PHINIA (PHIN) 10-Q 31 Oct 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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		42,058,194
Entity Central Index Key	0001968915
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 477	$ 365
Receivables, net	920	1,017
Inventories	486	487
Prepayments and other current assets	93	58
Total current assets	1,976	1,927
Property, plant and equipment, net	882	921
Investments and long-term receivables	125	115
Goodwill	496	499
Other intangible assets, net	397	417
Other non-current assets	148	162
Total assets	4,024	4,041
LIABILITIES AND EQUITY
Short-term borrowings and current portion of long-term debt	0	89
Accounts payable	588	639
Other current liabilities	434	420
Total current liabilities	1,022	1,148
Long-term debt	987	709
Retirement-related liabilities	137	132
Other non-current liabilities	174	165
Total liabilities	2,320	2,154
Commitments and contingencies (Note 16)
Common stock	1	1
Additional paid-in capital	1,974	2,031
Retained earnings	50	9
Accumulated other comprehensive loss	(115)	(131)
Treasury stock	(206)	(23)
Total equity	1,704	1,887
Total liabilities and equity	$ 4,024	$ 4,041

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 839	$ 896	$ 2,570	$ 2,618
Cost of sales	652	719	2,003	2,080
Gross profit	187	177	567	538
Selling, general and administrative expenses	108	104	324	306
Other operating expense, net	13	27	35	72
Operating income	66	46	208	160
Equity in affiliates’ earnings, net of tax	(3)	(2)	(8)	(8)
Interest income	(4)	(4)	(12)	(9)
Interest expense	20	22	81	34
Other postretirement expense (income), net	0	0	1	(1)
Earnings before income taxes	53	30	146	144
Provision for income taxes	22	31	72	75
Net earnings (loss)	$ 31	$ (1)	$ 74	$ 69
Earnings (loss) per share — basic (in dollars per share)	$ 0.72	$ (0.02)	$ 1.66	$ 1.46
Earnings (loss) per share— diluted (in dollars per share)	$ 0.70	$ (0.02)	$ 1.63	$ 1.46
Weighted average shares outstanding:
Basic (in shares)	43.1	47	44.7	47
Diluted (in shares)	44.1	47	45.4	47

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net earnings (loss)		$ 31	$ (1)	$ 74	$ 69
Other comprehensive (loss) income
Foreign currency translation adjustments	[1]	59	(46)	20	(16)
Defined benefit pension plans	[1]	(2)	(2)	(4)	(3)
Hedge instruments	[1]	0	(1)	0	(3)
Total other comprehensive income (loss)		57	(49)	16	(22)
Comprehensive income (loss)		$ 88	$ (50)	$ 90	$ 47
[1]Net of income taxes.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
OPERATING
Net cash provided by operating activities (see Note 20)	$ 235	$ 188
INVESTING
Capital expenditures, including tooling outlays	(85)	(117)
Payments for investment in equity securities	(1)	(2)
Proceeds from asset disposals and other, net	2	2
Net cash used in investing activities	(84)	(117)
FINANCING
Proceeds from issuance of long-term debt, net of discount	975	708
Payments for debt issuance costs	(15)	(14)
Repayments of debt, including current portion	(722)	(1)
(Repayments) borrowings under Revolving Facility	(75)	75
Dividends paid to PHINIA stockholders	(33)	(12)
Payments for purchase of treasury stock	(188)	(9)
Payments for stock-based compensation items	(3)
Net cash (used in) provided by financing activities	(61)	50
Effect of exchange rate changes on cash	22	(5)
Net increase in cash and cash equivalents	112	116
Cash and cash equivalents at beginning of year	365	251
Cash and cash equivalents at end of period	477	367
Related Party
FINANCING
Cash outflows related to debt due to Former Parent	0	(728)
Cash inflows related to debt due from Former Parent	$ 0	36
Net transfers to Former Parent		$ (5)

INTRODUCTION

INTRODUCTION	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTRODUCTION	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 are designed to optimize performance, increase efficiency and reduce emissions for combustion and hybrid propulsion systems for commercial vehicles and industrial applications (medium-duty and heavy-duty trucks, off-highway construction, marine, aviation, and agricultural) and light vehicles (passenger cars, trucks, vans and sport-utility). The Company is a global supplier to most major original equipment manufacturers (OEMs) seeking to meet evolving and 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	9 Months Ended
	Sep. 30, 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 standalone 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 and nine months ended September 30, 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 nine months ended September 30, 2023, net corporate allocation expenses totaled $89 million. Corporate allocation expenses were primarily included in Selling, general and administrative expenses. New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” It requires incremental disclosures related to an entity’s reportable segments, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods beginning after December 15, 2024. The Company will provide the incremental disclosures in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires entities to disaggregate information related to the effective tax rate reconciliation and income taxes paid. This guidance is effective for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact of this ASU on its financial statements.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	REVENUE FROM CONTRACTS WITH CUSTOMERS The Company manufactures and sells products and solutions, 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 $1 million at September 30, 2024 and December 31, 2023 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 September 30, 2024, the balance of contract liabilities was $7 million, of which $3 million was reflected in Other current liabilities and $4 million was reflected 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 and nine months ended September 30, 2024 and 2023. Refer to Note 19, “Reportable Segments And Related Information” to the Condensed Consolidated Financial Statements, for more information. Three Months Ended September 30, 2024 (In millions) Fuel Systems Aftermarket Total Americas $ 172 $ 195 $ 367 Europe 199 141 340 Asia 113 19 132 Total $ 484 $ 355 $ 839 Three Months Ended September 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 199 $ 193 $ 392 Europe 232 122 354 Asia 130 20 150 Total $ 561 $ 335 $ 896 Nine Months Ended September 30, 2024 (In millions) Fuel Systems Aftermarket Total Americas $ 536 $ 579 $ 1,115 Europe 653 403 1,056 Asia 340 59 399 Total $ 1,529 $ 1,041 $ 2,570 Nine Months Ended September 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 537 $ 591 $ 1,128 Europe 711 350 1,061 Asia 373 56 429 Total $ 1,621 $ 997 $ 2,618

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Gross R&D expenditures $ 50 $ 45 $ 154 $ 143 Customer reimbursements (24) (21) (71) (62) Net R&D expenditures $ 26 $ 24 $ 83 $ 81

OTHER OPERATING EXPENSE, NET

OTHER OPERATING EXPENSE, NET	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Separation and transaction costs $ 4 $ 25 $ 24 $ 84 Restructuring 6 4 11 10 Losses for other one-time events 4 — 4 — Royalty income from Former Parent — — — (17) R&D income from Former Parent — — — (2) Other operating income, net (1) (2) (4) (3) Other operating expense, net $ 13 $ 27 $ 35 $ 72 Separation and transaction costs : During the three and nine months ended September 30, 2024, the Company recorded separation and transaction costs of $4 million and $24 million, respectively. Separation and transaction costs primarily relate to professional fees and other costs associated with the separation of the Company, including the management of certain historical liabilities allocated to the Company in connection with the Spin-Off. During the three and nine months ended September 30, 2023, the Company recorded separation and transaction costs of $25 million and $84 million, respectively, primarily related to professional fees and other costs associated with the separation of the Company. Restructuring: During the three and nine months ended September 30, 2024, the Company recorded $6 million and $11 million, respectively, of restructuring costs for individually approved restructuring actions that primarily related to reductions in headcount in the Fuel Systems segment. During the three and nine months ended September 30, 2023, the Company recorded $4 million and $10 million, respectively, of restructuring costs for individually approved restructuring actions that primarily related to reductions in headcount in the Fuel Systems segment. Losses for other one-time events: During the three and nine months ended September 30, 2024, the Company recorded $4 million of costs incurred primarily due to a supplier fire. 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	9 Months Ended
	Sep. 30, 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 September 30, 2024 and 2023 was 42% and 103%, respectively. The effective tax rate for the three months ended September 30, 2024 decreased as compared to the prior year as a result of a change in the jurisdictional mix of pre-tax earnings, most notably a decrease in pre-tax losses where no benefit is recognized and a decrease in U.S. tax on foreign earnings. The Company’s effective tax rate for the nine months ended September 30, 2024 and 2023 was 49% and 52%, respectively. The effective tax rate for the nine months ended September 30, 2024 decreased as compared to the prior year as a result of a change in the jurisdictional mix of pre-tax earnings, most notably a decrease in pre-tax losses where no benefit is recognized and a decrease in U.S. tax on foreign earnings. 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 Two), with certain aspects of Pillar Two 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 Two, certain countries in which the Company operates have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar Two. The Company does not expect Pillar Two to have a material impact on its effective tax rate or its consolidated results of operation, financial position or cash flows.

