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DISCONTINUED OPERATIONS | 3 Months Ended
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Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The historical results of operations 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 financial results from discontinued operations of PHINIA.
(in millions) | Three Months Ended March 31, |  |
| 2024 |  | 2023 |  |  |  |
Net sales | $ | — |  |  | $ | 836 |  |  |  |  |
Cost of sales | — |  |  | 663 |  |  |  |  |
Gross profit | — |  |  | 173 |  |  |  |  |
Selling, general and administrative expenses | — |  |  | 85 |  |  |  |  |
Restructuring expense | — |  |  | 4 |  |  |  |  |
Other operating expense, net | 10 |  |  | 18 |  |  |  |  |
Operating (loss) income | (10) |  |  | 66 |  |  |  |  |
Equity in affiliates’ earnings, net of tax | — |  |  | (3) |  |  |  |  |
(Loss) earnings from discontinued operations before income taxes | (10) |  |  | 69 |  |  |  |  |
(Benefit) provision for income taxes | (3) |  |  | 20 |  |  |  |  |
Net (loss) earnings from discontinued operations attributable to PHINIA | $ | (7) |  |  | $ | 49 |  |  |  |  |
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 property and engineering. The combined impact of these services is reported in results of continuing operations in the Condensed Consolidated Financial Statements. During the three months ended March 31, 2024, the Company provided services at a cost of $4 million to PHINIA, and PHINIA provided services at a cost of $1 million to the Company. The Company incurred $10 million and $19 million of costs relating to the Spin-Off during the three months ended March 31, 2024 and 2023, respectively, which are reflected within Net (loss) earnings from discontinued operations in the Company’s 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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