BALANCE SHEET INFORMATION

Detailed balance sheet data is as follows:



	December 31,
(millions of dollars)	2012			2011
Receivables, net:
Customers	$	1,014.6		$	1,037.4
Other	134.8			149.9
Gross receivables	1,149.4			1,187.3
Bad debt allowance(a)	(2.1		)	(4.3		)
Total receivables, net	$	1,147.3		$	1,183.0
Inventories, net:
Raw material and supplies	$	264.0		$	254.4
Work in progress	82.0			90.9
Finished goods	117.6			124.3
FIFO inventories	463.6			469.6
LIFO reserve	(16.0		)	(15.3		)
Total inventories, net	$	447.6		$	454.3
Prepayments and other current assets:
Prepaid tooling	$	39.1		$	23.5
Product liability insurance asset	—			28.8
Derivatives	5.7			2.7
Prepaid taxes	0.7			0.8
Other	22.0			26.6
Total prepayments and other current assets	$	67.5		$	82.4
Property, plant and equipment, net:
Land and land use rights	$	76.4		$	71.2
Buildings	640.8			616.7
Machinery and equipment	2,282.4			2,006.9
Capital leases	2.3			2.3
Construction in progress	243.7			206.8
Property, plant and equipment, gross	3,245.6			2,903.9
Accumulated depreciation	(1,567.0		)	(1,343.9		)
Property, plant & equipment, net, excluding tooling	1,678.6			1,560.0
Tooling, net of amortization	109.4			104.3
Property, plant & equipment, net	$	1,788.0		$	1,664.3
Investments and advances:
Investment in equity affiliates	$	217.7		$	217.4
Other investments and advances	165.0			127.9
Total investments and advances	$	382.7		$	345.3
Other non-current assets:
Deferred income taxes	$	244.1		$	313.9
Other intangible assets	206.3			243.3
Product liability insurance asset	85.6			32.9
Other	39.9			34.9
Total other non-current assets	$	575.9		$	625.0



	December 31,
(millions of dollars)	2012			2011
Accounts payable and accrued expenses:
Trade payables	$	815.4		$	820.7
Trade payables for capital expenditures	39.8			48.9
Payroll and employee related	180.7			201.9
Product liability	36.5			28.8
Customer related	36.3			29.9
Product warranties	33.1			38.6
Retirement related	27.9			30.9
Interest	11.7			14.2
Derivatives	9.8			2.4
Dividends payable to noncontrolling shareholders	9.5			11.7
Insurance	9.2			10.5
Severance	8.9			5.6
Legal and professional fees	4.2			6.8
Environmental	1.6			3.4
Current deferred income taxes	1.4			6.5
Other	61.2			37.0
Total accounts payable and accrued expenses	$	1,287.2		$	1,297.8
Other non-current liabilities:
Deferred income taxes	$	89.4		$	120.2
Cross currency swaps and derivatives	58.1			85.5
Product liability	49.1			32.9
Product warranties	31.8			34.1
Deferred revenue	30.5			26.0
Environmental	2.3			8.1
Other	56.9			85.1
Total other non-current liabilities	$	318.1		$	391.9
Accumulated other comprehensive loss
Foreign currency translation adjustments	$	140.8		$	85.8
Market value of hedge instruments	(37.2		)	(50.5		)
Defined benefit postretirement plans	(225.8		)	(187.2		)
Other	0.9			1.1
Total accumulated other comprehensive loss	$	(121.3	)	$	(150.8	)



(a) Bad debt allowance:	2012			2011			2010
Beginning balance, January 1	$	(4.3	)	$	(4.0	)	$	(4.3	)
Provision	(0.8		)	(1.4		)	(1.1		)
Write-offs	3.0			1.0			2.5
Translation adjustment and other	—			0.1			(1.1		)
Ending balance, December 31	$	(2.1	)	$	(4.3	)	$	(4.0	)

As of December 31, 2012 and December 31, 2011, accounts payable of $39.8 million and $48.9 million, respectively, were related to property, plant and equipment purchases.

Interest costs capitalized for the years ended December 31, 2012 and 2011 were $17.8 million and $15.0 million, respectively.

NSK-Warner KK ("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 $28.1 million, $33.4 million and $35.5 million in calendar years ended December 31, 2012, 2011 and 2010, 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, 2012, 2011 and 2010 (unaudited):



	November 30,
(millions of dollars)	2012		2011
Balance sheets:
Cash and securities	$	123.3	$	119.4
Current assets, including cash and securities	320.0		344.1
Non-current assets	175.3		182.0
Current liabilities	147.4		172.1
Non-current liabilities	50.2		45.3
Total equity	297.7		308.7

	Year Ended November 30,
(millions of dollars)	2012		2011		2010
Statements of operations:
Net sales	$	696.7	$	655.2	$	634.7
Gross profit	138.2		128.5		131.9
Net earnings	68.5		61.6		68.3

NSK-Warner had no debt outstanding as of November 30, 2012 and 2011. Purchases by the Company from NSK-Warner were $22.8 million, $16.6 million and $14.6 million for the years ended December 31, 2012, 2011 and 2010, respectively.