0001735707-22-000042 | 10-Q | XBRL Viewer

Accounts, Notes and Other Receivables-Net (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Accounts, Notes and Other Receivables Net


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Trade receivables	$	606	$	553
Notes receivable	110		$	121
Other receivables	76		$	78
	792		752
Less—Allowance for expected credit losses	(6)		(5)
	$	786	$	747

Revenue Recognition and Contracts with Customers

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition and Contracts with Customers

Note 3. Revenue Recognition and Contracts with Customers

Disaggregated Revenue

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


	Three Months Ended March 31, 2022
	OEM		Aftermarket		Other		Total
	(Dollars in millions)
United States	$	102	$	51	$	—	$	153
Europe	406		38		7		451
Asia	266		10		6		282
Other International	9		6		—		15
	$	783	$	105	$	13	$	901

	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

Contract Balances

The following table summarizes our contract assets and liabilities balances:


	2022		2021
	(Dollars in millions)
Contract assets—January 1	$	63	$	61
Contract assets—March 31	60		65
Change in contract assets—(Decrease)/Increase	$	(3)	$	4
Contract liabilities—January 1	$	(5)	$	(2)
Contract liabilities—March 31	(9)		(1)
Change in contract liabilities—(Increase)/Decrease	$	(4)	$	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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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+ Details

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ 88	$ (105)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Reorganization items, net	0	19
Deferred income taxes	13	4
Depreciation	22	23
Amortization of deferred issuance costs	2	2
Interest payments, net of debt discount accretion	(6)	0
Foreign exchange (gain) loss	(4)	33
Stock compensation expense	2	2
Other	12	(6)
Changes in assets and liabilities:
Accounts, notes and other receivables	(61)	(2)
Inventories	(62)	(34)
Other assets	(42)	14
Accounts payable	116	74
Accrued liabilities	0	17
Other liabilities	(7)	(9)
Net cash provided by operating activities	73	32
Cash flows from investing activities:
Expenditures for property, plant and equipment	(29)	(18)
Other	0	1
Net cash used for investing activities	(29)	(17)
Cash flows from financing activities:
Payments of long-term debt	(2)	0
Payments of debtor-in-possession financing	0	(100)
Redemption of Series B Preferred stock	(186)	0
Payments for share repurchases	(2)	0
Debt financing costs	(6)	(1)
Net cash used for financing activities	(196)	(101)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	8	(30)
Net decrease in cash, cash equivalents and restricted cash	(144)	(116)
Cash, cash equivalents and restricted cash at beginning of the period	464	693
Cash, cash equivalents and restricted cash at end of the period	320	577
Supplemental cash flow disclosure:
Income taxes paid (net of refunds)	14	15
Interest paid	21	16
Reorganization items paid	$ 2	$ 145

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 19. Commitments and Contingencies

Chapter 11 Cases

On the Effective Date, the conditions to effectiveness of the Plan were satisfied or waived and the Company emerged from bankruptcy. Since the Effective Date, the reorganized Debtors have been administering and reconciling outstanding proofs of claim and proofs of interest filed against the Debtors. All of the Chapter 11 Cases other than the main lead Chapter 11 Case of the Company have been closed. The main Chapter 11 Case of the Company will remain open until all proofs of claim and proofs of interest are fully administered. Refer to Note 1, Background and Basis of Presentation, for additional information.

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 Securities Exchange Act of 1934 as amended (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.

The actions were assigned to Judge John P. Cronan. 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 (the “Consolidated D&O 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.

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

The Company agreed with the Gabelli Entities and their lead counsel to permit a class claim to be recognized in the bankruptcy court and to have securities claims against the Company to be litigated in the district court alongside the Consolidated D&O Action. The Gabelli Entities have agreed that any recoveries against Garrett Motion Inc. on account of securities claims litigated through the class claim are limited to available insurance policy proceeds. On July 2, 2021, the

bankruptcy court entered an order approving the joint request from the Company and the Gabelli Entities to handle the securities claims against Garrett Motion Inc. in this manner.

The Gabelli Entities were authorized, and on July 22, 2021 filed a second amended complaint to add claims against Garrett Motion Inc. On August 11, 2021, Garrett Motion Inc., Olivier Rabiller, Alessandro Gili, Peter Bracke, Sean Deason, Russell James, Carlos Cardoso, Maura Clark, Courtney Enghauser, Susan Main, Carsten Reinhardt, and Scott Tozier filed a motion to dismiss with respect to claims asserted against them. On the same day, Su Ping Lu, who is represented separately, filed a motion to dismiss with respect to the claims asserted against her. Lead plaintiffs’ opposition to the motions to dismiss was filed on October 26, 2021, and the defendant's reply briefs were filed on or before December 8, 2021. On March 31, 2022, the judge dismissed the complaints entirely - Su Ping Lu's motion to dismiss was granted with prejudice while the court granted the plaintiffs 30 days to file a third amended complaint against the Company and the other defendants.

Brazilian Tax Matter

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, 2022 was $34 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 $34 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. In August 2021, the $34 million claim was however suspended until Garrett Motion Brazil receives a final judicial decision. 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.

Warranties and Guarantees

In the normal course of business, we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale to the customer. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. Product warranties and product performance guarantees are included in Accrued Liabilities and Other Liabilities. The following table summarizes information concerning our recorded obligations for product warranties and product performance guarantees.


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Balance at December 31	$	32	$	14
Accruals for warranties/guarantees issued during the year	3		5
Settlement of warranty/guarantee claims	(3)		(4)
Amounts reclassified from Liabilities subject to compromise	—		17
Balance at March 31	$	32	$	32

Other Commitments and Contingencies

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 occurring 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.

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Accrued Liabilities, Current [Abstract]

Summary of Accrued Liabilities


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Customer pricing reserve	$	72	$	72
Compensation, benefit and other employee related	63		76
Repositioning	8		10
Product warranties and performance guarantees - short-term (Note 19)	21		21
Income and other taxes	29		25
Advanced discounts from suppliers, current	12		14
Customer advances and deferred income (1)	34		23
Accrued interest	8		8
Short-term lease liability (Note 12)	10		9
Other (primarily operating expenses) (2)	45		37
	$	302	$	295

(1)Customer advances and deferred income include $9 million and $5 million of contract liabilities as of March 31, 2022 and December 31, 2021, respectively. See Note 3, Revenue Recognition and Contracts with Customers.

(2)Includes $4 million and $3 million of environmental liabilities as of March 31, 2022 and December 31, 2021, respectively.

Summary of Expenses Related to the Repositioning Accruals


	Severance Costs		Exit Costs		Total
	(Dollars in millions)
Balance at December 31, 2021	$	10	$	—	$	10
Charges	1		—		1
Usage—cash	(3)		—		(3)
Balance at March 31, 2022	$	8	$	—	$	8


	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

Mandatorily Redeemable Series B Preferred Stock (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 18, 2022	Mar. 31, 2022	Mar. 31, 2021
Class Of Stock [Line Items]
Payments for redemption of Series B preferred stock		$ 186	$ 0
PSA and Transaction, Second Amended Plan 2021 \| Series B Preferred Stock
Class Of Stock [Line Items]
Series B preferred stock redeemed (in shares)	217,183,244
Payments for redemption of Series B preferred stock	$ 197
Preferred stock issued payable annually in 2024		18
Preferred stock issued payable annually in 2025		100
Preferred stock issued payable annually in 2026		100
Preferred stock issued payable annually in 2027		54
Preferred stock issued payable		272
Net present value of redemptions of shares		$ 204
Preferred stock, effective interest rate		7.71%

Long-term Debt and Credit Agreements - Schedule of Principal Outstanding And Carrying Amount of Long term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total debt payments	$ 1,208
Less: unamortized deferred financing costs	(35)
Less: current portion of long-term debt	(7)	$ (7)
Total long-term debt	$ 1,166	$ 1,181
Dollar Facility
Debt Instrument [Line Items]
Long term debt, interest rate	3.75%
Total debt payments	$ 711
Euro Facility
Debt Instrument [Line Items]
Long term debt, interest rate	3.50%
Total debt payments	$ 497

Background and Basis of Presentation

3 Months Ended

Mar. 31, 2022

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

Basis of Presentation

The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. The unaudited Consolidated Interim Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2021 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 14, 2022 (our “2021 Form 10-K”). The results of operations and cash flows for the three months ended March 31, 2022 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts.