RECEIVABLES, NET

RECEIVABLES, NET	9 Months Ended
	Sep. 30, 2024
Text Block [Abstract]
RECEIVABLES, NET	RECEIVABLES, NET The table below provides details of Receivables, net as of September 30, 2024 and December 31, 2023: (in millions) September 30, December 31, Receivables, net: Customers $ 633 $ 658 Indirect taxes 136 167 Due from Former Parent 102 159 Other 59 44 Gross receivables 930 1,028 Allowance for credit losses (10) (11) Total receivables, net $ 920 $ 1,017

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES A summary of Inventories is presented below: (in millions) September 30, December 31, Raw material and supplies $ 255 $ 286 Work-in-progress 45 46 Finished goods 186 155 Inventories $ 486 $ 487

OTHER CURRENT AND NON-CURRENT A

OTHER CURRENT AND NON-CURRENT ASSETS	9 Months Ended
	Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER CURRENT AND NON-CURRENT ASSETS	OTHER CURRENT AND NON-CURRENT ASSETS (in millions) September 30, December 31, Prepayments and other current assets: Prepaid taxes $ 42 $ 26 Prepaid engineering 13 3 Prepaid software 10 5 Customer return assets 7 8 Prepaid customer tooling 6 3 Prepaid insurance 6 3 Other 9 10 Total prepayments and other current assets $ 93 $ 58 Investments and long-term receivables: Long-term receivables $ 55 $ 46 Investment in equity affiliates 48 48 Due from Former Parent 18 17 Investment in equity securities 4 4 Total investments and long-term receivables $ 125 $ 115 Other non-current assets: Deferred income taxes $ 57 $ 61 Operating leases 55 63 Customer incentive payments 10 10 Other 26 28 Total other non-current assets $ 148 $ 162

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	9 Months Ended
	Sep. 30, 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 nine months of 2024 requiring additional assessment or testing. A summary of the components in the carrying amount of goodwill as of September 30, 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 — (3) (3) Net goodwill balance, September 30, 2024 $ 61 $ 435 $ 496 The Company’s other intangible assets, primarily from acquisitions, consist of the following: September 30, 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 $ 150 $ 50 $ 100 $ 149 $ 41 $ 108 Customer relationships 14 - 15 267 116 151 268 104 164 Total amortized intangible assets 417 166 251 417 145 272 Unamortized trade names 146 — 146 145 — 145 Total other intangible assets $ 563 $ 166 $ 397 $ 562 $ 145 $ 417

PRODUCT WARRANTY

PRODUCT WARRANTY	9 Months Ended
	Sep. 30, 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 Adjustments of prior estimates — 1 Provisions for current period sales 27 32 Payments (30) (35) Other, primarily translation adjustment 1 (1) Ending balance, September 30, $ 54 $ 57 The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows: (in millions) September 30, December 31, 2023 Other current liabilities $ 28 $ 30 Other non-current liabilities 26 26 Total product warranty liability $ 54 $ 56

NOTES PAYABLE AND DEBT

NOTES PAYABLE AND DEBT	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
NOTES PAYABLE AND DEBT	NOTES PAYABLE AND DEBT As of September 30, 2024 and December 31, 2023, the Company had debt outstanding as follows: (in millions) September 30, December 31, 2023 Short-term debt Short-term borrowings $ — $ 75 Long-term debt 5.000% Senior Notes due 10/01/25 ($24 million par value) $ 24 $ 25 6.750% Senior Secured Notes due 04/15/29 ($525 million par value) 517 — 6.625% Senior Notes due 10/15/32 ($450 million par value) 444 — Term Loan A Facility due 07/03/28 ($298 million par value) — 295 Term Loan B Facility due 07/03/28 ($424 million par value) — 403 Finance leases 2 — Total long-term debt $ 987 $ 723 Less: current portion — 14 Long-term debt, net of current portion $ 987 $ 709 As of September 30, 2024, the estimated fair values of the Company’s long-term debt totaled $1,020 million, which is $35 million higher than carrying value for the same period. As of December 31, 2023, the estimated fair value of the Company’s long-term debt 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 (as amended, 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, maturing on July 3, 2028. As of September 30, 2024, the Company had no outstanding borrowings under the Revolving Facility, and availability of $499 million. The Term Loan B Facility was fully repaid in connection with the issuance of the 6.75% Senior Secured Notes due 2029 on April 4, 2024, as discussed below. The Term Loan A Facility was fully repaid in connection with the issuance of the 6.625% Senior Notes due 2032 on September 17, 2024, as discussed below. The Company was in compliance with all covenants as of September 30, 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 No. 1). The Credit Agreement Amendment No. 1, among other things, modified certain covenants in the Credit Agreement to be more favorable to the Company, and increased 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). On September 17, 2024, the Company, as borrower, and certain subsidiaries of the Company, each acting as guarantors, entered into Amendment No. 2 to the Credit Agreement (the Credit Agreement Amendment No. 2). The Credit Agreement Amendment No. 2, among other things, (i) reduced the applicable margin with respect to the loans under the Revolving Facility and (ii) modified certain covenants in the Credit Agreement. Senior Unsecured Notes due 2032 On September 17, 2024, the Company issued $450 million aggregate principal amount of 6.625% Senior Notes due 2032 (the 2032 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. The 2032 Notes were sold to investors at 100% plus accrued interest, if any, from September 17, 2024 in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act). The net proceeds of the offering of the 2032 Notes were used to repay all of the Company’s outstanding borrowings under the Term Loan A Facility, to pay fees and expenses in connection with the offering, and for general corporate purposes. During the third quarter of 2024, the Company recorded a non-cash pre-tax loss on extinguishment of $2 million related to the difference between the repayment amount and net carrying amount of the Term Loan A Facility, which is included in the Interest expense line item on the Condensed Consolidated Statements of Operations. The 2032 Notes bear interest at a rate of 6.625% per annum. Interest on the 2032 Notes is payable semiannually on April 15 and October 15 of each year, commencing on April 15, 2025. The 2032 Notes will mature on October 15, 2032. The 2032 Notes are senior unsecured obligations of the Company and are jointly and severally, fully and unconditionally, guaranteed on a senior unsecured basis by certain of the Company’s existing and future direct and indirect domestic restricted subsidiaries that incur or guarantee indebtedness under the Facilities or other qualifying indebtedness that, in the aggregate, exceeds $25 million, including the 2029 Notes (as defined below). 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. 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 recorded a non-cash pre-tax loss on extinguishment of $20 million related to the difference between the repayment amount and net carrying amount of the Term Loan B Facility, which is included in the Interest expense line item on the Condensed Consolidated Statements of Operations. 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 certain of the Company’s existing and future direct and indirect domestic restricted subsidiaries that incur or guarantee indebtedness under the Facilities or other qualifying indebtedness that, in the aggregate, exceeds $25 million, including the 2032 Notes. 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	9 Months Ended
	Sep. 30, 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) September 30, December 31, Other current liabilities: Customer related $ 122 $ 109 Payroll and employee related 94 92 Income taxes payable 38 39 Product warranties (Note 10) 28 30 Accrued freight 20 21 Accrued interest 19 1 Operating leases 17 17 Supplier related 14 14 Employee termination benefits 5 9 Legal and professional fees 5 6 Deferred engineering 4 6 Accrued utilities 4 4 Other non-income taxes 3 8 Other 61 64 Total other current liabilities $ 434 $ 420 Other non-current liabilities: Deferred income taxes $ 68 $ 56 Operating leases 41 49 Product warranties (Note 10) 26 26 Uncertain tax positions 16 15 Deferred income 10 7 Other 13 12 Total other non-current liabilities $ 174 $ 165

