PHINIA INC., 10-K filed on 2/13/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Feb. 07, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-41708    
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 each class Common Stock, par value $0.01 per share    
Trading Symbol(s) PHIN    
Name of each exchange on which registered NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 1.7
Entity Common Stock, Shares Outstanding   40,813,559  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the following documents are incorporated herein by reference into the Part of the Form 10-K indicated.
DocumentPart of Form 10-K into which incorporated
Portions of the PHINIA Inc. Proxy Statement for the 2025 Annual Meeting of ShareholdersPart III
    
Entity Central Index Key 0001968915    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
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Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
Auditor Firm ID 238
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
ASSETS    
Cash and cash equivalents $ 484 $ 365
Receivables, net 817 1,017
Inventories 444 487
Prepayments and other current assets 96 58
Total current assets 1,841 1,927
Property, plant and equipment, net 843 921
Investments and long-term receivables 111 115
Goodwill 471 499
Other intangible assets, net 374 417
Other non-current assets 128 162
Total assets 3,768 4,041
LIABILITIES AND EQUITY    
Short-term borrowings and current portion of long-term debt 25 89
Accounts payable 522 639
Other current liabilities 422 420
Total current liabilities 969 1,148
Long-term debt 963 709
Retirement-related liabilities 112 132
Other non-current liabilities 150 165
Total liabilities 2,194 2,154
Commitments and contingencies (see Note 18)
Capital stock:    
Common stock, $0.01 par value; authorized shares: 200,000,000; issued shares: (2024 - 47,013,661, 2023 - 47,013,661); outstanding shares: (2024 - 41,643,883, 2023 - 46,164,536) 1 1
Additional paid-in capital 1,976 2,031
Retained earnings 44 9
Accumulated other comprehensive loss (217) (131)
Treasury stock, at cost: (2024 - 5,369,778 shares, 2023 - 849,125 shares) (230) (23)
Total equity 1,574 1,887
Total liabilities and equity $ 3,768 $ 4,041
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, par value (in dollar per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock issued (in shares) 47,013,661 47,013,661
Common stock outstanding (in shares) 41,643,883 46,164,536
Treasury stock, at cost (in shares) 5,369,778 849,125
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net sales $ 3,403 $ 3,500 $ 3,348
Cost of sales 2,647 2,776 2,627
Gross profit 756 724 721
Selling, general and administrative expenses 442 413 407
Other operating expense (income), net 55 70 (4)
Operating income 259 241 318
Equity in affiliates’ earnings, net of tax (11) (10) (11)
Interest expense 99 56 20
Interest income (16) (13) (6)
Other postretirement expense (income) 0 2 (32)
Earnings before income taxes 187 206 347
Provision for income taxes 108 104 85
Net earnings $ 79 $ 102 $ 262
Earnings per share — basic (in dollar per share) $ 1.80 $ 2.17 $ 5.57
Earnings per share — diluted (in dollar per share) $ 1.76 $ 2.17 $ 5.57
Weighted average shares outstanding:      
Basic (in shares) 44.0 46.9 47.0
Diluted (in shares) 44.8 47.0 47.0
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE ( LOSS) INCOME - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net earnings $ 79 $ 102 $ 262
Other comprehensive loss      
Foreign currency translation adjustments [1] (95) (13) (90)
Defined benefit postretirement plans [1] 9 (27) (65)
Hedge instruments [1] 0 (3) 5
Total other comprehensive loss (86) (43) (150)
Comprehensive (loss) income $ (7) $ 59 $ 112
[1] Net of income taxes.
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
OPERATING      
Net cash provided by operating activities (see Note 23) $ 308 $ 250 $ 303
INVESTING      
Capital expenditures, including tooling outlays (105) (150) (107)
Insurance proceeds received for damage to property, plant and equipment 3 0 0
Payments for investment in equity securities (1) (2) 0
Proceeds from asset disposals and other, net 2 2 2
Net cash used in investing activities (101) (150) (105)
FINANCING      
Proceeds from issuance of long-term debt, net of discount 975 708  
Payments for debt issuance costs (15) (14) 0
(Repayments) borrowings under Revolving Facility (75) 75 0
Repayments of debt, including current portion (722) (4) (1)
Purchase of noncontrolling interest 0 0 (3)
Dividends paid to PHINIA Inc. stockholders (44) (23)  
Payments for purchase of treasury stock, including excise tax (212) (24)  
Payments for stock-based compensation items (3) (1)  
Net cash (used in) provided by financing activities (96) 20 (185)
Effect of exchange rate changes on cash 8 (6) (21)
Net increase (decrease) in cash and cash equivalents 119 114 (8)
Cash and cash equivalents at beginning of year 365 251 259
Cash and cash equivalents at end of year 484 365 251
Related Party      
FINANCING      
Cash outflows related to debt due to Former Parent 0 (728) (117)
Cash inflows related to debt due from Former Parent $ 0 36 140
Net transfers to Former Parent   $ (5) $ (204)
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CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Millions
Total
Common Stock
Common stock held in treasury
Additional paid-in-capital
Retained earnings
Former Parent investment
Accumulated other comprehensive income (loss)
Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2021   0            
Beginning balance, common stock held in treasury (in shares) at Dec. 31, 2021     0          
Beginning balance at Dec. 31, 2021 $ 1,712 $ 0 $ 0 $ 0 $ 0 $ 1,647 $ 62 $ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net transfers from Former Parent (178)         (178)    
Purchase of noncontrolling interest (3)             $ (3)
Net earnings 262         262    
Other comprehensive income (loss) (150)           (150)  
Ending balance at Dec. 31, 2022 1,643         1,731 (88)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net transfers from Former Parent 220         220    
Dividends declared (23)       (23)      
Spin-Off related adjustments 8     8        
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off (in shares)   47,013,661            
Reclassification of Former Parent's net investment and issuance of ordinary shares in connection with Spin-Off 0 $ 1   2,020   (2,021)    
Share-based compensation expense 6     6        
Purchases of treasury stock (in shares)     (903,920)          
Purchase of treasury stock (24)   $ (24)          
Net issuance of executive stock plan (in shares)     54,795          
Net issuance of executive stock plan (2)   $ 1 (3)        
Net earnings 102       32 70    
Other comprehensive income (loss) $ (43)           (43)  
Ending balance (in shares) at Dec. 31, 2023 47,013,661 47,013,661            
Ending balance, common stock held in treasury (in shares) at Dec. 31, 2023 (849,125)   (849,125)          
Ending balance at Dec. 31, 2023 $ 1,887 $ 1 $ (23) 2,031 9   (131)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Dividends declared (44)       (44)      
Spin-Off related adjustments (59)     (59)        
Share-based compensation expense 14     14        
Purchases of treasury stock (in shares)     (4,806,413)          
Purchase of treasury stock (212)   $ (212)          
Excise tax on purchase of treasury stock (2)   $ (2)          
Net issuance of executive stock plan (in shares)     285,760          
Net issuance of executive stock plan (3)   $ 7 (10)        
Net earnings 79       79 $ 0    
Other comprehensive income (loss) $ (86)           (86)  
Ending balance (in shares) at Dec. 31, 2024 47,013,661 47,013,661            
Ending balance, common stock held in treasury (in shares) at Dec. 31, 2024 (5,369,778)   (5,369,778)          
Ending balance at Dec. 31, 2024 $ 1,574 $ 1 $ (230) $ 1,976 $ 44   $ (217)  
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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]    
Dividends declared (in dollars per share) $ 1.00 $ 0.50
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INTRODUCTION
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
INTRODUCTION
INTRODUCTION
The accompanying Consolidated Financial Statements and notes present the 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 in combustion and hybrid propulsion for commercial vehicles and industrial applications (medium-duty and heavy-duty trucks, buses and other off-highway construction, marine, agricultural and industrial applications), light commercial vehicles (vans and trucks) and light passenger vehicles (passenger cars, mini-vans, cross-overs and sport-utility vehicles). 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).
On July 3, 2023, BorgWarner completed the Spin-Off in a transaction intended to qualify as tax-free to BorgWarner’s stockholders for U.S. federal income tax purposes, which was accomplished by the distribution of the outstanding common stock of PHINIA to holders of record of common stock of BorgWarner on a pro rata basis. Each holder of record of BorgWarner common stock received one share of PHINIA common stock for every five shares of BorgWarner common stock held on June 23, 2023, the record date. In lieu of fractional shares of PHINIA, BorgWarner stockholders received cash. As a result of these transactions, all of the assets, liabilities, and legal entities comprising BorgWarner’s Fuel Systems and Aftermarket businesses are now owned directly, or indirectly through its subsidiaries, by PHINIA. PHINIA is an independent public company trading under the symbol “PHIN” on the New York Stock Exchange.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following paragraphs briefly describe the Company’s significant accounting policies.
Basis of presentation Prior to the Spin-Off on July 3, 2023, the historical financial statements of PHINIA were prepared on a stand-alone combined basis and were derived from BorgWarner’s consolidated financial statements and accounting records as if the Fuel Systems and Aftermarket businesses of BorgWarner had been part of PHINIA for all periods presented. Accordingly, for periods prior to July 3, 2023, our financial statements are presented on a combined basis and for the periods subsequent to July 3, 2023 are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). The Company’s 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).
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 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 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. The year ended December 31, 2023 included net corporate allocation expenses incurred prior to the Spin-Off totaling $89 million. For the year ended December 31, 2022, net corporate allocation expenses totaled $118 million. Corporate allocation expenses were primarily included in Selling, general and administrative expenses.
Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the accompanying notes, as well as the amounts of revenues and expenses reported during the periods covered by these financial statements and accompanying notes. Actual results could differ from those estimates.
Principles of consolidation The Consolidated Financial Statements include all majority-owned subsidiaries with a controlling financial interest. All inter-company balances and transactions have been eliminated in consolidation.
Joint venture and equity securities The Company has an investment in one unconsolidated joint venture: Delphi-TVS Diesel Systems Ltd (D-TVS), of which the Company owns 52.5%. This joint venture is a non-controlled affiliate in which the Company exercises significant influence but does not have a controlling financial interest and, therefore, is accounted for under the equity method. Although the Company is the majority owner, it does not have the ability to control significant decisions or management of the entity. The Company evaluated this investment under Accounting Standards Codification (ASC) Topic 810 and based on the following factors the Company does
not have the power to control the significant decisions of the entity and therefore does not have a controlling financial interest.
•Both partners appoint a managing director and these directors jointly manage all of the affairs of D-TVS, subject to supervision by the board of directors;
•The Company has only a 36% representation on the board of directors; and
•The construct of the board of directors prevents either party from having power/control as described in ASC Topic 810 because both parties lack the ability to directly and/or indirectly control governance and management of D-TVS through either its ownership interest or the board representation.
Generally, under the equity method, the Company’s original investment is recorded at cost and subsequently adjusted by the Company’s share of equity in income or losses. The carrying value of the Company’s investment was $51 million and $48 million as of December 31, 2024 and 2023, respectively. The Company monitors its equity method investments for indicators of other-than-temporary declines in fair value on an ongoing basis. If such a decline has occurred, an impairment charge is recorded, which is measured as the difference between the carrying value and the estimated fair value. The Company’s investment in this non-controlled affiliate is included within Investments and long-term receivables in the Consolidated Balance Sheets. The Company’s share of equity in income or losses is included in Equity in affiliates’ earnings, net of tax in the Consolidated Statements of Operations.
The Company also has certain investments for which it does not have the ability to exercise significant influence (generally when ownership interest is less than 20%). The Company’s investment in these equity securities is included within Investments and long-term receivables in the Consolidated Balance Sheet.
Interests in privately held companies that do not have readily determinable fair values are accounted for using the measurement alternative under ASC Topic 321, which includes monitoring on an ongoing basis for indicators of impairments or upward adjustments. These equity securities are measured at cost less impairments, adjusted for observable price changes in orderly transactions for the identical or similar investment of the same issuer. If the Company determines that an indicator of impairment or upward adjustment is present, an adjustment is recorded, which is measured as the difference between carrying value and estimated fair value. Estimated fair value is generally determined using an income approach on discounted cash flows or negotiated transaction values.
Revenue recognition Revenue is recognized when performance obligations under the terms of a contract are satisfied, which generally occurs with the transfer of control of the products. For most products, transfer of control occurs upon shipment or delivery; however, a limited number of customer arrangements for 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. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring the goods. Although the Company may enter into long-term supply arrangements with its major customers, the prices and volumes are not fixed over the life of the arrangements, and a contract does not exist for purposes of applying ASC Topic 606 until volumes are contractually known.
Sales incentives and allowances (including returns) are recognized as a reduction to revenue at the time of the related sale. The Company estimates the allowances based on an analysis of historical experience. Taxes assessed by a governmental authority collected by the Company concurrent with a specific revenue-producing transaction are excluded from net sales. Shipping and handling fees billed to customers are included in sales, while costs of shipping and handling are included in cost of sales. The Company has elected to apply the accounting policy election available under ASC Topic 606 and accounts for shipping and handling activities as a fulfillment cost.
The Company has a limited number of arrangements with customers where the price paid by the customer is dependent on the volume of product purchased over the term of the arrangement. In other arrangements, the Company will provide a rebate to customers based on the volume of products purchased during the course of the arrangement. The Company estimates the volumes to be sold over the term of the arrangement and recognizes revenue based on the estimated amount of consideration to be received from these arrangements.
Refer to Note 2, “Revenue from Contracts with Customers,” to the Consolidated Financial Statements for more information.
Cost of sales The Company includes materials, direct labor and manufacturing overhead within cost of sales. Manufacturing overhead is comprised of indirect materials, indirect labor, factory operating costs, warranty costs and other such costs associated with manufacturing products for sale.
Cash and cash equivalents Cash and cash equivalents are valued at fair market value. It is the Company's policy to classify all highly liquid investments with original maturities of three months or less as cash and cash equivalents. Cash and cash equivalents are maintained with several financial institutions. Cash and cash equivalents are primarily held in foreign locations. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal risk.
Receivables, net and long-term receivables Accounts receivable and long-term receivables are stated at cost less an allowance for credit losses. An allowance for credit losses is recorded for amounts that may become uncollectible in the future. The allowance for credit losses is an estimate based on expected losses, current economic and market conditions, and a review of the current status of each customer’s accounts receivable.
Sales of receivables are accounted for in accordance with the ASC Topic 860. Agreements which result in true sales of the transferred receivables, as defined in ASC Topic 860, which occur when receivables are transferred to a third party without recourse to the Company, are excluded from amounts reported in the Consolidated Balance Sheets. Cash proceeds received from such sales are included in operating cash flows. The expenses associated with receivables factoring are recorded in the Consolidated Statements of Operations within interest expense. Refer to Note 6, “Receivables, Net,” to the Consolidated Financial Statements for more information.
Inventories Inventory is measured using first-in, first-out (FIFO) or average-cost methods at the lower of cost or net realizable value. Refer to Note 7, “Inventories,” to the Consolidated Financial Statements for more information.
Pre-production costs related to long-term supply arrangements Engineering, research and development and other design and development costs for products sold on long-term supply arrangements are expensed as incurred unless the Company has a contractual guarantee for reimbursement from the customer. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has title to the assets are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets, typically three to five years. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee for lump sum reimbursement from the customer are capitalized in Prepayments and other current assets.
Property, plant and equipment, net Property, plant and equipment is valued at cost less accumulated depreciation. Expenditures for maintenance, repairs and renewals of relatively minor items are generally charged to expense as incurred. Renewals of significant items are capitalized. Depreciation is generally computed on a straight-line basis over the estimated useful lives of the assets. Useful lives for buildings range from fifteen to forty years, and useful lives for machinery and equipment range from three to twelve years. For income tax purposes, accelerated methods of depreciation are generally used. Refer to Note 9, “Property, Plant and Equipment, Net,” to the Consolidated Financial Statements for more information.
Impairment of long-lived assets, including definite-lived intangible assets The Company reviews the carrying value of its long-lived assets, whether held for use or disposal, including other amortizable intangible assets, when events and circumstances warrant such a review under ASC Topic 360. In assessing long-lived assets for an impairment loss, assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In assessing long-lived assets for impairment, management generally considers individual facilities to be the lowest level for which identifiable cash flows are largely independent. A recoverability review is performed using the undiscounted cash flows if there is a triggering event. If the undiscounted cash flow test for recoverability identifies a possible impairment, management will perform a fair value analysis. Management determines fair value under ASC Topic 820 using the appropriate
valuation technique of market, income or cost approach. If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value.
Management believes that the estimates of future cash flows and fair value assumptions are reasonable; however, changes in assumptions underlying these estimates could affect the valuations. Significant judgments and estimates used by management when evaluating long-lived assets for impairment include (1) an assessment as to whether an adverse event or circumstance has triggered the need for an impairment review; (2) undiscounted future cash flows generated by the asset; and (3) fair valuation of the asset.
Goodwill and other indefinite-lived intangible assets During the fourth quarter of each year, the Company qualitatively assesses its goodwill. This qualitative assessment evaluates various events and circumstances, such as macroeconomic conditions, industry and market conditions, cost factors, relevant events and financial trends, that may impact a reporting unit's fair value. Using this qualitative assessment, the Company determines whether it is more-likely-than-not the reporting unit's fair value exceeds its carrying value. If it is determined that it is not more-likely-than-not the reporting unit's fair value exceeds the carrying value, or upon consideration of other factors, including recent acquisition, restructuring or disposal activity or to refresh the fair values, the Company performs a quantitative goodwill impairment analysis. In addition, the Company also tests goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value.
The Company also has intangible assets related to acquired trade names that are classified as indefinite lived when there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. Costs to renew or extend the term of acquired intangible assets are recognized as expenses are incurred.
Similar to goodwill, the Company can elect to perform the impairment test for indefinite-lived intangibles other than goodwill (trade names) using a qualitative analysis, considering similar factors as outlined in the goodwill discussion in order to determine if it is more-likely-than-not that the fair value of the intangibles are less than the respective carrying values. If the Company elects to perform or is required to perform a quantitative analysis, the test consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset as of the impairment testing date. The Company estimates the fair value of indefinite-lived intangibles using the relief-from-royalty method, which it believes is an appropriate and widely used valuation technique for such assets. The fair value derived from the relief-from-royalty method is measured as the discounted cash flow savings realized from owning such trade names and not being required to pay a royalty for their use.
Refer to Note 10, “Goodwill and Other Intangibles,” to the Consolidated Financial Statements for more information.
Product warranties The Company provides warranties on some, but not all, of its products. The warranty terms are typically from one to three years. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and industry developments and recoveries from third parties. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the Company’s warranty accrual at the time an obligation becomes probable and can be reasonably estimated. Management believes that the warranty accrual is appropriate; however, in certain cases, initial customer claims exceed the amount accrued. Facts may become known related to these claims that may result in additional losses that could be material to the Company’s results of operations or cash flows. The product warranty accrual is allocated to current and non-current liabilities in the Consolidated Balance Sheets.
Refer to Note 11, “Product Warranty,” to the Consolidated Financial Statements for more information.
Other loss accruals and valuation allowances The Company has numerous other loss exposures, such as customer claims, workers’ compensation claims, litigation and recoverability of certain assets. Establishing loss accruals or valuation allowances for these matters requires the use of estimates and judgment in regard to the risk exposure and ultimate realization. The Company estimates losses using consistent and appropriate methods;
however, changes to its assumptions could materially affect the recorded accrued liabilities for loss or asset valuation allowances.
Environmental contingencies  The Company accounts for environmental costs in accordance with ASC Topic 450, “Contingencies.” Costs related to environmental assessments and remediation efforts at operating facilities are accrued when it is probable that a liability has been incurred and the amount of that liability can be reasonably estimated. Estimated costs are recorded at undiscounted amounts, based on experience and assessments and are regularly evaluated. The liabilities are recorded in Other current and Other non-current liabilities in the Company’s Consolidated Balance Sheets and are not material.
Refer to Note 18, “Contingencies,” to the Consolidated Financial Statements for more information.
Government grants The Company periodically receives government grants representing assistance provided by a government. These government grants are generally received in cash and typically provide reimbursement related to acquisition of property and equipment, product development or local governmental economic relief. The government grants are generally amortized using a systematic and rational method over the life of the grant. As of December 31, 2023, the Company recorded government grant related liabilities of $1 million in Other current liabilities in the Company’s Consolidated Balance Sheets. As of December 31, 2024 and 2023, the Company recorded $7 million and $6 million in Other non-current liabilities, respectively, in the Company’s Consolidated Balance Sheets. During the years ended December 31, 2024 and 2023, the Company recorded $28 million and $21 million of government grant-related credits in Selling, general and administrative expenses, respectively, and $2 million and $1 million in Cost of sales, respectively, in the Company’s Consolidated Statement of Operations.
Derivative financial instruments The Company recognizes that certain normal business transactions and foreign currency operations generate risk. Examples of risks include exposure to exchange rate risk related to transactions denominated in currencies other than the functional currency, changes in commodity costs and interest rates. It is the objective of the Company to assess the impact of these transaction risks and consider mitigating such risks through various methods, including financial derivatives. The majority of derivative instruments held by the Company are designated as hedges, have high correlation with the underlying exposure and are highly effective in offsetting underlying price movements. Accordingly, gains and losses from changes in qualifying hedge fair values are matched with the underlying transactions. Hedge instruments are generally reported gross, with no right to offset, on the Consolidated Balance Sheets at their fair value based on quoted market prices for contracts with similar maturities. The Company does not engage in any derivative transactions for purposes other than hedging specific operational risks.
Refer to Note 14, “Financial Instruments,” to the Consolidated Financial Statements for more information.
Foreign currency The financial statements of foreign subsidiaries are translated to U.S. Dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for each period for revenues, expenses and capital expenditures. The local currency is the functional currency for substantially all of the Company's foreign subsidiaries. Translation adjustments for foreign subsidiaries are recorded as a component of Accumulated other comprehensive (loss) income in equity. The Company recognizes transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred.
Refer to Note 17, “Accumulated Other Comprehensive Loss,” to the Consolidated Financial Statements for more information.
Pensions  The Company’s defined benefit pension plans are accounted for in accordance with ASC Topic 715. Disability early retirement benefits are accounted for in accordance with ASC Topic 712.
Pension costs and related liabilities and assets are dependent upon assumptions used in calculating such amounts. These assumptions include discount rates, expected returns on plan assets, health care cost trends, compensation and other factors. In accordance with U.S. GAAP, actual results that differ from the assumptions used are accumulated and amortized over future periods, and accordingly, generally affect recognized expense in future periods.
Refer to Note 15, “Retirement Benefit Plans,” to the Consolidated Financial Statements for more information.
Restructuring Restructuring costs may occur when the Company takes action to exit or significantly curtail a part of its operations or implements a reorganization that affects the nature and focus of operations. A restructuring charge can consist of severance costs associated with reductions to the workforce, costs to terminate an operating lease or contract, professional fees and other costs incurred related to the implementation of restructuring activities.
The Company generally records costs associated with voluntary separations at the time of employee acceptance. Costs for involuntary separation programs are recorded when management has approved the plan for separation, the employees are identified and aware of the benefits they are entitled to and it is unlikely that the plan will change significantly. When a plan of separation requires approval by or consultation with the relevant labor organization or government, the costs are recorded upon agreement. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period.
Income taxes The Company accounts for income taxes in accordance ASC Topic 740 (ASC 740). Income taxes as presented in the Company’s Consolidated Financial Statements have been allocated in a manner that is systematic, rational, and consistent with the broad principles of ASC 740. Prior to Spin-Off, the Company’s operations have been included in the Former Parent’s U.S. federal consolidated tax return, certain foreign tax returns, and certain state tax returns. For the purposes of the 2022 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 Combined Financial Statements of each member of a consolidated tax group as if the group member were a separate taxpayer.
