<SUBMISSION>
<ACCESSION-NUMBER>0000950123-09-027003
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>10
<PERIOD>20090630
<FILING-DATE>20090729
<DATE-OF-FILING-DATE-CHANGE>20090729
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BORGWARNER INC
<CIK>0000908255
<ASSIGNED-SIC>3714
<IRS-NUMBER>133404508
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-12162
<FILM-NUMBER>09970522
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3850 HAMLIN RD.
<CITY>AUBURN HILLS
<STATE>MI
<ZIP>48326
<PHONE>2487549200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3850 HAMLIN RD.
<CITY>AUBURN HILLS
<STATE>MI
<ZIP>48326
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BORG WARNER AUTOMOTIVE INC
<DATE-CHANGED>19930628
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>c52544e10vq.htm
<DESCRIPTION>10-Q
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vq</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 10-Q</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B><U>QUARTERLY REPORT</U></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(Mark One)
</DIV>


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><b>Quarterly Report Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
</TABLE>
</DIV>


<!-- xbrl,dc -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B>For the quarterly period ended <U>June&nbsp;30, 2009</U></B></DIV>
<!-- /xbrl,dc -->

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>OR</B></DIV>


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD><B>Transition Report Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>
Commission file number: <U>1-12162</U></B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">BORGWARNER INC.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">
(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">13-3404508</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">State or other jurisdiction of <BR>
Incorporation or organization
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">3850 Hamlin Road, Auburn Hills, Michigan
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">48326</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Registrant&#146;s telephone number, including area code: <U>(248)&nbsp;754-9200</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for
such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days.
</DIV>

<DIV align="center" style="font-size: 10pt">YES <FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NO <FONT face="Wingdings">&#111;</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule&nbsp;405 of Regulation&nbsp;S-T during the preceding 12&nbsp;months (or for such shorter period
that the registrant was required to submit and post such files).
</DIV>

<DIV align="center" style="font-size: 10pt">YES <FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NO <FONT face="Wingdings">&#111;</FONT></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act. (Check one):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Large accelerated filer
<FONT face="Wingdings">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">Non-accelerated filer <FONT face="Wingdings">&#111;</FONT><BR>
(Do not check if a smaller reporting company)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>Smaller reporting company
<FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of the
Exchange Act).
</DIV>

<DIV align="center" style="font-size: 10pt">YES <FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NO <FONT face="Wingdings">&#254;</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;30, 2009, the registrant had 116,653,717 shares of Common Stock outstanding.
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">









<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BORGWARNER INC.<BR>
FORM 10-Q<BR>
THREE MONTHS ENDED JUNE 30, 2009</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INDEX</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page No.</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">PART I. Financial Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Item&nbsp;1. Financial Statements (Unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#102">Condensed Consolidated Balance Sheets as of
June&nbsp;30, 2009 and December&nbsp;31, 2008</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#103">Condensed Consolidated Statements of Operations for
the three and six months ended June&nbsp;30, 2009 and 2008</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#104">Condensed Consolidated Statements of Cash Flows
for the six months ended June&nbsp;30, 2009 and 2008</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><A href="#105">Notes to Condensed Consolidated Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">Item&nbsp;2. Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">Item&nbsp;3. Quantitative and Qualitative Disclosures About Market Risk</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">Item&nbsp;4. Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">PART II. Other Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">Item&nbsp;1. Legal Proceedings</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">Item&nbsp;4. Submission of Matters to a Vote of Security Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">Item&nbsp;5. Other Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">Item&nbsp;6. Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">SIGNATURES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c52544exv31w1.htm">EX-31.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c52544exv31w2.htm">EX-31.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c52544exv32w1.htm">EX-32.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="bwa-20090630.xml">EX-101 INSTANCE DOCUMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="bwa-20090630.xsd">EX-101 SCHEMA DOCUMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="bwa-20090630_cal.xml">EX-101 CALCULATION LINKBASE DOCUMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="bwa-20090630_lab.xml">EX-101 LABELS LINKBASE DOCUMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="bwa-20090630_pre.xml">EX-101 PRESENTATION LINKBASE DOCUMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="bwa-20090630_def.xml">EX-101 DEFINITION LINKBASE DOCUMENT</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PART I. FINANCIAL INFORMATION</B></U>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BORGWARNER
INC. AND CONSOLIDATED SUBSIDIARIES</B></DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<!-- xbrl,bs -->
<DIV align="Center" style="font-size: 10pt; margin-top: 0pt"><B>CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)<BR>
<!-- xbrl,body -->
(millions of dollars)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="78%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">256.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">103.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Receivables, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">681.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inventories, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">451.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prepayments and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,394.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,308.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant &#038; equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,502.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,586.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments &#038; advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">232.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,057.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,052.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other non-current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">430.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,611.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,644.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">183.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current portion of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable and accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">889.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">923.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">985.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,250.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">766.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">459.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other non-current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retirement-related liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">473.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">543.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">303.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">353.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total other non-current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">776.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital in excess of par value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,028.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">977.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,141.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,200.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(85.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(81.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(87.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total BorgWarner Inc. stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,057.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,006.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,082.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,037.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,611.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,644.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>See accompanying Notes to Condensed Consolidated Financial Statements</B>
</DIV>
<!-- /xbrl,bs -->


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><B>BORGWARNER INC. AND CONSOLIDATED SUBSIDIARIES</B></DIV>

<DIV align="left">
<A name="103"></A>
</DIV>
<!-- xbrl,op -->
<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)<BR>
<!-- xbrl,body -->
(millions of dollars, except share and per share data)</B>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">916.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,516.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,735.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,015.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,237.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,539.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,453.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">562.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">315.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in affiliates&#146; earnings, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense and finance charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (loss)&nbsp;before income taxes and noncontrolling
interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision (benefit)&nbsp;for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to the noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings (loss)&nbsp;attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(35.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(42.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings (loss)&nbsp;per share &#151; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.31</TD>
    <TD nowrap>)<B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.37</TD>
    <TD nowrap>)<B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Earnings (loss)&nbsp;per share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.31</TD>
    <TD nowrap>)<B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.37</TD>
    <TD nowrap>)<B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average shares outstanding (thousands):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">116,564</TD>
    <TD nowrap><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">116,296</TD>
    <TD nowrap><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,426</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends declared per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<!-- /xbrl,op -->



