PHINIA (PHIN) 10-Q 7 Aug 23 2023 Q2 Quarterly report Financial data

COVER

COVER - shares	6 Months Ended
	Jun. 30, 2023	Aug. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-41708
Entity Registrant Name	PHINIA INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	92-2483604
Entity Address, Address Line One	3000 University Drive
Entity Address, City or Town	Auburn Hills,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48326
City Area Code	(248)
Local Phone Number	732-1900
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PHIN
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,013,661
Entity Central Index Key	0001968915
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

CONDENSED COMBINED BALANCE SHEE

CONDENSED COMBINED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash, cash equivalents and restricted cash	$ 213	$ 251
Inventories	518	459
Prepayments and other current assets	48	40
Total current assets	1,670	1,641
Property, plant and equipment, net	901	924
Investments and long-term receivables	92	117
Goodwill	490	490
Other intangible assets, net	421	432
Other non-current assets	249	262
Total assets	3,869	4,074
LIABILITIES AND EQUITY
Other current liabilities	370	385
Total current liabilities	947	1,170
Retirement-related liabilities	83	79
Other non-current liabilities	179	197
Total liabilities	1,877	2,431
Commitments and contingencies (Note 18)
BorgWarner investment	2,053	1,731
Accumulated other comprehensive loss	(61)	(88)
Total equity	1,992	1,643
Total liabilities and equity	3,869	4,074
Related Party
ASSETS
Receivables, net	64	142
Due from BorgWarner, non-current	46	208
LIABILITIES AND EQUITY
Accounts payable	99	285
Long-term debt	643	957
Nonrelated Party
ASSETS
Receivables, net	827	749
LIABILITIES AND EQUITY
Accounts payable	478	500
Long-term debt	$ 25	$ 28

CONDENSED COMBINED STATEMENTS O

CONDENSED COMBINED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 887	$ 796	$ 1,722	$ 1,638
Cost of sales	698		1,361
Gross profit	189	158	361	332
Selling, general and administrative expenses	103		202
Other operating expense, net	30	8	45	11
Operating income	56	49	114	120
Equity in affiliates’ earnings, net of tax	(3)	(1)	(6)	(3)
Interest expense, net	4	4	7	8
Other postretirement income	(1)	(8)	(1)	(17)
Earnings before income taxes	56	54	114	132
Provision for income taxes	21	13	44	34
Net earnings	$ 35	$ 41	$ 70	$ 98

CONDENSED COMBINED STATEMENTS_2

CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions		3 Months Ended				6 Months Ended
		Jun. 30, 2023		Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net earnings		$ 35		$ 41		$ 70	$ 98
Other comprehensive income (loss)
Foreign currency translation adjustments	[1]	10		(84)		30	(87)
Defined benefit pension plans	[1]	0		(6)		(1)	(7)
Hedge instruments		(4)	[1]	2	[1]	(2)
Other comprehensive income (loss)		6		(88)		27	(93)
Comprehensive income (loss)		$ 41		$ (47)		$ 97	$ 5
[1]Net of income taxes.

CONDENSED COMBINED STATEMENTS_3

CONDENSED COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING
Net earnings	$ 70	$ 98
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and tooling amortization	70	73
Intangible asset amortization	14	14
Restructuring expense, net of cash paid	2	3
Asset impairments	0	5
Stock-based compensation expense	4	5
Deferred Income Taxes and Tax Credits	8	0
Other non-cash adjustments, net	4	(4)
Adjustments to reconcile net earnings to net cash provided by operating activities	172	194
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Inventories	(52)	(71)
Prepayments and other current assets	(10)	3
Prepaid taxes and income taxes payable	29	6
Other assets and liabilities	(26)	(28)
Net cash provided by operating activities	33	77
INVESTING
Capital expenditures, including tooling outlays	(80)	(60)
Payments for investment in equity securities	(2)	(1)
Proceeds from asset disposals and other, net	2	3
Net cash used in investing activities	(80)	(58)
FINANCING
Purchase of noncontrolling interest	0	(3)
Net transfers from (to) BorgWarner	58	(3)
Net cash used in financing activities	0	(103)
Effect of exchange rate changes on cash	9	(6)
Net decrease in cash and cash equivalents	(38)	(90)
Cash and cash equivalents at beginning of year	251	259
Cash and cash equivalents at end of period	213	169
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes, net of refunds	18	28
Non-cash investing transactions:
Period end accounts payable related to property, plant, and equipment purchases	30	26
Nonrelated Party
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Increase (decrease) in receivables	(71)	(65)
Accounts payable and other current liabilities	(13)	33
SUPPLEMENTAL CASH FLOW INFORMATION
Interest, net	(1)	(2)
Related Party
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Increase (decrease) in receivables	7	3
Accounts payable and other current liabilities	(3)	2
FINANCING
Cash outflows related to debt due to/from BorgWarner	(94)	(117)
Cash inflows related to debt due to/from BorgWarner	36	20
Net transfers from (to) BorgWarner	$ 58	$ (3)

INTRODUCTION AND TRANSITION TO

INTRODUCTION AND TRANSITION TO STANDALONE COMPANY	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTRODUCTION AND TRANSITION TO STANDALONE COMPANY	INTRODUCTION The accompanying Condensed Combined Financial Statements and notes present the condensed combined statements of operations, balance sheets, and cash flows of the Fuel Systems and Aftermarket businesses of BorgWarner Inc. (“PHINIA” or the “Company”). PHINIA is a leader in the development, design and manufacture of integrated components and systems that optimize performance, increase efficiency and reduce emissions in combustion and hybrid propulsion for commercial vehicles and industrial applications (medium-duty and heavy-duty trucks, buses and other off-highway construction, marine, agricultural and industrial applications) and light vehicles (passenger cars, trucks, vans and sport-utility vehicles). The Company is a global supplier to most major original equipment manufacturers (“OEMs”) seeking to meet and exceed increasingly stringent global regulatory requirements and satisfy consumer demands for an enhanced user experience. Additionally, the Company offers a wide range of original equipment service (“OES”) solutions and remanufactured products as well as an expanded range of products for the independent (non-OEM) aftermarket. Transition to Standalone Company On December 6, 2022, BorgWarner Inc. (“BorgWarner”) announced plans for the complete legal and structural separation of BorgWarner’s Fuel Systems and Aftermarket businesses from BorgWarner by the spin-off of its wholly-owned subsidiary, PHINIA Inc., which was formed on February 9, 2023 and holds BorgWarner’s Fuel Systems and Aftermarket businesses (the “Spin-Off”).

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying Condensed Combined Financial Statements and notes present the combined results of operations, financial positions, and cash flows of the Fuel Systems and Aftermarket businesses of BorgWarner for the periods presented on a “carve-out basis” and as historically operated by BorgWarner. The Condensed Combined Financial Statements have been derived from the Consolidated Financial Statements and accounting records of BorgWarner using the historical results of operations and historical basis of assets and liabilities of the Company on a “carve-out basis” and reflect BorgWarner’s net investment in the Company. The Company’s Condensed Combined Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flow activity required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair statement of results have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet as of December 31, 2022 was derived from the audited financial statements as of that date. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and accompanying notes, as well as amounts of revenues and expenses reported during the periods covered by those financial statements and accompanying notes. The Condensed Combined Financial Statements may not be indicative of the Company’s future performance and do not necessarily reflect what the financial position, results of operations, and cash flows would have been had it operated as a standalone company during the periods presented. The Condensed Combined Statements of Operations include all revenues and costs directly attributable to the Company, including costs for facilities, functions, and services utilized. Costs for certain centralized functions and programs provided and administered by BorgWarner are charged directly to the Company. These centralized functions and programs include, but are not limited to research and development and information technology. A portion of BorgWarner’s total corporate expenses have been allocated to the Company for services rendered by BorgWarner. These expenses include the cost of corporate functions and resources, including, but not limited to, executive management, finance, accounting, legal, human resources, research and development and sales. Additionally, a portion of the Company’s corporate expenses have been allocated to BorgWarner for charges incurred related to subsidiaries of BorgWarner historically supported by the Company, primarily related to information technology. These expenses were allocated based on direct usage when identifiable or, when not directly identifiable, on the basis of proportional net revenues, legal entities, headcount or weighted-square footage, as applicable. The Company considers the basis on which the expenses have been allocated to reasonably reflect the utilization of services provided to, or the benefit received by, both the Company and BorgWarner during the periods presented. However, the allocations may not reflect the expenses the Company would have incurred if the Company had been a standalone company for the periods presented. For the three and six months ended June 30, 2023 net corporate allocation expenses totaled $54 million and $89 million, respectively, For the three and six months ended June 30, 2022 net corporate allocation expenses totaled $39 million and $69 million, respectively. Corporate allocation expenses were primarily included in selling, general and administrative expenses. In addition to the allocations above, the Company provides application testing and other research and development services for other BorgWarner businesses. For the three and six months ended June 30, 2023, income related to these activities of $1 million and $2 million, respectively, have been included in Other operating expense, net in the Condensed Combined Statements of Operations. For the three and six months ended June 30, 2022, income related to these activities of $4 million and $6 million, respectively, have been included in Other operating expense, net in the Condensed Combined Statements of Operations. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, including the organizational structure, whether functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. Going forward, the Company may perform these functions using its own resources. BorgWarner utilized several centralized approaches to cash management and financing of its operations. The cash and cash equivalents held by BorgWarner are not specifically identifiable to the Company and therefore have not been reflected in the Company’s Condensed Combined Balance Sheets. Alternatively, the cash and cash equivalents held by the Company, and used to fund the underlying operations of PHINIA, have been reflected in the Company’s Condensed Combined Balance Sheets. Separately, the Company and BorgWarner participated in various cash pooling arrangements to manage liquidity and fund operations. Any balances owed to the Company from BorgWarner as a result of these cash arrangements that were anticipated to be settled in cash are reflected as Due from BorgWarner. Any balances due from the Company to BorgWarner as a result of these cash arrangements that were anticipated to be settled in cash are reflected as Due to BorgWarner. Certain other cash pooling balances that were not anticipated to be settled in cash are presented within BorgWarner Investment in the Condensed Combined Financial Statements. The Condensed Combined Financial Statements include certain assets and liabilities that have been determined to be attributable to the Company, including certain assets and liabilities that were historically held at the corporate level in BorgWarner. BorgWarner’s third-party long-term debt and the related interest expense have not been allocated to the Company for any of the periods presented because the Company was not the legal obligor of such debt. Any long-term debt specifically attributed to the Company has been reflected in the Condensed Combined Balance Sheets. Because a direct ownership relationship did not exist in the Company, a BorgWarner investment is shown in lieu of stockholders’ equity in the Condensed Combined Financial Statements. All intercompany transactions within the Company have been eliminated. All transactions between the Company and BorgWarner have been included in these Condensed Combined Financial Statements. The total net effect of the settlement of the transactions between the Company and BorgWarner, exclusive of those historically settled in cash, is reflected in the Condensed Combined Statements of Cash Flows in Cash flows from financing activities as Net transfers from (to) BorgWarner and in the Condensed Combined Balance Sheets as BorgWarner investment. For those transactions between the Company and BorgWarner that were historically settled in cash, the Company has reflected such balances in the Condensed Combined Balance Sheets as Due from BorgWarner or Due to BorgWarner. Intercompany loans between the Company and BorgWarner have also been included within the Condensed Combined Balance Sheets as Due from BorgWarner and Due to BorgWarner. Refer to Note 19, “Related-Party Transactions,” for further information regarding these balances.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	REVENUE FROM CONTRACTS WITH CUSTOMERS The Company manufactures and sells products, primarily to OEMs of commercial vehicle industrial applications and light vehicles, to certain tier one vehicle systems suppliers and into the aftermarket. The Company’s payment terms are based on customary business practices and vary by customer type and products offered. The Company has evaluated the terms of its arrangements and determined that they do not contain significant financing components. Generally, revenue is recognized upon shipment or delivery; however, a limited number of the Company’s customer arrangements for its highly customized products with no alternative use provide the Company with the right to payment during the production process. As a result, for these limited arrangements, revenue is recognized as goods are produced and control transfers to the customer using the input cost-to-cost method. The Company recorded a contract asset of $2 million at both June 30, 2023 and December 31, 2022 for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company’s Condensed Combined Balance Sheets. In limited instances, certain customers have provided payments in advance of receiving related products, typically at the onset of an arrangement prior to the beginning of production. These contract liabilities are reflected as Other current liabilities in the Condensed Combined Balance Sheets and were $3 million at December 31, 2022. There was no balance at June 30, 2023. These amounts are reflected as revenue over the term of the arrangement (typically 3 to 7 years) as the underlying products are shipped and represent the Company’s remaining performance obligations as of the end of the period. The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the three and six months ended June 30, 2023 and 2022. Refer to Note 20, “Reportable Segments And Related Information to the Condensed Combined Financial Statements,” for more information. Three months ended June 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 171 $ 200 $ 371 Europe 256 116 372 Asia 124 20 144 Total $ 551 $ 336 $ 887 Three months ended June 30, 2022 (In millions) Fuel Systems Aftermarket Total Americas $ 129 $ 205 $ 334 Europe 225 102 327 Asia 119 16 135 Total $ 473 $ 323 $ 796 Six months ended June 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 338 $ 398 $ 736 Europe 479 228 707 Asia 243 36 279 Total $ 1,060 $ 662 $ 1,722 Six months ended June 30, 2022 (In millions) Fuel Systems Aftermarket Total Americas $ 266 $ 397 $ 663 Europe 470 200 670 Asia 275 30 305 Total $ 1,011 $ 627 $ 1,638

