Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38636 | |
Entity Registrant Name | Garrett Motion Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-4873189 | |
Entity Address, Address Line One | La Pièce 16 | |
Entity Address, Postal Zip Code | 1180 | |
Entity Address, City or Town | Rolle | |
Entity Address, Country | CH | |
City Area Code | 41 21 | |
Local Phone Number | 695 30 00 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | GTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 218,606,857 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001735707 | |
Current Fiscal Year End Date | --12-31 | |
Other Address | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 47548 Halyard Drive | |
Entity Address, Postal Zip Code | 48170 | |
Entity Address, City or Town | Plymouth | |
Entity Address, State or Province | MI | |
City Area Code | 734 | |
Local Phone Number | 392 5500 |
CONSOLIDATED INTERIM STATEMENTS
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales (Note 3) | $ 890 | $ 1,011 | $ 1,805 | $ 1,981 |
Cost of goods sold | 705 | 809 | 1,448 | 1,590 |
Gross profit | 185 | 202 | 357 | 391 |
Selling, general and administrative expenses | 61 | 63 | 125 | 119 |
Other expense, net | 3 | 1 | 4 | 2 |
Interest expense | 62 | 29 | 93 | 56 |
Gain on sale of equity investment | (27) | 0 | (27) | 0 |
Non-operating (income) expense | (1) | 8 | (6) | 5 |
Income before taxes | 87 | 101 | 168 | 209 |
Tax expense (Note 5) | 23 | 30 | 38 | 57 |
Net income | 64 | 71 | 130 | 152 |
Less: preferred stock dividends | 0 | (40) | 0 | (80) |
Less: preferred stock deemed dividends | 0 | (232) | 0 | (232) |
Net income (loss) available for distribution | $ 64 | $ (201) | $ 130 | $ (160) |
Earnings (loss) per common share | ||||
Earnings per common share, basic (in USD per share) | $ 0.29 | $ (1.88) | $ 0.56 | $ (1.86) |
Earnings per common share, diluted (in USD per share) | $ 0.28 | $ (1.88) | $ 0.56 | $ (1.86) |
Weighted average common shares outstanding | ||||
Weighted average common shares outstanding, basic (in shares) | 224,321,948 | 107,408,432 | 230,493,039 | 86,269,694 |
Weighted average common shares outstanding, diluted (in shares) | 225,898,814 | 107,408,432 | 232,455,083 | 86,269,694 |
CONSOLIDATED INTERIM STATEMEN_2
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 64 | $ 71 | $ 130 | $ 152 |
Foreign exchange translation adjustment | 0 | (8) | 18 | (6) |
Defined benefit pension plan adjustment, net of tax | 2 | 0 | 3 | 0 |
Changes in fair value of effective cash flow hedges, net of tax (Note 16) | (2) | 2 | 1 | (1) |
Changes in fair value of net investment hedges, net of tax (Note 16) | 8 | 3 | 27 | (2) |
Total other comprehensive income (loss), net of tax | 8 | (3) | 49 | (9) |
Comprehensive income | $ 72 | $ 68 | $ 179 | $ 143 |
CONSOLIDATED INTERIM BALANCE SH
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 98 | $ 259 |
Restricted cash | 1 | 1 |
Accounts, notes and other receivables – net (Note 6) | 736 | 808 |
Inventories – net (Note 8) | 272 | 263 |
Other current assets | 85 | 75 |
Total current assets | 1,192 | 1,406 |
Investments and long-term receivables | 11 | 29 |
Property, plant and equipment – net | 438 | 477 |
Goodwill | 193 | 193 |
Deferred income taxes | 199 | 216 |
Other assets (Note 9) | 196 | 206 |
Total assets | 2,229 | 2,527 |
Current liabilities: | ||
Accounts payable | 984 | 1,074 |
Current maturities of long-term debt (Note 14) | 7 | 7 |
Accrued liabilities (Note 11) | 283 | 293 |
Total current liabilities | 1,274 | 1,374 |
Long-term debt (Note 14) | 1,465 | 1,643 |
Deferred income taxes | 24 | 27 |
Other liabilities (Note 12) | 191 | 218 |
Total liabilities | 2,954 | 3,262 |
COMMITMENTS AND CONTINGENCIES (Note 19) | ||
EQUITY (DEFICIT) | ||
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 240,783,003 and 238,543,624 issued and 220,720,522 and 238,249,056 outstanding as of June 30, 2024 and December 31, 2023, respectively | 0 | 0 |
Additional paid–in capital | 1,203 | 1,190 |
Retained deficit | (1,792) | (1,922) |
Accumulated other comprehensive income (loss) (Note 17) | 46 | (3) |
Treasury Stock, at cost; $20,062,481 and 0 shares as of June 30, 2024 and December 31, 2023, respectively (Note 15) | (182) | 0 |
Total deficit | (725) | (735) |
Total liabilities and deficit | $ 2,229 | $ 2,527 |
CONSOLIDATED INTERIM BALANCE _2
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
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) | 240,783,003 | 238,543,624 |
Common stock, shares, outstanding (in shares) | 220,720,522 | 238,249,056 |
Treasury stock, common (in shares) | 20,062,481 | 0 |
CONSOLIDATED INTERIM STATEMEN_3
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 130 | $ 152 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Deferred income taxes | 14 | 8 |
Depreciation | 44 | 43 |
Amortization of deferred issuance costs | 33 | 5 |
Loss on remeasurement of forward purchase contract | 0 | 13 |
Gain on sale of equity investment | (27) | 0 |
Foreign exchange loss (gain) | 13 | (11) |
Stock compensation expense | 13 | 8 |
Pension expense | 1 | 1 |
Unrealized loss on derivatives | 1 | 19 |
Other | 3 | 9 |
Changes in assets and liabilities: | ||
Accounts, notes and other receivables | 50 | (69) |
Inventories | (24) | (47) |
Other assets | 17 | (10) |
Accounts payable | (33) | 105 |
Accrued liabilities | (5) | 32 |
Other liabilities | (20) | (2) |
Net cash provided by operating activities | 210 | 256 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (49) | (33) |
Proceeds from cross-currency swap contracts | 21 | 9 |
Proceeds from sale of equity investment | 46 | 0 |
Net cash provided by (used for) investing activities | 18 | (24) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt, net of debt financing costs | 794 | 667 |
Payments of long-term debt | (989) | (4) |
Repurchases of Series A Preferred Stock | 0 | (580) |
Repurchases of Common Stock | (173) | (15) |
Payments of Additional Amounts for conversion of Series A Preferred Stock | 0 | (25) |
Payments for preference dividends | 0 | (42) |
Payments for debt and revolving facility financing costs | (7) | (2) |
Other | (9) | (1) |
Net cash used for financing activities | (384) | (2) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (5) | 1 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (161) | 231 |
Cash, cash equivalents and restricted cash at beginning of the period | 260 | 248 |
Cash, cash equivalents and restricted cash at end of the period | 99 | 479 |
Supplemental cash flow disclosure: | ||
Income taxes paid (net of refunds) | 27 | 27 |
Interest paid | $ 42 | $ 24 |
CONSOLIDATED INTERIM STATEMEN_4
CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT) (UNAUDITED) - USD ($) $ in Millions | Total | Common Stock | Series A Cumulative Convertible Preferred Stock | Series A Preferred Stock | Series A Preferred Stock Series A Cumulative Convertible Preferred Stock | Common Stock | Common Stock Common Stock | Treasury Stock | Additional Paid-in Capital | Additional Paid-in Capital Series A Cumulative Convertible Preferred Stock | Retained Deficit | Retained Deficit Common Stock | Retained Deficit Series A Cumulative Convertible Preferred Stock | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2022 | 246,000,000 | 64,000,000 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||||||||
Beginning balance at Dec. 31, 2022 | $ (116) | $ 0 | $ 0 | $ 0 | $ 1,333 | $ (1,485) | $ 36 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 81 | 81 | ||||||||||||
Other comprehensive income/loss , net of tax | (6) | (6) | ||||||||||||
Dividends | (42) | (42) | ||||||||||||
Stock-based compensation | 3 | 3 | ||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 246,000,000 | 64,000,000 | ||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 0 | |||||||||||||
Ending balance at Mar. 31, 2023 | (80) | $ 0 | $ 0 | $ 0 | 1,336 | (1,446) | 30 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 246,000,000 | 64,000,000 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||||||||
Beginning balance at Dec. 31, 2022 | (116) | $ 0 | $ 0 | $ 0 | 1,333 | (1,485) | 36 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 152 | |||||||||||||
Other comprehensive income/loss , net of tax | (9) | |||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | 264,000,000 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | |||||||||||||
Ending balance at Jun. 30, 2023 | (623) | $ 0 | $ 0 | $ 0 | 1,184 | (1,834) | 27 | |||||||
Beginning balance (in shares) at Mar. 31, 2023 | 246,000,000 | 64,000,000 | ||||||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 0 | |||||||||||||
Beginning balance at Mar. 31, 2023 | (80) | $ 0 | $ 0 | $ 0 | 1,336 | (1,446) | 30 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 71 | 71 | ||||||||||||
Stock repurchased during period, (in shares) | (70,000,000) | (2,000,000) | ||||||||||||
Share repurchases | $ (18) | $ (567) | $ (366) | $ (18) | $ (201) | |||||||||
Excise tax on share repurchases | (6) | (6) | ||||||||||||
Other comprehensive income/loss , net of tax | (3) | (3) | ||||||||||||
Issuance of common stock for preference dividends (in shares) | 26,000,000 | |||||||||||||
Issuance of Common Stock for preference dividends | 0 | 209 | (209) | |||||||||||
Conversion of Series A Preferred Stock (in shares) | (176,000,000) | (176,000,000) | ||||||||||||
Conversion of Series A Preferred Stock | (25) | (25) | ||||||||||||
Stock-based compensation | 5 | 5 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | 264,000,000 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | |||||||||||||
Ending balance at Jun. 30, 2023 | $ (623) | $ 0 | $ 0 | $ 0 | 1,184 | (1,834) | 27 | |||||||
Beginning balance (in shares) at Dec. 31, 2023 | 0 | 238,000,000 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 0 | 0 | ||||||||||||
Beginning balance at Dec. 31, 2023 | $ (735) | $ 0 | $ 0 | $ 0 | 1,190 | (1,922) | (3) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 66 | 66 | ||||||||||||
Stock repurchased during period, (in shares) | (12,000,000) | (12,000,000) | ||||||||||||
Share repurchases | (109) | $ (109) | ||||||||||||
Excise tax on share repurchases | (1) | $ (1) | ||||||||||||
Shares issued under stock plan, net of shares withheld for employee taxes (in shares) | 1,000,000 | 1,000,000 | ||||||||||||
Shares issued under stock plan, net of shares withheld for employee taxes | (5) | $ (5) | ||||||||||||
Other comprehensive income/loss , net of tax | 41 | 41 | ||||||||||||
Stock-based compensation | 8 | 8 | ||||||||||||
Ending balance (in shares) at Mar. 31, 2024 | 0 | 227,000,000 | ||||||||||||
Ending balance (in shares) at Mar. 31, 2024 | 13,000,000 | |||||||||||||
Ending balance at Mar. 31, 2024 | $ (735) | $ 0 | $ 0 | $ (115) | 1,198 | (1,856) | 38 | |||||||
Beginning balance (in shares) at Dec. 31, 2023 | 0 | 238,000,000 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 0 | 0 | ||||||||||||
Beginning balance at Dec. 31, 2023 | $ (735) | $ 0 | $ 0 | $ 0 | 1,190 | (1,922) | (3) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 130 | |||||||||||||
Share repurchases | (174) | |||||||||||||
Other comprehensive income/loss , net of tax | $ 49 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 0 | 221,000,000 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 20,062,481 | 20,000,000 | ||||||||||||
Ending balance at Jun. 30, 2024 | $ (725) | $ 0 | $ 0 | $ (182) | 1,203 | (1,792) | 46 | |||||||