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The Company had a loss for the quarter and six months ended June&nbsp;30, 2009.
As a result, diluted loss per share is the same as basic, as any dilutive
securities would reduce the loss per share. Therefore, diluted shares are
equal to basic shares outstanding for the three and six months ended June&nbsp;30,
2009.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>See accompanying Notes to Condensed Consolidated Financial Statements</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><B>BORGWARNER INC. AND CONSOLIDATED SUBSIDIARIES</B></DIV>

<DIV align="left">
<A name="104"></A>
</DIV>
<!-- xbrl,cf -->
<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)<BR>
<!-- xbrl,body -->
(millions of dollars)</B>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>OPERATING</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(40.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments to reconcile net earnings (loss)&nbsp;to net cash flows from operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cash charges (credits)&nbsp;to operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and tooling amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization of intangible assets and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restructuring expense, net of cash paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred income tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Convertible bond premium amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Equity in affiliates&#146; earnings, net of dividends received and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net earnings adjusted for non-cash charges to operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">349.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in assets and liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(110.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepayments and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other non-current assets and liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(38.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">267.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>INVESTING</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital expenditures, including tooling outlays</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(88.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(162.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net proceeds from asset disposals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments for business acquired, net of cash acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from sales of marketable securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(96.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(145.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>FINANCING</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Decrease in notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(87.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions to long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">381.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repayments of long-term debt, including current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(158.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment for purchase of bond hedge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from warrant issuance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reduction in accounts receivable securitization facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(50.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment for purchase of treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from interest rate swap termination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from stock options exercised, including the tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends paid to BorgWarner stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends paid to noncontrolling stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash provided by (used in) financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rate changes on cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase in cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">256.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">225.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SUPPLEMENTAL CASH FLOW INFORMATION</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash paid during the period for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cash financing transactions:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock performance plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>See accompanying Notes to Condensed Consolidated Financial Statements</B>
</DIV>
<!-- /xbrl,cf -->


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl,ns -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="LEFT" style="font-size: 10pt; margin-top: 6pt"><B>BORGWARNER INC. AND CONSOLIDATED SUBSIDIARIES</B></DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(UNAUDITED)</B>

