PHINIA INC. (PHIN) presents a negative liquidation recovery posture under the balance-sheet liquidation lens, consistent with MFFAIS's reported metrics: CLV of -$1.64B, LLV of -$760M, and OLV of -$271M as of the March 31, 2026 period end. Total reported assets of $3.80B are substantially impaired under haircut methodology. Cash of $328M recovers at par; AR (net current receivables $818M) at 90-95% yields approximately $736-777M; inventory ($489M) at 60% yields $293M; PP&E ($854M net) at 50-70% yields $427-598M. Intangibles—$387M net of goodwill and $510M goodwill—are zeroed under the lens, representing a combined $897M of balance-sheet value with nil liquidation recovery. Total liabilities at face value are $2.25B, including $969M long-term debt, $137M pension obligations, $47M ASC 842 operating lease liabilities, $76M warranty accruals (current + noncurrent), and $970M current liabilities. The liability stack at face value paired with zero-recovery intangibles and haircut tangibles drives the deeply negative CLV. Compared to the prior 10-K (December 31, 2025 balance sheet per segment disclosures: total assets $3.82B vs. $3.80B now), the balance sheet is modestly reduced, primarily via cash drawdown ($359M to $328M) and treasury stock accumulation ($56M in buybacks this quarter, bringing treasury stock to $479M). Long-term debt is essentially flat at approximately $968-969M noncurrent plus $1M current. The SEM acquisition (completed August 2025, $47M total consideration) has been integrated; its tangible contribution to the asset base is modest relative to the intangible/goodwill layer it generates. The filing discusses tariff cost pass-through ($12M recovery in Q1 2026 net sales) and a $500M revolving credit facility with $480M available as of March 31, 2026, which is off-balance-sheet liquidity and does not affect the liquidation recovery calculation. Pension obligations (noncurrent $137M) and warranty reserves ($76M total) remain face-value claims in wind-up. The AOCI balance of -$104M is also a component of equity that does not affect liability-side claims but reflects unfunded translation and pension-related losses absorbed by equity.
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