Beginning balance (in shares) at Mar. 31, 2024 | 0 | 227,000,000 | ||||||||||||
Beginning balance (in shares) at Mar. 31, 2024 | 13,000,000 | |||||||||||||
Beginning balance at Mar. 31, 2024 | (735) | $ 0 | $ 0 | $ (115) | 1,198 | (1,856) | 38 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 64 | 64 | ||||||||||||
Stock repurchased during period, (in shares) | (7,000,000) | (7,000,000) | ||||||||||||
Share repurchases | (65) | $ (65) | ||||||||||||
Excise tax on share repurchases | (1) | (1) | ||||||||||||
Shares issued under stock plan, net of shares withheld for employee taxes (in shares) | 1,000,000 | |||||||||||||
Shares issued under stock plan, net of shares withheld for employee taxes | (1) | $ (1) | ||||||||||||
Other comprehensive income/loss , net of tax | 8 | 8 | ||||||||||||
Stock-based compensation | $ 5 | 5 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 0 | 221,000,000 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 20,062,481 | 20,000,000 | ||||||||||||
Ending balance at Jun. 30, 2024 | $ (725) | $ 0 | $ 0 | $ (182) | $ 1,203 | $ (1,792) | $ 46 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
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”) is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency. We design, manufacture, and sell highly engineered turbocharging, air and fluid compression, and high-speed electric motor technologies to original equipment manufacturers (“OEMs”) and distributors within the mobility and industrial space. We have significant expertise in delivering products at scale for internal combustion engines using gasoline, diesel, natural gas, and hydrogen, as well as for zero emission technologies using hydrogen fuel cell systems, both for mobility and industrial use. As our customers continue to progress on electrification, we are applying our technological pillars to develop highly engineered E-Powertrain and E-Cooling compressor products to support their ambition. These products are key enablers for fuel economy, energy efficiency, thermal management, and compliance with emissions standards and overall greenhouse gas and other emission reduction targets. 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, 2023 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 15, 2024 (our “2023 Form 10-K”). The results of operations for the three and six months ended June 30, 2024 and cash flows for the six months ended June 30, 2024 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts. We report our quarterly financial information using a calendar convention: the first, second, and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday to minimize the potentially disruptive effects of quarterly closing on our business processes. For differences in actual closing dates that are material to year-over-year comparisons of quarterly or year-to-date results, such differences have been adjusted for the three months ended June 30, 2024. Our actual closing dates for the three months ended June 30, 2024 and 2023 were June 29, 2024 and July 1, 2023, respectively. We evaluate segment reporting in accordance with ASC 280, Segment Reporting . We concluded that Garrett operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products across channels and geographies. The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 included in our 2023 Form 10-K. Accounting Standards Issued But Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB ” ) issued accounting standards update ( “ ASU") 2023-07, Segment Reporting (Topic 280) : Improvements to Reportable Segment Disclosures. The amendments in this update require companies with a single reportable segment to provide all existing segment disclosures, as well as requires incremental segment information to be disclosed. The guidance is effective for fiscal years beginning after December 15, 2023 on a retrospective basis, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the guidance to determine the impact on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this update increase the transparency around income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance is effective for fiscal years beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the guidance to determine the impact on its disclosures. There are no other recently issued, but not yet adopted, accounting pronouncements which are expected to have a material impact on the Company's Consolidated Interim Financial Statements and related disclosures. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | Note 3. Revenue Recognition and Contracts with Customers Disaggregated Revenue Net sales by region (determined based on country of shipment) and channel are as follows: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 OEM Aftermarket Other Total OEM Aftermarket Other Total (Dollars in millions) United States $ 119 $ 53 $ 2 $ 174 $ 142 $ 47 $ 1 $ 190 Europe 378 49 7 434 437 48 9 494 Asia 245 14 4 263 292 13 4 309 Other 14 5 — 19 12 6 — 18 $ 756 $ 121 $ 13 $ 890 $ 883 $ 114 $ 14 $ 1,011 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 OEM Aftermarket Other Total OEM Aftermarket Other Total (Dollars in millions) United States $ 245 $ 104 $ 3 $ 352 $ 265 $ 96 $ 2 $ 363 Europe 796 92 15 903 883 91 17 991 Asia 481 26 8 515 559 25 7 591 Other 24 11 — 35 24 12 — 36 $ 1,546 $ 233 $ 26 $ 1,805 $ 1,731 $ 224 $ 26 $ 1,981 Contract Balances The following table summarizes our contract assets and liabilities balances: 2024 2023 (Dollars in millions) Contract assets—January 1 $ 38 $ 46 Contract assets—June 30 51 47 Change in contract assets—Increase/(Decrease) $ 13 $ 1 Contract liabilities—January 1 $ (11) $ (8) Contract liabilities—June 30 (14) (9) Change in contract liabilities—Decrease/(Increase) $ (3) $ (1) |
Research, Development and Engin
Research, Development and Engineering | 6 Months Ended |
Jun. 30, 2024 | |
Research and Development [Abstract] | |
Research, Development and Engineering | Note 4. Research, Development and 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 Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Research and development costs $ 46 $ 46 $ 89 $ 86 Engineering-related expenses, net of customer (reimbursements) (1) (5) (4) (4) (5) $ 41 $ 42 $ 85 $ 81 (1) Engineering-related expenses include customer reimbursements of $16 million and $13 million for the three months ended June 30, 2024 and 2023, respectively, and $24 million and $24 million for the six months ended June 30, 2024 and 2023, respectively. Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. As of June 30, 2024 and December 31, 2023, $22 million and $12 million |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5. Income Taxes Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Tax expense $ 23 $ 30 $ 38 $ 57 Effective tax rate 26.4 % 29.7 % 22.6 % 27.3 % The effective tax rates for the three months ended June 30, 2024 and 2023 were 26.4% and 29.7% , respectively. The effective tax rates for the six months ended June 30, 2024 and 2023 were 22.6% and 27.3% , respectively. The change in the effective tax rate for the three months ended June 30, 2024 compared to the prior period is primarily related to lower U.S. taxes on international operations and lower non-deductible transaction costs, partially offset by tax related to the sale of an equity interest in an unconsolidated joint venture. The change in the effective tax rate for the six months ended June 30, 2024 compared to the prior period is primarily related to reversal of tax reserves, lower U.S. taxes on international operations, and lower non-deductible transaction costs, partially offset by tax related to the sale of an equity interest in an unconsolidated joint venture. The effective tax rate for the three months ended June 30, 2024 was higher than the U.S. federal statutory rate of 21% primarily because of U.S. taxes on international operations, withholding taxes, and tax related to sale of an equity interest in an unconsolidated joint venture, partially offset by lower taxes on non-U.S. earnings, and global research and development benefits. |
Accounts, Notes and Other Recei
Accounts, Notes and Other Receivables-Net | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Accounts, Notes and Other Receivables-Net | Note 6. Accounts, Notes and Other Receivables—Net June 30, December 31, (Dollars in millions) Trade receivables $ 568 $ 614 Notes receivable 91 101 Other receivables 84 99 743 814 Less—Allowance for expected credit losses (7) (6) $ 736 $ 808 Trade receivables include $51 million and $38 million of unbilled customer contract asset balances as of June 30, 2024 and December 31, 2023, 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 . Other receivables includes VAT receivables of $62 million and $78 million as of June 30, 2024 |
Factoring and Notes Receivable
Factoring and Notes Receivable | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Factoring and Notes Receivable | Note 7. Factoring and Notes Receivable The Company enters into arrangements with financial institutions to sell eligible trade receivables. The receivables are sold without recourse and the Company accounts for these arrangements as true sales. The Company also receives guaranteed bank notes without recourse, in settlement of accounts receivables, primarily in the Asia Pacific region. The Company can hold the bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. Bank notes sold to third-party financial institutions without recourse are likewise accounted for as true sales. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) Eligible receivables sold without recourse $ 240 $ 218 $ 402 $ 400 Guaranteed bank notes sold without recourse 52 — 52 — The expenses related to the sale of trade receivables and guaranteed bank notes are recognized within Other expense, net in the Consolidated Interim Statements of Operations, and were $1 million and $2 million for the three and six months ended June 30, 2024, respectively, and were immaterial for the three and six months ended June 30, 2023 . June 30, December 31, (Dollars in millions) Receivables sold but not yet collected by the bank from the customer $ 63 $ 7 Guaranteed bank notes sold but not yet collected by the bank from the customer — — As of June 30, 2024 and December 31, 2023, the Company had no guaranteed bank notes pledged as collateral . |
Inventories-Net
Inventories-Net | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories-Net | Note 8. Inventories—Net June 30, December 31, (Dollars in millions) Raw materials $ 194 $ 198 Work in process 20 21 Finished products 99 85 313 304 Less—Reserves (41) (41) $ 272 $ 263 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 9. Other Assets June 30, December 31, (Dollars in millions) Advanced discounts to customers, non-current $ 36 $ 41 Operating right-of-use assets 45 40 Income tax receivable 20 20 Pension and other employee related 11 11 Derivatives designated as net investment hedges 57 37 Designated and undesignated derivatives 19 46 Other 8 11 $ 196 $ 206 |
Supplier Financing
