DISCONTINUED OPERATIONS

3 Months Ended

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.