In accordance with ASC 740, the Company’s income tax expense is calculated based on expected income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Accounting for income taxes is complex, in part because the Company conducts business globally and, therefore, files income tax returns in numerous tax jurisdictions. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances.
The determination of accruals for unrecognized tax benefits includes the application of complex tax laws in a multitude of jurisdictions across the Company’s global operations. Management judgment is required in determining the gross unrecognized tax benefits’ related liabilities. In the ordinary course of the Company’s business, there are many transactions and calculations where the ultimate tax determination is less than certain. Accruals for unrecognized tax benefits are established when, despite the belief that tax positions are supportable, there remain certain positions that do not meet the minimum probability threshold, which is a tax position that is more-likely-than-not to be sustained upon examination by the applicable taxing authority.
The Company records valuation allowances to reduce the carrying value of deferred tax assets to amounts that it expects are more-likely-than-not to be realized. The Company assesses existing deferred tax assets, net operating losses, and tax credits by jurisdiction and expectations of its ability to utilize these tax attributes through a review of past, current and estimated future taxable income and tax planning strategies.
Refer to Note 5, “Income Taxes,” to the Consolidated Financial Statements for more information.
New Accounting Pronouncements
Recently Adopted Accounting Standards
Accounting Standards Update (ASU) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This update is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. This guidance was effective for annual reporting periods beginning after December 15, 2023 and interim reporting periods beginning after December 15, 2024. The Company has adopted this guidance, refer to Note 22, “Reportable Segments and Related Information” to the Consolidated Financial Statements for more information.
Accounting Standards Not Yet Adopted
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 will provide the incremental disclosures in its Annual Report on Form 10-K for the year ended December 31, 2025.
In November 2024, the FASB issued ASU 2024-03 and ASU 2025-01, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40).” This guidance requires entities to disclose disaggregated information about certain income statement expense line items in the notes to the financial statements. This guidance is effective for annual reporting periods beginning after December 15, 2026. The Company is currently evaluating the impact of these ASUs on its financial statements.
v3.25.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 12 Months Ended
Dec. 31, 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.
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 December 31, 2024, the balance of contract liabilities was $7 million, of which $3 million was reflected in Other current liabilities and $4 million was reflected as 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 to seven years) as the underlying products are shipped and represent the Company’s remaining performance obligations as of the end of the period.
The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the years ended December 31, 2024, 2023, and 2022. Refer to Note 22, “Reportable Segments and Related Information” to the Consolidated Financial Statements, for more information.
Year Ended December 31, 2024
(In millions)Fuel SystemsAftermarketTotal
Americas$690 $768 $1,458 
Europe862 532 1,394 
Asia468 83 551 
Total$2,020 $1,383 $3,403 
Year Ended December 31, 2023
(In millions)Fuel SystemsAftermarketTotal
Americas$712 $776 $1,488 
Europe953 472 1,425 
Asia512 75 587 
Total$2,177 $1,323 $3,500 
Year Ended December 31, 2022
(In millions)Fuel SystemsAftermarketTotal
Americas$559 $811 $1,370 
Europe904 401 1,305 
Asia609 64 673 
Total$2,072 $1,276 $3,348 
v3.25.0.1
RESEARCH AND DEVELOPMENT COSTS
 12 Months Ended
Dec. 31, 2024
Research and Development [Abstract]  
RESEARCH AND DEVELOPMENT COSTS RESEARCH AND DEVELOPMENT COSTS
The Company’s net Research & Development (R&D) costs are primarily included in Selling, general and administrative expenses of the Consolidated Statements of Operations. Customer reimbursements are netted against gross R&D costs 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 costs on R&D activities:
 Year Ended December 31,
(in millions)202420232022
Gross R&D costs$209 $188 $200 
Customer reimbursements$(97)(80)(96)
Net R&D costs$112 $108 $104 
Net R&D costs as a percentage of net sales were 3.3%, 3.1% and 3.1% for the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
OTHER OPERATING EXPENSE (INCOME), NET
 12 Months Ended
Dec. 31, 2024
Other Income and Expenses [Abstract]  
OTHER OPERATING EXPENSE (INCOME), NET OTHER OPERATING EXPENSE (INCOME), NET
Items included in Other operating expense (income), net consist of:
Year Ended December 31,
(in millions)202420232022
Separation and transaction costs$31 $80 $31 
Asset impairments21 — 5 
Restructuring14 12 11 
(Gains) losses for other one-time events(7)3 2 
Royalty income from Former Parent— (17)(31)
R&D income from Former Parent— (2)(11)
Other operating income, net(4)(6)(11)
Other operating expense (income), net$55 $70 $(4)
Separation and transaction costs: During the year ended December 31, 2024, the Company recorded separation and transaction costs of $31 million. 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 years ended December 31, 2023 and 2022, the Company recorded separation and transaction costs of $80 million and $31 million, respectively, primarily related to professional fees and other costs associated with the separation of the Company.
Asset impairments: During the year ended December 31, 2024, the Company recorded impairment expense of $21 million related to the write down of property, plant and equipment associated with a Fuel Systems manufacturing plant in Europe. During the year ended December 31, 2022, the Company wound down its Aftermarket operation in Russia and recorded an impairment expense of $5 million for the impairment of an intangible asset related to this business.
Restructuring: For the years ended December 31, 2024, 2023, and 2022, the Company recorded $14 million, $12 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.
(Gains) losses for other one-time events: For the years ended December 31, 2024 and 2023, the Company recorded $7 million of gains and $3 million of losses, respectively, primarily due to insurance recoveries and associated losses related 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. For the years ended December 31, 2023 and 2022, the Company recognized royalty income from BorgWarner businesses in the amount of $17 million and $31 million, respectively. Refer to Note 21, “Related Party," for further information.
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. For the years ended December 31, 2023 and 2022, the Company recognized income related to these services of $2 million and $11 million, respectively. Refer to Note 21, "Related Party," for further information.
v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Earnings before income taxes and the provision for income taxes are presented in the following table.
Year Ended December 31,
(in millions)202420232022
Earnings before income taxes:
U.S.$5 $(18)$90 
Non-U.S.182 224 257 
Total$187 $206 $347 
Provision for income taxes:   
Current:   
Federal$13 $22 $28 
State— 2 1 
Foreign83 48 31 
Total current expense96 72 60 
Deferred:
Federal(9)(14)(12)
State(1)(2)(1)
Foreign22 48 38 
Total deferred expense12 32 25 
Total provision for income taxes$108 $104 $85 
The provision for income taxes resulted in an effective tax rate of approximately 58%, 50% and 24% for the years ended December 31, 2024, 2023 and 2022, respectively.
The following table provides a reconciliation of tax expense based on the U.S. statutory tax rate to final tax expense.
Year Ended December 31,
(in millions)202420232022
Income taxes at U.S. statutory rate of 21%$39 $43 $73 
Increases (decreases) resulting from:
Valuation allowance adjustments, net82 63 37 
Net tax on remittance of foreign earnings13 29 12 
Non-deductible transaction costs— 10 — 
Changes in accounting methods and filing positions(9)(2)2 
U.S. tax on foreign earnings7 12 — 
Foreign rate differentials5 (2)3 
Impact of tax law and rate changes— (1)— 
State taxes, net of federal benefit— (1)(1)
Tax credits(3)(1)(1)
Tax holidays(5)(6)(8)
Enhanced research and development deductions(9)(8)(9)
Reserve adjustments, settlements and claims3 (7)(7)
Non-taxable income(17)(30)(17)
Foreign currency remeasurement(7)1 — 
Non-deductible fines5 — — 
Other, net4 4 1 
Provision for income taxes, as reported$108 $104 $85 

The Company’s tax rate is affected by the tax laws and rates of the U.S. and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no tax benefit or expense was recognized due to a valuation allowance.
The Company’s effective tax rate was impacted beneficially by certain entities in China with the High and New Technology Enterprise (HNTE) status. The income tax benefit for HNTE status was approximately $5 million, $6 million and $8 million for the years ended December 31, 2024, 2023 and 2022, respectively. HNTE status is granted for three-year periods, and the Company seeks to renew such status on a regular basis.
In 2024, the Company recognized discrete tax expense of $21 million related to the establishment of a valuation allowance on its Polish operations as a result of the changes in judgment related to the recovery of its deferred tax assets. This expense was fully offset by a discrete tax benefit related to unremitted earnings as a result of change in structure and favorable provision to return adjustments in various jurisdictions.
In 2023, the Company recognized discrete tax benefits of $7 million, primarily due to certain unrecognized tax benefits and accrued interest related to a matter for which the statute of limitations had lapsed.
In 2022, the Company recognized a discrete tax benefit of $21 million related to an increase in its deferred tax assets as a result of an increase in the United Kingdom tax rate from 19% to 25%. This rate change was enacted in June 2021 and became effective April 2023.
The Company recognizes taxes due under the Global Intangible Low-Taxed Income (GILTI) provision as a current period expense.
A roll forward of the Company’s total gross unrecognized tax benefits is presented below:
(in millions)202420232022
Balance, January 1$11 $35 $64 
Additions based on tax positions related to current year— 1 2 
Additions for tax positions of prior years2 1 — 
Reductions for lapse in statute of limitations(1)— (14)
Reductions for closure of tax audits and settlements(2)(2)(12)
Reductions for tax positions of prior years— (11)(1)
(Distributions) Acquisitions— (14)— 
Translation adjustment— 1 (4)
Balance, December 31$10 $11 $35 
The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense and accrued approximately $6 million and $4 million for the payment of interest and penalties at December 31, 2024 and 2023, respectively. The Company recognized expense related to interest and penalties of $2 million and $1 million for the years ended December 31, 2024, and 2023, respectively.
As of December 31, 2024, approximately $15 million represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods.
The Company estimates that it is reasonably possible there could be a decrease of approximately $9 million in unrecognized tax benefits and interest in the next 12 months related to the closure of an audit and the lapse in statute of limitations subsequent to the reporting period from certain taxing jurisdictions.
The Company and/or one of its subsidiaries file income tax returns in the U.S. federal, various state jurisdictions and various foreign jurisdictions. In certain tax jurisdictions, the Company may have more than one taxpayer. The PHINIA U.S. group filed its first U.S. federal return for the tax year 2023 in 2024; therefore, tax year 2023 is the only open period subject to Internal Revenue Service (IRS) audit. The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows:
Tax jurisdictionYears no longer subject to auditTax jurisdictionYears no longer subject to audit
United Kingdom2019 and priorTurkey2018 and prior
Mexico2017 and priorLuxembourg2017 and prior
China2018 and priorPoland2019 and prior
France2020 and priorRomania2018 and prior
The components of deferred tax assets and liabilities consist of the following:
December 31,
(in millions)20242023
Deferred tax assets:
Net operating loss and capital loss carryforwards$357 $252 
Interest limitation carryforwards188 188 
Accrued expenses21 24 
Pension29 35 
Employee compensation15 12 
Warranty9 11 
Other45 46 
Total deferred tax assets$664 $568 
Valuation allowances(552)(413)
Net deferred tax asset$112 $155 
Deferred tax liabilities:  
Goodwill and intangible assets$(34)$(51)
Unremitted foreign earnings(51)(50)
Unrealized gain on equity securities— (4)
Fixed assets(28)(15)
Other(10)(29)
Total deferred tax liabilities(123)(149)
Net deferred taxes$(11)$6 
As of December 31, 2024, certain non-U.S. operations had net operating loss carryforwards totaling $1.4 billion, available to offset future taxable income. These carryforwards are subject to expiration at various dates from 2026 through 2044. The Company has a valuation allowance against $1.4 billion of these non-U.S. net operating loss carryforwards.
The Company reviews the likelihood that the benefit of its deferred tax assets will be realized and, therefore, the need for valuation allowances on a quarterly basis. The Company assesses existing deferred tax assets, net operating loss carryforwards, and tax credit carryforwards by jurisdiction and expectations of its ability to utilize these tax attributes through a review of past, current, and estimated future taxable income and tax planning strategies. If, based upon the weight of available evidence, it is more-likely-than-not the deferred tax assets will not be realized, a valuation allowance is recorded. Due to recent restructurings, the Company concluded that the weight of the negative evidence outweighs the positive evidence in certain foreign jurisdictions. As a result, the Company believes it is more-likely-than-not that the net deferred tax assets in certain foreign jurisdictions that include entities in Luxembourg, Poland, and the United Kingdom will not be realized in the future.
The following table represents a summary of the valuation allowances against deferred tax assets as of and for the three years December 31, 2024, 2023, and 2022:
(in millions)202420232022
Beginning balance, January 1$413 $478 $466 
Establishment of new allowances1
22 3 — 
Net change to existing allowances2
60 60 37 
Opening balance sheet equity/other3
— (110)— 
Foreign currency translation(29)(18)(25)
Changes in accounting methods and filing positions4
86 — — 
Ending balance, December 31$552 $413 $478 
_____________________________
1 Reflects valuation allowances initially established as a result of a change in management’s judgment regarding the realizability of deferred tax assets.
2 Reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of a change in management’s judgment regarding previously established valuation allowances, remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax asset.
3 Reflects movements in previously established valuation allowances primarily recorded to equity as result of the Spin-off from the Former Parent in 2023.
4Reflects movements that have a disclosure-only impact as they are offset by corresponding movements in deferred tax assets.
As of December 31, 2024, the Company recorded deferred tax liabilities of $51 million with respect to foreign unremitted earnings. The Company did not provide deferred tax liabilities with respect to certain book versus tax basis differences not represented by undistributed earnings of approximately $392 million as of December 31, 2024, because the Company continues to assert indefinite reinvestment of these basis differences. These basis differences would become taxable upon the sale or liquidation of the foreign subsidiaries. Based on the Company's structure, it is impracticable to determine the unrecognized deferred tax liability on these earnings. Actual tax liability, if any, would be dependent on circumstances existing when a repatriation, sale, or liquidation occurs.
v3.25.0.1
RECEIVABLES, NET
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
RECEIVABLES, NET RECEIVABLES, NET
The table below provides details of receivables as of December 31, 2024 and 2023:
December 31,
(in millions)20242023
Receivables, net:
Customers$574 $658 
Indirect taxes 119 167 
Due from Former Parent80 159 
Other53 44 
Gross receivables826 1,028 
Allowance for credit losses(9)(11)
Total receivables, net$817 $1,017 
The table below summarizes the activity in the allowance for credit losses for the years ended December 31, 2024, 2023 and 2022:
(in millions)
202420232022
Beginning balance, January 1$(11)$(7)$(4)
Provision(1)(8)(4)
Write-offs3 4 — 
Translation adjustment and other— — 1 
Ending balance, December 31$(9)$(11)$(7)
Factoring
The Company has arrangements with various financial institutions to sell eligible trade receivables from certain customers in North America and Europe. These arrangements can be terminated at any time subject to prior written notice. The receivables under these arrangements are sold without recourse to the Company and are, therefore, accounted for as true sales. During the years ended December 31, 2024, 2023 and 2022, the Company sold $122 million, $152 million and $142 million of receivables, respectively, under these arrangements. Additionally, during the same periods, expenses of $6 million, $9 million and $5 million, respectively, were recognized within interest expense.
v3.25.0.1
INVENTORIES
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
A summary of Inventories is presented below:
December 31,
(in millions)
20242023
Raw material and supplies$234 $286 
Work-in-progress40 46 
Finished goods170 155 
Inventories$444 $487 
v3.25.0.1
OTHER CURRENT AND NON-CURRENT ASSETS
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER CURRENT AND NON-CURRENT ASSETS OTHER CURRENT AND NON-CURRENT ASSETS
December 31,
(in millions)
20242023
Prepayments and other current assets:
Prepaid taxes$32 $26 
Prepaid engineering19 3 
Prepaid customer tooling14 3 
Prepaid software10 5 
Customer return assets8 8 
Prepaid insurance4 3 
Other9 10 
Total prepayments and other current assets$96 $58 
Investments and long-term receivables:
Long-term receivables$52 $46 
Investment in equity affiliates51 48 
Investment in equity securities5 4 
Due from Former Parent3 17 
Total investments and long-term receivables$111 $115 
Other non-current assets:
Operating leases (Note 19)$54 $63 
Deferred income taxes (Note 5)43 61 
Customer incentive payments9 10 
Other22 28 
Total other non-current assets$128 $162 
v3.25.0.1
PROPERTY, PLANT AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT, NET PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net is stated at cost less accumulated depreciation and amortization, and consisted of:
December 31,
(in millions)
20242023
Land, land use rights and buildings$236 $250 
Machinery and equipment1,035 1,031 
Finance lease assets2 — 
Construction in progress84 79 
Total property, plant and equipment, gross1,357 1,360 
Less: accumulated depreciation545 481 
Property, plant and equipment, net, excluding tooling812 879 
Tooling, net of amortization31 42 
Property, plant and equipment, net$843 $921 
v3.25.0.1
GOODWILL AND OTHER INTANGIBLES
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLES GOODWILL AND OTHER INTANGIBLES
The Company’s goodwill is tested for impairment annually in the fourth quarter for all reporting units, and more frequently if events or circumstances warrant such a review. The Company performed quantitative impairment testing during the fourth quarter of 2024. The estimated fair value was determined using a combined income and market approach. The market approach is based on market multiples (revenue and “EBITDA”, defined as earnings before interest, taxes, depreciation and amortization) and requires an estimate of appropriate multiples based on market data for comparable companies. The market valuation models and other financial ratios used by the Company require certain assumptions and estimates regarding the applicability of those models to the Company’s facts and circumstances.
The Company believes the assumptions and estimates used to determine the estimated fair value are reasonable. Different assumptions could materially affect the estimated fair value. The primary assumptions affecting the Company’s 2024 goodwill quantitative impairment review are as follows:
•Discount rates: The Company used weighted average cost of capital (“WACC”) as the discount rates for future cash flows. The WACC is intended to represent a rate of return that would be expected by a market participant.
•EBITDA margins: The Company used historical and expected EBITDA margins, which may vary based on the projections of the reporting unit being evaluated.
•Revenue growth rates: The Company used a global automotive market industry growth rate forecast adjusted to estimate its own market participation for product lines.
•Market multiples: The Company used appropriate multiples based on market data for comparable companies.
In addition to the above primary assumptions, the Company notes the following risks to volume and operating income assumptions that could have an impact on the discounted cash flow models:
•The automotive industry is cyclical, and the Company’s results of operations could be adversely affected by industry downturns.
•The automotive industry is evolving, and if the Company does not respond appropriately, its results of operations could be adversely affected.
•The Company is dependent on market segments that use its key products and could be affected by decreasing demand in those segments.
•The Company is subject to risks related to international operations.
The results of the impairment testing performed indicated that the estimated fair value of the Fuel Systems and Aftermarket reporting units exceeded their carrying values by considerable amounts. It was determined that the estimated fair value of each reporting unit exceeded its respective carrying value and as such, the Company’s goodwill was not considered impaired as of the fourth quarter of 2024.
Future changes in the judgments, assumptions and estimates from those used in acquisition-related valuations and goodwill impairment testing, including discount rates or future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges that could materially affect the Company’s financial statements in any given year.
A summary of the changes in the carrying amount of goodwill is presented in the following tables. The Company has determined that each of the reportable segments is also a reporting unit. Refer to Note 22, “Reportable Segments and Related Information” for more information.
20242023
(in millions)Fuel SystemsAftermarketFuel SystemsAftermarket
Gross goodwill balance, January 1$61 $551 $58 $545 
Accumulated impairment losses, January 1— (113)— (113)
Net goodwill balance, January 1$61 $438 $58 $432 
Goodwill during the year:
Translation adjustment and other(1)(27)3 6 
Net goodwill balance, December 31$60 $411 $61 $438 
The Company’s other intangible assets, primarily from acquisitions, consist of the following:
 December 31, 2024December 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
$144 $51 $93 $149 $41 $108 
Customer relationships
14 - 15
259 118 141 268 104 164 
Total amortized intangible assets403 169 234 417 145 272 
Unamortized trade names140 — 140 145 — 145 
Total other intangible assets$543 $169 $374 $562 $145 $417 
Amortization of other intangible assets was $28 million for each of the years ended December 31, 2024, 2023 and 2022. The Company utilizes the straight-line method of amortization recognized over the estimated useful lives of the assets. The estimated future annual amortization expense, primarily for acquired intangible assets, is $27 million for each of the years 2025 through 2029 and $99 million thereafter.
A roll forward of the gross carrying amounts and related accumulated amortization of the Company’s other intangible assets is presented below:
Gross carrying amountsAccumulated amortization
(in millions)2024202320242023
Beginning balance, January 1$562 $547 $145 $115 
Amortization— — 28 28 
Translation adjustment(19)15 (4)2 
Ending balance, December 31$543 $562 $169 $145 
v3.25.0.1
PRODUCT WARRANTY
 12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
PRODUCT WARRANTY PRODUCT WARRANTY
The Company provides warranties on some, but not all, of its products. The warranty terms are typically from one to three years. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and industry developments and recoveries from third parties. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the Company’s warranty accrual at the time the Company believes it is probable that a loss will be incurred and the amount can be reasonably estimated. See Note 18, “Contingencies”, for further discussion on the Company’s quarterly process for accruals relating to commercial and legal matters. Management believes that the warranty accrual is appropriate; however, in certain cases, initial customer claims exceed the amount accrued. Facts may become known related to these claims that may result in additional losses that could be material to the Company’s results of operations or cash flows. The Company’s warranty provisions are primarily included in Cost of sales in the Consolidated Statements of Operations. The product warranty accrual is allocated to current and non-current liabilities in the Consolidated Balance Sheets.
The following table summarizes the activity in the product warranty accrual accounts:
(in millions)20242023
Beginning balance, January 1$56 $60 
Provisions for current period sales 46 43 
Adjustments of prior estimates2 (2)
Payments(42)(45)
Other, primarily translation adjustment(1)— 
Ending balance, December 31$61 $56 
The product warranty liability is classified in the Consolidated Balance Sheets as follows:
December 31,
(in millions)20242023
Other current liabilities$36 $30 
Other non-current liabilities25 26 
Total product warranty liability$61 $56 
v3.25.0.1
NOTES PAYABLE AND DEBT
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
NOTES PAYABLE AND DEBT NOTES PAYABLE AND DEBT
The Company had short-term and long-term debt outstanding as follows:
December 31,
(in millions)20242023
Short-term debt
Short-term borrowings$— $75 
Long-term debt
5.000% Senior notes due 10/01/25 ($24 million par value)
$24 $25 
6.750% Senior notes due 4/15/2029 ($525 million par value)
518 — 
6.625% Senior notes due 10/15/2032 ($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 leases2 — 
Total long-term debt$988 $723 
Less: current portion25 14 
Long-term debt, net of current portion$963 $709 
The weighted average interest rate on short-term borrowings outstanding as of December 31, 2023 was 7.9%. The weighted average interest rate on all borrowings outstanding as of December 31, 2024 and 2023 was 6.7% and 8.8%, respectively.
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. The Credit Agreement contains customary covenants relating to us and our subsidiaries concerning, among other things, investments, dispositions of assets, indebtedness, liens on assets, and dividends and other distributions. The Credit Agreement also contains financial covenants related to the total net leverage ratio as discussed below and the consolidated interest coverage ratio of the Company, determined as of the end of each fiscal quarter, to be at least 3.00 to 1.00. 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.
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.
As of December 31, 2023, the Company had $75 million in borrowings under these facilities, which are reported in Short-term borrowings and current portion of long-term debt on the Consolidated Balance Sheets. The Company utilized its committed revolving credit facility for short-term working capital requirements. As of December 31, 2024, the Company had no outstanding borrowings under the Revolving Facility, and availability of $499 million.
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 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 (as defined below). 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 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 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.
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 Former Parent 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.
