2021-06-30 0001735707 srt:EuropeMember 2021-01-01 2021-06-30 0001735707 srt:AsiaMember gtx:OriginalEquipmentManufacturersMember 2021-01-01 2021-06-30 0001735707 srt:AsiaMember gtx:AftermarketMember 2021-01-01 2021-06-30 0001735707 srt:AsiaMember gtx:OtherMember 2021-01-01 2021-06-30 0001735707 srt:AsiaMember 2021-01-01 2021-06-30 0001735707 us-gaap:NonUsMember gtx:OriginalEquipmentManufacturersMember 2021-01-01 2021-06-30 0001735707 us-gaap:NonUsMember gtx:AftermarketMember 2021-01-01 2021-06-30 0001735707 us-gaap:NonUsMember 2021-01-01 2021-06-30 0001735707 gtx:OriginalEquipmentManufacturersMember 2021-01-01 2021-06-30 0001735707 gtx:AftermarketMember 2021-01-01 2021-06-30 0001735707 gtx:OtherMember 2021-01-01 2021-06-30 0001735707 country:US gtx:OriginalEquipmentManufacturersMember 2020-04-01 2020-06-30 0001735707 country:US gtx:AftermarketMember 2020-04-01 2020-06-30 0001735707 country:US gtx:OtherMember 2020-04-01 2020-06-30 0001735707 country:US 2020-04-01 2020-06-30 0001735707 srt:EuropeMember gtx:OriginalEquipmentManufacturersMember 2020-04-01 2020-06-30 0001735707 srt:EuropeMember gtx:AftermarketMember 2020-04-01 2020-06-30 0001735707 srt:EuropeMember gtx:OtherMember 2020-04-01 2020-06-30 0001735707 srt:EuropeMember 2020-04-01 2020-06-30 0001735707 srt:AsiaMember gtx:OriginalEquipmentManufacturersMember 2020-04-01 2020-06-30 0001735707 srt:AsiaMember gtx:AftermarketMember 2020-04-01 2020-06-30 0001735707 srt:AsiaMember gtx:OtherMember 2020-04-01 2020-06-30 0001735707 srt:AsiaMember 2020-04-01 2020-06-30 0001735707 us-gaap:NonUsMember gtx:AftermarketMember 2020-04-01 2020-06-30 0001735707 us-gaap:NonUsMember 2020-04-01 2020-06-30 0001735707 gtx:OriginalEquipmentManufacturersMember 2020-04-01 2020-06-30 0001735707 gtx:AftermarketMember 2020-04-01 2020-06-30 0001735707 gtx:OtherMember 2020-04-01 2020-06-30 0001735707 country:US gtx:OriginalEquipmentManufacturersMember 2020-01-01 2020-06-30 0001735707 country:US gtx:AftermarketMember 2020-01-01 2020-06-30 0001735707 country:US gtx:OtherMember 2020-01-01 2020-06-30 0001735707 country:US 2020-01-01 2020-06-30 0001735707 srt:EuropeMember gtx:OriginalEquipmentManufacturersMember 2020-01-01 2020-06-30 0001735707 srt:EuropeMember gtx:AftermarketMember 2020-01-01 2020-06-30 0001735707 srt:EuropeMember gtx:OtherMember 2020-01-01 2020-06-30 0001735707 srt:EuropeMember 2020-01-01 2020-06-30 0001735707 srt:AsiaMember gtx:OriginalEquipmentManufacturersMember 2020-01-01 2020-06-30 0001735707 srt:AsiaMember gtx:AftermarketMember 2020-01-01 2020-06-30 0001735707 srt:AsiaMember gtx:OtherMember 2020-01-01 2020-06-30 0001735707 srt:AsiaMember 2020-01-01 2020-06-30 0001735707 us-gaap:NonUsMember gtx:OriginalEquipmentManufacturersMember 2020-01-01 2020-06-30 0001735707 us-gaap:NonUsMember gtx:AftermarketMember 2020-01-01 2020-06-30 0001735707 us-gaap:NonUsMember 2020-01-01 2020-06-30 0001735707 gtx:OriginalEquipmentManufacturersMember 2020-01-01 2020-06-30 0001735707 gtx:AftermarketMember 2020-01-01 2020-06-30 0001735707 gtx:OtherMember 2020-01-01 2020-06-30 0001735707 gtx:ResearchAndDevelopmentOfNewProductCostsMember us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001735707 gtx:ResearchAndDevelopmentOfNewProductCostsMember us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0001735707 gtx:ResearchAndDevelopmentOfNewProductCostsMember us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001735707 gtx:ResearchAndDevelopmentOfNewProductCostsMember us-gaap:CostOfSalesMember 2020-01-01 2020-06-30 0001735707 gtx:EngineeringRelatedExpensesMember us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001735707 gtx:EngineeringRelatedExpensesMember