Phinia Settles Litigation With BorgWarner Over Pre-Spin-Off Tax Claims
Reuters
Oct 22, 2025
Phinia Settles Litigation With BorgWarner Over Pre-Spin-Off Tax Claims
Phinia Inc. has reached a settlement agreement with BorgWarner Inc. to resolve litigation in Delaware Superior Court concerning obligations under a tax matters agreement related to Phinia's spin-off from BorgWarner in July 2023. The dispute centered on whether Phinia was required to remit to BorgWarner certain tax refunds related to indirect tax payments made before the separation. As part of the settlement, both companies amended the original tax matters agreement to clarify responsibility for pre-spin-off tax liabilities and outline Phinia's ability to use pre-spin-off tax credits and offsets, including research and development credits. Phinia expects to record a loss of approximately $39 million in the third quarter of 2025 due to the settlement, which it will treat as a separation-related charge for adjusted financial reporting. The company anticipates potential benefits of up to $29 million in cash from research and development credits by the end of 2026, pending necessary filings and approvals.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Phinia Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001968915-25-000059), on October 21, 2025, and is solely responsible for the information contained therein.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.