</DIV>
<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(1)&nbsp;Basis of Presentation</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying unaudited consolidated financial statements of BorgWarner Inc. and Consolidated
Subsidiaries (the &#147;Company&#148;) have been prepared in accordance with accounting principles generally
accepted in the United States of America (&#147;GAAP&#148;) for interim financial information and with the
instructions to Form 10-Q and Rule&nbsp;10-01 of Regulation&nbsp;S-X. Accordingly, they do not include all
of the information and footnotes necessary for a comprehensive presentation of financial position,
results of operations and cash flow activity required by GAAP for complete financial statements.
In the opinion of management, all normal recurring adjustments necessary for a fair presentation of
results have been included. Operating results for the three and six months ended June&nbsp;30, 2009 are
not necessarily indicative of the results that may be expected for the year ending December&nbsp;31,
2009. The balance sheet as of December&nbsp;31, 2008 was derived from the audited financial statements
as of that date. For further information, refer to the consolidated financial statements and
footnotes thereto included in the Company&#146;s Annual Report on Form 10-K for the year ended December
31, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have reclassified certain 2008 amounts to conform to the presentation of our 2009 Condensed
Consolidated Statement of Operations. The financial statements should be read in conjunction with
the Company&#146;s Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2008. The
Company&#146;s presentation of the Condensed Consolidated Balance Sheets, Condensed Consolidated
Statements of Operations, Reporting Segments Note and Comprehensive Income (Loss) Note have been
adjusted to conform with the requirements of Statement of Financial Accounting Standard No.&nbsp;160,
Non-controlling Interest in Consolidated Financial Statements, (&#147;FAS 160&#148;). See Note 18 to the
Condensed Consolidated Financial Statements for more information regarding the Company&#146;s first
quarter 2009 adoption of FAS 160.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management makes estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities as of the date of the financial
statements and accompanying notes, as well as the amounts of revenues and expenses reported during
the periods covered by those financial statements and accompanying notes. Actual results could
differ from these estimates.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(2)&nbsp;Research and Development</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the Company&#146;s gross and net expenditures on research and development
(&#147;R&#038;D&#148;) activities:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross R&#038;D expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">71.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">138.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer reimbursements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net R&#038;D expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">115.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s net R&#038;D expenditures are included in the selling, general and administrative expenses
of the Condensed Consolidated Statements of Operations. Customer reimbursements are netted against
gross R&#038;D expenditures upon billing of services performed. The Company has contracts with several
customers
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">at the Company&#146;s various R&#038;D locations. No such contract exceeded $6&nbsp;million in any of
the periods presented.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(3)&nbsp;Income Taxes</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s provision for income taxes is normally based on an estimated tax rate for the year
applied to the year-to-date federal, state and foreign income. However, due to unprecedented
depressed global economic conditions there is significant uncertainty regarding industry production
volumes for the remainder of the year. This precludes us from making a reliable estimate of the
annual effective tax rate for the year. Accordingly, we have made our 2009 income tax provision
pursuant to Financial Accounting Standards Board (&#147;FASB&#148;) Interpretation No.&nbsp;18, Accounting for
Income Taxes in Interim Periods, which provides that tax (or benefit) in each foreign jurisdiction
that is not subject to a valuation allowance be separately computed as ordinary income/(loss)
occurs within the jurisdiction for the quarter. The actual global effective tax rate for the six
months is calculated to be a benefit of 39%, which resulted in a 36% tax rate (benefit)&nbsp;for the
second quarter. This represents an income tax benefit of ($25.7) million on the loss of ($65.9)
million for the first six months of 2009. It results in a ($19.1) million benefit on the loss of
($53.0) million for the second quarter of 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2009, the balance of gross unrecognized tax benefits was $61.2&nbsp;million. Included in
the balance at June&nbsp;30, 2009 was $50.9&nbsp;million of tax positions that are permanent in nature and,
if recognized, would reduce the global effective tax rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2008, the Company made a $6.6&nbsp;million cash payment to the Internal
Revenue Service (&#147;IRS&#148;) to resolve agreed upon issues of the ongoing IRS examination of the
Company&#146;s 2002-2004 tax years. Also, there was a reduction in the first quarter of 2008 of $6.7
million related to the Company&#146;s unrecognized tax benefits balance due to settlement of the agreed
upon issues primarily related to the Extraterritorial Income Exclusion for the 2002-2004 tax years.
The Company is currently in the process of settling the disputed issues with appeals related to
the 2002-2004 IRS audit. Upon settlement of the IRS audits related to the periods 2002-2004, the
gross unrecognized tax benefits balance will be reevaluated. Possible changes related to other
examinations cannot be reasonably estimated within the next 12&nbsp;months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognizes interest and penalties related to unrecognized tax benefits in income tax
expense. The Company had accrued approximately $11.4&nbsp;million for the payment of interest and
penalties at December&nbsp;31, 2008. The Company had approximately $12.3&nbsp;million for the payment of
interest and penalties accrued at June&nbsp;30, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction,
and various states and foreign jurisdictions. The Company is no longer subject to income tax
examinations by tax authorities in its major tax jurisdictions as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Years No Longer</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Tax Jurisdiction</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Subject to Audit</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Federal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>2001 and prior</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brazil</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2002 and prior</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">France</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006 and prior</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Germany</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2002 and prior</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hungary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2004 and prior</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Italy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2002 and prior</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Japan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006 and prior</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">South Korea</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2004 and prior</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United Kingdom</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006 and prior</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In certain tax jurisdictions the Company may have more than one taxpayer. The table above reflects