RESTRUCTURING

RESTRUCTURING	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING The Company’s restructuring expenditures are primarily included in Other operating expense, net of the Condensed Combined Statements of Operations. The Company’s restructuring activities are undertaken as necessary to execute management’s strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company’s business and to relocate operations to best-cost locations. The Company’s restructuring expenses consist primarily of employee termination benefits (principally severance and/or other termination benefits) and other costs, which are primarily professional fees and costs related to equipment moves. The following table displays a roll forward of the restructuring liability recorded within the Company’s Condensed Combined Balance Sheets and the related cash flow activity: (in millions) Employee termination benefits Other Total Balance at January 1, 2023 $ 20 $ — $ 20 Restructuring expense, net 5 1 6 Cash payments (12) (1) (13) Balance at June 30, 2023 13 — 13 Less: Non-current restructuring liability (2) — (2) Current restructuring liability at June 30, 2023 $ 11 $ — $ 11 (in millions) Employee termination benefits Other Total Balance at January 1, 2022 $ 60 $ — $ 60 Restructuring expense, net 2 3 5 Cash payments (31) (2) (33) Foreign currency translation adjustment and other (2) — (2) Balance at June 30, 2022 29 1 30 Less: Non-current restructuring liability (8) — (8) Current restructuring liability at June 30, 2022 $ 21 $ 1 $ 22 During the three and six months ended June 30, 2023, the Company recorded $2 million and $6 million, respectively, of restructuring costs for individually approved restructuring actions that primarily related to reductions in headcount in the Fuel Systems segment. In 2019, the Company announced a restructuring plan to reshape and realign its global technical center footprint and reduce salaried and contract staff. The Company recorded charges of $5 million during the six months ended June 30, 2022, primarily related to employee severance and equipment moves in the Fuel Systems segment. The actions under this program are complete. Estimates of restructuring expense are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals. The Company continues to evaluate different options across its operations to reduce existing structural costs. The Company will recognize restructuring expense associated with any future actions at the time they are approved and become probable or are incurred. Any future actions could result in significant restructuring expense.

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS	6 Months Ended
	Jun. 30, 2023
Research and Development [Abstract]
RESEARCH AND DEVELOPMENT COSTS	RESEARCH AND DEVELOPMENT COSTSThe Company’s net research & development (“R&D”) expenditures are primarily included in Selling, general and administrative expenses of the Condensed Combined 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 various customer arrangements relating to R&D activities that it performs at its various R&D locations. The following table presents the Company’s gross and net expenditures on R&D activities: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Gross R&D expenditures $ 49 $ 51 $ 98 $ 102 Customer reimbursements (21) (22) (41) (48) Net R&D expenditures $ 28 $ 29 $ 57 $ 54

OTHER OPERATING EXPENSE, NET

OTHER OPERATING EXPENSE, NET	6 Months Ended
	Jun. 30, 2023
Other Income and Expenses [Abstract]
OTHER OPERATING EXPENSE, NET	OTHER OPERATING EXPENSE, NET Items included in Other operating expense, net consist of: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Merger, acquisition and divestiture expense $ 41 $ 12 $ 59 $ 22 Related-party royalty income (12) (6) (17) (13) Related-party R&D income (1) (4) (2) (6) Asset impairment — 5 — 5 Restructuring 2 3 6 5 Other income, net — (2) (1) (2) Other operating expense, net $ 30 $ 8 $ 45 $ 11 Merger and acquisition expense: During the three and six months ended June 30, 2023, the Company recorded merger, acquisition and divestiture expense of $41 million and $59 million, respectively, primarily related to professional fees associated with the intended separation of the Company. During the three and six months ended June 30, 2022, the Company recorded merger, acquisition and divestiture expense of $12 million and $22 million, respectively, primarily related to professional fees associated with the intended separation of the Company. Related-party royalty income: The Company participates in royalty arrangements with other BorgWarner businesses, which involve the licensing of the Delphi Technologies trade name and product-related intellectual properties. For the three and six months ended June 30, 2023, the Company recognized royalty income from other BorgWarner businesses in the amount of $12 million and $17 million, respectively. For the three and six months ended June 30, 2022, the Company recognized royalty income from other BorgWarner businesses in the amount of $6 million and $13 million, respectively. Refer to Note 19, "Related-Party Transactions," for further information. Related-party R&D income: The Company provides application testing and other R&D services for other BorgWarner businesses. For the three and six months ended June 30, 2023, the Company recognized income related to these services of $1 million and $2 million, respectively. For the three and six months ended June 30, 2022, the Company recognized income related to these services of $4 million and $6 million, respectively. Refer to Note 19, "Related-Party Transactions," for further information.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe Company’s provision for income taxes is based upon an estimated annual effective tax rate for the year applied to domestic and foreign income. On a quarterly basis, the annual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. The Company’s effective tax rate for the three months ended June 30, 2023 and 2022 was 38% and 24%, respectively. The effective tax rate for the three months ended June 30, 2023 increased as compared to the prior year as a result of a change in the jurisdictional mix of pre-tax earnings, most notably an increase in pre-tax losses where no tax benefit is recognized. The Company’s effective tax rate for the six months ended June 30, 2023 and 2022 was 39% and 26%, respectively. The effective tax rate for the six months ended June 30, 2023 increased as compared to the prior year as a result of a change in the jurisdictional mix of pre-tax earnings, most notably an increase in pre-tax losses where no tax benefit is recognized. The annual effective tax rates differ from the U.S. statutory rate primarily due to foreign rates which vary from those in the U.S., jurisdictions with pretax losses for which no tax benefit could be realized, U.S. taxes on foreign earnings, and permanent differences between book and tax treatment for certain items including enhanced deduction of research and development expenses in certain jurisdictions. For periods ended on or prior to July 3, 2023, the Company’s operations have been included in BorgWarner’s U.S. federal consolidated tax return, certain foreign tax returns, and certain state tax returns. For the purposes of these financial statements, the Company’s income tax provision was computed as if the Company filed separate tax returns (i.e., as if the Company had not been included in the consolidated income tax return group with BorgWarner). The separate return method applies ASC 740 to the Combined Financial Statements of each member of a consolidated tax group as if the group member were a separate taxpayer. As a result, actual tax transactions included in the consolidated financial statements of BorgWarner may not be included in these Combined Financial Statements. Further, the Company’s tax results as presented in the Combined Financial Statements may not be reflective of the results that the Company expects to generate in the future. Also, the tax treatment of certain items reflected in the Combined Financial Statements may not be reflected in the Consolidated Financial Statements and tax returns of BorgWarner.

INVENTORIES, NET

INVENTORIES, NET	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES A summary of Inventories is presented below: (in millions) June 30, December 31, Raw material and supplies $ 301 $ 275 Work-in-progress 38 39 Finished goods 179 145 Inventories $ 518 $ 459

OTHER CURRENT AND NON-CURRENT A

OTHER CURRENT AND NON-CURRENT ASSETS	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER CURRENT AND NON-CURRENT ASSETS	OTHER CURRENT AND NON-CURRENT ASSETS (in millions) June 30, December 31, Prepayments and other current assets: Prepaid taxes $ 12 $ 11 Customer return assets 7 6 Prepaid engineering 5 3 Derivative instruments 4 7 Deposits 4 3 Other 16 10 Total prepayments and other current assets $ 48 $ 40 Investments and long-term receivables: Investment in equity affiliates $ 49 $ 44 Long-term receivables 39 71 Investment in equity securities 4 2 Total investments and long-term receivables $ 92 $ 117 Other non-current assets: Deferred income taxes $ 161 $ 157 Operating leases 67 80 Other 21 25 Total other non-current assets $ 249 $ 262

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES During the fourth quarter of each year, the Company assesses its goodwill and indefinite-lived intangible assets assigned to each of its reporting units. In addition, the Company may test goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value. No events or circumstances were noted in the first six months of 2023 requiring additional assessment or testing. Future changes in the judgments, assumptions and estimates from those used in acquisition-related valuations and goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect the Company’s financial statements in any given year. A summary of the components in the carrying amount of goodwill as of June 30, 2023 and December 31, 2022 is as follows: (in millions) Fuel Systems Aftermarket Total Gross goodwill balance $ 58 $ 545 $ 603 Accumulated impairment losses — (113) (113) Net goodwill balance $ 58 $ 432 $ 490 The Company’s other intangible assets, primarily from acquisitions, consist of the following: June 30, 2023 December 31, 2022 (in millions) Estimated useful lives (years) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: Patented and unpatented technology 14 - 15 $ 144 $ 35 $ 109 $ 144 $ 30 $ 114 Customer relationships 14 - 15 266 94 172 263 85 178 Total amortized intangible assets 410 129 281 407 115 292 Unamortized trade names 140 — 140 140 — 140 Total other intangible assets $ 550 $ 129 $ 421 $ 547 $ 115 $ 432

PRODUCT WARRANTY

PRODUCT WARRANTY	6 Months Ended
	Jun. 30, 2023
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY	PRODUCT WARRANTY The Company provides warranties on some, but not all, of its products. The warranty terms are typically from one The following table summarizes the activity in the product warranty accrual accounts: (in millions) 2023 2022 Beginning balance, January 1 $ 60 $ 68 Adjustments of prior estimates — 4 Provisions for current period sales 20 19 Payments (23) (22) Other, primarily translation adjustment (1) (3) Ending balance, June 30 $ 56 $ 66 The product warranty liability is classified in the Condensed Combined Balance Sheets as follows: (in millions) June 30, December 31, 2022 Other current liabilities $ 29 $ 32 Other non-current liabilities 27 28 Total product warranty liability $ 56 $ 60

