BALANCE SHEET INFORMATION

Detailed balance sheet data is as follows:



	December 31,
(millions of dollars)	2017			2016
Receivables, net:
Customers	$	1,735.7		$	1,448.3
Indirect taxes	152.1			99.1
Other	136.8			144.8
Gross receivables	2,024.6			1,692.2
Bad debt allowance(a)	(5.7		)	(2.9		)
Total receivables, net	$	2,018.9		$	1,689.3
Inventories, net:
Raw material and supplies	$	469.7		$	378.6
Work in progress	126.7			102.9
Finished goods	183.0			174.9
FIFO inventories	779.4			656.4
LIFO reserve	(13.1		)	(15.2		)
Total inventories, net	$	766.3		$	641.2
Prepayments and other current assets:
Prepaid tooling	$	81.9		$	77.5
Prepaid taxes	5.3			8.0
Other	58.2			51.9
Total prepayments and other current assets	$	145.4		$	137.4
Property, plant and equipment, net:
Land and land use rights	$	115.7		$	111.0
Buildings	783.5			670.6
Machinery and equipment	2,734.4			2,371.2
Capital leases	1.5			3.9
Construction in progress	410.5			338.2
Property, plant and equipment, gross	4,045.6			3,494.9
Accumulated depreciation	(1,391.7		)	(1,137.5		)
Property, plant & equipment, net, excluding tooling	2,653.9			2,357.4
Tooling, net of amortization	209.9			144.4
Property, plant & equipment, net	$	2,863.8		$	2,501.8
Investments and other long-term receivables:
Investment in equity affiliates	$	239.6		$	218.9
Other long-term receivables	307.8			283.3
Total investments and other long-term receivables	$	547.4		$	502.2
Other non-current assets:
Deferred income taxes	$	121.2		$	424.0
Asbestos insurance asset	127.7			178.7
Other	209.8			150.7
Total other non-current assets	$	458.7		$	753.4



	December 31,
(millions of dollars)	2017		2016
Accounts payable and accrued expenses:
Trade payables	$	1,545.6	$	1,259.4
Payroll and employee related	239.7		206.4
Indirect taxes	111.0		63.9
Product warranties	69.0		63.9
Customer related	75.7		52.8
Asbestos-related liability	52.5		51.7
Interest	22.9		22.9
Retirement related	17.2		18.1
Dividends payable to noncontrolling shareholders	17.7		15.7
Unrecognized tax benefits	0.8		15.5
Insurance	10.1		7.8
Severance	5.8		6.4
Derivatives	5.0		1.2
Other	97.3		61.6
Total accounts payable and accrued expenses	$	2,270.3	$	1,847.3
Other non-current liabilities:
Deferred income taxes	$	61.4	$	54.2
Deferred revenue	52.4		33.5
Product warranties	42.5		31.4
Other	199.2		156.6
Total other non-current liabilities	$	355.5	$	275.7



(a) Bad debt allowance:	2017			2016			2015
Beginning balance, January 1	$	(2.9	)	$	(1.9	)	$	(2.3	)
Provision	(2.7		)	(3.2		)	(0.5		)
Write-offs	0.1			0.2			0.7
Business divestiture	—			2.0			—
Translation adjustment and other	(0.2		)	—			0.2
Ending balance, December 31	$	(5.7	)	$	(2.9	)	$	(1.9	)

As of December 31, 2017 and December 31, 2016, accounts payable of $106.5 million and $85.3 million, respectively, were related to property, plant and equipment purchases.

Interest costs capitalized for the years ended December 31, 2017, 2016 and 2015 were $19.7 million, $14.1 million and $16.5 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 Segment's South Korean subsidiary, BorgWarner Transmission Systems Korea Ltd. Dividends from NSK-Warner were $20.2 million, $34.3 million and $18.0 million in calendar years ended December 31, 2017, 2016 and 2015, 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, 2017, 2016 and 2015 (unaudited):



			November 30,
(millions of dollars)			2017		2016
Balance sheets:
Cash and securities			$	104.6	$	98.6
Current assets, including cash and securities			289.2		256.3
Non-current assets			231.9		194.5
Current liabilities			154.9		122.6
Non-current liabilities			68.1		48.2
Total equity			298.1		280.0

	Year Ended November 30,
(millions of dollars)	2017		2016		2015
Statements of operations:
Net sales	$	669.6	$	601.8	$	519.0
Gross profit	149.2		134.1		118.6
Net earnings	85.2		71.7		73.3

NSK-Warner had no debt outstanding as of November 30, 2017 and 2016. Purchases by the Company from NSK-Warner were $12.3 million, $23.9 million and $23.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.