RETIREMENT BENEFIT PLANS

RETIREMENT BENEFIT PLANS	9 Months Ended
	Sep. 30, 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 income (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 $5 million to $7 million, of which $4 million has been contributed through the first nine 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 September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Service cost $ 1 $ 1 $ 3 $ 2 Interest cost 11 11 34 32 Expected return on plan assets (10) (11) (31) (32) Amortization of unrecognized loss (1) — (2) (1) Net periodic benefit cost $ 1 $ 1 $ 4 $ 1 The non-service cost components of net periodic benefit cost are included in Other postretirement expense (income), net in the Condensed Consolidated Statements of Operations.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2024
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY The changes of the Stockholders’ Equity items during the three and nine months ended September 30, 2024 and 2023, are as follows: (in millions) Issued common stock Additional paid-in-capital Treasury stock Retained earnings Accumulated other comprehensive (loss) income Total equity Balance, June 30, 2024 $ 1 $ 2,019 $ (130) $ 29 (172) $ 1,747 Dividends declared (0.25 per share) — — — (10) — (10) Spin-Off related adjustments — (48) — — — (48) Share-based compensation expense — 3 — — — 3 Purchase of treasury stock — — (75) — — (75) Excise tax on purchase of treasury stock — — (2) — — (2) Net issuance of executive stock plan — — 1 — — 1 Net earnings — — — 31 — 31 Other comprehensive income — — — — 57 57 Balance, September 30, 2024 $ 1 $ 1,974 $ (206) $ 50 $ (115) $ 1,704 (in millions) Issued common stock Additional paid-in capital Treasury stock Retained deficit Former Parent investment Accumulated other comprehensive loss Total equity Balance, June 30, 2023 $ — $ — $ — $ — $ 2,053 $ (61) $ 1,992 Net loss — — — (1) — — (1) Dividends declared (0.25 per share) — — — (12) — — (12) Purchase of treasury stock — — (9) — — — (9) Other comprehensive loss — — — — — (49) (49) Share-based compensation expense — 3 — — — — 3 Net transfers to Former Parent — — — — (32) — (32) Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off 1 2,020 — — (2,021) — — Balance, September 30, 2023 $ 1 $ 2,023 $ (9) $ (13) $ — $ (110) $ 1,892 (in millions) Issued common stock Additional paid-in-capital Treasury stock Retained earnings Accumulated other comprehensive (loss) income Total equity Balance, December 31, 2023 $ 1 $ 2,031 $ (23) $ 9 $ (131) $ 1,887 Dividends declared (0.75 per share) — — — (33) — (33) Spin-Off related adjustments — (59) — — — (59) Share-based compensation expense — 11 — — — 11 Purchase of treasury stock — — (188) — — (188) Excise tax on purchase of treasury stock — — (2) — — (2) Net issuance of executive stock plan — (9) 7 — — (2) Net earnings — — — 74 — 74 Other comprehensive income — — — — 16 16 Balance, September 30, 2024 $ 1 $ 1,974 $ (206) $ 50 $ (115) $ 1,704 (in millions) Issued common stock Additional paid-in capital Treasury stock Retained deficit Former parent investment Accumulated other comprehensive loss Total equity Balance, December 31, 2022 $ — $ — $ — $ — $ 1,731 $ (88) $ 1,643 Net earnings — — — (1) 70 — 69 Dividends declared (0.25 per share) — — — (12) — — (12) Purchase of treasury stock — — (9) — — — (9) Other comprehensive loss — — — — — (22) (22) Share-based compensation expense — 3 — — — — 3 Net transfers from Former Parent — — — — 220 — 220 Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off 1 2,020 — — (2,021) — — Balance, September 30, 2023 $ 1 $ 2,023 $ (9) $ (13) $ — $ (110) $ 1,892

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the activity within accumulated other comprehensive loss during the three and nine months ended September 30, 2024 and 2023: (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, June 30, 2024 $ (137) $ (35) $ — $ (172) Comprehensive income (loss) before reclassifications 59 (3) — 56 Reclassification from accumulated other comprehensive loss — 1 — 1 Ending Balance, September 30, 2024 $ (78) $ (37) $ — $ (115) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, June 30, 2023 $ (55) $ (7) $ 1 $ (61) Comprehensive loss (46) (3) (1) (50) Income taxes associated with comprehensive income — 1 — 1 Ending Balance, September 30, 2023 $ (101) $ (9) $ — $ (110) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2023 $ (98) $ (33) $ — $ (131) Comprehensive income (loss) before reclassifications 20 (6) — 14 Reclassification from accumulated other comprehensive loss — 2 — 2 Ending Balance, September 30, 2024 $ (78) $ (37) $ — $ (115) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2022 $ (85) $ (6) $ 3 $ (88) Comprehensive loss (16) (4) (3) (23) Income taxes associated with comprehensive income — 1 — 1 Ending Balance, September 30, 2023 $ (101) $ (9) $ — $ (110)

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 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 records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in commercial and legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability. Except as set forth below, 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. BorgWarner Dispute In September 2024, the Former Parent filed a claim against the Company in Delaware Superior Court seeking, inter alia, a judicial declaration that the Company is obligated under the Tax Matters Agreement to remit to the Former Parent monies refunded, or to be refunded, to the Company from tax authorities that relate to certain indirect tax payments made prior to the Spin-Off. The Company believes it has meritorious arguments in response to the Former Parent’s claim, however, the Company is unable to determine the ultimate outcome of this matter or determine an estimate of potential losses. It is reasonably possible, but not probable, that the resolution of this matter could have a material adverse effect on the Company’s financial position, results of operations and/or cash flows.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 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 the nine months ended September 30, 2023 totaled $89 million. These expenses were primarily included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. Royalty Income 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: Nine Months Ended September 30, (in millions) 2023 General financing activities $ (63) Cash pooling and other equity settled balances with Former Parent (64) Related-party notes converted to equity 260 Corporate allocations 89 Research and development income from Former Parent (2) Total net transfers from Former Parent $ 220 Exclude non-cash items: Stock-based compensation $ (4) Other non-cash activities with Former Parent, net (16) Related-party notes converted to equity (260) Cash pooling and intercompany financing activities with Former Parent, net 55 Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow $ (5)

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) 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 September 30, Nine Months Ended September 30, ( in millions, except per share amounts ) 2024 2023 2024 2023 Basic earnings (loss) per share: Net earnings (loss) $ 31 $ (1) $ 74 $ 69 Weighted average shares of common stock outstanding 43.1 47.0 44.7 47.0 Basic earnings (loss) per share of common stock $ 0.72 $ (0.02) $ 1.66 $ 1.46 Diluted earnings (loss) per share: Net earnings (loss) $ 31 $ (1) $ 74 $ 69 Weighted average shares of common stock outstanding 43.1 47.0 44.7 47.0 Effect of stock-based compensation* 1.0 — 0.7 — Weighted average shares of common stock outstanding including dilutive shares 44.1 47.0 45.4 47.0 Diluted earnings (loss) per share of common stock $ 0.70 $ (0.02) $ 1.63 $ 1.46 ___________________________________ * The Company had a loss for the three months ended September 30, 2023. As a result, diluted loss per share is the same as basic loss per share in the period, as any dilutive securities would reduce the loss per share.

REPORTABLE SEGMENTS AND RELATED

REPORTABLE SEGMENTS AND RELATED INFORMATION	9 Months Ended
	Sep. 30, 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 are designed to 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 September 30, 2024 Nine Months Ended September 30, 2024 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 484 $ 63 $ 547 $ 1,529 $ 181 $ 1,710 Aftermarket 355 2 357 1,041 9 1,050 Inter-segment eliminations — (65) (65) — (190) (190) Total $ 839 $ — $ 839 $ 2,570 $ — $ 2,570 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 561 $ 59 $ 620 $ 1,621 $ 173 $ 1,794 Aftermarket 335 (3) 332 997 4 1,001 Inter-segment eliminations — (56) (56) — (177) (177) Total $ 896 $ — $ 896 $ 2,618 $ — $ 2,618 Segment Adjusted Operating Income Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Fuel Systems $ 55 $ 55 $ 162 $ 160 Aftermarket 56 46 169 143 Segment AOI 111 101 331 303 Corporate, including stock-based compensation 24 19 63 28 Separation and transaction costs 4 25 24 84 Losses for other one-time events 4 — 4 — Intangible asset amortization expense 7 7 21 21 Restructuring expense 6 4 11 10 Equity in affiliates' earnings, net of tax (3) (2) (8) (8) Interest expense 20 22 81 34 Interest income (4) (4) (12) (9) Other postretirement expense (income), net — — 1 (1) Earnings before income taxes 53 30 146 144 Provision for income taxes 22 31 72 75 Net earnings (loss) $ 31 $ (1) $ 74 $ 69

OPERATING CASH FLOW AND OTHER S

OPERATING CASH FLOW AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION	9 Months Ended
	Sep. 30, 2024
Supplemental Cash Flow Elements [Abstract]
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION	OPERATING CASH FLOW AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION Nine Months Ended September 30, (in millions) 2024 2023 OPERATING Net earnings $ 74 $ 69 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and tooling amortization 100 105 Intangible asset amortization 21 21 Restructuring expense, net of cash paid 10 1 Loss on extinguishment of debt 22 — Stock-based compensation expense 11 7 Deferred income tax expense 14 2 Other non-cash adjustments, net (2) 11 Changes in assets and liabilities, excluding foreign currency translation adjustments: Receivables 80 (123) Inventories 2 (60) Prepayments and other current assets (19) (10) Accounts payable and other current liabilities (42) 169 Prepaid taxes and income taxes payable (16) 33 Other assets and liabilities (16) (37) Retirement benefit plan contributions (4) — Net cash provided by operating activities $ 235 $ 188 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the year for: Interest, net $ 20 $ 13 Income taxes, net of refunds $ 61 $ 59

