OTHER OPERATING (INCOME) EXPENSE, NET |
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| OTHER OPERATING (INCOME) EXPENSE, NET | OTHER OPERATING (INCOME) EXPENSE, NET Items included in Other operating (income) expense, net consist of:
Separation-related (benefits) costs: The Company classifies certain expenses and benefits related to the legal and structural separation of the Fuel Systems and Aftermarket businesses from BorgWarner Inc. (the Former Parent) on July 3, 2023 (the Spin-Off) as separation-related costs. These costs and adjustments include professional fees and other costs associated with the separation of the Company, including the adjustment of certain historical liabilities allocated to the Company in connection with the Spin-Off, and indemnities related to tax matters between the Company and the Former Parent. During the three and six months ended June 30, 2025, the Company recorded separation-related benefits of $6 million and $10 million, respectively, which included an $11 million and $18 million benefit related to adjustments under the Tax Matters Agreement during the three and six months ended June 30, 2025, respectively, and $5 million and $8 million of costs related to the Spin-Off during the three and six months ended June 30, 2025, respectively. Merger and acquisition expense: The Company classifies certain expenses and benefits related to certain contemplated and completed acquisition initiatives as merger and acquisition expense. Acquisition costs primarily relate to professional fees for acquisition initiatives. On June 30, 2026, PHINIA entered into a definitive agreement to acquire the stoba Group, a global technology partner specialized in high-precision components, systems, and customized manufacturing solutions. The proposed transaction is expected to close in the fourth quarter of 2026, subject to customary regulatory approvals and closing conditions.
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