the
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">status of
the major taxpayer in each major tax jurisdiction.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(4)&nbsp;Sales of Receivables</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company securitized and sold certain receivables through third party financial institutions
without recourse. The amount sold would vary each month based on the amount of underlying
receivables. The maximum size of the facility was set at $50&nbsp;million since fourth quarter of 2003.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;24, 2009 the Company&#146;s $50&nbsp;million receivables securitization facility matured and was not
renewed. The impact of this maturity was an increase in receivables of $50&nbsp;million and a decrease
in cash of $50&nbsp;million in the second quarter of 2009. This is reflected as a Financing activity in
the Condensed Consolidated Statements of Cash Flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the six-month periods ended June&nbsp;30, 2009 and 2008, total cash proceeds from sales of
accounts receivable were $200&nbsp;million and $300&nbsp;million, respectively. The Company paid servicing
fees related to these receivables for the three and six months ended June&nbsp;30, 2009 and 2008 of $0.1
million and $0.4&nbsp;million and $0.4&nbsp;million and $1.0&nbsp;million, respectively. These amounts are
recorded in interest expense and finance charges in the Condensed Consolidated Statements of
Operations.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(5)&nbsp;Inventories</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Inventories are valued at the lower of cost or market. The cost of U.S. inventories is determined
by the last-in, first-out (&#147;LIFO&#148;) method, while the operations outside the U.S. use the first-in,
first-out (&#147;FIFO&#148;) or average-cost methods. Inventories consisted of the following:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="78%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Raw material and supplies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">190.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">260.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Work in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finished goods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FIFO inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">467.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIFO reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">313.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">451.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(6)&nbsp;Property, Plant &#038; Equipment</B>
</DIV>
<!-- xbrl,body -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="78%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land and buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">624.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">619.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Machinery and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,745.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,756.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Construction in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total property, plant &#038; equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,521.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,537.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less accumulated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,104.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,047.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,416.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,489.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tooling, net of amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Property, plant &#038; equipment &#151; net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,502.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,586.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest costs capitalized during the six-month periods ended June&nbsp;30, 2009 and June&nbsp;30, 2008 were
$5.4 million and $5.5&nbsp;million, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2009 and December&nbsp;31, 2008, accounts payable of $28.7&nbsp;million and $43.2&nbsp;million,
respectively, were related to property, plant and equipment purchases.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2009 and December&nbsp;31, 2008, specific assets of $3.6&nbsp;million and $7.4&nbsp;million,
respectively, were pledged as collateral under certain of the Company&#146;s long-term debt agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result of the impairment charges recorded in the third and fourth quarters of 2008,
depreciation expense for the three and six months ended June&nbsp;30, 2009 was reduced by approximately
$3&nbsp;million and $6&nbsp;million, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2009, based on current market conditions and asset utilization rates,
the Company elected to extend the useful lives of certain machinery and equipment. As a result of
this change in estimate, depreciation expense for the three and six months ended June&nbsp;30, 2009 was
reduced by approximately $5&nbsp;million and $9&nbsp;million, respectively.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(7)&nbsp;Product Warranty</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company provides warranties on some of its products. The warranty terms are typically from one
to three years. Provisions for estimated expenses related to product warranty are made at the time
products are sold. These estimates are established using historical information about the nature,
frequency, and average cost of warranty claims. Management actively studies trends of warranty
claims and takes action to improve product quality and minimize warranty claims. While management
believes that the warranty accrual is appropriate, actual claims incurred could differ from the
original estimates, requiring adjustments to the accrual. The accrual is recorded in both
long-term and short-term liabilities on the balance sheet. The following table summarizes the
activity in the warranty accrual accounts:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">82.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">70.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Ending balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The product warranty liability is classified in the consolidated balance sheet as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&#160;&#160;&#160;&#160;&#160;June 30,&#160;&#160;&#160;&#160;&#160;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable and accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other non-current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total product warranty liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">82.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(8)&nbsp;Notes Payable and Long-Term Debt</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Following is a summary of notes payable and long-term debt, including the current portion. The
weighted average interest rate on all borrowings outstanding as of June&nbsp;30, 2009 and December&nbsp;31,
2008 was 6.0% and 5.0%, respectively.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>December 31, 2008</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Current</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Long-Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Current</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Long-Term</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank borrowings and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">51.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">130.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Term loans due through 2015 (at an average rate of
4.1% in 2009 and 4.9% in 2008)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.50% Senior Notes due 2/17/09, net of unamortized
discount (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.50% Convertible Notes due 4/15/12, net of
unamortized discount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">321.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.75% Senior Notes due 11/01/16, net of