Supplier Financing | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Supplier Financing | Note 10. Supplier Financing The Company has supplier financing arrangements with two third-party financial institutions under which certain suppliers may factor their receivables from Garrett. The Company also enters into arrangements with banking institutions to issue bankers acceptance drafts in settlement of accounts payables, primarily in the Asia Pacific region. The bankers acceptance drafts, or guaranteed bank notes, have a contractual maturity of six months or less, and may be held by suppliers until maturity, transferred to their suppliers, or discounted with financial institutions in exchange for cash. The supplier financing obligations and guaranteed bank notes outstanding are recorded within Accounts payable in our Consolidated Interim Balance Sheet. June 30, December 31, (Dollars in millions) Supplier financing obligations outstanding with financial institutions $ 63 $ 68 Guaranteed bank notes outstanding 177 193 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Note 11. Accrued Liabilities June 30, December 31, (Dollars in millions) Customer pricing reserve $ 83 $ 57 Compensation, benefit and other employee related 65 80 Repositioning 9 9 Product warranties and performance guarantees - short-term (Note 19) 16 18 Income and other taxes 32 42 Customer advances and deferred income (1) 20 15 Accrued interest 14 26 Short-term lease liability 9 9 Accrued freight 8 9 Designated and undesignated derivatives 10 12 Other (primarily operating expenses) (2) 17 16 283 293 (1) Customer advances and deferred inco me include $14 million and $9 million of contract liabilities as of June 30, 2024 and December 31, 2023, respectively. See Note 3, Revenue Recognition and Contracts with Customers . (2) Includes $4 million and $5 million of environmental liabilities as of June 30, 2024 and December 31, 2023, respectively. The Company accrues 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 and Selling, general and administrative expenses in our Consolidated Interim Statements of Operations. Severance Costs Other Costs Total (Dollars in millions) Balance at December 31, 2023 $ 9 $ — $ 9 Charges 12 — 12 Usage—cash (12) — (12) Balance at June 30, 2024 $ 9 $ — $ 9 Severance Costs Other Costs Total (Dollars in millions) Balance at December 31, 2022 $ 9 $ — $ 9 Charges 7 2 9 Usage—cash (4) — (4) Non-cash asset write-offs — (2) (2) Balance at June 30, 2023 $ 12 $ — $ 12 |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 12. Other Liabilities June 30, December 31, (Dollars in millions) Income taxes $ 96 $ 99 Designated and undesignated derivatives — 20 Pension and other employee related 20 23 Long-term lease liability 37 33 Advanced discounts from suppliers 3 3 Product warranties and performance guarantees – long-term (Note 19) 9 9 Environmental remediation – long term 12 13 Long-term accounts payable 5 7 Other 9 11 191 218 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Note 13. Leases We have operating leases that primarily consist of real estate, machinery, and equipment. Our leases have remaining lease terms of up to 15 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 Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Operating lease cost $ 4 $ 4 $ 7 $ 8 Supplemental cash flow information related to operating leases is as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3 $ 3 $ 6 $ 7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3 2 9 2 Supplemental balance sheet information related to operating leases is as follows: June 30, December 31, (Dollars in millions) Other assets $ 45 $ 40 Accrued liabilities 9 9 Other liabilities 37 33 June 30, December 31, 2023 Weighted-average remaining lease term (in years) 7.44 8.08 Weighted-average discount rate 5.98 % 5.69 % Maturities of operating lease liabilities as of June 30, 2024 were as follows: (Dollars in millions) 2024 $ 8 2025 10 2026 9 2027 8 2028 6 Thereafter 17 Total lease payments 58 Less imputed interest (12) $ 46 |
Long-term Debt and Credit Agree
Long-term Debt and Credit Agreements | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Credit Agreements | Note 14. Long-term Debt and Credit Agreements Long Term Debt Senior Notes On May 21, 2024, Garrett Motion Holdings Inc. and Garrett LX I S.à.r.l. (the "Issuers"), wholly owned subsidiaries of the Company, completed an offering of $800 million in aggregate principal amount of 7.75% Senior Unsecured Notes due 2032 (the "2032 Senior Notes"). The 2032 Senior Notes mature on May 31, 2032. The Company incurred $12 million of debt issuance costs, which have been capitalized and will be amortized on a straight-line basis. The 2032 Senior Notes are guaranteed by the Company and each of the Company's wholly owned subsidiaries that guarantee obligations under the existing Credit Agreement (as defined below), subject to certain exceptions. The proceeds from the sale of the 2032 Senior Notes, together with cash on hand, were used to repay approximately $800 million of term loan indebtedness, as described below, and to pay related fees and expenses. Term Loans On April 30, 2021, the Company entered into a credit agreement (as amended from time to time, the "Credit Agreement") with JPMorgan Chase Bank, N.A. as administrative agent. The Credit Agreement provided for the following long-term senior secured financing (collectively, the "Term Loan Facilities"): • 2021 Dollar Term Facility: a seven-year secured first-lien U.S. Dollar term loan facility for $715 million; • 2023 Dollar Term Facility : a five-year secured first-lien U.S. Dollar term loan facility for $500 million; and • Euro Term Facility : a seven-year secured first-lien Euro term loan facility for €450 million. In the three months ended June 30, 2024, we made early debt repayments totaling $985 million on our Euro Term Facility and our 2023 Dollar Term Facility. Both term loans were fully repaid as of June 30, 2024. The early repayments resulted in incremental amortization of debt issuance costs of $27 million, included within Interest expense in the Consolidated Interim Statement of Operations. On May 21, 2024, in addition to the above transactions, the Company entered into Amendment No. 4 (the "Fourth Amendment") and Amendment No. 5 (the "Fifth Amendment" and, together with the Fourth Amendment, the "Amendments") to the Credit Agreement (as amended by the Amendments, the "Amended Credit Agreement"). The Fourth Amendment (i) removed the credit spread adjustment with respect to certain US dollar denominated term loan borrowings that are Term Benchmark Loans (as defined in the Amended Credit Agreement) and (ii) reduced the Applicable Rate (as defined in the Amended Credit Agreement) on certain US dollar denominated term loans to 2.75% for Term Benchmark Loans and 1.75% for ABR Loans (as defined in the Amended Credit Agreement). The Fifth Amendment increased the amount of revolving loan commitments available to the Company under the Credit Agreement by $30 million ("Incremental Revolving Commitment") to an aggregate amount of $600 million, as discussed below. The Incremental Revolving Commitment has the same terms and is subject to the same conditions applicable to revolving loans generally under the Amended Credit Agreement. The principal outstanding and carrying amounts of our long-term debt as of June 30, 2024 and December 31, 2023 are as follows: Due Interest Rate June 30, December 31, 2021 Dollar Term Facility 4/30/2028 SOFR plus 275 bps $ 695 $ 699 2023 Dollar Term Facility 4/30/2028 SOFR plus 450 bps — 500 Euro Term Facility 4/30/2028 EURIBOR plus 350 bps — 497 2032 Senior Notes 5/31/2032 7.75% 800 — Other 2 — Total principal outstanding 1,497 1,696 Less: unamortized deferred financing costs (25) (46) Less: current portion of long-term debt (7) (7) Total long-term debt $ 1,465 $ 1,643 Revolving Facility and Letters of Credit The Amended Credit Agreement also provides for a senior secured first-lien revolving credit facility providing for multi-currency re volving loans (the “Revolving Facility”). The Revolving Facility matures on April 30, 2028 and has a maximum borrowing amount available of $600 million. Under the Revolving Facility, the Company may use up to $125 million for the issuance of letters of credit to its subsidiaries. Letters of credit are available for issuance under the Amended Credit Agreement on terms and conditions customary for financings of this kind, which issuances reduce availability under the Revolving Facility. As of June 30, 2024, the Company had no loans outstanding under the Revolving Facility, no outstanding letters of credit, and available borrowing capacity of $600 million. Separate from the Revolving Facility, the Company has a bilateral letter of credit facility in the amount of $15 million, which matures on April 30, 2026. As of June 30, 2024, the Company had $12 million utilized and $3 million of remaining available capacity under such facility. Minimum scheduled principal repayments of long-term debt as of June 30, 2024 are as follow: June 30, (Dollars in millions) 2024 $ 4 2025 7 2026 7 2027 7 2028 672 Thereafter 800 Total debt payments $ 1,497 Interest Rates and Fees The 2032 Senior Notes bear interest at a rate of 7.75% per annum. Interest on the 2032 Senior Notes is payable semi-annually in arrears on May 31 and November 30 of each year, commencing on November 30, 2024. The 2021 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 SOFR rate (“SOFR”) (which shall not be less than 0.50%), in each case, plus an applicable margin equal to 2.75% in the case of SOFR loans and 1.75% in the case of ABR loans. 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. Certain Covenants 2032 Senior Notes The 2032 Senior Notes contain certain covenants that limit the ability of the Company and its restricted subsidiaries to incur certain additional debt, incur certain liens securing debt, pay certain dividends or make other restricted payments, make certain investments, make certain asset sales, and enter into certain transactions with affiliates. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the 2032 Senior Notes indenture. Additionally, the indenture contains certain change of control provisions that, under certain conditions, would require the Company to make an offer to repurchase all of the outstanding 2032 Senior Notes at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest. The indenture also contains customary events of default. Term Loans The Amended 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 June 30, 2024, the Company was in compliance with all covenants under the 2032 Senior Notes indenture and Amended Credit Agreement. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Note 15. Equity Preferred Stock On April 12, 2023, the Company entered into separate definitive agreements with each of Centerbridge Partners, L.P. and funds managed by Oaktree Capital Management, L.P. to effect a series of integrated transactions (collectively, the “Transaction”) designed to increase the attractiveness of the Company to investors, including by simplifying the Company’s capital structure by converting all outstanding Series A Preferred Stock into a single class of Common Stock, subject to certain conditions. On June 6, 2023, the Company completed all steps of the Transaction and had no remaining shares of Series A Preferred Stock outstanding as of that date. Please refer to Note 21, Equity , to the Consolidated Financial Statements for the year ended December 31, 2023 included in our 2023 Form 10-K. Treasury Stock Treasury stock represents shares of the Company's Common Stock that have been issued and subsequently repurchased by the Company or withheld to satisfy withholding tax obligations in connection with equity award vestings, and that have not been retired or cancelled. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of Equity (Deficit) on the Consolidated Interim Balance Sheet. The Company accounts for the reissuance of treasury stock using the average cost method. The Company did not reissue or retire any shares of treasury stock during the three and six months ended June 30, 2024. Share Repurchase Program On February 12, 2024, the Board of Directors authorized a $350 million share repurchase program valid until December 31, 2024. The Company may repurchase shares from time to time under the program through various methods, including in open market transactions, block trades, privately negotiated transactions, and otherwise. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. During the six months ended June 30, 2024, the Company repurchased $174 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Fair Value Measures | Note 16. 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, 2023 included in our 2023 Form 10-K. As of June 30, 2024 and December 31, 2023, we had contracts with aggregate gross notional amounts of $1,165 million and $1,171 million, respectively, to hedge 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 June 30, 2024 and December 31, 2023: Fair Value Notional Amounts Assets Liabilities June 30, December 31, 2023 June 30, December 31, 2023 June 30, December 31, 2023 Designated instruments: Designated forward currency exchange contracts $ 392 $ 456 $ 7 $ 11 (a) $ 8 $ 6 (c) Designated cross-currency swaps 1,515 1,015 57 37 (b) — 17 (d) Designated interest-rate swaps — 200 — — — — Total designated instruments 1,907 1,671 64 48 8 23 Undesignated instruments: Undesignated interest rate swaps 481 917 19 46 (b) — 3 (d) Undesignated forward currency exchange contracts 773 715 6 1 (a) 2 6 (c) Total undesignated instruments 1,254 1,632 25 47 2 9 Total designated and undesignated instruments $ 3,161 $ 3,303 $ 89 $ 95 $ 10 $ 32 (a) Recorded within Other current assets (b) Recorded within Other assets (c) Recorded within Accrued liabilities (d) Recorded within Other liabilities Cash Flow Hedges During 2023, the Company entered into float-to-fixed interest rate swap contracts with an aggregate notional amount of $200 million and maturities in July 2024 and October 2024. The Company also entered into a float-to-fixed cross-currency swap contract comprised of an amortizing swap with an aggregate notional amount of €280 million ($300 million) and notional exchanges in June 2026, June 2027, and June 2028. The interest rate swap and cross-currency swap contracts were early settled in 2024, resulting in net gains of $18 million recorded to Interest expense and a $4 million loss recorded to Non-operating expense in the Consolidated Interim Statement of Operations. The Company also has outstanding forward currency exchange contracts with maturities up to 18 months and an aggregate notional amount of $392 million and $456 million as of June 30, 2024 and December 31, 2023, respectively. These forward currency exchange contracts have been designated as cash flow hedges to mitigate foreign currency exposures primarily on our inventory purchases and manufacturing costs. The gains and losses on the forward currency exchange contracts are recorded in Accumulated Other Comprehensive Income ("AOCI") and reclassified to Cost of goods sold in the Consolidated Interim Statement of Operations when the underlying transactions are recognized in earnings. In order to mitigate foreign currency risk on its 2032 Senior Notes, the Company entered into fixed-to-fixed cross-currency swap contracts with an aggregate notional amount of €507 million ($550 million) and notional exchanges in May 2027, May 2028, May 2029, and May 2030. Changes in the fair value of the cross-currency swap contracts are recognized in AOCI and reclassified to Non-operating (income) expense in the Consolidated Interim Statement of Operations, based upon changes in the spot rate remeasurement of the underlying debt. The net interest settlements on the cross-currency swap contracts are recorded in Interest expense in the Consolidated Interim Statements of Operations. All of the Company's cash flow hedges are assessed as highly effective. For the three months ended June 30, 2024 and 2023, the Company recorded a loss of $2 million, net of tax, and a gain of $2 million, net of tax, respectively, in Other comprehensive income. For the six months ended June 30, 2024 and 2023, the Company recorded a gain of $1 million, net of tax, and a loss of $1 million, net of tax, respectively, in Other comprehensive income. Net Investment Hedges The Company has designated float-to-float cross-currency swaps with aggregate notional amounts of €858 million ($965 million) and €615 million ($715 million) as of June 30, 2024 and December 31, 2023, respectively, as net investment hedges of its Euro-denominated operations. In April 2024, the Company re-couponed the cross-currency swap contracts which have been designated as net investment hedges and received a cash settlement of $13 million. The fair values of the net investment hedges were net assets o f $57 million and $37 million as of June 30, 2024 and December 31, 2023 , respectively. Our Consolidated Interim Statements of Comprehensive Income include Changes in fair value of net investment hedges, net of tax, of a $8 million gain and a $3 million gain for the three months ended June 30, 2024 and 2023, respectively, and of a $27 million gain and a $2 million loss for the six months ended June 30, 2024 and 2023 , respectively. No ineffectiveness has been recorded on the net investment hedges. Non-Designated Derivatives As of June 30, 2024 and December 31, 2023, the Company has outstanding float-to-fixed interest rate swap contracts with an aggregate notional amount of €450 million ($481 million) and €830 million ($917 million), respectively, and maturities of July 2024, October 2024, April 2025, April 2026, April 2027, and April 2028. Changes in the fair value of the undesignated interest rate swap contracts are recorded in Interest expense in the Consolidated Interim Statements of Operations. The Company also has outstanding forward currency exchange contracts with maturities generally up to 3 months and an aggregate notional amount of $773 million and $715 million as of June 30, 2024 and December 31, 2023 , respectively . These derivatives are not designated as hedging instruments and are adjusted to fair value through Non-operating (income) expense in the Consolidated Interim Statements of Operations. Fair Value Measurement 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: June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value (Dollars in millions) Term Loan Facilities $ 682 $ 696 $ 1,650 $ 1,692 2032 Senior Notes 789 812 — — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Note 17. Accumulated Other Comprehensive Income The changes in AOCI by component are set forth below: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Foreign Exchange Translation Adjustment Balance at beginning of period $ (39) $ (42) $ (57) $ (44) Other comprehensive income (loss) before 5 (8) 23 (6) Amounts reclassified from AOCI (5) — (5) — Balance at end of period (39) (50) (39) (50) Pension Adjustments Balance at beginning of period (19) (18) (20) (18) Other comprehensive income (loss) before reclassifications (1) 2 — 3 — Balance at end of period (17) (18) (17) (18) Changes in Fair Value of Effective Cash Flow Hedges Balance at beginning of period 1 10 (2) 13 Other comprehensive income (loss) before reclassifications (2) 6 9 18 14 Amounts reclassified from AOCI, net (8) (7) (17) (15) Balance at end of period (1) 12 (1) 12 Changes in Fair Value of Net Investment Hedges Balance at beginning of period 95 80 76 85 Other comprehensive income (loss) before reclassifications, net (3) 8 3 27 (2) Balance at end of period 103 83 103 83 Accumulated other comprehensive income, end of period $ 46 $ 27 $ 46 $ 27 (1) There were no income tax effects for the three and six months ended June 30, 2024 and 2023. (2) Net of tax expense (benefit) of $2 million and $2 million for the three months ended June 30, 2024 and 2023, respectively and $6 million and $2 million for the six months ended June 30, 2024 and 2023, respectively. (3) Net of tax expense (benefit) of $2 million and $(3) million for the three months ended June 30, 2024 and 2023, respectively, and $6 million and $(6) million for the six months ended June 30, 2024 and 2023, respectively. Reclassifications from AOCI to income were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Foreign Exchange Translation Adjustment Reclassification adjustments recognized in income (1) $ (5) $ — $ (5) $ — Amounts reclassified from AOCI (5) — (5) — Changes in Fair Value of Effective Cash Flow Hedges Reclassification forward currency exchange contracts to Cost of goods sold $ (2) $ (6) $ (4) $ (15) Reclassification cross-currency swaps to Interest expense 1 — (1) — Reclassification cross-currency swaps to Non-operating (income) expense (6) 4 (13) 4 Tax effect on reclassification to income (1) (5) 1 (4) Amounts reclassified from AOCI, net (8) (7) (17) (15) Total reclassifications for the period $ (13) $ (7) $ (22) $ (15) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 18. Earnings Per Share For the three and six months ended June 30, 2024, basic earnings per share ("EPS") is computed using the weighted-average number of common shares outstanding during the period. For the three and six months ended June 30, 2023, basic earnings per share was calculated using the two-class method because our Series A Preferred Stock was considered a participating security prior to its conversion into Common Stock and cancellation pursuant to the Transaction. The two-class method requires an allocation of earnings to all securities that participate in dividends with common shares, which included our Series A Preferred Stock, to the extent that each such 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. Diluted earnings per share for the three and six months ended June 30, 2024 is calculated based on the weighted-average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method. Diluted earnings per share for the three and six months ended June 30, 2023 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. The details of the EPS calculations for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions except per share) Basic earnings per share: Net income $ 64 $ 71 $ 130 $ 152 Less: preferred stock dividend — (40) — (80) Less: preferred stock deemed dividends — (232) — (232) Net income (loss) available to common shareholders $ 64 $ (201) $ 130 $ (160) Weighted average common shares outstanding - Basic 224,321,948 107,408,432 230,493,039 86,269,694 EPS – Basic $ 0.29 $ (1.88) $ 0.56 $ (1.86) Diluted earnings per share: Method used: Two-class Two-class Weighted average common shares outstanding - Basic 224,321,948 107,408,432 230,493,039 86,269,694 Dilutive effect of unvested RSUs and other contingently issuable shares 1,576,866 — 1,962,044 — Weighted average common shares outstanding – Diluted 225,898,814 107,408,432 232,455,083 86,269,694 EPS – Diluted $ 0.28 $ (1.88) $ 0.56 $ (1.86) For the periods where a net loss attributable to common shareholders is present, dilutive securities have been excluded from the calculation of diluted net loss per share attributable to common stockholders as including them would have been anti-dilutive. For the three and six months ended June 30, 2023, the weighted-average number of unvested RSUs and other contingently issuable shares excluded from the computations were 1,113,778 and 1,358,636 shares, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 19. Commitments and Contingencies Securities Litigation In 2020, various securities class action complaints were 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 asserting claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, for alleged securities fraud and control person liability. In March 2022, the trial court dismissed with prejudice the claims against certain of the defendants, and in March 2023, the trial court dismissed with prejudice all remaining claims. In April 2023, the plaintiffs appealed the trial court’s decision to the United States Court of Appeals for the Second Circuit. In April 2024, the Second Circuit affirmed dismissal of the claims, and the deadline for further appeals has passed. 