us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0001735707 gtx:EngineeringRelatedExpensesMember us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001735707 gtx:EngineeringRelatedExpensesMember us-gaap:CostOfSalesMember 2020-01-01 2020-06-30 0001735707 us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001735707 us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0001735707 us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001735707 us-gaap:CostOfSalesMember 2020-01-01 2020-06-30 0001735707 2020-01-01 2020-12-31 0001735707 us-gaap:EmployeeSeveranceMember 2019-12-31 0001735707 us-gaap:SpinoffMember 2019-12-31 0001735707 us-gaap:EmployeeSeveranceMember 2020-01-01 2020-06-30 0001735707 us-gaap:SpinoffMember 2020-01-01 2020-06-30 0001735707 us-gaap:EmployeeSeveranceMember 2020-06-30 0001735707 us-gaap:SpinoffMember 2020-06-30 0001735707 us-gaap:EmployeeSeveranceMember 2020-12-31 0001735707 us-gaap:EmployeeSeveranceMember 2021-01-01 2021-06-30 0001735707 us-gaap:EmployeeSeveranceMember 2021-06-30 0001735707 srt:MaximumMember 2021-01-01 2021-06-30 0001735707 srt:MaximumMember 2021-06-30 0001735707 gtx:USDollarTermLoanFacilityMember gtx:CreditAgreementMember us-gaap:SecuredDebtMember 2021-04-30 2021-04-30 0001735707 gtx:USDollarTermLoanFacilityMember gtx:CreditAgreementMember us-gaap:SecuredDebtMember 2021-04-30 0001735707 gtx:EuroTermLoanFacilityMember gtx:CreditAgreementMember us-gaap:SecuredDebtMember 2021-04-30 2021-04-30 0001735707 gtx:EuroTermLoanFacilityMember gtx:CreditAgreementMember us-gaap:SecuredDebtMember 2021-04-30 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember us-gaap:SecuredDebtMember 2021-04-30 2021-04-30 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember us-gaap:SecuredDebtMember 2021-04-30 0001735707 gtx:CreditAgreementMember 2021-04-30 0001735707 gtx:USDollarTermLoanFacilityMember 2021-06-30 0001735707 gtx:EuroTermLoanFacilityMember 2021-06-30 0001735707 gtx:USDollarTermLoanFacilityMember 2021-01-01 2021-06-30 0001735707 gtx:EuroTermLoanFacilityMember 2021-01-01 2021-06-30 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember 2021-04-26 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember 2021-04-26 2021-04-26 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember 2021-06-30 0001735707 us-gaap:StandbyLettersOfCreditMember gtx:CreditAgreementMember 2021-06-30 0001735707 us-gaap:LetterOfCreditMember 2021-06-30 0001735707 gtx:CreditAgreementMember 2021-01-01 2021-06-30 0001735707 us-gaap:RevolvingCreditFacilityMember gtx:CreditAgreementMember 2021-01-01 2021-06-30 0001735707 gtx:TermLoanFacilityMember gtx:CreditAgreementMember 2021-01-01 2021-06-30 0001735707 gtx:CreditAgreementMember srt:MaximumMember gtx:AlternateBaseRateMember 2021-01-01 2021-06-30 0001735707 gtx:CreditAgreementMember srt:MaximumMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-06-30 0001735707 gtx:CreditAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-06-30 0001735707 gtx:CreditAgreementMember gtx:AlternateBaseRateMember 2021-01-01 2021-06-30 0001735707 us-gaap:EurodollarMember 2021-01-01 2021-06-30 0001735707 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember 2021-01-01 2021-06-30 0001735707 srt:MaximumMember gtx:AlternateBaseRateMember 2021-01-01 2021-06-30 0001735707 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2021-01-01 2021-06-30 0001735707 gtx:CreditAgreementMember 2021-06-30 0001735707 srt:MaximumMember 2020-01-01 2020-12-31 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember 2021-01-01 2021-06-30 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember srt:MaximumMember 2021-06-30 