REVISION OF PREVIOUSLY ISSUED I

REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS	REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS As previously disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2023 (Form 10-K), filed on February 28, 2024, the Company identified a cross-currency intercompany loan that was contributed to equity as part of the legal entity step plan that covered the tax and legal transactions needed to complete the separation at the date of the Spin-Off. The loan was not appropriately accounted for as it remained recorded on the Company’s general ledger at the date of the Spin-Off. As a result, a foreign currency gain was improperly recorded through Selling, general and administrative expenses within the Statement of Operations for the three and nine months ended September 30, 2023. Further, there was an offsetting foreign currency cash pool liability intended to compensate for the remeasurement of the intercompany loan that remained outstanding at September 30, 2023. As the foreign currency loss related to this liability was related to the Spin-Off, it should have been recorded in Other operating expense (income), net, therefore it was misclassified within the Statement of Operations for the three and nine months ended September 30, 2023. The Company evaluated the errors and concluded that the errors were not material to its previously issued condensed consolidated financial statements. To correct the immaterial errors, the Company has revised the previously reported interim financial information in conjunction with the issuance of this quarterly report on Form 10-Q for the quarter ended September 30, 2024. The errors had no impact on the consolidated financial statements as of and for the fiscal year ended December 31, 2023. The tables below reflect the impact of the revisions on the interim financial statements: Condensed Consolidated Statements of Operations Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (in millions, except per share amounts) As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selling, general and administrative expenses $ 104 $ — $ 104 $ 306 $ — $ 306 Other operating expense (income), net 15 12 27 60 12 72 Operating income 58 (12) 46 172 (12) 160 Earnings before income taxes 42 (12) 30 156 (12) 144 Net earnings (loss) 11 (12) (1) 81 (12) 69 Earnings (loss) per share - basic $ 0.24 $ (0.26) $ (0.02) $ 1.72 $ (0.26) $ 1.46 Earnings (loss) per share - diluted $ 0.24 $ (0.26) $ (0.02) $ 1.72 $ (0.26) $ 1.46 Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (in millions) As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings (loss) $ 11 $ (12) $ (1) $ 81 $ (12) $ 69 Other comprehensive loss Foreign currency translation adjustments (58) 12 (46) (28) 12 (16) Total other comprehensive loss (61) 12 (49) (34) 12 (22) Condensed Consolidated Statement of Cash Flows Nine Months Ended September 30, 2023 (in millions) As Previously Reported Adjustment As Revised Net earnings (loss) $ 81 $ (12) $ 69 Other non-cash adjustments, net (1) 12 11 Condensed Consolidated Balance Sheet September 30, 2023 (in millions) As Previously Reported Adjustment As Revised Retained Deficit $ (1) $ (12) $ (13) Accumulated other comprehensive loss (122) 12 (110)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net earnings	$ 31	$ (1)	$ 74	$ 69

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 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)	9 Months Ended
	Sep. 30, 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 standalone 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 and nine months ended September 30, 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.
New Accounting Pronouncements	New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” It requires incremental disclosures related to an entity’s reportable segments, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods beginning after December 15, 2024. The Company will provide the incremental disclosures in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires entities to disaggregate information related to the effective tax rate reconciliation and income taxes paid. This guidance is effective for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact of this ASU on its financial statements.

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2024 and 2023. Refer to Note 19, “Reportable Segments And Related Information” to the Condensed Consolidated Financial Statements, for more information. Three Months Ended September 30, 2024 (In millions) Fuel Systems Aftermarket Total Americas $ 172 $ 195 $ 367 Europe 199 141 340 Asia 113 19 132 Total $ 484 $ 355 $ 839 Three Months Ended September 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 199 $ 193 $ 392 Europe 232 122 354 Asia 130 20 150 Total $ 561 $ 335 $ 896 Nine Months Ended September 30, 2024 (In millions) Fuel Systems Aftermarket Total Americas $ 536 $ 579 $ 1,115 Europe 653 403 1,056 Asia 340 59 399 Total $ 1,529 $ 1,041 $ 2,570 Nine Months Ended September 30, 2023 (In millions) Fuel Systems Aftermarket Total Americas $ 537 $ 591 $ 1,128 Europe 711 350 1,061 Asia 373 56 429 Total $ 1,621 $ 997 $ 2,618

RESEARCH AND DEVELOPMENT COSTS

RESEARCH AND DEVELOPMENT COSTS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Gross R&D expenditures $ 50 $ 45 $ 154 $ 143 Customer reimbursements (24) (21) (71) (62) Net R&D expenditures $ 26 $ 24 $ 83 $ 81

OTHER OPERATING EXPENSE, NET (T

OTHER OPERATING EXPENSE, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Other Income and Expenses [Abstract]
Schedule of Other Operating Expense, Net	Items included in Other operating expense, net consist of: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Separation and transaction costs $ 4 $ 25 $ 24 $ 84 Restructuring 6 4 11 10 Losses for other one-time events 4 — 4 — Royalty income from Former Parent — — — (17) R&D income from Former Parent — — — (2) Other operating income, net (1) (2) (4) (3) Other operating expense, net $ 13 $ 27 $ 35 $ 72

RECEIVABLES, NET (Tables)

RECEIVABLES, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Text Block [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	The table below provides details of Receivables, net as of September 30, 2024 and December 31, 2023: (in millions) September 30, December 31, Receivables, net: Customers $ 633 $ 658 Indirect taxes 136 167 Due from Former Parent 102 159 Other 59 44 Gross receivables 930 1,028 Allowance for credit losses (10) (11) Total receivables, net $ 920 $ 1,017

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	A summary of Inventories is presented below: (in millions) September 30, December 31, Raw material and supplies $ 255 $ 286 Work-in-progress 45 46 Finished goods 186 155 Inventories $ 486 $ 487

OTHER CURRENT AND NON-CURRENT_2

OTHER CURRENT AND NON-CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	(in millions) September 30, December 31, Prepayments and other current assets: Prepaid taxes $ 42 $ 26 Prepaid engineering 13 3 Prepaid software 10 5 Customer return assets 7 8 Prepaid customer tooling 6 3 Prepaid insurance 6 3 Other 9 10 Total prepayments and other current assets $ 93 $ 58 Investments and long-term receivables: Long-term receivables $ 55 $ 46 Investment in equity affiliates 48 48 Due from Former Parent 18 17 Investment in equity securities 4 4 Total investments and long-term receivables $ 125 $ 115 Other non-current assets: Deferred income taxes $ 57 $ 61 Operating leases 55 63 Customer incentive payments 10 10 Other 26 28 Total other non-current assets $ 148 $ 162

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	A summary of the components in the carrying amount of goodwill as of September 30, 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 — (3) (3) Net goodwill balance, September 30, 2024 $ 61 $ 435 $ 496
Schedule of Intangible Assets Gross Roll Forward	The Company’s other intangible assets, primarily from acquisitions, consist of the following: September 30, 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 $ 150 $ 50 $ 100 $ 149 $ 41 $ 108 Customer relationships 14 - 15 267 116 151 268 104 164 Total amortized intangible assets 417 166 251 417 145 272 Unamortized trade names 146 — 146 145 — 145 Total other intangible assets $ 563 $ 166 $ 397 $ 562 $ 145 $ 417

PRODUCT WARRANTY (Tables)

PRODUCT WARRANTY (Tables)	9 Months Ended
	Sep. 30, 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 Adjustments of prior estimates — 1 Provisions for current period sales 27 32 Payments (30) (35) Other, primarily translation adjustment 1 (1) Ending balance, September 30, $ 54 $ 57 The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows: (in millions) September 30, December 31, 2023 Other current liabilities $ 28 $ 30 Other non-current liabilities 26 26 Total product warranty liability $ 54 $ 56

NOTES PAYABLE AND DEBT (Tables)

NOTES PAYABLE AND DEBT (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	As of September 30, 2024 and December 31, 2023, the Company had debt outstanding as follows: (in millions) September 30, December 31, 2023 Short-term debt Short-term borrowings $ — $ 75 Long-term debt 5.000% Senior Notes due 10/01/25 ($24 million par value) $ 24 $ 25 6.750% Senior Secured Notes due 04/15/29 ($525 million par value) 517 — 6.625% Senior Notes due 10/15/32 ($450 million par value) 444 — Term Loan A Facility due 07/03/28 ($298 million par value) — 295 Term Loan B Facility due 07/03/28 ($424 million par value) — 403 Finance leases 2 — Total long-term debt $ 987 $ 723 Less: current portion — 14 Long-term debt, net of current portion $ 987 $ 709

OTHER CURRENT AND NON-CURRENT_3

OTHER CURRENT AND NON-CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Other Liabilities Disclosure [Abstract]
Schedule of Additional Detail Related to Liabilities	Additional detail related to liabilities is presented in the table below: (in millions) September 30, December 31, Other current liabilities: Customer related $ 122 $ 109 Payroll and employee related 94 92 Income taxes payable 38 39 Product warranties (Note 10) 28 30 Accrued freight 20 21 Accrued interest 19 1 Operating leases 17 17 Supplier related 14 14 Employee termination benefits 5 9 Legal and professional fees 5 6 Deferred engineering 4 6 Accrued utilities 4 4 Other non-income taxes 3 8 Other 61 64 Total other current liabilities $ 434 $ 420 Other non-current liabilities: Deferred income taxes $ 68 $ 56 Operating leases 41 49 Product warranties (Note 10) 26 26 Uncertain tax positions 16 15 Deferred income 10 7 Other 13 12 Total other non-current liabilities $ 174 $ 165

