PHINIA (PHIN) 10-Q 25 Apr 24 2024 Q1 Quarterly report Financial data

COVER

COVER - shares	3 Months Ended
	Mar. 31, 2024	Apr. 19, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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	Yes
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		45,682,984
Entity Central Index Key	0001968915
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 325	$ 365
Receivables, net	1,023	1,017
Inventories	489	487
Prepayments and other current assets	80	58
Total current assets	1,917	1,927
Property, plant and equipment, net	888	921
Investments and long-term receivables	120	115
Goodwill	491	499
Other intangible assets, net	403	417
Other non-current assets	159	162
Total assets	3,978	4,041
LIABILITIES AND EQUITY
Short-term borrowings and current portion of long-term debt	90	89
Accounts payable	612	639
Other current liabilities	420	420
Total current liabilities	1,122	1,148
Long-term debt	706	709
Retirement-related liabilities	133	132
Other non-current liabilities	167	165
Total liabilities	2,128	2,154
Commitments and contingencies (Note 15)
Common stock	1	1
Additional paid-in capital	2,018	2,031
Retained earnings	26	9
Accumulated other comprehensive loss	(153)	(131)
Treasury stock	(42)	(23)
Total equity	1,850	1,887
Total liabilities and equity	$ 3,978	$ 4,041

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 863	$ 835
Cost of sales	671	663
Gross profit	192	172
Selling, general and administrative expenses	104	99
Other operating expense, net	17	15
Operating income	71	58
Equity in affiliates’ earnings, net of tax	(3)	(3)
Interest expense	22	6
Interest income	(4)	(3)
Earnings before income taxes	56	58
Provision for income taxes	27	23
Net earnings	$ 29	$ 35
Earnings per share — basic (in dollars per share)	$ 0.63	$ 0.75
Earnings per share— diluted (in dollar per share)	$ 0.62	$ 0.75
Weighted average shares outstanding:
Basic (in shares)	46.1	47
Diluted (in shares)	46.5	47

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net earnings		$ 29	$ 35
Other comprehensive (loss) income
Foreign currency translation adjustments	[1]	(21)	20
Defined benefit pension plans	[1]	(1)	(1)
Hedge instruments	[1]	0	2
Total other comprehensive (loss) income		(22)	21
Comprehensive income		$ 7	$ 56
[1]Net of income taxes.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
OPERATING
Net earnings	$ 29	$ 35
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and tooling amortization	34	34
Intangible asset amortization	7	7
Restructuring expense, net of cash paid	2	3
Stock-based compensation expense	4	1
Deferred income tax expense	4	8
Other non-cash adjustments, net	2	(8)
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Receivables	(36)	(36)
Inventories	(6)	(29)
Prepayments and other current assets	(13)	1
Accounts payable and other current liabilities	6	(43)
Prepaid taxes and income taxes payable	12	24
Other assets and liabilities	(14)	(29)
Retirement benefit plan contributions	0	(1)
Net cash provided by (used in) operating activities	31	(33)
INVESTING
Capital expenditures, including tooling outlays	(43)	(38)
Proceeds from asset disposals and other, net	1	0
Net cash used in investing activities	(42)	(38)
FINANCING
Repayments of debt, including current portion	(3)	0
Dividends paid to PHINIA stockholders	(12)	0
Payments for purchase of treasury stock	(23)	0
Payments for stock-based compensation items	(3)
Net cash used in financing activities	(41)	(3)
Effect of exchange rate changes on cash	12	4
Net decrease in cash and cash equivalents	(40)	(70)
Cash and cash equivalents at beginning of year	365	251
Cash and cash equivalents at end of period	325	181
SUPPLEMENTAL CASH FLOW INFORMATION
Interest, net	14	0
Income taxes, net of refunds	18	1
Related Party
FINANCING
Cash outflows related to debt due to former parent	0	(100)
Cash inflows related to debt due from former parent	$ 0	30
Net transfers to former parent		$ 67

INTRODUCTION AND TRANSITION TO

INTRODUCTION AND TRANSITION TO STANDALONE COMPANY	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTRODUCTION AND TRANSITION TO STANDALONE COMPANY	INTRODUCTION The accompanying Condensed Consolidated Financial Statements and notes present the condensed consolidated statements of operations, balance sheets, and cash flows of PHINIA 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., a manufacturer and supplier of automotive industry components and parts (BorgWarner, or Former Parent) announced plans for the complete legal and structural separation of its Fuel Systems and Aftermarket businesses by the spin-off of its wholly-owned subsidiary, PHINIA, which was formed on February 9, 2023 (the Spin-Off).

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Prior to the Spin-Off on July 3, 2023, the historical financial statements of PHINIA were prepared on a stand-alone combined basis and were derived from BorgWarner’s consolidated financial statements and accounting records as if the Fuel Systems and Aftermarket businesses of BorgWarner had been part of PHINIA for all periods presented. Accordingly, for periods prior to July 3, 2023, our financial statements are presented on a combined basis and for the periods subsequent to July 3, 2023 are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). The Company's Condensed Consolidated Financial Statements were prepared in accordance with accounting principles in the United States of America (U.S. GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements were condensed or omitted as permitted by such rules and regulations. In the opinion of management, all normal recurring adjustments necessary for a fair statement of results have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The balance sheet as of December 31, 2023 was derived from the audited financial statements as of that date. Certain amounts for the prior periods presented were reclassified to conform to the current period presentation. The Company has also corrected for certain immaterial errors that impacted balance sheet footnote disclosures as of December 31, 2023. 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 Consolidated 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 prior to the Spin-Off. The Condensed Consolidated 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 were charged directly to the Company prior to Spin-Off. These centralized functions and programs included, but were not limited to research and development and information technology. A portion of BorgWarner’s total corporate expenses were allocated to the Company for services rendered by BorgWarner prior to the Spin-Off. These expenses included 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 were 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 prior to July 3, 2023. For the three months ended March 31, 2023, net corporate allocation expenses totaled $35 million. Corporate allocation expenses were primarily included in Selling, general and administrative expenses.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2024
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 and $1 million at March 31, 2024 and December 31, 2023, respectively, for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company’s Condensed Consolidated 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. As of March 31, 2024, the balance of contract liabilities was $7 million, all of which was recorded in Other non-current liabilities. As of December 31, 2023, the balance of contract liabilities was $7 million, of which $6 million was reflected in Other current liabilities and $1 million was reflected as Other non-current liabilities. These amounts are reflected as revenue over the term of the arrangement (typically three The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the three months ended March 31, 2024 and 2023. Refer to Note 18, “Reportable Segments And Related Information” to the Condensed Consolidated Financial Statements, for more information. Three Months Ended March 31, 2024 (In millions) Fuel Systems Aftermarket Total Americas $ 187 $ 192 $ 379 Europe 227 125 352 Asia 113 19 132 Total $ 527 $ 336 $ 863 Three Months Ended March 31, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 167 $ 198 $ 365 Europe 223 112 335 Asia 119 16 135 Total $ 509 $ 326 $ 835