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember srt:ScenarioForecastMember 2022-04-30 0001735707 us-gaap:SeriesBPreferredStockMember gtx:PSAAndTransactionAmendedPlanMember gtx:HoneywellInternationalIncMember srt:ScenarioForecastMember 2021-09-30 0001735707 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DesignatedAsHedgingInstrumentMember 2021-06-30 0001735707 us-gaap:CurrencySwapMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DesignatedAsHedgingInstrumentMember 2021-06-30 0001735707 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:NondesignatedMember 2021-06-30 0001735707 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:NondesignatedMember 2021-06-30 0001735707 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:NondesignatedMember 2021-06-30 0001735707 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001735707 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:NondesignatedMember 2020-12-31 0001735707 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:NondesignatedMember 2020-12-31 0001735707 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001735707 us-gaap:InterestRateSwapMember 2021-06-30 0001735707 us-gaap:CrossCurrencyInterestRateContractMember 2021-06-30 0001735707 us-gaap:CrossCurrencyInterestRateContractMember 2021-01-01 2021-06-30 0001735707 us-gaap:CrossCurrencyInterestRateContractMember 2021-04-01 2021-06-30 0001735707 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-06-30 0001735707 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001735707 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0001735707 us-gaap:SeriesAPreferredStockMember 2021-01-01 2021-06-30 0001735707 us-gaap:SeriesAPreferredStockMember srt:MaximumMember 2021-06-30 0001735707 us-gaap:SeriesBPreferredStockMember srt:MaximumMember 2021-06-30 0001735707 srt:MinimumMember 2021-01-01 2021-06-30 0001735707 us-gaap:SeriesAPreferredStockMember gtx:RegistrationRightsAgreementMember 2021-04-30 0001735707 gtx:RegistrationRightsAgreementMember 2021-04-30 0001735707 gtx:RegistrationRightsAgreementMember 2021-01-01 2021-06-30 gtx:Director 0001735707 gtx:CenterbridgeInvestorsMember 2021-01-01 2021-06-30 0001735707 gtx:OaktreeInvestorsMember 2021-01-01 2021-06-30 0001735707 gtx:AdditionalInvestorsMember 2021-01-01 2021-06-30 0001735707 srt:ChiefExecutiveOfficerMember 2021-01-01 2021-06-30 0001735707 gtx:CenterbridgeInvestorsMember gtx:ScenarioOneMember 2021-01-01 2021-06-30 0001735707 gtx:OaktreeInvestorsMember gtx:ScenarioOneMember 2021-01-01 2021-06-30 0001735707 gtx:CenterbridgeInvestorsMember gtx:ScenarioTwoMember 2021-01-01 2021-06-30 0001735707 gtx:OaktreeInvestorsMember gtx:ScenarioTwoMember 2021-01-01 2021-06-30 0001735707 gtx:CenterbridgeInvestorsMember gtx:ScenarioThreeMember 2021-01-01 2021-06-30 0001735707 gtx:OaktreeInvestorsMember gtx:ScenarioThreeMember 2021-01-01 2021-06-30 0001735707 gtx:CenterbridgeInvestorsMember gtx:ScenarioFourMember 2021-01-01 2021-06-30 0001735707 gtx:OaktreeInvestorsMember gtx:ScenarioFourMember 2021-01-01 2021-06-30 0001735707 gtx:AdditionalInvestorsMember gtx:ScenarioOneMember 2021-01-01 2021-06-30 0001735707 gtx:AdditionalInvestorsMember gtx:ScenarioFiveMember 2021-01-01 2021-06-30 0001735707 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001735707 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001735707 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001735707 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-06-30 0001735707 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-06-30 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0001735707 us-gaap:AccumulatedTranslationAdjustmentMember 