NOTES PAYABLE AND DEBT

NOTES PAYABLE AND DEBT	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
NOTES PAYABLE AND DEBT	NOTES PAYABLE AND DEBT As of June 30, 2023 and December 31, 2022, the Company had debt outstanding as follows: (in millions) June 30, December 31, 2022 Long-term debt 5.000% Senior notes due 10/01/25 ($24 million par value) $ 25 $ 26 Other long-term debt — 2 Total long-term debt $ 25 $ 28 Less: current portion — — Long-term debt, net of current portion $ 25 $ 28 The following table provides details on Interest expense, net included in the Condensed Combined Statements of Operations: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Interest expense - related party $ 15 $ 5 $ 22 $ 10 Interest expense 3 2 5 3 Interest income - related party (12) (2) (15) (4) Interest income (2) (1) (5) (1) Interest expense, net $ 4 $ 4 $ 7 $ 8 As of both June 30, 2023 and December 31, 2022, the estimated fair values of the Company’s senior unsecured notes totaled $23 million. The estimated fair value was $2 million and $3 million lower than carrying value at June 30, 2023 and December 31, 2022, respectively. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying values of the Company’s other debt facilities approximate fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets. Credit Agreement On July 3, 2023, the Company entered into a $1.225 billion Credit Agreement consisting of a $500 million revolving credit facility (the “Revolving Facility”), a $300 million term loan A facility (the “Term Loan A Facility”) and a $425 million term loan B facility (the “Term Loan B Facility”; together with the Revolving Facility and the Term Loan A Facility, collectively, the “Facilities”) in correlation with the Spin-Off that occurred on the same date. Subject to extension by the lenders, at their option, upon the Company’s request, the Facilities mature on July 3, 2028; provided, however, that if earlier, the Revolving Facility and the Term Loan A Facility will mature 91 calendar days prior to the scheduled maturity of the Term Loan B Facility or any refinancing or replacement thereof in an aggregate principal amount exceeding $100 million that is secured pari passu with the Revolving Facility and the Term Loan A Facility and matures on or prior to July 3, 2028. Borrowings under the Credit Agreement bear interest at varying rates, depending on the type of loan and, in some cases, the rates of designated benchmarks and the Company’s related election. For borrowings under the Credit Agreement, the Company may choose among the following interest rates: (i) solely in the case of U.S. dollar-denominated loans, an interest rate equal to the highest of (1) the prime rate in effect from time to time, (2) the federal funds effective rate in effect from time to time plus 0.5%, (3) adjusted term Secured Overnight Financing Rate (“SOFR”) (which includes a 0.10% credit spread adjustment to term SOFR) for a one month interest period plus 1.00%, and (4) 1.00%, in each case plus a rate (x) with respect to the Revolving Facility and the Term Loan A Facility, ranging from 1.50% to 2.00% depending on the Company’s consolidated net leverage ratio or (y) with respect to the Term Loan B Facility, 3.00%; or (ii) an interest rate equal to (1) solely in the case of U.S. dollar-denominated loans, adjusted term SOFR, (2) solely in the case of euro-denominated loans, Euro Interbank Offered Rate (“EURIBOR”), or (3) solely in the case of pound sterling-denominated loans, adjusted Sterling Overnight Index Average Reference Rate (“SONIA”) (which includes a 0.0326% credit spread adjustment to SONIA), as applicable, in each case for the applicable interest period plus a rate (x) with respect to adjusted term SOFR for the Revolving Facility and the Term Loan A Facility, EURIBOR and SONIA, ranging from 2.50% to 3.00% depending on our consolidated net leverage ratio, and (y) with respect to adjusted term SOFR for the Term Loan B Facility, 4.00%. Additionally, the Company will pay a quarterly commitment fee based on the actual daily amount of the available Revolving Facility commitment. Proceeds of the Term Loan A Facility and the Term Loan B Facility were used only for certain payments in connection with the Spin-Off and the Credit Agreement. Proceeds of the Revolving Facility were used for certain payments in connection with the Spin-Off and the Credit Agreement and for working capital and general corporate purposes. As of July 3, 2023, $75 million is outstanding under the Revolving Facility, $300 million is outstanding under the Term Loan A Facility and $425 million is outstanding under the Term Loan B Facility, totaling $800 million aggregate principal outstanding under the Facilities.

OTHER CURRENT AND NON-CURRENT L

OTHER CURRENT AND NON-CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2023
Other Liabilities Disclosure [Abstract]
OTHER CURRENT AND NON-CURRENT LIABILITIES	OTHER CURRENT AND NON-CURRENT LIABILITIES Additional detail related to liabilities is presented in the table below: (in millions) June 30, December 31, Other current liabilities: Customer related $ 96 $ 96 Payroll and employee related 72 81 Income taxes payable 41 28 Product warranties (Note 10) 29 32 Accrued freight 17 13 Operating leases 16 18 Employee termination benefits (Note 3) 11 16 Deferred engineering 9 17 Other 79 84 Total other current liabilities $ 370 $ 385 Other non-current liabilities: Deferred income taxes $ 55 $ 46 Operating leases 54 67 Uncertain tax positions 29 37 Product warranties (Note 10) 27 28 Other 14 19 Total other non-current liabilities $ 179 $ 197

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820: A. Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business. B. Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). C. Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models). The following tables classify assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022: Basis of fair value measurements (in millions) Balance at June 30, 2023 Quoted prices in active markets for identical items Significant other observable inputs Significant unobservable inputs Valuation Assets: Foreign currency contracts $ 4 $ — $ 4 $ — A Liabilities: Foreign currency contracts $ (2) $ — $ (2) $ — A Basis of fair value measurements (in millions) Balance at December 31, 2022 Quoted prices in active markets for identical items Significant other observable inputs Significant unobservable inputs Valuation Assets: Foreign currency contracts $ 7 $ — $ 7 $ — A Liabilities: Foreign currency contracts $ (1) $ — $ (1) $ — A

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS The Company’s financial instruments include cash and cash equivalents, marketable securities and accounts receivable. Due to the short-term nature of these instruments, their book value approximates their fair value. The Company’s financial instruments may include long-term debt, interest rate and cross-currency swaps, commodity derivative contracts and foreign currency derivative contracts. All derivative contracts are placed with counterparties that have an S&P, or equivalent, investment grade credit rating at the time of the contracts’ placement. An adjustment for non-performance risk is considered in the estimate of fair value in derivative assets based on the counterparty credit default swap (“CDS”) rate. When the Company is in a net derivative liability position, the non-performance risk adjustment is based on its CDS rate. At June 30, 2023 and December 31, 2022, the Company had no derivative contracts that contained credit-risk-related contingent features. The Company, at times, uses certain commodity derivative contracts to protect against commodity price changes related to forecasted raw material and component purchases. The Company had no outstanding commodity contracts at June 30, 2023 and December 31, 2022. The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to optimize its interest costs. The Company, at times, selectively uses interest rate swaps to reduce market value risk associated with changes in interest rates (fair value hedges and cash flow hedges). At June 30, 2023 and December 31, 2022, the Company had no outstanding interest rate swaps or options. The Company uses foreign currency forward and option contracts to protect against exchange rate movements for forecasted cash flows, including capital expenditures, purchases, operating expenses or sales transactions designated in currencies other than the functional currency of the operating unit. In addition, the Company uses foreign currency forward contracts to hedge exposure associated with its net investment in certain foreign operations (net investment hedges). Foreign currency derivative contracts require the Company, at a future date, to either buy or sell foreign currency in exchange for the operating units’ local currency. At June 30, 2023 and December 31, 2022, the following foreign currency derivative contracts were outstanding and mature through the ending duration noted below: Foreign currency derivatives (in millions) 1 Functional currency Traded currency Notional in traded currency June 30, 2023 Notional in traded currency December 31, 2022 Ending duration Chinese Renminbi British Pound 13 23 Dec-23 Chinese Renminbi Euro 27 39 Dec-23 Euro British Pound 32 54 Dec-23 Euro Polish Zloty — 49 — Euro U.S. Dollar — 19 — U.S. Dollar Mexico Peso — 992 — U.S. Dollar British Pound 8 17 Dec-23 U.S. Dollar Thailand Baht — 1,790 — _____________ (1) Table above excludes non-significant traded currency pairings with total notional amounts less than $10 million U.S. Dollar equivalent as of June 30, 2023 and December 31, 2022. At June 30, 2023 and December 31, 2022, the following amounts were recorded in the Condensed Combined Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815: (in millions) Assets Liabilities Derivatives designated as hedging instruments Under Topic 815: Balance Sheet Location June 30, 2023 December 31, 2022 Balance Sheet Location June 30, 2023 December 31, 2022 Foreign currency Prepayments and other current assets $ 4 $ 7 Other current liabilities $ 2 $ 1 Effectiveness for cash flow hedges is assessed at the inception of the hedging relationship and quarterly, thereafter. Gains and losses arising from these contracts that are included in the assessment of effectiveness are deferred into accumulated other comprehensive income (loss) (“AOCI”) and reclassified into income as the underlying operating transactions are recognized. These realized gains or losses offset the hedged transaction and are recorded on the same line in the statement of operations. The initial value of any component excluded from the assessment of effectiveness is recognized in income using a systematic and rational method over the life of the hedging instrument. Any difference between the change in fair value of the excluded component and amounts recognized in income under that systematic and rational method are recognized in AOCI. Effectiveness for net investment hedges is assessed at the inception of the hedging relationship and quarterly, thereafter. Gains and losses arising from these contracts that are included in the assessment of effectiveness are deferred into foreign currency translation adjustments and only released when the subsidiary being hedged is sold or substantially liquidated. The initial value of any component excluded from the assessment of effectiveness is recognized in income using a systematic and rational method over the life of the hedging instrument. Any difference between the change in fair value of the excluded component and amounts recognized in income under that systematic and rational method is recognized in AOCI. The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at June 30, 2023 market rates. (in millions) Deferred loss in AOCI at Gain (loss) expected to be reclassified to income in one year or less Contract Type June 30, 2023 December 31, 2022 Foreign currency $ (7) $ (4) $ — Derivative instruments designated as hedging instruments as defined by ASC Topic 815 held during the period resulted in the following gains and losses recorded in income: Three months ended June 30, 2023 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 887 $ 698 $ 103 $ 6 Gain (loss) on cash flow hedging relationships: Foreign currency Loss recognized in Other comprehensive income (loss) $ — $ — $ — $ (4) Six months ended June 30, 2023 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 1,722 $ 1,361 $ 202 $ 27 Gain (loss) on cash flow hedging relationships: Foreign currency Loss recognized in Other comprehensive income $ — $ — $ — $ (2) Three months ended June 30, 2022 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 796 $ 638 $ 101 $ (88) Gain (loss) on cash flow hedging relationships: Foreign currency Gain recognized in Other comprehensive loss $ — $ — $ — $ 2 Six months ended June 30, 2022 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 1,638 $ 1,306 $ 201 $ (93) Gain (loss) on cash flow hedging relationships: Foreign currency Gain recognized in Other comprehensive income (loss) $ — $ — $ — $ 1 The gains or losses recorded in income related to components excluded from the assessment of effectiveness for derivative instruments designated as cash flow hedges were immaterial for the periods presented. Gains and losses on derivative instruments designated as net investment hedges were immaterial for the periods presented. Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains (losses) recorded in income: (in millions) Three months ended June 30, Six months ended June 30, Contract Type Location 2023 2022 2023 2022 Foreign Currency Cost of sales $ 2 $ (2) $ 4 $ (3)

RETIREMENT BENEFIT PLANS

RETIREMENT BENEFIT PLANS	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
RETIREMENT BENEFIT PLANS	RETIREMENT BENEFIT PLANSBorgWarner sponsors various defined contribution savings plans, primarily in the U.S., that allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with plan specified guidelines. Certain of the Company’s employees participate in defined benefit pension plans sponsored in part by BorgWarner. Under specified conditions, the Company will make contributions to the plans and/or match a percentage of the employee contributions up to certain limits. The estimated contributions to the defined benefit pension plans for 2023 are up to $3 million, of which $2 million has been contributed through the first six months of the year. The components of net periodic benefit income recorded in the Condensed Combined Statements of Operations are as follows: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Service cost $ 1 $ — $ 1 $ — Interest cost 11 6 21 12 Expected return on plan assets (11) (14) (21) (29) Amortization of unrecognized loss (1) — (1) — Net periodic benefit income $ — $ (8) $ — $ (17) The components of net periodic benefit cost are included in Other postretirement income in the Condensed Combined Statements of Operations.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY The changes of the Stockholders’ Equity items during the three and six months ended June 30, 2023 and 2022, are as follows: (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, March 31, 2023 $ 1,859 $ (67) $ — $ 1,792 Net earnings 35 — — 35 Other comprehensive income — 6 — 6 Net transfers from BorgWarner 159 — — 159 Balance, June 30, 2023 $ 2,053 $ (61) $ — $ 1,992 (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, March 31, 2022 $ 1,767 $ 57 $ — $ 1,824 Net earnings 41 — — 41 Other comprehensive loss — (88) — (88) Net transfers to BorgWarner (53) — — (53) Balance, June 30, 2022 $ 1,755 $ (31) $ — $ 1,724 (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, December 31, 2022 $ 1,731 $ (88) $ — $ 1,643 Net earnings 70 — — 70 Other comprehensive income — 27 — 27 Net transfers from BorgWarner 252 — — 252 Balance, June 30, 2023 $ 2,053 $ (61) $ — $ 1,992 (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, December 31, 2021 $ 1,647 $ 62 $ 3 $ 1,712 Net earnings 98 — 98 Other comprehensive loss — (93) — (93) Purchase of noncontrolling interest — — (3) (3) Net transfers from BorgWarner 10 — — 10 Balance, June 30, 2022 $ 1,755 $ (31) $ — $ 1,724

