DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of assets and liabilities classified as held for sale

The following table summarizes the assets and liabilities from discontinued operations of PHINIA.

(in millions)	December 31, 2022
ASSETS
Cash, cash equivalents and restricted cash	$	255
Receivables, net	852
Inventories, net	470
Prepayments and other current assets	39
Total current assets of discontinued operations	$	1,616
Property, plant and equipment, net	939
Investments and long-term receivables	77
Goodwill	419
Other intangible assets, net	432
Other non-current assets	179
Total non-current assets of discontinued operations	$	2,046
LIABILITIES
Notes payable and other short-term debt	$	2
Accounts payable	538
Other current liabilities	406
Total current liabilities of discontinued operations	$	946
Long-term debt	26
Retirement-related liabilities	94
Other non-current liabilities	175
Total non-current liabilities of discontinued operations	$	295

The following table summarizes the financial results from discontinued operations of PHINIA.

(in millions)	Year Ended December 31,
	2023		2022		2021
Net sales	$	1,723	$	3,348	$	3,227
Cost of sales	1,362		2,616		2,545
Gross profit	361		732		682
Selling, general and administrative expenses	173		320		375
Restructuring expense	7		11		55
Other operating expense, net	132		36		15
Operating (loss) income	49		365		237
Equity in affiliates’ earnings, net of tax	(5)		(10)		(6)
Interest expense, net	—		1		2
Other postretirement expense (income)	—		(31)		(38)
Earnings from discontinued operations before income taxes	54		405		279
Provision for income taxes	61		97		85
Net (loss) earnings from discontinued operations attributable to PHINIA	$	(7)	$	308	$	194

The table presents recast financial information reflecting the presentation of discontinued operations related to the Spin-Off:

(in millions, except per share amounts)	2023										2022
Quarter ended	Mar-31		Jun-30		Sep-30		Dec-31		Year		Mar-31		Jun-30		Sep-30		Dec-31		Year
Net sales	$	3,383	$	3,671	$	3,622	$	3,522	$	14,198	$	3,079	$	3,013	$	3,226	$	3,317	$	12,635
Gross profit	578		679		652		659		2,568		575		548		607		639		2,369
Operating income	273		334		272		281		1,160		270		209		265		265		1,009
Amounts attributable to BorgWarner Inc.:
Net earnings from continuing operations	$	166	$	230	$	87	$	149	$	632	$	130	$	161	$	173	$	172	$	636
Net earnings (loss) from discontinued operations	51		(26)		(37)		5		(7)		70		54		102		82		308
Net earnings attributable to BorgWarner Inc.	$	217	$	204	$	50	$	154	$	625	$	200	$	215	$	275	$	254	$	944
Earnings per share from continuing operations — basic	$	0.72	$	0.99	$	0.37	$	0.64	$	2.71	$	0.55	$	0.68	$	0.74	$	0.74	$	2.70
Earnings per share from discontinued operations — basic	$	0.21	$	(0.11)	$	(0.16)	$	0.02	$	(0.03)	$	0.29	$	0.23	$	0.43	$	0.35	$	1.31
Earnings per share attributable to BorgWarner Inc. — basic1	$	0.93	$	0.87	$	0.21	$	0.67	$	2.68	$	0.84	$	0.91	$	1.17	$	1.09	$	4.01
Earnings per share from continuing operations — diluted	$	0.72	$	0.97	$	0.37	$	0.64	$	2.70	$	0.54	$	0.68	$	0.73	$	0.73	$	2.69
Earnings per share from discontinued operations — diluted	$	0.21	$	(0.10)	$	(0.16)	$	0.02	$	(0.03)	$	0.30	$	0.23	$	0.42	$	0.36	$	1.30
Earnings per share attributable to BorgWarner Inc. — diluted1	$	0.93	$	0.87	$	0.21	$	0.66	$	2.67	$	0.84	$	0.91	$	1.15	$	1.09	$	3.99

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1 Due to the use of quarterly weighted average shares outstanding for computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year.