unamortized discount (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.00% Senior Notes due 10/01/19, net of
unamortized discount (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.125% Senior Notes due 02/15/29, net of
unamortized discount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Carrying amount of notes payable and long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">733.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impact of derivatives on debt (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total notes payable and long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">95.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">766.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">320.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">459.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>In 2006, the Company entered into several interest rate swaps that
had the effect of converting $325.0&nbsp;million of fixed rate notes to variable
rates. The weighted average effective interest rate of these borrowings,
including the effects of outstanding swaps as noted in Note 10 was 5.3% as of
December&nbsp;31, 2008. In the first quarter of 2009, $100&nbsp;million in interest rate
swaps related to the Company&#146;s 2009 fixed rate debt matured and the Company
terminated $150&nbsp;million in interest rate swap agreements related to the
Company&#146;s 2016 fixed rate debt and $75&nbsp;million of interest rate swap agreements
related to the Company&#146;s 2019 fixed rate debt. As a result of the first
quarter 2009 swap terminations, a $34.5&nbsp;million gain remained in debt to be
amortized over the remaining lives of the respective 2016 and 2019 debt. As of
June&nbsp;30, 2009, the unamortized portion was $33.2&nbsp;million.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a multi-currency revolving credit facility, which provided for borrowings up
to $600&nbsp;million through July&nbsp;22, 2009. On April&nbsp;30, 2009, the Company extended its revolving
credit facility for 18&nbsp;months, maturing January&nbsp;22, 2011. The facility was reduced to $250&nbsp;million
beginning July&nbsp;23, 2009. The facility is now secured by unperfected pledges of the Company&#146;s
equity interests in its subsidiaries and certain assets. No secured party is entitled to perfect
its lien on any of the collateral until the long term unsecured senior, non-credit enhanced debt
rating of the Company is less than or equal to BB&#043; by Standard &#038; Poor&#146;s and less than or equal to
Ba1 by Moody&#146;s. The Company&#146;s credit rating as of June&nbsp;30, 2009 was BBB by Standard &#038;
Poor&#146;s and Ba1 by Moody&#146;s. The three key covenants of the credit agreement are a net worth test, a
debt compared to EBITDA (&#147;Earnings Before Interest, Taxes, Depreciation and Amortization&#148;) test,
and an interest coverage test. The Company was in compliance with all covenants at June&nbsp;30, 2009
and expects to remain compliant in future periods. At June&nbsp;30, 2009 and December&nbsp;31, 2008 there
were no outstanding borrowings under the facility.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s 6.5% Senior Notes of $136.7&nbsp;million matured on February&nbsp;17, 2009. The Company had
outstanding letters of credit at June&nbsp;30, 2009 and December&nbsp;31, 2008 of $15.2&nbsp;million and $21.4
million, respectively. The letters of credit typically act as a guarantee of payment to certain
third parties in
accordance with specified terms and conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;9, 2009, the Company issued $373.8&nbsp;million in convertible senior notes due April&nbsp;15, 2012.
Under FASB Staff Position No.&nbsp;APB 14-1, Accounting for Convertible Debt Instruments That May be
Settled in Cash Upon Conversion (Including Partial Cash Settlement) (&#147;FSP APB 14-1&#148;), the Company
must account for the convertible senior notes by bifurcating the instrument between their liability
and equity components. The value of the debt component is based on the fair value of issuing a
similar nonconvertible debt security. The equity component of the convertible debt security is
calculated by deducting the value of the liability from the proceeds received at issuance.
Therefore, the Company&#146;s June&nbsp;30, 2009 Condensed Consolidated Balance Sheet includes an increase in
debt of $321.7&nbsp;million and an increase in capital in excess of par
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of $34.6&nbsp;million. Additionally,
FSP APB 14-1 requires us to accrete the discounted carrying value of the convertible notes to their
face value over the term of the notes. The Company&#146;s interest expense associated with this bond
accretion is based on the effective interest rate of the convertible senior notes of 9.365%. The
total interest expense related to the convertible notes in the Company&#146;s Consolidated Statement of
Operations was $7.4&nbsp;million for the second quarter, of which $4.2&nbsp;million was non-cash. For the
full year of 2009, interest expense related to the convertible notes will be approximately $22.5
million, of which approximately $12.8&nbsp;million will be non-cash. The notes will pay interest
semi-annually of $6.5&nbsp;million, which is at a coupon rate of 3.50% per year, beginning in October of
this year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Holders of the notes may convert their notes at their option at any time prior to the close of
business on the second scheduled trading day immediately preceding the maturity date of the notes,
in multiples of $1,000 principal amount. The initial conversion rate for the notes is 30.4706
shares of the Company&#146;s common stock per $1,000 principal amount of notes (representing an initial
conversion price of approximately $32.82 per share of common stock). The conversion price
represents a conversion premium of 27.5% over the last reported sale price of the Company&#146;s common
stock on the New York Stock Exchange on April&nbsp;6, 2009, of $25.74 per share. As of June&nbsp;30, 2009,
the if-converted value of the 3.50% Convertible Senior Notes was approximately $15.2&nbsp;million. In
conjunction with the note offering, the Company entered into a bond hedge overlay at a net pre-tax
cost of $25.2&nbsp;million, effectively raising the conversion premium to 50.0%, or approximately $38.61
per share. Upon conversion, the Company will pay or deliver cash, shares of our common stock or a
combination thereof at our election. The convertible senior notes were issued under the Company&#146;s
$750&nbsp;million universal shelf registration filed with the Securities and Exchange Commission,
leaving approximately $376&nbsp;million available as of June&nbsp;30, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2009 and December&nbsp;31, 2008, the estimated fair values of the Company&#146;s senior
unsecured notes totaled $743.1&nbsp;million and $532.3&nbsp;million, respectively. The estimated fair values
were $19.1&nbsp;million higher at June&nbsp;30, 2009 and $6.7&nbsp;million lower at December&nbsp;31, 2008 than their
respective carrying values. Fair market values are developed by the use of estimates obtained from
brokers and other appropriate valuation techniques based on information available as of quarter-end
and year-end. The fair value estimates do not necessarily reflect the values the Company could
realize in the current markets.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(9)&nbsp;Fair Value Measurements</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;1, 2009, the Company fully adopted as required, Statement of Financial Accounting
Standards No.&nbsp;157 &#150; &#147;Fair Value Measurements&#148; (&#147;SFAS 157&#148;) which expands the disclosure of fair
value measurements and its impact on the Company&#146;s financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Statement No.&nbsp;157 emphasizes that fair value is a market-based measurement, not an entity specific
measurement. Therefore, a fair value measurement should be determined based on assumptions that
market participants would use in pricing an asset or liability. As a basis for considering market
participant assumptions in fair value measurements, SFAS 157 establishes a fair value hierarchy,
which prioritizes the inputs used in measuring fair values as follows:
</DIV>