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 June 30, 2024 was $36 million, including penalties and interest. 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 Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Warranty and product performance guarantees at beginning of period $ 26 $ 28 $ 27 $ 28 Accruals for warranties/guarantees issued during the period 2 3 5 6 Settlement of warranty/guarantee claims (3) (4) (6) (7) Foreign currency translation — — (1) — Warranty and product performance guarantees at end of period $ 25 $ 27 $ 25 $ 27 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. |
Pension Benefits
Pension Benefits | 6 Months Ended |
Jun. 30, 2024 | |
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 2024. 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 2024, of which $3 million has been contributed as of June 30, 2024. Net periodic benefit costs for our significant defined benefit plans include the following components: Three Months Ended June 30, Six Months Ended June 30, U.S. Plans Non-U.S. Plan U.S. Plans Non-U.S. Plan 2024 2023 2024 2023 2024 2023 2024 2023 (Dollars in millions) Service cost $ — $ — $ 2 $ 1 $ — $ — $ 3 $ 3 Interest cost 2 2 1 1 4 4 3 2 Expected return on plan assets (2) (2) (2) (2) (4) (4) (4) (4) Amortization of prior service (credit) — — — — — — (1) — Total $ — $ — $ 1 $ — $ — $ — $ 1 $ 1 For both our U.S. and non-U.S. defined benefit pension plans, we estimate the service and interest cost components of net 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. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions and Divestitures | Note 21. Acquisitions and Divestitures |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 64 | $ 66 | $ 71 | $ 81 | $ 130 | $ 152 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on February 15, 2024 (our “2023 Form 10-K”). The results of operations for the three and six months ended June 30, 2024 and cash flows for the six months ended June 30, 2024 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts. We report our quarterly financial information using a calendar convention: the first, second, and third quarters are consistently reported as ending on March 31, June 30 and September 30. It has been our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday to minimize the potentially disruptive effects of quarterly closing on our business processes. For differences in actual closing dates that are material to year-over-year comparisons of quarterly or year-to-date results, such differences have been adjusted for the three months ended June 30, 2024. Our actual closing dates for the three months ended June 30, 2024 and 2023 were June 29, 2024 and July 1, 2023, respectively. We evaluate segment reporting in accordance with ASC 280, Segment Reporting . We concluded that Garrett operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products across channels and geographies. The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods. |
Accounting Standards Issued But Not Yet Adopted | In November 2023, the Financial Accounting Standards Board (“FASB ” ) issued accounting standards update ( “ ASU") 2023-07, Segment Reporting (Topic 280) : Improvements to Reportable Segment Disclosures. The amendments in this update require companies with a single reportable segment to provide all existing segment disclosures, as well as requires incremental segment information to be disclosed. The guidance is effective for fiscal years beginning after December 15, 2023 on a retrospective basis, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the guidance to determine the impact on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this update increase the transparency around income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. The guidance is effective for fiscal years beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the guidance to determine the impact on its disclosures. There are no other recently issued, but not yet adopted, accounting pronouncements which are expected to have a material impact on the Company's Consolidated Interim Financial Statements and related disclosures. |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Net Sales by Region and Channel | Net sales by region (determined based on country of shipment) and channel are as follows: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 OEM Aftermarket Other Total OEM Aftermarket Other Total (Dollars in millions) United States $ 119 $ 53 $ 2 $ 174 $ 142 $ 47 $ 1 $ 190 Europe 378 49 7 434 437 48 9 494 Asia 245 14 4 263 292 13 4 309 Other 14 5 — 19 12 6 — 18 $ 756 $ 121 $ 13 $ 890 $ 883 $ 114 $ 14 $ 1,011 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 OEM Aftermarket Other Total OEM Aftermarket Other Total (Dollars in millions) United States $ 245 $ 104 $ 3 $ 352 $ 265 $ 96 $ 2 $ 363 Europe 796 92 15 903 883 91 17 991 Asia 481 26 8 515 559 25 7 591 Other 24 11 — 35 24 12 — 36 $ 1,546 $ 233 $ 26 $ 1,805 $ 1,731 $ 224 $ 26 $ 1,981 |
Summary of Contract Assets and Liabilities | The following table summarizes our contract assets and liabilities balances: 2024 2023 (Dollars in millions) Contract assets—January 1 $ 38 $ 46 Contract assets—June 30 51 47 Change in contract assets—Increase/(Decrease) $ 13 $ 1 Contract liabilities—January 1 $ (11) $ (8) Contract liabilities—June 30 (14) (9) Change in contract liabilities—Decrease/(Increase) $ (3) $ (1) |
Research, Development and Eng_2
Research, Development and Engineering (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Research and Development [Abstract] | |
Summary of Research, Development & Engineering Activities | Such costs are included in Cost of goods sold as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Research and development costs $ 46 $ 46 $ 89 $ 86 Engineering-related expenses, net of customer (reimbursements) (1) (5) (4) (4) (5) $ 41 $ 42 $ 85 $ 81 (1) Engineering-related expenses include customer reimbursements of $16 million and $13 million for the three months ended June 30, 2024 and 2023, respectively, and $24 million and $24 million for the six months ended June 30, 2024 and 2023, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Tax Expense (Benefit) and Effective Tax Rate | Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Tax expense $ 23 $ 30 $ 38 $ 57 Effective tax rate 26.4 % 29.7 % 22.6 % 27.3 % |
Accounts, Notes and Other Rec_2
Accounts, Notes and Other Receivables-Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes and Other Receivables Net | June 30, December 31, (Dollars in millions) Trade receivables $ 568 $ 614 Notes receivable 91 101 Other receivables 84 99 743 814 Less—Allowance for expected credit losses (7) (6) $ 736 $ 808 |
Factoring and Notes Receivable
Factoring and Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Disclosure of Detailed Information about Trade Receivables and Guaranteed Bank Notes | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) Eligible receivables sold without recourse $ 240 $ 218 $ 402 $ 400 Guaranteed bank notes sold without recourse 52 — 52 — June 30, December 31, (Dollars in millions) Receivables sold but not yet collected by the bank from the customer $ 63 $ 7 Guaranteed bank notes sold but not yet collected by the bank from the customer — — |
Inventories-Net (Tables)
Inventories-Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | June 30, December 31, (Dollars in millions) Raw materials $ 194 $ 198 Work in process 20 21 Finished products 99 85 313 304 Less—Reserves (41) (41) $ 272 $ 263 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | June 30, December 31, (Dollars in millions) Advanced discounts to customers, non-current $ 36 $ 41 Operating right-of-use assets 45 40 Income tax receivable 20 20 Pension and other employee related 11 11 Derivatives designated as net investment hedges 57 37 Designated and undesignated derivatives 19 46 Other 8 11 $ 196 $ 206 |
Supplier Financing (Tables)
Supplier Financing (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | The supplier financing obligations and guaranteed bank notes outstanding are recorded within Accounts payable in our Consolidated Interim Balance Sheet. June 30, December 31, (Dollars in millions) Supplier financing obligations outstanding with financial institutions $ 63 $ 68 Guaranteed bank notes outstanding 177 193 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | June 30, December 31, (Dollars in millions) Customer pricing reserve $ 83 $ 57 Compensation, benefit and other employee related 65 80 Repositioning 9 9 Product warranties and performance guarantees - short-term (Note 19) 16 18 Income and other taxes 32 42 Customer advances and deferred income (1) 20 15 Accrued interest 14 26 Short-term lease liability 9 9 Accrued freight 8 9 Designated and undesignated derivatives 10 12 Other (primarily operating expenses) (2) 17 16 283 293 (1) Customer advances and deferred inco me include $14 million and $9 million of contract liabilities as of June 30, 2024 and December 31, 2023, respectively. See Note 3, Revenue Recognition and Contracts with Customers . (2) Includes $4 million and $5 million of environmental liabilities as of June 30, 2024 and December 31, 2023, respectively. |
Summary of Expenses Related to the Repositioning Accruals | Severance Costs Other Costs Total (Dollars in millions) Balance at December 31, 2023 $ 9 $ — $ 9 Charges 12 — 12 Usage—cash (12) — (12) Balance at June 30, 2024 $ 9 $ — $ 9 Severance Costs Other Costs Total (Dollars in millions) Balance at December 31, 2022 $ 9 $ — $ 9 Charges 7 2 9 Usage—cash (4) — (4) Non-cash asset write-offs — (2) (2) Balance at June 30, 2023 $ 12 $ — $ 12 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | June 30, December 31, (Dollars in millions) Income taxes $ 96 $ 99 Designated and undesignated derivatives — 20 Pension and other employee related 20 23 Long-term lease liability 37 33 Advanced discounts from suppliers 3 3 Product warranties and performance guarantees – long-term (Note 19) 9 9 Environmental remediation – long term 12 13 Long-term accounts payable 5 7 Other 9 11 191 218 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Operating lease cost $ 4 $ 4 $ 7 $ 8 |