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS	3 Months Ended
	Mar. 31, 2024
Research and Development [Abstract]
RESEARCH AND DEVELOPMENT COSTS	RESEARCH AND DEVELOPMENT COSTS The Company’s net Research & Development (R&D) expenditures are primarily included in Selling, general and administrative expenses of the Condensed Consolidated 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 March 31, (in millions) 2024 2023 Gross R&D expenditures $ 52 $ 49 Customer reimbursements (25) (20) Net R&D expenditures $ 27 $ 29

OTHER OPERATING EXPENSE, NET

OTHER OPERATING EXPENSE, NET	3 Months Ended
	Mar. 31, 2024
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 March 31, (in millions) 2024 2023 Separation and transaction costs $ 17 $ 18 Restructuring 2 4 Royalty income from Former Parent — (5) R&D income from Former Parent — (1) Other operating income, net (2) (1) Other operating expense, net $ 17 $ 15 Separation and transaction costs: During the three months ended March 31, 2024 and 2023, the Company recorded separation and transaction costs of $17 million and $18 million, respectively, primarily related to professional fees and other costs associated with the separation of the Company. Restructuring: The Company recorded $2 million and $4 million of restructuring costs for individually approved restructuring actions that primarily related to reductions in headcount in the three months ended March 31, 2024 and 2023, respectively, in the Fuel Systems segment. Royalty income from Former Parent: The Company participated in royalty arrangements with BorgWarner businesses prior to the Spin-Off, which involved the licensing of the Delphi Technologies trade name and product-related intellectual properties. R&D income from Former Parent: The Company provided application testing and other R&D services for other BorgWarner businesses prior to the Spin-Off.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The 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 March 31, 2024 and 2023 was 48% and 39%, respectively. The effective tax rate for the three months ended March 31, 2024 increased as compared to the prior year as a result of a change in the jurisdictional mix of pre-tax earnings as well as releases of unrecognized tax benefit reserves that occurred in the three months ended March 31, 2023 that did not occur in the three months ended March 31, 2024. 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 Former Parent’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 the Former Parent). The separate return method applies ASC 740 to the Condensed Consolidated 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 the Former Parent may not be included in these Condensed Consolidated Financial Statements. Further, the Company’s tax results as presented in the Condensed Consolidated 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 Condensed Consolidated Financial Statements may not be reflected in the Consolidated Financial Statements and tax returns of the Former Parent. Items such as net operating losses, other deferred taxes, income taxes payable, liabilities for uncertain tax positions and valuation allowances may exist in the Consolidated Financial Statements that may or may not exist in the Former Parent’s Consolidated Financial Statements. For periods subsequent to July 3, 2023, these items are reported based on tax filings and tax attributes of the Company’s legal entities. Indemnification assets and liabilities have been reported for amounts payable to or recoverable from the Former Parent under the Tax Matters Agreement for taxes associated with the period prior to the Spin-Off. The Tax Matters Agreement generally governs the Company’s and the Former Parent’s respective rights, responsibilities and obligations after the distribution with respect to taxes for any tax period ending on or before the distribution date, as well as tax periods beginning before and ending after the distribution date. Generally, the Former Parent is liable for all pre-distribution U.S. income taxes, foreign income taxes, certain non-income taxes attributable to the company’s business, and liabilities for taxes that were incurred as a result of restructuring activities undertaken to effectuate the separation. The Company is generally liable for all other taxes attributable to its business. The Organization for Economic Co-operation and Development (OECD) has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with certain aspects of Pillar 2 effective January 1, 2024 and other aspects effective January 1, 2025. While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which the Company operates have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar 2. The Company does not expect Pillar 2 to have a material impact on its effective tax rate or its consolidated results of operation, financial position or cash flows.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES A summary of Inventories is presented below: (in millions) March 31, December 31, Raw material and supplies $ 264 $ 286 Work-in-progress 51 46 Finished goods 174 155 Inventories $ 489 $ 487

OTHER CURRENT AND NON-CURRENT A

OTHER CURRENT AND NON-CURRENT ASSETS	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER CURRENT AND NON-CURRENT ASSETS	OTHER CURRENT AND NON-CURRENT ASSETS (in millions) March 31, December 31, Prepayments and other current assets: Prepaid taxes $ 36 $ 26 Prepaid software 12 5 Customer return assets 8 8 Prepaid engineering 6 3 Prepaid customer tooling 4 3 Deposits 3 3 Prepaid insurance 2 3 Other 9 7 Total prepayments and other current assets $ 80 $ 58 Investments and long-term receivables: Long-term receivables $ 50 $ 46 Investment in equity affiliates 49 48 Due from Former Parent 17 17 Investment in equity securities 4 4 Total investments and long-term receivables $ 120 $ 115 Other non-current assets: Deferred income taxes $ 61 $ 61 Operating leases 59 63 Customer incentive payments 10 10 Other 29 28 Total other non-current assets $ 159 $ 162

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Mar. 31, 2024
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 intangibles assigned to each of its reporting units for impairment by either performing a qualitative assessment or a quantitative analysis. No events or circumstances were noted in the first three months of 2024 requiring additional assessment or testing. A summary of the components in the carrying amount of goodwill as of March 31, 2024 and December 31, 2023 is as follows: (in millions) Fuel Systems Aftermarket Total Gross goodwill balance, December 31, 2023 $ 61 $ 551 $ 612 Accumulated impairment losses — (113) (113) Net goodwill balance, December 31, 2023 $ 61 $ 438 $ 499 Goodwill during the period: Translation adjustment (2) (6) (8) Net goodwill balance, March 31, 2024 $ 59 $ 432 $ 491 The Company’s other intangible assets, primarily from acquisitions, consist of the following: March 31, 2024 December 31, 2023 (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 $ 146 $ 43 $ 103 $ 149 $ 41 $ 108 Customer relationships 14 - 15 265 107 158 268 104 164 Total amortized intangible assets 411 150 261 417 145 272 Unamortized trade names 142 — 142 145 — 145 Total other intangible assets $ 553 $ 150 $ 403 $ 562 $ 145 $ 417

PRODUCT WARRANTY

PRODUCT WARRANTY	3 Months Ended
	Mar. 31, 2024
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) 2024 2023 Beginning balance, January 1 $ 56 $ 60 Provisions for current period sales 9 8 Payments (10) (13) Ending balance, March 31, $ 55 $ 55 The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows: (in millions) March 31, December 31, 2023 Other current liabilities $ 32 $ 30 Other non-current liabilities 23 26 Total product warranty liability $ 55 $ 56