<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 1:</TD>
    <TD>&nbsp;</TD>
    <TD>Observable inputs such as quoted prices in active markets;</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 2:</TD>
    <TD>&nbsp;</TD>
    <TD>Inputs, other than quoted prices in active markets, that are
observable either directly or indirectly; and</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 3:</TD>
    <TD>&nbsp;</TD>
    <TD>Unobservable inputs in which there is little or no market data,
which require the reporting entity to develop its own
assumptions.</TD>
</TR>
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assets and liabilities measured at fair value are based on one or more of the following three
valuation
techniques noted in SFAS 157:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Market approach: Prices and other relevant information generated
by market transactions involving identical or comparable assets or liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cost approach: Amount that would be required to replace the
service capacity of an asset (replacement cost).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Income approach: Techniques to convert future amounts to a single
present amount based upon market expectations (including present value
techniques, option-pricing and excess earnings models).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table classifies the assets and liabilities measured at fair value during the period
ended June&nbsp;30, 2009:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Basis of Fair Value Measurements</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Quoted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Prices in</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Active</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Significant</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Markets for</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Observable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unobservable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Identical Items</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000"><B>Inputs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Valuation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 3)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Technique</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commodity contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">B</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commodity contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment hedge contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The change in the fair value of the Company&#146;s net fixed assets impaired in 2009 is as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fair Value<BR>
 Measurements<BR>
Using Significant</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Unobservable <BR>
Inputs</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(Level 3)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net book value prior to impairment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Asset impairment charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(36.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net book value after impairment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(10)&nbsp;Financial Instruments</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;1, 2009, the Company adopted as required, Statement of Financial Accounting Standards
No.&nbsp;161, &#147;Disclosures about Derivative Instruments and Hedging Activities&#148; (&#147;SFAS 161&#148;) which
expands the disclosure of financial instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s financial instruments include cash, marketable securities, trade receivables, trade
payables, and notes payable. Due to the short-term nature of these instruments, their book value
approximates their fair value. The Company&#146;s financial instruments also include long-term debt,
interest rate and currency swaps, commodity forward contracts, and foreign currency forward
contracts. All derivative contracts are
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">placed with counterparties that have an S&#038;P, or
equivalent, investment grade credit rating at the time of the contracts&#146; placement. At June&nbsp;30,
2009 the Company had no derivative contracts that contained credit risk related contingent
features.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company selectively uses cross-currency swaps to hedge the foreign currency exposure associated
with our net investment in certain foreign operations (net investment hedges). Fair values of
cross currency swaps are based on observable inputs, such as interest rate, yield curves, credit
risks, currency exchange rates and other external valuation methodology (Level 2 inputs under SFAS
157).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company uses certain commodity derivative instruments to protect against commodity price
changes related to forecasted raw material and supplies purchases. The primary purpose of our
commodity price hedging activities is to manage the volatility associated with these forecasted
purchases. The Company primarily utilizes forward and option contracts, which are designated as
cash flow hedges. The fair values for certain commodity derivative instruments are based on
Level 2 evidence (for example, future prices reported on commodity exchanges) under SFAS 157.
To the extent that derivative instruments are deemed to be effective as defined by FAS 133,
gains and losses arising from these contracts are deferred in other comprehensive income or
loss. Such gains and losses will be reclassified into income as the underlying operating
transactions are realized. Gains and losses not qualifying for deferral treatment have been
credited/charged to income as they are recognized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company uses foreign exchange forward and option contracts to protect against exchange rate
movements for forecasted cash flows for purchases, operating expenses or sales transactions
designated in currencies other than the functional currency of the operating unit. Most
contracts mature in less than one year, however, certain long-term commitments are covered by
forward currency arrangements to protect against currency risk through 2011. Foreign currency
contracts require the Company, at a future date, to either buy or sell foreign currency in
exchange for the operating units&#146; local currency. To the extent that derivative instruments are
deemed to be effective as defined by FAS 133, gains and losses arising from these contracts are
deferred in other comprehensive income or loss. Such gains and losses will be reclassified into
income as the underlying operating transactions are realized. Gains and losses not qualifying
for deferral treatment have been credited/charged to income as they are recognized. The fair
values of foreign exchange forward and option contracts are based on Level 2 inputs under SFAS
157, such as quoted exchange rates by various exchanges.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2006, the Company entered into a series of interest rate swap agreements to effectively convert
a portion of its senior notes from fixed to variable interest rates and were designated as fair
value hedges for the senior notes. In the first quarter of 2009, $100&nbsp;million of interest rate
swap agreements relating to the 2009 fixed-rate debt
matured. Also, in the first quarter of 2009, the Company terminated $150&nbsp;million of interest rate
swap agreements relating to the 2016 fixed rate debt and $75&nbsp;million of interest rate swap
agreements relating to the 2019 fixed rate debt. The early termination of the 2016 and 2019
interest rate swap agreements resulted in a gain of $34.5&nbsp;million that will be amortized as a
reduction of interest expense over the remaining life of the respective 2016 and 2019 debt. The
Company recognized $5.7&nbsp;million in interest expense in the first quarter of 2009 as a result of the
early termination. This early termination also resulted in the Company receiving net cash
proceeds of $30.0&nbsp;million, which is recognized in the Financing section of the Condensed Consolidated Statement of Cash Flows. As of June&nbsp;30, 2009, there were no outstanding interest rate swap
agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effectiveness for cash flow, fair value and net investment hedges is assessed at the inception of
the hedging relationship and quarterly, thereafter. Ineffectiveness is measured quarterly and
results are recognized in earnings.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company selectively uses cross-currency swaps to hedge the foreign currency exposure associated
with our net investment in certain foreign operations (net investment hedges). At June&nbsp;30, 2009
the following cross-currency swaps were outstanding:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Cross-Currency Swaps</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notional</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notional</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>in  USD</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>in Local Currency</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Duration</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Floating $ to Floating <FONT face="'Times New Roman',times,serif">&#128;</FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">75.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT face="'Times New Roman',times,serif">&#128;</FONT></TD>
    <TD align="right">58.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nov - 16</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Floating $ to Floating &#165;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#165;</TD>
    <TD align="right">17,581.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Oct - 19</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2009 the following commodity derivative contracts were outstanding:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Commodity Hedges</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Units of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Commodity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hedged</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Measure</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Duration</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nickel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP colspan="3" valign="top" align="center">Metric Tons&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 10</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Copper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,432</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">Metric Tons</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 10</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aluminum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">Metric Tons</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 10</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Platinum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">Troy Oz.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Natural Gas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">334,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">MMBtu</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 10</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2009 the following foreign exchange derivative contracts were outstanding:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(millions)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD nowrap width="12%" align="center" valign="top">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Currency Hedges</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Functional</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Traded</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notional in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Currency</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-bottom: 1px solid #000000"><B>Currency</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Traded Currency</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Duration</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brazilian Real</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">US Dollar</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">British Pound</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Euro</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 11</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Hungarian Forint</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,712.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 10</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">British Pound</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">US Dollar</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Japanese Yen</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,348.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indian Rupee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">US Dollar</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 11</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Korean Won</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Euro</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 10</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Korean Won</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Japanese Yen</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">574.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mexican Peso</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">US Dollar</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">US Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Indian Rupee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">511.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 11</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">US Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Euro</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Jul - 09</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">US Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Japanese Yen</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Dec - 09</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2009 the following amounts were recorded in the Company&#146;s balance sheet as being
payable to or receivable from counterparties.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="5">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="5">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Derivatives Designated as Hedging</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="5" style="border-bottom: 1px solid #000000"><B>Liabilities</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">