Summary of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3 $ 3 $ 6 $ 7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3 2 9 2 |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: June 30, December 31, (Dollars in millions) Other assets $ 45 $ 40 Accrued liabilities 9 9 Other liabilities 37 33 June 30, December 31, 2023 Weighted-average remaining lease term (in years) 7.44 8.08 Weighted-average discount rate 5.98 % 5.69 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of June 30, 2024 were as follows: (Dollars in millions) 2024 $ 8 2025 10 2026 9 2027 8 2028 6 Thereafter 17 Total lease payments 58 Less imputed interest (12) $ 46 |
Long-term Debt and Credit Agr_2
Long-term Debt and Credit Agreements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 are as follows: Due Interest Rate June 30, December 31, 2021 Dollar Term Facility 4/30/2028 SOFR plus 275 bps $ 695 $ 699 2023 Dollar Term Facility 4/30/2028 SOFR plus 450 bps — 500 Euro Term Facility 4/30/2028 EURIBOR plus 350 bps — 497 2032 Senior Notes 5/31/2032 7.75% 800 — Other 2 — Total principal outstanding 1,497 1,696 Less: unamortized deferred financing costs (25) (46) Less: current portion of long-term debt (7) (7) Total long-term debt $ 1,465 $ 1,643 |
Schedule of Principal Repayments Of Credit Facilities | Minimum scheduled principal repayments of long-term debt as of June 30, 2024 are as follow: June 30, (Dollars in millions) 2024 $ 4 2025 7 2026 7 2027 7 2028 672 Thereafter 800 Total debt payments $ 1,497 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2024 and December 31, 2023: Fair Value Notional Amounts Assets Liabilities June 30, December 31, 2023 June 30, December 31, 2023 June 30, December 31, 2023 Designated instruments: Designated forward currency exchange contracts $ 392 $ 456 $ 7 $ 11 (a) $ 8 $ 6 (c) Designated cross-currency swaps 1,515 1,015 57 37 (b) — 17 (d) Designated interest-rate swaps — 200 — — — — Total designated instruments 1,907 1,671 64 48 8 23 Undesignated instruments: Undesignated interest rate swaps 481 917 19 46 (b) — 3 (d) Undesignated forward currency exchange contracts 773 715 6 1 (a) 2 6 (c) Total undesignated instruments 1,254 1,632 25 47 2 9 Total designated and undesignated instruments $ 3,161 $ 3,303 $ 89 $ 95 $ 10 $ 32 (a) Recorded within Other current assets (b) Recorded within Other assets (c) Recorded within Accrued liabilities (d) Recorded within Other liabilities |
Summary of Financial Assets and Liabilities Not Carried at Fair Value | The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value: June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value (Dollars in millions) Term Loan Facilities $ 682 $ 696 $ 1,650 $ 1,692 2032 Senior Notes 789 812 — — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The changes in AOCI by component are set forth below: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Foreign Exchange Translation Adjustment Balance at beginning of period $ (39) $ (42) $ (57) $ (44) Other comprehensive income (loss) before 5 (8) 23 (6) Amounts reclassified from AOCI (5) — (5) — Balance at end of period (39) (50) (39) (50) Pension Adjustments Balance at beginning of period (19) (18) (20) (18) Other comprehensive income (loss) before reclassifications (1) 2 — 3 — Balance at end of period (17) (18) (17) (18) Changes in Fair Value of Effective Cash Flow Hedges Balance at beginning of period 1 10 (2) 13 Other comprehensive income (loss) before reclassifications (2) 6 9 18 14 Amounts reclassified from AOCI, net (8) (7) (17) (15) Balance at end of period (1) 12 (1) 12 Changes in Fair Value of Net Investment Hedges Balance at beginning of period 95 80 76 85 Other comprehensive income (loss) before reclassifications, net (3) 8 3 27 (2) Balance at end of period 103 83 103 83 Accumulated other comprehensive income, end of period $ 46 $ 27 $ 46 $ 27 (1) There were no income tax effects for the three and six months ended June 30, 2024 and 2023. (2) Net of tax expense (benefit) of $2 million and $2 million for the three months ended June 30, 2024 and 2023, respectively and $6 million and $2 million for the six months ended June 30, 2024 and 2023, respectively. (3) Net of tax expense (benefit) of $2 million and $(3) million for the three months ended June 30, 2024 and 2023, respectively, and $6 million and $(6) million for the six months ended June 30, 2024 and 2023, respectively. |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications from AOCI to income were as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Foreign Exchange Translation Adjustment Reclassification adjustments recognized in income (1) $ (5) $ — $ (5) $ — Amounts reclassified from AOCI (5) — (5) — Changes in Fair Value of Effective Cash Flow Hedges Reclassification forward currency exchange contracts to Cost of goods sold $ (2) $ (6) $ (4) $ (15) Reclassification cross-currency swaps to Interest expense 1 — (1) — Reclassification cross-currency swaps to Non-operating (income) expense (6) 4 (13) 4 Tax effect on reclassification to income (1) (5) 1 (4) Amounts reclassified from AOCI, net (8) (7) (17) (15) Total reclassifications for the period $ (13) $ (7) $ (22) $ (15) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The details of the EPS calculations for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 (Dollars in millions except per share) Basic earnings per share: Net income $ 64 $ 71 $ 130 $ 152 Less: preferred stock dividend — (40) — (80) Less: preferred stock deemed dividends — (232) — (232) Net income (loss) available to common shareholders $ 64 $ (201) $ 130 $ (160) Weighted average common shares outstanding - Basic 224,321,948 107,408,432 230,493,039 86,269,694 EPS – Basic $ 0.29 $ (1.88) $ 0.56 $ (1.86) Diluted earnings per share: Method used: Two-class Two-class Weighted average common shares outstanding - Basic 224,321,948 107,408,432 230,493,039 86,269,694 Dilutive effect of unvested RSUs and other contingently issuable shares 1,576,866 — 1,962,044 — Weighted average common shares outstanding – Diluted 225,898,814 107,408,432 232,455,083 86,269,694 EPS – Diluted $ 0.28 $ (1.88) $ 0.56 $ (1.86) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 (Dollars in millions) Warranty and product performance guarantees at beginning of period $ 26 $ 28 $ 27 $ 28 Accruals for warranties/guarantees issued during the period 2 3 5 6 Settlement of warranty/guarantee claims (3) (4) (6) (7) Foreign currency translation — — (1) — Warranty and product performance guarantees at end of period $ 25 $ 27 $ 25 $ 27 |
Pension Benefits (Tables)
Pension Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, U.S. Plans Non-U.S. Plan U.S. Plans Non-U.S. Plan 2024 2023 2024 2023 2024 2023 2024 2023 (Dollars in millions) Service cost $ — $ — $ 2 $ 1 $ — $ — $ 3 $ 3 Interest cost 2 2 1 1 4 4 3 2 Expected return on plan assets (2) (2) (2) (2) (4) (4) (4) (4) Amortization of prior service (credit) — — — — — — (1) — Total $ — $ — $ 1 $ — $ — $ — $ 1 $ 1 |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Summary of Net Sales by Region and Channel (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 890 | $ 1,011 | $ 1,805 | $ 1,981 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 174 | 190 | 352 | 363 |
Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 434 | 494 | 903 | 991 |
Asia | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 263 | 309 | 515 | 591 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 19 | 18 | 35 | 36 |
OEM | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 756 | 883 | 1,546 | 1,731 |
OEM | United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 119 | 142 | 245 | 265 |
OEM | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 378 | 437 | 796 | 883 |
OEM | Asia | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 245 | 292 | 481 | 559 |
OEM | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 14 | 12 | 24 | 24 |
Aftermarket | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 121 | 114 | 233 | 224 |
Aftermarket | United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 53 | 47 | 104 | 96 |
Aftermarket | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 49 | 48 | 92 | 91 |
Aftermarket | Asia | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 14 | 13 | 26 | 25 |
Aftermarket | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 5 | 6 | 11 | 12 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 13 | 14 | 26 | 26 |
Other | United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 2 | 1 | 3 | 2 |
Other | Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 7 | 9 | 15 | 17 |
Other | Asia | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 4 | 4 | 8 | 7 |
Other | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Change in Contract with Customer, Asset [Abstract] | ||
Contract assets—January 1 | $ 38 | $ 46 |
Change in contract assets—Increase/(Decrease) | 13 | 1 |
Contract assets—June 30 | 51 | 47 |
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities—January 1 | (11) | (8) |
Change in contract liabilities—Decrease/(Increase) | (3) | (1) |
Contract liabilities—June 30 | $ (14) | $ (9) |
Research, Development and Eng_3
Research, Development and Engineering (Details) - Cost of goods sold - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Research, development & engineering expense, total | $ 41 | $ 42 | $ 85 | $ 81 |
Research and development costs | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Research, development & engineering expense, total | 46 | 46 | 89 | 86 |
Engineering-related expenses, net of customer (reimbursements) | ||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||
Research, development & engineering expense, total | (5) | (4) | (4) | (5) |
Customer reimbursement | $ 16 | $ 13 | $ 24 | $ 24 |
Research, Development and Eng_4
Research, Development and Engineering - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Research and Development [Abstract] | ||
Preproduction costs related to long-term supply arrangements, costs capitalized | $ 22 | $ 12 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense | $ 23 | $ 30 | $ 38 | $ 57 |
Effective tax rate | 26.40% | 29.70% | 22.60% | 27.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 26.40% | 29.70% | 22.60% | 27.30% |
Accounts, Notes and Other Rec_3
Accounts, Notes and Other Receivables-Net - Schedule of Accounts, Notes and Other Receivables-Net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Trade receivables | $ 568 | $ 614 |
Notes receivable | 91 | 101 |
Other receivables | 84 | 99 |
Accounts, notes and other receivables, gross | 743 | 814 |
Less—Allowance for expected credit losses | (7) | (6) |
Accounts, notes and other receivables, net | $ 736 | $ 808 |
Accounts, Notes and Other Rec_4
Accounts, Notes and Other Receivables-Net - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Unbilled balances | $ 51 | $ 38 |
Value added tax (VAT) receivable | $ 62 | $ 78 |
Factoring and Notes Receivabl_2
Factoring and Notes Receivable - Disclosure of Detailed Information about Trade Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||||
Eligible receivables sold without recourse | $ 240 | $ 218 | $ 402 | $ 400 |
Guaranteed bank notes sold without recourse | $ 52 | $ 0 | $ 52 | $ 0 |
Factoring and Notes Receivabl_3
Factoring and Notes Receivable - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||||
Factoring and notes receivables discount fees | $ 1 | $ 0 | $ 2 | $ 0 |
Factoring and Notes Receivabl_4
Factoring and Notes Receivable - Disclosure of Detailed Information about Guaranteed Bank Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||