NOTES PAYABLE AND DEBT

NOTES PAYABLE AND DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
NOTES PAYABLE AND DEBT	NOTES PAYABLE AND DEBT As of March 31, 2024 and December 31, 2023, the Company had debt outstanding as follows: (in millions) March 31, December 31, 2023 Short-term debt Short-term borrowings $ 75 $ 75 Long-term debt 5.000% Senior Notes due 10/01/25 ($24 million par value) $ 25 $ 25 Term Loan A Facility (net of $3 unamortized issuance costs) 293 295 Term Loan B Facility (net of $5 unamortized issuance costs and $15 unamortized discount) 403 403 Total long-term debt $ 721 $ 723 Less: current portion 15 14 Long-term debt, net of current portion $ 706 $ 709 As of March 31, 2024, the estimated fair values of the Company’s Senior Notes, Term Loan A Facility and Term Loan B Facility (each as defined below) totaled $753 million, which is $32 million higher than carrying value for the same period. As of December 31, 2023, the estimated fair value of the Company’s Senior Notes, Term Loan A Facility and Term Loan B Facility totaled $758 million, which is $35 million higher than carrying value for the same period. Fair market values of the long-term debt 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 (the 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 connection with the Spin-Off that occurred on the same date. As of March 31, 2024, the Company had $75 million of outstanding borrowings under the Revolving Facility (exclusive of $1 million of letters of credit outstanding). As of March 31, 2024, the Company had availability under the Revolving Facility of $424 million. The Company was in compliance with all covenants as of March 31, 2024. On April 4, 2024, the Company, as borrower, and certain subsidiaries of the Company, each acting as guarantors, entered into Amendment No. 1 to the Credit Agreement (the Credit Agreement Amendment). The Credit Agreement Amendment, among other things, (i) modifies certain covenants in the Credit Agreement, (ii) removes the mandatory prepayment based on quarterly and annual operating cash flow calculations, and (iii) increases the total net leverage ratio required to be satisfied under the Company’s financial covenant from 3.00:1.00 to 3.25:1.00 (subject to a step-up to 3.75:1.00 in connection with a qualifying acquisition for the fiscal quarter when such qualifying acquisition is consummated and the following three fiscal quarters). Senior Secured Notes due 2029 On April 4, 2024, the Company issued $525 million aggregate principal amount of 6.75% Senior Secured Notes due 2029 (the “2029 Notes”) pursuant to an indenture among the Company, as issuer, certain subsidiaries of the Company named as guarantors, and U.S. Bank Trust Company, National Association, as trustee and collateral agent. The 2029 Notes were sold to investors at 100% plus accrued interest, if any, from April 4, 2024 in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended. The net proceeds of the offering of the 2029 Notes were used to repay all of the Company’s outstanding borrowings and accrued interest under the Term Loan B Facility and the Revolving Facility and to pay fees and expenses in connection with the offering. During the second quarter of 2024, the Company expects to record a non-cash pre-tax loss on extinguishment of approximately $20 million related to the difference between the repayment amount and net carrying amount of the Term Loan B Facility. The 2029 Notes bear interest at a rate of 6.75% per annum. Interest on the 2029 Notes is payable semiannually on April 15 and October 15 of each year, commencing on October 15, 2024. The 2029 Notes will mature on April 15, 2029. The 2029 Notes are senior secured obligations of the Company and are jointly and severally, fully and unconditionally, guaranteed on a senior secured basis by each of the Company’s existing and future direct and indirect domestic subsidiaries that incurs or guarantees indebtedness under the Facilities. The 2029 Notes and the guarantees are secured by a first-priority security interest in substantially all of the Company’s and the guarantors’ assets, subject to certain excluded assets, exceptions and permitted liens, which security interest ranks equally with the first-priority security interest securing the Facilities. Senior Notes due 2025 In 2020, the Former Parent completed its acquisition of Delphi Technologies PLC (Delphi Technologies). In connection therewith, the Former Parent completed its offer to exchange Delphi Technologies’ outstanding 5.0% Senior Notes due 2025 (the 2025 Notes). Approximately 97% of the $800 million total outstanding principal amount of the 2025 Notes, were validly exchanged and cancelled for new BorgWarner notes. In connection with the Spin-Off, the obligations under the remaining $24 million in aggregate principal amount of the 2025 Notes were assumed by the Company.

OTHER CURRENT AND NON-CURRENT L

OTHER CURRENT AND NON-CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2024
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) March 31, December 31, Other current liabilities: Customer related $ 112 $ 109 Payroll and employee related 79 92 Income taxes payable 61 39 Product warranties (Note 9) 32 30 Accrued freight 21 21 Operating leases 17 17 Supplier related 13 14 Other non-income taxes 10 8 Employee termination benefits 7 9 Legal and professional fees 7 6 Deferred engineering 2 6 Deferred income — 6 Other 59 63 Total other current liabilities $ 420 $ 420 Other non-current liabilities: Deferred income taxes $ 60 $ 56 Operating leases 46 49 Product warranties (Note 9) 23 26 Deferred income 13 7 Uncertain tax positions 14 15 Other 11 12 Total other non-current liabilities $ 167 $ 165

RETIREMENT BENEFIT PLANS

RETIREMENT BENEFIT PLANS	3 Months Ended
	Mar. 31, 2024
Retirement Benefits [Abstract]
RETIREMENT BENEFIT PLANS	RETIREMENT BENEFIT PLANS PHINIA 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. The Company also has a number of defined benefit pension plans, and in connection with the completion of the Spin-Off was required to assume additional defined benefit plan liabilities, along with the associated deferred costs in Accumulated other comprehensive loss. 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 2024 range from $4 million to $8 million, of which less than $1 million has been contributed through the first three months of the year. The components of net periodic benefit income recorded in the Condensed Consolidated Statements of Operations are as follows: Three Months Ended March 31, (in millions) 2024 2023 Service cost $ 1 $ — Interest cost 11 10 Expected return on plan assets (10) (10) Amortization of unrecognized loss (1) — Net periodic benefit cost $ 1 $ — The non-service cost components of net periodic benefit cost are included in Earnings before income taxes in the Condensed Consolidated Statements of Operations.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY The changes of the Stockholders’ Equity items during the three months ended March 31, 2024 and 2023, are as follows: (in millions) Issued common stock Additional paid-in-capital Treasury stock Retained earnings Accumulated other comprehensive income (loss) Total equity Balance, December 31, 2023 $ 1 $ 2,031 $ (23) $ 9 (131) $ 1,887 Dividends declared (0.25 per share) — — — (12) — (12) Spin-Off related adjustments — (10) — — — (10) Share-based compensation expense — 4 — — — 4 Purchase of treasury stock — — (23) — — (23) Net issuance of executive stock plan — (7) 4 — — (3) Net earnings — — — 29 — 29 Other comprehensive loss — — — — (22) (22) Balance, March 31, 2024 $ 1 $ 2,018 $ (42) $ 26 $ (153) $ 1,850 (in millions) Former Parent investment Accumulated other comprehensive income (loss) Total equity Balance, December 31, 2022 $ 1,731 $ (88) $ 1,643 Net earnings 35 — 35 Other comprehensive income — 21 21 Net transfers from Former Parent 93 — 93 Balance, March 31, 2023 $ 1,859 $ (67) $ 1,792