<B>Instruments under</B> <B>Statement 133 </B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign Exchange Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Prepayments and Other Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Accounts Payable and Accrued Expenses</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">$</TD>
    <TD align="right" valign="top">18.1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Non-Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Non-Current Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commodity Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prepayments and Other Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounts Payable and Accrued Expenses</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.6</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Non-Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Non-Current Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Investment Hedges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prepayments and Other Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounts Payable and Accrued Expenses</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Non-Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Non-Current Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43.4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Netted in the $43.4&nbsp;million carrying value of the Net Investment Hedges is a $4.3&nbsp;million favorable
adjustment for non-performance risk in accordance with FAS 157.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows deferred losses at the end of the period reported in other comprehensive
income (loss) (OCI)&nbsp;and amounts expected to be reclassified to income or loss within the next
twelve months. The loss expected to be reclassified to income or loss in one year or less assumes
no change in the current relationship of the hedged item and June&nbsp;30, 2009 market rates.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gain/(Loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Gain/(Loss) Expected to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in OCI at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>be Reclassified to Income</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Contract Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>in One Year or Less</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(17.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(9.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commodity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Investment Hedges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.5</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following tables represent gains (losses)&nbsp;related to hedge transactions for the three and six
months ended June&nbsp;30, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash Flow hedges held during the period resulted in the following gains and losses recorded in
income. The effective portion of gains or losses exactly offset losses or gains in the underlying
transaction that they were designated to hedge, and are recorded on the same line in the income
statement. Ineffectiveness resulting from imperfect matches between changes in value of hedge
contracts and changes in value of the underlying transaction are immediately recognized in
earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><B>Derivatives Designated as Cash Flow Hedging Instruments under Statement 133</B></u></div>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Gain/(Loss) Reclassified</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Gain/(Loss)</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">from OCI to Income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Recognized in Income</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">(Effective Portion)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">(Ineffective Portion)</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Contract Type</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="LEFT" style="border-bottom: 1px solid #000000">Location</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="LEFT" style="border-bottom: 1px solid #000000">Location</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sales</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(8.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>SG&#038;A Expense</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">(1.9</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">(1.3</TD>
    <TD nowrap valign="top">)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Cost of Goods Sold</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SG&#038;A Expense</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0.8</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SG&#038;A Expense</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SG&#038;A Expense</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&#151;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commodity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cost of Goods Sold</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Cost of Goods Sold</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1.4</TD>
    <TD nowrap valign="top">)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net investment hedges are derivative contracts entered into to hedge against changes in exchange
rates that affect the overall value of net investments in foreign entities. Gains and losses on net
investment hedges are recorded in other comprehensive income or loss and are used to offset
equivalent losses or gains in the value of net investments that are recorded in translation gains
and losses which is also a component of other comprehensive income or loss.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><u><B>Derivatives Designated as Net Investment Hedges under Statement 133</B></u>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Gain/(Loss) Reclassified</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Gain/(Loss) Recognized</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">from OCI to Income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">in Income</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">(Effective Portion)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">(Ineffective Portion)</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Contract Type</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Location</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="LEFT" style="border-bottom: 1px solid #000000">Location</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cross-Currency Swap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(None)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Interest Expense</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">6.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">0.9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company may also enter into derivative contracts that are not designated as hedging instruments
as defined by FAS 133. Undesignated derivative instruments substantially pertain to foreign
exchange contracts that are used to offset the impact of foreign currency denominated assets and
liabilities. The company does not apply hedge accounting because the gain (loss)&nbsp;on the derivative
contract is generally offset by the SFAS No.&nbsp;52, &#147;Foreign Currency Translation,&#148; (SFAS No.&nbsp;52)
remeasurement gain (loss)&nbsp;of the foreign currency asset or liability in the same reporting period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><u><B>Derivatives Not Designated as Hedging Instruments under Statement 133</B></u>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="14%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Loss) Recorded in</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Income on Derivative</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Contract Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>SG&#038;A Expense</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right">(0.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right">(1.8</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2009 derivative instruments that are designated as fair value hedging instruments as
defined by FAS 133 were immaterial.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(11)&nbsp;Retirement Benefit Plans</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a number of defined benefit pension plans and other post employment benefit plans
covering eligible salaried and hourly employees and their dependents. The other post employment
benefit plans, which provide medical and life insurance benefits, are unfunded plans. The estimated
contributions to the Company&#146;s defined benefit pension plans for 2009 range from $15 to $35
million, of which $6.7&nbsp;million has been contributed through the first six months of the year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;26, 2009, the Company&#146;s subsidiary, BorgWarner Diversified Transmission Products Inc.
(&#147;DTP&#148;), entered into a Plant Shutdown Agreement with the United Auto Workers (&#147;UAW&#148;) for its
Muncie, Indiana automotive component plant (the &#147;Muncie Plant&#148;). Management subsequently wound-down
production activity at the plant, with operations effectively ceased as of March&nbsp;31, 2009. As a
result of the closure of the Muncie Plant, the Company recorded a curtailment gain of $41.9&nbsp;million
in the first quarter of 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Plant Shutdown Agreement with the UAW for the Muncie Plant also included a settlement of a
portion of the UAW retiree health care obligation, resulting in the remeasurement of the retiree
medical plan. The financial impact of this settlement resulted in expense recognition of $14.0
million, a $47.2&nbsp;million reduction to retirement-related liabilities, a $27.2&nbsp;million increase in
accumulated other comprehensive income and a $34.0&nbsp;million increase in accounts payable and accrued
expenses in the first quarter of 2009. The $34.0&nbsp;million in accounts payable and accrued expenses
will be paid in monthly installments, which began in May&nbsp;2009 and will conclude in April&nbsp;2010.
With the plant closing announcement, the Company has entered into discussions with the Pension
Benefit Guaranty Corporation regarding potential funding of the Muncie Plant&#146;s defined benefit
pension plan.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The combined pre-tax impact of these actions was a net gain of $27.9&nbsp;million, comprised of a $41.9
million curtailment gain and $14.0&nbsp;million settlement loss on the Company&#146;s Condensed Consolidated
Statements of Operations as of March&nbsp;31, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The weighted average discount rate used to determine the benefit obligation of the Company&#146;s
retiree medical plan as of March&nbsp;31, 2009 was 8.00%. This represents a 100 basis point increase
from the 7.00% weighted average discount rate used at year-end 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the Company announced its plan to freeze its defined benefit plan at its Bradford
plant in the United Kingdom in consultation with affected employees and their representatives. The
effect of this change is expected to be that participants in the Bradford defined benefit plan will
cease to accrue defined benefits after October&nbsp;1, 2009. Future pension benefits will be earned
within an existing defined contribution plan going forward. The financial impact of this change
was a $3.7&nbsp;million reduction to retirement-related liabilities, a $3.5 increase in accumulated
other comprehensive income and $0.2&nbsp;million in income recognition in the second quarter of 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The weighted average discount rate used to determine the benefit obligation of the Company&#146;s
Bradford
defined benefit plan as of June&nbsp;30, 2009 was 6.50%. This represents a 25 basis point increase from
the 6.25% weighted average discount rate used at year-end 2008.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The components of net periodic benefit cost recorded in the Company&#146;s Condensed Consolidated
Statements of Operations are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Other post</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Pension benefits</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>employment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Three months ended June 30,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>benefits</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">US</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Non-US</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">US</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Non-US</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2008</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px"><B>Components of net periodic
benefit cost:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settlement/Curtailment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of unrecognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">prior service benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of unrecognized loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net periodic benefit cost (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Other post</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Pension benefits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>employment</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Six months ended June 30,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>benefits</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">US</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non-US</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">US</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Non-US</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px"><B>Components of net periodic
benefit cost:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected return on plan assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settlement/Curtailment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61.9</TD>
    <TD nowrap>)*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of unrecognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">prior service benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortization of unrecognized loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net periodic benefit cost (benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(56.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD>Note: In the six months ended June&nbsp;30, 2009 table above, the settlement/curtailment of $61.9
million was offset by the $34.0&nbsp;million cost to settle, resulting in a net pre-tax gain of $27.9
million.</TD>
</TR>