Receivables sold but not yet collected by the bank from the customer | $ 63 | $ 7 |
Guaranteed bank notes sold but not yet collected by the bank from the customer | $ 0 | $ 0 |
Inventories-Net (Details)
Inventories-Net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 194 | $ 198 |
Work in process | 20 | 21 |
Finished products | 99 | 85 |
Inventories, gross | 313 | 304 |
Less—Reserves | (41) | (41) |
Inventories, net | $ 272 | $ 263 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Advanced discounts to customers, non-current | $ 36 | $ 41 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total other assets | Total other assets |
Operating right-of-use assets (Note 13) | $ 45 | $ 40 |
Income tax receivable | 20 | 20 |
Pension and other employee related | 11 | 11 |
Derivatives designated as net investment hedges | 57 | 37 |
Designated and undesignated derivatives | 19 | 46 |
Other | 8 | 11 |
Total other assets | $ 196 | $ 206 |
Supplier Financing - Narrative
Supplier Financing - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 institution | |
Supply Commitment [Line Items] | |
Number of third party financial institutions | 2 |
Guaranteed bank notes outstanding | |
Supply Commitment [Line Items] | |
Supplier finance program, payment timing, period | 6 months |
Supplier Financing (Details)
Supplier Financing (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Supplier financing obligations outstanding with financial institutions | ||
Supply Commitment [Line Items] | ||
Supplier finance program, obligation | $ 63 | $ 68 |
Guaranteed bank notes outstanding | ||
Supply Commitment [Line Items] | ||
Supplier finance program, obligation | $ 177 | $ 193 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Customer pricing reserve | $ 83 | $ 57 |
Compensation, benefit and other employee related | 65 | 80 |
Repositioning | 9 | 9 |
Product warranties and performance guarantees - short-term (Note 19) | 16 | 18 |
Income and other taxes | 32 | 42 |
Customer advances and deferred income | 20 | 15 |
Accrued interest | $ 14 | $ 26 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities (Note 11) | Accrued liabilities (Note 11) |
Short-term lease liability (Note 13) | $ 9 | $ 9 |
Accrued freight | 8 | 9 |
Designated and undesignated derivatives | 10 | 12 |
Other (primarily operating expenses) | 17 | 16 |
Accrued liabilities (Note 11) | 283 | 293 |
Contract liabilities | 14 | 9 |
Accrued environmental liability | $ 4 | $ 5 |
Accrued Liabilities - Summary_2
Accrued Liabilities - Summary of Expenses Related to the Repositioning Accruals (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 9 | $ 9 |
Charges | 12 | 9 |
Usage—cash | (12) | (4) |
Non-cash asset write-offs | (2) | |
Balance at end of period | 9 | 12 |
Severance Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 9 | 9 |
Charges | 12 | 7 |
Usage—cash | (12) | (4) |
Non-cash asset write-offs | 0 | |
Balance at end of period | 9 | 12 |
Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Charges | 0 | 2 |
Usage—cash | 0 | 0 |
Non-cash asset write-offs | (2) | |
Balance at end of period | $ 0 | $ 0 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Income taxes | $ 96 | $ 99 |
Designated and undesignated derivatives | 0 | 20 |
Pension and other employee related | $ 20 | $ 23 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total other liabilities | Total other liabilities |
Long-term lease liability (Note 13) | $ 37 | $ 33 |
Advanced discounts from suppliers | 3 | 3 |
Product warranties and performance guarantees – long-term (Note 19) | 9 | 9 |
Environmental remediation – long term | 12 | 13 |
Long-term accounts payable | 5 | 7 |
Other | 9 | 11 |
Total other liabilities | $ 191 | $ 218 |
Leases - Additional Information
Leases - Additional Information (Details) - Maximum | 6 Months Ended |
Jun. 30, 2024 | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining lease terms | 15 years |
Operating lease, options to extend, years | 2 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 4 | $ 4 | $ 7 | $ 8 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash outflows from operating leases | $ 3 | $ 3 | $ 6 | $ 7 |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ 3 | $ 2 | $ 9 | $ 2 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets (Note 9) | Other assets (Note 9) |
Other assets | $ 45 | $ 40 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities (Note 11) | Accrued liabilities (Note 11) |
Accrued liabilities | $ 9 | $ 9 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities (Note 12) | Other liabilities (Note 12) |
Other liabilities | $ 37 | $ 33 |
Weighted-average remaining lease term (in years) | 7 years 5 months 8 days | 8 years 29 days |
Weighted-average discount rate | 5.98% | 5.69% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 8 |
2025 | 10 |
2026 | 9 |
2027 | 8 |
2028 | 6 |
Thereafter | 17 |
Total lease payments | 58 |
Less imputed interest | (12) |
Operating lease, liabilities | $ 46 |
Long-term Debt and Credit Agr_3
Long-term Debt and Credit Agreements - Additional Information (Details) € in Millions | 3 Months Ended | 6 Months Ended | ||||||||
May 21, 2024 EUR (€) | May 21, 2024 USD ($) | Apr. 30, 2021 EUR (€) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | May 21, 2024 USD ($) | Dec. 31, 2023 USD ($) | Sep. 14, 2022 USD ($) | Apr. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs, gross | $ 25,000,000 | $ 25,000,000 | $ 46,000,000 | |||||||
ABR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate at option | 0% | |||||||||
2023 Dollar Term Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt, interest rate | 4.50% | 4.50% | ||||||||
Revolving Credit Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate at option | 1% | |||||||||
Unused commitment fee percentage | 0.25% | |||||||||
Revolving Credit Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused commitment fee percentage | 0.50% | |||||||||
Revolving Credit Facility | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum borrowing capacity | $ 125,000,000 | $ 125,000,000 | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit | 12,000,000 | 12,000,000 | ||||||||
Line of credit, available borrowing capacity | $ 3,000,000 | $ 3,000,000 | ||||||||
Line of credit, current borrowing capacity | $ 15,000,000 | |||||||||
Senior Notes due 2032 | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | € | € 800 | |||||||||
Long term debt, interest rate | 7.75% | 7.75% | 7.75% | 7.75% | ||||||
Debt issuance costs, gross | $ 12,000,000 | |||||||||
Repurchase price of aggregate principal amount (in percentage) | 101% | 101% | ||||||||
Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 30,000,000 | $ 30,000,000 | ||||||||
Aggregate commitment percentage | 35% | |||||||||
Credit Agreement | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Consolidated total leverage ratio | 4.7 | |||||||||
Credit Agreement | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit | 0 | $ 0 | ||||||||
Line of credit, available borrowing capacity | 600,000,000 | 600,000,000 | ||||||||
Credit Agreement | Undrawn Letters of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit | 0 | $ 0 | ||||||||
Credit Agreement | Secured debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of lines of credit | € | € 800 | |||||||||
Deferred debt issuance costs, writeoff | $ 27,000,000 | |||||||||
Credit Agreement | Secured debt | Euro Term Loan Facility And Dollar Term Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of lines of credit | € | € 985 | |||||||||
Credit Agreement | Secured debt | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum borrowing capacity | $ 600,000,000 | |||||||||
Line of credit facility, increase (decrease) to borrowing capacity | $ 30,000,000 | |||||||||
Credit Agreement, USD tranche | Secured debt | Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, term | 7 years | |||||||||
Line of credit, maximum borrowing capacity | $ 715,000,000 | |||||||||
Credit Agreement, USD tranche | Secured debt | 2023 Dollar Term Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, term | 7 years | |||||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | |||||||||
Credit Agreement, EUR tranche | Secured debt | Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, term | 5 years | |||||||||
Line of credit, maximum borrowing capacity | € | € 450 | |||||||||
U.S. Dollar Term Loan Facility | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate at option | 2.75% | |||||||||
U.S. Dollar Term Loan Facility | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate at option | 0.50% | |||||||||
U.S. Dollar Term Loan Facility | ABR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate at option | 1.75% | |||||||||
U.S. Dollar Term Loan Facility | ABR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate at option | 1.50% |
Long-term Debt and Credit Agr_4
Long-term Debt and Credit Agreements - Schedule of Principal Outstanding And Carrying Amount of Long term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | May 21, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Total debt payments | $ 1,497 | $ 1,696 | |
Less: unamortized deferred financing costs | (25) | (46) | |
Less: current portion of long-term debt | (7) | (7) | |
Long-term debt (Note 14) | 1,465 | 1,643 | |
Other | |||
Debt Instrument [Line Items] | |||
Total debt payments | $ 2 | 0 | |
Unsecured Debt | Senior Notes due 2032 | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 7.75% | 7.75% | |
Total debt payments | $ 800 | 0 | |
Less: unamortized deferred financing costs | $ (12) | ||
2021 Dollar Term Facility | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 2.75% | ||
Total debt payments | $ 695 | 699 | |
2023 Dollar Term Facility | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 4.50% | ||
Total debt payments | $ 0 | 500 | |
Euro Term Facility | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 3.50% | ||
Total debt payments | $ 0 | $ 497 |
Long-term Debt and Credit Agr_5
Long-term Debt and Credit Agreements - Schedule of maturities of long-term debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 | $ 4 | |
2025 | 7 | |
2026 | 7 | |
2027 | 7 | |
2028 | 672 | |
Thereafter | 800 | |
Total debt payments | $ 1,497 | $ 1,696 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Feb. 12, 2024 | |
Equity [Abstract] | ||||
Stock repurchase program, authorized amount | $ 350 | |||
Stock repurchases | $ 65 | $ 109 | $ 174 | |
Stock repurchase program, remaining authorized repurchase amount | $ 176 | $ 176 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measures - Additional Information (Details) € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | $ 1,165,000,000 | $ 1,165,000,000 | $ 1,171,000,000 | |||||
Changes in fair value of effective cash flow hedges, net of tax (Note 16) | (2,000,000) | $ 2,000,000 | 1,000,000 | $ (1,000,000) | ||||
Changes in fair value of net investment hedges, net of tax (Note 16) | 8,000,000 | $ 3,000,000 | 27,000,000 | $ (2,000,000) | ||||
Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 3,161,000,000 | 3,161,000,000 | 3,303,000,000 | |||||
Designated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 1,907,000,000 | 1,907,000,000 | 1,671,000,000 | |||||
Undesignated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 1,254,000,000 | 1,254,000,000 | 1,632,000,000 | |||||
