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DISCONTINUED OPERATIONS | 12 Months Ended
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Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The historical results of operations and the financial position of PHINIA for periods prior to the Spin-Off are presented as discontinued operations in these 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) | Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Net sales | $ | 1,723 |  |  | $ | 3,348 |  |  | $ | 3,227 |
Cost of sales | 1,362 |  |  | 2,616 |  |  | 2,545 |
Gross profit | 361 |  |  | 732 |  |  | 682 |
Selling, general and administrative expenses | 173 |  |  | 320 |  |  | 375 |
Restructuring expense | 7 |  |  | 11 |  |  | 55 |
Other operating expense, net | 132 |  |  | 36 |  |  | 15 |
Operating (loss) income | 49 |  |  | 365 |  |  | 237 |
Equity in affiliates’ earnings, net of tax | (5) |  |  | (10) |  |  | (6) |
Interest expense, net | — |  |  | 1 |  |  | 2 |
Other postretirement expense (income) | — |  |  | (31) |  |  | (38) |
Earnings from discontinued operations before income taxes | 54 |  |  | 405 |  |  | 279 |
Provision for income taxes | 61 |  |  | 97 |  |  | 85 |
Net (loss) earnings from discontinued operations attributable to PHINIA | $ | (7) |  |  | $ | 308 |  |  | $ | 194 |
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 are related to information technology, human resources, finance, facilities, procurement, sales, intellectual properties and engineering. The combined impact of these services is reported in results of continuing operations in the Consolidated Financial Statements. From the date of the Spin-Off through the year ended December 31, 2023, the Company provided services at a cost of $13 million to PHINIA, and PHINIA provided services at a cost of $3 million to the Company . The Company incurred $134 million and $30 million of costs relating to the Spin-Off during the year ended December 31, 2023 and 2022, respectively, which are reflected within Net (loss) earnings from discontinued operations in the Company’s 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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