2020-06-30 0001735707 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-06-30 0001735707 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-06-30 0001735707 us-gaap:AccumulatedTranslationAdjustmentMember 2020-12-31 0001735707 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-12-31 0001735707 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-12-31 0001735707 us-gaap:AccumulatedTranslationAdjustmentMember 2021-01-01 2021-06-30 0001735707 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-01-01 2021-06-30 0001735707 gtx:AccumulatedGainLossChangesInFairValueOfNetInvestmentHedgesMember 2021-01-01 2021-06-30 0001735707 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0001735707 us-gaap:AccumulatedTranslationAdjustmentMember 2021-06-30 0001735707 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2021-06-30 0001735707 gtx:AccumulatedGainLossChangesInFairValueOfNetInvestmentHedgesMember 2021-06-30 0001735707 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-06-30 0001735707 gtx:StockIncentivePlanMember srt:MaximumMember 2018-09-14 0001735707 gtx:DirectorEquityPlanMember srt:MaximumMember 2018-09-14 0001735707 gtx:StockIncentivePlanMember us-gaap:EmployeeStockOptionMember srt:MaximumMember 2018-09-14 0001735707 2018-09-14 2018-09-14 0001735707 us-gaap:RestrictedStockUnitsRSUMember 2021-04-26 2021-04-26 0001735707 us-gaap:RestrictedStockUnitsRSUMember 2021-04-26 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:RecordedToEquityMember 2021-04-26 2021-04-26 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:ReorganizationItemsNetMember 2021-04-26 2021-04-26 0001735707 us-gaap:PerformanceSharesMember 2021-04-26 2021-04-26 0001735707 us-gaap:PerformanceSharesMember 2021-04-26 0001735707 us-gaap:PerformanceSharesMember gtx:ReorganizationItemsNetMember 2021-04-26 2021-04-26 0001735707 us-gaap:EmployeeStockOptionMember gtx:ReorganizationItemsNetMember 2021-04-26 2021-04-26 0001735707 gtx:CashPerformanceStockUnitsMember 2021-04-26 2021-04-26 0001735707 gtx:CashPerformanceStockUnitsMember 2021-04-26 0001735707 gtx:CashPerformanceStockUnitsMember gtx:ReorganizationItemsNetMember 2021-04-26 2021-04-26 0001735707 gtx:TwoThousandTwentyOneLongTermIncentivePlanMember srt:MaximumMember 2021-05-25 0001735707 gtx:TwoThousandTwentyOneLongTermIncentivePlanMember 2021-06-30 0001735707 srt:MinimumMember us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001735707 srt:MaximumMember us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:LongTermIncentivePlanMember gtx:OfficersCertainKeyEmployeesAndNonEmployeeDirectorsMember 2021-01-01 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:StockIncentivePlanAndLongTermIncentivePlanMember 2020-12-31 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:StockIncentivePlanAndLongTermIncentivePlanMember 2021-01-01 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:StockIncentivePlanAndLongTermIncentivePlanMember 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember 2020-04-01 2020-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember 2021-04-01 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:LongTermIncentivePlanMember 2021-06-30 0001735707 us-gaap:RestrictedStockUnitsRSUMember gtx:LongTermIncentivePlanMember 2021-01-01 2021-06-30 0001735707 gtx:StockIncentivePlanMember 2021-06-30 0001735707 us-gaap:PerformanceSharesMember gtx:LongTermIncentivePlanMember gtx:OfficersAndCertainKeyEmployeesMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember gtx:TwoThousandTwentyOnePerformanceStockUnitsLongTermIncentivePlanMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember gtx:TwoThousandTwentyOnePerformanceStockUnitsLongTermIncentivePlanForTotalShareHolderReturnMeasureMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember gtx:TwoThousandTwentyOnePerformanceStockUnitsLongTermIncentivePlanForAdjustedEBITDAAndAdjustedEBITDAMarginMeasuresMember 2021-01-01 2021-06-30 0001735707 srt:MinimumMember us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001735707 srt:MaximumMember us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember gtx:StockIncentivePlanAndLongTermIncentivePlanMember 2020-12-31 0001735707 us-gaap:PerformanceSharesMember gtx:StockIncentivePlanAndLongTermIncentivePlanMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember gtx:StockIncentivePlanAndLongTermIncentivePlanMember 2021-06-30 0001735707 gtx:StockIncentivePlanMember us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001735707 us-gaap:PerformanceSharesMember 2021-04-01 2021-06-30 0001735707 gtx:LongTermIncentivePlanMember us-gaap:PerformanceSharesMember 2021-06-30 0001735707 gtx:LongTermIncentivePlanMember us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001735707 gtx:StockIncentivePlanMember us-gaap:PerformanceSharesMember 2021-06-30 0001735707 gtx:ContinuityAwardsMember 2020-06-01 2020-06-30 0001735707 gtx:ContinuityAwardsMember 2021-06-30 0001735707 gtx:ContinuityAwardsMember 2020-12-31 0001735707 gtx:ContinuityAwardsMember 2021-04-01 2021-06-30 0001735707 gtx:ContinuityAwardsMember 2020-04-01 2020-06-30 0001735707 gtx:ContinuityAwardsMember 2020-01-01 2020-06-30 0001735707 gtx:BendixAsbestosRelatedLiabilitiesMember gtx:HoneywellIndemnityAgreementsMember gtx:HoneywellInternationalIncMember 2018-09-11 2018-09-12 0001735707 gtx:HoneywellIndemnityAgreementsMember gtx:HoneywellInternationalIncMember 2018-09-11 2018-09-12 0001735707 gtx:HoneywellIndemnityAgreementsMember 2018-09-12 0001735707 gtx:HoneywellIndemnityAgreementsMember gtx:HoneywellInternationalIncMember 2020-01-01 2020-03-31 0001735707 gtx:HoneywellIndemnityAgreementsMember 2018-09-11 2018-09-12 0001735707 gtx:HoneywellIndemnityAgreementsMember 2021-01-01 2021-06-30 0001735707 gtx:HoneywellIndemnityAgreementsMember gtx:HoneywellInternationalIncMember 2021-01-01 2021-06-30 0001735707 gtx:HoneywellInternationalIncMember gtx:TaxMattersAgreementMember 2018-10-01 0001735707 gtx:HoneywellInternationalIncMember gtx:TaxMattersAgreementMember 2020-09-30 gtx:Installment 0001735707 gtx:HoneywellInternationalIncMember gtx:TaxMattersAgreementMember 2018-10-01 2018-10-01 0001735707 gtx:HoneywellInternationalIncMember gtx:TaxMattersAgreementMember 2019-01-01 2019-12-31 0001735707 gtx:HoneywellInternationalIncMember gtx:TaxMattersAgreementMember 2018-10-01 2018-12-31 0001735707 srt:MinimumMember gtx:HoneywellInternationalIncMember 2020-12-18 2020-12-18 0001735707 gtx:DebtorsMember 2021-06-30 0001735707 2021-01-11 0001735707 us-gaap:SecretariatOfTheFederalRevenueBureauOfBrazilMember 2021-06-30 0001735707 us-gaap:SecretariatOfTheFederalRevenueBureauOfBrazilMember 2021-01-01 2021-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2021-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2021-01-01 2021-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2021-04-01 2021-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2020-04-01 2020-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember country:US 2021-01-01 2021-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember country:US 2020-01-01 2020-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2020-01-01 2020-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember country:US 2021-04-01 2021-06-30 0001735707 us-gaap:PensionPlansDefinedBenefitMember country:US 2020-04-01 2020-06-30