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarizes the activity within accumulated other comprehensive loss: (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, December 31, 2023 $ (98) $ (33) $ — $ (131) Comprehensive loss before reclassifications (21) (2) — (23) Reclassification from accumulated other comprehensive (loss) income — 1 — 1 Ending Balance, March 31, 2024 $ (119) $ (34) $ — $ (153) (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) 20 (1) 2 21 Ending Balance, March 31, 2023 $ (65) $ (7) $ 5 $ (67)

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES In the normal course of 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 expect that an adverse outcome in any of these commercial and legal claims, actions and complaints that are currently pending will 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, financial position or cash flows.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONS Pursuant to the Spin-Off, the Former Parent ceased to be a related party to PHINIA and accordingly, no related party transactions or balances have been reported subsequent to July 3, 2023. In connection with the Spin-Off, we entered into a number of agreements with the Former Parent to govern the Spin-Off and provide a framework for the relationship between the parties going forward, including a Transition Services Agreement, Tax Matters Agreement, and certain Contract Manufacturing Agreements. The following discussion summarizes activity between the Company and the Former Parent that occurred prior to the completion of the Spin-Off. Allocation of General Corporate and Other Expenses The Condensed Consolidated Statements of Operations include expenses for certain centralized functions and other programs provided and administered by the Former Parent that were charged directly to the Company prior to the Spin-Off. In addition, for purposes of preparing the financial statements on a carve-out basis, a portion of the Former Parent’s total corporate expenses was allocated to the Company. Similarly, certain centralized expenses incurred by the Company prior to the Spin-Off on behalf of subsidiaries of the Former Parent had been allocated to the Former Parent. 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 periods prior to July 3, 2023. Net corporate allocation expenses, primarily related to separation and transaction costs, in three months ended March 31, 2023 totaled $35 million. These expenses were primarily included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. Royalty Income from Former Parent and R&D Income from Former Parent The Company participated in royalty arrangements and provided applications testing and other R&D services to the Former Parent prior to the Spin-Off. See Note 4, “Other operating expense, net” for additional information. Net Transfers from (to) Former Parent Net transfers from (to) Former Parent are included within Former Parent investment in the Condensed Consolidated Statements of Changes in Equity. The components of the transfers from (to) Former Parent are as follows: Three Months Ended March 31, (in millions) 2023 General financing activities $ 169 Cash pooling and other equity settled balances with Former Parent (70) Related-party notes converted to equity (40) Corporate allocations 35 Research and development income from Former Parent (1) Total net transfers from Former Parent $ 93 Exclude non-cash items: Stock-based compensation $ (1) Other non-cash activities with Former Parent, net (8) Related-party notes converted to equity 40 Cash pooling and intercompany financing activities with Former Parent, net (57) Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow $ 67

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The Company presents both basic and diluted earnings per share of common stock (EPS) amounts. Basic EPS is calculated by dividing net earnings by the weighted average shares of common stock outstanding during the reporting period. Diluted EPS is calculated by dividing net earnings by the weighted average shares of common stock and common stock equivalents outstanding during the reporting period. For periods prior to July 3, 2023, the denominator for basic and diluted earnings per share was calculated using the 47.0 million PHINIA ordinary shares outstanding immediately following the Spin-Off. The same number of shares was used to calculate basic and diluted earnings per share in those periods since no PHINIA equity awards were outstanding prior to the Spin-Off. The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the assumed proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized. The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock: Three Months Ended March 31, ( in millions, except per share amounts ) 2024 2023 Basic earnings per share: Net earnings $ 29 $ 35 Weighted average shares of common stock outstanding 46.1 47.0 Basic earnings per share of common stock $ 0.63 $ 0.75 Diluted earnings per share: Net earnings $ 29 $ 35 Weighted average shares of common stock outstanding 46.1 47.0 Effect of stock-based compensation 0.4 — Weighted average shares of common stock outstanding including dilutive shares 46.5 47.0 Diluted earnings per share of common stock $ 0.62 $ 0.75

REPORTABLE SEGMENTS AND RELATED

REPORTABLE SEGMENTS AND RELATED INFORMATION	3 Months Ended
	Mar. 31, 2024
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 (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, separation and transaction costs, intangible asset amortization expense, impairment charges, other net expenses and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments. Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments. The following tables show segment information and Segment AOI for the Company’s reportable segments: Net Sales by Reportable Segment Three Months Ended March 31, 2024 (in millions) Customers Inter-segment Net Fuel Systems $ 527 $ 49 $ 576 Aftermarket 336 2 338 Inter-segment eliminations — (51) (51) Total $ 863 $ — $ 863 Three Months Ended March 31, 2023 (in millions) Customers Inter-segment Net Fuel Systems $ 509 $ 58 $ 567 Aftermarket 326 4 330 Inter-segment eliminations — (62) (62) Total $ 835 $ — $ 835 Segment Adjusted Operating Income Three Months Ended March 31, (in millions) 2024 2023 Fuel Systems $ 55 $ 43 Aftermarket 60 48 Segment AOI 115 91 Corporate, including stock-based compensation 18 4 Separation and transaction costs 17 18 Intangible asset amortization expense 7 7 Restructuring expense 2 4 Equity in affiliates' earnings, net of tax (3) (3) Interest expense 22 6 Interest income (4) (3) Earnings before income taxes 56 58 Provision for income taxes 27 23 Net earnings $ 29 $ 35

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net earnings	$ 29	$ 35

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
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)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	Prior to the Spin-Off on July 3, 2023, the historical financial statements of PHINIA were prepared on a stand-alone combined basis and were derived from BorgWarner’s consolidated financial statements and accounting records as if the Fuel Systems and Aftermarket businesses of BorgWarner had been part of PHINIA for all periods presented. Accordingly, for periods prior to July 3, 2023, our financial statements are presented on a combined basis and for the periods subsequent to July 3, 2023 are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”).
Basis of Presentation	The Company's Condensed Consolidated Financial Statements were prepared in accordance with accounting principles in the United States of America (U.S. GAAP) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Certain information and footnote disclosures normally included in annual financial statements were condensed or omitted as permitted by such rules and regulations. In the opinion of management, all normal recurring adjustments necessary for a fair statement of results have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The balance sheet as of December 31, 2023 was derived from the audited financial statements as of that date. Certain amounts for the prior periods presented were reclassified to conform to the current period presentation. The Company has also corrected for certain immaterial errors that impacted balance sheet footnote disclosures as of December 31, 2023.
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 Consolidated 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 prior to the Spin-Off.

