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

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

 
$
—

 
$
(29.1
)
 
$
—

Environmental litigation settlement
—

 
—

 
—

 
28.0

BERU - Eichenauer equity investment gain
—

 
—

 
—

 
(8.0
)
Other
0.6

 
0.1

 
(0.8
)
 
2.0

Other (income) expense
$
0.6

 
$
0.1

 
$
(29.9
)
 
$
22.0



On May 16, 2011, BorgWarner and Honeywell settled a lawsuit resolving BorgWarner's patent infringement claims. As a result of the settlement, Honeywell 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 2010 environmental litigation settlement.