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _____ to ______

Commission File Number: 001-38636

 

Garrett Motion Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

82-4873189

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

La Pièce 16, Rolle, Switzerland

1180

(Address of principal executive offices)

(Zip Code)

 

+41 21 695 30 00

(Registrant’s telephone number, including area code)

 

N/A

(Former Name, Former Address and Former Fiscal Year,

if Changed Since Last Report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

GTX

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes      No  

As of July 22, 2021, the registrant had 65,062,181 shares of Common Stock, $0.001 par value per share, outstanding.

 

 

 

 


 

 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

3

Item 1.

Financial Statements (Unaudited)

3

 

Consolidated Interim Statements of Operations (Unaudited)

3

 

Consolidated Interim Statements of Comprehensive Income (Loss) (Unaudited)

4

 

Consolidated Interim Balance Sheets (Unaudited)

5

 

Consolidated Interim Statements of Cash Flows (Unaudited)

6

 

Consolidated Interim Statements of Equity (Deficit) (Unaudited)

7

 

Notes to Unaudited Consolidated Interim Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

40

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

54

Item 4.

Controls and Procedures

54

PART II.

OTHER INFORMATION

55

Item 1.

Legal Proceedings

55

Item 1A.

Risk Factors

55

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

67

Item 3.

Defaults Upon Senior Securities

68

Item 4.

Mine Safety Disclosures

68

Item 5.

Other Information

68

Item 6.

Exhibits

69

Signatures

71

 

 

 

i


 

 

BASIS OF PRESENTATION

Unless the context otherwise requires, references to “Garrett,” “we,” “us,” “our,” and “the Company” in this Quarterly Report on Form 10-Q refer to Garrett Motion Inc. and its subsidiaries.

2


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

GARRETT MOTION INC.

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

(Unaudited)

 

 

For the Three Months

Ended June 30,

 

 

For the Six Months

Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(Dollars in millions, except per share amounts)

 

Net sales (Note 4)

 

$

935

 

 

$

477

 

 

$

1,932

 

 

$

1,222

 

Cost of goods sold

 

 

742

 

 

 

397

 

 

 

1,543

 

 

 

1,004

 

Gross profit

 

 

193

 

 

 

80

 

 

 

389

 

 

 

218

 

Selling, general and administrative expenses

 

 

51

 

 

 

47

 

 

 

106

 

 

 

104

 

Other expense, net (Note 6)

 

 

 

 

 

15

 

 

 

1

 

 

 

31

 

Interest expense

 

 

24

 

 

 

20

 

 

 

45

 

 

 

36

 

Non-operating (income) expense

 

 

(26

)

 

 

(4

)

 

 

 

 

 

(8

)

Reorganization items, net (Note 2)

 

 

(295

)

 

 

 

 

 

(121

)

 

 

 

Income before taxes

 

 

439

 

 

 

2

 

 

 

358

 

 

 

55

 

Tax expense (Note 7)

 

 

30

 

 

 

11

 

 

 

54

 

 

 

12

 

Net income (loss)

 

 

409

 

 

 

(9

)

 

 

304

 

 

 

43

 

Less: preferred dividend (Note 18)

 

 

(24

)

 

 

 

 

 

(24

)

 

 

 

Net income (loss) available to common shareholders

 

$

385

 

 

$

(9

)

 

$

280

 

 

$

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings income (loss) per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

5.53

 

 

$

(0.12

)

 

$

3.84

 

 

$

0.57

 

Diluted

 

$

1.73

 

 

$

(0.12

)

 

$

1.94

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

69,667,651

 

 

 

75,595,991

 

 

 

72,862,102

 

 

 

75,316,827

 

Diluted

 

 

235,754,538

 

 

 

75,845,511

 

 

 

156,364,349

 

 

 

75,837,459

 

 

The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.