We report our quarterly financial information using a calendar convention: the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday to minimize the potentially disruptive effects of quarterly closing on our business processes. 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, 2022. Our actual closing dates for the three months ended March 31, 2022 and 2021 were April 2, 2022 and April 3, 2021, respectively.

The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances, including considerations for the impact of the outbreak of the COVID-19 pandemic on the Company's business due to various global macroeconomic, operational and supply-chain risks as a result of COVID-19. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods.

Voluntary Filing Under Chapter 11

On September 20, 2020 (the “Petition Date”), the Company and certain of its subsidiaries (collectively, the “Debtors”) each filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Debtors’ chapter 11 cases (the “Chapter 11 Cases”) were jointly administered under the caption “In re: Garrett Motion Inc., 20-12212.” On April 20, 2021, the Debtors filed the Revised Amended Plan of Reorganization (the “Plan”). On April 26, 2021, the Bankruptcy Court entered an order among other things, confirming the Plan. On April 30, 2021 (the “Effective Date”), the conditions to the effectiveness of the Plan were satisfied or waived and the Company emerged from bankruptcy (“Emergence”).

Emergence from Chapter 11

Upon Emergence or shortly thereafter, amounts recorded as liabilities subject to compromise were either settled, or such amounts have been reinstated to current or non-current liabilities in the Consolidated Interim Balance Sheet, based upon management’s judgment as to the timing for settlement of such claims.

Reorganization items, net represent amounts incurred after the Petition Date as a direct result of the Chapter 11 Cases and are comprised of the following for the three months ended March 31, 2022 and March 31, 2021, respectively:


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)

Advisor fees	$	1	$	84
Bid termination and expense reimbursement	—		79




Debtor in Possession ("DIP") financing fees	—		1
Other	—		10
Total reorganization items, net	$	1	$	174

Income Taxes - Tax Expense (Benefit) and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Tax expense	$ 37	$ 24
Effective tax rate	29.60%	(29.60%)

- Definition

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

+ References + Details

Other Assets (Tables)

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Advanced discounts to customers, non-current	$	57	$	61
Operating right-of-use assets (Note 12)	50		51
Income tax receivable	27		27
Pension and other employee related	15		15
Designated cross-currency swaps	44		30
Designated and undesignated derivatives	31		7
Other	11		9
	$	235	$	200

Revenue Recognition and Contracts with Customers - Summary of Net Sales by Region and Channel (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Net sales	$ 901	$ 997
United States
Disaggregation Of Revenue [Line Items]
Net sales	153	138
Europe
Disaggregation Of Revenue [Line Items]
Net sales	451	528
Asia
Disaggregation Of Revenue [Line Items]
Net sales	282	319
Other International
Disaggregation Of Revenue [Line Items]
Net sales	15	12
OEM
Disaggregation Of Revenue [Line Items]
Net sales	783	889
OEM \| United States
Disaggregation Of Revenue [Line Items]
Net sales	102	100
OEM \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	406	481
OEM \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	266	302
OEM \| Other International
Disaggregation Of Revenue [Line Items]
Net sales	9	6
Aftermarket
Disaggregation Of Revenue [Line Items]
Net sales	105	91
Aftermarket \| United States
Disaggregation Of Revenue [Line Items]
Net sales	51	36
Aftermarket \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	38	39
Aftermarket \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	10	10
Aftermarket \| Other International
Disaggregation Of Revenue [Line Items]
Net sales	6	6
Other
Disaggregation Of Revenue [Line Items]
Net sales	13	17
Other \| United States
Disaggregation Of Revenue [Line Items]
Net sales	0	2
Other \| Europe
Disaggregation Of Revenue [Line Items]
Net sales	7	8
Other \| Asia
Disaggregation Of Revenue [Line Items]
Net sales	6	7
Other \| Other International
Disaggregation Of Revenue [Line Items]
Net sales	$ 0	$ 0

- 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.

+ References

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-Publisher FASB
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-Paragraph 1
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+ Details

Factoring and Notes Receivable (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Receivables [Abstract]
Sale of trade receivables	$ 143	$ 180
Factoring and notes receivables discount fees, notes	1	1
Accounts receivable sold but not yet collected	23	64
Proceeds from sale of bank notes	28	0
Factoring and notes receivables discount fees, receivables	1
Bank notes receivable sold but not yet collected	15	$ 0
Guaranteed bank notes pledged as collateral	$ 31		$ 5

Inventories-Net

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories-Net

Note 8. Inventories—Net


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Raw materials	$	192	$	162
Work in process	20		19
Finished products	112		92
	324		273
Less—Reserves	(23)		(29)
	$	301	$	244

Financial Instruments and Fair Value Measures - Additional Information (Details) € in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, aggregate gross notional amount	$ 2,553,000,000		$ 2,788,000,000
Interest rate swap
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, aggregate gross notional amount \| €		€ 830
Cross-currency interest rate swaps
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative, aggregate gross notional amount \| €		€ 606
Fair value of derivative assets, net	44,000,000
Changes in fair value of net investment hedges, net of tax	13,000,000
Ineffectiveness on net investment hedges	$ 0

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net sales (Note 3)	$ 901	$ 997
Cost of goods sold	726	801
Gross profit	175	196
Selling, general and administrative expenses	53	55
Other expense, net	1	1
Interest expense	23	21
Non-operating (income) expense	(28)	26
Reorganization items, net (Note 1)	1	174
Income (loss) before taxes	125	(81)
Tax expense (Note 5)	37	24
Net income (loss)	88	(105)
Less: preferred stock dividend (Note 17)	(38)	0
Net income (loss) available for distribution	$ 50	$ (105)
Earnings per share
Earnings (loss) per common share, basic (in USD per share)	$ 0.15	$ (1.38)
Earnings (loss) per common share, diluted (in USD per share)	$ 0.15	$ (1.38)
Weighted average common shares outstanding
Weighted average common shares outstanding, basic (in shares)	64,538,527	75,904,898
Weighted average common shares outstanding, diluted (in shares)	64,732,090	75,904,898

Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Note 17. Earnings Per Share

Earnings per share ("EPS") is calculated using the two-class method pursuant to the issuance of our Series A Preferred Stock on the Effective Date. Our Series A Preferred Stock is considered a participating security because holders of the Series A Preferred Stock will also be entitled to such dividends paid to holders of Common Stock to the same extent on an as-converted basis. The two-class method requires an allocation of earnings to all securities that participate in dividends with common shares, such as our Series A Preferred Stock, to the extent that each security may share in the entity’s earnings. Basic earnings per share are then calculated by dividing undistributed earnings allocated to common stock by the weighted average number of common shares outstanding for the period. The Series A Preferred Stock is not included in the computation of basic earnings per share in periods in which we have a net loss, as the Series A Preferred Stock is not contractually obligated to share in our net losses.