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the three months ended March 31, 2024 and 2023. Refer to Note 18, “Reportable Segments And Related Information” to the Condensed Consolidated Financial Statements, for more information. Three Months Ended March 31, 2024 (In millions) Fuel Systems Aftermarket Total Americas $ 187 $ 192 $ 379 Europe 227 125 352 Asia 113 19 132 Total $ 527 $ 336 $ 863 Three Months Ended March 31, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 167 $ 198 $ 365 Europe 223 112 335 Asia 119 16 135 Total $ 509 $ 326 $ 835

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS (Tables)	3 Months Ended
	Mar. 31, 2024
Research and Development [Abstract]
Schedule of 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 March 31, (in millions) 2024 2023 Gross R&D expenditures $ 52 $ 49 Customer reimbursements (25) (20) Net R&D expenditures $ 27 $ 29

OTHER OPERATING EXPENSE, NET (T

OTHER OPERATING EXPENSE, NET (Tables)	3 Months Ended
	Mar. 31, 2024
Other Income and Expenses [Abstract]
Schedule of Other Operating Expense, Net	Items included in Other operating expense, net consist of: Three Months Ended March 31, (in millions) 2024 2023 Separation and transaction costs $ 17 $ 18 Restructuring 2 4 Royalty income from Former Parent — (5) R&D income from Former Parent — (1) Other operating income, net (2) (1) Other operating expense, net $ 17 $ 15

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	A summary of Inventories is presented below: (in millions) March 31, December 31, Raw material and supplies $ 264 $ 286 Work-in-progress 51 46 Finished goods 174 155 Inventories $ 489 $ 487

OTHER CURRENT AND NON-CURRENT_2

OTHER CURRENT AND NON-CURRENT ASSETS (Tables)	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	(in millions) March 31, December 31, Prepayments and other current assets: Prepaid taxes $ 36 $ 26 Prepaid software 12 5 Customer return assets 8 8 Prepaid engineering 6 3 Prepaid customer tooling 4 3 Deposits 3 3 Prepaid insurance 2 3 Other 9 7 Total prepayments and other current assets $ 80 $ 58 Investments and long-term receivables: Long-term receivables $ 50 $ 46 Investment in equity affiliates 49 48 Due from Former Parent 17 17 Investment in equity securities 4 4 Total investments and long-term receivables $ 120 $ 115 Other non-current assets: Deferred income taxes $ 61 $ 61 Operating leases 59 63 Customer incentive payments 10 10 Other 29 28 Total other non-current assets $ 159 $ 162

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	A summary of the components in the carrying amount of goodwill as of March 31, 2024 and December 31, 2023 is as follows: (in millions) Fuel Systems Aftermarket Total Gross goodwill balance, December 31, 2023 $ 61 $ 551 $ 612 Accumulated impairment losses — (113) (113) Net goodwill balance, December 31, 2023 $ 61 $ 438 $ 499 Goodwill during the period: Translation adjustment (2) (6) (8) Net goodwill balance, March 31, 2024 $ 59 $ 432 $ 491
Schedule of Intangible Assets Gross Roll Forward	The Company’s other intangible assets, primarily from acquisitions, consist of the following: March 31, 2024 December 31, 2023 (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 $ 146 $ 43 $ 103 $ 149 $ 41 $ 108 Customer relationships 14 - 15 265 107 158 268 104 164 Total amortized intangible assets 411 150 261 417 145 272 Unamortized trade names 142 — 142 145 — 145 Total other intangible assets $ 553 $ 150 $ 403 $ 562 $ 145 $ 417

PRODUCT WARRANTY (Tables)

PRODUCT WARRANTY (Tables)	3 Months Ended
	Mar. 31, 2024
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	The following table summarizes the activity in the product warranty accrual accounts: (in millions) 2024 2023 Beginning balance, January 1 $ 56 $ 60 Provisions for current period sales 9 8 Payments (10) (13) Ending balance, March 31, $ 55 $ 55 The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows: (in millions) March 31, December 31, 2023 Other current liabilities $ 32 $ 30 Other non-current liabilities 23 26 Total product warranty liability $ 55 $ 56

NOTES PAYABLE AND DEBT (Tables)

NOTES PAYABLE AND DEBT (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of March 31, 2024 and December 31, 2023, the Company had debt outstanding as follows: (in millions) March 31, December 31, 2023 Short-term debt Short-term borrowings $ 75 $ 75 Long-term debt 5.000% Senior Notes due 10/01/25 ($24 million par value) $ 25 $ 25 Term Loan A Facility (net of $3 unamortized issuance costs) 293 295 Term Loan B Facility (net of $5 unamortized issuance costs and $15 unamortized discount) 403 403 Total long-term debt $ 721 $ 723 Less: current portion 15 14 Long-term debt, net of current portion $ 706 $ 709

OTHER CURRENT AND NON-CURRENT_3

OTHER CURRENT AND NON-CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Other Liabilities Disclosure [Abstract]
Schedule of Additional Details Related to Other Liabilities	Additional detail related to liabilities is presented in the table below: (in millions) March 31, December 31, Other current liabilities: Customer related $ 112 $ 109 Payroll and employee related 79 92 Income taxes payable 61 39 Product warranties (Note 9) 32 30 Accrued freight 21 21 Operating leases 17 17 Supplier related 13 14 Other non-income taxes 10 8 Employee termination benefits 7 9 Legal and professional fees 7 6 Deferred engineering 2 6 Deferred income — 6 Other 59 63 Total other current liabilities $ 420 $ 420 Other non-current liabilities: Deferred income taxes $ 60 $ 56 Operating leases 46 49 Product warranties (Note 9) 23 26 Deferred income 13 7 Uncertain tax positions 14 15 Other 11 12 Total other non-current liabilities $ 167 $ 165

RETIREMENT BENEFIT PLANS (Table

RETIREMENT BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2024
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Benefit Cost	The components of net periodic benefit income recorded in the Condensed Consolidated Statements of Operations are as follows: Three Months Ended March 31, (in millions) 2024 2023 Service cost $ 1 $ — Interest cost 11 10 Expected return on plan assets (10) (10) Amortization of unrecognized loss (1) — Net periodic benefit cost $ 1 $ —