3


 

GARRETT MOTION INC.

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Unaudited)

 

 

 

For the Three Months

Ended June 30,

 

 

For the Six Months

Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(Dollars in millions)

 

Net income (loss)

 

$

409

 

 

$

(9

)

 

$

304

 

 

$

43

 

Foreign exchange translation adjustment

 

 

(67

)

 

 

(50

)

 

 

43

 

 

 

(11

)

Changes in fair value of effective cash flow hedges,

  net of tax (Note 17)

 

 

4

 

 

 

(2

)

 

 

5

 

 

 

(2

)

Changes in fair value of net investment hedges, net of tax

 

 

15

 

 

 

 

 

 

15

 

 

 

 

Total other comprehensive (loss) income, net of tax

 

 

(48

)

 

 

(52

)

 

 

63

 

 

 

(13

)

Comprehensive income (loss)

 

$

361

 

 

$

(61

)

 

$

367

 

 

$

30

 

 

The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.

4


 

GARRETT MOTION INC.

CONSOLIDATED INTERIM BALANCE SHEETS

(Unaudited)

 

 

 

June 30,

2021

 

 

December 31,

2020

 

 

 

(Dollars in millions)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

401

 

 

$

592

 

Restricted cash

 

 

215

 

 

 

101

 

Accounts, notes and other receivables – net (Note 8)

 

 

784

 

 

 

841

 

Inventories – net (Note 10)

 

 

275

 

 

 

235

 

Other current assets

 

 

59

 

 

 

110

 

Total current assets

 

 

1,734

 

 

 

1,879

 

Investments and long-term receivables

 

 

30

 

 

 

30

 

Property, plant and equipment – net

 

 

481

 

 

 

505

 

Goodwill

 

 

193

 

 

 

193

 

Deferred income taxes

 

 

261

 

 

 

275

 

Other assets (Note 11)

 

 

138

 

 

 

135

 

Total assets

 

$

2,837

 

 

$

3,017

 

LIABILITIES

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,114

 

 

$

1,019

 

Borrowings under revolving credit facility (Note 2)

 

 

 

 

 

370

 

Current maturities of long-term debt (Note 15)

 

 

5

 

 

 

 

Debtor-in-possession Term Loan (Note 2)

 

 

 

 

 

200

 

Mandatorily redeemable Series B Preferred Stock (Note 16)

 

 

35

 

 

 

 

Accrued liabilities (Note 12)

 

 

338

 

 

 

248

 

Total current liabilities

 

 

1,492

 

 

 

1,837

 

Long-term debt (Note 15)

 

 

1,204

 

 

 

1,082

 

Mandatorily redeemable Series B Preferred Stock – long-term (Note 16)

 

 

550

 

 

 

 

Deferred income taxes

 

 

20

 

 

 

2

 

Other liabilities (Note 13)

 

 

277

 

 

 

114

 

Total liabilities not subject to compromise

 

 

3,543

 

 

 

3,035

 

Liabilities subject to compromise (Note 2)

 

 

 

 

 

2,290

 

Total liabilities

 

$

3,543

 

 

$

5,325

 

COMMITMENTS AND CONTINGENCIES (Note 22)

 

 

 

 

 

 

 

 

EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Series A Preferred Stock, par value $0.001; 247,768,962 shares issued and outstanding as of June 30, 2021 (Note 18)

 

$

 

 

$

 

Common Stock, par value $0.001; 1,000,000,000 and 400,000,000 shares authorized, 65,050,367 and 76,229,578 issued and 65,050,367 and 75,813,634 outstanding as of June 30, 2021 and December 31, 2020, respectively (Note 18)

 

 

 

 

 

 

Additional paid – in capital

 

 

1,332

 

 

 

28

 

Retained deficit

 

 

(1,972

)

 

 

(2,207

)

Accumulated other comprehensive loss (Note 19)

 

 

(66

)

 

 

(129

)

Total deficit

 

 

(706

)

 

 

(2,308

)

Total liabilities and deficit

 

$

2,837

 

 

$

3,017

 

 

The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.

