OTHER (INCOME) EXPENSE

The following table presents items included in other (income) expense:



	Year Ended December 31,
(millions of dollars)	2012		2011			2010
Loss from disposal activities	$	39.7	$	21.5		$	—
Restructuring expense	27.4		—			—
Retirement related obligations	17.3		—			—
Patent infringement settlement, net of legal costs incurred	—		(29.1		)	—
Environmental litigation settlement	—		—			28.0
BERU - Eichenauer equity investment gain	—		—			(8.0		)
Other	0.3		(0.5		)	2.4
Other (income) expense	$	84.7	$	(8.1	)	$	22.4

During the second and third quarters of 2012, the Company incurred $39.7 million in expense associated with the loss on sale of the spark plug business, primarily related to the to write-down of 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. 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 $9.0 million of employee termination benefits, $6.3 million of contract cancellation costs and $12.1 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.

During the fourth quarter of 2012, the Company recorded retirement related obligations of $17.3 million 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. Refer to Notes 11 and 12 to the Consolidated Financial Statements for further information regarding the Muncie Plant's settlement loss and the Company's decision to waive the forfeiture provisions of existing restricted stock and performance share grants made to certain retiring Named Executive Officers.

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.

Refer to Note 16 to the Consolidated Financial Statements for information regarding the Company's loss from disposal activities and BERU - Eichenauer equity investment gain and Note 13 to the Consolidated Financial Statements for information regarding the Company's environmental litigation settlement.