Research, Development & Engineering

3 Months Ended

Mar. 31, 2023

Note 4. Research, Development & Engineering

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


	Three Months Ended March 31,
		2023		2022
		(Dollars in millions)
Research and development costs		$	40	$	36
Engineering-related expenses (1)		(1)		6
		$	39	$	42

(1) Engineering-related expenses include customer reimbursements of $11 million and $3 million for the three months ended March 31, 2023 and 2022, respectively.