RETIREMENT BENEFIT PLANS (Table

RETIREMENT BENEFIT PLANS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Service cost $ 1 $ 1 $ 3 $ 2 Interest cost 11 11 34 32 Expected return on plan assets (10) (11) (31) (32) Amortization of unrecognized loss (1) — (2) (1) Net periodic benefit cost $ 1 $ 1 $ 4 $ 1

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Stockholders' Equity Note [Abstract]
Schedule of Stockholders Equity	The changes of the Stockholders’ Equity items during the three and nine months ended September 30, 2024 and 2023, are as follows: (in millions) Issued common stock Additional paid-in-capital Treasury stock Retained earnings Accumulated other comprehensive (loss) income Total equity Balance, June 30, 2024 $ 1 $ 2,019 $ (130) $ 29 (172) $ 1,747 Dividends declared (0.25 per share) — — — (10) — (10) Spin-Off related adjustments — (48) — — — (48) Share-based compensation expense — 3 — — — 3 Purchase of treasury stock — — (75) — — (75) Excise tax on purchase of treasury stock — — (2) — — (2) Net issuance of executive stock plan — — 1 — — 1 Net earnings — — — 31 — 31 Other comprehensive income — — — — 57 57 Balance, September 30, 2024 $ 1 $ 1,974 $ (206) $ 50 $ (115) $ 1,704 (in millions) Issued common stock Additional paid-in capital Treasury stock Retained deficit Former Parent investment Accumulated other comprehensive loss Total equity Balance, June 30, 2023 $ — $ — $ — $ — $ 2,053 $ (61) $ 1,992 Net loss — — — (1) — — (1) Dividends declared (0.25 per share) — — — (12) — — (12) Purchase of treasury stock — — (9) — — — (9) Other comprehensive loss — — — — — (49) (49) Share-based compensation expense — 3 — — — — 3 Net transfers to Former Parent — — — — (32) — (32) Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off 1 2,020 — — (2,021) — — Balance, September 30, 2023 $ 1 $ 2,023 $ (9) $ (13) $ — $ (110) $ 1,892 (in millions) Issued common stock Additional paid-in-capital Treasury stock Retained earnings Accumulated other comprehensive (loss) income Total equity Balance, December 31, 2023 $ 1 $ 2,031 $ (23) $ 9 $ (131) $ 1,887 Dividends declared (0.75 per share) — — — (33) — (33) Spin-Off related adjustments — (59) — — — (59) Share-based compensation expense — 11 — — — 11 Purchase of treasury stock — — (188) — — (188) Excise tax on purchase of treasury stock — — (2) — — (2) Net issuance of executive stock plan — (9) 7 — — (2) Net earnings — — — 74 — 74 Other comprehensive income — — — — 16 16 Balance, September 30, 2024 $ 1 $ 1,974 $ (206) $ 50 $ (115) $ 1,704 (in millions) Issued common stock Additional paid-in capital Treasury stock Retained deficit Former parent investment Accumulated other comprehensive loss Total equity Balance, December 31, 2022 $ — $ — $ — $ — $ 1,731 $ (88) $ 1,643 Net earnings — — — (1) 70 — 69 Dividends declared (0.25 per share) — — — (12) — — (12) Purchase of treasury stock — — (9) — — — (9) Other comprehensive loss — — — — — (22) (22) Share-based compensation expense — 3 — — — — 3 Net transfers from Former Parent — — — — 220 — 220 Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off 1 2,020 — — (2,021) — — Balance, September 30, 2023 $ 1 $ 2,023 $ (9) $ (13) $ — $ (110) $ 1,892

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following tables summarize the activity within accumulated other comprehensive loss during the three and nine months ended September 30, 2024 and 2023: (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, June 30, 2024 $ (137) $ (35) $ — $ (172) Comprehensive income (loss) before reclassifications 59 (3) — 56 Reclassification from accumulated other comprehensive loss — 1 — 1 Ending Balance, September 30, 2024 $ (78) $ (37) $ — $ (115) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning balance, June 30, 2023 $ (55) $ (7) $ 1 $ (61) Comprehensive loss (46) (3) (1) (50) Income taxes associated with comprehensive income — 1 — 1 Ending Balance, September 30, 2023 $ (101) $ (9) $ — $ (110) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2023 $ (98) $ (33) $ — $ (131) Comprehensive income (loss) before reclassifications 20 (6) — 14 Reclassification from accumulated other comprehensive loss — 2 — 2 Ending Balance, September 30, 2024 $ (78) $ (37) $ — $ (115) (in millions) Foreign currency translation adjustments Defined benefit pension plans Hedge instruments Total Beginning Balance, December 31, 2022 $ (85) $ (6) $ 3 $ (88) Comprehensive loss (16) (4) (3) (23) Income taxes associated with comprehensive income — 1 — 1 Ending Balance, September 30, 2023 $ (101) $ (9) $ — $ (110)

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 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: Nine Months Ended September 30, (in millions) 2023 General financing activities $ (63) Cash pooling and other equity settled balances with Former Parent (64) Related-party notes converted to equity 260 Corporate allocations 89 Research and development income from Former Parent (2) Total net transfers from Former Parent $ 220 Exclude non-cash items: Stock-based compensation $ (4) Other non-cash activities with Former Parent, net (16) Related-party notes converted to equity (260) Cash pooling and intercompany financing activities with Former Parent, net 55 Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow $ (5)

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Table)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, ( in millions, except per share amounts ) 2024 2023 2024 2023 Basic earnings (loss) per share: Net earnings (loss) $ 31 $ (1) $ 74 $ 69 Weighted average shares of common stock outstanding 43.1 47.0 44.7 47.0 Basic earnings (loss) per share of common stock $ 0.72 $ (0.02) $ 1.66 $ 1.46 Diluted earnings (loss) per share: Net earnings (loss) $ 31 $ (1) $ 74 $ 69 Weighted average shares of common stock outstanding 43.1 47.0 44.7 47.0 Effect of stock-based compensation* 1.0 — 0.7 — Weighted average shares of common stock outstanding including dilutive shares 44.1 47.0 45.4 47.0 Diluted earnings (loss) per share of common stock $ 0.70 $ (0.02) $ 1.63 $ 1.46 ___________________________________ * The Company had a loss for the three months ended September 30, 2023. As a result, diluted loss per share is the same as basic loss per share in the period, as any dilutive securities would reduce the loss per share.

REPORTABLE SEGMENTS AND RELAT_2

REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Net Sales and Total Assets by Reporting Segment	Net Sales by Reportable Segment Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 484 $ 63 $ 547 $ 1,529 $ 181 $ 1,710 Aftermarket 355 2 357 1,041 9 1,050 Inter-segment eliminations — (65) (65) — (190) (190) Total $ 839 $ — $ 839 $ 2,570 $ — $ 2,570 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (in millions) Customers Inter-segment Net Customers Inter-segment Net Fuel Systems $ 561 $ 59 $ 620 $ 1,621 $ 173 $ 1,794 Aftermarket 335 (3) 332 997 4 1,001 Inter-segment eliminations — (56) (56) — (177) (177) Total $ 896 $ — $ 896 $ 2,618 $ — $ 2,618
Schedule of Segment Earnings Before Interest and Income Taxes	Segment Adjusted Operating Income Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Fuel Systems $ 55 $ 55 $ 162 $ 160 Aftermarket 56 46 169 143 Segment AOI 111 101 331 303 Corporate, including stock-based compensation 24 19 63 28 Separation and transaction costs 4 25 24 84 Losses for other one-time events 4 — 4 — Intangible asset amortization expense 7 7 21 21 Restructuring expense 6 4 11 10 Equity in affiliates' earnings, net of tax (3) (2) (8) (8) Interest expense 20 22 81 34 Interest income (4) (4) (12) (9) Other postretirement expense (income), net — — 1 (1) Earnings before income taxes 53 30 146 144 Provision for income taxes 22 31 72 75 Net earnings (loss) $ 31 $ (1) $ 74 $ 69

OPERATING CASH FLOW AND OTHER_2

OPERATING CASH FLOW AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2024
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Nine Months Ended September 30, (in millions) 2024 2023 OPERATING Net earnings $ 74 $ 69 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and tooling amortization 100 105 Intangible asset amortization 21 21 Restructuring expense, net of cash paid 10 1 Loss on extinguishment of debt 22 — Stock-based compensation expense 11 7 Deferred income tax expense 14 2 Other non-cash adjustments, net (2) 11 Changes in assets and liabilities, excluding foreign currency translation adjustments: Receivables 80 (123) Inventories 2 (60) Prepayments and other current assets (19) (10) Accounts payable and other current liabilities (42) 169 Prepaid taxes and income taxes payable (16) 33 Other assets and liabilities (16) (37) Retirement benefit plan contributions (4) — Net cash provided by operating activities $ 235 $ 188 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the year for: Interest, net $ 20 $ 13 Income taxes, net of refunds $ 61 $ 59