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarizes the activity within accumulated other comprehensive income (loss): (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, March 31, 2023 $ (65) $ (7) $ 5 $ (67) Comprehensive income (loss) before reclassifications 10 — (4) 6 Ending Balance, June 30, 2023 $ (55) $ (7) $ 1 $ (61) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, March 31, 2022 $ 2 $ 58 $ (3) $ 57 Comprehensive income (loss) before reclassifications (84) (8) 2 (90) Income taxes associated with comprehensive income before reclassifications — 2 — 2 Ending Balance, June 30, 2022 $ (82) $ 52 $ (1) $ (31) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2022 $ (85) $ (6) $ 3 $ (88) Comprehensive income (loss) before reclassifications 30 (1) (2) 27 Ending Balance, June 30, 2023 $ (55) $ (7) $ 1 $ (61) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2021 $ 5 $ 59 $ (2) $ 62 Comprehensive loss before reclassifications (87) (9) 1 (95) Income taxes associated with comprehensive (loss) income before reclassifications — 2 — 2 Ending Balance, June 30, 2022 $ (82) $ 52 $ (1) $ (31)

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES In the course of its business, the Company is party to various commercial and legal claims, actions and complaints, including matters involving warranty claims, intellectual property claims, governmental investigations and related proceedings, including relating to alleged or actual violations of vehicle emissions standards, general liability and various other risks. It is not possible to predict with certainty whether or not the Company will ultimately be successful in any of these commercial and legal matters or, if not, what the impact might be. The Company’s management does not believe that adverse outcomes in any of these commercial and legal claims, actions and complaints are reasonably likely to have a material adverse effect on the Company’s results of operations, financial position or cash flows. An adverse outcome could, nonetheless, be material to the results of operations or cash flows.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONS The Condensed Combined Financial Statements have been prepared on a carve-out basis and are derived from the consolidated financial statements and accounting records of BorgWarner. The following discussion summarizes activity between the Company and BorgWarner (and its affiliates that are not included within the Condensed Combined Financial Statements). Allocation of General Corporate and Other Expenses The Condensed Combined Statements of Operations include expenses for certain centralized functions and other programs provided and administered by BorgWarner that are charged directly to the Company. In addition, for purposes of preparing these Condensed Combined Financial Statements on a carve-out basis, a portion of BorgWarner’s total corporate expenses has been allocated to the Company. Similarly, certain centralized expenses incurred by the Company on behalf of subsidiaries of BorgWarner have been allocated to BorgWarner. See Note 1, “Basis Of Presentation,” for a discussion of the methodology used to allocate corporate expenses for purposes of preparing these financial statements on a carve-out basis. For the three and six months ended June 30, 2023, net corporate allocation expenses totaled $54 million and $89 million, respectively, which were primarily included in Selling, general and administrative expenses in the Condensed Combined Statements of Operations. For the three and six months ended June 30, 2022 net corporate allocation expenses totaled $39 million and $69 million, respectively, which were primarily included in Selling, general and administrative expenses in the Condensed Combined Statements of Operations. Related-Party Sales and Purchases For the three and six months ended June 30, 2023, the Company sold components to other BorgWarner businesses in the amount of $4 million and $6 million, respectively. For the three and six months ended June 30, 2022, the Company sold components to other BorgWarner businesses in the amount of $2 million and $5 million, respectively. Components sold to other BorgWarner businesses are included in Net sales in the Condensed Combined Statements of Operations. The Company purchases certain component inventory and services from businesses that will remain with BorgWarner. For the three and six months ended June 30, 2023, the Company made $35 million and $72 million, respectively, of such purchases and recognized cost of sales of $34 million and $71 million, respectively. For the three and six months ended June 30, 2022, the Company made $49 million and $85 million, respectively, of such purchases and recognized cost of sales of $41 million and $84 million, respectively. Related-Party Royalty Income The Company participates in royalty arrangements with other BorgWarner businesses which involves the licensing of the Delphi Technologies trade name and product-related intellectual properties. For the three and six months ended June 30, 2023, the Company recognized royalty income from other BorgWarner businesses in the amount of $12 million and $17 million, respectively. For the three and six months ended June 30, 2022, the Company recognized royalty income from other BorgWarner businesses in the amount of $6 million and $13 million, respectively. It is anticipated that these royalty arrangements will not continue after the Spin-Off is completed. Amounts are included in Other operating expense, net in the Condensed Combined Statements of Operations. Related-Party R&D The Company provides application testing and other R&D services for other BorgWarner businesses. For the three and six months ended June 30, 2023, the Company recognized income related to these services of $1 million and $2 million, respectively. For the three and six months ended June 30, 2022, the Company recognized income related to these services of $4 million and $6 million, respectively. Amounts are included in Other operating expense, net in the Condensed Combined Statements of Operations. Due from BorgWarner The current and non-current portions of amounts due from BorgWarner as reflected in the Condensed Combined Balance Sheets consist of the following: June 30, December 31, (in millions) 2023 2022 Accounts receivable $ 64 $ 106 Short-term portion of loans receivable and other facilities — 36 Due from BorgWarner, current $ 64 $ 142 Long-term receivable $ 40 $ — Cash pooling 6 168 Loans receivable — 40 Due from BorgWarner, non-current $ 46 $ 208 In 2018, the Company and BorgWarner entered into a credit facility providing BorgWarner with access to borrow up to €40 million ($43 million). Interest on the credit facility is fixed at 0.65%, paid quarterly. On October 1, 2022, the credit facility was refinanced and the interest rate was amended to 3.69%. As of December 31, 2022, BorgWarner had drawn $40 million on the credit facility. The credit facility was set to mature in September 2024, however, in February 2023, the Company and BorgWarner made the decision to settle the loan early and the entire facility was converted to equity. In 2021, the Company issued a Thai Bhat-denominated term loan to BorgWarner for ฿1,720 million ($92 million). Interest on the term loan was fixed at 1.70%, paid annually. As of December 31, 2022, the outstanding balance of the term loan was $36 million. The term loan matured on May 14, 2023. In 2022, the Company issued a credit facility to BorgWarner for up to $150 million. Interest on the credit facility was fixed at 6.64%, paid annually. As of June 30, 2023, there is no outstanding balance related to the credit facility. Certain BorgWarner entities participate in cash pooling arrangements headed by the Company. Additionally, the Company participates in certain cash pools headed by BorgWarner. Any balances owed to the Company from BorgWarner as a result of these cash arrangements that are anticipated to be settled in cash are reflected as Due from BorgWarner. Certain other cash pooling balances that are not anticipated to be settled in cash are presented within BorgWarner investment. Due to BorgWarner The current and non-current portions of amounts due to BorgWarner as reflected in the Condensed Combined Balance Sheets consist of the following: June 30, December 31, (in millions) 2023 2022 Accounts payable $ 99 $ 186 Short-term portion of notes payable and other facilities — 94 Accrued interest payable — 5 Due to BorgWarner, current $ 99 $ 285 Notes payable $ 634 $ 921 Cash pooling 9 36 Due to BorgWarner, non-current $ 643 $ 957 In 2020, the Company, as borrower, entered into a term loan with BorgWarner, as lender, in the amount of $891 million in exchange for the transfer of the majority of the 5.000% Senior Notes due 2025. Interest on the term loan was fixed at 3.25%, paid annually. In 2021, this loan was refinanced with two new loan tranches, including $30 million of accrued unpaid interest on the original term loan. The first tranche of $368 million has a fixed annual interest rate of 1.40% and matures on October 3, 2024. The second tranche of $553 million has a fixed annual interest rate of 2.20% and matures on October 3, 2029. As of June 30, 2023 and December 31, 2022, the outstanding balance of the term loan for the first and second tranches was $634 million and $921 million, respectively. In June 2023, the Company and BorgWarner made the decision to settle $287 million of the balance in equity prior to the Spin-Off. This is presented as a net transfer to BorgWarner in the Condensed Combined Statement of Cash Flows as of June 30, 2023. The remaining balance was settled in cash in connection with the Spin-Off. Throughout 2023 and 2022, the Company, as borrower, and BorgWarner, as lender, entered into various interest-bearing notes, primarily arising from operating relationships between international entities. As of December 31, 2022, the outstanding balance from these facilities totaled $94 million, which is reflected as Due to BorgWarner, current. As of June 30, 2023 and December 31, 2022, the estimated fair value of the Company's non-current notes payable due to BorgWarner, as described above, was $489 million and $738 million, respectively. The estimated fair values were $145 million and $183 million lower than carrying values at June 30, 2023 and December 31, 2022, respectively. Fair market values of the non-current notes payable due to BorgWarner are developed using unobservable inputs, which are considered Level 3 inputs as defined by ASC Topic 820. The carrying values of the Company’s current notes payable due to BorgWarner approximate fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets. Additionally, the Company participates in certain cash pools headed by BorgWarner. Any balances owed by the Company to BorgWarner as a result of these cash arrangements that are anticipated to be settled in cash are reflected as Due to BorgWarner. Certain other cash pooling balances that are not anticipated to be settled in cash are presented within BorgWarner investment. The Company and BorgWarner have entered into certain intra-group arrangements. Activity associated with these arrangements is included within general financing activities in Net transfers from (to) BorgWarner in the Condensed Combined Statements of Changes in Equity. Amounts owed to BorgWarner as a result of such arrangements are reflected as payables within Due to BorgWarner, current. Amounts owed to the Company from BorgWarner under these arrangements are reflected as receivables within Due from BorgWarner, current. Net Transfers from (to) BorgWarner Net transfers from (to) BorgWarner are included within BorgWarner investment in the Condensed Combined Statements of Changes in Equity. The components of the transfers from (to) BorgWarner are as follows: Six Months Ended June 30, (in millions) 2023 2022 General financing activities $ (63) $ (104) Cash pooling and other equity settled balances with BorgWarner (32) 51 Related-party notes converted to equity 260 — Corporate allocations 89 69 Research and development income from BorgWarner (2) (6) Total net transfers from BorgWarner $ 252 $ 10 Exclude non-cash items: Stock-based compensation $ (4) $ (5) Other non-cash activities with BorgWarner, net 15 (17) Related-party notes converted to equity (260) — Cash pooling and intercompany financing activities with BorgWarner, net 55 9 Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow $ 58 $ (3)

REPORTABLE SEGMENTS AND RELATED

REPORTABLE SEGMENTS AND RELATED INFORMATION	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
REPORTING SEGMENTS AND RELATED INFORMATION	REPORTABLE SEGMENTS AND RELATED INFORMATION The Company’s business is comprised of two reportable segments, which are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems. • Fuel Systems. This segment provides advanced fuel injection systems, fuel delivery modules, canisters, sensors, electronic control modules and associated software. Our highly engineered fuel injection systems portfolio includes pumps, injectors, fuel rail assemblies, engine control modules, and complete systems, including software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. • Aftermarket. Through this segment, the Company sells products to independent aftermarket customers and OES customers. Its product portfolio includes a wide range of products as well as maintenance, test equipment and vehicle diagnostics solutions. The Aftermarket segment also includes sales of starters and alternators to OEMs. Segment Adjusted Operating Income is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income is comprised of segment operating income adjusted for restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges, other net expenses and other items not reflective of ongoing operating income or loss. The Company believes Segment Adjusted Operating Income is most reflective of the operational profitability or loss of its reportable segments. Segment Adjusted Operating Income excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments. The following tables show segment information and Segment Adjusted Operating Income for the Company’s reportable segments: Net Sales by Reportable Segment Three months ended June 30, 2023 Six months ended June 30, 2023 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 551 $ 56 $ 607 $ 1,060 $ 114 $ 1,174 Aftermarket 336 3 339 662 7 669 Inter-segment eliminations — (59) (59) — (121) (121) Total $ 887 $ — $ 887 $ 1,722 $ — $ 1,722 Three months ended June 30, 2022 Six months ended June 30, 2022 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 473 $ 51 $ 524 $ 1,011 $ 99 $ 1,110 Aftermarket 323 1 324 627 4 631 Inter-segment eliminations — (52) (52) — (103) (103) Total $ 796 $ — $ 796 $ 1,638 $ — $ 1,638 Net Assets by Reportable Segment (in millions) June 30, December 31, 2022 Fuel Systems $ 2,240 $ 2,314 Aftermarket 1,407 1,348 Total 3,647 3,662 Corporate 1 222 412 Consolidated $ 3,869 $ 4,074 _____________ (1) Corporate assets include cash and cash equivalents, investments and long-term receivables, deferred income taxes, and related party receivables and cash pooling. Segment Adjusted Operating Income Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Fuel Systems $ 62 $ 43 $ 105 $ 109 Aftermarket 49 51 97 89 Segment Adjusted Operating Income 111 94 202 198 Corporate, including royalty income and stock-based compensation 5 18 9 31 Merger, acquisition and divestiture expense, net 41 12 59 22 Intangible asset amortization expense 7 7 14 14 Restructuring expense (Note 3) 2 3 6 5 Asset impairments and lease modifications — 5 — 6 Equity in affiliates' earnings, net of tax (3) (1) (6) (3) Interest expense, net 4 4 7 8 Other postretirement income (1) (8) (1) (17) Earnings before income taxes 56 54 114 132 Provision for income taxes 21 13 44 34 Net earnings $ 35 $ 41 $ 70 $ 98