Annual principal payments required as of December 31, 2024 are as follows:
(in millions)
2025$25 
20261 
2027— 
2028— 
2029525 
After 2029450 
Total payments$1,001 
Less: debt issuance costs, net of unamortized premiums(13)
Total$988 
The Company’s long-term debt includes various covenants, none of which are expected to restrict future operations.The Company was in compliance with all covenants as of December 31, 2024.
As of December 31, 2024, the estimated fair values of the Company’s long-term debt totaled $1,007 million, which is $21 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 was $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.
v3.25.0.1
OTHER CURRENT AND NON-CURRENT LIABILITIES
 12 Months Ended
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]  
OTHER CURRENT AND NON-CURRENT LIABILITIES OTHER CURRENT AND NON-CURRENT LIABILITIES
Additional detail related to liabilities is presented in the table below:
December 31,
(in millions)20242023
Other current liabilities:
Payroll and employee related$106 $92 
Customer related98 109 
Product warranties (Note 11)36 30 
Income taxes payable35 39 
Accrued freight17 21 
Interest17 1 
Operating leases (Note 19)17 17 
Refundable customer deposits9 8 
Supplier related8 14 
Uncertain tax positions7 — 
Deferred engineering6 6 
Legal and professional fees6 6 
Employee termination benefits4 9 
Accrued utilities3 4 
Other non-income taxes3 8 
Deferred income3 6 
Other47 50 
Total other current liabilities$422 $420 
Other non-current liabilities:
Deferred income taxes (Note 5)$55 $56 
Operating leases (Note 19)39 49 
Product warranties (Note 11)25 26 
Deferred income11 7 
Uncertain tax positions8 15 
Other12 12 
Total other non-current liabilities$150 $165 
v3.25.0.1
FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS
The Company’s financial instruments may include long-term debt, interest rate and cross-currency swaps, commodity derivative contracts and foreign currency derivative contracts. All derivative contracts are placed with counterparties that have an S&P, or equivalent, investment grade credit rating at the time of the contracts’ placement. An adjustment for non-performance risk is considered in the estimate of fair value in derivative assets based on the counterparty credit default swap (CDS) rate. When the Company is in a net derivative liability position, the non-performance risk adjustment is based on its CDS rate. At December 31, 2024 and 2023, the Company had no derivative contracts that contained credit-risk-related contingent features.
The Company is exposed to certain market risks relating to our ongoing business operations, including foreign currency exchange rate risk, commodity price risk and interest rate risk. The Company, at times, may use certain financial instruments, primarily derivative contracts, to protect against these risks. Currently, the only risk the Company is managing through the use of financial instruments is foreign currency exchange rate risk related to forecasted cash flows, including capital expenditures, purchases, operating expenses or sales transactions, denominated in currencies other than the functional currency of the operating unit, and the foreign currency risk exposure associated with our net investment in certain foreign operations.
As of December 31, 2024, the United States dollar equivalent notional values of outstanding currency derivative instruments used for foreign currency cash flow hedging was $85 million. These amounts were primarily related to Euro denominated forward contracts at British Pound functional currency locations. As of December 31, 2023, there were no outstanding currency derivative instruments. At December 31, 2024 and 2023, there were no significant derivative asset or liability balances recorded in the Consolidated Balance Sheets as being payable to or receivable from counterparties under ASC Topic 815, “Derivatives and Hedging”.
The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges.
(in millions)Deferred gain (loss) in AOCI atGain (loss) expected to be reclassified to income in one year or less
Contract TypeDecember 31, 2024December 31, 2023
Foreign currency$(11)$(6)$— 
Derivative instruments designated as hedging instruments as defined by ASC Topic 815 recognized in Other comprehensive income for the years ended December 31, 2024, 2023, and 2022 were a loss of $0 million, a loss of $3 million, and a gain of $5 million, respectively. No material gains or losses were recorded in Net earnings for the periods presented.
The gains or losses recorded in income related to components excluded from the assessment of effectiveness for derivative instruments designated as cash flow hedges were immaterial for the periods presented.
The gains and (losses) attributable to the financial instrument designated as a net investment hedge were recognized in other comprehensive income (loss) during the periods presented below.
(in millions)
Year Ended December 31,
Net investment hedges202420232022
Foreign currency$(5)$(2)$6 
The Company utilizes foreign currency derivatives not designated as hedging instruments to mitigate the variability of the remeasurement of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains (losses) recorded in income:
(in millions)Year Ended December 31,
Contract TypeLocation202420232022
Foreign CurrencyCost of sales$— $4 $(1)
Foreign CurrencySelling, general and administrative expenses$(1)$(1)$— 
v3.25.0.1
RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
RETIREMENT BENEFIT PLANS RETIREMENT BENEFIT PLANS
The Company 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. Under
specified conditions, the Company will make contributions to the plans and/or match a percentage of the employee contributions up to certain limits.
Prior to the Spin-Off, certain of the Company’s employees participated in defined benefit pension plans sponsored in part by BorgWarner. The Company recorded negligible expense for the years ended December 31, 2023 and 2022, to record its allocation of pension expense related to this plan. In connection with the completion of the Spin-Off, the Company was required to assume additional defined benefit plan liabilities, along with the associated deferred costs in Accumulated other comprehensive loss.
The Company has a number of defined benefit pension plans covering eligible salaried and hourly employees and their dependents. The defined pension benefits provided are primarily based on (1) years of service and (2) average compensation or a monthly retirement benefit amount. The Company provides defined benefit pension plans in France, Germany, India, Japan, Mexico, Turkey, South Korea and the United Kingdom. Some of the Company’s defined benefit plans are frozen, and no additional service cost is being accrued, most notably the U.K. Pension Plan. The measurement date for all plans is December 31.
The following table summarizes the expenses (income) for the Company’s defined contribution and defined benefit pension plans:
Year Ended December 31,
(in millions)202420232022
Defined contribution expense$16 $14 $23 
Defined benefit pension expense (income)4 5 (30)
Total$20 $19 $(7)
The following provides a roll forward of the plans’ benefit obligations, plan assets, funded status and recognition in the Consolidated Balance Sheets:
Pension Benefits
(in millions)20242023
Change in projected benefit obligation:  
Projected benefit obligation, January 1$950 $867 
Service cost4 3 
Interest cost45 45 
Settlement and curtailment— (2)
Actuarial (gain) loss(103)9 
Currency translation(23)42 
Other— 1 
Spin-Off— 33 
Benefits paid(53)(48)
Projected benefit obligation, December 311
$820 $950 
Change in plan assets:  
Fair value of plan assets, January 1$817 $788 
Actual return on plan assets(48)19 
Employer contribution5 5 
Settlements— (2)
Currency translation(14)41 
Spin-Off— 14 
Benefits paid(53)(48)
Fair value of plan assets, December 31$707 $817 
Funded status$(113)$(133)
Amounts in the Consolidated Balance Sheets consist of:  
Current liabilities$(2)$(2)
Non-current liabilities(111)(131)
Net amount$(113)$(133)
Amounts in accumulated other comprehensive loss consist of:  
Net actuarial loss$29 $40 
Net prior service credit(10)(10)
Net amount$19 $30 
Total accumulated benefit obligation for all plans$803 $932 
_____________________________
1 The decrease in the projected benefit obligation was primarily due to actuarial gains during the period.
The funded status of pension plans with accumulated benefit obligations in excess of plan assets is as follows:
December 31,
(in millions)20242023
Accumulated benefit obligation$(800)$(929)
Plan assets703 813 
Deficiency$(97)$(116)
Pension deficiency by country:  
United Kingdom(53)(71)
France(15)(17)
Mexico(17)(17)
Other(12)(11)
Total pension deficiency$(97)$(116)
The funded status of pension plans with projected benefit obligations in excess of plan assets is as follows:
December 31,
(in millions)20242023
Projected benefit obligation$(820)$(947)
Plan assets707 813 
Deficiency$(113)$(134)
Pension deficiency by country:
United Kingdom(53)(71)
France(19)(21)
Mexico(26)(25)
Other(15)(17)
Total pension deficiency$(113)$(134)
The weighted average asset allocations of the Company’s funded pension plans and target allocations by asset category are as follows:
December 31,Target Allocation
 20242023
Fixed income securities43 %42 %
30% - 50%
Real estate, cash and other35 %42 %
20% - 60%
Equity securities22 %16 %
10% - 30%
 100 %100 % 
The Company’s investment strategy is to maintain actual asset weightings within a preset range of target allocations. The Company believes these ranges represent an appropriate risk profile for the planned benefit payments of the plans based on the timing of the estimated benefit payments. In each asset category, separate portfolios are maintained for additional diversification. Investment managers are retained in each asset category to manage each portfolio against its benchmark. Each investment manager has appropriate investment guidelines. In addition, the entire portfolio is evaluated against a relevant peer group. The defined benefit pension plans did not hold any Company securities as investments as of December 31, 2024 and 2023. A portion of pension assets is invested in common and commingled trusts.
The Company expects to contribute a total of $5 million to $9 million into its defined benefit pension plans during 2025. Of the $5 million to $9 million in projected 2025 contributions, $2 million are contractually obligated, while any remaining payments would be discretionary.
ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values as follows:
Level 1:Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2:Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3:Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820:
A.Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.
B.Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost).
C.Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).
The following tables classify the Company’s defined benefit plan assets measured at fair value on a recurring basis:
  Basis of fair value measurements
(in millions)Balance at December 31, 2024Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV1
Fixed income securities$306 $6 $215 $— A$85 
Equity securities155 127 — 15 A, C13 
Cash22 22 — — A— 
Real estate and other224 20 — 65 A, C139 
 $707 $175 $215 $80  $237 
  Basis of fair value measurements
(in millions)Balance at December 31, 2023Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV1
Fixed income securities$414 $103 $— $— A$311 
Equity securities147 128 — 11 A, C8 
Cash54 54 — — A— 
Real estate and other202 5 — 64 A, C133 
 $817 $290 $— $75  $452 
_____________________________
1 Certain assets that are measured at fair value using the Net Asset Value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These amounts represent investments in commingled and managed funds that have underlying assets in fixed income securities, equity securities, and other assets.
The reconciliation of Level 3 defined benefit plans assets was as follows:
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)Real estate and otherEquity
Balance, January 1, 2023$46 $— 
Purchases, sales and settlements19 10 
Unrealized gains on assets still held at the reporting date(4)— 
Translation adjustment3 1 
Balance, December 31, 2023$64 $11 
Purchases, sales and settlements3 5 
Unrealized losses on assets still held at the reporting date(1)(1)
Translation adjustment(1)— 
Balance, December 31, 2024$65 $15 
The fair value of real estate properties is estimated using an appraisal provided by the administrator of the property or infrastructure investment. The fair value of equity securities is estimated using the mark-to-model method. Management believes these are appropriate methodologies to obtain the fair value of these assets.
See the table below for a breakout of net periodic benefit (income) cost:
Year Ended December 31,
(in millions)202420232022
Service cost$4 $3 $2 
Interest cost45 45 25 
Expected return on plan assets(42)(43)(57)
Amortization of unrecognized gain(3)(2)— 
Settlements, curtailments and other— 2 — 
Net periodic cost (income)$4 $5 $(30)
The components of net periodic benefit cost other than the service cost component are included in Other postretirement expense (income) in the Consolidated Statements of Operations.
The Company’s weighted average assumptions used to determine the benefit obligations for its defined benefit pension plans were as follows:
December 31,
(percent)20242023
Discount rate1
5.86 %4.98 %
Rate of compensation increase5.00 %5.49 %
________________
1 Includes 5.61% and 4.62% for the U.K. pension plans for December 31, 2024 and 2023, respectively.
The Company’s weighted average assumptions used to determine the net periodic benefit cost(income) for its defined benefit pension plans were as follows:
Year Ended December 31,
(percent)202420232022
Discount rate1
4.98 %5.19 %2.07 %
Effective interest rate on benefit obligation4.98 %5.24 %1.94 %
Expected long-term rate of return on assets2
5.29 %5.53 %4.22 %
Average rate of increase in compensation5.49 %5.03 %5.05 %
________________
1 Includes 4.62%, 4.93% and 1.81% for the U.K. pension plans for December 31, 2024, 2023 and 2022, respectively.
2 Includes 5.25%, 5.50% and 4.18% for the U.K. pension plans for December 31, 2024, 2023 and 2022, respectively.
The Company's approach to establishing the discount rate is based upon the market yields of high-quality corporate bonds, with appropriate consideration of each plan's defined benefit payment terms and duration of the liabilities. In determining the discount rate, the Company utilizes a full-yield approach in the estimation of service and interest components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.
The Company determines its expected return on plan asset assumptions by evaluating estimates of future market returns and the plans’ asset allocation. The Company also considers the impact of active management of the plans’ invested assets.
The estimated future benefit payments for the pension benefits are as follows:
(in millions) 
YearPension Benefits
2025$50 
202650 
202753 
202855 
202958 
2030-2034307 
v3.25.0.1
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company has granted restricted common stock and restricted stock units (collectively, “restricted stock”) and performance stock units as long-term incentive awards to employees and non-employee directors under the PHINIA Inc. 2023 Stock Incentive Plan (2023 Plan). The Company’s Board of Directors adopted the 2023 Plan in July 2023. The 2023 Plan authorizes the issuance of a total of 4.7 million shares. Approximately 3.6 million shares were available for future issuance as of December 31, 2024.
The Former Parent granted restricted stock and performance stock units as long-term incentive awards to employees and non-employee directors under the BorgWarner Inc. 2018 Stock Incentive Plan (2018 Plan). The Former Parent’s Board of Directors adopted the 2018 Plan in February 2018, and the Former Parent stockholders
approved the 2018 Plan at the annual meeting of stockholders on April 25, 2018. As discussed further below, outstanding awards under the 2018 Plan were replaced with PHINIA equity awards.
Stock-based compensation expense within the consolidated financial statements for periods prior to the Spin-Off was allocated to PHINIA based on the awards and terms previously granted to PHINIA employees while part of BorgWarner and includes the cost of PHINIA employees who participated in the 2018 Plan, as well as an allocated portion of the cost of the Former Parent corporate employee awards.
In connection with the Spin-Off, outstanding equity awards to employees under the 2018 Plan were replaced with PHINIA equity awards using a formula designed to maintain the economic value of the awards immediately before and after the Spin-Off. Accordingly, the number of restricted stock underlying each unvested award outstanding as of the date of the Spin-Off was multiplied by a factor of 1.74, which resulted in no increase in the intrinsic value of awards outstanding. The replaced restricted stock awards continue to vest in accordance with their original vesting period. These replacement awards did not result in additional compensation expense to the Company.
Restricted Stock: The value of restricted stock is determined by the market value of the Company’s common stock at the date of grant. In 2024, PHINIA granted restricted stock in the amount of approximately 360 thousand shares and 20 thousand shares to employees and non-employee directors, respectively. The value of the awards is recognized as compensation expense ratably over the restriction periods, generally two or three years for employees and one year for non-employee directors. As of December 31, 2024, there was $16 million of unrecognized compensation expense related to restricted stock that will be recognized over a weighted average period of approximately 1.7 years.
Restricted stock compensation expense recorded in the Consolidated Statements of Operations is as follows:
 Year Ended December 31,
(in millions, except per share data)202420232022
Restricted stock compensation expense$12 $10 $9 
Restricted stock compensation expense, net of tax$11 $8 $7 
A summary of the status of the Company’s nonvested restricted stock for employees and non-employee directors is as follows:
 Shares subject to restriction
(thousands)		Weighted average grant date fair value
Nonvested at January 1, 2022290 $41.53 
Granted143 $44.42 
Vested(63)$38.75 
    Forfeited(40)$44.89 
Nonvested at December 31, 2022330 $42.91 
Granted505 $33.99 
Vested(222)$34.03 
Forfeited(49)$45.61 
Converted1
513 
Nonvested at December 31, 20231
1,077 $20.01 
Granted402 $33.22 
Vested(389)$41.38 
Forfeited(32)$39.97 
Nonvested at December 31, 20241,058 $16.56 
________________
1 Reflects the replacement of outstanding equity awards to executives under the Former Parent Plan with PHINIA equity awards in conjunction with the Spin-Off. Outstanding equity awards to executives were multiplied by the conversion rate of 1.74.

Performance stock units: The Company grants performance stock units to members of senior management that vest at the end of three-year periods based on the following metric:
•Total Stockholder Return: This performance metric is based on the Company’s market performance in terms of total stockholder return relative to a peer group of automotive and industrial companies. Based on the Company’s relative ranking within the performance peer group, it is possible for none of the awards to vest or for a range of up to 200% of the target shares to vest.
The Company recognizes compensation expense relating to these performance stock units ratably over the performance period regardless of whether the market conditions are expected to be achieved. Compensation expense associated with these performance stock units are calculated using a lattice model (Monte Carlo simulation).
As of December 31, 2024, there was $6 million of unrecognized compensation expense related to total stockholder return units that will be recognized over a weighted average period of approximately 2 years.
The amounts expensed and common stock issued for performance stock units for the years ended December 31, 2024, 2023 and 2022 were as follows:
Year Ended December 31,
202420232022
Expense (in millions)Number of shares issued (in thousands)Expense (in millions)Number of shares issued (in thousands)Expense (in millions)Number of shares issued (in thousands)
Total Stockholder Return$3 — $— 8 $1 — 
Other performance-based1
— — 1 23 1 21 
Total$3 — $1 31 $2 21 
__________________
1 Other performance-based awards were performance stock units granted by the Former Parent that were scheduled to vest at the end of three-year periods. At Spin-Off, these performance stock units were replaced with PHINIA restricted stock unit awards, based on their target performance, as agreed upon by the BorgWarner Compensation Committee considering performance through the date of the Spin-Off, and then multiplied by the conversion rate of 1.74, as discussed above.
A summary of the status of the Company’s nonvested performance stock units for the years ended December 31, 2024, 2023 and 2022 were as follows:
Total Stockholder ReturnOther Performance-Based
Number of shares (in thousands)Weighted average grant date fair valueNumber of shares (in thousands)Weighted average grant date fair value
Nonvested at January 1, 202231 $51.65 81 $41.43 
Granted7 $66.89 21 $44.62 
Vested— $— (21)$41.92 
Forfeited(15)$54.59 (13)$45.30 
Nonvested at December 31, 202223 $54.42 68 $41.53 
Granted7 $79.71 22 $48.19 
Vested(10)$28.55 (20)$34.69 
Converted1
(20)(70)
Nonvested at December 31, 20231
— $— — $— 
Granted195 $44.56 — $— 
Forfeited(4)$44.56 — $— 
Nonvested at December 31, 2024191 $44.56 — $— 
________________
1 Reflects the conversion of outstanding equity awards to executives under the Former Parent Plan into PHINIA equity awards in conjunction with the Spin-Off.
v3.25.0.1
ACCUMULATED OTHER COMPREHENSIVE LOSS
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE LOSS
The following table summarizes the activity within accumulated other comprehensive loss:
(in millions)Foreign currency translation adjustmentsDefined benefit pension plansHedge instrumentsTotal
Beginning Balance, January 1, 2022$5 $59 $(2)$62 
Comprehensive (loss) income before reclassifications(90)(85)5 (170)
Income taxes associated with comprehensive income before reclassifications— 20 — 20 
Ending Balance December 31, 2022$(85)$(6)$3 $(88)
Comprehensive loss before reclassifications(13)(40)— (53)
Income taxes associated with comprehensive income before reclassifications— 11 — 11 
Reclassification from accumulated other comprehensive (loss) income— 2 (3)(1)
Ending Balance December 31, 2023$(98)$(33)$— $(131)
Comprehensive (loss) income before reclassifications(95)7 — (88)
Income taxes associated with comprehensive loss before reclassifications— (2)— (2)
Reclassification from accumulated other comprehensive income— 4 — 4 
Ending Balance December 31, 2024$(193)$(24)$— $(217)
v3.25.0.1
CONTINGENCIES
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENCIES CONTINGENCIES
In the normal course of business, the Company is party to various commercial and legal claims, actions and complaints, including matters involving warranty claims, intellectual property claims, governmental investigations and related proceedings, including relating to alleged or actual violations of vehicle emissions standards, general liability and various other risks.
It is not possible to predict with certainty whether or not the Company will ultimately be successful in any of these commercial and legal matters or, if not, what the impact might be. The Company 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. In November 2024, the Company filed, in Delaware Superior Court, a response to the Former Parent’s claim and asserted a number of counterclaims and, in December 2024, the Former Parent filed a motion to dismiss the Company’s counterclaims. The Former Parent’s motion is pending. The Company believes it has meritorious arguments in response to the Former Parent’s claim and with respect to its own claims, 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.
v3.25.0.1
LEASES AND COMMITMENTS
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES AND COMMITMENTS LEASES AND COMMITMENTS
The Company’s lease agreements primarily consist of real estate property, such as manufacturing facilities, warehouses and office buildings, in addition to personal property, such as vehicles, manufacturing and information technology equipment. The Company determines whether a contract is or contains a lease at contract inception. The majority of the Company's lease arrangements are comprised of fixed payments, and a limited number of these arrangements include a variable payment component based on certain index fluctuations. As of December 31, 2024, a significant portion of the Company’s leases were classified as operating leases.
Generally, the Company’s operating leases have renewal options that extend the lease terms, and some include options to terminate the agreement or purchase the leased asset. The amortizable life of these assets is the lesser of its useful life or the lease term, including renewal periods reasonably assured of being exercised at lease inception.
All leases with an initial term of 12 months or less without an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (short-term leases) are not recorded on the Consolidated Balance Sheet, and lease expense is recognized on a straight-line basis over the lease term.
The following table presents the lease assets and lease liabilities as of December 31, 2024 and 2023:
December 31,
(in millions)20242023
AssetsBalance Sheet Location
Operating leasesOther non-current assets$54 $63 
Finance leasesProperty, plant and equipment, net2 — 
Total lease assets$56 $63 
Liabilities
Current
Operating leases Other current liabilities$17 $17 
Finance leasesShort-term borrowings and current portion of long-term debt1 — 
Non-current
Operating leasesOther non-current liabilities39 49 
Finance leasesLong-term debt1 — 
Total lease liabilities$58 $66 
The following table presents lease obligations arising from obtaining leased assets for the years ended December 31, 2024, 2023, and 2022:
December 31,
(in millions)202420232022
Operating leases$2 $12 $13 
Finance leases2 — 2 
Total lease obligations$4 $12 $15 
The following table presents the maturity of lease liabilities as of December 31, 2024:
(in millions)Operating leasesFinance leases
2025$18 $1 
202617 1 
202715 — 
20285 — 
20292 — 
After 20293 — 
Total (undiscounted) lease payments$60 $2 
Less: Imputed interest4 — 
Present value of lease liabilities$56 $2 
In the years ended December 31, 2024, 2023 and 2022, the Company recorded operating lease expense of $20 million, $15 million and $18 million, respectively.
In the years ended December 31, 2024, 2023 and 2022, the operating cash flows for operating leases were $20 million, $20 million and $21 million, respectively.
In the years ended December 31, 2024, 2023 and 2022, the Company recorded short-term lease costs of $5 million, $1 million and $4 million, respectively.
Finance lease costs were immaterial for the periods presented.