REVISION OF PREVIOUSLY ISSUED_2

REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Schedule of the Impact of the Revisions on the Interim Financial Statements	The tables below reflect the impact of the revisions on the interim financial statements: Condensed Consolidated Statements of Operations Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (in millions, except per share amounts) As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selling, general and administrative expenses $ 104 $ — $ 104 $ 306 $ — $ 306 Other operating expense (income), net 15 12 27 60 12 72 Operating income 58 (12) 46 172 (12) 160 Earnings before income taxes 42 (12) 30 156 (12) 144 Net earnings (loss) 11 (12) (1) 81 (12) 69 Earnings (loss) per share - basic $ 0.24 $ (0.26) $ (0.02) $ 1.72 $ (0.26) $ 1.46 Earnings (loss) per share - diluted $ 0.24 $ (0.26) $ (0.02) $ 1.72 $ (0.26) $ 1.46 Condensed Consolidated Statements of Comprehensive Income (Loss) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (in millions) As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net earnings (loss) $ 11 $ (12) $ (1) $ 81 $ (12) $ 69 Other comprehensive loss Foreign currency translation adjustments (58) 12 (46) (28) 12 (16) Total other comprehensive loss (61) 12 (49) (34) 12 (22) Condensed Consolidated Statement of Cash Flows Nine Months Ended September 30, 2023 (in millions) As Previously Reported Adjustment As Revised Net earnings (loss) $ 81 $ (12) $ 69 Other non-cash adjustments, net (1) 12 11 Condensed Consolidated Balance Sheet September 30, 2023 (in millions) As Previously Reported Adjustment As Revised Retained Deficit $ (1) $ (12) $ (13) Accumulated other comprehensive loss (122) 12 (110)

INTRODUCTION (Details)

INTRODUCTION (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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 108	$ 104	$ 324	$ 306
Corporate Expense Allocation | Related Party
Related Party Transaction [Line Items]
Selling, general and administrative expenses				$ 89

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Revenue from External Customer [Line Items]
Contract with customer, contract asset	$ 1	$ 1
Liability, noncurrent	$ 10	7
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
Contract Liabilities
Revenue from External Customer [Line Items]
Liability, current	$ 7	7
Other Current Liabilities
Revenue from External Customer [Line Items]
Liability, current	3	6
Other non-current liabilities
Revenue from External Customer [Line Items]
Liability, noncurrent	$ 4	$ 1

REVENUE FROM CONTRACTS WITH C_4

REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue from External Customer [Line Items]
Net sales	$ 839	$ 896	$ 2,570	$ 2,618
Fuel Systems
Revenue from External Customer [Line Items]
Net sales	484	561	1,529	1,621
Aftermarket
Revenue from External Customer [Line Items]
Net sales	355	335	1,041	997
Americas
Revenue from External Customer [Line Items]
Net sales	367	392	1,115	1,128
Americas | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	172	199	536	537
Americas | Aftermarket
Revenue from External Customer [Line Items]
Net sales	195	193	579	591
Europe
Revenue from External Customer [Line Items]
Net sales	340	354	1,056	1,061
Europe | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	199	232	653	711
Europe | Aftermarket
Revenue from External Customer [Line Items]
Net sales	141	122	403	350
Asia
Revenue from External Customer [Line Items]
Net sales	132	150	399	429
Asia | Fuel Systems
Revenue from External Customer [Line Items]
Net sales	113	130	340	373
Asia | Aftermarket
Revenue from External Customer [Line Items]
Net sales	$ 19	$ 20	$ 59	$ 56

RESEARCH AND DEVELOPMENT COST_2

RESEARCH AND DEVELOPMENT COSTS - Schedule of Company’s Gross and Net Expenditures on R&D Activities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Research and Development [Abstract]
Gross R&D expenditures	$ 50	$ 45	$ 154	$ 143
Customer reimbursements	(24)	(21)	(71)	(62)
Net R&D expenditures	$ 26	$ 24	$ 83	$ 81

OTHER OPERATING EXPENSE, NET -

OTHER OPERATING EXPENSE, NET - Schedule of Other Operating Expense (Income), Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Separation and transaction costs	$ 4	$ 25	$ 24	$ 84
Restructuring	6	4	11	10
Losses for other one-time events	4	0	4	0
R&D income from Former Parent	(24)	(21)	(71)	(62)
Other operating income, net	(1)	(2)	(4)	(3)
Other operating expense, net	13	27	35	72
Affiliated Entity
Related Party Transaction [Line Items]
Royalty income from Former Parent	0	0	0	(17)
R&D income from Former Parent	$ 0	$ 0	$ 0	$ (2)

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation (in percent)	42%	103%	49%	52%

RECEIVABLES, NET - Schedule of

RECEIVABLES, NET - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Receivables, net:
Customers	$ 633	$ 658
Indirect taxes	136	167
Due from Former Parent	102	159
Other	59	44
Gross receivables	930	1,028
Allowance for credit losses	(10)	(11)
Total receivables, net	$ 920	$ 1,017

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw material and supplies	$ 255	$ 286
Work-in-progress	45	46
Finished goods	186	155
Inventories	$ 486	$ 487

OTHER CURRENT AND NON-CURRENT_4

OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Prepayments and other current assets:
Prepaid taxes	$ 42	$ 26
Prepaid engineering	13	3
Prepaid software	10	5
Customer return assets	7	8
Prepaid customer tooling	6	3
Prepaid insurance	6	3
Other	9	10
Total prepayments and other current assets	93	58
Investments and long-term receivables:
Long-term receivables	55	46
Investment in equity affiliates	48	48
Due from Former Parent	18	17
Investment in equity securities	4	4
Total investments and long-term receivables	125	115
Other non-current assets:
Deferred income taxes	57	61
Operating leases	55	63
Customer incentive payments	10	10
Other	26	28
Total other non-current assets	$ 148	$ 162

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES - Schedule of Goodwill (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Line Items]
Beginning balance, gross goodwill		$ 612
Accumulated impairment losses		(113)
Ending balance, net goodwill	$ 496	499
Goodwill [Roll Forward]
Translation adjustment	(3)
Net goodwill balance, September 30, 2024	496
Fuel Systems
Goodwill [Line Items]
Beginning balance, gross goodwill		61
Accumulated impairment losses		0
Ending balance, net goodwill	61	61
Goodwill [Roll Forward]
Translation adjustment	0
Net goodwill balance, September 30, 2024	61
Aftermarket
Goodwill [Line Items]
Beginning balance, gross goodwill		551
Accumulated impairment losses		(113)
Ending balance, net goodwill	435	$ 438
Goodwill [Roll Forward]
Translation adjustment	(3)
Net goodwill balance, September 30, 2024	$ 435

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLES - Schedule of Intangible Assets Gross Roll Forward (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	$ 417	$ 417
Total other intangible assets, accumulated amortization	166	145
Total amortized intangible assets, net carrying amount	251	272
Unamortized trade names	146	145
Total other intangible assets, gross carrying amount	563	562
Net carrying amount	397	417
Patented and unpatented technology
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	150	149
Total other intangible assets, accumulated amortization	50	41
Total amortized intangible assets, net carrying amount	100	108
Customer relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortized intangible assets, gross carrying amount	267	268
Total other intangible assets, accumulated amortization	116	104
Total amortized intangible assets, net carrying amount	$ 151	$ 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)	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 56	$ 60
Adjustments of prior estimates	0	1
Provisions for current period sales	27	32
Payments	(30)	(35)
Other, primarily translation adjustment	1	(1)
Ending balance	54	57
Other current liabilities	28		$ 30
Other non-current liabilities	26		26
Total product warranty liability	$ 54	$ 57	$ 56