Diluted earnings per share for the three months ended March 31, 2022 is calculated using the more dilutive of the two-class or if-converted methods. The two-class method uses net income available to common shareholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income and assumes conversion of all potential shares including the participating securities. Diluted earnings per share for the three months ended March 31, 2021 is computed based upon the weighted average number of common shares outstanding and all dilutive potential common shares outstanding and all potentially issuable performance stock units at the end of the period (if any) based on the number of shares issuable if it were the end of the vesting period using the treasury stock method and the average market price of our Common Stock for the year.

The details of the EPS calculations for the three months ended March 31, 2022 and 2021 are as follows:


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions except per share)
Basic earnings per share:
Net income (loss)	$	88	$	(105)
Less: preferred stock dividend	(38)		—
Net income available for distribution	50		(105)
Less: earnings allocated to participating securities	(40)		—
Net income (loss) available to common shareholders	$	10	$	(105)
Weighted average common shares outstanding- Basic	64,538,527		75,904,898
EPS – Basic	$	0.15	$	(1.38)

Diluted earnings per share:
Method used:	Two-class
Weighted average common shares outstanding - Basic	64,538,527		75,904,898
Dilutive effect of unvested RSUs and other contingently issuable shares	193,563		—

Weighted average common shares outstanding – Diluted	64,732,090		75,904,898
EPS – Diluted	$	0.15	$	(1.38)

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. There were no options outstanding as of or during the three months ended March 31, 2022. For the three months ended March 31, 2021, the weighted average number of stock options excluded from the computation was 399,489.

Background and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Reorganization Items, Net


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)

Advisor fees	$	1	$	84
Bid termination and expense reimbursement	—		79




Debtor in Possession ("DIP") financing fees	—		1
Other	—		10
Total reorganization items, net	$	1	$	174

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 88	$ (105)
Foreign exchange translation adjustment	2	110
Changes in fair value of effective cash flow hedges, net of tax (Note 15)	8	1
Changes in fair value of net investment hedges, net of tax (Note 15)	13	0
Total other comprehensive income, net of tax	23	111
Comprehensive income	$ 111	$ 6

- Definition

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

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- Definition

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

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+ Details

Income Taxes - Additional Information (Details)	3 Months Ended
Income Taxes - Additional Information (Details)	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	29.60%	(29.60%)
U.S. federal statutory income tax rate	21.00%

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions		1 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Brazilian Tax Authorities
Loss Contingencies [Line Items]
Estimated amount of contingency including penalties and interest	$ 34
Right to offset federal tax		$ 34
Securities Litigation
Loss Contingencies [Line Items]
Period to file a third complaint	30 days

Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Carrying Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Term Loan Facilities	$ 1,173	$ 1,188
Level 2 \| Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Term Loan Facilities	$ 1,198	$ 1,227

Accrued Liabilities - Summary of Expenses Related to the Repositioning Accruals (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 10	$ 7
Charges	1	8
Usage—cash	(3)	(2)
Balance at end of period	8	13
Severance Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	10	7
Charges	1	8
Usage—cash	(3)	(2)
Balance at end of period	8	13
Exit Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0	0
Charges	0	0
Usage—cash	0	0
Balance at end of period	$ 0	$ 0

Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease cost	$ 4	$ 4

CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 315	$ 423
Restricted cash	5	41
Accounts, notes and other receivables – net (Note 6)	786	747
Inventories – net (Note 8)	301	244
Other current assets	73	56
Total current assets	1,480	1,511
Investments and long-term receivables	33	28
Property, plant and equipment – net	469	485
Goodwill	193	193
Deferred income taxes	278	289
Other assets (Note 9)	235	200
Total assets	2,688	2,706
Current liabilities:
Accounts payable	1,071	1,006
Current maturities of long-term debt (Note 13)	7	7
Accrued liabilities (Note 10)	302	295
Total current liabilities	1,380	1,508
Long-term debt (Note 13)	1,166	1,181
Deferred income taxes	24	21
Other liabilities (Note 11)	271	269
Total liabilities	3,045	3,174
COMMITMENTS AND CONTINGENCIES (Note 19)
EQUITY (DEFICIT)
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 64,506,104 and 64,570,950 issued and 64,506,104 and 64,570,950 outstanding as of March 31, 2022 and December 31, 2021, respectively	0	0
Additional paid–in capital	1,327	1,326
Retained deficit	(1,703)	(1,790)
Accumulated other comprehensive income (loss) (Note 16)	19	(4)
Total deficit	(357)	(468)
Total liabilities and deficit	2,688	2,706
Series A Preferred Stock
EQUITY (DEFICIT)
Series A Preferred Stock, par value $0.001; 245,715,735 and 245,921,617 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	$ 0	$ 0
Preferred stock, shares issued (in shares)	245,715,735	245,921,617
Preferred stock, shares outstanding (in shares)	245,715,735	245,921,617
Series B Preferred Stock
Current liabilities:
Mandatorily redeemable Series B Preferred Stock (Note 14)	$ 0	$ 200
Mandatorily redeemable Series B Preferred Stock – long-term (Note 14)	$ 204	$ 195

Long-term Debt and Credit Agreements - Additional Information (Details) € in Millions		3 Months Ended
	Apr. 26, 2021 USD ($)	Mar. 31, 2022 USD ($)	Mar. 22, 2022 USD ($)	Jan. 11, 2022 USD ($)	Apr. 26, 2021 EUR (€)
Debt Instrument [Line Items]
Debt instrument, interest payment period if applicable period exceeds three months		3 months
Eurodollar
Debt Instrument [Line Items]
Debt instrument, interest rate at option		3.50%
Minimum \| ABR
Debt Instrument [Line Items]
Debt instrument, interest rate at option		0.00%
Credit Agreement
Debt Instrument [Line Items]
Percentage of excess cash flow proceeds starting December 31, 2022		50.00%
Percentage of excess cash flow proceeds thereafter year 1		25.00%
Percentage of excess cash flow proceeds thereafter year 2		0.00%
Debt instrument face amount		$ 30,000,000
Aggregate commitment percentage		35.00%
Credit Agreement \| ABR
Debt Instrument [Line Items]
Debt instrument, interest rate at option		2.25%
Credit Agreement \| LIBOR
Debt Instrument [Line Items]
Debt instrument, interest rate at option		3.25%
Credit Agreement \| Maximum
Debt Instrument [Line Items]
Consolidated total leverage ratio		4.7
Credit Agreement \| Minimum \| ABR
Debt Instrument [Line Items]
Debt instrument, interest rate at option		1.50%
Credit Agreement \| Minimum \| LIBOR
Debt Instrument [Line Items]
Debt instrument, interest rate at option		0.50%
Credit Agreement \| Minimum \| Eurodollar
Debt Instrument [Line Items]
Debt instrument, interest rate at option		0.00%
Term Loan Facility \| Credit Agreement, USD Tranche \| Secured Debt
Debt Instrument [Line Items]
Line of credit, term	7 years
Line of credit, maximum borrowing capacity	$ 715,000,000
Term Loan Facility \| Credit Agreement, EUR Tranche \| Secured Debt
Debt Instrument [Line Items]
Line of credit, term	7 years
Line of credit, maximum borrowing capacity \| €					€ 450
Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Unused commitment fee percentage		0.50%
Revolving Credit Facility \| Minimum
Debt Instrument [Line Items]
Debt instrument, interest rate at option		1.00%
Unused commitment fee percentage		0.25%
Revolving Credit Facility \| Letter of Credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 125,000,000
Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Line of credit		$ 0
Line of credit, available borrowing capacity		473,000,000
Revolving Credit Facility \| Credit Agreement \| Secured Debt
Debt Instrument [Line Items]
Line of credit, term	5 years
Line of credit, maximum borrowing capacity	$ 300,000,000
Revolving Credit Facility \| Credit Agreement, first amendment \| Secured Debt
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity				$ 300,000,000
Revolving Credit Facility \| Credit Agreement, second amendment \| Secured Debt
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 475,000,000
Letter of Credit
Debt Instrument [Line Items]
Line of credit		10,000,000
Line of credit, available borrowing capacity		25,000,000
Line of credit, current borrowing capacity		35,000,000
Undrawn Letters of Credit \| Credit Agreement
Debt Instrument [Line Items]
Line of credit		$ 2,000,000