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net earnings	$ 35	$ 41	$ 70	$ 98

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	The accompanying Condensed Combined Financial Statements and notes present the combined results of operations, financial positions, and cash flows of the Fuel Systems and Aftermarket businesses of BorgWarner for the periods presented on a “carve-out basis” and as historically operated by BorgWarner. The Condensed Combined Financial Statements have been derived from the Consolidated Financial Statements and accounting records of BorgWarner using the historical results of operations and historical basis of assets and liabilities of the Company on a “carve-out basis” and reflect BorgWarner’s net investment in the Company.
Basis of Presentation	The Company’s Condensed Combined Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flow activity required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair statement of results have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet as of December 31, 2022 was derived from the audited financial statements as of that date.
Use of Estimates	Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and accompanying notes, as well as amounts of revenues and expenses reported during the periods covered by those financial statements and accompanying notes. The Condensed Combined Financial Statements may not be indicative of the Company’s future performance and do not necessarily reflect what the financial position, results of operations, and cash flows would have been had it operated as a standalone company during the periods presented.
Fair Value Measurement	ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820: A. Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business. B. Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost). C. Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the three and six months ended June 30, 2023 and 2022. Refer to Note 20, “Reportable Segments And Related Information to the Condensed Combined Financial Statements,” for more information. Three months ended June 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 171 $ 200 $ 371 Europe 256 116 372 Asia 124 20 144 Total $ 551 $ 336 $ 887 Three months ended June 30, 2022 (In millions) Fuel Systems Aftermarket Total Americas $ 129 $ 205 $ 334 Europe 225 102 327 Asia 119 16 135 Total $ 473 $ 323 $ 796 Six months ended June 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 338 $ 398 $ 736 Europe 479 228 707 Asia 243 36 279 Total $ 1,060 $ 662 $ 1,722 Six months ended June 30, 2022 (In millions) Fuel Systems Aftermarket Total Americas $ 266 $ 397 $ 663 Europe 470 200 670 Asia 275 30 305 Total $ 1,011 $ 627 $ 1,638

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve Roll Forward	The following table displays a roll forward of the restructuring liability recorded within the Company’s Condensed Combined Balance Sheets and the related cash flow activity: (in millions) Employee termination benefits Other Total Balance at January 1, 2023 $ 20 $ — $ 20 Restructuring expense, net 5 1 6 Cash payments (12) (1) (13) Balance at June 30, 2023 13 — 13 Less: Non-current restructuring liability (2) — (2) Current restructuring liability at June 30, 2023 $ 11 $ — $ 11 (in millions) Employee termination benefits Other Total Balance at January 1, 2022 $ 60 $ — $ 60 Restructuring expense, net 2 3 5 Cash payments (31) (2) (33) Foreign currency translation adjustment and other (2) — (2) Balance at June 30, 2022 29 1 30 Less: Non-current restructuring liability (8) — (8) Current restructuring liability at June 30, 2022 $ 21 $ 1 $ 22

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS (Tables)	6 Months Ended
	Jun. 30, 2023
Research and Development [Abstract]
Research and Development Arrangement, Contract to Perform for Others	The following table presents the Company’s gross and net expenditures on R&D activities: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Gross R&D expenditures $ 49 $ 51 $ 98 $ 102 Customer reimbursements (21) (22) (41) (48) Net R&D expenditures $ 28 $ 29 $ 57 $ 54

OTHER OPERATING EXPENSE, NET (T

OTHER OPERATING EXPENSE, NET (Tables)	6 Months Ended
	Jun. 30, 2023
Other Income and Expenses [Abstract]
Schedule of Other Operating Expense, Net	Items included in Other operating expense, net consist of: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Merger, acquisition and divestiture expense $ 41 $ 12 $ 59 $ 22 Related-party royalty income (12) (6) (17) (13) Related-party R&D income (1) (4) (2) (6) Asset impairment — 5 — 5 Restructuring 2 3 6 5 Other income, net — (2) (1) (2) Other operating expense, net $ 30 $ 8 $ 45 $ 11

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	A summary of Inventories is presented below: (in millions) June 30, December 31, Raw material and supplies $ 301 $ 275 Work-in-progress 38 39 Finished goods 179 145 Inventories $ 518 $ 459

OTHER CURRENT AND NON-CURRENT_2

OTHER CURRENT AND NON-CURRENT ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	(in millions) June 30, December 31, Prepayments and other current assets: Prepaid taxes $ 12 $ 11 Customer return assets 7 6 Prepaid engineering 5 3 Derivative instruments 4 7 Deposits 4 3 Other 16 10 Total prepayments and other current assets $ 48 $ 40 Investments and long-term receivables: Investment in equity affiliates $ 49 $ 44 Long-term receivables 39 71 Investment in equity securities 4 2 Total investments and long-term receivables $ 92 $ 117 Other non-current assets: Deferred income taxes $ 161 $ 157 Operating leases 67 80 Other 21 25 Total other non-current assets $ 249 $ 262

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	A summary of the components in the carrying amount of goodwill as of June 30, 2023 and December 31, 2022 is as follows: (in millions) Fuel Systems Aftermarket Total Gross goodwill balance $ 58 $ 545 $ 603 Accumulated impairment losses — (113) (113) Net goodwill balance $ 58 $ 432 $ 490
Schedule of Finite-Lived Intangible Assets	The Company’s other intangible assets, primarily from acquisitions, consist of the following: June 30, 2023 December 31, 2022 (in millions) Estimated useful lives (years) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: Patented and unpatented technology 14 - 15 $ 144 $ 35 $ 109 $ 144 $ 30 $ 114 Customer relationships 14 - 15 266 94 172 263 85 178 Total amortized intangible assets 410 129 281 407 115 292 Unamortized trade names 140 — 140 140 — 140 Total other intangible assets $ 550 $ 129 $ 421 $ 547 $ 115 $ 432
Schedule of Indefinite-Lived Intangible Assets	The Company’s other intangible assets, primarily from acquisitions, consist of the following: June 30, 2023 December 31, 2022 (in millions) Estimated useful lives (years) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Amortized intangible assets: Patented and unpatented technology 14 - 15 $ 144 $ 35 $ 109 $ 144 $ 30 $ 114 Customer relationships 14 - 15 266 94 172 263 85 178 Total amortized intangible assets 410 129 281 407 115 292 Unamortized trade names 140 — 140 140 — 140 Total other intangible assets $ 550 $ 129 $ 421 $ 547 $ 115 $ 432

PRODUCT WARRANTY (Tables)

PRODUCT WARRANTY (Tables)	6 Months Ended
	Jun. 30, 2023
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	The following table summarizes the activity in the product warranty accrual accounts: (in millions) 2023 2022 Beginning balance, January 1 $ 60 $ 68 Adjustments of prior estimates — 4 Provisions for current period sales 20 19 Payments (23) (22) Other, primarily translation adjustment (1) (3) Ending balance, June 30 $ 56 $ 66 The product warranty liability is classified in the Condensed Combined Balance Sheets as follows: (in millions) June 30, December 31, 2022 Other current liabilities $ 29 $ 32 Other non-current liabilities 27 28 Total product warranty liability $ 56 $ 60

NOTES PAYABLE AND DEBT (Tables)

NOTES PAYABLE AND DEBT (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2023 and December 31, 2022, the Company had debt outstanding as follows: (in millions) June 30, December 31, 2022 Long-term debt 5.000% Senior notes due 10/01/25 ($24 million par value) $ 25 $ 26 Other long-term debt — 2 Total long-term debt $ 25 $ 28 Less: current portion — — Long-term debt, net of current portion $ 25 $ 28
Schedule of Interest Expense, Net, Net Included in the Condensed Combined Statements of Operations	The following table provides details on Interest expense, net included in the Condensed Combined Statements of Operations: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Interest expense - related party $ 15 $ 5 $ 22 $ 10 Interest expense 3 2 5 3 Interest income - related party (12) (2) (15) (4) Interest income (2) (1) (5) (1) Interest expense, net $ 4 $ 4 $ 7 $ 8

OTHER CURRENT AND NON-CURRENT_3

OTHER CURRENT AND NON-CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Other Liabilities Disclosure [Abstract]
Summary of Additional Details Related to Other Liabilities	Additional detail related to liabilities is presented in the table below: (in millions) June 30, December 31, Other current liabilities: Customer related $ 96 $ 96 Payroll and employee related 72 81 Income taxes payable 41 28 Product warranties (Note 10) 29 32 Accrued freight 17 13 Operating leases 16 18 Employee termination benefits (Note 3) 11 16 Deferred engineering 9 17 Other 79 84 Total other current liabilities $ 370 $ 385 Other non-current liabilities: Deferred income taxes $ 55 $ 46 Operating leases 54 67 Uncertain tax positions 29 37 Product warranties (Note 10) 27 28 Other 14 19 Total other non-current liabilities $ 179 $ 197

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value	The following tables classify assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022: Basis of fair value measurements (in millions) Balance at June 30, 2023 Quoted prices in active markets for identical items Significant other observable inputs Significant unobservable inputs Valuation Assets: Foreign currency contracts $ 4 $ — $ 4 $ — A Liabilities: Foreign currency contracts $ (2) $ — $ (2) $ — A Basis of fair value measurements (in millions) Balance at December 31, 2022 Quoted prices in active markets for identical items Significant other observable inputs Significant unobservable inputs Valuation Assets: Foreign currency contracts $ 7 $ — $ 7 $ — A Liabilities: Foreign currency contracts $ (1) $ — $ (1) $ — A