Interest rate swap | Designated as hedging | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | € | € 200 | |||||||
Interest rate swap | Designated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 0 | 0 | 200,000,000 | |||||
Interest rate swap | Undesignated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 481,000,000 | 481,000,000 | 450 | 917,000,000 | € 830 | |||
Forward currency exchange contracts | Designated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 392,000,000 | $ 392,000,000 | 456,000,000 | |||||
Maximum remaining maturity of foreign currency derivatives | 18 months | |||||||
Forward currency exchange contracts | Undesignated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | $ 773,000,000 | $ 773,000,000 | 715,000,000 | |||||
Maximum remaining maturity of foreign currency derivatives | 3 months | |||||||
Cross-currency interest rate swaps | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Fair value of derivative assets, net | $ 57,000,000 | 57,000,000 | 37,000,000 | |||||
Ineffectiveness on net investment hedges | 0 | |||||||
Cross-currency interest rate swaps | Net Investment Hedging | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 965,000,000 | 965,000,000 | 858 | 715,000,000 | € 615 | |||
Derivative, cash received on hedge | $ 13,000,000 | |||||||
Cross-currency interest rate swaps | Senior Notes due 2032 | Cash Flow Hedging | Unsecured Debt | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 550,000,000 | 550,000,000 | 507 | |||||
Cross-currency interest rate swaps | 2023 Dollar Term Facility | Credit Agreement, USD tranche | Cash Flow Hedging | Secured debt | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | 300,000,000 | 300,000,000 | € 280 | |||||
Cross-currency interest rate swaps | 2023 Dollar Term Facility | Credit Agreement, USD tranche | Cash Flow Hedging | Secured debt | Interest Expense | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Gain (loss) on derivative instruments, net, pretax | 18,000,000 | |||||||
Cross-currency interest rate swaps | 2023 Dollar Term Facility | Credit Agreement, USD tranche | Cash Flow Hedging | Secured debt | Nonoperating Income (Expense) | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Gain (loss) on derivative instruments, net, pretax | (4,000,000) | |||||||
Cross-currency interest rate swaps | Designated as hedging | Level 2 | Fair value measurements recurring | ||||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||||
Derivative, aggregate gross notional amount | $ 1,515,000,000 | $ 1,515,000,000 | $ 1,015,000,000 |
Financial Instruments and Fai_4
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 | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notional Amounts | $ 1,165 | $ 1,171 | ||
Designated as hedging | Interest rate swap | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notional Amounts | € | € 200 | |||
Fair value measurements recurring | Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notional Amounts | 3,161 | 3,303 | ||
Fair value, assets | 89 | 95 | ||
Fair value, liabilities | 10 | 32 | ||
Fair value measurements recurring | Level 2 | Designated as hedging | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notional Amounts | 1,907 | 1,671 | ||
Fair value, assets | 64 | 48 | ||
Fair value, liabilities | 8 | 23 | ||
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 | 392 | 456 | ||
Fair value, assets | 7 | 11 | ||
Fair value, liabilities | 8 | 6 | ||
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 | 1,515 | 1,015 | ||
Fair value, assets | 57 | 37 | ||
Fair value, liabilities | 0 | 17 | ||
Fair value measurements recurring | Level 2 | Designated as hedging | Interest rate swap | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notional Amounts | 0 | 200 | ||
Fair value, assets | 0 | 0 | ||
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 | 1,254 | 1,632 | ||
Fair value, assets | 25 | 47 | ||
Fair value, liabilities | 2 | 9 | ||
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 | 773 | 715 | ||
Fair value, assets | 6 | 1 | ||
Fair value, liabilities | 2 | 6 | ||
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 | 481 | € 450 | 917 | € 830 |
Fair value, assets | 19 | 46 | ||
Fair value, liabilities | $ 0 | $ 3 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Value | Unsecured Debt | Senior Notes due 2032 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term Loan Facilities | $ 789 | $ 0 |
Carrying Value | Secured debt | Credit Agreement, USD tranche | Term Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term Loan Facilities | 682 | 1,650 |
Level 2 | Fair Value | Unsecured Debt | Senior Notes due 2032 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term Loan Facilities | 812 | 0 |
Level 2 | Fair Value | Secured debt | Credit Agreement, USD tranche | Term Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term Loan Facilities | $ 696 | $ 1,692 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (735) | $ (80) | $ (735) | $ (116) |
Ending balance | (725) | (623) | (725) | (623) |
Foreign Exchange Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (39) | (42) | (57) | (44) |
Other comprehensive income (loss) before reclassifications | 5 | (8) | 23 | (6) |
Amounts reclassified from AOCI, net | (5) | 0 | (5) | 0 |
Ending balance | (39) | (50) | (39) | (50) |
Pension Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (19) | (18) | (20) | (18) |
Other comprehensive income (loss) before reclassifications | 2 | 0 | 3 | 0 |
Ending balance | (17) | (18) | (17) | (18) |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | 0 |
Changes in Fair Value of Effective Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1 | 10 | (2) | 13 |
Other comprehensive income (loss) before reclassifications | 6 | 9 | 18 | 14 |
Amounts reclassified from AOCI, net | (8) | (7) | (17) | (15) |
Ending balance | (1) | 12 | (1) | 12 |
Other comprehensive income (loss) before reclassifications, tax | 2 | 2 | 6 | 2 |
Changes in Fair Value of Net Investment Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 95 | 80 | 76 | 85 |
Other comprehensive income (loss) before reclassifications | 8 | 3 | 27 | (2) |
Ending balance | 103 | 83 | 103 | 83 |
Other comprehensive income (loss) before reclassifications, tax | 2 | (3) | 6 | (6) |
Accumulated Other Comprehensive Income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 38 | 30 | (3) | 36 |
Ending balance | $ 46 | $ 27 | $ 46 | $ 27 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Reclassification adjustments recognized in income | $ 27 | $ 0 | $ 27 | $ 0 | ||
Reclassification forward currency exchange contracts to Cost of goods sold | 705 | 809 | 1,448 | 1,590 | ||
Reclassification cross-currency swaps to Interest expense | 62 | 29 | 93 | 56 | ||
Tax expense | 23 | 30 | 38 | 57 | ||
Amounts reclassified from AOCI, net | (64) | $ (66) | (71) | $ (81) | (130) | (152) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Reclassification adjustments recognized in income | 5 | |||||
Amounts reclassified from AOCI, net | (13) | (7) | (22) | (15) | ||
Reclassification out of Accumulated Other Comprehensive Income | Changes in Fair Value of Effective Cash Flow Hedges | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Reclassification forward currency exchange contracts to Cost of goods sold | (2) | (6) | (4) | (15) | ||
Reclassification cross-currency swaps to Interest expense | 1 | 0 | (1) | 0 | ||
Reclassification cross-currency swaps to Non-operating (income) expense | (6) | 4 | (13) | 4 | ||
Tax expense | (1) | (5) | 1 | (4) | ||
Amounts reclassified from AOCI, net | (8) | (7) | (17) | (15) | ||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Translation Adjustment | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Reclassification adjustments recognized in income | 5 | 0 | 5 | 0 | ||
Amounts reclassified from AOCI, net | $ (5) | $ 0 | $ (5) | $ 0 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic earnings per share: | ||||||
Net income | $ 64 | $ 66 | $ 71 | $ 81 | $ 130 | $ 152 |
Less: preferred stock dividend | 0 | (40) | 0 | (80) | ||
Less: preferred stock deemed dividends | 0 | (232) | 0 | (232) | ||
Net income (loss) available to common shareholders | $ 64 | $ (201) | $ 130 | $ (160) | ||
Weighted average common shares outstanding - Basic (in shares) | 224,321,948 | 107,408,432 | 230,493,039 | 86,269,694 | ||
EPS – Basic (in USD per share) | $ 0.29 | $ (1.88) | $ 0.56 | $ (1.86) | ||
Diluted earnings per share: | ||||||
Weighted average common shares outstanding - Basic (in shares) | 224,321,948 | 107,408,432 | 230,493,039 | 86,269,694 | ||
Dilutive effect of unvested RSUs and other contingently issuable shares (in shares) | 1,576,866 | 0 | 1,962,044 | 0 | ||
Weighted average common shares outstanding - Diluted (in shares) | 225,898,814 | 107,408,432 | 232,455,083 | 86,269,694 | ||
EPS – Diluted (in USD per share) | $ 0.28 | $ (1.88) | $ 0.56 | $ (1.86) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares excluded from computation of diluted EPS (in shares) | 1,113,778 | 1,358,636 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Brazilian Tax Authorities | |
Loss Contingencies [Line Items] | |
Estimated amount of contingency including penalties and interest | $ 36 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary Information Concerning our Recorded Obligations for Product Warranties and Product Performance Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of year | $ 26 | $ 28 | $ 27 | $ 28 |
Accruals for warranties/guarantees issued during the period | 2 | 3 | 5 | 6 |
Settlement of warranty/guarantee claims | (3) | (4) | (6) | (7) |
Foreign currency translation | 0 | 0 | (1) | 0 |
Balance at end of year | $ 25 | $ 27 | $ 25 | $ 27 |
Pension Benefits - Additional I
Pension Benefits - Additional Information (Details) - Pension benefits - Foreign Plan $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected pension contribution in the next fiscal year | $ 7 |
Pension contribution | $ 3 |
Pension Benefits - Summary of N
Pension Benefits - Summary of Net Periodic Benefit Cost (Details) - Pension benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 2 | 2 | 4 | 4 |
Expected return on plan assets | (2) | (2) | (4) | (4) |
Amortization of prior service (credit) | 0 | 0 | 0 | 0 |
Net periodic (income) benefit costs | 0 | 0 | 0 | 0 |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 1 | 3 | 3 |
Interest cost | 1 | 1 | 3 | 2 |
Expected return on plan assets | (2) | (2) | (4) | (4) |
Amortization of prior service (credit) | 0 | 0 | (1) | 0 |
Net periodic (income) benefit costs | $ 1 | $ 0 | $ 1 | $ 1 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 24 Months Ended | |||
Apr. 03, 2024 USD ($) installment | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Apr. 03, 2027 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Equity method investment, amount sold | $ 58 | |||||
Proceeds from sale of equity investment | $ 46 | $ 46 | $ 0 | |||
Number of installments | installment | 2 | |||||
Deferred payments, sale of equity method investments, first payment term | 12 months | |||||
Deferred payments, sale of equity method investments, second payment term | 36 months | |||||
Gain (loss) on sale of equity investment | $ 27 | $ 0 | 27 | $ 0 | ||
Sales fee | 1 | |||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on sale of equity investment | $ 5 | |||||
Scenario Forecast | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of equity investment | $ 7 |