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of Stockholders Equity	The changes of the Stockholders’ Equity items during the three months ended March 31, 2024 and 2023, are as follows: (in millions) Issued common stock Additional paid-in-capital Treasury stock Retained earnings Accumulated other comprehensive income (loss) Total equity Balance, December 31, 2023 $ 1 $ 2,031 $ (23) $ 9 (131) $ 1,887 Dividends declared (0.25 per share) — — — (12) — (12) Spin-Off related adjustments — (10) — — — (10) Share-based compensation expense — 4 — — — 4 Purchase of treasury stock — — (23) — — (23) Net issuance of executive stock plan — (7) 4 — — (3) Net earnings — — — 29 — 29 Other comprehensive loss — — — — (22) (22) Balance, March 31, 2024 $ 1 $ 2,018 $ (42) $ 26 $ (153) $ 1,850 (in millions) Former Parent investment Accumulated other comprehensive income (loss) Total equity Balance, December 31, 2022 $ 1,731 $ (88) $ 1,643 Net earnings 35 — 35 Other comprehensive income — 21 21 Net transfers from Former Parent 93 — 93 Balance, March 31, 2023 $ 1,859 $ (67) $ 1,792

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following tables summarizes the activity within accumulated other comprehensive loss: (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, December 31, 2023 $ (98) $ (33) $ — $ (131) Comprehensive loss before reclassifications (21) (2) — (23) Reclassification from accumulated other comprehensive (loss) income — 1 — 1 Ending Balance, March 31, 2024 $ (119) $ (34) $ — $ (153) (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) 20 (1) 2 21 Ending Balance, March 31, 2023 $ (65) $ (7) $ 5 $ (67)

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Net transfers from (to) Former Parent are included within Former Parent investment in the Condensed Consolidated Statements of Changes in Equity. The components of the transfers from (to) Former Parent are as follows: Three Months Ended March 31, (in millions) 2023 General financing activities $ 169 Cash pooling and other equity settled balances with Former Parent (70) Related-party notes converted to equity (40) Corporate allocations 35 Research and development income from Former Parent (1) Total net transfers from Former Parent $ 93 Exclude non-cash items: Stock-based compensation $ (1) Other non-cash activities with Former Parent, net (8) Related-party notes converted to equity 40 Cash pooling and intercompany financing activities with Former Parent, net (57) Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow $ 67

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Reconciliation	The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock: Three Months Ended March 31, ( in millions, except per share amounts ) 2024 2023 Basic earnings per share: Net earnings $ 29 $ 35 Weighted average shares of common stock outstanding 46.1 47.0 Basic earnings per share of common stock $ 0.63 $ 0.75 Diluted earnings per share: Net earnings $ 29 $ 35 Weighted average shares of common stock outstanding 46.1 47.0 Effect of stock-based compensation 0.4 — Weighted average shares of common stock outstanding including dilutive shares 46.5 47.0 Diluted earnings per share of common stock $ 0.62 $ 0.75

REPORTABLE SEGMENTS AND RELAT_2

REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Net Sales and Total Assets by Reporting Segment	Net Sales by Reportable Segment Three Months Ended March 31, 2024 (in millions) Customers Inter-segment Net Fuel Systems $ 527 $ 49 $ 576 Aftermarket 336 2 338 Inter-segment eliminations — (51) (51) Total $ 863 $ — $ 863 Three Months Ended March 31, 2023 (in millions) Customers Inter-segment Net Fuel Systems $ 509 $ 58 $ 567 Aftermarket 326 4 330 Inter-segment eliminations — (62) (62) Total $ 835 $ — $ 835
Schedule of Segment Earnings Before Interest and Income Taxes	Segment Adjusted Operating Income Three Months Ended March 31, (in millions) 2024 2023 Fuel Systems $ 55 $ 43 Aftermarket 60 48 Segment AOI 115 91 Corporate, including stock-based compensation 18 4 Separation and transaction costs 17 18 Intangible asset amortization expense 7 7 Restructuring expense 2 4 Equity in affiliates' earnings, net of tax (3) (3) Interest expense 22 6 Interest income (4) (3) Earnings before income taxes 56 58 Provision for income taxes 27 23 Net earnings $ 29 $ 35

INTRODUCTION AND TRANSITION T_2

INTRODUCTION AND TRANSITION TO STANDALONE COMPANY (Details)	Jun. 23, 2023 shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Conversion of stock, shares issued (in shares)	1
Conversion of stock, shares converted (in shares)	5
Stock conversion from Borgwarner to PHINIA (in shares)	0.2

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 104	$ 99
Corporate Expense Allocation | Related Party
Related Party Transaction [Line Items]
Selling, general and administrative expenses		$ 35

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Revenue from External Customer [Line Items]
Contract with customer, contract asset	$ 2	$ 1
Liability, current	0	6
Liability, noncurrent	13	7
Contract Liabilities
Revenue from External Customer [Line Items]
Liability, current	$ 7	7
Other Current Liabilities
Revenue from External Customer [Line Items]
Liability, current		6
Other non-current liabilities
Revenue from External Customer [Line Items]
Liability, noncurrent		$ 1
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 - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Net sales	$ 863	$ 835
Fuel Systems
Revenue from External Customer [Line Items]
Net sales	527	509
Aftermarket
Revenue from External Customer [Line Items]
Net sales	336	326
Americas
Revenue from External Customer [Line Items]
Net sales	379	365
Americas | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	187	167
Americas | Aftermarket
Revenue from External Customer [Line Items]
Net sales	192	198
Europe
Revenue from External Customer [Line Items]
Net sales	352	335
Europe | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	227	223
Europe | Aftermarket
Revenue from External Customer [Line Items]
Net sales	125	112
Asia
Revenue from External Customer [Line Items]
Net sales	132	135
Asia | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	113	119
Asia | Aftermarket
Revenue from External Customer [Line Items]
Net sales	$ 19	$ 16

RESEARCH AND DEVELOPMENT COST_2

RESEARCH AND DEVELOPMENT COSTS - Schedule of Research and Development Arrangement, Contract to Perform for Others (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Research and Development [Abstract]
Gross R&D expenditures	$ 52	$ 49
Customer reimbursements	(25)	(20)
Net R&D expenditures	$ 27	$ 29

OTHER OPERATING EXPENSE, NET -

OTHER OPERATING EXPENSE, NET - Schedule of Other Operating Expense (Income), Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Separation and transaction costs	$ 17	$ 18
Restructuring	2	4
R&D income from Former Parent	(25)	(20)
Other operating income, net	(2)	(1)
Other operating expense, net	17	15
Affiliated Entity
Related Party Transaction [Line Items]
Royalty income from Former Parent	0	(5)
R&D income from Former Parent	$ 0	$ (1)

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation (in percent)	48%	39%

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw material and supplies	$ 264	$ 286
Work-in-progress	51	46
Finished goods	174	155
Inventories	$ 489	$ 487

OTHER CURRENT AND NON-CURRENT_4

OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Prepayments and other current assets:
Prepaid taxes	$ 36	$ 26
Prepaid software	12	5
Customer return assets	8	8
Prepaid engineering	6	3
Prepaid customer tooling	4	3
Deposits	3	3
Prepaid insurance	2	3
Other	9	7
Total prepayments and other current assets	80	58
Investments and long-term receivables:
Long-term receivables	50	46
Investment in equity affiliates	49	48
Due from Former Parent	17	17
Investment in equity securities	4	4
Total investments and long-term receivables	120	115
Other non-current assets:
Deferred income taxes	61	61
Operating leases	59	63
Customer incentive payments	10	10
Other	29	28
Total other non-current assets	$ 159	$ 162