5


 

GARRETT MOTION INC.

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

 

(Dollars in millions)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

304

 

 

$

43

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Reorganization items, net

 

 

(373

)

 

 

 

Deferred income taxes

 

 

3

 

 

 

(5

)

Depreciation

 

 

47

 

 

 

37

 

Amortization of deferred financing costs

 

 

4

 

 

 

3

 

Foreign exchange loss

 

 

9

 

 

 

3

 

Stock compensation expense

 

 

3

 

 

 

6

 

Pension expense

 

 

(1

)

 

 

 

Other

 

 

1

 

 

 

4

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

  Accounts, notes and other receivables

 

 

17

 

 

 

114

 

  Inventories

 

 

(51

)

 

 

(23

)

  Other assets

 

 

58

 

 

 

(11

)

  Accounts payable

 

 

(52

)

 

 

(231

)

  Accrued liabilities

 

 

(2

)

 

 

(16

)

  Obligations payable to Honeywell

 

 

(375

)

 

 

(8

)

  Other liabilities

 

 

17

 

 

 

(11

)

Net cash used for operating activities

 

$

(391

)

 

$

(95

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Expenditures for property, plant and equipment

 

 

(40

)

 

 

(63

)

Other

 

 

1

 

 

 

(1

)

Net cash used for investing activities

 

$

(39

)

 

$

(64

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of Series A Preferred Stock

 

 

1,301

 

 

 

 

Proceeds from issuance of long-term debt, net of deferred financing costs

 

 

1,221

 

 

 

 

Proceeds from revolving credit facility

 

 

 

 

 

1,023

 

Payments of long-term debt

 

 

(1,515

)

 

 

(2

)

Payments of revolving credit facility

 

 

(370

)

 

 

(904

)

Payments of debtor-in-possession financing

 

 

(200

)

 

 

 

Payments for Cash-Out election

 

 

(69

)

 

 

 

Revolving facility financing costs

 

 

(8

)

 

 

 

Debtor-in-possession financing fees

 

 

(1

)

 

 

 

Other

 

 

 

 

 

(3

)

Net cash provided by financing activities

 

$

359

 

 

$

114

 

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

 

 

(6

)

 

 

(3

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(77

)

 

 

(48

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

693

 

 

 

187

 

Cash, cash equivalents and restricted cash at end of period

 

$

616

 

 

$

139

 

Supplemental cash flow disclosure:

 

 

 

 

 

 

 

 

Income taxes paid (net of refunds)

 

 

32

 

 

 

7

 

Interest expense paid

 

 

57

 

 

 

30

 

Reorganization items paid

 

 

252

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Issuance of Mandatorily redeemable Series B Preferred Stock

 

 

577

 

 

 

 

 

The Notes to the Consolidated Interim Financial Statements are an integral part of this statement

6


 

GARRETT MOTION INC.

CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Series A

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Retained

 

 

Other

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-in

 

 

(Deficit)

 

 

Comprehensive

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Income/(Loss)

 

 

Deficit

 

 

 

(in millions)

 

Balance at December 31, 2019

 

 

 

 

 

 

 

 

75

 

 

 

 

 

$

19

 

 

$

(2,282

)

 

$

130

 

 

$

(2,133

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

Adoption impact of ASU 2016-13,

   Financial Instruments -

  Credit Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

(5

)

Balance at March 31, 2020

 

 

 

 

 

 

 

 

75

 

 

 

 

 

$

20

 

 

$

(2,235

)

 

$

169

 

 

$

(2,046

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9

)