ASC Topic 842 requires that the rate implicit in the lease be used if readily determinable. Generally, implicit rates are not readily determinable in the Company’s agreements, so the incremental borrowing rate is used instead for such lease arrangements. The incremental borrowing rates are determined using rates specific to the term of the lease, economic environments where lease activity is concentrated, value of lease portfolio, and assuming full collateralization of the loans. The following table presents the terms and discount rates:
December 31,
20242023
Weighted average remaining lease term (years)
Operating leases44
Finance leases54
Weighted average discount rate
Operating leases3.6 %3.0 %
Finance leases5.7 %3.6 %
LEASES AND COMMITMENTS LEASES AND COMMITMENTS
The Company’s lease agreements primarily consist of real estate property, such as manufacturing facilities, warehouses and office buildings, in addition to personal property, such as vehicles, manufacturing and information technology equipment. The Company determines whether a contract is or contains a lease at contract inception. The majority of the Company's lease arrangements are comprised of fixed payments, and a limited number of these arrangements include a variable payment component based on certain index fluctuations. As of December 31, 2024, a significant portion of the Company’s leases were classified as operating leases.
Generally, the Company’s operating leases have renewal options that extend the lease terms, and some include options to terminate the agreement or purchase the leased asset. The amortizable life of these assets is the lesser of its useful life or the lease term, including renewal periods reasonably assured of being exercised at lease inception.
All leases with an initial term of 12 months or less without an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (short-term leases) are not recorded on the Consolidated Balance Sheet, and lease expense is recognized on a straight-line basis over the lease term.
The following table presents the lease assets and lease liabilities as of December 31, 2024 and 2023:
December 31,
(in millions)20242023
AssetsBalance Sheet Location
Operating leasesOther non-current assets$54 $63 
Finance leasesProperty, plant and equipment, net2 — 
Total lease assets$56 $63 
Liabilities
Current
Operating leases Other current liabilities$17 $17 
Finance leasesShort-term borrowings and current portion of long-term debt1 — 
Non-current
Operating leasesOther non-current liabilities39 49 
Finance leasesLong-term debt1 — 
Total lease liabilities$58 $66 
The following table presents lease obligations arising from obtaining leased assets for the years ended December 31, 2024, 2023, and 2022:
December 31,
(in millions)202420232022
Operating leases$2 $12 $13 
Finance leases2 — 2 
Total lease obligations$4 $12 $15 
The following table presents the maturity of lease liabilities as of December 31, 2024:
(in millions)Operating leasesFinance leases
2025$18 $1 
202617 1 
202715 — 
20285 — 
20292 — 
After 20293 — 
Total (undiscounted) lease payments$60 $2 
Less: Imputed interest4 — 
Present value of lease liabilities$56 $2 
In the years ended December 31, 2024, 2023 and 2022, the Company recorded operating lease expense of $20 million, $15 million and $18 million, respectively.
In the years ended December 31, 2024, 2023 and 2022, the operating cash flows for operating leases were $20 million, $20 million and $21 million, respectively.
In the years ended December 31, 2024, 2023 and 2022, the Company recorded short-term lease costs of $5 million, $1 million and $4 million, respectively.
Finance lease costs were immaterial for the periods presented.
ASC Topic 842 requires that the rate implicit in the lease be used if readily determinable. Generally, implicit rates are not readily determinable in the Company’s agreements, so the incremental borrowing rate is used instead for such lease arrangements. The incremental borrowing rates are determined using rates specific to the term of the lease, economic environments where lease activity is concentrated, value of lease portfolio, and assuming full collateralization of the loans. The following table presents the terms and discount rates:
December 31,
20242023
Weighted average remaining lease term (years)
Operating leases44
Finance leases54
Weighted average discount rate
Operating leases3.6 %3.0 %
Finance leases5.7 %3.6 %
v3.25.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
The Company presents both basic and diluted earnings per share of common stock (EPS) amounts. Basic EPS is calculated by dividing net earnings by the weighted average shares of common stock outstanding during the reporting period. Diluted EPS is calculated by dividing net earnings by the weighted average shares of common stock and common stock equivalents outstanding during the reporting period.
For periods prior to July 3, 2023, the denominator for basic and diluted earnings per share was calculated using the 47.0 million PHINIA ordinary shares outstanding immediately following the Spin-Off. The same number of shares was used to calculate basic and diluted earnings per share in those periods since no PHINIA equity awards were outstanding prior to the Spin-Off.
The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the assumed proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized.
The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock:
Year Ended December 31,
(in millions except share and per share amounts)202420232022
Basic earnings per share:   
Net earnings attributable to PHINIA Inc.$79 $102 $262 
Weighted average shares of common stock outstanding44.046.9 47.0 
Basic earnings per share of common stock$1.80 $2.17 $5.57 
Diluted earnings per share:  
Net earnings attributable to PHINIA Inc.$79 $102 $262 
Weighted average shares of common stock outstanding44.046.9 47.0 
Effect of stock-based compensation0.80.1 — 
Weighted average shares of common stock outstanding including dilutive shares 44.847.0 47.0 
Diluted earnings per share of common stock$1.76 $2.17 $5.57 
v3.25.0.1
RELATED PARTY
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY RELATED PARTY
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 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, “Summary of Significant Accounting Policies,” 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 years ended December 31, 2023 and 2022 totaled $89 million and $118 million, respectively. These expenses were primarily included in Selling, general and administrative expenses and Other operating expense (income), net in the Consolidated Statements of Operations.
Royalty Income from Former Parent and R&D Income from Former Parent
The Company participated in royalty arrangements and provided applications testing and other R&D services to the Former Parent prior to the Spin-Off. See Note 4, “Other Operating Expense (Income), Net” for additional information.
Net Transfers from (to) Former Parent
Net transfers from (to) Former Parent are included within Former Parent investment in the Consolidated Statements of Changes in Equity. The components of the transfers from (to) Former Parent are as follows:
Year Ended December 31,
(in millions)20232022
General financing activities$(63)$(175)
Cash pooling and other equity settled balances with Former Parent(64)(110)
Related-party notes converted to equity260 — 
Corporate allocations89 118 
Research and development income from Former Parent(2)(11)
Total net transfers from Former Parent$220 $(178)
Exclude non-cash items:
Stock-based compensation$(4)$(11)
Other non-cash activities with Former Parent, net(16)(33)
Related-party notes converted to equity(260)— 
Cash pooling and intercompany financing activities with Former Parent, net55 18 
Total net transfers to Former Parent per Consolidated Statements of Cash Flow$(5)$(204)
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is comprised of two reportable segments, which are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems.
•Fuel Systems. This segment provides advanced fuel injection systems, fuel delivery modules, canisters, sensors, electronic control modules and associated software. Our highly engineered fuel injection systems portfolio includes pumps, injectors, fuel rail assemblies, engine control modules, and complete systems, including software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications.
•Aftermarket. Through this segment, the Company sells products to independent aftermarket customers and OES customers. Its product portfolio includes a wide range of products as well as maintenance, test equipment and vehicle diagnostics solutions. The Aftermarket segment also includes sales of starters and alternators to OEMs.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, separation and transaction costs, intangible asset amortization expense, impairment charges, other net expenses and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments. Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments.
The Company’s chief operating decision maker (“CODM”) is the chief executive officer.
The CODM uses Segment AOI for the financial planning and review process. The CODM considers actual-to-
forecast and actual-to-actual variances on a quarterly basis for Segment AOI when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Segment AOI for evaluating pricing strategy and to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
The following tables show segment revenues and significant expenses, Segment AOI, and segment information for the Company’s reportable segments:
2024 Segment Revenues and Significant Expenses
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net Sales from external customers$2,020 $1,383 $— $3,403 
Inter-segment eliminations$244 $10 $(254)$— 
Net Sales$2,264 $1,393 $(254)$3,403 
Less:
Cost of sales1,885 1,015 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
65 142 
Net R&D costs102 10 
Other segment items2
(6)6 
Segment AOI$218 $220 

2023 Segment Revenues and Significant Expenses
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net Sales from external customers$2,177 $1,323 $— $3,500 
Inter-segment eliminations$230 $6 $(236)$— 
Net Sales$2,407 $1,329 $(236)$3,500 
Less:
Cost of sales2,030 977 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
78 118 
Net R&D costs98 10 
Other segment items2
(14)28 
Segment AOI$215 $196 
2022 Segment Revenues and Significant Expenses
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net Sales from external customers$2,072 $1,276 $— $3,348 
Inter-segment eliminations$221 $8 $(229)$— 
Net Sales$2,293 $1,284 $(229)$3,348 
Less:
Cost of sales1,881 972 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
85 116 
Net R&D costs92 12 
Other segment items2
(17)(7)
Segment AOI$252 $191 
____________
1 Excludes intangible amortization.

2 Other segment items include inter-segment fees and other income.
Segment AOI
Year Ended December 31,
(in millions)202420232022
Fuel Systems$218 $215 $252 
Aftermarket220 196 191 
Segment AOI438 411 443 
Corporate, including stock-based compensation92 47 48 
Intangible asset amortization expense28 28 28 
Separation and transaction costs31 80 31 
(Gains) losses for other one-time events(7)3 2 
Restructuring expense14 12 11 
Asset impairments21 — 5 
Equity in affiliates’ earnings, net of tax(11)(10)(11)
Interest expense99 56 20 
Interest income(16)(13)(6)
Other postretirement expense (income)— 2 (32)
Earnings before income taxes$187 $206 $347 
Geographic Information
During the years ended December 31, 2024, 2023 and 2022, approximately 63%, 63% and 65% of the Company’s consolidated net sales were outside the U.S., respectively, attributing sales to the location of billing rather than the location of the customer. Outside the United States, no countries other than those presented below exceeded 5% of consolidated net sales during the years ended December 31, 2024, 2023, and 2022.
 Net salesProperty, plant and equipment, net
(in millions)202420232022202420232022
United States$1,267 $1,303 $1,187 $147 $138 $154 
Europe:
United Kingdom701 712 650 170 175 169 
Romania246 238 219 143 139 136 
Poland171 180 156 7 55 51 
Other Europe276 295 280 103 104 103 
Total Europe1,394 1,425 1,305 423 473 459 
China467 503 606 176 203 224 
Brazil178 175 167 29 35 28 
Other foreign97 94 83 68 72 59 
Total$3,403 $3,500 $3,348 $843 $921 $924 
2024 Segment information
Year-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)
Fuel Systems$1,902 $133 $83 
Aftermarket1,332 25 19 
Total3,234 158 102 
Corporate2
534 2 3 
Consolidated$3,768 $160 $105 
2023 Segment information
Year-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)
Fuel Systems$2,207 $141 $136 
Aftermarket1,364 28 13 
Total3,571 169 149 
Corporate2
470 1 1 
Consolidated$4,041 $170 $150 
2022 Segment information
Year-end assets Depreciation/ amortization
Long-lived asset expenditures1
(in millions)
Fuel Systems$2,314 $142 $91 
Aftermarket1,348 27 16 
Total3,662 169 107 
Corporate2
412 1 — 
Consolidated$4,074 $170 $107 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
Sales to Major Customers
Consolidated net sales to General Motors Company (including its subsidiaries) were approximately 17%, 16%, and 12% for the years ended December 31, 2024, 2023, and 2022, respectively. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented.
Sales by Product Line
The following table show sales by product line as a percent of total sales for the years ended December 31, 2024, 2023 and 2022. No other product line accounted for more than 10% of consolidated net sales in any of the years presented.
Year Ended December 31,
202420232022
Independent aftermarket and original equipment service solutions34 %31 %32 %
Light passenger vehicle applications27 %26 %23 %
Commercial vehicle and industrial applications20 %20 %22 %
Light commercial vehicle applications18 %22 %22 %
v3.25.0.1
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION
Year Ended December 31,
(in millions)202420232022
OPERATING
Net earnings$79 $102 $262 
 Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and tooling amortization132 143 142 
Intangible asset amortization28 28 28 
Restructuring expense, net of cash paid8 — 5 
Loss on extinguishment of debt22 — — 
Stock-based compensation expense14 10 11 
Asset impairments21 — 5 
Deferred income tax provision11 32 25 
Other non-cash adjustments(8)(7)3 
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Receivables149 79 (103)
Inventories23 (4)(60)
Prepayments and other current assets(33)(5)12 
Accounts payable and other current liabilities(114)(95)16 
Prepaid taxes and income taxes payable(9)— 31 
Other assets and liabilities(10)(26)(69)
Retirement plan contributions(5)(7)(5)
Net cash provided by operating activities$308 $250 $303 
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Interest, net$34 $26 $13 
Income taxes, net of refunds$94 $88 $51 
Non-cash investing transactions:
Period end accounts payable related to property, plant and equipment purchases$51 $48 $67 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net earnings $ 79 $ 102 $ 262
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Strategy
As part of our overall risk management system and processes, we assess, identify and manage material risks from cybersecurity threats through our Enterprise Risk Management (ERM) program. For a description of cybersecurity risks relevant to our business, see Item 1A, “Risk Factors.”
The Company generally approaches cybersecurity threats through a cross-functional, multilayered approach, with the goals of: (i) identifying, preventing and mitigating cybersecurity threats to the Company; (ii) preserving the confidentiality, security and availability of the information we collect and store for use in operating our business; (iii) protecting the Company’s intellectual property; (iv) maintaining the confidence of our customers, suppliers, other business partners and employees; and (v) providing appropriate disclosure of cybersecurity risks and incidents when required. Our cybersecurity and data protection policies, processes and strategies are informed by regulatory and business requirements, our prior experience addressing cybersecurity attacks and incidents (including with our
former affiliates) and industry practices, and are periodically adjusted based on the results of assessments conducted through our ERM practices, third-party audits and independent reviews, and other processes.
Consistent with the Company’s ERM practices, our cybersecurity policies, processes and layers of defense focus on the following areas:
•Surveillance and Monitoring. The Company maintains 24/7 cybersecurity threat surveillance in conjunction with a managed security service that monitors system logs and network traffic for indicators of compromise and other suspicious activity, and conducts monthly external vulnerability assessments and annual penetration testing.
•System Safeguards. The Company deploys system safeguards that are designed to protect the Company’s information systems from cybersecurity threats, including early detection and response antivirus tools, data leak prevention tools and systems, vulnerability scans of data centers, firewalls, anti-malware functionality and access controls, and programs to support remediation, replacement or isolation of systems that have reached, or are expected to reach, end of security life.
•Third-Party Collaboration. The Company utilizes collaboration mechanisms established with public and private entities, including intelligence and enforcement agencies, industry groups, and third-party service providers, to identify, assess and respond to cybersecurity risks.
•Third-Party Risk Management. The Company has processes in place for identifying and overseeing cybersecurity risks presented by third-party users of the Company’s systems, as well as third-party systems used by the Company.
•Training. The Company requires personnel, including new hires, to complete training regarding cybersecurity threats, incident reporting procedures and acceptable use of our information systems.
•Incident Response Planning. The Company has established and maintains a cybersecurity incident response plan that outlines an organized and timely approach for responding to and handling security incidents affecting the Company’s systems or data, including the intrusions or incidents involving data from a third party.
A key part of the Company’s strategy for managing risks from cybersecurity threats is the ongoing assessment and testing of the Company’s policies and processes through audits, assessments, tabletop exercises, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of our cybersecurity controls and oversight. Third-party audits and independent reviews of our cybersecurity measures, information security control environment and operating effectiveness are conducted on at least an annual basis.
As a global company, we have experienced cybersecurity attacks and incidents in the past, and we could in the future experience similar attacks. To date, we have not experienced a cybersecurity incident or attack, or any risk from cybersecurity threats, that has materially affected or is reasonably likely to materially affect the Company or our business strategy, results of operations, or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
As part of our overall risk management system and processes, we assess, identify and manage material risks from cybersecurity threats through our Enterprise Risk Management (ERM) program. For a description of cybersecurity risks relevant to our business, see Item 1A, “Risk Factors.”
The Company generally approaches cybersecurity threats through a cross-functional, multilayered approach, with the goals of: (i) identifying, preventing and mitigating cybersecurity threats to the Company; (ii) preserving the confidentiality, security and availability of the information we collect and store for use in operating our business; (iii) protecting the Company’s intellectual property; (iv) maintaining the confidence of our customers, suppliers, other business partners and employees; and (v) providing appropriate disclosure of cybersecurity risks and incidents when required. Our cybersecurity and data protection policies, processes and strategies are informed by regulatory and business requirements, our prior experience addressing cybersecurity attacks and incidents (including with our
former affiliates) and industry practices, and are periodically adjusted based on the results of assessments conducted through our ERM practices, third-party audits and independent reviews, and other processes.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Governance
The Board, in coordination with the Audit Committee, oversees the Company’s policies with respect to the assessment and management of risks from cybersecurity threats. The Board receives updates regarding cybersecurity risks primarily in connection with its oversight of the Company’s risk management practices. The Audit Committee receives updates regarding cybersecurity risks from the Company’s Chief Information Security Officer (CISO) and Chief Information Officer (CIO), including with respect to the assessment and management of such risks and recent developments, trends and the general threat environment, on at least a quarterly basis.
The Company’s cybersecurity team, which is led by our CISO, oversees the Company’s cybersecurity and data security operations, programs, policies and processes and their general effectiveness. The cybersecurity team, in coordination with other Incident Response Team members, works collaboratively across the Company to implement a program designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to cybersecurity incidents. The Company’s Incident Response Team consists of our CISO and other senior leaders from the Company’s cybersecurity (composed of information security and technology operations), compliance, legal, financial reporting and other key business and corporate functions. The CISO and other Incident Response Team members monitor the prevention, detection, mitigation and remediation of cybersecurity incidents in accordance with the incident response plan. The team is also responsible for informing and coordinating with the Company’s Disclosure Committee in timely reporting such incidents, as appropriate and depending on the severity
of the incident, and facilitating updates to the Strategy Board (consisting of our CEO, Chief Financial Officer (CFO), General Counsel, CIO and other members of management), Audit Committee and Board regarding such incidents until addressed.
We have experienced leaders responsible for assessing and managing risks arising from cybersecurity threats. Our CISO reports to the CIO and has served in various roles in information technology and information security for over 29 years, including most recently leading the Information Security Office of BorgWarner Inc. He holds a Bachelor of Science in Physics. The Company’s CIO reports to our CEO and has served in various roles in information technology and information security for over 26 years, including CIO of Gentherm Incorporated immediately prior to joining the Company. Our CIO holds a Bachelor of Science in Business, with a concentration in Computer Information Systems, and an MBA in Finance and Strategic Management. He is also a Digital Directors Network (DDN) Boardroom Certified Qualified Technology Expert (QTE). In addition, the Company’s CEO, CFO and General Counsel each have experience overseeing the management of cybersecurity and other risks similar to those impacting the Company’s business.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board, in coordination with the Audit Committee, oversees the Company’s policies with respect to the assessment and management of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee receives updates regarding cybersecurity risks from the Company’s Chief Information Security Officer (CISO) and Chief Information Officer (CIO), including with respect to the assessment and management of such risks and recent developments, trends and the general threat environment, on at least a quarterly basis.
Cybersecurity Risk Role of Management [Text Block]
The Company’s cybersecurity team, which is led by our CISO, oversees the Company’s cybersecurity and data security operations, programs, policies and processes and their general effectiveness. The cybersecurity team, in coordination with other Incident Response Team members, works collaboratively across the Company to implement a program designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to cybersecurity incidents. The Company’s Incident Response Team consists of our CISO and other senior leaders from the Company’s cybersecurity (composed of information security and technology operations), compliance, legal, financial reporting and other key business and corporate functions. The CISO and other Incident Response Team members monitor the prevention, detection, mitigation and remediation of cybersecurity incidents in accordance with the incident response plan. The team is also responsible for informing and coordinating with the Company’s Disclosure Committee in timely reporting such incidents, as appropriate and depending on the severity
of the incident, and facilitating updates to the Strategy Board (consisting of our CEO, Chief Financial Officer (CFO), General Counsel, CIO and other members of management), Audit Committee and Board regarding such incidents until addressed.
We have experienced leaders responsible for assessing and managing risks arising from cybersecurity threats. Our CISO reports to the CIO and has served in various roles in information technology and information security for over 29 years, including most recently leading the Information Security Office of BorgWarner Inc. He holds a Bachelor of Science in Physics. The Company’s CIO reports to our CEO and has served in various roles in information technology and information security for over 26 years, including CIO of Gentherm Incorporated immediately prior to joining the Company. Our CIO holds a Bachelor of Science in Business, with a concentration in Computer Information Systems, and an MBA in Finance and Strategic Management. He is also a Digital Directors Network (DDN) Boardroom Certified Qualified Technology Expert (QTE). In addition, the Company’s CEO, CFO and General Counsel each have experience overseeing the management of cybersecurity and other risks similar to those impacting the Company’s business.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The Company’s cybersecurity team, which is led by our CISO, oversees the Company’s cybersecurity and data security operations, programs, policies and processes and their general effectiveness. The cybersecurity team, in coordination with other Incident Response Team members, works collaboratively across the Company to implement a program designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to cybersecurity incidents. The Company’s Incident Response Team consists of our CISO and other senior leaders from the Company’s cybersecurity (composed of information security and technology operations), compliance, legal, financial reporting and other key business and corporate functions. The CISO and other Incident Response Team members monitor the prevention, detection, mitigation and remediation of cybersecurity incidents in accordance with the incident response plan. The team is also responsible for informing and coordinating with the Company’s Disclosure Committee in timely reporting such incidents, as appropriate and depending on the severity
of the incident, and facilitating updates to the Strategy Board (consisting of our CEO, Chief Financial Officer (CFO), General Counsel, CIO and other members of management), Audit Committee and Board regarding such incidents until addressed.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO reports to the CIO and has served in various roles in information technology and information security for over 29 years, including most recently leading the Information Security Office of BorgWarner Inc. He holds a Bachelor of Science in Physics. The Company’s CIO reports to our CEO and has served in various roles in information technology and information security for over 26 years, including CIO of Gentherm Incorporated immediately prior to joining the Company.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Company’s CIO reports to our CEO and has served in various roles in information technology and information security for over 26 years, including CIO of Gentherm Incorporated immediately prior to joining the Company. Our CIO holds a Bachelor of Science in Business, with a concentration in Computer Information Systems, and an MBA in Finance and Strategic Management. He is also a Digital Directors Network (DDN) Boardroom Certified Qualified Technology Expert (QTE). In addition, the Company’s CEO, CFO and General Counsel each have experience overseeing the management of cybersecurity and other risks similar to those impacting the Company’s business.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation Prior to the Spin-Off on July 3, 2023, the historical financial statements of PHINIA were prepared on a stand-alone combined basis and were derived from BorgWarner’s consolidated financial statements and accounting records as if the Fuel Systems and Aftermarket businesses of BorgWarner had been part of PHINIA for all periods presented. Accordingly, for periods prior to July 3, 2023, our financial statements are presented on a combined basis and for the periods subsequent to July 3, 2023 are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). The Company’s 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).
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 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 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. The year ended December 31, 2023 included net corporate allocation expenses incurred prior to the Spin-Off totaling $89 million. For the year ended December 31, 2022, net corporate allocation expenses totaled $118 million. Corporate allocation expenses were primarily included in Selling, general and administrative expenses.
Use of estimates
Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the accompanying notes, as well as the amounts of revenues and expenses reported during the periods covered by these financial statements and accompanying notes. Actual results could differ from those estimates.
Principles of consolidation Principles of consolidation The Consolidated Financial Statements include all majority-owned subsidiaries with a controlling financial interest. All inter-company balances and transactions have been eliminated in consolidation.
Joint ventures and equity securities
Joint venture and equity securities The Company has an investment in one unconsolidated joint venture: Delphi-TVS Diesel Systems Ltd (D-TVS), of which the Company owns 52.5%. This joint venture is a non-controlled affiliate in which the Company exercises significant influence but does not have a controlling financial interest and, therefore, is accounted for under the equity method. Although the Company is the majority owner, it does not have the ability to control significant decisions or management of the entity. The Company evaluated this investment under Accounting Standards Codification (ASC) Topic 810 and based on the following factors the Company does
not have the power to control the significant decisions of the entity and therefore does not have a controlling financial interest.
