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Other (Income) Expense
 6 Months Ended
Jun. 30, 2011
Other Income and Expenses [Abstract]  
Other (income) expense
Other (Income) Expense


Items included in other (income) expense consist of:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(millions of dollars)
2011
 
2010
 
2011
 
2010
Patent infringement settlement, net of legal costs incurred
$
(29.1
)
 
$
—


 
$
(29.1
)
 
$
—


Environmental litigation settlement
—


 
28.0


 
—


 
28.0


BERU - Eichenauer equity investment gain
—


 
(8.0
)
 
—


 
(8.0
)
Other
0.2


 
0.3


 
(1.4
)
 
1.9


Other (income) expense
$
(28.9
)
 
$
20.3


 
$
(30.5
)
 
$
21.9






On May 16, 2011, BorgWarner and Honeywell settled a lawsuit resolving BorgWarner's patent infringement claims. As a result of the settlement, Honeywell has paid $32.5 million for a paid up license to use the asserted BorgWarner patents. During 2011, the Company incurred $3.4 million in legal costs related to this lawsuit and after deducting these costs, the Company recorded a net gain of $29.1 million.


On May 1, 2010, the Company completed the acquisition of BERU-Eichenauer GmbH by acquiring the shares of its former joint venture partner, Eichenauer Heizelemente GmbH & Co. KG. The former 50/50 joint venture was formed in 2000 to develop and manufacture electric cabin heaters. As a result of adjusting the Company's fifty percent investment to fair value under Accounting Standards Codification ("ASC") Topic 805, the Company recorded a pre-tax gain of $8.0 million.


See Note 14 to the Condensed Consolidated Financial Statements for more information regarding the Company's second quarter 2010 environmental litigation settlement.