Leases

6 Months Ended

Jun. 30, 2025

Note 13. Leases

We have operating leases that primarily consist of real estate, machinery, and equipment. As of June 30, 2025, the Company does not have any material finance leases. Our leases have remaining lease terms of up to 13 years, some of which include options to extend the leases for up to two years, and some of which include options to terminate the leases within the year.

The components of lease expense are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(Dollars in millions)
Operating lease cost	$	5	$	4	$	9	$	7
Short-term lease cost	1		—		1		—
Total lease cost	$	6	$	4	$	10	$	7

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4	$	3	$	8	$	6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	2		3		4		9

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


	June 30, 2025		December 31, 2024
	(Dollars in millions)
Other assets	$	54	$	52
Accrued liabilities	13		11
Other liabilities	43		42


	June 30, 2025		December 31, 2024
Weighted-average remaining lease term (in years)	6.64		6.89
Weighted-average discount rate	6.53	%	6.71	%

Maturities of operating lease liabilities as of June 30, 2025 were as follows:


	(Dollars in millions)
2025	$	9
2026	14
2027	12
2028	8
2029	5
Thereafter	18
Total lease payments	66
Less imputed interest	(10)
	$	56

Garrett Motion Inc. 10-Q