NOTES PAYABLE AND DEBT - Schedu

NOTES PAYABLE AND DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($)	Sep. 30, 2024	Sep. 17, 2024	Apr. 04, 2024	Dec. 31, 2023	Jul. 03, 2023
Short-term debt
Short-term borrowings	$ 0			$ 75,000,000
Long-term debt
Long-term debt	987,000,000			709,000,000
Finance leases	2,000,000			0
Nonrelated Party
Long-term debt
Long-term debt	987,000,000			723,000,000
Less: current portion	0			14,000,000
Long-term debt, net of current portion	$ 987,000,000			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 (in 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	$ 24,000,000			25,000,000
6.750% Senior Secured Notes due 04/15/29 ($525 million par value) | Senior Notes
Long-term debt
Debt instrument stated interest rate (in percent)	6.75%		6.75%
Debt instrument face value	$ 525,000,000		$ 525,000,000
6.750% Senior Secured Notes due 04/15/29 ($525 million par value) | Senior Notes | Nonrelated Party
Long-term debt
Long-term debt	$ 517,000,000			0
6.625% Senior Notes due 10/15/32 ($450 million par value) | Senior Notes
Long-term debt
Debt instrument stated interest rate (in percent)	6.625%	6.625%
Debt instrument face value	$ 450
6.625% Senior Notes due 10/15/32 ($450 million par value) | Senior Notes | Nonrelated Party
Long-term debt
Long-term debt	444,000,000			0
Senior Unsecured Term Loan A Facility | Line of Credit
Long-term debt
Debt instrument face value	298,000,000				$ 300,000,000
Long-term debt	0			295,000,000
Senior Unsecured Term Loan B Facility | Line of Credit
Long-term debt
Debt instrument face value	424,000,000				$ 425,000,000
Long-term debt	$ 0			$ 403,000,000

NOTES PAYABLE AND DEBT - Narrat

NOTES PAYABLE AND DEBT - Narrative (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2020 USD ($)	Sep. 17, 2024 USD ($)	Apr. 04, 2024 USD ($)	Apr. 03, 2024	Dec. 31, 2023 USD ($)	Jul. 03, 2023 USD ($)
Line of Credit Facility [Line Items]
Short-term borrowings	$ 0		$ 0						$ 75,000,000
Leverage ratio, maximum							3.25	3
Leverage ratio, step up for qualifying acquisition, maximum							3.75
Loss on extinguishment of debt			22,000,000	$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Short-term borrowings	0		0
Additional availability	499,000,000		499,000,000
Senior Notes Due October 2025 | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument face value	$ 24,000,000		$ 24,000,000
Debt instrument stated interest rate (in percent)	5%		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	$ 1,020,000,000		$ 1,020,000,000
Debt, difference between fair value and carrying value	(35,000,000)		(35,000,000)
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)
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	298,000,000		298,000,000							300,000,000
Senior Unsecured Term Loan B Facility | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument face value	424,000,000		$ 424,000,000							$ 425,000,000
6.750% Senior Secured Notes due 04/15/29 ($525 million par value)
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (in percent)			6.75%
6.750% Senior Secured Notes due 04/15/29 ($525 million par value) | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument face value	$ 525,000,000		$ 525,000,000				$ 525,000,000
Debt instrument stated interest rate (in percent)	6.75%		6.75%				6.75%
Accrued interest (in percent)							100%
6.750% Senior Secured Notes due 04/15/29 ($525 million par value) | Senior Notes | Maximum
Line of Credit Facility [Line Items]
Debt instrument face value						$ 25,000,000
6.750% Senior Secured Notes due 04/15/29 ($525 million par value) | Line of Credit
Line of Credit Facility [Line Items]
Loss on extinguishment of debt		$ 20,000,000
6.625% Senior Notes due 10/15/32 ($450 million par value) | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument face value	$ 450		$ 450
Debt instrument stated interest rate (in percent)	6.625%		6.625%			6.625%
Senior Unsecured Notes Due 2032 | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument face value						$ 450,000,000
Debt instrument stated interest rate (in percent)						6.625%
Accrued interest (in percent)						100%
Senior Unsecured Notes Due 2032 | Senior Notes | Maximum
Line of Credit Facility [Line Items]
Debt instrument face value						$ 25,000,000
Senior Unsecured Notes Due 2032 | Line of Credit
Line of Credit Facility [Line Items]
Loss on extinguishment of debt	$ 2,000,000
Senior Notes Due 2025
Line of Credit Facility [Line Items]
Interest, basis spread on variable rate (in 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 Detail Related to Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Other current liabilities:
Customer related	$ 122	$ 109
Payroll and employee related	94	92
Income taxes payable	38	39
Product warranties	28	30
Accrued freight	20	21
Accrued interest	19	1
Operating leases	17	17
Supplier related	14	14
Employee termination benefits	5	9
Legal and professional fees	5	6
Deferred engineering	4	6
Accrued Utilities, Current	4	4
Other non-income taxes	3	8
Other	61	64
Total other current liabilities	434	420
Other non-current liabilities:
Deferred income taxes	68	56
Operating leases	41	49
Product warranties	26	26
Uncertain tax positions	16	15
Deferred income	10	7
Other	13	12
Total other non-current liabilities	$ 174	$ 165

RETIREMENT BENEFIT PLANS - Narr

RETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Actual contribution to defined benefit pension plans	$ 4
Minimum
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected future employer contributions, current fiscal year	5
Maximum
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected future employer contributions, current fiscal year	$ 7

RETIREMENT BENEFIT PLANS - Sche

RETIREMENT BENEFIT PLANS - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retirement Benefits [Abstract]
Service cost	$ 1	$ 1	$ 3	$ 2
Interest cost	11	11	34	32
Expected return on plan assets	(10)	(11)	(31)	(32)
Amortization of unrecognized loss	(1)	0	(2)	(1)
Net periodic benefit cost	$ 1	$ 1	$ 4	$ 1

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1,747	$ 1,992	$ 1,887	$ 1,643
Dividends declared	(10)	(12)	(33)	(12)
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off	(48)	0	(59)	0
Share-based compensation expense	3	3	11	3
Purchase of treasury stock	(75)	(9)	(188)	(9)
Excise tax on purchase of treasury stock	(2)		(2)
Net issuance of executive stock plan	1		(2)
Net earnings	31	(1)	74	69
Other comprehensive income (loss)	57	(49)	16	(22)
Net transfers to Former Parent		(32)		220
Ending balance	$ 1,704	$ 1,892	$ 1,704	$ 1,892
Dividends declared (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.25
Issued common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1	$ 0	$ 1	$ 0
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off		1		1
Ending balance	1	1	1	1
Additional paid-in-capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,019	0	2,031	0
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off	(48)	2,020	(59)	2,020
Share-based compensation expense	3	3	11	3
Net issuance of executive stock plan	0		(9)
Ending balance	1,974	2,023	1,974	2,023
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(130)	0	(23)	0
Purchase of treasury stock	(75)	(9)	(188)	(9)
Excise tax on purchase of treasury stock	(2)		(2)
Net issuance of executive stock plan	1		7
Ending balance	(206)	(9)	(206)	(9)
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	29	0	9	0
Dividends declared	(10)	(12)	(33)	(12)
Net earnings	31	(1)	74	(1)
Ending balance	50	(13)	50	(13)
Former Parent investment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		2,053		1,731
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off		(2,021)		(2,021)
Net earnings		0		70
Net transfers to Former Parent		(32)		220
Ending balance		0		0
Accumulated other comprehensive (loss) income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(172)	(61)	(131)	(88)
Other comprehensive income (loss)	57	(49)	16	(22)
Ending balance	$ (115)	$ (110)	$ (115)	$ (110)

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,747	$ 1,992	$ 1,887	$ 1,643
Comprehensive income (loss) before reclassifications	56	(50)	14	(23)
Reclassification from accumulated other comprehensive loss	1		2
Income taxes associated with comprehensive income		1		1
Ending balance	1,704	1,892	1,704	1,892
Accumulated other comprehensive loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(172)	(61)	(131)	(88)
Ending balance	(115)	(110)	(115)	(110)
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(137)	(55)	(98)	(85)
Comprehensive income (loss) before reclassifications	59	(46)	20	(16)
Reclassification from accumulated other comprehensive loss	0		0
Income taxes associated with comprehensive income		0		0
Ending balance	(78)	(101)	(78)	(101)
Defined benefit pension plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(35)	(7)	(33)	(6)
Comprehensive income (loss) before reclassifications	(3)	(3)	(6)	(4)
Reclassification from accumulated other comprehensive loss	1		2
Income taxes associated with comprehensive income		1		1
Ending balance	(37)	(9)	(37)	(9)
Hedge instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	1	0	3
Comprehensive income (loss) before reclassifications	0	(1)	0	(3)
Reclassification from accumulated other comprehensive loss	0		0
Income taxes associated with comprehensive income		0		0
Ending balance	$ 0	$ 0	$ 0	$ 0

RELATED-PARTY TRANSACTIONS - Al

RELATED-PARTY TRANSACTIONS - Allocation of General Corporate and Other Expenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 108	$ 104	$ 324	$ 306
Corporate Expense Allocation | Related Party
Related Party Transaction [Line Items]
Selling, general and administrative expenses				$ 89

