XML 34 R15.htm IDEA: XBRL DOCUMENT v2.3.0.15
Retirement Benefit Plans
9 Months Ended
Sep. 30, 2011
Compensation and Retirement Disclosure [Abstract] 
Retirement Benefit Plans
Retirement Benefit Plans
The Company has a number of defined benefit pension plans and other post employment benefit plans covering eligible salaried and hourly employees and their dependents. The estimated contributions to the Company’s defined benefit pension plans for 2011 range from $30 million to $40 million, of which $16.7 million has been contributed through the first nine months of the year. The other post employment benefit plans, which provide medical and life insurance benefits, are unfunded plans.

On March 24, 2010, the Company finalized its settlement agreement regarding the closure of the BorgWarner Diversified Transmission Products Plant in Muncie, Indiana ("Muncie Plant") with the Pension Benefit Guaranty Corporation in which the Company will make certain payments directly to the Muncie Plant's defined benefit pension plan (the “Plan”). On December 23, 2009, the Company made an initial cash contribution of $23 million for the 2009 Plan year, consistent with the settlement agreement. Also under the settlement agreement for each of the 2011, 2012 and 2013 Plan years, the Company will make a cash contribution to the Plan in the amount of $15 million, unless this contribution exceeds the maximum amounts deductible under the applicable U.S. tax regulations. The Company provided $35 million in the form of a surety bond and will waive a credit balance valued at up to $8 million in 2014. In the second quarter of 2011, the Company replaced the original surety bond with $35 million in letters of credit.

The components of net periodic benefit cost recorded in the Company’s Condensed Consolidated Statements of Operations are as follows:
 
Pension benefits
 
Other post
employment benefits
(millions of dollars)
2011
 
2010
 
2011
 
2010
Three Months Ended September 30,
US
 
Non-US
 
US
 
Non-US
 
 
Service cost
$
—

 
$
2.7

 
$
—

 
$
2.3

 
$
0.2

 
$
0.2

Interest cost
4.0

 
4.3

 
4.4

 
3.7

 
2.9

 
3.6

Expected return on plan assets
(5.2
)
 
(2.8
)
 
(5.0
)
 
(2.4
)
 
—

 
—

Amortization of unrecognized prior service benefit
(0.2
)
 
—

 
(0.1
)
 
—

 
(1.7
)
 
(1.7
)
Amortization of unrecognized loss
1.7

 
0.2

 
1.6

 
0.2

 
2.0

 
2.3

Net periodic benefit cost
$
0.3

 
$
4.4

 
$
0.9

 
$
3.8

 
$
3.4

 
$
4.4



 
Pension benefits
 
Other post
employment benefits
(millions of dollars)
2011
 
2010
 
2011
 
2010
Nine Months Ended September 30,
US
 
Non-US
 
US
 
Non-US
 
 
Service cost
$
—

 
$
7.9

 
$
—

 
$
7.1

 
$
0.5

 
$
0.6

Interest cost
12.1

 
13.3

 
13.1

 
11.1

 
8.8

 
10.9

Expected return on plan assets
(15.6
)
 
(8.5
)
 
(14.8
)
 
(7.1
)
 
—

 
—

Amortization of unrecognized prior service benefit
(0.6
)
 
—

 
(0.5
)
 
—

 
(5.1
)
 
(5.2
)
Amortization of unrecognized loss
4.9

 
0.6

 
4.9

 
0.6

 
6.0

 
6.8

Net periodic benefit cost
$
0.8

 
$
13.3

 
$
2.7

 
$
11.7

 
$
10.2

 
$
13.1