Mandatorily Redeemable Series B Preferred Stock	3 Months Ended
Mandatorily Redeemable Series B Preferred Stock	Mar. 31, 2022
Equity [Abstract]
Mandatorily Redeemable Series B Preferred Stock	Note 14. Mandatorily Redeemable Series B Preferred Stock On February 18, 2022, Garrett completed a second planned partial early redemption of its Series B Preferred Stock. Under this partial early redemption, the Company redeemed 217,183,244 shares of its Series B Preferred Stock for an aggregate price of $197 million. As of March 31, 2022, the remaining scheduled redemptions were $18 million, $100 million, $100 million and $54 million for April 30, 2024, 2025, 2026 and 2027, respectively, totaling $272 million. The net present value of the remaining scheduled redemptions as of March 31, 2022 is $204 million which reflects an effective interest rate of 7.71% and is classified as a long-term liability on the Consolidated Interim Balance Sheet.

Research, Development & Engineering (Details) - Cost of goods sold - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	$ 42	$ 39
Research and development costs
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	36	33
Engineering-related expenses
Research And Development Arrangement Contract To Perform For Others [Line Items]
Research, development & engineering expense, total	$ 6	$ 6

Pension Benefits - Additional Information (Details) - Pension Benefits - Non-U.S. Plan $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Expected pension contribution in the next fiscal year	$ 7
Pension contribution	$ 1

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

The details of the EPS calculations for the three months ended March 31, 2022 and 2021 are as follows:


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions except per share)
Basic earnings per share:
Net income (loss)	$	88	$	(105)
Less: preferred stock dividend	(38)		—
Net income available for distribution	50		(105)
Less: earnings allocated to participating securities	(40)		—
Net income (loss) available to common shareholders	$	10	$	(105)
Weighted average common shares outstanding- Basic	64,538,527		75,904,898
EPS – Basic	$	0.15	$	(1.38)

Diluted earnings per share:
Method used:	Two-class
Weighted average common shares outstanding - Basic	64,538,527		75,904,898
Dilutive effect of unvested RSUs and other contingently issuable shares	193,563		—

Weighted average common shares outstanding – Diluted	64,732,090		75,904,898
EPS – Diluted	$	0.15	$	(1.38)

Research, Development & Engineering

3 Months Ended

Mar. 31, 2022

Research and Development [Abstract]

Research, Development & Engineering

Note 4. Research, Development & Engineering

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


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Research and development costs	$	36	$	33
Engineering-related expenses	6		6
	$	42	$	39

Inventories-Net (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 192	$ 162
Work in process	20	19
Finished products	112	92
Inventories, gross	324	273
Less—Reserves	(23)	(29)
Inventories, net	$ 301	$ 244

Other Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Income taxes	$ 114	$ 106
Pension and other employee related	$ 58	$ 61
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total other liabilities	Total other liabilities
Long-term lease liability (Note 12)	$ 42	$ 42
Advanced discounts from suppliers	13	16
Product warranties and performance guarantees – long-term (Note 19)	11	11
Environmental remediation – long term	15	15
Other	18	18
Total other liabilities	$ 271	$ 269

Accrued Liabilities

3 Months Ended

Mar. 31, 2022

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

Note 10. Accrued Liabilities


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Customer pricing reserve	$	72	$	72
Compensation, benefit and other employee related	63		76
Repositioning	8		10
Product warranties and performance guarantees - short-term (Note 19)	21		21
Income and other taxes	29		25
Advanced discounts from suppliers, current	12		14
Customer advances and deferred income (1)	34		23
Accrued interest	8		8
Short-term lease liability (Note 12)	10		9
Other (primarily operating expenses) (2)	45		37
	$	302	$	295

(2)Includes $4 million and $3 million of environmental liabilities as of March 31, 2022 and December 31, 2021, respectively.

The Company accrued repositioning costs related to projects to optimize its product costs and right-size our 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, 2021	$	10	$	—	$	10
Charges	1		—		1
Usage—cash	(3)		—		(3)
Balance at March 31, 2022	$	8	$	—	$	8


	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

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2022
Earnings Per Share [Abstract]
Options outstanding (in shares)		0
Antidilutive shares excluded from computation of diluted EPS (in shares)	399,489

Background and Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advisor fees	$ 1	$ 84
Bid termination and expense reimbursement	0	79
Debtor in Possession ("DIP") financing fees	0	1
Other	0	10
Total reorganization items, net	$ 1	$ 174

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Tax Expense (Benefit) and Effective Tax Rate


	Three Months Ended March 31,
	March 31, 2022			2021
	(Dollars in millions)
Tax expense	$	37		$	24
Effective tax rate	29.6		%	(29.6)		%

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Note 18. Related Party Transactions We lease certain facilities and receive property maintenance services from Honeywell, which is the owner of our Series B Preferred Stock and appoints a director to our board of directors (the “Board”). We also contract with Honeywell for the occasional purchase of certain goods and services. Lease and service agreements were made at commercial terms prevalent in the market at the time they were executed. Our payments under the agreements with Honeywell were $2 million for the three months ended March 31, 2022, and were included in Cost of goods sold and Selling, general and administrative expenses in our Consolidated Interim Statements of Operations. For the three months ended March 31, 2021, Honeywell was not considered a related party. Related to the agreements with Honeywell, our Consolidated Interim Balance Sheet at March 31, 2022 and our Consolidated Balance Sheet at December 31, 2021, includes liabilities of $11 million and $15 million, respectively. Liability balances are primarily related to lease contracts of $8 million and $12 million as of March 31, 2022 and December 31, 2021, respectively.

Pension Benefits (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [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
	2022		2021		2022		2021
	(Dollars in millions)
Service cost	$	—	$	—	$	2	$	3
Interest cost	1		1		—		—
Expected return on plan assets	(2)		(3)		(2)		(2)

	$	(1)	$	(2)	$	—	$	1

Revenue Recognition and Contracts with Customers - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Change in Contract with Customer, Asset [Abstract]
Contract assets—January 1	$ 63	$ 61
Contract assets—March 31	60	65
Change in contract assets—(Decrease)/Increase	(3)	4
Change in Contract with Customer, Liability [Abstract]
Contract liabilities—January 1	(5)	(2)
Contract liabilities—March 31	(9)	(1)
Change in contract liabilities—(Increase)/Decrease	$ (4)	$ 1

Accounts, Notes and Other Receivables-Net - Schedule of Accounts, Notes and Other Receivables-Net (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Trade receivables	$ 606	$ 553
Notes receivable	110	121
Other receivables	76	78
Accounts, notes and other receivables, gross	792	752
Less—Allowance for expected credit losses	(6)	(5)
Accounts, notes and other receivables, net	$ 786	$ 747

Revenue Recognition and Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022
	OEM		Aftermarket		Other		Total
	(Dollars in millions)
United States	$	102	$	51	$	—	$	153
Europe	406		38		7		451
Asia	266		10		6		282
Other International	9		6		—		15
	$	783	$	105	$	13	$	901