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES - Schedule of Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Goodwill [Line Items]
Gross goodwill balance		$ 612
Accumulated impairment losses		(113)
Net goodwill balance	$ 491	499
Goodwill [Roll Forward]
Translation adjustment	(8)
Net goodwill balance, March 31, 2024	491
Fuel Systems
Goodwill [Line Items]
Gross goodwill balance		61
Accumulated impairment losses		0
Net goodwill balance	59	61
Goodwill [Roll Forward]
Translation adjustment	(2)
Net goodwill balance, March 31, 2024	59
Aftermarket
Goodwill [Line Items]
Gross goodwill balance		551
Accumulated impairment losses		(113)
Net goodwill balance	432	$ 438
Goodwill [Roll Forward]
Translation adjustment	(6)
Net goodwill balance, March 31, 2024	$ 432

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLES - Schedule of Intangible Assets Gross Roll Forward (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	$ 411	$ 417
Total other intangible assets, accumulated amortization	150	145
Total amortized intangible assets, net carrying amount	261	272
Unamortized trade names	142	145
Total other intangible assets, gross carrying amount	553	562
Net carrying amount	403	417
Patented and unpatented technology
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	146	149
Total other intangible assets, accumulated amortization	43	41
Total amortized intangible assets, net carrying amount	103	108
Customer relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	265	268
Total other intangible assets, accumulated amortization	107	104
Total amortized intangible assets, net carrying amount	$ 158	$ 164
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)	3 Months Ended
	Mar. 31, 2024
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 - Schedule of

PRODUCT WARRANTY - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance, January 1	$ 56	$ 60
Provisions for current period sales	9	8
Payments	(10)	(13)
Ending balance, March 31,	55	55
Other current liabilities	32		$ 30
Other non-current liabilities	23		26
Total product warranty liability	$ 55	$ 55	$ 56

NOTES PAYABLE AND DEBT - Schedu

NOTES PAYABLE AND DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Jul. 03, 2023
Short-term debt
Short-term borrowings	$ 75,000,000	$ 75,000,000
Long-term debt
Long-term debt	706,000,000	709,000,000
Nonrelated Party
Long-term debt
Long-term debt	721,000,000	723,000,000
Less: current portion	15,000,000	14,000,000
Long-term debt, net of current portion	$ 706,000,000	709,000,000
5.000% Senior Notes due 10/01/25 ($24 million par value) | Senior Notes
Long-term debt
Debt instrument stated interest rate (percent)	5%
Debt instrument face value	$ 24,000,000
5.000% Senior Notes due 10/01/25 ($24 million par value) | Senior Notes | Nonrelated Party
Long-term debt
Long-term debt	25,000,000	25,000,000
Senior Unsecured Term Loan A Facility | Line of Credit
Long-term debt
Debt instrument face value			$ 300,000,000
Unamortized issuance costs	3,000,000
Long-term debt	293,000,000	295,000,000
Senior Unsecured Term Loan B Facility | Line of Credit
Long-term debt
Debt instrument face value			$ 425,000,000
Unamortized issuance costs	5,000,000
Unamortized discount	15,000,000
Long-term debt	$ 403,000,000	$ 403,000,000

NOTES PAYABLE AND DEBT - Narrat

NOTES PAYABLE AND DEBT - Narrative (Details)	3 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2020 USD ($)	Apr. 04, 2024 USD ($)	Apr. 03, 2024	Dec. 31, 2023 USD ($)	Jul. 03, 2023 USD ($)
Line of Credit Facility [Line Items]
Short-term borrowings and current portion of long-term debt		$ 75,000,000				$ 75,000,000
Leverage ratio, maximum				3.25	3
Leverage ratio, Step up for qualifying acquisition, maximum				3.75
Revolving Credit Facility
Line of Credit Facility [Line Items]
Short-term borrowings and current portion of long-term debt		75,000,000
Outstanding letters of credit		1,000,000
Additional availability		424,000,000
Senior Notes Due October 2025 | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument face value		$ 24,000,000
Debt instrument stated interest rate		5%
Senior Notes Due October 2025 | Estimate of Fair Value Measurement | Senior Notes
Line of Credit Facility [Line Items]
Estimated fair value of senior unsecured notes		$ 753,000,000
Debt, difference between fair value and carrying value		$ (32,000,000)
Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility							$ 1,225,000,000
Credit Agreement | Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Revolving credit facility							500,000,000
Senior Unsecured Term Loan A Facility | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument face value							300,000,000
Senior Unsecured Term Loan B Facility | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument face value							$ 425,000,000
Term Loan A & B Facility | Estimate of Fair Value Measurement | Senior Notes
Line of Credit Facility [Line Items]
Estimated fair value of senior unsecured notes						758,000,000
Debt, difference between fair value and carrying value						$ (35,000,000)
Senior Notes Due 2029
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)		6.75%
Senior Notes Due 2029 | Senior Notes | Subsequent Event
Line of Credit Facility [Line Items]
Debt instrument face value				$ 525,000,000
Debt instrument stated interest rate				6.75%
Accrued interest				100%
Senior Notes Due 2029 | Line of Credit | Forecast
Line of Credit Facility [Line Items]
Loss on extinguishment of debt	$ 20,000,000
Senior Notes Due 2025
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (percent)			5%
Senior Notes Due 2025 | Senior Notes
Line of Credit Facility [Line Items]
Percentage of exchanged and cancelled notes			97%
Long-term debt, gross			$ 800,000,000
Liabilities assumed in connection with spin-off transaction			$ 24,000,000

OTHER CURRENT AND NON-CURRENT_5

OTHER CURRENT AND NON-CURRENT LIABILITIES - Schedule of Additional Details Related to Other Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Other current liabilities:
Customer related	$ 112	$ 109
Payroll and employee related	79	92
Income taxes payable	61	39
Product warranties	32	30
Accrued freight	21	21
Operating leases	17	17
Supplier related	13	14
Other non-income taxes	10	8
Employee termination benefits	7	9
Legal and professional fees	7	6
Deferred engineering	2	6
Deferred income	0	6
Other	59	63
Other current liabilities	420	420
Other non-current liabilities:
Deferred income taxes	60	56
Operating leases	46	49
Product warranties	23	26
Deferred income	13	7
Uncertain tax positions	14	15
Other	11	12
Total other non-current liabilities	$ 167	$ 165

RETIREMENT BENEFIT PLANS - Narr

RETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Actual contribution to defined benefit pension plans	$ 1
Maximum
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected future employer contributions, current fiscal year	8
Minimum
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected future employer contributions, current fiscal year	$ 4

