Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2025

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(Dollars in millions)
Foreign Exchange Translation Adjustment
Balance at beginning of period	$	(115)	$	(39)	$	(27)	$	(57)
Other comprehensive (loss) income before reclassifications	3		(30)		(85)		(7)
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications	—		—		—		—
Amounts reclassified from AOCI	—		—		—		(5)
Balance at end of period	(112)		(69)		(112)		(69)

Pension Adjustments
Balance at beginning of period	(15)		(17)		(15)		(20)
Other comprehensive income (loss) before reclassifications	—		1		—		4
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications	—		—		—		—

Balance at end of period	(15)		(16)		(15)		(16)

Changes in Fair Value of Effective Cash Flow Hedges
Balance at beginning of period	9		(1)		(10)		(2)
Other comprehensive (loss) income before reclassifications	5		(33)		51		(9)
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications	—		14		26		8
Amounts reclassified from AOCI	—		25		(60)		7
Income taxes associated with reclassifications from AOCI	—		(2)		7		(1)
Balance at end of period	14		3		14		3

Changes in Fair Value of Net Investment Hedges
Balance at beginning of period	(38)		103		125		76
Other comprehensive (loss) income before reclassifications	6		(35)		(171)		(2)
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications	(1)		4		13		(2)

Balance at end of period	(33)		72		(33)		72

Accumulated other comprehensive (loss) income, end of period	$	(146)	$	(10)	$	(146)	$	(10)

Reclassification out of accumulated other comprehensive income

Reclassifications from AOCI to income were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(Dollars in millions)
Foreign Exchange Translation Adjustment
Reclassification adjustments recognized in income (1)	$	—	$	—	$	—	$	(5)
Amounts reclassified from AOCI	—		—		—		(5)

Changes in Fair Value of Effective Cash Flow Hedges
Reclassification forward currency exchange contracts to Cost of goods sold	$	1	$	1	$	1	$	(3)
Reclassification cross-currency swaps to Interest expense	—		1		4		—
Reclassification cross-currency swaps to Non-operating (income) expense	(1)		23		(65)		10
Tax effect on reclassification to income	—		(2)		7		(1)
Amounts reclassified from AOCI, net	—		23		(53)		6

Total reclassifications for the period	$	—	$	23	$	(53)	$	1

(1) Cumulative translation losses reclassified to Net income related to the sale of an equity interest in an unconsolidated joint venture. See Note 22 for discussion.

Garrett Motion Inc. 10-Q