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Interim Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information
INTERIM FINANCIAL INFORMATION (Unaudited)

The following table presents summary quarterly financial data:

(millions of dollars, except per share amounts)
2018
 
2017
Quarter ended
Mar-31
 
Jun-30
 
Sep-30
 
Dec-31
 
Year
 
Mar-31
 
Jun-30
 
Sep-30
 
Dec-31
 
Year
Net sales
$
2,784.3

 
$
2,694.0

 
$
2,478.5

 
$
2,572.8

 
$
10,529.6

 
$
2,407.0

 
$
2,389.7

 
$
2,416.2

 
$
2,586.4

 
$
9,799.3

Cost of sales
2,192.5

 
2,114.8

 
1,962.9

 
2,030.0

 
8,300.2

 
1,890.7

 
1,876.8

 
1,894.6

 
2,021.6

 
7,683.7

Gross profit
591.8

 
579.2

 
515.6

 
542.8

 
2,229.4

 
516.3

 
512.9

 
521.6

 
564.8

 
2,115.6

Selling, general and administrative expenses
253.4

 
236.0

 
230.5

 
225.8

 
945.7

 
219.0

 
215.1

 
225.0

 
240.0

 
899.1

Other expense (income), net
4.9

 
30.4

 
7.1

 
51.4

 
93.8

 
5.8

 
(0.3
)
 
22.0

 
117.0

 
144.5

Operating income
333.5

 
312.8

 
278.0

 
265.6

 
1,189.9

 
291.5

 
298.1

 
274.6

 
207.8

 
1,072.0

Equity in affiliates’ earnings, net of tax
(10.2
)
 
(13.0
)
 
(15.2
)
 
(10.5
)
 
(48.9
)
 
(9.7
)
 
(14.4
)
 
(14.4
)
 
(12.7
)
 
(51.2
)
Interest income
(1.5
)
 
(1.4
)
 
(1.5
)
 
(2.0
)
 
(6.4
)
 
(1.5
)
 
(1.4
)
 
(1.3
)
 
(1.6
)
 
(5.8
)
Interest expense and finance charges
16.1

 
14.9

 
14.4

 
13.3

 
58.7

 
18.0

 
18.0

 
17.6

 
16.9

 
70.5

Other postretirement income
(2.6
)
 
(2.4
)
 
(2.4
)
 
(2.0
)
 
(9.4
)
 
(1.2
)
 
(1.4
)
 
(1.3
)
 
(1.2
)
 
(5.1
)
Earnings before income taxes and noncontrolling interest
331.7

 
314.7

 
282.7

 
266.8

 
1,195.9

 
285.9

 
297.3

 
274.0

 
206.4

 
1,063.6

Provision for income taxes
94.9

 
30.4

 
66.8

 
19.2

 
211.3

 
86.3

 
76.2

 
79.4

 
338.4

 
580.3

Net earnings (loss)
236.8

 
284.3

 
215.9

 
247.6

 
984.6

 
199.6

 
221.1

 
194.6

 
(132.0
)
 
483.3

Net earnings attributable to the noncontrolling interest, net of tax
11.7

 
12.5

 
12.1

 
17.6

 
53.9

 
10.4

 
9.1

 
9.7

 
14.2

 
43.4

Net earnings (loss) attributable to BorgWarner Inc. (a)
$
225.1

 
$
271.8

 
$
203.8

 
$
230.0

 
$
930.7

 
$
189.2

 
$
212.0

 
$
184.9

 
$
(146.2
)
 
$
439.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share — basic
$
1.07

 
$
1.30

 
$
0.98

 
$
1.11

 
$
4.47

 
$
0.89

 
$
1.01

 
$
0.88

 
$
(0.70
)
 
$
2.09

Earnings per share — diluted
$
1.07

 
$
1.30

 
$
0.98

 
$
1.10

 
$
4.44

 
$
0.89

 
$
1.00

 
$
0.88

 
$
(0.70
)
 
