BALANCE SHEET INFORMATION

Detailed balance sheet data is as follows:



	December 31,
(millions of dollars)	2011			2010
Receivables, net:
Customers	$	1,037.4		$	859.5
Other	149.9			168.4
Gross receivables	1,187.3			1,027.9
Bad debt allowance(a)	(4.3		)	(4.0		)
Total receivables, net	$	1,183.0		$	1,023.9
Inventories, net:
Raw material and supplies	$	254.4		$	244.0
Work in progress	90.9			88.1
Finished goods	124.3			111.7
FIFO inventories	469.6			443.8
LIFO reserve	(15.3		)	(13.2		)
Total inventories, net	$	454.3		$	430.6
Prepayments and other current assets:
Prepaid tooling	$	23.5		$	21.8
Product liability insurance asset	28.8			25.8
Derivatives	2.7			2.7
Prepaid taxes	0.8			5.8
Other	26.6			23.6
Total prepayments and other current assets	$	82.4		$	79.7
Property, plant and equipment, net:
Land	$	71.2		$	67.9
Buildings	616.7			601.4
Machinery and equipment	2,006.9			1,961.2
Capital leases	2.3			2.3
Construction in progress	206.8			128.2
Property, plant and equipment, gross	2,903.9			2,761.0
Accumulated depreciation	(1,343.9		)	(1,308.0		)
Property, plant & equipment, net, excluding tooling	1,560.0			1,453.0
Tooling, net of amortization	104.3			89.6
Property, plant & equipment, net	$	1,664.3		$	1,542.6
Investments and advances:
Investment in equity affiliates	$	217.4		$	205.2
Other investments and advances	127.9			102.7
Total investments and advances	$	345.3		$	307.9
Other non-current assets:
Product liability insurance asset	$	32.9		$	24.8
Deferred income taxes	313.9			305.5
Other intangible assets	243.3			168.8
Other	34.9			32.0
Total other non-current assets	$	625.0		$	531.1



	December 31,
(millions of dollars)	2011		2010
Accounts payable and accrued expenses:
Trade payables	$	820.7	$	737.7
Trade payables for capital expenditures	48.9		28.9
Payroll and employee related	201.9		190.2
Product warranties	38.6		37.0
Retirement related	30.9		34.7
Customer related	29.9		32.5
Product liability	28.8		25.8
Interest	14.2		14.3
Dividends payable to noncontrolling shareholders	11.7		4.2
Insurance	10.5		11.9
Legal and professional fees	6.8		8.6
Current deferred income taxes	6.5		18.4
Severance	5.6		4.6
Environmental	3.4		21.0
Derivatives	2.4		3.3
Other	37.0		51.0
Total accounts payable and accrued expenses	$	1,297.8	$	1,224.1
Other non-current liabilities:
Deferred income taxes	$	120.2	$	113.7
Cross currency swaps and derivatives	85.5		78.8
Product warranties	34.1		29.8
Product liability	32.9		24.8
Deferred revenue	26.0		23.4
Environmental	8.1		8.2
Other	85.1		84.2
Total other non-current liabilities	$	391.9	$	362.9



(a) Bad debt allowance:	2011			2010			2009
Beginning balance, January 1	$	(4.0	)	$	(4.3	)	$	(5.7	)
Provision	(1.4		)	(1.1		)	0.1
Write-offs	1.0			2.5			1.4
Translation adjustment and other	0.1			(1.1		)	(0.1		)
Ending balance, December 31	$	(4.3	)	$	(4.0	)	$	(4.3	)

As of December 31, 2011 and December 31, 2010, accounts payable of $48.9 million and $28.9 million, respectively, were related to property, plant and equipment purchases.

As of December 31, 2011, the Company had no assets pledged as collateral under its long-term debt agreements. As of December 31, 2010, specific assets of $3.4 million were pledged as collateral under certain of the Company's long-term debt agreements.

As of December 31, 2011 and December 31, 2010, the Company's conditional asset retirement obligation relating to 47 of its manufacturing locations was $1.1 million and $1.2 million, respectively. This obligation represents the Company's liability to remove hazardous building materials from certain facilities.

Interest costs capitalized for the years ended December 31, 2011 and 2010 were $15.0 million and $11.2 million, respectively.

NSK-Warner

The Company has a 50% interest in NSK-Warner, a joint venture based in Japan that manufactures automatic transmission components. The Company's share of the earnings reported by NSK-Warner is accounted for using the equity method of accounting. NSK-Warner is the joint venture partner with a 40% interest in the Drivetrain Group's South Korean subsidiary, BorgWarner Transmission Systems Korea Inc. Dividends received from NSK-Warner were $33.4 million, $35.5 million and $48.0 million in calendar years ended December 31, 2011, 2010 and 2009, respectively.

NSK-Warner has a fiscal year-end of March 31. The Company's equity in the earnings of NSK-Warner consists of the 12 months ended November 30. Following is summarized financial data for NSK-Warner, translated using the ending or periodic rates, as of and for the years ended November 30, 2011, 2010 and 2009 (unaudited):



	November 30,
(millions of dollars)	2011		2010
Balance sheets:
Cash and securities	$	119.4	$	109.1
Current assets, including cash and securities	344.1		310.2
Non-current assets	182.0		174.9
Current liabilities	172.1		151.4
Non-current liabilities	45.3		41.9
Total equity	308.7		291.8

	Year Ended November 30,
(millions of dollars)	2011		2010		2009
Statements of operations:
Net sales	$	655.2	$	634.7	$	494.5
Gross profit	128.5		131.9		89.2
Net income	61.6		68.3		35.8

NSK-Warner had no debt outstanding as of November 30, 2011 and 2010. Purchases by the Company from NSK-Warner were $16.6 million, $14.6 million and $16.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.