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Foreign Exchange Derivative Contracts Outstanding	At June 30, 2023 and December 31, 2022, the following foreign currency derivative contracts were outstanding and mature through the ending duration noted below: Foreign currency derivatives (in millions) 1 Functional currency Traded currency Notional in traded currency June 30, 2023 Notional in traded currency December 31, 2022 Ending duration Chinese Renminbi British Pound 13 23 Dec-23 Chinese Renminbi Euro 27 39 Dec-23 Euro British Pound 32 54 Dec-23 Euro Polish Zloty — 49 — Euro U.S. Dollar — 19 — U.S. Dollar Mexico Peso — 992 — U.S. Dollar British Pound 8 17 Dec-23 U.S. Dollar Thailand Baht — 1,790 — _____________
Schedule of Derivative Instruments in Statement of Financial Position	At June 30, 2023 and December 31, 2022, the following amounts were recorded in the Condensed Combined Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815: (in millions) Assets Liabilities Derivatives designated as hedging instruments Under Topic 815: Balance Sheet Location June 30, 2023 December 31, 2022 Balance Sheet Location June 30, 2023 December 31, 2022 Foreign currency Prepayments and other current assets $ 4 $ 7 Other current liabilities $ 2 $ 1
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges. The amount expected to be reclassified to income in one year or less assumes no change in the current relationship of the hedged item at June 30, 2023 market rates. (in millions) Deferred loss in AOCI at Gain (loss) expected to be reclassified to income in one year or less Contract Type June 30, 2023 December 31, 2022 Foreign currency $ (7) $ (4) $ —
Schedule of Derivative Instruments	Derivative instruments designated as hedging instruments as defined by ASC Topic 815 held during the period resulted in the following gains and losses recorded in income: Three months ended June 30, 2023 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 887 $ 698 $ 103 $ 6 Gain (loss) on cash flow hedging relationships: Foreign currency Loss recognized in Other comprehensive income (loss) $ — $ — $ — $ (4) Six months ended June 30, 2023 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 1,722 $ 1,361 $ 202 $ 27 Gain (loss) on cash flow hedging relationships: Foreign currency Loss recognized in Other comprehensive income $ — $ — $ — $ (2) Three months ended June 30, 2022 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 796 $ 638 $ 101 $ (88) Gain (loss) on cash flow hedging relationships: Foreign currency Gain recognized in Other comprehensive loss $ — $ — $ — $ 2 Six months ended June 30, 2022 (in millions) Net sales Cost of sales Selling, general and administrative expenses Other comprehensive income (loss) Total amounts of earnings and other comprehensive income line items in which the effects of cash flow hedges are recorded $ 1,638 $ 1,306 $ 201 $ (93) Gain (loss) on cash flow hedging relationships: Foreign currency Gain recognized in Other comprehensive income (loss) $ — $ — $ — $ 1
Schedule of Derivatives Not Designated as Hedging Instruments	Derivatives not designated as hedging instruments are used to hedge remeasurement exposures of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains (losses) recorded in income: (in millions) Three months ended June 30, Six months ended June 30, Contract Type Location 2023 2022 2023 2022 Foreign Currency Cost of sales $ 2 $ (2) $ 4 $ (3)

RETIREMENT BENEFIT PLANS (Table

RETIREMENT BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule of Net Benefit (Income) Costs	The components of net periodic benefit income recorded in the Condensed Combined Statements of Operations are as follows: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Service cost $ 1 $ — $ 1 $ — Interest cost 11 6 21 12 Expected return on plan assets (11) (14) (21) (29) Amortization of unrecognized loss (1) — (1) — Net periodic benefit income $ — $ (8) $ — $ (17)

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Schedule of Stockholders Equity	The changes of the Stockholders’ Equity items during the three and six months ended June 30, 2023 and 2022, are as follows: (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, March 31, 2023 $ 1,859 $ (67) $ — $ 1,792 Net earnings 35 — — 35 Other comprehensive income — 6 — 6 Net transfers from BorgWarner 159 — — 159 Balance, June 30, 2023 $ 2,053 $ (61) $ — $ 1,992 (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, March 31, 2022 $ 1,767 $ 57 $ — $ 1,824 Net earnings 41 — — 41 Other comprehensive loss — (88) — (88) Net transfers to BorgWarner (53) — — (53) Balance, June 30, 2022 $ 1,755 $ (31) $ — $ 1,724 (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, December 31, 2022 $ 1,731 $ (88) $ — $ 1,643 Net earnings 70 — — 70 Other comprehensive income — 27 — 27 Net transfers from BorgWarner 252 — — 252 Balance, June 30, 2023 $ 2,053 $ (61) $ — $ 1,992 (in millions) BorgWarner investment Accumulated other comprehensive income (loss) Noncontrolling interest Total equity Balance, December 31, 2021 $ 1,647 $ 62 $ 3 $ 1,712 Net earnings 98 — 98 Other comprehensive loss — (93) — (93) Purchase of noncontrolling interest — — (3) (3) Net transfers from BorgWarner 10 — — 10 Balance, June 30, 2022 $ 1,755 $ (31) $ — $ 1,724

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following tables summarizes the activity within accumulated other comprehensive income (loss): (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, March 31, 2023 $ (65) $ (7) $ 5 $ (67) Comprehensive income (loss) before reclassifications 10 — (4) 6 Ending Balance, June 30, 2023 $ (55) $ (7) $ 1 $ (61) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, March 31, 2022 $ 2 $ 58 $ (3) $ 57 Comprehensive income (loss) before reclassifications (84) (8) 2 (90) Income taxes associated with comprehensive income before reclassifications — 2 — 2 Ending Balance, June 30, 2022 $ (82) $ 52 $ (1) $ (31) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2022 $ (85) $ (6) $ 3 $ (88) Comprehensive income (loss) before reclassifications 30 (1) (2) 27 Ending Balance, June 30, 2023 $ (55) $ (7) $ 1 $ (61) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2021 $ 5 $ 59 $ (2) $ 62 Comprehensive loss before reclassifications (87) (9) 1 (95) Income taxes associated with comprehensive (loss) income before reclassifications — 2 — 2 Ending Balance, June 30, 2022 $ (82) $ 52 $ (1) $ (31)

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The current and non-current portions of amounts due from BorgWarner as reflected in the Condensed Combined Balance Sheets consist of the following: June 30, December 31, (in millions) 2023 2022 Accounts receivable $ 64 $ 106 Short-term portion of loans receivable and other facilities — 36 Due from BorgWarner, current $ 64 $ 142 Long-term receivable $ 40 $ — Cash pooling 6 168 Loans receivable — 40 Due from BorgWarner, non-current $ 46 $ 208 June 30, December 31, (in millions) 2023 2022 Accounts payable $ 99 $ 186 Short-term portion of notes payable and other facilities — 94 Accrued interest payable — 5 Due to BorgWarner, current $ 99 $ 285 Notes payable $ 634 $ 921 Cash pooling 9 36 Due to BorgWarner, non-current $ 643 $ 957 Six Months Ended June 30, (in millions) 2023 2022 General financing activities $ (63) $ (104) Cash pooling and other equity settled balances with BorgWarner (32) 51 Related-party notes converted to equity 260 — Corporate allocations 89 69 Research and development income from BorgWarner (2) (6) Total net transfers from BorgWarner $ 252 $ 10 Exclude non-cash items: Stock-based compensation $ (4) $ (5) Other non-cash activities with BorgWarner, net 15 (17) Related-party notes converted to equity (260) — Cash pooling and intercompany financing activities with BorgWarner, net 55 9 Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow $ 58 $ (3)

REPORTABLE SEGMENTS AND RELAT_2

REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Net Sales and Total Assets by Reporting Segment	Net Sales by Reportable Segment Three months ended June 30, 2023 Six months ended June 30, 2023 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 551 $ 56 $ 607 $ 1,060 $ 114 $ 1,174 Aftermarket 336 3 339 662 7 669 Inter-segment eliminations — (59) (59) — (121) (121) Total $ 887 $ — $ 887 $ 1,722 $ — $ 1,722 Three months ended June 30, 2022 Six months ended June 30, 2022 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 473 $ 51 $ 524 $ 1,011 $ 99 $ 1,110 Aftermarket 323 1 324 627 4 631 Inter-segment eliminations — (52) (52) — (103) (103) Total $ 796 $ — $ 796 $ 1,638 $ — $ 1,638
Schedule of Segment Earnings Before Interest and Income Taxes	Segment Adjusted Operating Income Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Fuel Systems $ 62 $ 43 $ 105 $ 109 Aftermarket 49 51 97 89 Segment Adjusted Operating Income 111 94 202 198 Corporate, including royalty income and stock-based compensation 5 18 9 31 Merger, acquisition and divestiture expense, net 41 12 59 22 Intangible asset amortization expense 7 7 14 14 Restructuring expense (Note 3) 2 3 6 5 Asset impairments and lease modifications — 5 — 6 Equity in affiliates' earnings, net of tax (3) (1) (6) (3) Interest expense, net 4 4 7 8 Other postretirement income (1) (8) (1) (17) Earnings before income taxes 56 54 114 132 Provision for income taxes 21 13 44 34 Net earnings $ 35 $ 41 $ 70 $ 98
Reconciliation of Assets from Segment to Consolidated	Net Assets by Reportable Segment (in millions) June 30, December 31, 2022 Fuel Systems $ 2,240 $ 2,314 Aftermarket 1,407 1,348 Total 3,647 3,662 Corporate 1 222 412 Consolidated $ 3,869 $ 4,074 _____________ (1) Corporate assets include cash and cash equivalents, investments and long-term receivables, deferred income taxes, and related party receivables and cash pooling.

INTRODUCTION AND TRANSITION T_2

INTRODUCTION AND TRANSITION TO STANDALONE COMPANY (Details)	Jun. 23, 2023 shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock conversion from Borgwarner to PHINIA	0.2

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 103		$ 202
Other operating expense, net	(30)	$ (8)	(45)	$ (11)
Related Party | Corporate Expense Allocation
Related Party Transaction [Line Items]
Selling, general and administrative expenses	54	39	89	69
Related Party | Research and Development Services
Related Party Transaction [Line Items]
Other operating expense, net	$ 1	$ 4	$ 2	$ 6

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Revenue from External Customer [Line Items]
Contract with customer, contract assets, current	$ 2
Contract with customer, contract asset		$ 2
Liability, current	$ 0	$ 3
Minimum
Revenue from External Customer [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction (in years)	3 years
Maximum
Revenue from External Customer [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction (in years)	7 years

REVENUE FROM CONTRACTS WITH C_4

REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from External Customer [Line Items]
Net sales	$ 887	$ 796	$ 1,722	$ 1,638
Fuel Systems
Revenue from External Customer [Line Items]
Net sales	551	473	1,060	1,011
Aftermarket
Revenue from External Customer [Line Items]
Net sales	336	323	662	627
Americas
Revenue from External Customer [Line Items]
Net sales	371	334	736	663
Americas | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	171	129	338	266
Americas | Aftermarket
Revenue from External Customer [Line Items]
Net sales	200	205	398	397
Europe
Revenue from External Customer [Line Items]
Net sales	372	327	707	670
Europe | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	256	225	479	470
Europe | Aftermarket
Revenue from External Customer [Line Items]
Net sales	116	102	228	200
Asia
Revenue from External Customer [Line Items]
Net sales	144	135	279	305
Asia | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	124	119	243	275
Asia | Aftermarket
Revenue from External Customer [Line Items]
Net sales	$ 20	$ 16	$ 36	$ 30

RESTRUCTURING - Roll forward of

RESTRUCTURING - Roll forward of the Restructuring Liability (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 20	$ 60
Restructuring expense, net	$ 2	$ 3	6	5
Cash payments			(13)	(33)
Foreign currency translation adjustment and other				(2)
Restructuring reserve, ending balance	13	30	13	30
Less: Non-current restructuring liability	(2)	(8)	(2)	(8)
Current restructuring liability at June 30, 2022	11	22	11	22
Employee termination benefits
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			20	60
Restructuring expense, net			5	2
Cash payments			(12)	(31)
Foreign currency translation adjustment and other				(2)
Restructuring reserve, ending balance	13	29	13	29
Less: Non-current restructuring liability	(2)	(8)	(2)	(8)
Current restructuring liability at June 30, 2022	11	21	11	21
Other
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0	0
Restructuring expense, net			1	3
Cash payments			(1)	(2)
Foreign currency translation adjustment and other				0
Restructuring reserve, ending balance	0	1	0	1
Less: Non-current restructuring liability	0	0	0	0
Current restructuring liability at June 30, 2022	$ 0	$ 1	$ 0	$ 1

RESTRUCTURING - Narratives (Det

RESTRUCTURING - Narratives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring expense, net	$ 2	$ 3	$ 6	$ 5
Fuel Systems
Restructuring Cost and Reserve [Line Items]
Restructuring expense, net	$ 2		$ 6
Delphi Technologies Restructuring | Fuel Systems
Restructuring Cost and Reserve [Line Items]
Restructuring expense, net				$ 5

RESEARCH AND DEVELOPMENT COST_2

RESEARCH AND DEVELOPMENT COSTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Research and Development [Abstract]
Gross R&D expenditures	$ 49	$ 51	$ 98	$ 102
Customer reimbursements	(21)	(22)	(41)	(48)
Net R&D expenditures	$ 28	$ 29	$ 57	$ 54

