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Other income expense
 9 Months Ended
Sep. 30, 2012
Other Income and Expenses [Abstract]  
Other Income and Other Expense Disclosure [Text Block]
(3) Other (Income) Expense

Items included in other (income) expense consist of:

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(millions of dollars)
2012
 
2011
 
2012
 
2011
Loss from disposal activities
$
1.8

 
$
—

 
$
39.7

 
$
—

Restructuring expense
27.4

 
—

 
27.4

 
—

Patent infringement settlement, net of legal costs incurred
—

 
—

 
—

 
(29.1
)
Other
0.5

 
0.6

 
0.3

 
(0.8
)
Other (income) expense
$
29.7

 
$
0.6

 
$
67.4

 
$
(29.9
)


During the second quarter of 2012, the Company signed a Master Purchase Agreement to sell its spark plug business to Federal-Mogul Corporation. As a result, the Company recorded expense of $37.9 million primarily to write-down prior purchase price accounting adjustments included within the disposal group. These purchase price accounting adjustments were originally reported in the Engine segment and related to the BERU acquisition. During the third quarter of 2012, the Company recorded expense of $1.8 million primarily related to working capital adjustments associated with the completion of the sale of its spark plug business and received $55.2 million in cash, which is classified as an investing activity within the Condensed Consolidated Statement of Cash Flows. The Company also recorded restructuring expense of $27.4 million in the third quarter of 2012 primarily associated with the disposal and future requirements of BERU's on-going business, which included $16.9 million of employee termination benefits and $10.5 million of other charges, primarily related to the write-down of certain assets. The Company expects to pay all employee termination benefits in the next 12 months.

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.