XML 109 R82.htm IDEA: XBRL DOCUMENT v2.4.0.6
Reporting Segments and Related Information - Quarterly Information (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Net sales $ 1,719.1 $ 1,695.2 $ 1,856.4 $ 1,912.5 $ 1,773.7 $ 1,791.8 $ 1,818.8 $ 1,730.4 $ 7,183.2 $ 7,114.7 $ 5,652.8
Cost of sales 1,374.9 1,351.5 1,473.2 1,516.7 1,414.0 1,441.0 1,461.7 1,387.6 5,716.3 5,704.3 4,559.5
Gross profit 344.2 343.7 383.2 395.8 359.7 350.8 357.1 342.8 1,466.9 1,410.4 1,093.3
Equity in affiliates’ earnings, net of tax (10.0) (11.1) (12.5) (9.2) (10.2) (11.5) (8.1) (8.4) (42.8) (38.2) (39.6)
Net earnings 126.6 105.9 126.2 163.7 127.2 146.7 167.3 129.4 522.4 570.6 396.2
Net earnings attributable to the noncontrolling interest, net of tax 5.4 4.8 5.6 5.7 5.2 5.1 5.3 4.9 21.5 20.5 18.8
Selling, general and administrative expenses 156.2 151.0 153.1 169.0 146.8 151.4 157.7 165.1 629.3 621.0 566.6
Net earnings attributable to BorgWarner Inc. 121.2 [1] 101.1 [1] 120.6 [1] 158.0 [1] 122.0 [1] 141.6 [1] 162.0 [1] 124.5 [1] 500.9 [1] 550.1 [1] 377.4
Interest income 1.0 1.0 1.3 1.4 1.3 1.3 1.2 1.0 4.7 4.8 2.8
Interest expense and finance charges 6.7 5.0 12.6 15.1 17.2 18.5 20.5 18.4 39.4 74.6 68.8
Earnings per share — basic $ 1.05 $ 0.88 $ 1.08 $ 1.46 $ 1.12 $ 1.30 $ 1.49 $ 1.13 $ 4.45 $ 5.04 $ 3.31
Other (income) expense 17.3 29.7 36.6 1.1 21.8 0.6 (28.9) (1.6) 84.7 (8.1) 22.4
Operating income 170.7 163.0 193.5 225.7 191.1 198.8 228.3 179.3 752.9 797.5 504.3
Earnings before income taxes and noncontrolling interest 175.0 170.1 194.7 221.2 185.4 193.1 217.1 170.3 761.0 765.9 477.9
Provision for income taxes 48.4 64.2 68.5 57.5 58.2 46.4 49.8 40.9 238.6 195.3 81.7
Earnings per share — diluted $ 1.03 $ 0.85 $ 1.00 $ 1.28 $ 1.00 $ 1.15 $ 1.31 $ 1.00 $ 4.17 [2] $ 4.45 [2] $ 3.07 [2]
Retirement related obligations                 17.3 0 0
Recognized net (gain) loss due to settlements                 5.7    
Executive retirement incremental compensation expense                 11.6    
Tax benefit associated retirement obligations                 6.1    
Other tax adjustments 3.9 6.9         6.2   19.8    
Tax impact of writedown of tax accounts                 11.1    
Loss on disposals                 (39.7) (21.5) 0
Tax impact of loss on disposals   (11.2) 5.5   1.4       (5.7) (2.7)  
Tax expense associated with intercompany disposal                   4.1  
Restructuring expense                 27.4 0 0
Tax benefit associated with restructuring   7.7             7.7    
Impact of change in repatriation assertion     9.0           7.5    
Patent infringement settlement, net of legal costs incurred                 0 29.1 0
Tax impact of patent infringement settlement                   11.0  
Spark Plug Business [Member]
                     
Loss on disposals   $ (1.8) $ (37.9)                
[1] The Company's results were impacted by the following:•Quarter ended December 31, 2012: Retirement related obligations of $17.3 million are comprised of a $5.7 million loss resulting from the settlement of a portion of the Muncie Plant's pension obligation and an $11.6 million expense associated with the retirement of certain Named Executive Officers. These obligations were partially offset by a $6.1 million tax benefit. The Company incurred tax expense of $3.9 million which included $11.1 million of U.S. tax expense to correct the income taxes payable balance, partially offset by tax benefits resulting from changes to the statutory income tax rate in certain countries and the settlement of certain tax audits. •Quarter ended September 30, 2012: The Company incurred $1.8 million of expense and $11.2 million of tax expense associated with the completion of the sale of its spark plug business. The Company also recorded restructuring expense of $27.4 million primarily associated with the disposal and future requirements of BERU's on-going business, which was partially offset by a tax benefit of $7.7 million. Additionally, the Company incurred tax expense of $6.9 million primarily resulting from the settlement of certain tax audits.•Quarter ended June 30, 2012: The Company recorded expense of $37.9 million primarily due to the write-down of prior purchase price accounting adjustments included within the disposal group as a result of signing a Master Purchase Agreement to sell the spark plug business to Federal-Mogul Corporation, which was partially offset by a tax benefit of $5.5 million resulting from the write-down. Additionally, the Company recorded tax expense of $9.0 million related to its decision to change its cash repatriation assertion for some of its foreign subsidiaries.•Quarter ended December 31, 2011: The Company incurred $21.5 million in expense associated with the loss on sale of the tire pressure monitoring business, including costs related to the divestiture, and a write-down of a portion of the ignitor and electronic business. The Company recorded $1.4 million of tax benefit associated with the disposals and $4.1 million of tax expense related to an intercompany disposal transaction.•Quarter ended June 30, 2011: The Company recorded a $29.1 million patent infringement settlement gain, net of legal costs incurred, which was partially offset by $11.0 million of additional tax expense. Additionally, the Company recorded $6.2 million related to tax adjustments resulting from a change in state corporate income tax legislation as well as an adjustment of the Company's tax accounts as a result of the closure of certain tax audits.
[2] * The Company's diluted earnings per share for the years ended December 31, 2012, 2011 and 2010 includes the impact of the Company's 3.50% convertible senior notes and associated warrants. Refer to Note 15, "Earnings Per Share," for further information on the diluted earnings per share calculation.