	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

Summary of Contract Assets and Liabilities

The following table summarizes our contract assets and liabilities balances:


	2022		2021
	(Dollars in millions)
Contract assets—January 1	$	63	$	61
Contract assets—March 31	60		65
Change in contract assets—(Decrease)/Increase	$	(3)	$	4
Contract liabilities—January 1	$	(5)	$	(2)
Contract liabilities—March 31	(9)		(1)
Change in contract liabilities—(Increase)/Decrease	$	(4)	$	1

Financial Instruments and Fair Value Measures (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022 and December 31, 2021:


					Fair Value
	Notional Amounts				Assets					Liabilities
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021			March 31, 2022		December 31, 2021
Designated instruments:
Designated forward currency exchange contracts	$	569	$	382	$	20	$	9	(a)	$	3	$	1	(c)
Designated cross-currency swap	715		715		44		30		(b)	—		—
Total designated instruments	1,284		1,097		64		39			3		1
Undesignated instruments:
Undesignated interest rate swap	917		940		31		7		(a)	—		—
Undesignated forward currency exchange contracts	352		751		3		2		(a)	3		4		(c)
Total undesignated instruments	1,269		1,691		34		9			3		4
Total designated and undesignated instruments	$	2,553	$	2,788	$	98	$	48		$	6	$	5

(a) Recorded within Other current assets

(b) Recorded within Other assets

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, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(Dollars in millions)
Term Loan Facilities	$	1,173	$	1,198	$	1,188	$	1,227

Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) € in Millions, $ in Millions	Mar. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	$ 2,553		$ 2,788
Cross-currency interest rate swaps
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts \| €		€ 606
Interest rate swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts \| €		€ 830
Fair value measurements recurring \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	2,553		2,788
Fair Value, Assets	98		48
Fair Value, Liabilities	6		5
Fair value measurements recurring \| Level 2 \| Designated as hedging
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	1,284		1,097
Fair Value, Assets	64		39
Fair Value, Liabilities	3		1
Fair value measurements recurring \| Level 2 \| Designated as hedging \| Forward currency exchange contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	569		382
Fair Value, Assets	20		9
Fair Value, Liabilities	3		1
Fair value measurements recurring \| Level 2 \| Designated as hedging \| Cross-currency interest rate swaps
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	715		715
Fair Value, Assets	44		30
Fair Value, Liabilities	0		0
Fair value measurements recurring \| Level 2 \| Undesignated as Hedging
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	1,269		1,691
Fair Value, Assets	34		9
Fair Value, Liabilities	3		4
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	352		751
Fair Value, Assets	3		2
Fair Value, Liabilities	3		4
Fair value measurements recurring \| Level 2 \| Undesignated as Hedging \| Interest rate swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Notional Amounts	917		940
Fair Value, Assets	31		7
Fair Value, Liabilities	$ 0		$ 0

Pension Benefits - Summary of Net Periodic Benefit Cost (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0
Interest cost	1	1
Expected return on plan assets	(2)	(3)
Net periodic (income) benefit costs	(1)	(2)
Non-U.S. Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	3
Interest cost	0	0
Expected return on plan assets	(2)	(2)
Net periodic (income) benefit costs	$ 0	$ 1

CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares, issued (in shares)	64,506,104	64,570,950
Common stock, shares, outstanding (in shares)	64,506,104	64,570,950
Series A Preferred Stock
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock, shares issued (in shares)	245,715,735	245,921,617
Preferred stock, shares outstanding (in shares)	245,715,735	245,921,617

Other Assets

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Note 9. Other Assets


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Advanced discounts to customers, non-current	$	57	$	61
Operating right-of-use assets (Note 12)	50		51
Income tax receivable	27		27
Pension and other employee related	15		15
Designated cross-currency swaps	44		30
Designated and undesignated derivatives	31		7
Other	11		9
	$	235	$	200

Pension Benefits

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Pension Benefits

Note 20. Pension Benefits

We sponsor several funded U.S. and non-U.S. defined benefit pension plans. Significant plans outside the U.S. are in Switzerland and Ireland. Other pension plans outside 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 2022. 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 2022, of which $1 million has been contributed as of March 31, 2022.

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
	2022		2021		2022		2021
	(Dollars in millions)
Service cost	$	—	$	—	$	2	$	3
Interest cost	1		1		—		—
Expected return on plan assets	(2)		(3)		(2)		(2)

	$	(1)	$	(2)	$	—	$	1

For both our U.S. and non-U.S. defined benefit pension plans, we estimate the service and interest cost components of net periodic 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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+ Details

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Summary Information Concerning our Recorded Obligations for Product Warranties and Product Performance Guarantees

The following table summarizes information concerning our recorded obligations for product warranties and product performance guarantees.


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Balance at December 31	$	32	$	14
Accruals for warranties/guarantees issued during the year	3		5
Settlement of warranty/guarantee claims	(3)		(4)
Amounts reclassified from Liabilities subject to compromise	—		17
Balance at March 31	$	32	$	32

Long-term Debt and Credit Agreements

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Long-term Debt and Credit Agreements

Note 13. Long-term Debt and Credit Agreements

The principal outstanding and carrying amounts of our long-term debt as of March 31, 2022 are as follows:


	Due	Interest Rate		March 31, 2022
Dollar Facility	4/30/2028	3.75	%	$	711
Euro Facility	4/30/2028	3.50	%	497
Total principal outstanding				1,208
Less: unamortized deferred financing costs				(35)
Less: current portion of long-term debt				(7)
Total long-term debt				$	1,166

Credit Facilities

On the Effective Date, in accordance with the Plan, the Company entered into a credit agreement (as amended from time to time, the "Credit Agreement") providing for senior secured financing, consisting of a seven-year secured first-lien U.S. Dollar term loan facility initially in the amount of $715 million (the “Dollar Term Facility”), a seven-year secured first-lien Euro term loan facility initially in the amount of €450 million (the “Euro Term Facility,” and together with the Dollar Facility, the “Term Loan Facilities”); and a five-year senior secured first-lien revolving credit facility initially in the amount of $300 million providing for multi-currency revolving loans, (the “Revolving Facility,” and together with the Term Loan Facilities, the “Credit Facilities”). On January 11, 2022 and March 22, 2022, the Company amended the Credit Agreement, increasing the maximum amount of borrowings available under the Revolving Facility from $300 million to approximately $475 million. The maturity date of the Revolving Facility remains unchanged at April 30, 2026, with certain extension rights at the discretion of each lender.

Under the first amendment, LIBOR was replaced as an available rate at which borrowings under the Revolving Facility could accrue with, for loans borrowed in U.S. Dollars, the daily overnight secured financing rate (“SOFR”) published by the Federal Reserve Bank of New York and for loans borrowed in Australian Dollars, the average bid reference rate administered by ASX Benchmarks Pty Limited. The Term Loan Facilities under the Credit Agreement continue to be able to accrue interest under the London Inter-bank Offered Rate (“LIBOR”), but will switch to an alternative benchmark rate upon the cessation of LIBOR after June 30, 2023. The Euro Facilities under the Credit Agreement continue to accrue interest under the Euro Interbank Offered Rate (“EURIBOR”).

The second amendment also removed the requirement that payments made in cash for the benefit of holders of the Series A Preferred Stock on or before December 31, 2022 be made on a ratable basis to the holders of the Common Stock, and made additional clarifying amendments to certain provisions.