$
2.08


_______________
(a) The Company's results were impacted by the following:
•
Quarter ended December 31, 2018: The Company recorded an asset impairment expense of $25.6 million to adjust the net book value of the pipe and thermostat product lines to fair value. The Company recorded asbestos-related adjustments resulting in a net increase to Other Expense of $22.8 million. The Company recorded restructuring expense of $22.7 million primarily related to the Engine and Drivetrain segment actions designed to improve future profitability and competitiveness. The Company recorded a gain of $19.4 million related to the sale of a building at a manufacturing facility located in Europe. The Company also recorded merger and acquisition expense of $1.0 million primarily related to professional fees associated with divestiture activities for the non-core pipes and thermostat product line. The Company recorded reductions of income tax expense of $5.5 million related to restructuring expense, $0.1 million related to merger, acquisition and divestiture expense, $5.5 million related to asbestos-related adjustments, $7.7 million related to asset impairment expense, $0.4 million related to a decrease in our deferred tax liability due to the Company's ability to record a tax benefit for certain foreign tax credits available due to actions the Company took during the year, $9.1 million related to valuation allowance releases, $2.8 million related to tax reserve adjustments, and $18.5 million related to changes in accounting methods and tax filing positions for prior years primarily related to the Tax Act. Additionally, the Company recorded income tax expense of $5.8 million related to a gain on the sale of a building, $7.4 million related to adjustments to measurement period provisional estimates associated with the Tax Act and $0.4 million related to other expense.
•
Quarter ended September 30, 2018: The Company recorded restructuring expense of $5.7 million primarily related to the actions within its Engine segment designed to improve future profitability and competitiveness. The Company also recorded merger and acquisition expense of $1.6 million primarily related to professional fees associated with divestiture activities for the non-core pipes and thermostat product line. The Company recorded reductions of income tax expense of $1.3 million related to restructuring expense, $0.4 million related to other expense, $6.6 million related to adjustments to measurement period provisional estimates associated with the Tax Act, $0.5 million related to a decrease in our deferred tax liability due to the Company's ability to record a tax benefit for certain foreign tax credits available due to actions the Company took during the year, and $1.8 million related to other one-time tax adjustments, primarily due to changes in tax filing positions. Additionally, the Company recorded income tax expense of $0.1 million related to merger, acquisition and divestiture expense.
•
Quarter ended June 30, 2018: The Company recorded restructuring expense of $31.2 million primarily related to the initiation of actions within its emissions business in the Engine segment designed to improve future profitability and competitiveness. The Company also recorded merger and acquisition expense of $1.0 million primarily related to professional fees associated with divestiture activities for the non-core pipes and thermostat product line. The Company recorded reductions of income tax expenses of $7.6 million associated with restructuring expense, $13.4 million related to adjustments to measurement period provisional estimates associated with the Tax Act, $21.1 million related to a decrease in our deferred tax liability due to the Company's ability to record a tax benefit for certain foreign tax credits available due to actions the Company took in the second quarter, and $9.9 million related to other one-time tax adjustments.
•
Quarter ended March 31, 2018: The Company recorded restructuring expense of $7.5 million primarily related to Engine and Drivetrain segment actions designed to improve future profitability and competitiveness. The Company recorded a gain of approximately $4.0 million related to the settlement of a commercial contract for an entity acquired in the 2015 Remy acquisition. The Company also recorded merger and acquisition expense of $2.2 million primarily related to professional fees associated with divestiture activities for the non-core pipe product line. The Company recorded income tax expenses of $0.9 million and $0.4 million related to a commercial settlement gain and other one-time tax adjustments, and reductions of income tax expense of $0.6 million and $0.3 million which are associated with restructuring expense, and merger and acquisition expense.
•
Quarter ended December 31, 2017: The Company recorded an asset impairment expense of $71.0 million to adjust the net book value of the pipe and thermostat product lines to fair value. Additionally, the Company recorded restructuring expense of $45.2 million related to Drivetrain and Engine segment actions designed to improve future profitability and competitiveness. The Company also recorded merger and acquisition expense of $3.6 million. The Company recorded reduction of income tax expenses of $8.9 million, $0.7 million and $18.2 million related to the restructuring expense, merger and acquisition expense and asset impairment expense. The Company also recorded a tax expense of $7.9 million related to other one-time tax adjustments. Additionally, the Company recorded a tax expense of $273.5 million for the change in the tax law related to tax effects of the Tax Act.
•
Quarter ended September 30, 2017: The Company recorded restructuring expense of $13.3 million primarily related to the initiation of actions within its emissions business in the Engine segment designed to improve future profitability and competitiveness. The Company also recorded merger and acquisition expense of $6.4 million primarily related to the Sevcon transaction. The Company recorded reduction of income tax expenses of $1.2 million related to restructuring expense, $0.3 million merger and acquisition and $5.1 million related to other one-time tax adjustments.
•
Quarter ended June 30, 2017: The Company recorded a reduction of income tax expense of $3.2 million related to one-time tax adjustments, primarily resulting from tax audit settlements.
•
Quarter ended March 31, 2017: The Company recorded lease termination settlement of $5.3 million related to the termination of a long-term property lease in Europe. The Company recorded a tax expense of $3.4 million related to one-time tax adjustments.