
(in millions)
	2024		2023
Net sales	$	—	$	1,723
Cost of sales	—		1,362
Gross profit	—		361

Selling, general and administrative expenses	—		173
Restructuring expense	—		7
Other operating expense, net	31		132
Operating (loss) income	(31)		49

Equity in affiliates’ earnings, net of tax	—		(5)



Earnings from discontinued operations before income taxes	(31)		54

(Benefit) provision for income taxes	(2)		61

Net loss from discontinued operations attributable to PHINIA	$	(29)	$	(7)

In connection with the Spin-Off, the Company entered into a transition services agreement through which the Company and PHINIA provided certain services to each other following the Spin-Off. These services were related to information technology, human resources, finance, facilities, procurement, sales, intellectual property and engineering. In December 2024, the Company and PHINIA executed an amendment to the original transition services agreement to extend certain engineering services until September 30, 2025. The transition services agreement expired and all related services ended on September 30, 2025. The combined impact of these services is reported in results of continuing operations in the Consolidated Financial Statements. During the year ended December 31, 2025, there were no activities related to those services. During the year ended December 31, 2024 and 2023, the Company provided services at a cost of $7 million and $13 million to PHINIA, respectively, and PHINIA provided services at a cost of $2 million and $3 million to the Company, respectively.

The Company incurred $31 million and $132 million of costs relating to the Spin-Off during the year ended December 31, 2024 and 2023, respectively, which are reflected within Net loss from discontinued operations in the Company’s Consolidated Statements of Operations. Spin-Off costs are primarily comprised of professional fees and costs to separate certain operational activities, including costs to separate information technology systems which substantially concluded as of December 31, 2024.