OTHER OPERATING EXPENSE, NET -

OTHER OPERATING EXPENSE, NET - Other Operating Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Merger, acquisition and divestiture expense	$ 41	$ 12	$ 59	$ 22
Related-party R&D income	(21)	(22)	(41)	(48)
Asset impairments	0	5	0	5
Restructuring expense, net	2	3	6	5
Other income, net	0	(2)	(1)	(2)
Other operating expense, net	30	8	45	11
Affiliated Entity
Related Party Transaction [Line Items]
Related-party royalty income	(12)	(6)	(17)	(13)
Related-party R&D income	$ (1)	$ (4)	$ (2)	$ (6)

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation (in percent)	38%	24%	39%	26%

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw material and supplies	$ 301	$ 275
Work-in-progress	38	39
Finished goods	179	145
Inventories	$ 518	$ 459

OTHER CURRENT AND NON-CURRENT_4

OTHER CURRENT AND NON-CURRENT ASSETS (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Prepayments and other current assets:
Prepaid taxes	$ 12	$ 11
Derivative instruments	4	7
Customer return assets	7	6
Prepaid engineering	5	3
Deposits	4	3
Other	16	10
Prepayments and other current assets	48	40
Investments and long-term receivables:
Long-term receivables	39	71
Investment in equity affiliates	49	44
Investment in equity securities	4	2
Investments and long-term receivables	92	117
Other non-current assets:
Deferred income taxes	161	157
Operating leases	67	80
Other	21	25
Total other non-current assets	$ 249	$ 262

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES - Goodwill (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Gross goodwill balance		$ 603
Accumulated impairment losses		(113)
Net goodwill balance	$ 490	490
Fuel Systems
Goodwill [Roll Forward]
Gross goodwill balance		58
Accumulated impairment losses		0
Net goodwill balance	58
Aftermarket
Goodwill [Roll Forward]
Gross goodwill balance		545
Accumulated impairment losses		$ (113)
Net goodwill balance	$ 432

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLES - Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	$ 410	$ 407
Amortized intangible assets, accumulated amortization	129	115
Amortized intangible assets, net carrying amount	281	292
Unamortized trade names	140	140
Intangible assets, gross (excluding goodwill)	550	547
Other intangible assets, net	421	432
Patented and unpatented technology
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	144	144
Amortized intangible assets, accumulated amortization	35	30
Amortized intangible assets, net carrying amount	109	114
Customer Relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	266	263
Amortized intangible assets, accumulated amortization	94	85
Amortized intangible assets, net carrying amount	$ 172	$ 178
Minimum | Patented and unpatented technology
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Estimated useful lives (years)	14 years
Minimum | Customer Relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Estimated useful lives (years)	14 years
Maximum | Patented and unpatented technology
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Estimated useful lives (years)	15 years
Maximum | Customer Relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Estimated useful lives (years)	15 years

PRODUCT WARRANTY - Narrative (D

PRODUCT WARRANTY - Narrative (Details)	6 Months Ended
	Jun. 30, 2023
Minimum
Guarantor Obligations [Line Items]
Standard product warranty term (in years)	1 year
Maximum
Guarantor Obligations [Line Items]
Standard product warranty term (in years)	3 years

PRODUCT WARRANTY - Product Warr

PRODUCT WARRANTY - Product Warranty Accrual Accounts (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance, January 1	$ 60	$ 68
Adjustments of prior estimates	0	4
Provisions for current period sales	20	19
Payments	(23)	(22)
Other, primarily translation adjustment	(1)	(3)
Ending balance, June 30	56	66
Other current liabilities	29		$ 32
Other non-current liabilities	27		28
Total product warranty liability	$ 56	$ 66	$ 60

NOTES PAYABLE AND DEBT - Debt O

NOTES PAYABLE AND DEBT - Debt Outstanding (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Nonrelated Party
Long-term debt
Long-term debt	$ 25,000,000	$ 28,000,000
Less: current portion	0	0
Long-term debt, net of current portion	$ 25,000,000	28,000,000
Senior Notes | 5.000% Senior notes due 10/01/25 ($24 million par value)
Debt Instrument [Line Items]
Debt instrument stated interest rate	5%
Debt instrument face value	$ 24,000,000
Senior Notes | 5.000% Senior notes due 10/01/25 ($24 million par value) | Nonrelated Party
Long-term debt
Long-term debt	25,000,000	26,000,000
Other Long-Term Debt | Other long-term debt | Nonrelated Party
Long-term debt
Long-term debt	$ 0	$ 2,000,000

NOTES PAYABLE AND DEBT - Intere

NOTES PAYABLE AND DEBT - Interest Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Interest expense, net	$ 4	$ 4	$ 7	$ 8
Related Party
Debt Instrument [Line Items]
Interest expense	15	5	22	10
Interest income	(12)	(2)	(15)	(4)
Nonrelated Party
Debt Instrument [Line Items]
Interest expense	3	2	5	3
Interest income	$ (2)	$ (1)	$ (5)	$ (1)

NOTES PAYABLE AND DEBT - Narrat

NOTES PAYABLE AND DEBT - Narrative (Details)	Jul. 03, 2023 USD ($) period	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
5.000% Senior notes due 10/01/25 ($24 million par value) | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument face value		$ 24,000,000
Debt instrument stated interest rate		5%
5.000% Senior notes due 10/01/25 ($24 million par value) | Senior Notes | Estimate of Fair Value Measurement
Line of Credit Facility [Line Items]
Estimated fair value of senior unsecured notes		$ 23,000,000	$ 23,000,000
Debt, difference between fair value and carrying value		$ 2,000,000	$ 3,000,000
Credit Agreement | Subsequent Event
Line of Credit Facility [Line Items]
Revolving credit facility	$ 1,225,000,000
Long-term debt	$ 800,000,000
Credit Agreement | Subsequent Event | Fed Funds Effective Rate
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)	0.50%
Credit Agreement | Subsequent Event | SOFR
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)	1%
Credit spread adjustment (percent)	0.10%
Credit Agreement | Line of Credit | Revolving Credit Facility | Subsequent Event
Line of Credit Facility [Line Items]
Revolving credit facility	$ 500,000,000
Long-term debt	$ 75,000,000
Revolving Credit Facility and Senior Unsecured Term A Facility | Subsequent Event
Line of Credit Facility [Line Items]
Leverage ratio, maximum	3
Leverage ratio with elections for election period next succeeding testing period	3.50
Leverage ratio with elections next two succeeding testing periods after election period	3.25
Number of succeeding testing periods | period	2
Interest coverage ratio, minimum	3
Revolving Credit Facility and Senior Unsecured Term A Facility | Subsequent Event | SOFR, EURIBOR and SONIA | Minimum
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)	2.50%
Revolving Credit Facility and Senior Unsecured Term A Facility | Subsequent Event | SOFR, EURIBOR and SONIA | Maximum
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)	3%
Senior Unsecured Term Loan A Facility | Subsequent Event | SOFR
Line of Credit Facility [Line Items]
Credit spread adjustment (percent)	1%
Senior Unsecured Term Loan A Facility | Subsequent Event | SOFR | Minimum
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)	1.50%
Senior Unsecured Term Loan A Facility | Subsequent Event | SOFR | Maximum
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)	2%
Senior Unsecured Term Loan A Facility | Line of Credit | Subsequent Event
Line of Credit Facility [Line Items]
Debt instrument face value	$ 300,000,000
Long-term debt	$ 300,000,000
Senior Unsecured Term Loan B Facility | Subsequent Event | SOFR
Line of Credit Facility [Line Items]
Debt instrument stated interest rate	3%
Senior Unsecured Term Loan B Facility | Subsequent Event | SOFR | Maximum
Line of Credit Facility [Line Items]
Debt instrument stated interest rate	4%
Senior Unsecured Term Loan B Facility | Subsequent Event | SONIA
Line of Credit Facility [Line Items]
Debt instrument stated interest rate	0.0326%
Senior Unsecured Term Loan B Facility | Line of Credit | Subsequent Event
Line of Credit Facility [Line Items]
Debt instrument face value	$ 425,000,000
Long-term debt	425,000,000
Refinancing or replacement, threshold amount	$ 100,000,000

OTHER CURRENT AND NON-CURRENT_5

OTHER CURRENT AND NON-CURRENT LIABILITIES (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Other current liabilities:
Payroll and employee related	$ 72	$ 81
Income taxes payable	41	28
Product warranties (Note 10)	29	32
Operating leases	16	18
Accrued freight	17	13
Employee termination benefits (Note 3)	11	16
Deferred engineering	9	17
Other	79	84
Total other current liabilities	370	385
Other non-current liabilities:
Operating leases	54	67
Deferred income taxes	55	46
Uncertain tax positions	29	37
Product warranties (Note 10)	27	28
Other	14	19
Total other non-current liabilities	179	197
Customer related	$ 96	$ 96

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets:
Foreign currency contracts	$ 4	$ 7
Liabilities:
Foreign currency contracts	(2)	(1)
Fair Value, Inputs, Level 1
Assets:
Foreign currency contracts	0	0
Liabilities:
Foreign currency contracts	0	0
Fair Value, Inputs, Level 2
Assets:
Foreign currency contracts	4	7
Liabilities:
Foreign currency contracts	(2)	(1)
Fair Value, Inputs, Level 3
Assets:
Foreign currency contracts	0	0
Liabilities:
Foreign currency contracts	$ 0	$ 0

FINANCIAL INSTRUMENTS - Foreign

FINANCIAL INSTRUMENTS - Foreign Currency Derivative Contract (Details) € in Millions, ฿ in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions

Jun. 30, 2023 GBP (£)

Jun. 30, 2023 EUR (€)

Jun. 30, 2023 PLN (zł)

Jun. 30, 2023 USD ($)

Jun. 30, 2023 MXN ($)

Jun. 30, 2023 THB (฿)

Dec. 31, 2022 GBP (£)

Dec. 31, 2022 EUR (€)

Dec. 31, 2022 PLN (zł)

Dec. 31, 2022 USD ($)

Dec. 31, 2022 MXN ($)

Dec. 31, 2022 THB (฿)

Derivative [Line Items]

Derivative, notional amount, excluded non-significant traded pairings, threshold

$ 10

Chinese Renminbi | Foreign currency

Derivative [Line Items]

Derivative, notional amount

£ 13

€ 27

£ 23

€ 39

Euro | Foreign currency

Derivative [Line Items]

Derivative, notional amount

32

zł 0

$ 0

54

zł 49

$ 19

U.S. Dollar | Foreign currency

Derivative [Line Items]

Derivative, notional amount

£ 8

$ 0

฿ 0

£ 17

$ 992

฿ 1,790

FINANCIAL INSTRUMENTS - Balance

FINANCIAL INSTRUMENTS - Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative assets	$ 4	$ 7
Derivative liabilities	$ 2	$ 1
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepayments and other current assets	Prepayments and other current assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities

FINANCIAL INSTRUMENTS - AOCI (D

FINANCIAL INSTRUMENTS - AOCI (Details) - Foreign currency - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Gain (loss) expected to be reclassified to income in one year or less	$ 0
Deferred loss in AOCI at
Derivatives, Fair Value [Line Items]
Equity	$ (7)	$ (4)

FINANCIAL INSTRUMENTS - Income

FINANCIAL INSTRUMENTS - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivatives, Fair Value [Line Items]
Net sales	$ 887	$ 796	$ 1,722	$ 1,638
Cost of sales	698		1,361
Selling, general and administrative expenses	103		202
Other comprehensive income (loss)	6	(88)	27	(93)
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)	(4)		(2)
Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Net sales		796		1,638
Cost of sales		638		1,306
Selling, general and administrative expenses		101		201
Other comprehensive income (loss)		(88)	(93)
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)		2		1
Net sales
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)	0		0
Net sales | Cash Flow Hedging
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)		0		0
Cost of sales
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)	0		0
Cost of sales | Cash Flow Hedging
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)		0		0
Selling, general and administrative expenses
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)	$ 0		$ 0
Selling, general and administrative expenses | Cash Flow Hedging
Gain (loss) on cash flow hedging relationships:
Loss recognized in Other comprehensive income (loss)		$ 0		$ 0

FINANCIAL INSTRUMENTS - Derivat

FINANCIAL INSTRUMENTS - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain (loss) on derivatives not designated as hedges	$ 2	$ (2)	$ 4	$ (3)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of sales	Cost of sales	Cost of sales	Cost of sales