•Both partners appoint a managing director and these directors jointly manage all of the affairs of D-TVS, subject to supervision by the board of directors;
•The Company has only a 36% representation on the board of directors; and
•The construct of the board of directors prevents either party from having power/control as described in ASC Topic 810 because both parties lack the ability to directly and/or indirectly control governance and management of D-TVS through either its ownership interest or the board representation.
Generally, under the equity method, the Company’s original investment is recorded at cost and subsequently adjusted by the Company’s share of equity in income or losses. The carrying value of the Company’s investment was $51 million and $48 million as of December 31, 2024 and 2023, respectively. The Company monitors its equity method investments for indicators of other-than-temporary declines in fair value on an ongoing basis. If such a decline has occurred, an impairment charge is recorded, which is measured as the difference between the carrying value and the estimated fair value. The Company’s investment in this non-controlled affiliate is included within Investments and long-term receivables in the Consolidated Balance Sheets. The Company’s share of equity in income or losses is included in Equity in affiliates’ earnings, net of tax in the Consolidated Statements of Operations.
The Company also has certain investments for which it does not have the ability to exercise significant influence (generally when ownership interest is less than 20%). The Company’s investment in these equity securities is included within Investments and long-term receivables in the Consolidated Balance Sheet.
Interests in privately held companies that do not have readily determinable fair values are accounted for using the measurement alternative under ASC Topic 321, which includes monitoring on an ongoing basis for indicators of impairments or upward adjustments. These equity securities are measured at cost less impairments, adjusted for observable price changes in orderly transactions for the identical or similar investment of the same issuer. If the Company determines that an indicator of impairment or upward adjustment is present, an adjustment is recorded, which is measured as the difference between carrying value and estimated fair value. Estimated fair value is generally determined using an income approach on discounted cash flows or negotiated transaction values.
Revenue recognition
Revenue recognition Revenue is recognized when performance obligations under the terms of a contract are satisfied, which generally occurs with the transfer of control of the products. For most products, transfer of control occurs upon shipment or delivery; however, a limited number of customer arrangements for 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. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring the goods. Although the Company may enter into long-term supply arrangements with its major customers, the prices and volumes are not fixed over the life of the arrangements, and a contract does not exist for purposes of applying ASC Topic 606 until volumes are contractually known.
Sales incentives and allowances (including returns) are recognized as a reduction to revenue at the time of the related sale. The Company estimates the allowances based on an analysis of historical experience. Taxes assessed by a governmental authority collected by the Company concurrent with a specific revenue-producing transaction are excluded from net sales. Shipping and handling fees billed to customers are included in sales, while costs of shipping and handling are included in cost of sales. The Company has elected to apply the accounting policy election available under ASC Topic 606 and accounts for shipping and handling activities as a fulfillment cost.
The Company has a limited number of arrangements with customers where the price paid by the customer is dependent on the volume of product purchased over the term of the arrangement. In other arrangements, the Company will provide a rebate to customers based on the volume of products purchased during the course of the arrangement. The Company estimates the volumes to be sold over the term of the arrangement and recognizes revenue based on the estimated amount of consideration to be received from these arrangements.
Cost of sales
Cost of sales The Company includes materials, direct labor and manufacturing overhead within cost of sales. Manufacturing overhead is comprised of indirect materials, indirect labor, factory operating costs, warranty costs and other such costs associated with manufacturing products for sale.
Cash and cash equivalents
Cash and cash equivalents Cash and cash equivalents are valued at fair market value. It is the Company's policy to classify all highly liquid investments with original maturities of three months or less as cash and cash equivalents. Cash and cash equivalents are maintained with several financial institutions. Cash and cash equivalents are primarily held in foreign locations. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal risk.
Receivables, net and long-term receivables
Receivables, net and long-term receivables Accounts receivable and long-term receivables are stated at cost less an allowance for credit losses. An allowance for credit losses is recorded for amounts that may become uncollectible in the future. The allowance for credit losses is an estimate based on expected losses, current economic and market conditions, and a review of the current status of each customer’s accounts receivable.
Sales of receivables are accounted for in accordance with the ASC Topic 860. Agreements which result in true sales of the transferred receivables, as defined in ASC Topic 860, which occur when receivables are transferred to a third party without recourse to the Company, are excluded from amounts reported in the Consolidated Balance Sheets. Cash proceeds received from such sales are included in operating cash flows. The expenses associated with receivables factoring are recorded in the Consolidated Statements of Operations within interest expense.
Inventories Inventories Inventory is measured using first-in, first-out (FIFO) or average-cost methods at the lower of cost or net realizable value.
Pre-production costs related to long-term supply arrangements
Pre-production costs related to long-term supply arrangements Engineering, research and development and other design and development costs for products sold on long-term supply arrangements are expensed as incurred unless the Company has a contractual guarantee for reimbursement from the customer. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has title to the assets are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets, typically three to five years. Costs for molds, dies and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee for lump sum reimbursement from the customer are capitalized in Prepayments and other current assets.
Property, plant and equipment, net
Property, plant and equipment, net Property, plant and equipment is valued at cost less accumulated depreciation. Expenditures for maintenance, repairs and renewals of relatively minor items are generally charged to expense as incurred. Renewals of significant items are capitalized. Depreciation is generally computed on a straight-line basis over the estimated useful lives of the assets. Useful lives for buildings range from fifteen to forty years, and useful lives for machinery and equipment range from three to twelve years. For income tax purposes, accelerated methods of depreciation are generally used. Refer to Note 9, “Property, Plant and Equipment, Net,” to the Consolidated Financial Statements for more information.
Impairment of long-lived assets, including definite-lived intangible assets
Impairment of long-lived assets, including definite-lived intangible assets The Company reviews the carrying value of its long-lived assets, whether held for use or disposal, including other amortizable intangible assets, when events and circumstances warrant such a review under ASC Topic 360. In assessing long-lived assets for an impairment loss, assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In assessing long-lived assets for impairment, management generally considers individual facilities to be the lowest level for which identifiable cash flows are largely independent. A recoverability review is performed using the undiscounted cash flows if there is a triggering event. If the undiscounted cash flow test for recoverability identifies a possible impairment, management will perform a fair value analysis. Management determines fair value under ASC Topic 820 using the appropriate
valuation technique of market, income or cost approach. If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value.
Management believes that the estimates of future cash flows and fair value assumptions are reasonable; however, changes in assumptions underlying these estimates could affect the valuations. Significant judgments and estimates used by management when evaluating long-lived assets for impairment include (1) an assessment as to whether an adverse event or circumstance has triggered the need for an impairment review; (2) undiscounted future cash flows generated by the asset; and (3) fair valuation of the asset.
Goodwill and other indefinite-lived intangible assets
Goodwill and other indefinite-lived intangible assets During the fourth quarter of each year, the Company qualitatively assesses its goodwill. This qualitative assessment evaluates various events and circumstances, such as macroeconomic conditions, industry and market conditions, cost factors, relevant events and financial trends, that may impact a reporting unit's fair value. Using this qualitative assessment, the Company determines whether it is more-likely-than-not the reporting unit's fair value exceeds its carrying value. If it is determined that it is not more-likely-than-not the reporting unit's fair value exceeds the carrying value, or upon consideration of other factors, including recent acquisition, restructuring or disposal activity or to refresh the fair values, the Company performs a quantitative goodwill impairment analysis. In addition, the Company also tests goodwill in between annual test dates if an event occurs or circumstances change that could more-likely-than-not reduce the fair value of a reporting unit below its carrying value.
The Company also has intangible assets related to acquired trade names that are classified as indefinite lived when there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. Costs to renew or extend the term of acquired intangible assets are recognized as expenses are incurred.
Similar to goodwill, the Company can elect to perform the impairment test for indefinite-lived intangibles other than goodwill (trade names) using a qualitative analysis, considering similar factors as outlined in the goodwill discussion in order to determine if it is more-likely-than-not that the fair value of the intangibles are less than the respective carrying values. If the Company elects to perform or is required to perform a quantitative analysis, the test consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset as of the impairment testing date. The Company estimates the fair value of indefinite-lived intangibles using the relief-from-royalty method, which it believes is an appropriate and widely used valuation technique for such assets. The fair value derived from the relief-from-royalty method is measured as the discounted cash flow savings realized from owning such trade names and not being required to pay a royalty for their use.
Refer to Note 10, “Goodwill and Other Intangibles,” to the Consolidated Financial Statements for more information.
Product warranties
Product warranties The Company provides warranties on some, but not all, of its products. The warranty terms are typically from one to three years. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and industry developments and recoveries from third parties. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the Company’s warranty accrual at the time an obligation becomes probable and can be reasonably estimated. Management believes that the warranty accrual is appropriate; however, in certain cases, initial customer claims exceed the amount accrued. Facts may become known related to these claims that may result in additional losses that could be material to the Company’s results of operations or cash flows. The product warranty accrual is allocated to current and non-current liabilities in the Consolidated Balance Sheets.
Other loss accruals and valuation allowances
Other loss accruals and valuation allowances The Company has numerous other loss exposures, such as customer claims, workers’ compensation claims, litigation and recoverability of certain assets. Establishing loss accruals or valuation allowances for these matters requires the use of estimates and judgment in regard to the risk exposure and ultimate realization. The Company estimates losses using consistent and appropriate methods;
however, changes to its assumptions could materially affect the recorded accrued liabilities for loss or asset valuation allowances.
Environmental contingencies
Environmental contingencies  The Company accounts for environmental costs in accordance with ASC Topic 450, “Contingencies.” Costs related to environmental assessments and remediation efforts at operating facilities are accrued when it is probable that a liability has been incurred and the amount of that liability can be reasonably estimated. Estimated costs are recorded at undiscounted amounts, based on experience and assessments and are regularly evaluated. The liabilities are recorded in Other current and Other non-current liabilities in the Company’s Consolidated Balance Sheets and are not material.
Government grants Government grants The Company periodically receives government grants representing assistance provided by a government. These government grants are generally received in cash and typically provide reimbursement related to acquisition of property and equipment, product development or local governmental economic relief. The government grants are generally amortized using a systematic and rational method over the life of the grant.
Derivative financial instruments
Derivative financial instruments The Company recognizes that certain normal business transactions and foreign currency operations generate risk. Examples of risks include exposure to exchange rate risk related to transactions denominated in currencies other than the functional currency, changes in commodity costs and interest rates. It is the objective of the Company to assess the impact of these transaction risks and consider mitigating such risks through various methods, including financial derivatives. The majority of derivative instruments held by the Company are designated as hedges, have high correlation with the underlying exposure and are highly effective in offsetting underlying price movements. Accordingly, gains and losses from changes in qualifying hedge fair values are matched with the underlying transactions. Hedge instruments are generally reported gross, with no right to offset, on the Consolidated Balance Sheets at their fair value based on quoted market prices for contracts with similar maturities. The Company does not engage in any derivative transactions for purposes other than hedging specific operational risks.
Foreign currency
Foreign currency The financial statements of foreign subsidiaries are translated to U.S. Dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for each period for revenues, expenses and capital expenditures. The local currency is the functional currency for substantially all of the Company's foreign subsidiaries. Translation adjustments for foreign subsidiaries are recorded as a component of Accumulated other comprehensive (loss) income in equity. The Company recognizes transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred.
Pensions
Pensions  The Company’s defined benefit pension plans are accounted for in accordance with ASC Topic 715. Disability early retirement benefits are accounted for in accordance with ASC Topic 712.
Pension costs and related liabilities and assets are dependent upon assumptions used in calculating such amounts. These assumptions include discount rates, expected returns on plan assets, health care cost trends, compensation and other factors. In accordance with U.S. GAAP, actual results that differ from the assumptions used are accumulated and amortized over future periods, and accordingly, generally affect recognized expense in future periods.
Restructuring
Restructuring Restructuring costs may occur when the Company takes action to exit or significantly curtail a part of its operations or implements a reorganization that affects the nature and focus of operations. A restructuring charge can consist of severance costs associated with reductions to the workforce, costs to terminate an operating lease or contract, professional fees and other costs incurred related to the implementation of restructuring activities.
The Company generally records costs associated with voluntary separations at the time of employee acceptance. Costs for involuntary separation programs are recorded when management has approved the plan for separation, the employees are identified and aware of the benefits they are entitled to and it is unlikely that the plan will change significantly. When a plan of separation requires approval by or consultation with the relevant labor organization or government, the costs are recorded upon agreement. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period.
Income taxes
Income taxes The Company accounts for income taxes in accordance ASC Topic 740 (ASC 740). Income taxes as presented in the Company’s Consolidated Financial Statements have been allocated in a manner that is systematic, rational, and consistent with the broad principles of ASC 740. Prior to Spin-Off, the Company’s operations have been included in the Former Parent’s U.S. federal consolidated tax return, certain foreign tax returns, and certain state tax returns. For the purposes of the 2022 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 Combined Financial Statements of each member of a consolidated tax group as if the group member were a separate taxpayer.
In accordance with ASC 740, the Company’s income tax expense is calculated based on expected income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Accounting for income taxes is complex, in part because the Company conducts business globally and, therefore, files income tax returns in numerous tax jurisdictions. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances.
The determination of accruals for unrecognized tax benefits includes the application of complex tax laws in a multitude of jurisdictions across the Company’s global operations. Management judgment is required in determining the gross unrecognized tax benefits’ related liabilities. In the ordinary course of the Company’s business, there are many transactions and calculations where the ultimate tax determination is less than certain. Accruals for unrecognized tax benefits are established when, despite the belief that tax positions are supportable, there remain certain positions that do not meet the minimum probability threshold, which is a tax position that is more-likely-than-not to be sustained upon examination by the applicable taxing authority.
The Company records valuation allowances to reduce the carrying value of deferred tax assets to amounts that it expects are more-likely-than-not to be realized. The Company assesses existing deferred tax assets, net operating losses, and tax credits by jurisdiction and expectations of its ability to utilize these tax attributes through a review of past, current and estimated future taxable income and tax planning strategies.
New Accounting Pronouncements
New Accounting Pronouncements
Recently Adopted Accounting Standards
Accounting Standards Update (ASU) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This update is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. This guidance was effective for annual reporting periods beginning after December 15, 2023 and interim reporting periods beginning after December 15, 2024. The Company has adopted this guidance, refer to Note 22, “Reportable Segments and Related Information” to the Consolidated Financial Statements for more information.
Accounting Standards Not Yet Adopted
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 will provide the incremental disclosures in its Annual Report on Form 10-K for the year ended December 31, 2025.
In November 2024, the FASB issued ASU 2024-03 and ASU 2025-01, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40).” This guidance requires entities to disclose disaggregated information about certain income statement expense line items in the notes to the financial statements. This guidance is effective for annual reporting periods beginning after December 15, 2026. The Company is currently evaluating the impact of these ASUs on its financial statements.
v3.25.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table represents a disaggregation of revenue from contracts with customers by reportable segment and region for the years ended December 31, 2024, 2023, and 2022. Refer to Note 22, “Reportable Segments and Related Information” to the Consolidated Financial Statements, for more information.
Year Ended December 31, 2024
(In millions)Fuel SystemsAftermarketTotal
Americas$690 $768 $1,458 
Europe862 532 1,394 
Asia468 83 551 
Total$2,020 $1,383 $3,403 
Year Ended December 31, 2023
(In millions)Fuel SystemsAftermarketTotal
Americas$712 $776 $1,488 
Europe953 472 1,425 
Asia512 75 587 
Total$2,177 $1,323 $3,500 
Year Ended December 31, 2022
(In millions)Fuel SystemsAftermarketTotal
Americas$559 $811 $1,370 
Europe904 401 1,305 
Asia609 64 673 
Total$2,072 $1,276 $3,348 
v3.25.0.1
RESEARCH AND DEVELOPMENT COSTS (Tables)
 12 Months Ended
Dec. 31, 2024
Research and Development [Abstract]  
Schedule of Research and Development Arrangement, Contract to Perform for Others
The following table presents the Company’s gross and net costs on R&D activities:
 Year Ended December 31,
(in millions)202420232022
Gross R&D costs$209 $188 $200 
Customer reimbursements$(97)(80)(96)
Net R&D costs$112 $108 $104 
v3.25.0.1
OTHER OPERATING EXPENSE (INCOME), NET (Tables)
 12 Months Ended
Dec. 31, 2024
Other Income and Expenses [Abstract]  
Schedule of Other Operating Expense (Income), Net
Items included in Other operating expense (income), net consist of:
Year Ended December 31,
(in millions)202420232022
Separation and transaction costs$31 $80 $31 
Asset impairments21 — 5 
Restructuring14 12 11 
(Gains) losses for other one-time events(7)3 2 
Royalty income from Former Parent— (17)(31)
R&D income from Former Parent— (2)(11)
Other operating income, net(4)(6)(11)
Other operating expense (income), net$55 $70 $(4)
v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense
Earnings before income taxes and the provision for income taxes are presented in the following table.
Year Ended December 31,
(in millions)202420232022
Earnings before income taxes:
U.S.$5 $(18)$90 
Non-U.S.182 224 257 
Total$187 $206 $347 
Provision for income taxes:   
Current:   
Federal$13 $22 $28 
State— 2 1 
Foreign83 48 31 
Total current expense96 72 60 
Deferred:
Federal(9)(14)(12)
State(1)(2)(1)
Foreign22 48 38 
Total deferred expense12 32 25 
Total provision for income taxes$108 $104 $85 
Schedule of Effective Income Tax Rate Reconciliation
The following table provides a reconciliation of tax expense based on the U.S. statutory tax rate to final tax expense.
Year Ended December 31,
(in millions)202420232022
Income taxes at U.S. statutory rate of 21%$39 $43 $73 
Increases (decreases) resulting from:
Valuation allowance adjustments, net82 63 37 
Net tax on remittance of foreign earnings13 29 12 
Non-deductible transaction costs— 10 — 
Changes in accounting methods and filing positions(9)(2)2 
U.S. tax on foreign earnings7 12 — 
Foreign rate differentials5 (2)3 
Impact of tax law and rate changes— (1)— 
State taxes, net of federal benefit— (1)(1)
Tax credits(3)(1)(1)
Tax holidays(5)(6)(8)
Enhanced research and development deductions(9)(8)(9)
Reserve adjustments, settlements and claims3 (7)(7)
Non-taxable income(17)(30)(17)
Foreign currency remeasurement(7)1 — 
Non-deductible fines5 — — 
Other, net4 4 1 
Provision for income taxes, as reported$108 $104 $85 
Schedule of Unrecognized Tax Benefits Roll Forward
A roll forward of the Company’s total gross unrecognized tax benefits is presented below:
(in millions)202420232022
Balance, January 1$11 $35 $64 
Additions based on tax positions related to current year— 1 2 
Additions for tax positions of prior years2 1 — 
Reductions for lapse in statute of limitations(1)— (14)
Reductions for closure of tax audits and settlements(2)(2)(12)
Reductions for tax positions of prior years— (11)(1)
(Distributions) Acquisitions— (14)— 
Translation adjustment— 1 (4)
Balance, December 31$10 $11 $35 
Schedule of Tax Jurisdiction The PHINIA U.S. group filed its first U.S. federal return for the tax year 2023 in 2024; therefore, tax year 2023 is the only open period subject to Internal Revenue Service (IRS) audit. The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows:
Tax jurisdictionYears no longer subject to auditTax jurisdictionYears no longer subject to audit
United Kingdom2019 and priorTurkey2018 and prior
Mexico2017 and priorLuxembourg2017 and prior
China2018 and priorPoland2019 and prior
France2020 and priorRomania2018 and prior
Schedule of Deferred Tax Assets (Liabilities)
The components of deferred tax assets and liabilities consist of the following:
December 31,
(in millions)20242023
Deferred tax assets:
Net operating loss and capital loss carryforwards$357 $252 
Interest limitation carryforwards188 188 
Accrued expenses21 24 
Pension29 35 
Employee compensation15 12 
Warranty9 11 
Other45 46 
Total deferred tax assets$664 $568 
Valuation allowances(552)(413)
Net deferred tax asset$112 $155 
Deferred tax liabilities:  
Goodwill and intangible assets$(34)$(51)
Unremitted foreign earnings(51)(50)
Unrealized gain on equity securities— (4)
Fixed assets(28)(15)
Other(10)(29)
Total deferred tax liabilities(123)(149)
Net deferred taxes$(11)$6 
Schedule of Valuation Allowance
The following table represents a summary of the valuation allowances against deferred tax assets as of and for the three years December 31, 2024, 2023, and 2022:
(in millions)202420232022
Beginning balance, January 1$413 $478 $466 
Establishment of new allowances1
22 3 — 
Net change to existing allowances2
60 60 37 
Opening balance sheet equity/other3
— (110)— 
Foreign currency translation(29)(18)(25)
Changes in accounting methods and filing positions4
86 — — 
Ending balance, December 31$552 $413 $478 
_____________________________
1 Reflects valuation allowances initially established as a result of a change in management’s judgment regarding the realizability of deferred tax assets.
2 Reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of a change in management’s judgment regarding previously established valuation allowances, remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax asset.
3 Reflects movements in previously established valuation allowances primarily recorded to equity as result of the Spin-off from the Former Parent in 2023.
4Reflects movements that have a disclosure-only impact as they are offset by corresponding movements in deferred tax assets.
v3.25.0.1
RECEIVABLES, NET (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The table below provides details of receivables as of December 31, 2024 and 2023:
December 31,
(in millions)20242023
Receivables, net:
Customers$574 $658 
Indirect taxes 119 167 
Due from Former Parent80 159 
Other53 44 
Gross receivables826 1,028 
Allowance for credit losses(9)(11)
Total receivables, net$817 $1,017 
Schedule of Accounts Receivable, Allowance for Credit Loss
The table below summarizes the activity in the allowance for credit losses for the years ended December 31, 2024, 2023 and 2022:
(in millions)
202420232022
Beginning balance, January 1$(11)$(7)$(4)
Provision(1)(8)(4)
Write-offs3 4 — 
Translation adjustment and other— — 1 
Ending balance, December 31$(9)$(11)$(7)
v3.25.0.1
INVENTORIES (Tables)
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories
A summary of Inventories is presented below:
December 31,
(in millions)
20242023
Raw material and supplies$234 $286 
Work-in-progress40 46 
Finished goods170 155 
Inventories$444 $487 
v3.25.0.1
OTHER CURRENT AND NON-CURRENT ASSETS (Tables)
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
December 31,
(in millions)
20242023
Prepayments and other current assets:
Prepaid taxes$32 $26 
Prepaid engineering19 3 
Prepaid customer tooling14 3 
Prepaid software10 5 
Customer return assets8 8 
Prepaid insurance4 3 
Other9 10 
Total prepayments and other current assets$96 $58 
Investments and long-term receivables:
Long-term receivables$52 $46 
Investment in equity affiliates51 48 
Investment in equity securities5 4 
Due from Former Parent3 17 
Total investments and long-term receivables$111 $115 
Other non-current assets:
Operating leases (Note 19)$54 $63 
Deferred income taxes (Note 5)43 61 
Customer incentive payments9 10 
Other22 28 
Total other non-current assets$128 $162 
v3.25.0.1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Property, plant and equipment, net is stated at cost less accumulated depreciation and amortization, and consisted of:
December 31,
(in millions)
20242023
Land, land use rights and buildings$236 $250 
Machinery and equipment1,035 1,031 
Finance lease assets2 — 
Construction in progress84 79 
Total property, plant and equipment, gross1,357 1,360 
Less: accumulated depreciation545 481 
Property, plant and equipment, net, excluding tooling812 879 
Tooling, net of amortization31 42 
Property, plant and equipment, net$843 $921 
v3.25.0.1
GOODWILL AND OTHER INTANGIBLES (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
A summary of the changes in the carrying amount of goodwill is presented in the following tables. The Company has determined that each of the reportable segments is also a reporting unit. Refer to Note 22, “Reportable Segments and Related Information” for more information.
