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RESEARCH AND DEVELOPMENT COSTS
 9 Months Ended
Sep. 30, 2021
Research and Development [Abstract]  
RESEARCH AND DEVELOPMENT COSTS RESEARCH AND DEVELOPMENT COSTS The Company’s net Research & Development (“R&D”) expenditures are included in selling, general and administrative expenses of the Condensed Consolidated Statements of Operations. Customer reimbursements are netted against gross R&D expenditures 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 contracts with several customers relating to R&D activities that the Company performs at the Company’s various R&D locations.
The following table presents the Company’s gross and net expenditures on R&D activities:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2021202020212020
Gross R&D expenditures$231 $115 $675 $336 
Customer reimbursements(47)(15)(142)(39)
Net R&D expenditures$184 $100 $533 $297 

During the three and nine months ended September 30, 2021, legacy Delphi Technologies had net R&D expenditures of $73 million and $205 million, respectively.