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RESEARCH AND DEVELOPMENT COSTS
 6 Months Ended
Jun. 30, 2025
Research and Development [Abstract]  
RESEARCH AND DEVELOPMENT COSTS RESEARCH AND DEVELOPMENT COSTS
The Company’s net Research & Development (R&D) costs are primarily included in Selling, general and administrative expenses of the Condensed Consolidated Statements of Operations. Customer reimbursements are netted against gross R&D costs as they are considered a recovery of cost. Customer reimbursements for prototypes are recorded net of prototype costs based on customer contracts, typically either when the prototype is shipped or when it is accepted by the customer. Customer reimbursements for engineering services are recorded when performance obligations are satisfied in accordance with the contract. Financial risks and rewards transfer upon shipment, acceptance of a prototype component by the customer or upon completion of the performance obligation as stated in the respective customer agreement. The Company has various customer arrangements relating to R&D activities that it performs at its various R&D locations.
The following table presents the Company’s gross and net costs on R&D activities:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Gross R&D costs$46 $52 $92 $104 
Customer reimbursements(16)(22)(34)(47)
Net R&D costs$30 $30 $58 $57 
Net R&D costs as a percentage of net sales were 3.4% for the three and six months ended June 30, 2025. Net R&D costs as a percentage of net sales were 3.5% and 3.3% for the three and six months ended June 30, 2024, respectively.