20242023
(in millions)Fuel SystemsAftermarketFuel SystemsAftermarket
Gross goodwill balance, January 1$61 $551 $58 $545 
Accumulated impairment losses, January 1— (113)— (113)
Net goodwill balance, January 1$61 $438 $58 $432 
Goodwill during the year:
Translation adjustment and other(1)(27)3 6 
Net goodwill balance, December 31$60 $411 $61 $438 
Schedule of Intangible Assets Gross Roll Forward
The Company’s other intangible assets, primarily from acquisitions, consist of the following:
 December 31, 2024December 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
$144 $51 $93 $149 $41 $108 
Customer relationships
14 - 15
259 118 141 268 104 164 
Total amortized intangible assets403 169 234 417 145 272 
Unamortized trade names140 — 140 145 — 145 
Total other intangible assets$543 $169 $374 $562 $145 $417 
A roll forward of the gross carrying amounts and related accumulated amortization of the Company’s other intangible assets is presented below:
Gross carrying amountsAccumulated amortization
(in millions)2024202320242023
Beginning balance, January 1$562 $547 $145 $115 
Amortization— — 28 28 
Translation adjustment(19)15 (4)2 
Ending balance, December 31$543 $562 $169 $145 
v3.25.0.1
PRODUCT WARRANTY (Tables)
 12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
Schedule of Product Warranty Liability
The following table summarizes the activity in the product warranty accrual accounts:
(in millions)20242023
Beginning balance, January 1$56 $60 
Provisions for current period sales 46 43 
Adjustments of prior estimates2 (2)
Payments(42)(45)
Other, primarily translation adjustment(1)— 
Ending balance, December 31$61 $56 
The product warranty liability is classified in the Consolidated Balance Sheets as follows:
December 31,
(in millions)20242023
Other current liabilities$36 $30 
Other non-current liabilities25 26 
Total product warranty liability$61 $56 
v3.25.0.1
NOTES PAYABLE AND DEBT (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments
The Company had short-term and long-term debt outstanding as follows:
December 31,
(in millions)20242023
Short-term debt
Short-term borrowings$— $75 
Long-term debt
5.000% Senior notes due 10/01/25 ($24 million par value)
$24 $25 
6.750% Senior notes due 4/15/2029 ($525 million par value)
518 — 
6.625% Senior notes due 10/15/2032 ($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 leases2 — 
Total long-term debt$988 $723 
Less: current portion25 14 
Long-term debt, net of current portion$963 $709 
Schedule of Annual Principal Payments
Annual principal payments required as of December 31, 2024 are as follows:
(in millions)
2025$25 
20261 
2027— 
2028— 
2029525 
After 2029450 
Total payments$1,001 
Less: debt issuance costs, net of unamortized premiums(13)
Total$988 
v3.25.0.1
OTHER CURRENT AND NON-CURRENT LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]  
Schedule of Additional Detail Related to Liabilities
Additional detail related to liabilities is presented in the table below:
December 31,
(in millions)20242023
Other current liabilities:
Payroll and employee related$106 $92 
Customer related98 109 
Product warranties (Note 11)36 30 
Income taxes payable35 39 
Accrued freight17 21 
Interest17 1 
Operating leases (Note 19)17 17 
Refundable customer deposits9 8 
Supplier related8 14 
Uncertain tax positions7 — 
Deferred engineering6 6 
Legal and professional fees6 6 
Employee termination benefits4 9 
Accrued utilities3 4 
Other non-income taxes3 8 
Deferred income3 6 
Other47 50 
Total other current liabilities$422 $420 
Other non-current liabilities:
Deferred income taxes (Note 5)$55 $56 
Operating leases (Note 19)39 49 
Product warranties (Note 11)25 26 
Deferred income11 7 
Uncertain tax positions8 15 
Other12 12 
Total other non-current liabilities$150 $165 
v3.25.0.1
FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The table below shows deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less for designated net investment hedges.
(in millions)Deferred gain (loss) in AOCI atGain (loss) expected to be reclassified to income in one year or less
Contract TypeDecember 31, 2024December 31, 2023
Foreign currency$(11)$(6)$— 
The gains and (losses) attributable to the financial instrument designated as a net investment hedge were recognized in other comprehensive income (loss) during the periods presented below.
(in millions)
Year Ended December 31,
Net investment hedges202420232022
Foreign currency$(5)$(2)$6 
Schedule of Derivatives Not Designated as Hedging Instruments
The Company utilizes foreign currency derivatives not designated as hedging instruments to mitigate the variability of the remeasurement of monetary assets and liabilities denominated in currencies other than the operating units' functional currency. These derivatives resulted in the following gains (losses) recorded in income:
(in millions)Year Ended December 31,
Contract TypeLocation202420232022
Foreign CurrencyCost of sales$— $4 $(1)
Foreign CurrencySelling, general and administrative expenses$(1)$(1)$— 
v3.25.0.1
RETIREMENT BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Schedule of Expense for Defined Contribution and Defined Benefit Pension Plans
The following table summarizes the expenses (income) for the Company’s defined contribution and defined benefit pension plans:
Year Ended December 31,
(in millions)202420232022
Defined contribution expense$16 $14 $23 
Defined benefit pension expense (income)4 5 (30)
Total$20 $19 $(7)
Schedule of Benefit Obligation and Plan Assets
The following provides a roll forward of the plans’ benefit obligations, plan assets, funded status and recognition in the Consolidated Balance Sheets:
Pension Benefits
(in millions)20242023
Change in projected benefit obligation:  
Projected benefit obligation, January 1$950 $867 
Service cost4 3 
Interest cost45 45 
Settlement and curtailment— (2)
Actuarial (gain) loss(103)9 
Currency translation(23)42 
Other— 1 
Spin-Off— 33 
Benefits paid(53)(48)
Projected benefit obligation, December 311
$820 $950 
Change in plan assets:  
Fair value of plan assets, January 1$817 $788 
Actual return on plan assets(48)19 
Employer contribution5 5 
Settlements— (2)
Currency translation(14)41 
Spin-Off— 14 
Benefits paid(53)(48)
Fair value of plan assets, December 31$707 $817 
Funded status$(113)$(133)
Amounts in the Consolidated Balance Sheets consist of:  
Current liabilities$(2)$(2)
Non-current liabilities(111)(131)
Net amount$(113)$(133)
Amounts in accumulated other comprehensive loss consist of:  
Net actuarial loss$29 $40 
Net prior service credit(10)(10)
Net amount$19 $30 
Total accumulated benefit obligation for all plans$803 $932 
_____________________________
1 The decrease in the projected benefit obligation was primarily due to actuarial gains during the period.
Schedule of Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets
The funded status of pension plans with accumulated benefit obligations in excess of plan assets is as follows:
December 31,
(in millions)20242023
Accumulated benefit obligation$(800)$(929)
Plan assets703 813 
Deficiency$(97)$(116)
Pension deficiency by country:  
United Kingdom(53)(71)
France(15)(17)
Mexico(17)(17)
Other(12)(11)
Total pension deficiency$(97)$(116)
Schedule of Funded Status of Pension Plans With Accumulated Benefit Obligations in Excess of Plan Assets
The funded status of pension plans with projected benefit obligations in excess of plan assets is as follows:
December 31,
(in millions)20242023
Projected benefit obligation$(820)$(947)
Plan assets707 813 
Deficiency$(113)$(134)
Pension deficiency by country:
United Kingdom(53)(71)
France(19)(21)
Mexico(26)(25)
Other(15)(17)
Total pension deficiency$(113)$(134)
Schedule of Asset Allocations
The weighted average asset allocations of the Company’s funded pension plans and target allocations by asset category are as follows:
December 31,Target Allocation
 20242023
Fixed income securities43 %42 %
30% - 50%
Real estate, cash and other35 %42 %
20% - 60%
Equity securities22 %16 %
10% - 30%
 100 %100 % 
Schedule of Defined Benefit Plan Assets
The following tables classify the Company’s defined benefit plan assets measured at fair value on a recurring basis:
  Basis of fair value measurements
(in millions)Balance at December 31, 2024Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV1
Fixed income securities$306 $6 $215 $— A$85 
Equity securities155 127 — 15 A, C13 
Cash22 22 — — A— 
Real estate and other224 20 — 65 A, C139 
 $707 $175 $215 $80  $237 
  Basis of fair value measurements
(in millions)Balance at December 31, 2023Quoted prices in active markets for identical items
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)		Valuation technique
Assets measured at NAV1
Fixed income securities$414 $103 $— $— A$311 
Equity securities147 128 — 11 A, C8 
Cash54 54 — — A— 
Real estate and other202 5 — 64 A, C133 
 $817 $290 $— $75  $452 
_____________________________
1 Certain assets that are measured at fair value using the Net Asset Value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These amounts represent investments in commingled and managed funds that have underlying assets in fixed income securities, equity securities, and other assets.
Schedule of Reconciliation of Level 3 Defined Benefit Plan Assets
The reconciliation of Level 3 defined benefit plans assets was as follows:
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in millions)Real estate and otherEquity
Balance, January 1, 2023$46 $— 
Purchases, sales and settlements19 10 
Unrealized gains on assets still held at the reporting date(4)— 
Translation adjustment3 1 
Balance, December 31, 2023$64 $11 
Purchases, sales and settlements3 5 
Unrealized losses on assets still held at the reporting date(1)(1)
Translation adjustment(1)— 
Balance, December 31, 2024$65 $15 
Schedule of Components of Net Periodic Benefit Cost
See the table below for a breakout of net periodic benefit (income) cost:
Year Ended December 31,
(in millions)202420232022
Service cost$4 $3 $2 
Interest cost45 45 25 
Expected return on plan assets(42)(43)(57)
Amortization of unrecognized gain(3)(2)— 
Settlements, curtailments and other— 2 — 
Net periodic cost (income)$4 $5 $(30)
Schedule of Defined Benefit Plan Weighted Average Assumptions Used in Calculating Benefit Obligations
The Company’s weighted average assumptions used to determine the benefit obligations for its defined benefit pension plans were as follows:
December 31,
(percent)20242023
Discount rate1
5.86 %4.98 %
Rate of compensation increase5.00 %5.49 %
________________
1 Includes 5.61% and 4.62% for the U.K. pension plans for December 31, 2024 and 2023, respectively.
The Company’s weighted average assumptions used to determine the net periodic benefit cost(income) for its defined benefit pension plans were as follows:
Year Ended December 31,
(percent)202420232022
Discount rate1
4.98 %5.19 %2.07 %
Effective interest rate on benefit obligation4.98 %5.24 %1.94 %
Expected long-term rate of return on assets2
5.29 %5.53 %4.22 %
Average rate of increase in compensation5.49 %5.03 %5.05 %
________________
1 Includes 4.62%, 4.93% and 1.81% for the U.K. pension plans for December 31, 2024, 2023 and 2022, respectively.
2 Includes 5.25%, 5.50% and 4.18% for the U.K. pension plans for December 31, 2024, 2023 and 2022, respectively.
Schedule of Estimated Future Payments
The estimated future benefit payments for the pension benefits are as follows:
(in millions) 
YearPension Benefits
2025$50 
202650 
202753 
202855 
202958 
2030-2034307 
v3.25.0.1
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Restricted Stock Compensation Expense
Restricted stock compensation expense recorded in the Consolidated Statements of Operations is as follows:
 Year Ended December 31,
(in millions, except per share data)202420232022
Restricted stock compensation expense$12 $10 $9 
Restricted stock compensation expense, net of tax$11 $8 $7 
Schedule of Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity
A summary of the status of the Company’s nonvested restricted stock for employees and non-employee directors is as follows:
 Shares subject to restriction
(thousands)		Weighted average grant date fair value
Nonvested at January 1, 2022290 $41.53 
Granted143 $44.42 
Vested(63)$38.75 
    Forfeited(40)$44.89 
Nonvested at December 31, 2022330 $42.91 
Granted505 $33.99 
Vested(222)$34.03 
Forfeited(49)$45.61 
Converted1
513 
Nonvested at December 31, 20231
1,077 $20.01 
Granted402 $33.22 
Vested(389)$41.38 
Forfeited(32)$39.97 
Nonvested at December 31, 20241,058 $16.56 
________________
1 Reflects the replacement of outstanding equity awards to executives under the Former Parent Plan with PHINIA equity awards in conjunction with the Spin-Off. Outstanding equity awards to executives were multiplied by the conversion rate of 1.74.
Schedule of Share-Based Payment Arrangement, Performance Shares, Activity
The amounts expensed and common stock issued for performance stock units for the years ended December 31, 2024, 2023 and 2022 were as follows:
Year Ended December 31,
202420232022
Expense (in millions)Number of shares issued (in thousands)Expense (in millions)Number of shares issued (in thousands)Expense (in millions)Number of shares issued (in thousands)
Total Stockholder Return$3 — $— 8 $1 — 
Other performance-based1
— — 1 23 1 21 
Total$3 — $1 31 $2 21 
__________________
1 Other performance-based awards were performance stock units granted by the Former Parent that were scheduled to vest at the end of three-year periods. At Spin-Off, these performance stock units were replaced with PHINIA restricted stock unit awards, based on their target performance, as agreed upon by the BorgWarner Compensation Committee considering performance through the date of the Spin-Off, and then multiplied by the conversion rate of 1.74, as discussed above.
A summary of the status of the Company’s nonvested performance stock units for the years ended December 31, 2024, 2023 and 2022 were as follows:
Total Stockholder ReturnOther Performance-Based
Number of shares (in thousands)Weighted average grant date fair valueNumber of shares (in thousands)Weighted average grant date fair value
Nonvested at January 1, 202231 $51.65 81 $41.43 
Granted7 $66.89 21 $44.62 
Vested— $— (21)$41.92 
Forfeited(15)$54.59 (13)$45.30 
Nonvested at December 31, 202223 $54.42 68 $41.53 
Granted7 $79.71 22 $48.19 
Vested(10)$28.55 (20)$34.69 
Converted1
(20)(70)
Nonvested at December 31, 20231
— $— — $— 
Granted195 $44.56 — $— 
Forfeited(4)$44.56 — $— 
Nonvested at December 31, 2024191 $44.56 — $— 
________________
1 Reflects the conversion of outstanding equity awards to executives under the Former Parent Plan into PHINIA equity awards in conjunction with the Spin-Off.
v3.25.0.1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
The following table summarizes the activity within accumulated other comprehensive loss:
(in millions)Foreign currency translation adjustmentsDefined benefit pension plansHedge instrumentsTotal
Beginning Balance, January 1, 2022$5 $59 $(2)$62 
Comprehensive (loss) income before reclassifications(90)(85)5 (170)
Income taxes associated with comprehensive income before reclassifications— 20 — 20 
Ending Balance December 31, 2022$(85)$(6)$3 $(88)
Comprehensive loss before reclassifications(13)(40)— (53)
Income taxes associated with comprehensive income before reclassifications— 11 — 11 
Reclassification from accumulated other comprehensive (loss) income— 2 (3)(1)
Ending Balance December 31, 2023$(98)$(33)$— $(131)
Comprehensive (loss) income before reclassifications(95)7 — (88)
Income taxes associated with comprehensive loss before reclassifications— (2)— (2)
Reclassification from accumulated other comprehensive income— 4 — 4 
Ending Balance December 31, 2024$(193)$(24)$— $(217)
v3.25.0.1
LEASES AND COMMITMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Operating Lease Assets and Lease Liabilities
The following table presents the lease assets and lease liabilities as of December 31, 2024 and 2023:
December 31,
(in millions)20242023
AssetsBalance Sheet Location
Operating leasesOther non-current assets$54 $63 
Finance leasesProperty, plant and equipment, net2 — 
Total lease assets$56 $63 
Liabilities
Current
Operating leases Other current liabilities$17 $17 
Finance leasesShort-term borrowings and current portion of long-term debt1 — 
Non-current
Operating leasesOther non-current liabilities39 49 
Finance leasesLong-term debt1 — 
Total lease liabilities$58 $66 
Schedule of Lease, Cost
The following table presents lease obligations arising from obtaining leased assets for the years ended December 31, 2024, 2023, and 2022:
December 31,
(in millions)202420232022
Operating leases$2 $12 $13 
Finance leases2 — 2 
Total lease obligations$4 $12 $15 
The following table presents the terms and discount rates:
December 31,
20242023
Weighted average remaining lease term (years)
Operating leases44
Finance leases54
Weighted average discount rate
Operating leases3.6 %3.0 %
Finance leases5.7 %3.6 %
Schedule of Maturity of Operating Lease Liabilities
The following table presents the maturity of lease liabilities as of December 31, 2024:
(in millions)Operating leasesFinance leases
2025$18 $1 
202617 1 
202715 — 
20285 — 
20292 — 
After 20293 — 
Total (undiscounted) lease payments$60 $2 
Less: Imputed interest4 — 
Present value of lease liabilities$56 $2 
Schedule of Maturity of Finance Lease Liabilities
The following table presents the maturity of lease liabilities as of December 31, 2024:
(in millions)Operating leasesFinance leases
2025$18 $1 
202617 1 
202715 — 
20285 — 
20292 — 
After 20293 — 
Total (undiscounted) lease payments$60 $2 
Less: Imputed interest4 — 
Present value of lease liabilities$56 $2 
v3.25.0.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share Reconciliation
The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock:
Year Ended December 31,
(in millions except share and per share amounts)202420232022
Basic earnings per share:   
Net earnings attributable to PHINIA Inc.$79 $102 $262 
Weighted average shares of common stock outstanding44.046.9 47.0 
Basic earnings per share of common stock$1.80 $2.17 $5.57 
Diluted earnings per share:  
Net earnings attributable to PHINIA Inc.$79 $102 $262 
Weighted average shares of common stock outstanding44.046.9 47.0 
Effect of stock-based compensation0.80.1 — 
Weighted average shares of common stock outstanding including dilutive shares 44.847.0 47.0 
Diluted earnings per share of common stock$1.76 $2.17 $5.57 
v3.25.0.1
RELATED PARTY (Tables)
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Schedule of Related Party
Net transfers from (to) Former Parent are included within Former Parent investment in the Consolidated Statements of Changes in Equity. The components of the transfers from (to) Former Parent are as follows:
Year Ended December 31,
(in millions)20232022
General financing activities$(63)$(175)
Cash pooling and other equity settled balances with Former Parent(64)(110)
Related-party notes converted to equity260 — 
Corporate allocations89 118 
Research and development income from Former Parent(2)(11)
Total net transfers from Former Parent$220 $(178)
Exclude non-cash items:
Stock-based compensation$(4)$(11)
Other non-cash activities with Former Parent, net(16)(33)
Related-party notes converted to equity(260)— 
Cash pooling and intercompany financing activities with Former Parent, net55 18 
Total net transfers to Former Parent per Consolidated Statements of Cash Flow$(5)$(204)
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Reconciliation of Revenue from Segments to Consolidated
The following tables show segment revenues and significant expenses, Segment AOI, and segment information for the Company’s reportable segments:
2024 Segment Revenues and Significant Expenses
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net Sales from external customers$2,020 $1,383 $— $3,403 
Inter-segment eliminations$244 $10 $(254)$— 
Net Sales$2,264 $1,393 $(254)$3,403 
Less:
Cost of sales1,885 1,015 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
65 142 
Net R&D costs102 10 
Other segment items2
(6)6 
Segment AOI$218 $220 

2023 Segment Revenues and Significant Expenses
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net Sales from external customers$2,177 $1,323 $— $3,500 
Inter-segment eliminations$230 $6 $(236)$— 
Net Sales$2,407 $1,329 $(236)$3,500 
Less:
Cost of sales2,030 977 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
78 118 
Net R&D costs98 10 
Other segment items2
(14)28 
Segment AOI$215 $196 
2022 Segment Revenues and Significant Expenses
Fuel SystemsAftermarketInter-segment EliminationsConsolidated
(in millions)
Net Sales from external customers$2,072 $1,276 $— $3,348 
Inter-segment eliminations$221 $8 $(229)$— 
Net Sales$2,293 $1,284 $(229)$3,348 
Less:
Cost of sales1,881 972 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
85 116 
Net R&D costs92 12 
Other segment items2
(17)(7)
Segment AOI$252 $191 
____________
1 Excludes intangible amortization.

2 Other segment items include inter-segment fees and other income.
2024 Segment information
Year-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)
Fuel Systems$1,902 $133 $83 
Aftermarket1,332 25 19 
Total3,234 158 102 
Corporate2
534 2 3 
Consolidated$3,768 $160 $105 
2023 Segment information
Year-end assetsDepreciation/ amortization
Long-lived asset expenditures1
(in millions)
Fuel Systems$2,207 $141 $136 
Aftermarket1,364 28 13 
Total3,571 169 149 
Corporate2
470 1 1 
Consolidated$4,041 $170 $150 
2022 Segment information
Year-end assets Depreciation/ amortization
Long-lived asset expenditures1
(in millions)
Fuel Systems$2,314 $142 $91 
Aftermarket1,348 27 16 
Total3,662 169 107 
Corporate2
412 1 — 
Consolidated$4,074 $170 $107 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
Schedule of Segment Reporting Information, by Segment Segment AOI
Year Ended December 31,
(in millions)202420232022
Fuel Systems$218 $215 $252 
Aftermarket220 196 191 
Segment AOI438 411 443 
Corporate, including stock-based compensation92 47 48 
Intangible asset amortization expense28 28 28 
Separation and transaction costs31 80 31 
(Gains) losses for other one-time events(7)3 2 
Restructuring expense14 12 11 
Asset impairments21 — 5 
Equity in affiliates’ earnings, net of tax(11)(10)(11)
Interest expense99 56 20 
Interest income(16)(13)(6)
Other postretirement expense (income)— 2 (32)
Earnings before income taxes$187 $206 $347 
Schedule of Revenue from External Customers and Long-lived Assets, by Geographical Areas
 Net salesProperty, plant and equipment, net
(in millions)202420232022202420232022
United States$1,267 $1,303 $1,187 $147 $138 $154 
Europe:
United Kingdom701 712 650 170 175 169 
Romania246 238 219 143 139 136 
Poland171 180 156 7 55 51 
Other Europe276 295 280 103 104 103 
Total Europe1,394 1,425 1,305 423 473 459 
China467 503 606 176 203 224 
Brazil178 175 167 29 35 28 
Other foreign97 94 83 68 72 59 
Total$3,403 $3,500 $3,348 $843 $921 $924 
Schedule of Sales by Product Line
The following table show sales by product line as a percent of total sales for the years ended December 31, 2024, 2023 and 2022. No other product line accounted for more than 10% of consolidated net sales in any of the years presented.
