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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONSThe historical results of operations and the financial position of PHINIA for periods prior to the Spin-Off are presented as discontinued operations in these Condensed Consolidated Financial Statements. The following table summarizes the assets and liabilities from discontinued operations of PHINIA.
(in millions) |  |  | December 31, 2022
ASSETS |  |  |
Cash, cash equivalents and restricted cash |  |  | $ | 255 |
Receivables, net |  |  | 852 |
Inventories, net |  |  | 470 |
Prepayments and other current assets |  |  | 39 |
Total current assets of discontinued operations |  |  | $ | 1,616 |
Property, plant and equipment, net |  |  | 939 |
Investments and long-term receivables |  |  | 77 |
Goodwill |  |  | 419 |
Other intangible assets, net |  |  | 432 |
Other non-current assets |  |  | 179 |
Total non-current assets of discontinued operations |  |  | $ | 2,046 |
LIABILITIES |  |  |
Notes payable and other short-term debt |  |  | $ | 2 |
Accounts payable |  |  | 538 |
Other current liabilities |  |  | 406 |
Total current liabilities of discontinued operations |  |  | $ | 946 |
Long-term debt |  |  | 26 |
Retirement-related liabilities |  |  | 94 |
Other non-current liabilities |  |  | 175 |
Total non-current liabilities of discontinued operations |  |  | $ | 295 |
The following table summarizes the financial results from discontinued operations of PHINIA.
(in millions) | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net sales | $ | — |  |  | $ | 857 |  |  | $ | 1,723 |  |  | $ | 2,496 |
Cost of sales | — |  |  | 658 |  |  | 1,362 |  |  | 1,958 |
Gross profit | — |  |  | 199 |  |  | 361 |  |  | 538 |
Selling, general and administrative expenses | — |  |  | 72 |  |  | 173 |  |  | 228 |
Restructuring expense | — |  |  | 3 |  |  | 7 |  |  | 8 |
Other operating expense, net | 52 |  |  | — |  |  | 117 |  |  | 33 |
Operating (loss) income | (52) |  |  | 124 |  |  | 64 |  |  | 269 |
Equity in affiliates’ earnings, net of tax | — |  |  | (5) |  |  | (5) |  |  | (8) |
Interest expense, net | — |  |  | — |  |  | — |  |  | 1 |
Other postretirement expense (income) | — |  |  | (7) |  |  | — |  |  | (24) |
Earnings from discontinued operations before income taxes | (52) |  |  | 136 |  |  | 69 |  |  | 300 |
Provision for income taxes | (15) |  |  | 36 |  |  | 81 |  |  | 75 |
Net (loss) earnings from discontinued operations attributable to PHINIA | $ | (37) |  |  | $ | 100 |  |  | $ | (12) |  |  | $ | 225 |
In connection with the Spin-Off, the Company entered into a transition services agreement through which the Company and PHINIA will continue to provide certain services to each other following the Spin-Off. These services include IT, HR, finance, facilities, procurement, sales, IP & engineering costs. The combined impact of these services is reported in results of continuing operations in the Condensed Consolidated Financial Statements. The Company provided $7 million to PHINIA, and PHINIA provided $2 million to the Company, for these services during the three months ended September 30, 2023. The Company incurred $52 million and $117 million of costs relating to the Spin-Off during the three and nine months ended September 30, 2023, respectively, that are reflected within Net (loss) earnings from discontinued operations in our Condensed Consolidated Statements of Operations. Spin-Off costs are primarily comprised of professional fees and costs to separate certain operational activities.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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