RETIREMENT BENEFIT PLANS - Sche

RETIREMENT BENEFIT PLANS - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Retirement Benefits [Abstract]
Service cost	$ 1	$ 0
Interest cost	11	10
Expected return on plan assets	(10)	(10)
Amortization of unrecognized loss	(1)	$ 0
Net periodic benefit cost	$ 1

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1,887	$ 1,643
Dividends declared (0.25 per share)	(12)
Spin-Off related adjustments	(10)
Share-based compensation expense	4
Purchase of treasury stock	(23)
Net issuance of executive stock plan	(3)
Net earnings	29	35
Other comprehensive income (loss)	(22)	21
Net transfers from Former Parent		93
Ending balance	$ 1,850	1,792
Dividends declared (in dollar per share)	$ 0.25
Issued common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1
Ending balance	1
Additional paid-in-capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,031
Spin-Off related adjustments	(10)
Share-based compensation expense	4
Net issuance of executive stock plan	(7)
Ending balance	2,018
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(23)
Purchase of treasury stock	(23)
Net issuance of executive stock plan	4
Ending balance	(42)
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	9
Dividends declared (0.25 per share)	(12)
Net earnings	29
Ending balance	26
Former Parent investment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		1,731
Net earnings		35
Net transfers from Former Parent		93
Ending balance		1,859
Accumulated other comprehensive income (loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(131)	(88)
Other comprehensive income (loss)	(22)	21
Ending balance	$ (153)	$ (67)

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,887	$ 1,643
Comprehensive loss before reclassifications	(23)	21
Reclassification from accumulated other comprehensive (loss) income	1
Ending balance	1,850	1,792
Accumulated other comprehensive income (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(131)	(88)
Ending balance	(153)	(67)
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(98)	(85)
Comprehensive loss before reclassifications	(21)	20
Reclassification from accumulated other comprehensive (loss) income	0
Ending balance	(119)	(65)
Defined benefit pension plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(33)	(6)
Comprehensive loss before reclassifications	(2)	(1)
Reclassification from accumulated other comprehensive (loss) income	1
Ending balance	(34)	(7)
Hedge instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	3
Comprehensive loss before reclassifications	0	2
Reclassification from accumulated other comprehensive (loss) income	0
Ending balance	$ 0	$ 5

RELATED-PARTY TRANSACTIONS - Al

RELATED-PARTY TRANSACTIONS - Allocation of General Corporate and Other Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 104	$ 99
Corporate Expense Allocation | Related Party
Related Party Transaction [Line Items]
Selling, general and administrative expenses		$ 35

RELATED-PARTY TRANSACTIONS - Sc

RELATED-PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Related Party Transaction [Line Items]
Net transfers from Former Parent	$ 93
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow	67
Related Party | General financing activities
Related Party Transaction [Line Items]
Net transfers from Former Parent	169
Related Party | Cash pooling and other equity settled balances with Former Parent
Related Party Transaction [Line Items]
Net transfers from Former Parent	(70)
Related Party | Related-party notes converted to equity
Related Party Transaction [Line Items]
Net transfers from Former Parent	(40)
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow	40
Related Party | Corporate allocations
Related Party Transaction [Line Items]
Net transfers from Former Parent	35
Related Party | Research and development income from Former Parent
Related Party Transaction [Line Items]
Net transfers from Former Parent	(1)
Related Party | Stock-based compensation
Related Party Transaction [Line Items]
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow	(1)
Related Party | Other non-cash activities with Former Parent, net
Related Party Transaction [Line Items]
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow	(8)
Related Party | Cash pooling and intercompany financing activities with Former Parent, net
Related Party Transaction [Line Items]
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow	$ (57)

EARNINGS PER SHARE - Narrative

EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions		3 Months Ended
	Jul. 02, 2023	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Weighted average shares of common stock outstanding (in shares)	47	46.1	47

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
	Jul. 02, 2023	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net earnings		$ 29	$ 35
Weighted average shares of common stock outstanding (in shares)	47	46.1	47
Basic earnings per share of common stock (in dollar per share)		$ 0.63	$ 0.75
Effect of stock-based compensation (in shares)		0.4	0
Weighted average shares of common stock outstanding including dilutive shares (in shares)		46.5	47
Diluted earnings per share of common stock (in dollars per share)		$ 0.62	$ 0.75

REPORTABLE SEGMENTS AND RELAT_3

REPORTABLE SEGMENTS AND RELATED INFORMATION - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	2

REPORTABLE SEGMENTS AND RELAT_4

REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Net Sales and Total Assets by Reporting Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Net sales	$ 863	$ 835
Operating Segments
Segment Reporting Information [Line Items]
Net sales	863	835
Operating Segments | Customers
Segment Reporting Information [Line Items]
Net sales	863	835
Operating Segments | Inter-segment
Segment Reporting Information [Line Items]
Net sales	0	0
Inter-segment eliminations
Segment Reporting Information [Line Items]
Net sales	(51)	(62)
Inter-segment eliminations | Customers
Segment Reporting Information [Line Items]
Net sales	0	0
Inter-segment eliminations | Inter-segment
Segment Reporting Information [Line Items]
Net sales	(51)	(62)
Fuel Systems
Segment Reporting Information [Line Items]
Net sales	527	509
Fuel Systems | Operating Segments
Segment Reporting Information [Line Items]
Net sales	576	567
Fuel Systems | Operating Segments | Customers
Segment Reporting Information [Line Items]
Net sales	527	509
Fuel Systems | Operating Segments | Inter-segment
Segment Reporting Information [Line Items]
Net sales	49	58
Aftermarket
Segment Reporting Information [Line Items]
Net sales	336	326
Aftermarket | Operating Segments
Segment Reporting Information [Line Items]
Net sales	338	330
Aftermarket | Operating Segments | Customers
Segment Reporting Information [Line Items]
Net sales	336	326
Aftermarket | Operating Segments | Inter-segment
Segment Reporting Information [Line Items]
Net sales	$ 2	$ 4

REPORTABLE SEGMENTS AND RELAT_5

REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Segment Earnings Before Interest and Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Segment AOI	$ 71	$ 58
Corporate, including stock-based compensation	18	4
Separation and transaction costs	17	18
Intangible asset amortization expense	7	7
Restructuring expense	2	4
Equity in affiliates' earnings, net of tax	3	3
Interest expense	22	6
Interest income	(4)	(3)
Earnings before income taxes	56	58
Provision for income taxes	27	23
Net earnings	29	35
Operating Segments
Segment Reporting Information [Line Items]
Segment AOI	115	91
Fuel Systems | Operating Segments
Segment Reporting Information [Line Items]
Segment AOI	55	43
Aftermarket | Operating Segments
Segment Reporting Information [Line Items]
Segment AOI	$ 60	$ 48