Year Ended December 31,
202420232022
Independent aftermarket and original equipment service solutions34 %31 %32 %
Light passenger vehicle applications27 %26 %23 %
Commercial vehicle and industrial applications20 %20 %22 %
Light commercial vehicle applications18 %22 %22 %
v3.25.0.1
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures
Year Ended December 31,
(in millions)202420232022
OPERATING
Net earnings$79 $102 $262 
 Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and tooling amortization132 143 142 
Intangible asset amortization28 28 28 
Restructuring expense, net of cash paid8 — 5 
Loss on extinguishment of debt22 — — 
Stock-based compensation expense14 10 11 
Asset impairments21 — 5 
Deferred income tax provision11 32 25 
Other non-cash adjustments(8)(7)3 
Changes in assets and liabilities, excluding foreign currency translation adjustments:
Receivables149 79 (103)
Inventories23 (4)(60)
Prepayments and other current assets(33)(5)12 
Accounts payable and other current liabilities(114)(95)16 
Prepaid taxes and income taxes payable(9)— 31 
Other assets and liabilities(10)(26)(69)
Retirement plan contributions(5)(7)(5)
Net cash provided by operating activities$308 $250 $303 
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Interest, net$34 $26 $13 
Income taxes, net of refunds$94 $88 $51 
Non-cash investing transactions:
Period end accounts payable related to property, plant and equipment purchases$51 $48 $67 
v3.25.0.1
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
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
day
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Selling, general and administrative expenses $ 442 $ 413 $ 407
Number of equity method investments | day 1    
Representing directors percentage 36.00%    
Investment in equity securities $ 51 48  
Delphi-TVS Diesel Systems Ltd      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Noncontrolling interest 20.00%    
Delphi-TVS Diesel Systems Ltd      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Ownership interest equity interest 52.50%    
Selling, general and administrative expenses      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Government grant related credits $ 28 21  
Cost of sales      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Government grant related credits 2 1  
Other Current Liabilities      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Government grant related liabilities   1  
Other Noncurrent Liabilities      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Government grant related liabilities $ 7 6  
Minimum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Standard product warranty term (in years) 1 year    
Minimum | Long-term Supply Arrangements      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Property, plant and equipment, useful life (in years) 3 years    
Minimum | Building      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Property, plant and equipment, useful life (in years) 15 years    
Minimum | Machinery and Equipment      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Property, plant and equipment, useful life (in years) 3 years    
Maximum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Standard product warranty term (in years) 3 years    
Maximum | Long-term Supply Arrangements      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Property, plant and equipment, useful life (in years) 5 years    
Maximum | Building      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Property, plant and equipment, useful life (in years) 40 years    
Maximum | Machinery and Equipment      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Property, plant and equipment, useful life (in years) 12 years    
Corporate Expense Allocation | Related Party      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Selling, general and administrative expenses   $ 89 $ 118
v3.25.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Revenue from External Customer [Line Items]    
Liability, current $ 3 $ 6
Liability, noncurrent $ 11 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 Noncurrent Liabilities    
Revenue from External Customer [Line Items]    
Liability, noncurrent $ 4 $ 1
v3.25.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from External Customer [Line Items]      
Net sales $ 3,403 $ 3,500 $ 3,348
Fuel Systems      
Revenue from External Customer [Line Items]      
Net sales 2,020 2,177 2,072
Aftermarket      
Revenue from External Customer [Line Items]      
Net sales 1,383 1,323 1,276
Americas      
Revenue from External Customer [Line Items]      
Net sales 1,458 1,488 1,370
Americas | Fuel Systems      
Revenue from External Customer [Line Items]      
Net sales 690 712 559
Americas | Aftermarket      
Revenue from External Customer [Line Items]      
Net sales 768 776 811
Europe      
Revenue from External Customer [Line Items]      
Net sales 1,394 1,425 1,305
Europe | Fuel Systems      
Revenue from External Customer [Line Items]      
Net sales 862 953 904
Europe | Aftermarket      
Revenue from External Customer [Line Items]      
Net sales 532 472 401
Asia      
Revenue from External Customer [Line Items]      
Net sales 551 587 673
Asia | Fuel Systems      
Revenue from External Customer [Line Items]      
Net sales 468 512 609
Asia | Aftermarket      
Revenue from External Customer [Line Items]      
Net sales $ 83 $ 75 $ 64
v3.25.0.1
RESEARCH AND DEVELOPMENT COSTS - Schedule of Research and Development Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Research and Development [Abstract]      
Gross R&D costs $ 209 $ 188 $ 200
Customer reimbursements (97) (80) (96)
Net R&D costs $ 112 $ 108 $ 104
v3.25.0.1
RESEARCH AND DEVELOPMENT COSTS - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Research and Development [Abstract]      
Net R&D costs as a percentage of net sales (in percent) 3.30% 3.10% 3.10%
v3.25.0.1
OTHER OPERATING EXPENSE (INCOME), NET - Schedule of Other Operating Expense (Income), Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]      
Separation and transaction costs $ 31 $ 80 $ 31
Asset impairments 21 0 5
Restructuring 14 12 11
(Gains) losses for other one-time events (7) 3 2
R&D income from Former Parent (97) (80) (96)
Other operating income, net (4) (6) (11)
Other operating expense (income), net 55 70 (4)
Affiliated Entity      
Schedule of Equity Method Investments [Line Items]      
Royalty income from Former Parent 0 (17) (31)
R&D income from Former Parent $ 0 $ (2) $ (11)
v3.25.0.1
OTHER OPERATING EXPENSE (INCOME), NET - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]      
Separation and transaction costs $ 31 $ 80 $ 31
Asset impairments 21 0 5
Restructuring 14 12 11
(Gains) losses for other one-time events (7) 3 2
R&D income from Former Parent (97) (80) (96)
Affiliated Entity      
Schedule of Equity Method Investments [Line Items]      
Royalty income from Former Parent 0 (17) (31)
R&D income from Former Parent $ 0 $ (2) $ (11)
v3.25.0.1
INCOME TAXES - Schedule of Income Tax Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings before income taxes:      
U.S. $ 5 $ (18) $ 90
Non-U.S. 182 224 257
Earnings before income taxes 187 206 347
Current:      
Federal 13 22 28
State 0 2 1
Foreign 83 48 31
Total current expense 96 72 60
Deferred:      
Federal (9) (14) (12)
State (1) (2) (1)
Foreign 22 48 38
Total deferred expense 12 32 25
Provision for income taxes, as reported $ 108 $ 104 $ 85
v3.25.0.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Loss Carryforwards [Line Items]        
Effective income tax rate reconciliation (in percent) 58.00% 50.00% 24.00%  
Income tax benefit $ 108 $ 104 $ 85  
Tax adjustment period 3 years      
Tax adjustment   7    
Foreign rate differentials, amount $ (5) 2 (3)  
Payment for penalties and interest accrued 6 4    
Income tax penalties and interest expense 2 1    
Unrecognized tax benefits that would impact effective tax rate 15      
Unrecognized tax benefits 10 11 35 $ 64
Unremitted foreign earnings 51 50    
Deferred tax liability not reported, undistributed earnings of foreign subsidiaries 392      
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations 1 0 14  
Other Current Liabilities        
Operating Loss Carryforwards [Line Items]        
Unrecognized tax benefits 9      
Non-U.S. Tax Jurisdiction        
Operating Loss Carryforwards [Line Items]        
Foreign rate differentials, amount 21   21  
Operating loss carryforwards 1,400      
Operating loss carryforwards, valuation allowance 1,400      
Non-U.S. Tax Jurisdiction | China        
Operating Loss Carryforwards [Line Items]        
Income tax benefit $ 5 $ (6) $ (8)  
Non-U.S. Tax Jurisdiction | United Kingdom        
Operating Loss Carryforwards [Line Items]        
Effective income tax rate reconciliation (in percent)   25.00% 19.00%  
v3.25.0.1
INCOME TAXES - Schedule of Income Tax Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Income taxes at U.S. statutory rate of 21% $ 39 $ 43 $ 73
Valuation allowance adjustments, net 82 63 37
Net tax on remittance of foreign earnings 13 29 12
Non-deductible transaction costs 0 10 0
Changes in accounting methods and filing positions (9) (2) 2
U.S. tax on foreign earnings 7 12 0
Foreign rate differentials 5 (2) 3
Impact of tax law and rate changes 0 (1)  
State taxes, net of federal benefit 0 (1) (1)
Tax credits (3) (1) (1)
Tax holidays (5) (6) (8)
Enhanced research and development deductions (9) (8) (9)
Reserve adjustments, settlements and claims 3 (7) (7)
Non-taxable income (17) (30) (17)
Foreign currency remeasurement (7) 1 0
Non-deductible fines 5 0 0
Other, net 4 4 1
Provision for income taxes, as reported $ 108 $ 104 $ 85
v3.25.0.1
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of the total gross unrecognized tax benefits      
Beginning balance $ 11 $ 35 $ 64
Additions based on tax positions related to current year 0 1 2
Additions for tax positions of prior years 2 1 0
Reductions for lapse in statute of limitations (1) 0 (14)
Reductions for closure of tax audits and settlements (2) (2) (12)
Reductions for tax positions of prior years 0 (11) (1)
(Distributions) Acquisitions 0 (14) 0
Translation adjustment 0 1 (4)
Ending balance $ 10 $ 11 $ 35
v3.25.0.1
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:        
Net operating loss and capital loss carryforwards $ 357 $ 252    
Interest limitation carryforwards 188 188    
Accrued expenses 21 24    
Pension 29 35    
Employee compensation 15 12    
Warranty 9 11    
Other 45 46    
Total deferred tax assets 664 568    
Valuation allowances (552) (413) $ (478) $ (466)
Net deferred tax asset 112 155    
Deferred tax liabilities:        
Goodwill and intangible assets (34) (51)    
Unremitted foreign earnings (51) (50)    
Unrealized gain on equity securities 0 (4)    
Fixed assets (28) (15)    
Other (10) (29)    
Total deferred tax liabilities (123) (149)    
Net deferred taxes $ (11)      
Net deferred taxes   $ 6    
v3.25.0.1
INCOME TAXES - Schedule of Valuation Allowance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Valuation Allowance [Roll Forward]      
Beginning balance $ 413 $ 478 $ 466
Establishment of new allowances 22 3 0
Net change to existing allowances 60 60 37
Opening balance sheet equity/other 0 (110) 0
Foreign currency translation (29) (18) (25)
Changes in accounting methods and filing positions 86 0 0
Ending balance $ 552 $ 413 $ 478
v3.25.0.1
RECEIVABLES, NET - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Receivables [Abstract]        
Customers $ 574 $ 658    
Indirect taxes 119 167    
Due from Former Parent 80 159    
Other 53 44    
Gross receivables 826 1,028    
Allowance for credit losses (9) (11) $ (7) $ (4)
Total receivables, net $ 817 $ 1,017    
v3.25.0.1
RECEIVABLES, NET - Schedule of Accounts Receivable, Allowance for Credit Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ (11) $ (7) $ (4)
Provision (1) (8) (4)
Write-offs 3 4 0
Translation adjustment and other 0 0 1
Ending balance $ (9) $ (11) $ (7)
v3.25.0.1
RECEIVABLES, NET - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Receivables [Abstract]      
Sale of receivables $ 122 $ 152 $ 142
Expenses related to sale of receivables $ 6 $ 9 $ 5
v3.25.0.1
INVENTORIES (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw material and supplies $ 234 $ 286
Work-in-progress 40 46
Finished goods 170 155
Inventories $ 444 $ 487
v3.25.0.1
OTHER CURRENT AND NON-CURRENT ASSETS (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Prepayments and other current assets:    
Prepaid taxes $ 32 $ 26
Prepaid engineering 19 3
Prepaid customer tooling 14 3
Prepaid software 10 5
Customer return assets 8 8
Prepaid insurance 4 3
Other 9 10
Total prepayments and other current assets 96 58
Investments and long-term receivables:    
Long-term receivables 52 46
Investment in equity affiliates 51 48
Due from Former Parent 3 17
Investment in equity securities 5 4
Total investments and long-term receivables 111 115
Other non-current assets:    
Operating leases (Note 19) 54 63
Deferred income taxes (Note 5) 43 61
Customer incentive payments 9 10
Other 22 28
Total other non-current assets $ 128 $ 162
v3.25.0.1
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Finance lease assets $ 2 $ 0
Total property, plant and equipment, gross 1,357 1,360
Less: accumulated depreciation 545 481
Property, plant and equipment, net, excluding tooling 812 879
Tooling, net of amortization 31 42
Property, plant and equipment, net 843 921
Land, land use rights and buildings    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 236 250
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 1,035 1,031
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross $ 84 $ 79
v3.25.0.1
GOODWILL AND OTHER INTANGIBLES - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]      
Net goodwill balance $ 471 $ 499  
Goodwill [Roll Forward]      
Net goodwill ending balance 471 499  
Fuel Systems      
Goodwill [Line Items]      
Gross goodwill balance 61 58  
Accumulated impairment losses   0 $ 0
Net goodwill balance 60 61 58
Goodwill [Roll Forward]      
Translation adjustment and other (1) 3  
Net goodwill ending balance 60 61  
Aftermarket      
Goodwill [Line Items]      
Gross goodwill balance 551 545  
Accumulated impairment losses   (113) (113)
Net goodwill balance 411 438 $ 432
Goodwill [Roll Forward]      
Translation adjustment and other (27) 6  
Net goodwill ending balance $ 411 $ 438  
v3.25.0.1
GOODWILL AND OTHER INTANGIBLES - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Total amortized intangible assets, gross carrying amount $ 403 $ 417  
Total other intangible assets, accumulated amortization 169 145 $ 115
Total amortized intangible assets, net carrying amount 234 272  
Unamortized trade names 140 145  
Total other intangible assets, gross carrying amount 543 562 $ 547
Net carrying amount 374 417  
Patented and unpatented technology      
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Total amortized intangible assets, gross carrying amount 144 149  
Total other intangible assets, accumulated amortization 51 41  
Total amortized intangible assets, net carrying amount 93 108  
Customer relationships      
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Total amortized intangible assets, gross carrying amount 259 268  
Total other intangible assets, accumulated amortization 118 104  
Total amortized intangible assets, net carrying amount $ 141 $ 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    
v3.25.0.1
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Intangible asset amortization $ 28 $ 28 $ 28
Future amortization expense 2025 27    
Future amortization expense 2026 27    
Future amortization expense 2027 27    
Future amortization expense 2028 27    
Future amortization expense 2029 27    
Future amortization expense - thereafter $ 99    
v3.25.0.1
GOODWILL AND OTHER INTANGIBLES - Schedule of Rollforward of Intangible assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Gross carrying amounts      
Beginning balance $ 562 $ 547  
Amortization 0 0  
Translation adjustment (19) 15  
Ending balance 543 562 $ 547
Accumulated amortization      
Beginning balance 145 115  
Amortization 28 28 28
Translation adjustment (4) 2  
Ending balance $ 169 $ 145 $ 115
v3.25.0.1
PRODUCT WARRANTY - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
Minimum  
Guarantor Obligations [Line Items]  
Standard product warranty term (in years) 1 year
Maximum  
Guarantor Obligations [Line Items]  
Standard product warranty term (in years) 3 years
v3.25.0.1
PRODUCT WARRANTY - Schedule of Product Warranty Liability (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]    
Beginning balance $ 56 $ 60
Provisions for current period sales 46 43
Adjustments of prior estimates 2 (2)
Payments (42) (45)
Other, primarily translation adjustment (1)  
Ending balance 61 56
Other current liabilities 36 30
Other non-current liabilities 25 26
Total product warranty liability $ 61 $ 56
v3.25.0.1
NOTES PAYABLE AND DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($)
Dec. 31, 2024
Sep. 17, 2024
Apr. 04, 2024
Dec. 31, 2023
Jul. 03, 2023
Short-term debt          
Short-term borrowings       $ 75,000,000  
Long-term debt          
Long-term debt $ 988,000,000     723,000,000  
Finance leases 2,000,000     0  
Less: current portion 25,000,000     14,000,000  
Long-term debt, net of current portion $ 963,000,000     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) 5.00%        
Debt instrument face value $ 24,000,000        
Long-term debt $ 24,000,000     25,000,000  
6.750% Senior notes due 4/15/2029 ($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    
Long-term debt $ 518,000,000     0  
6.625% Senior notes due 10/15/2032 ($450 million par value) | Senior Notes          
Long-term debt          
Debt instrument stated interest rate (in percent) 6.625% 6.625%      
Debt instrument face value $ 450,000,000        
Long-term debt 444,000,000     0  
Term Loan A Facility due 07/03/28 ($298 million par value) | Line of Credit          
Long-term debt          
Debt instrument face value 298,000,000       $ 300,000,000
Long-term debt 0     295,000,000  
Term Loan B Facility due 07/03/28 ($424 million par value) | Line of Credit          
Long-term debt          
Debt instrument face value 424,000,000       $ 425,000,000
Long-term debt $ 0     $ 403,000,000  
v3.25.0.1
NOTES PAYABLE AND DEBT - Narrative (Details)
 3 Months Ended 12 Months Ended
Sep. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2020
USD ($)
Sep. 17, 2024
USD ($)
Apr. 04, 2024
USD ($)
Apr. 03, 2024
Jul. 03, 2023
USD ($)
Line of Credit Facility [Line Items]                    
Short-term, weighted average interest rate on borrowings outstanding (in percent)       7.90%            
Debt, weighted average interest rate (in percent)     6.70% 8.80%            
Leverage ratio, maximum               3.25 3.00  
Leverage ratio, step up for qualifying acquisition, maximum               3.75    
Short-term borrowings       $ 75,000,000            
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]     Short-term borrowings and current portion of long-term debt Short-term borrowings and current portion of long-term debt            
Loss on debt extinguishment     $ 22,000,000 $ 0 $ 0          
Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Short-term borrowings     0              
Line of credit facility, remaining borrowing capacity     499,000,000              
Credit Agreement                    
Line of Credit Facility [Line Items]                    
Revolving credit facility                   $ 1,225,000,000
Interest coverage ratio, minimum                   3.00
Credit Agreement | Line of Credit | Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Revolving credit facility                   $ 500,000,000
Term Loan A Facility due 07/03/28 ($298 million par value) | Line of Credit                    
Line of Credit Facility [Line Items]                    
Debt instrument face value     298,000,000             300,000,000
Term Loan B Facility due 07/03/28 ($424 million par value) | Line of Credit                    
Line of Credit Facility [Line Items]                    
Debt instrument face value     $ 424,000,000             $ 425,000,000
Senior Secured Notes April Due 2029                    
Line of Credit Facility [Line Items]                    
Interest, basis spread on variable rate (percent)     6.75%              
Senior Secured Notes April Due 2029 | Line of Credit                    
Line of Credit Facility [Line Items]                    
Loss on debt extinguishment   $ 20,000,000                
Senior Secured Notes April Due 2029 | Senior Notes                    
Line of Credit Facility [Line Items]                    
Debt instrument face value     $ 525,000,000         $ 525,000,000    
Debt instrument stated interest rate (in percent)     6.75%         6.75%    
Accrued interest (in percent)               100.00%    
Senior Secured Notes April Due 2029 | 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 debt extinguishment $ 2,000,000                  
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)             100.00%      
Senior Unsecured Notes Due 2032 | Senior Notes | Maximum                    
Line of Credit Facility [Line Items]                    
Debt instrument face value             $ 25,000,000      
Senior Notes Due October 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%       6.625%      
Senior Notes Due 2025                    
Line of Credit Facility [Line Items]                    
Interest, basis spread on variable rate (percent)           5.00%        
Senior Notes Due 2025 | Senior Notes                    
Line of Credit Facility [Line Items]                    
Percentage of exchanged and cancelled notes           97.00%        
Long-term debt, gross           $ 800,000,000        
Liabilities assumed in connection with spin-off transaction           $ 24,000,000        
Term Loan A & Term Loan B Facility | Senior Notes | Estimate of Fair Value Measurement                    
Line of Credit Facility [Line Items]                    
Estimated fair value of senior unsecured notes       758,000,000            
Fair value of debt, higher (lower) than carrying value       $ (35,000,000)            
5.000% Senior notes due 10/01/25 ($24 million par value) | Senior Notes                    
Line of Credit Facility [Line Items]                    
Debt instrument face value     $ 24,000,000              
Debt instrument stated interest rate (in percent)     5.00%              
5.000% Senior notes due 10/01/25 ($24 million par value) | Senior Notes | Estimate of Fair Value Measurement                    
Line of Credit Facility [Line Items]                    
Estimated fair value of senior unsecured notes     $ 1,007,000,000              
Fair value of debt, higher (lower) than carrying value     $ (21,000,000)              
v3.25.0.1
NOTES PAYABLE AND DEBT - Schedule of Annual Principal Payments (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]    
2025 $ 25  
2026 1  
2027 0  
2028 0  
2029 525  
After 2029 450  
Total payments 1,001  
Less: debt issuance costs, net of unamortized premiums (13)  
Long-term debt $ 988 $ 723
v3.25.0.1
OTHER CURRENT AND NON-CURRENT LIABILITIES (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Other current liabilities:    
Payroll and employee related $ 106 $ 92
Customer related 98 109
Income taxes payable 35 39
Product warranties (Note 11) 36 30
Accrued freight 17 21
Interest 17 1
Operating leases (Note 19) 17 17
Refundable customer deposits 9 8
Uncertain tax positions 7 0
Supplier related 8 14
Deferred engineering 6 6
Legal and professional fees 6 6
Employee termination benefits 4 9
Accrued utilities 3 4
Other non-income taxes 3 8
Deferred income 3 6
Other 47 50
Total other current liabilities 422 420
Other non-current liabilities:    
Deferred income taxes (Note 5) 55 56
Operating leases (Note 19) 39 49
Product warranties (Note 11) 25 26
Deferred income 11 7
Uncertain tax positions 8 15
Other 12 12
Total other non-current liabilities $ 150 $ 165
v3.25.0.1
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Derivative [Line Items]      
Other comprehensive income [1] $ 0 $ 3 $ (5)
Gain (loss) recognized in other comprehensive income (loss)   $ (3) $ 5
United States of America, Dollars      
Derivative [Line Items]      
Derivative, notional amount $ 85    
[1] Net of income taxes.