The amendments to our Credit Agreement as described above were accounted under ASC 470-50, Debt Modifications and Extinguishments as a debt modification that did not result in an extinguishment or have a material impact on our Consolidated Interim Financial Statements.

Under the Revolving Facility, the Company may use up to $125 million for the issuance of letters of credit to the Swiss Borrower or any of its subsidiaries. Letters of credit are available for issuance under the Credit Agreement on terms and conditions customary for financings of this kind, which issuances reduce availability under the Revolving Facility. As of March 31, 2022 the Company had no loans outstanding under the Revolving Facility, $2 million of outstanding letters of credit, and available borrowing capacity of approximately $473 million.

Separate from the Revolving Facility, the Company has a $35 million bilateral letter of credit facility, which also matures on April 30, 2026. As of March 31, 2022, the Company had $10 million utilized and $25 million of remaining available capacity under such facility.

Interest Rate and Fees

The Dollar Term Facility is subject to an interest rate, at our option, of either (a) an alternate base rate (“ABR”) (which shall not be less than 1.50%) or (b) an adjusted LIBOR rate (“LIBOR”) (which shall not be less than 0.50%), in each case, plus an applicable margin equal to 3.25% in the case of LIBOR loans and 2.25% in the case of ABR loans. The Euro Term Facility is subject to an interest rate equal to an adjusted EURIBOR rate (“EURIBOR”) (which shall not be less than zero) plus an applicable margin equal to 3.50%. Interest payments with respect to the Dollar and Euro Term Facilities

are required either on a quarterly basis (for ABR loans) or at the end of each interest period (for LIBOR and EURIBOR loans) or, if the duration of the applicable interest period exceeds three months, then every three months.

The Revolving Facility is subject to an interest rate comprised of an applicable benchmark rate as provided under the Credit Agreement (which shall not be less than 1.00% if such benchmark is the ABR rate and not less than 0.00% in the case of other applicable benchmark rates) that is selected based on the currency in which borrowings are outstanding thereunder, in each case, plus an applicable margin, that may vary based on our leverage ratio.

In addition to paying interest on outstanding borrowings under the Revolving Facility, we are also required to pay a quarterly commitment fee based on the average daily unused portion of the Revolving Facility during such quarter, which is determined by our leverage ratio and ranges from 0.25% to 0.50% per annum.

Prepayments

The Credit Agreement also contains certain mandatory prepayment provisions in the event that we incur certain types of indebtedness, receive net cash proceeds from certain non-ordinary course asset sales or other dispositions of property or, starting with the fiscal year ending on December 31, 2022, have excess cash flow (calculated on an annual basis with the required prepayment equal to 50%, 25% or 0% of such excess cash flow, subject to compliance with certain leverage ratios), in each case subject to terms and conditions customary for financings of this kind.

Certain Covenants

The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The Revolving Facility also contains a financial covenant requiring the maintenance of a consolidated total leverage ratio of not greater than 4.7 times as of the end of each fiscal quarter if, on the last day of any such fiscal quarter, the aggregate amount of loans and letters of credit (excluding backstopped or cash collateralized letters of credit and other letters of credit with an aggregate face amount not exceeding $30 million) outstanding under the Revolving Facility exceeds 35% of the aggregate commitments in effect thereunder on such date.

As of March 31, 2022, the Company was in compliance with all covenants.

The Credit Agreement also contained certain restrictions on the Company’s ability to pay cash dividends on or to redeem or otherwise acquire for cash the Series A Preferred Stock unless a ratable payment (on an as-converted basis) was made to holders of our common equity and such payments would otherwise be permitted under the terms of the Credit Agreement. These restrictions were removed as part of the credit amendments noted above.

The Company's ability to pay cash dividends on shares of Common Stock is also subject to conditions set forth in the Certificate of Designations for the Series A Cumulative Convertible Preferred Stock (the "Series A Certificate of Designations") as described in Note 21, Equity, of the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2021 included in our 2021 Form 10-K. On March 3, 2022, the terms of the Series A Certificate of Designations were further amended to (i) expand the scope of permitted Distributions on Dividend Junior Stock (each as defined in the Series A Certificate of Designations) to include purchases by the Company of shares of Dividend Junior Stock in individually negotiated transactions, (ii) remove the requirement that dividends or Distributions on Dividend Junior Stock must occur on or prior to December 31, 2022, and (iii) expressly permit the purchase, redemption or other acquisition for cash by the Company of shares of Dividend Junior Stock without requiring ratable participation by holders of Series A Preferred Stock.

Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Income taxes	$	114	$	106

Pension and other employee related	58		61
Long-term lease liability (Note 12)	42		42
Advanced discounts from suppliers	13		16
Product warranties and performance guarantees – long-term (Note 19)	11		11
Environmental remediation – long term	15		15
Other	18		18
	$	271	$	269

Related Party Transactions (Details) - Honeywell International Inc - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Related party, costs	$ 2
Related party, liabilities	11	$ 15
Related party, lease contracts	$ 8	$ 12

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties.

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+ Details

- Definition

Direct costs arising from transactions with related parties who are not affiliates or joint Ventures. These costs are categorized as cost of goods sold.

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+ Details

Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 5. Income Taxes


	Three Months Ended March 31,
	March 31, 2022			2021
	(Dollars in millions)
Tax expense	$	37		$	24
Effective tax rate	29.6		%	(29.6)		%

The effective tax rates for the three months ended March 31, 2022 and 2021 were 29.6% and (29.6)%, respectively.

The effective tax rate for the three months ended March 31, 2022 was higher than the U.S. federal statutory rate of 21% primarily because of withholding taxes and tax reserves, partially offset by lower taxes on non-U.S. earnings. The negative effective tax rate for three months ended March 31, 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, 2022 compared to the prior period is primarily related to the decrease of nondeductible bankruptcy costs, partially offset by true ups to prior year tax reserves.

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

- 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.

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+ Details

Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic earnings per share:
Net income (loss)	$ 88	$ (105)
Less: preferred stock dividend	(38)	0
Net income (loss) available for distribution	50	(105)
Less: earnings allocated to participating securities	(40)	0
Net income (loss) available to common shareholders	$ 10	$ (105)
Weighted average common shares outstanding - Basic (in shares)	64,538,527	75,904,898
EPS – Basic (in USD per share)	$ 0.15	$ (1.38)
Diluted earnings per share:
Weighted average common shares outstanding - Basic (in shares)	64,538,527	75,904,898
Dilutive effect of unvested RSUs and other contingently issuable shares (in shares)	193,563	0
Weighted average common shares outstanding - Diluted (in shares)	64,732,090	75,904,898
EPS – Diluted (in USD per share)	$ 0.15	$ (1.38)

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Millions	Mar. 31, 2022 USD ($)
Leases [Abstract]
2022	$ 9
2023	10
2024	8
2025	7
2026	6
Thereafter	26
Total lease payments	66
Less imputed interest	(14)
Operating lease, liabilities	$ 52

Other Assets (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Advanced discounts to customers, non-current	$ 57	$ 61
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Total other assets	Total other assets
Operating right-of-use assets (Note 12)	$ 50	$ 51
Income tax receivable	27	27
Pension and other employee related	15	15
Designated cross-currency swaps	44	30
Designated and undesignated derivatives	31	7
Other	11	9
Total other assets	$ 235	$ 200

Long-term Debt and Credit Agreements (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Principal Outstanding And Carrying Amount of Long term Debt

The principal outstanding and carrying amounts of our long-term debt as of March 31, 2022 are as follows:


	Due	Interest Rate		March 31, 2022
Dollar Facility	4/30/2028	3.75	%	$	711
Euro Facility	4/30/2028	3.50	%	497
Total principal outstanding				1,208
Less: unamortized deferred financing costs				(35)
Less: current portion of long-term debt				(7)
Total long-term debt				$	1,166

- 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

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 16. Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated Other Comprehensive Income (Loss) by component are set forth below:


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


	Foreign Exchange Translation Adjustment		Changes in Fair Value of Effective Cash Flow Hedges		Changes in Fair Value of Net Investment Hedges		Pension Adjustments		Total Accumulated Other Comprehensive Income (Loss)
	(Dollars in millions)
Balance at December 31, 2021	$	(43)	$	7	$	41	$	(9)	$	(4)
Other comprehensive income before reclassifications	2		13		13		—		28
Amounts reclassified from accumulated other comprehensive income	—		(5)		—		—		(5)
Net current period other comprehensive income	2		8		13		—		23
Balance at March 31, 2022	$	(41)	$	15	$	54	$	(9)	$	19

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Note 12. Leases

We have operating leases that primarily consist of real estate, machinery and equipment. Our leases have remaining lease terms of up to 16 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,
	2022		2021
	(Dollars in millions)
Operating lease cost	$	4	$	4

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


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3	$	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1		1

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


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Other assets	$	50	$	51
Accrued liabilities	10		9
Other liabilities	42		42


	March 31, 2022		December 31, 2021
Weighted-average remaining lease term (in years)	8.98		8.88
Weighted-average discount rate	5.57	%	5.65	%

Maturities of operating lease liabilities as of March 31, 2022 were as follows:


	(Dollars in millions)
2022	$	9
2023	10
2024	8
2025	7
2026	6
Thereafter	26
Total lease payments	66
Less imputed interest	(14)
	$	52

Factoring and Notes Receivable	3 Months Ended
Factoring and Notes Receivable	Mar. 31, 2022
Receivables [Abstract]
Factoring and Notes Receivable	Note 7. Factoring and Notes Receivable The Company entered into arrangements with financial institutions to sell eligible trade receivables. During the three months ended March 31, 2022 and 2021, the Company sold $143 million and $180 million of eligible receivables, respectively, without recourse, and accounted for these arrangements as true sales. Expense of less than $1 million was recognized within Other expense, net for both the three months ended March 31, 2022 and 2021. As of March 31, 2022 and 2021, the amount of accounts receivable sold but not yet collected by the bank from the customer was $23 million and $64 million, respectively. The Company also receives guaranteed bank notes without recourse, in settlement of accounts receivables, primarily in the Asia Pacific region. The Company can hold the bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. During the three months ended March 31, 2022, the Company sold $28 million of bank notes without recourse and accounted for these as true sales. No bank notes were sold during the three months ended March 31, 2021. Expense of less than $1 million was recognized within Other expense, net for the three months ended March 31, 2022. As of March 31, 2022, the amount of bank notes receivable sold but not yet collected by the bank from the customer was $15 million. As of March 31, 2021, there were no bank notes receivable sold which had not yet been collected by the bank from the customer. As of March 31, 2022 and December 31, 2021, the Company has pledged as collateral $31 million and $5 million of guaranteed bank notes, respectively, which have not been sold in order to be able to issue bank notes as payment to certain suppliers. Such pledged amounts are included as Notes receivable in our Consolidated Interim Balance Sheet.

Accounts, Notes and Other Receivables-Net

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Accounts, Notes and Other Receivables-Net

Note 6. Accounts, Notes and Other Receivables—Net


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Trade receivables	$	606	$	553
Notes receivable	110		$	121
Other receivables	76		$	78
	792		752
Less—Allowance for expected credit losses	(6)		(5)
	$	786	$	747

Trade receivables include $60 million and $63 million of unbilled customer contract asset balances as of March 31, 2022 and December 31, 2021, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. See Note 3, Revenue Recognition and Contracts with Customers.

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

CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT) (UNAUDITED) - USD ($) shares in Millions, $ in Millions	Total	Series A Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Deficit	Accumulated Other Comprehensive (Loss)/Income
Beginning balance (in shares) at Dec. 31, 2020		0	76
Beginning balance at Dec. 31, 2020	$ (2,308)	$ 0	$ 0	$ 28	$ (2,207)	$ (129)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(105)				(105)
Other comprehensive income, net of tax	111					111
Stock-based compensation	2			2
Ending balance (in shares) at Mar. 31, 2021		0	76
Ending balance at Mar. 31, 2021	(2,300)	$ 0	$ 0	30	(2,312)	(18)
Beginning balance (in shares) at Dec. 31, 2021		246	64
Beginning balance at Dec. 31, 2021	(468)	$ 0	$ 0	1,326	(1,790)	(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	88				88
Share repurchases	(2)			(1)	(1)
Other comprehensive income, net of tax	23					23
Stock-based compensation	2			2
Ending balance (in shares) at Mar. 31, 2022		246	64
Ending balance at Mar. 31, 2022	$ (357)	$ 0	$ 0	$ 1,327	$ (1,703)	$ 19

- 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

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Financial Instruments and Fair Value Measures

3 Months Ended

Mar. 31, 2022

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 19, Financial Instruments and Fair Value Measures, to the Consolidated Financial Statements for the year ended December 31, 2021 included in our 2021 Form 10-K. As of March 31, 2022 and December 31, 2021, we had contracts with aggregate gross notional amounts of $2,553 million and $2,788 million, respectively, to hedge interest rates and 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.

Fair Value of Financial Instruments

The FASB’s accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). 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, 2022 and December 31, 2021:


					Fair Value
	Notional Amounts				Assets					Liabilities
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021			March 31, 2022		December 31, 2021
Designated instruments:
Designated forward currency exchange contracts	$	569	$	382	$	20	$	9	(a)	$	3	$	1	(c)
Designated cross-currency swap	715		715		44		30		(b)	—		—
Total designated instruments	1,284		1,097		64		39			3		1
Undesignated instruments:
Undesignated interest rate swap	917		940		31		7		(a)	—		—
Undesignated forward currency exchange contracts	352		751		3		2		(a)	3		4		(c)
Total undesignated instruments	1,269		1,691		34		9			3		4
Total designated and undesignated instruments	$	2,553	$	2,788	$	98	$	48		$	6	$	5

(a) Recorded within Other current assets

(b) Recorded within Other assets

As of March 31, 2022, the Company had outstanding interest rate swaps with an aggregate notional amount of €830 million, with maturities of April 2023, April 2024, April 2025, April 2026 and April 2027. The Company uses interest rate swaps specifically to mitigate variable interest risk exposure on its long-term debt portfolio and has not designated them as hedging instruments for accounting purposes.

The cross-currency swaps have been designated as net investment hedges of its Euro-denominated operations. As of March 31, 2022, an aggregate notional amount of €606 million was designated as net investment hedges of the Company’s investment in Euro-denominated operations. The cross-currency swaps’ fair values were net assets of $44 million at March 31, 2022. Our Consolidated Interim Statements of Comprehensive Income include Changes in fair value of net investment hedges, net of tax of $13 million, during the three months ended March 31, 2022, related to these net investment hedges. No ineffectiveness has been recorded on the net investment hedges.

The Company's forward currency exchange contracts under our cash flow hedging program are assessed as highly effective and are designated as cash flow hedges. Gains and losses on derivatives qualifying as cash flow hedges are recorded in Accumulated other comprehensive income (loss) until the underlying transactions are recognized in earnings.

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

the fair value of the cross-currency swap are considered Level 2 inputs, which are based upon market-observable interest rate curves, cross-currency basis curves, credit default swap curves, and foreign exchange rates.

