v3.23.3
DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONSThe historical results of operations and the financial position of PHINIA for periods prior to the Spin-Off are presented as discontinued operations in these Condensed Consolidated Financial Statements.
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, net852 
Inventories, net470 
Prepayments and other current assets39 
Total current assets of discontinued operations$1,616 
Property, plant and equipment, net939 
Investments and long-term receivables77 
Goodwill419 
Other intangible assets, net432 
Other non-current assets179 
Total non-current assets of discontinued operations$2,046 
LIABILITIES
Notes payable and other short-term debt$2 
Accounts payable538 
Other current liabilities406 
Total current liabilities of discontinued operations$946 
Long-term debt26 
Retirement-related liabilities94 
Other non-current liabilities175 
Total non-current liabilities of discontinued operations$295 
The following table summarizes the financial results from discontinued operations of PHINIA.

(in millions)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Net sales$— $857 $1,723 $2,496 
Cost of sales— 658 1,362 1,958 
Gross profit— 199 361 538 
Selling, general and administrative expenses— 72 173 228 
Restructuring expense— 3 7 8 
Other operating expense, net52 — 117 33 
Operating (loss) income(52)124 64 269 
Equity in affiliates’ earnings, net of tax— (5)(5)(8)
Interest expense, net— — — 1 
Other postretirement expense (income)— (7)— (24)
Earnings from discontinued operations before income taxes(52)136 69 300 
Provision for income taxes(15)36 81 75 
Net (loss) earnings from discontinued operations attributable to PHINIA$(37)$100 $(12)$225 

In connection with the Spin-Off, the Company entered into a transition services agreement through which the Company and PHINIA will continue to provide certain services to each other following the Spin-Off. These services include IT, HR, finance, facilities, procurement, sales, IP & engineering costs. The combined impact of these services is reported in results of continuing operations in the Condensed Consolidated Financial Statements. The Company provided $7 million to PHINIA, and PHINIA provided $2 million to the Company, for these services during the three months ended September 30, 2023.

The Company incurred $52 million and $117 million of costs relating to the Spin-Off during the three and nine months ended September 30, 2023, respectively, that are reflected within Net (loss) earnings from discontinued operations in our Condensed Consolidated Statements of Operations. Spin-Off costs are primarily comprised of professional fees and costs to separate certain operational activities.