v3.25.0.1
FINANCIAL INSTRUMENTS - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Foreign currency - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Gain (loss) expected to be reclassified to income in one year or less $ 0  
Deferred gain (loss) in AOCI at    
Derivatives, Fair Value [Line Items]    
Equity $ (11) $ (6)
v3.25.0.1
FINANCIAL INSTRUMENTS - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Foreign currency | Net Investment Hedging | Other comprehensive income (loss)      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains and (losses) on derivative instruments $ (5) $ (2) $ 6
v3.25.0.1
FINANCIAL INSTRUMENTS - Schedule of Derivatives Not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cost of sales      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives not designated as hedges $ 0 $ 4 $ (1)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of sales Cost of sales Cost of sales
Selling, general and administrative expenses      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives not designated as hedges $ (1) $ (1) $ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Expense for Defined Contribution and Defined Benefit Pension Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Defined contribution expense $ 16 $ 14 $ 23
Defined benefit pension expense (income) 4 5 (30)
Total $ 20 $ 19 $ (7)
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Benefit Obligation and Plan Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Change in projected benefit obligation:      
Service cost $ 4 $ 3 $ 2
Interest cost 45 45 25
Change in plan assets:      
Funded status (97) (116)  
Amounts in the Consolidated Balance Sheets consist of:      
Non-current liabilities (112) (132)  
Pension Plan      
Change in projected benefit obligation:      
Projected benefit obligation, Beginning balance 950 867  
Service cost 4 3  
Interest cost 45 45  
Settlement and curtailment   (2)  
Actuarial (gain) loss (103) 9  
Currency translation (23) 42  
Spin-Off 0 33  
Benefits paid (53) (48)  
Projected benefit obligation, Ending balance 820 950 867
Change in plan assets:      
Fair value of plan assets, Beginning balance 817 788  
Actual return on plan assets (48) 19  
Employer contribution 5 5  
Settlements 0 (2)  
Currency translation (14) 41  
Spin-Off 0 14  
Benefits paid (53) (48)  
Fair value of plan assets, Ending balance 707 817 $ 788
Funded status (113) (133)  
Amounts in the Consolidated Balance Sheets consist of:      
Current liabilities (2) (2)  
Non-current liabilities (111) (131)  
Net amount (113) (133)  
Amounts in accumulated other comprehensive loss consist of:      
Net actuarial loss 29 40  
Net prior service credit (10) (10)  
Net amount 19 30  
Total accumulated benefit obligation for all plans 803 932  
Pension Plan | Change In Projected Benefit Obligation      
Change in projected benefit obligation:      
Other $ 0 $ 1  
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Funded Status of Plans with ABO in Excess of Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Accumulated benefit obligation    
Accumulated benefit obligation $ (800) $ (929)
Plan assets 703 813
Total pension deficiency (97) (116)
Projected benefit obligation    
Projected benefit obligation (820) (947)
Plan assets 707 813
Total pension deficiency (113) (134)
United Kingdom    
Accumulated benefit obligation    
Total pension deficiency (53) (71)
Projected benefit obligation    
Total pension deficiency (53) (71)
France    
Accumulated benefit obligation    
Total pension deficiency (15) (17)
Projected benefit obligation    
Total pension deficiency (19) (21)
Mexico    
Accumulated benefit obligation    
Total pension deficiency (17) (17)
Projected benefit obligation    
Total pension deficiency (26) (25)
Other foreign    
Accumulated benefit obligation    
Total pension deficiency (12) (11)
Projected benefit obligation    
Total pension deficiency $ (15) $ (17)
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Asset Allocations (Details) - Pension Plan
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Actual allocation, percentage 100.00% 100.00%
Fixed income securities    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Actual allocation, percentage 43.00% 42.00%
Fixed income securities | Minimum    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Plan assets, target allocation, percentage 30.00%  
Fixed income securities | Maximum    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Plan assets, target allocation, percentage 50.00%  
Real estate and other    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Actual allocation, percentage 35.00% 42.00%
Real estate and other | Minimum    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Plan assets, target allocation, percentage 20.00%  
Real estate and other | Maximum    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Plan assets, target allocation, percentage 60.00%  
Equity securities    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Actual allocation, percentage 22.00% 16.00%
Equity securities | Minimum    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Plan assets, target allocation, percentage 10.00%  
Equity securities | Maximum    
Defined Benefit Plan, Plan Assets, Allocations [Abstract]    
Plan assets, target allocation, percentage 30.00%  
v3.25.0.1
RETIREMENT BENEFIT PLANS - Narrative (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Payments for contractual obligation $ 2
Minimum  
Defined Benefit Plan Disclosure [Line Items]  
Future employer contributions 5
Maximum  
Defined Benefit Plan Disclosure [Line Items]  
Future employer contributions $ 9
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Defined Benefit Plan Assets (Details) - Fair Value, Recurring - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount $ 707 $ 817
Quoted prices in active markets for identical items (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 175 290
Significant other observable inputs (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 215 0
Significant unobservable inputs (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 80 75
Assets measured at NAV    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 237 452
Fixed income securities    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 306 414
Fixed income securities | Assets measured at NAV    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 85 311
Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 155 147
Equity securities | Assets measured at NAV    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 13 8
Cash    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 22 54
Real estate and other    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 224 202
Real estate and other | Assets measured at NAV    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 139 133
Valuation, Market Approach | Fixed income securities | Quoted prices in active markets for identical items (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 6 103
Valuation, Market Approach | Fixed income securities | Significant other observable inputs (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 215 0
Valuation, Market Approach | Fixed income securities | Significant unobservable inputs (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 0 0
Valuation, Market Approach | Equity securities | Quoted prices in active markets for identical items (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 127 128
Valuation, Market Approach | Equity securities | Significant other observable inputs (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 0 0
Valuation, Market Approach | Equity securities | Significant unobservable inputs (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 15 11
Valuation, Market Approach | Cash | Quoted prices in active markets for identical items (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 22 54
Valuation, Market Approach | Cash | Significant other observable inputs (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 0 0
Valuation, Market Approach | Cash | Significant unobservable inputs (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 0 0
Valuation, Market Approach | Real estate and other | Quoted prices in active markets for identical items (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 20 5
Valuation, Market Approach | Real estate and other | Significant other observable inputs (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount 0 0
Valuation, Market Approach | Real estate and other | Significant unobservable inputs (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan, plan assets, amount $ 65 $ 64
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Reconciliation of Level 3 Defined Benefit Plan Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Real estate and other    
Change in plan assets:    
Fair value of plan assets, Beginning balance $ 64 $ 46
Purchases, sales and settlements 3 19
Unrealized gains (losses) on assets still held at the reporting date (1) (4)
Translation adjustment (1) 3
Fair value of plan assets, Ending balance 65 64
Equity    
Change in plan assets:    
Fair value of plan assets, Beginning balance 11 0
Purchases, sales and settlements 5 10
Unrealized gains (losses) on assets still held at the reporting date (1) 0
Translation adjustment 0 1
Fair value of plan assets, Ending balance $ 15 $ 11
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Service cost $ 4 $ 3 $ 2
Interest cost 45 45 25
Expected return on plan assets (42) (43) (57)
Amortization of unrecognized gain (3) (2) 0
Settlements, curtailments and other 0 2 0
Net periodic cost (income) $ 4 $ 5 $ (30)
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Defined Benefit Plan Weighted Average Assumptions Used in Calculating Benefit Obligations (Details) - Pension Plan
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Discount rate 5.86% 4.98%  
Rate of compensation increase 5.00% 5.49%  
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]      
Discount rate 4.98% 5.19% 2.07%
Effective interest rate on benefit obligation 4.98% 5.24% 1.94%
Expected long-term rate of return on assets 5.29% 5.53% 4.22%
Average rate of increase in compensation 5.49% 5.03% 5.05%
United Kingdom      
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]      
Discount rate 5.61% 4.62%  
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]      
Discount rate 4.62% 4.93% 1.81%
Effective interest rate on benefit obligation 5.25% 5.50% 4.18%
v3.25.0.1
RETIREMENT BENEFIT PLANS - Schedule of Estimated Future Payments (Details) - Pension Plan
$ in Millions
Dec. 31, 2024
USD ($)
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]  
2025 $ 50
2026 50
2027 53
2028 55
2029 58
2030-2034 $ 307
v3.25.0.1
STOCK-BASED COMPENSATION - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
shares
Dec. 31, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for grant (in shares) 3,600,000    
Restricted Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 402,000 505,000 143,000
Restricted stock unrecognized compensation, amount | $ $ 16    
Restricted stock unrecognized compensation, period 1 year 8 months 12 days    
Restricted Stock | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Restriction periods (in years) 2 years    
Restricted Stock | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Restriction periods (in years) 3 years    
Restricted Stock | Share-Based Payment Arrangement, Employee      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 360,000    
Restricted Stock | Share-Based Payment Arrangement, Nonemployee      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 20,000    
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Spin-off conversion ratio | $ / shares 1.74    
Restricted stock unrecognized compensation, amount | $ $ 6    
Restricted stock unrecognized compensation, period 2 years    
Period for recognition (in years) 3 years    
Share-based payment award, percentage of outstanding stock maximum 200.00%    
2018 Stock Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized (in shares) 4,700,000    
Spin-off conversion ratio 1.74    
Increase in the intrinsic value (in dollars per share) | $ / shares $ 0    
v3.25.0.1
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Compensation Expense (Details) - Restricted Stock - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Restricted stock compensation expense $ 12 $ 10 $ 9
Restricted stock compensation expense, net of tax $ 11 $ 8 $ 7
v3.25.0.1
STOCK-BASED COMPENSATION - Schedule of Restricted Stock and Restricted Stock Unit, Activity (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock      
Shares subject to restriction (thousands)      
Nonvested beginning balance (in shares) 1,077 330 290
Granted (in shares) 402 505 143
Vested (in shares) (389) (222) (63)
Forfeited (in shares) (32) (49) (40)
Converted (in shares)   513  
Nonvested ending balance (in shares) 1,058 1,077 330
Weighted average grant date fair value      
Nonvested weighted average exercise price beginning balance (in dollars per share) $ 20.01 $ 42.91 $ 41.53
Granted the weighted average exercise price (in dollars per share) 33.22 33.99 44.42
Vested weighted average exercise price (in dollars per share) 41.38 34.03 38.75
Forfeited weighted average exercise price (in dollars per share) 39.97 45.61 44.89
Converted weighted average exercise price (in dollars per share)    
Nonvested weighted average exercise price beginning balance (in dollars per share) $ 16.56 $ 20.01 $ 42.91
Performance Shares      
Weighted average grant date fair value      
Spin-off conversion ratio 1.74    
v3.25.0.1
STOCK-BASED COMPENSATION - Schedule of Expense for Performance Based Stock Units (Details)
shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expense | $ $ 3 $ 1 $ 2
Number of shares issued (in shares) | shares 0 31 21
Total Stockholder Return      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expense | $ $ 3 $ 0 $ 1
Number of shares issued (in shares) | shares 0 8 0
Other Performance-Based      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expense | $ $ 0 $ 1 $ 1
Number of shares issued (in shares) | shares 0 23 21
Period for recognition (in years) 3 years    
Spin-off conversion ratio | $ / shares 1.74    
v3.25.0.1
STOCK-BASED COMPENSATION - Schedule of Performance Stock Plans (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Total Stockholder Return      
Number of shares (in thousands)      
Nonvested beginning balance (in shares) 0 23 31
Granted (in shares) 195 7 7
Vested (in shares)   (10) 0
Forfeited (in shares) (4)   (15)
Converted (in shares)   (20)  
Nonvested ending balance (in shares) 191 0 23
Weighted average grant date fair value      
Nonvested weighted average exercise price beginning balance (in dollars per share) $ 0 $ 54.42 $ 51.65
Granted the weighted average exercise price (in dollars per share) 44.56 79.71 66.89
Vested weighted average exercise price (in dollars per share)   28.55 0
Forfeited weighted average exercise price (in dollars per share) 44.56   54.59
Converted weighted average exercise price (in dollars per share)    
Nonvested weighted average exercise price beginning balance (in dollars per share) $ 44.56 $ 0 $ 54.42
Other Performance-Based      
Number of shares (in thousands)      
Nonvested beginning balance (in shares) 0 68 81
Granted (in shares) 0 22 21
Vested (in shares)   (20) (21)
Forfeited (in shares) 0   (13)
Converted (in shares)   (70)  
Nonvested ending balance (in shares) 0 0 68
Weighted average grant date fair value      
Nonvested weighted average exercise price beginning balance (in dollars per share) $ 0 $ 41.53 $ 41.43
Granted the weighted average exercise price (in dollars per share) 0 48.19 44.62
Vested weighted average exercise price (in dollars per share)   34.69 41.92
Forfeited weighted average exercise price (in dollars per share) 0   45.30
Converted weighted average exercise price (in dollars per share)    
Nonvested weighted average exercise price beginning balance (in dollars per share) $ 0 $ 0 $ 41.53
v3.25.0.1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Comprehensive (loss) income before reclassifications $ (88) $ (53) $ (170)
Income taxes associated with comprehensive income (loss) before reclassifications (2) 11 20
Reclassification from accumulated other comprehensive (loss) income 4 (1)  
Accumulated other comprehensive income (loss)      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (131) (88) 62
Ending balance (217) (131) (88)
Foreign currency translation adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (98) (85) 5
Comprehensive (loss) income before reclassifications (95) (13) (90)
Income taxes associated with comprehensive income (loss) before reclassifications 0 0 0
Reclassification from accumulated other comprehensive (loss) income 0 0  
Ending balance (193) (98) (85)
Defined benefit pension plans      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (33) (6) 59
Comprehensive (loss) income before reclassifications 7 (40) (85)
Income taxes associated with comprehensive income (loss) before reclassifications (2) 11 20
Reclassification from accumulated other comprehensive (loss) income 4 2  
Ending balance (24) (33) (6)
Hedge instruments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 0 3 (2)
Comprehensive (loss) income before reclassifications 0 0 5
Income taxes associated with comprehensive income (loss) before reclassifications 0 0 0
Reclassification from accumulated other comprehensive (loss) income 0 (3)  
Ending balance $ 0 $ 0 $ 3
v3.25.0.1
LEASES AND COMMITMENTS - Schedule of Operating Lease Assets and Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
ASSETS    
Operating leases $ 54 $ 63
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other Assets, Noncurrent Other Assets, Noncurrent
Finance leases $ 2 $ 0
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Property, plant and equipment, net Property, plant and equipment, net
Total lease assets $ 56 $ 63
Current    
Operating leases $ 17 $ 17
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other Liabilities, Current Other Liabilities, Current
Finance leases $ 1 $ 0
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Short-term borrowings and current portion of long-term debt Short-term borrowings and current portion of long-term debt
Non-current    
Operating leases $ 39 $ 49
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other non-current liabilities Other non-current liabilities
Finance leases $ 1 $ 0
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Long-term debt Long-term debt
Total lease liabilities $ 58 $ 66
v3.25.0.1
LEASES AND COMMITMENTS - Schedule of Lease Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating leases $ 2 $ 12 $ 13
Finance leases 2 0 2
Total lease obligations $ 4 $ 12 $ 15
v3.25.0.1
LEASES AND COMMITMENTS - Schedule of Maturity of Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Operating leases    
2025 $ 18  
2026 17  
2027 15  
2028 5  
2029 2  
After 2029 3  
Total (undiscounted) lease payments 60  
Less: Imputed interest 4  
Present value of lease liabilities 56  
Finance leases    
2025 1  
2026 1  
2027 0  
2028 0  
2029 0  
After 2029 0  
Total (undiscounted) lease payments 2  
Less: Imputed interest 0  
Present value of lease liabilities $ 2 $ 0
v3.25.0.1
LEASES AND COMMITMENTS - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease costs $ 20 $ 15 $ 18
Operating cash flows for operating leases 20 20 21
Short-term lease costs 5 1 4
Finance leases 2 0 2
Finance Lease, Interest Expense $ 0 $ 0 $ 0
v3.25.0.1
LEASES AND COMMITMENTS - Schedule of Terms and Discount Rates (Details)
Dec. 31, 2024
Dec. 31, 2023
Weighted average remaining lease term (years)    
Operating leases 4 years 4 years
Finance leases 5 years 4 years
Weighted average discount rate    
Operating leases 3.60% 3.00%
Finance leases 5.70% 3.60%
v3.25.0.1
EARNINGS PER SHARE - Narrative (Details) - shares
shares in Millions
 12 Months Ended
Jul. 02, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]        
Weighted average shares of common stock outstanding (in shares) 47.0 44.0 46.9 47.0
v3.25.0.1
EARNINGS PER SHARE - Schedule of Earnings Per Share Common Stock (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Jul. 02, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]        
Net earnings attributable to PHINIA Inc.   $ 79 $ 102 $ 262
Weighted average shares of common stock outstanding (in shares) 47.0 44.0 46.9 47.0
Basic earnings per share of common stock (in dollar per share)   $ 1.80 $ 2.17 $ 5.57
Effect of stock-based compensation (in shares)   0.8 0.1  
Weighted average shares of common stock outstanding including dilutive shares (in shares)   44.8 47.0 47.0
Diluted earnings per share of common stock (in dollar per share)   $ 1.76 $ 2.17 $ 5.57
v3.25.0.1
RELATED PARTY - Allocation of General Corporate and Other Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Selling, general and administrative expenses $ 442 $ 413 $ 407
Corporate Expense Allocation | Related Party      
Related Party Transaction [Line Items]      
Selling, general and administrative expenses   $ 89 $ 118
v3.25.0.1
RELATED PARTY - Schedule of Related Party Transactions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]    
Total net transfers from Former Parent $ 220 $ (178)
Total net transfers to Former Parent per Consolidated Statements of Cash Flow (5) (204)
General financing activities | Related Party    
Related Party Transaction [Line Items]    
Total net transfers from Former Parent (63) (175)
Cash pooling and other equity settled balances with Former Parent | Related Party    
Related Party Transaction [Line Items]    
Total net transfers from Former Parent (64) (110)
Related-party notes converted to equity | Related Party    
Related Party Transaction [Line Items]    
Total net transfers from Former Parent 260 0
Total net transfers to Former Parent per Consolidated Statements of Cash Flow (260) 0
Corporate allocations | Related Party    
Related Party Transaction [Line Items]    
Total net transfers from Former Parent 89 118
Research and development income from Former Parent | Related Party    
Related Party Transaction [Line Items]    
Total net transfers from Former Parent (2) (11)
Stock-based compensation | Related Party    
Related Party Transaction [Line Items]    
Total net transfers to Former Parent per Consolidated Statements of Cash Flow (4) (11)
Other non-cash activities with Former Parent, net | Related Party    
Related Party Transaction [Line Items]    
Total net transfers to Former Parent per Consolidated Statements of Cash Flow (16) (33)
Cash pooling and intercompany financing activities with Former Parent, net | Related Party    
Related Party Transaction [Line Items]    
Total net transfers to Former Parent per Consolidated Statements of Cash Flow $ 55 $ 18
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION - Narrative (Details) - segment
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from External Customer [Line Items]      
Number of reportable segments 2    
Revenue Benchmark | Geographic Concentration Risk | Outside U.S.      
Revenue from External Customer [Line Items]      
Percentage of net sales 63.00% 63.00% 65.00%
Revenue Benchmark | General Motors | Customer Concentration Risk      
Revenue from External Customer [Line Items]      
Percentage of net sales 17.00% 16.00% 12.00%
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Segment Revenues and Significant Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Net sales $ 3,403 $ 3,500 $ 3,348
Cost of sales 2,647 2,776 2,627
Selling, general and administrative expenses 442 413 407
Net R&D costs 112 108 104
Segment AOI 259 241 318
Customer      
Segment Reporting Information [Line Items]      
Net sales 3,403    
Intersegment      
Segment Reporting Information [Line Items]      
Net sales 0 0 0
Fuel Systems      
Segment Reporting Information [Line Items]      
Net sales 2,020 2,177 2,072
Aftermarket      
Segment Reporting Information [Line Items]      
Net sales 1,383 1,323 1,276
Operating Segments      
Segment Reporting Information [Line Items]      
Segment AOI 438 411 443
Operating Segments | Customer      
Segment Reporting Information [Line Items]      
Net sales   3,500 3,348
Operating Segments | Fuel Systems      
Segment Reporting Information [Line Items]      
Net sales 2,264 2,407 2,293
Cost of sales 1,885 2,030 1,881
Selling, general and administrative expenses 65 78 85
Net R&D costs 102 98 92
Other segment items (6) (14) (17)
Segment AOI 218 215 252
Operating Segments | Fuel Systems | Customer      
Segment Reporting Information [Line Items]      
Net sales 2,020 2,177 2,072
Operating Segments | Aftermarket      
Segment Reporting Information [Line Items]      
Net sales 1,393 1,329 1,284
Cost of sales 1,015 977 972
Selling, general and administrative expenses 142 118 116
Net R&D costs 10 10 12
Other segment items 6 28 (7)
Segment AOI 220 196 191
Operating Segments | Aftermarket | Customer      
Segment Reporting Information [Line Items]      
Net sales 1,383 1,323 1,276
Inter-segment eliminations      
Segment Reporting Information [Line Items]      
Net sales (254) (236) (229)
Inter-segment eliminations | Customer      
Segment Reporting Information [Line Items]      
Net sales 0 0 0
Inter-segment eliminations | Intersegment      
Segment Reporting Information [Line Items]      
Net sales (254) (236) (229)
Inter-segment eliminations | Fuel Systems | Intersegment      
Segment Reporting Information [Line Items]      
Net sales 244 230 221
Inter-segment eliminations | Aftermarket | Intersegment      
Segment Reporting Information [Line Items]      
Net sales $ 10 $ 6 $ 8
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Segment Adjusted Operating Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Segment AOI $ 259 $ 241 $ 318
Corporate, including stock-based compensation 92 47 48
Intangible asset amortization expense 28 28 28
Separation and transaction costs 31 80 31
(Gains) losses for other one-time events (7) 3 2
Restructuring expense 14 12 11
Asset impairments 21 0 5
Equity in affiliates’ earnings, net of tax (11) (10) (11)
Interest expense 99 56 20
Interest income (16) (13) (6)
Other postretirement expense (income) 0 2 (32)
Earnings before income taxes 187 206 347
Operating Segments      
Segment Reporting Information [Line Items]      
Segment AOI 438 411 443
Fuel Systems | Operating Segments      
Segment Reporting Information [Line Items]      
Segment AOI 218 215 252
Aftermarket | Operating Segments      
Segment Reporting Information [Line Items]      
Segment AOI $ 220 $ 196 $ 191
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Geographic Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales $ 3,403 $ 3,500 $ 3,348
Property, plant and equipment, net 843 921 924
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,267 1,303 1,187
Property, plant and equipment, net 147 138 154
Europe      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,394 1,425 1,305
Property, plant and equipment, net 423 473 459
United Kingdom      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 701 712 650
Property, plant and equipment, net 170 175 169
Romania      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 246 238 219
Property, plant and equipment, net 143 139 136
Poland      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 171 180 156
Property, plant and equipment, net 7 55 51
Other Europe      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 276 295 280
Property, plant and equipment, net 103 104 103
China      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 467 503 606
Property, plant and equipment, net 176 203 224
Brazil      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 178 175 167
Property, plant and equipment, net 29 35 28
Other foreign      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 97 94 83
Property, plant and equipment, net $ 68 $ 72 $ 59
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Year-end assets $ 3,768 $ 4,041 $ 4,074
Depreciation/ amortization 160 170 170
Long-lived asset expenditures 105 150 107
Operating Segments      
Segment Reporting Information [Line Items]      
Year-end assets 3,234 3,571 3,662
Depreciation/ amortization 158 169 169
Long-lived asset expenditures 102 149 107
Operating Segments | Fuel Systems      
Segment Reporting Information [Line Items]      
Year-end assets 1,902 2,207 2,314
Depreciation/ amortization 133 141 142
Long-lived asset expenditures 83 136 91
Operating Segments | Aftermarket      
Segment Reporting Information [Line Items]      
Year-end assets 1,332 1,364 1,348
Depreciation/ amortization 25 28 27
Long-lived asset expenditures 19 13 16
Corporate      
Segment Reporting Information [Line Items]      
Year-end assets 534 470 412
Depreciation/ amortization 2 1 $ 1
Long-lived asset expenditures $ 3 $ 1  
v3.25.0.1
REPORTABLE SEGMENTS AND RELATED INFORMATION - Schedule of Sales by Product Line (Details) - Revenue Benchmark - Product Concentration Risk
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Independent aftermarket and original equipment service solutions      
Revenue from External Customer [Line Items]      
Percentage of net sales 34.00% 31.00% 32.00%
Light passenger vehicle applications      
Revenue from External Customer [Line Items]      
Percentage of net sales 27.00% 26.00% 23.00%
Commercial vehicle and industrial applications      
Revenue from External Customer [Line Items]      
Percentage of net sales 20.00% 20.00% 22.00%
Light commercial vehicle applications      
Revenue from External Customer [Line Items]      
Percentage of net sales 18.00% 22.00% 22.00%
v3.25.0.1
OPERATING CASH FLOWS AND OTHER SUPPLEMENTAL FINANCIAL INFORMATION (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
OPERATING      
Net earnings $ 79 $ 102 $ 262
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Depreciation and tooling amortization 132 143 142
Intangible asset amortization 28 28 28
Restructuring expense, net of cash paid 8   5
Loss on debt extinguishment 22 0 0
Stock-based compensation expense 14 10 11
Asset impairments 21 0 5
Deferred income tax provision 11 32 25
Other non-cash adjustments (8) (7) 3
Changes in assets and liabilities, excluding foreign currency translation adjustments:      
Receivables 149 79 (103)
Inventories 23 (4) (60)
Prepayments and other current assets (33) (5) 12
Accounts payable and other current liabilities (114) (95) 16
Prepaid taxes and income taxes payable (9)   31
Other assets and liabilities (10) (26) (69)
Retirement plan contributions (5) (7) (5)
Net cash provided by operating activities 308 250 303
Cash paid during the year for:      
Interest, net 34 26 13
Income taxes, net of refunds 94 88 51
Non-cash investing transactions:      
Period end accounts payable related to property, plant and equipment purchases $ 51 $ 48 $ 67