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

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


	March 31, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(Dollars in millions)
Term Loan Facilities	$	1,173	$	1,198	$	1,188	$	1,227

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.

Accounts, Notes and Other Receivables-Net - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Unbilled balances	$ 60	$ 63

Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets (Note 9)	Other assets (Note 9)
Other assets	$ 50	$ 51
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities (Note 10)	Accrued liabilities (Note 10)
Accrued liabilities	$ 10	$ 9
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other liabilities (Note 11)	Other liabilities (Note 11)
Other liabilities	$ 42	$ 42
Weighted-average remaining lease term (in years)	8 years 11 months 23 days	8 years 10 months 17 days
Weighted-average discount rate	5.57%	5.65%

Leases - Additional Information (Details) - Maximum	3 Months Ended
Leases - Additional Information (Details) - Maximum	Mar. 31, 2022
Lessee Lease Description [Line Items]
Operating lease, remaining lease terms	16 years
Operating lease, options to extend, years	2 years

Other Liabilities

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Other Liabilities

Note 11. Other Liabilities


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Income taxes	$	114	$	106

Pension and other employee related	58		61
Long-term lease liability (Note 12)	42		42
Advanced discounts from suppliers	13		16
Product warranties and performance guarantees – long-term (Note 19)	11		11
Environmental remediation – long term	15		15
Other	18		18
	$	271	$	269

Commitments and Contingencies - Summary Information Concerning our Recorded Obligations for Product Warranties and Product Performance Guarantees (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of year	$ 32	$ 14
Accruals for warranties/guarantees issued during the year	3	5
Settlement of warranty/guarantee claims	(3)	(4)
Amounts reclassified from Liabilities subject to compromise	0	17
Balance at end of year	$ 32	$ 32

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accrued Liabilities, Current [Abstract]
Customer pricing reserve	$ 72	$ 72
Compensation, benefit and other employee related	63	76
Repositioning	8	10
Product warranties and performance guarantees - short-term (Note 19)	21	21
Income and other taxes	29	25
Advanced discounts from suppliers, current	12	14
Customer advances and deferred income	34	23
Accrued interest	$ 8	$ 8
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued liabilities	Total accrued liabilities
Short-term lease liability (Note 12)	$ 10	$ 9
Other (primarily operating expenses)	45	37
Total accrued liabilities	302	295
Contract liabilities	9	5
Accrued environmental liability	$ 4	$ 3

Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$ 3	$ 3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 1	$ 1

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ (468)	$ (2,308)
Other comprehensive income before reclassifications	28	110
Amounts reclassified from accumulated other comprehensive income	(5)	1
Total other comprehensive income, net of tax	23	111
Ending balance	(357)	(2,300)
Foreign Exchange Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(43)	(81)
Other comprehensive income before reclassifications	2	110
Amounts reclassified from accumulated other comprehensive income	0	0
Total other comprehensive income, net of tax	2	110
Ending balance	(41)	29
Changes in Fair Value of Effective Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	7	(3)
Other comprehensive income before reclassifications	13	0
Amounts reclassified from accumulated other comprehensive income	(5)	1
Total other comprehensive income, net of tax	8	1
Ending balance	15	(2)
Changes in Fair Value of Net Investment Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	41	0
Other comprehensive income before reclassifications	13	0
Amounts reclassified from accumulated other comprehensive income	0	0
Total other comprehensive income, net of tax	13	0
Ending balance	54	0
Pension Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9)	(45)
Other comprehensive income before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	0	0
Total other comprehensive income, net of tax	0	0
Ending balance	(9)	(45)
Total Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(4)	(129)
Total other comprehensive income, net of tax	23	111
Ending balance	$ 19	$ (18)

Inventories-Net (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Summary of Inventories


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Raw materials	$	192	$	162
Work in process	20		19
Finished products	112		92
	324		273
Less—Reserves	(23)		(29)
	$	301	$	244

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. The unaudited Consolidated Interim Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2021 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 14, 2022 (our “2021 Form 10-K”). The results of operations and cash flows for the three months ended March 31, 2022 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts. We report our quarterly financial information using a calendar convention: the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday to minimize the potentially disruptive effects of quarterly closing on our business processes. 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, 2022. Our actual closing dates for the three months ended March 31, 2022 and 2021 were April 2, 2022 and April 3, 2021, respectively. The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances, including considerations for the impact of the outbreak of the COVID-19 pandemic on the Company's business due to various global macroeconomic, operational and supply-chain risks as a result of COVID-19. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued accounting standards update ("ASU") 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. The Company adopted the new guidance as of January 1, 2022. The adoption did not have a material impact on our Consolidated Interim Financial Statements; however, the Company expects to increase its disclosures with respect to government assistance beginning with our Annual Report on Form 10-K for the year ended December 31, 2022. Recently Issued Accounting Pronouncements We consider the applicability and impact of all recent ASU’s issued by the FASB. For the three months ended March 31, 2022, there were no recently issued, but not yet adopted accounting pronouncements that are expected to have a material impact on the Company’s Consolidated Interim Financial Statements and related disclosures.

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

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

The changes in Accumulated Other Comprehensive Income (Loss) by component are set forth below:


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


	Foreign Exchange Translation Adjustment		Changes in Fair Value of Effective Cash Flow Hedges		Changes in Fair Value of Net Investment Hedges		Pension Adjustments		Total Accumulated Other Comprehensive Income (Loss)
	(Dollars in millions)
Balance at December 31, 2021	$	(43)	$	7	$	41	$	(9)	$	(4)
Other comprehensive income before reclassifications	2		13		13		—		28
Amounts reclassified from accumulated other comprehensive income	—		(5)		—		—		(5)
Net current period other comprehensive income	2		8		13		—		23
Balance at March 31, 2022	$	(41)	$	15	$	54	$	(9)	$	19

Research, Development & Engineering (Tables)

3 Months Ended

Mar. 31, 2022

Research and Development [Abstract]

Summary of Research, Development & Engineering Activities

Such costs are included in Cost of goods sold as follows:


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Research and development costs	$	36	$	33
Engineering-related expenses	6		6
	$	42	$	39

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Summary of Components of Lease Expense

The components of lease expense are as follows:


	Three Months Ended March 31,
	2022		2021
	(Dollars in millions)
Operating lease cost	$	4	$	4

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,
	2022		2021
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3	$	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1		1

Summary of Supplemental Balance Sheet Information Related to Operating Leases

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


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Other assets	$	50	$	51
Accrued liabilities	10		9
Other liabilities	42		42


	March 31, 2022		December 31, 2021
Weighted-average remaining lease term (in years)	8.98		8.88
Weighted-average discount rate	5.57	%	5.65	%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of March 31, 2022 were as follows:


	(Dollars in millions)
2022	$	9
2023	10
2024	8
2025	7
2026	6
Thereafter	26
Total lease payments	66
Less imputed interest	(14)
	$	52

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies The accounting policies of the Company are set forth in Note 3 to the Consolidated Financial Statements for the year ended December 31, 2021 included in our 2021 Form 10-K. Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued accounting standards update ("ASU") 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. The Company adopted the new guidance as of January 1, 2022. The adoption did not have a material impact on our Consolidated Interim Financial Statements; however, the Company expects to increase its disclosures with respect to government assistance beginning with our Annual Report on Form 10-K for the year ended December 31, 2022. Recently Issued Accounting Pronouncements We consider the applicability and impact of all recent ASU’s issued by the FASB. For the three months ended March 31, 2022, there were no recently issued, but not yet adopted accounting pronouncements that are expected to have a material impact on the Company’s Consolidated Interim Financial Statements and related disclosures.