BALANCE SHEET INFORMATION

Detailed balance sheet data is as follows:



	December 31,
(millions of dollars)	2018			2017
Receivables, net:
Customers	$	1,727.7		$	1,735.7
Indirect taxes	114.1			152.1
Other	152.2			136.8
Gross receivables	1,994.0			2,024.6
Bad debt allowance (a)	(6.6		)	(5.7		)
Total receivables, net	$	1,987.4		$	2,018.9
Inventories, net:
Raw material and supplies	$	485.0		$	469.7
Work in progress	113.6			126.7
Finished goods	198.9			183.0
FIFO inventories	797.5			779.4
LIFO reserve	(16.7		)	(13.1		)
Total inventories, net	$	780.8		$	766.3
Prepayments and other current assets:
Prepaid tooling	$	82.9		$	81.9
Prepaid taxes	84.4			5.3
Other	82.7			58.2
Total prepayments and other current assets	$	250.0		$	145.4
Property, plant and equipment, net:
Land and land use rights	$	107.9		$	115.7
Buildings	762.6			783.5
Machinery and equipment	2,851.2			2,734.4
Capital leases	2.6			1.5
Construction in progress	425.8			410.5
Property, plant and equipment, gross	4,150.1			4,045.6
Accumulated depreciation	(1,473.5		)	(1,391.7		)
Property, plant & equipment, net, excluding tooling	2,676.6			2,653.9
Tooling, net of amortization	227.2			209.9
Property, plant & equipment, net	$	2,903.8		$	2,863.8
Investments and other long-term receivables:
Investment in equity affiliates	$	243.5		$	239.6
Other long-term asbestos-related insurance receivables	303.3			258.7
Other long-term receivables	44.9			49.1
Total investments and other long-term receivables	$	591.7		$	547.4
Other non-current assets:
Deferred income taxes	$	197.7		$	121.2
Deferred asbestos-related insurance asset	83.1			127.7
Other	221.5			209.8
Total other non-current assets	$	502.3		$	458.7



	December 31,
(millions of dollars)	2018		2017
Accounts payable and accrued expenses:
Trade payables	$	1,485.4	$	1,545.6
Payroll and employee related	232.6		239.7
Indirect taxes	72.9		111.0
Product warranties	56.2		69.0
Customer related	49.2		75.7
Asbestos-related liability	50.0		52.5
Severance	25.0		5.8
Interest	19.1		22.9
Dividends payable to noncontrolling shareholders	17.2		17.7
Retirement related	15.9		17.2
Insurance	11.7		10.1
Derivatives	1.8		5.0
Other	107.3		98.1
Total accounts payable and accrued expenses	$	2,144.3	$	2,270.3
Other non-current liabilities:
Deferred income taxes	$	51.4	$	61.4
Product warranties	47.0		42.5
Other	258.9		251.6
Total other non-current liabilities	$	357.3	$	355.5



(a) Bad debt allowance:	2018			2017			2016
Beginning balance, January 1	$	(5.7	)	$	(2.9	)	$	(1.9	)
Provision	(5.3		)	(2.7		)	(3.2		)
Write-offs	4.2			0.1			0.2
Business divestiture	—			—			2.0
Translation adjustment and other	0.2			(0.2		)	—
Ending balance, December 31	$	(6.6	)	$	(5.7	)	$	(2.9	)

As of December 31, 2018 and December 31, 2017, accounts payable of $103.7 million and $106.5 million, respectively, were related to property, plant and equipment purchases.

Interest costs capitalized for the years ended December 31, 2018, 2017 and 2016 were $22.3 million, $19.7 million and $14.1 million, respectively.

NSK-Warner KK ("NSK-Warner")

The Company has two equity method investments, the largest is 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 $40.5 million, $20.2 million and $34.3 million in calendar years ended December 31, 2018, 2017 and 2016, 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, 2018, 2017 and 2016 (unaudited):



			November 30,
(millions of dollars)			2018		2017
Balance sheets:
Cash and securities			$	116.6	$	104.6
Current assets, including cash and securities			316.9		289.2
Non-current assets			283.3		231.9
Current liabilities			215.3		154.9
Non-current liabilities			88.9		68.1
Total equity			296.0		298.1

	Year Ended November 30,
(millions of dollars)	2018		2017		2016
Statements of operations:
Net sales	$	731.8	$	669.6	$	601.8
Gross profit	152.3		149.2		134.1
Net earnings	86.4		85.2		71.7

Purchases by the Company from NSK-Warner were $9.7 million, $12.3 million and $23.9 million for the years ended December 31, 2018, 2017 and 2016, respectively.