RETIREMENT BENEFIT PLANS - Narr

RETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Actual contribution to defined benefit pension plans	$ 2
Maximum
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected future employer contributions, current fiscal year	$ 3

RETIREMENT BENEFIT PLANS - Net

RETIREMENT BENEFIT PLANS - Net Benefit Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Service cost	$ 1	$ 0	$ 1	$ 0
Interest cost	11	6	21	12
Expected return on plan assets	(11)	(14)	(21)	(29)
Amortization of unrecognized loss	(1)	0	(1)	0
Net periodic benefit income	$ 0	$ (8)	$ 0	$ (17)

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1,792	$ 1,824	$ 1,643	$ 1,712
Net earnings	35	41	70	98
Other comprehensive income (loss)	6	(88)	27	(93)
Net transfers to BorgWarner		(53)
Purchase of noncontrolling interest				(3)
Net transfers from BorgWarner	159		252	10
Ending balance	1,992	1,724	1,992	1,724
Investment in Lieu of Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,859	1,767	1,731	1,647
Net earnings	35	41	70	98
Net transfers to BorgWarner		(53)
Net transfers from BorgWarner	159		252	10
Ending balance	2,053	1,755	2,053	1,755
Accumulated other comprehensive income (loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(67)	57	(88)	62
Other comprehensive income (loss)	6	(88)	27	(93)
Ending balance	$ (61)	(31)	$ (61)	(31)
Noncontrolling interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance				3
Purchase of noncontrolling interest				(3)
Ending balance		$ 0		$ 0

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023		Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,792	$ 1,824	$ 1,643		$ 1,712
Comprehensive income (loss) before reclassifications	6	(90)	27		(95)
Income taxes associated with comprehensive income before reclassifications		2			2
Ending balance	1,992	1,724	1,992		1,724
Accumulated other comprehensive income (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(67)	57	(88)		62
Ending balance	(61)	(31)	(61)		(31)
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(65)	2	(85)		5
Comprehensive income (loss) before reclassifications	10	(84)	30	[1]	(87)	[1]
Income taxes associated with comprehensive income before reclassifications		0			0
Ending balance	(55)	(82)	(55)		(82)
Defined benefit pension plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7)	58	(6)		59
Comprehensive income (loss) before reclassifications	0	(8)	(1)		(9)
Income taxes associated with comprehensive income before reclassifications		2			2
Ending balance	(7)	52	(7)		52
Hedge instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	5	(3)	3		(2)
Comprehensive income (loss) before reclassifications	(4)	2	(2)	[1]	1	[1]
Income taxes associated with comprehensive income before reclassifications		0			0
Ending balance	$ 1	$ (1)	$ 1		$ (1)
[1]Net of income taxes.

RELATED-PARTY TRANSACTIONS - Al

RELATED-PARTY TRANSACTIONS - Allocation of General Corporate and Other Expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 103		$ 202
Corporate Expense Allocation | Related Party
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 54	$ 39	$ 89	$ 69

RELATED-PARTY TRANSACTIONS - _2

RELATED-PARTY TRANSACTIONS - Allocation of General Corporate and Other Expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Net sales	$ 887	$ 796	$ 1,722	$ 1,638
Cost of sales	698		1,361
Affiliated Entity
Related Party Transaction [Line Items]
Net sales	4	2	6	5
Purchases from affiliate of related party	35	49	72	85
Cost of sales	$ 34	$ 41	$ 71	$ 84

RELATED-PARTY TRANSACTIONS - Re

RELATED-PARTY TRANSACTIONS - Related Party Royalty Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party
Related Party Transaction [Line Items]
Related-party royalty income	$ 12	$ 6	$ 17	$ 13

RELATED-PARTY TRANSACTIONS - _3

RELATED-PARTY TRANSACTIONS - Related-Party R&D (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Other operating expense, net	$ (30)	$ (8)	$ (45)	$ (11)
Research and Development Services | Related Party
Related Party Transaction [Line Items]
Other operating expense, net	$ 1	$ 4	$ 2	$ 6

RELATED-PARTY TRANSACTIONS - Du

RELATED-PARTY TRANSACTIONS - Due From BongWarner Narrative (Details) € in Millions, ฿ in Millions, $ in Millions	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Oct. 01, 2022	Dec. 31, 2021 USD ($)	Dec. 31, 2021 THB (฿)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 EUR (€)
Related Party
Related Party Transaction [Line Items]
Long-term debt	$ 643	$ 957
BorgWarner Inc. | 1.70% Term loan due May 2023 | Senior Notes
Related Party Transaction [Line Items]
Debt instrument stated interest rate				1.70%	1.70%
Debt instrument face value				$ 92	฿ 1,720
Long-term debt		36
BorgWarner Inc. | Revolving Credit Facility
Related Party Transaction [Line Items]
Credit facility, maximum borrowing capacity	$ 150
Debt instrument stated interest rate	6.64%
BorgWarner Inc. | Revolving Credit Facility | Related Party
Related Party Transaction [Line Items]
Credit facility, maximum borrowing capacity						$ 43	€ 40
Debt instrument stated interest rate			3.69%			0.65%	0.65%
Long-term line of credit		$ 40

RELATED-PARTY TRANSACTIONS - _4

RELATED-PARTY TRANSACTIONS - Due from/to BorgWarner (Details) - Related Party - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Receivable, Current [Abstract]
Accounts receivable	$ 64,000	$ 106,000
Short-term portion of loans receivable and other facilities	0	36,000
Due from BorgWarner, current	64,000	142,000
Other Receivable, Allowance for Credit Loss, Noncurrent	40,000	0
Other Receivable, Noncurrent [Abstract]
Cash pooling	6,000	168,000
Loans receivable	0	40,000
Due from BorgWarner, non-current	46,000	208,000
Accounts Payable, Current [Abstract]
Accounts payable	99,000	186,000
Short-term portion of notes payable and other facilities	0	94,000
Accrued interest payable	0	5,000
Due to BorgWarner, current	99,000	285,000
Other non-current liabilities:
Notes payable	634,000	921,000
Cash pooling	9,000	36,000
Long-term debt	$ 643,000	$ 957,000

RELATED-PARTY TRANSACTIONS - _5

RELATED-PARTY TRANSACTIONS - Due to BongWarner Narrative (Details)	1 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2021 USD ($) tranche	Dec. 31, 2022 USD ($)	Dec. 31, 2020 USD ($)
Related Party Transaction [Line Items]
Debt settled in equity prior to Spin-Off	$ 287,000,000
Related Party
Related Party Transaction [Line Items]
Accrued interest payable	0		$ 5,000,000
Notes payable	634,000,000		921,000,000
Short-term portion of notes payable and other facilities	0		94,000,000
BorgWarner Inc. | Related Party
Related Party Transaction [Line Items]
Debt Instrument, Carrying Amount At Period End, Exceeds Fair Value	(145,000,000)		(183,000,000)
BorgWarner Inc. | Related Party | Estimate of Fair Value Measurement
Related Party Transaction [Line Items]
Fair value of debt outstanding.	$ 489,000,000		$ 738,000,000
Term Loan Exchanged for 5.000% Senior Notes | BorgWarner Inc. | Related Party
Related Party Transaction [Line Items]
Debt instrument face value				$ 891,000,000
Debt instrument stated interest rate				3.25%
Accrued interest payable		$ 30,000,000
Senior Notes, 5.000%, Due 2025 | BorgWarner Inc. | Related Party
Related Party Transaction [Line Items]
Debt instrument stated interest rate				5%
Refinanced 5.000% Senior Notes | BorgWarner Inc. | Related Party
Related Party Transaction [Line Items]
Debt refinance, number of new tranches | tranche		2
New Term Loan, 1.40%, Due October 2024 | BorgWarner Inc. | Related Party
Related Party Transaction [Line Items]
Debt instrument face value		$ 368,000,000
Debt instrument stated interest rate		1.40%
New Term Loan, 2.20%, Due October 2029 | BorgWarner Inc. | Related Party
Related Party Transaction [Line Items]
Debt instrument face value		$ 553,000,000
Debt instrument stated interest rate		2.20%

RELATED-PARTY TRANSACTIONS - Tr

RELATED-PARTY TRANSACTIONS - Transfers (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Net transfers from BorgWarner	$ 159	$ 252	$ 10
Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow		58	(3)
Related Party
Related Party Transaction [Line Items]
Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow		58	(3)
Related Party | General financing activities
Related Party Transaction [Line Items]
Net transfers from BorgWarner		(63)	(104)
Related Party | Cash pooling and other equity settled balances with BorgWarner
Related Party Transaction [Line Items]
Net transfers from BorgWarner		(32)	51
Related Party | Related-party notes converted to equity
Related Party Transaction [Line Items]
Net transfers from BorgWarner		260	0
Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow		(260)	0
Related Party | Corporate allocations
Related Party Transaction [Line Items]
Net transfers from BorgWarner		89	69
Related Party | Research and development income from BorgWarner
Related Party Transaction [Line Items]
Net transfers from BorgWarner		(2)	(6)
Related Party | Stock-based compensation
Related Party Transaction [Line Items]
Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow		(4)	(5)
Related Party | Other non-cash activities with BorgWarner, net
Related Party Transaction [Line Items]
Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow		15	(17)
Related Party | Cash pooling and intercompany financing activities with BorgWarner, net
Related Party Transaction [Line Items]
Total net transfers from (to) BorgWarner per Condensed Combined Statements of Cash Flow		$ 55	$ 9

REPORTABLE SEGMENTS AND RELAT_3

REPORTABLE SEGMENTS AND RELATED INFORMATION - Narrative (Details)	6 Months Ended
	Jun. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

REPORTABLE SEGMENTS AND RELAT_4

REPORTABLE SEGMENTS AND RELATED INFORMATION - Net Sales and Total Assets by Reporting Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 887	$ 796	$ 1,722	$ 1,638
Total assets	3,869		3,869		$ 4,074
Inter-segment eliminations
Segment Reporting Information [Line Items]
Net sales	(59)	(52)	(121)	(103)
Operating Segments
Segment Reporting Information [Line Items]
Total assets	3,647		3,647		3,662
Corporate
Segment Reporting Information [Line Items]
Total assets	222		222		412
Fuel Systems
Segment Reporting Information [Line Items]
Net sales	551	473	1,060	1,011
Fuel Systems | Inter-segment eliminations
Segment Reporting Information [Line Items]
Net sales	56	51	114	99
Fuel Systems | Operating Segments
Segment Reporting Information [Line Items]
Net sales	607	524	1,174	1,110
Total assets	2,240		2,240		2,314
Aftermarket
Segment Reporting Information [Line Items]
Net sales	336	323	662	627
Aftermarket | Inter-segment eliminations
Segment Reporting Information [Line Items]
Net sales	3	1	7	4
Aftermarket | Operating Segments
Segment Reporting Information [Line Items]
Net sales	339	$ 324	669	$ 631
Total assets	$ 1,407		$ 1,407		$ 1,348

REPORTABLE SEGMENTS AND RELAT_5

REPORTABLE SEGMENTS AND RELATED INFORMATION - Earnings Before Interest and Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Segment Adjusted Operating Income	$ 56	$ 49	$ 114	$ 120
Corporate, including royalty income and stock-based compensation	5	18	9	31
Merger, acquisition and divestiture expense	41	12	59	22
Intangible asset amortization expense	7	7	14	14
Restructuring expense (Note 3)	2	3	6	5
Asset impairments and lease modifications	0	5	0	6
Equity in affiliates' earnings, net of tax	3	1	6	3
Interest expense, net	4	4	7	8
Other postretirement income	(1)	(8)	(1)	(17)
Earnings before income taxes	56	54	114	132
Provision for income taxes	21	13	44	34
Net earnings	35	41	70	98
Operating Segments
Segment Reporting Information [Line Items]
Segment Adjusted Operating Income	111	94	202	198
Fuel Systems
Segment Reporting Information [Line Items]
Restructuring expense (Note 3)	2		6
Fuel Systems | Operating Segments
Segment Reporting Information [Line Items]
Segment Adjusted Operating Income	62	43	105	109
Aftermarket | Operating Segments
Segment Reporting Information [Line Items]
Segment Adjusted Operating Income	$ 49	$ 51	$ 97	$ 89