RELATED-PARTY TRANSACTIONS - Sc

RELATED-PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Related Party Transaction [Line Items]
Total net transfers from Former Parent	$ (32)	$ 220
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow		(5)
General financing activities | Related Party
Related Party Transaction [Line Items]
Total net transfers from Former Parent		(63)
Cash pooling and other equity settled balances with Former Parent | Related Party
Related Party Transaction [Line Items]
Total net transfers from Former Parent		(64)
Related-party notes converted to equity | Related Party
Related Party Transaction [Line Items]
Total net transfers from Former Parent		260
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow		(260)
Corporate allocations | Related Party
Related Party Transaction [Line Items]
Total net transfers from Former Parent		89
Research and development income from Former Parent | Related Party
Related Party Transaction [Line Items]
Total net transfers from Former Parent		(2)
Stock-based compensation | Related Party
Related Party Transaction [Line Items]
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow		(4)
Other non-cash activities with Former Parent, net | Related Party
Related Party Transaction [Line Items]
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow		(16)
Cash pooling and intercompany financing activities with Former Parent, net | Related Party
Related Party Transaction [Line Items]
Total net transfers to Former Parent per Condensed Consolidated Statements of Cash Flow		$ 55

EARNINGS (LOSS) PER SHARE - Nar

EARNINGS (LOSS) PER SHARE - Narrative (Details) - shares shares in Millions		3 Months Ended		9 Months Ended
	Jul. 02, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Weighted average shares of common stock outstanding (in shares)	47	43.1	47	44.7	47

EARNINGS (LOSS) PER SHARE - Sch

EARNINGS (LOSS) PER SHARE - Schedule of Earnings Per Share Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
	Jul. 02, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net earnings (loss)		$ 31	$ (1)	$ 74	$ 69
Weighted average shares of common stock outstanding (in shares)	47,000	43,100	47,000	44,700	47,000
Basic earnings (loss) per share of common stock (in dollars per share)		$ 0.72	$ (0.02)	$ 1.66	$ 1.46
Effect of stock-based compensation (in shares)		1,000	0	700	0
Weighted average shares of common stock outstanding including dilutive shares (in shares)		44,100	47,000	45,400	47,000
Diluted earnings (loss) per share of common stock (in dollars per share)		$ 0.70	$ (0.02)	$ 1.63	$ 1.46

REPORTABLE SEGMENTS AND RELAT_3

REPORTABLE SEGMENTS AND RELATED INFORMATION - Narrative (Details)	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Net sales	$ 839	$ 896	$ 2,570	$ 2,618
Fuel Systems
Segment Reporting Information [Line Items]
Net sales	484	561	1,529	1,621
Aftermarket
Segment Reporting Information [Line Items]
Net sales	355	335	1,041	997
Operating Segments
Segment Reporting Information [Line Items]
Net sales	839	896	2,570	2,618
Operating Segments | Customers
Segment Reporting Information [Line Items]
Net sales	839	896	2,570	2,618
Operating Segments | Inter-segment
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Operating Segments | Fuel Systems
Segment Reporting Information [Line Items]
Net sales	547	620	1,710	1,794
Operating Segments | Fuel Systems | Customers
Segment Reporting Information [Line Items]
Net sales	484	561	1,529	1,621
Operating Segments | Fuel Systems | Inter-segment
Segment Reporting Information [Line Items]
Net sales	63	59	181	173
Operating Segments | Aftermarket
Segment Reporting Information [Line Items]
Net sales	357	332	1,050	1,001
Operating Segments | Aftermarket | Customers
Segment Reporting Information [Line Items]
Net sales	355	335	1,041	997
Operating Segments | Aftermarket | Inter-segment
Segment Reporting Information [Line Items]
Net sales	2	(3)	9	4
Inter-segment eliminations
Segment Reporting Information [Line Items]
Net sales	(65)	(56)	(190)	(177)
Inter-segment eliminations | Customers
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Inter-segment eliminations | Inter-segment
Segment Reporting Information [Line Items]
Net sales	$ (65)	$ (56)	$ (190)	$ (177)

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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Segment AOI	$ 66	$ 46	$ 208	$ 160
Corporate, including stock-based compensation	24	19	63	28
Separation and transaction costs	4	25	24	84
Losses for other one-time events	4	0	4	0
Intangible asset amortization expense	7	7	21	21
Restructuring expense	6	4	11	10
Equity in affiliates' earnings, net of tax	3	2	8	8
Interest expense	20	22	81	34
Investment Income, Interest	(4)	(4)	(12)	(9)
Other postretirement expense (income), net	0	0	1	(1)
Earnings before income taxes	53	30	146	144
Provision for income taxes	22	31	72	75
Net earnings (loss)	31	(1)	74	69
Operating Segments
Segment Reporting Information [Line Items]
Segment AOI	111	101	331	303
Operating Segments | Fuel Systems
Segment Reporting Information [Line Items]
Segment AOI	55	55	162	160
Operating Segments | Aftermarket
Segment Reporting Information [Line Items]
Segment AOI	$ 56	$ 46	$ 169	$ 143

OPERATING CASH FLOW AND OTHER_3

OPERATING CASH FLOW AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
OPERATING
Net earnings	$ 31	$ (1)	$ 74	$ 69
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and tooling amortization			100	105
Intangible asset amortization	$ 7	$ 7	21	21
Restructuring expense, net of cash paid			10	1
Loss on extinguishment of debt			22	0
Stock-based compensation expense			11	7
Deferred income tax expense			14	2
Other non-cash adjustments, net			(2)	11
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Receivables			80	(123)
Inventories			2	(60)
Prepayments and other current assets			(19)	(10)
Accounts payable and other current liabilities			(42)	169
Prepaid taxes and income taxes payable			(16)	33
Other assets and liabilities			(16)	(37)
Retirement benefit plan contributions			(4)	0
Net cash provided by operating activities			235	188
Cash paid during the year for:
Interest, net			20	13
Income taxes, net of refunds			$ 61	$ 59

REVISION OF PREVIOUSLY ISSUED_3

REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS - Condensed Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Operations
Selling, general and administrative expenses	$ 108	$ 104	$ 324	$ 306
Other operating expense (income), net	13	27	35	72
Operating Income (Loss)	66	46	208	160
Earnings before income taxes	$ 53	30	$ 146	144
Net earnings income (loss)		$ (1)		$ 69
Earnings (loss) per share — basic (in dollars per share)	$ 0.72	$ (0.02)	$ 1.66	$ 1.46
Earnings (loss) per share— diluted (in dollars per share)	$ 0.70	$ (0.02)	$ 1.63	$ 1.46
As Previously Reported
Condensed Consolidated Statements of Operations
Selling, general and administrative expenses		$ 104		$ 306
Other operating expense (income), net		(15)		(60)
Operating Income (Loss)		58		172
Earnings before income taxes		42		156
Net earnings income (loss)		$ 11		$ 81
Earnings (loss) per share — basic (in dollars per share)		$ 0.24		$ 1.72
Earnings (loss) per share— diluted (in dollars per share)		$ 0.24		$ 1.72
Adjustment
Condensed Consolidated Statements of Operations
Selling, general and administrative expenses		$ 0		$ 0
Other operating expense (income), net		(12)		(12)
Operating Income (Loss)		(12)		(12)
Earnings before income taxes		(12)		(12)
Net earnings income (loss)		$ (12)		$ (12)
Earnings (loss) per share — basic (in dollars per share)		$ (0.26)		$ (0.26)
Earnings (loss) per share— diluted (in dollars per share)		$ (0.26)		$ (0.26)

REVISION OF PREVIOUSLY ISSUED_4

REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS - Condensed Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net earnings		$ 31	$ (1)	$ 74	$ 69
Other comprehensive loss
Foreign currency translation adjustments	[1]	59	(46)	20	(16)
Other comprehensive income (loss)		$ 57	(49)	$ 16	(22)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net earnings			11		81
Other comprehensive loss
Foreign currency translation adjustments			(58)		(28)
Other comprehensive income (loss)			(61)		(34)
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net earnings			(12)		(12)
Other comprehensive loss
Foreign currency translation adjustments			12		12
Other comprehensive income (loss)			$ 12		$ 12
[1]Net of income taxes.

REVISION OF PREVIOUSLY ISSUED_5

REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS - Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statement of Cash Flows
Net earnings income (loss)	$ 31	$ (1)	$ 74	$ 69
Other non-cash adjustments, net			$ (2)	11
As Previously Reported
Condensed Consolidated Statement of Cash Flows
Net earnings income (loss)		11		81
Other non-cash adjustments, net				(1)
Adjustment
Condensed Consolidated Statement of Cash Flows
Net earnings income (loss)		$ (12)		(12)
Other non-cash adjustments, net				$ 12

REVISION OF PREVIOUSLY ISSUED_6

REVISION OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Condensed Consolidated Balance Sheet
Retained Deficit	$ 50	$ 9	$ (13)
Accumulated other comprehensive loss	$ (115)	$ (131)	(110)
As Previously Reported
Condensed Consolidated Balance Sheet
Retained Deficit			(1)
Accumulated other comprehensive loss			(122)
Adjustment
Condensed Consolidated Balance Sheet
Retained Deficit			(12)
Accumulated other comprehensive loss			$ 12