</TABLE>



<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(12)&nbsp;Stock-Based Compensation</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Company&#146;s 1993 Stock Incentive Plan (&#147;1993 Plan&#148;), the Company granted options to
purchase shares of the Company&#146;s common stock at the fair market value on the date of grant. The
options vest over periods up to three years and have a term of ten years from date of grant. As of
December&nbsp;31, 2003, there were no options available for future grants under the 1993 Plan. The 1993
Plan expired at the end of 2003
and was replaced by the Company&#146;s 2004 Stock Incentive Plan, which was amended at the Company&#146;s
2009 Annual Stockholders Meeting, among other things, to increase the number of shares available
for issuance under the Plan. Under the BorgWarner Inc. Amended and Restated 2004 Stock Incentive
Plan (&#147;2004 Stock Incentive Plan&#148;), the number of shares authorized for grant was 12,500,000, of
which approximately 2,700,000 shares are available for future issuance. As of June&nbsp;30, 2009, there
were a total of 5,462,118 outstanding options under the 1993 and 2004 Stock Incentive Plans.

</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Stock option compensation expense reduced income before income taxes and net earnings for the three months ended June&nbsp;30, 2009 and 2008 by $2.4&nbsp;million and $1.9&nbsp;million ($0.02 per basic and diluted
share) and by $3.5&nbsp;million and $2.7&nbsp;million ($0.02 per basic and diluted share), respectively.
Stock option compensation expense reduced income before income taxes and net earnings for the six
months ended June&nbsp;30, 2009 and 2008 by $4.1&nbsp;million and $3.2&nbsp;million ($0.03 per basic and diluted
share) and by $7.1&nbsp;million and $5.3&nbsp;million ($0.05 and $0.04 per basic and diluted shares,
respectively). Stock option compensation expense affected both operating activities ($4.1&nbsp;million
and $7.1&nbsp;million non-cash charge backs) and financing activities ($0.9&nbsp;million and $1.8&nbsp;million tax
benefits) of the Condensed Consolidated Statements of Cash Flows for the six months ended June&nbsp;30,
2009 and 2008, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Total unrecognized compensation cost related to nonvested stock options at June&nbsp;30, 2009 was
approximately $3.5&nbsp;million. This cost is expected to be recognized over the next 0.6&nbsp;years. On a
weighted average basis, this cost is expected to be recognized over 0.3&nbsp;years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the plans&#146; shares under option as of and for the six months ended June&nbsp;30, 2009 is as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Under</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Remaining</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Intrinsic</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contractual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Life (in years)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(in millions)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(195</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(119</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(48</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options exercisable at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At its November&nbsp;2007 meeting, our Compensation Committee decided that restricted common stock would
be awarded in place of stock options for long-term incentive award grants to employees. These
restricted shares for employees vest fifty percent after two years and the remainder after three
years from the date of grant. The Company also grants restricted common stock to its non-employee
directors. For non-employee directors restricted shares vest ratably on the anniversary of the
date of the grant over a period of three years. The market value of the Company&#146;s restricted common
stock at the date of grant determines the value of the
restricted common stock. In February&nbsp;2009, 1,000,643 restricted shares were granted to employees
under the 2004 Stock Incentive Plan. The value of the awards is recorded as unearned compensation
within capital in excess of par value in stockholders&#146; equity, and is amortized as compensation
expense over the restriction periods. The Company recognized compensation expense related to
restricted common stock of $4.0&nbsp;million and $2.6&nbsp;million for the three months ended June&nbsp;30, 2009
and 2008, respectively and $7.7&nbsp;million and $4.6&nbsp;million for the six months ended June&nbsp;30, 2009 and
2008, respectively.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the status of the Company&#146;s nonvested restricted stock as of and for the six months
ended June&nbsp;30, 2009 is as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Subject to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Restriction</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>(thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonvested at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">661.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37.73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonvested at March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,638.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Lapsed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonvested at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,637.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29.92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In calculating earnings or loss per share, earnings or loss are the same for the basic and diluted
calculations. Shares increased for diluted earnings per share for the three and six months ended
June&nbsp;30, 2008 by 2,132,000 and 2,178,000, respectively due to the effects of stock options issued
and issuable and restricted shares issued under the 1993 Plan and 2004 Stock Incentive Plan. There
was no dilutive impact to the weighted average shares outstanding for the three and six months
ended June&nbsp;30, 2009 due to the Company&#146;s net loss.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(13)&nbsp;Comprehensive Income</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amounts presented as changes in accumulated other comprehensive income, net of related taxes,
are added to net earnings (loss)&nbsp;resulting in comprehensive income. The following table summarizes
the components of comprehensive income on an after-tax basis for the three and six month periods
ended June&nbsp;30, 2009 and 2008.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value change in hedge instruments, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Defined benefit post employment plans, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bond hedge on 3.50% convertible notes, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(36.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(36.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Warrant on 3.50% convertible notes, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized
gain (loss) on available-for-sale securities, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in accumulated other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings (loss)&nbsp;attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income (loss)&nbsp;attributable to the
noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Comprehensive income attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">91.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">266.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(14)&nbsp;Contingencies</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the normal course of business the Company and its subsidiaries are parties to various commercial
and legal claims, actions and complaints, including matters involving warranty claims, intellectual
property claims, general liability and various other risks. It is not possible to predict with
certainty whether or not the Company and its subsidiaries will ultimately be successful in any of
these commercial and legal matters or,
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">if not, what the impact might be. The Company&#146;s
environmental and product liability contingencies are discussed separately below. The Company&#146;s
management does not expect that the results in any of these commercial and legal claims, actions
and complaints will have a material adverse effect on the Company&#146;s results of operations,
financial position or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Litigation </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In January&nbsp;2006, DTP, a subsidiary of the Company, filed a declaratory judgment action in United
States District Court, Southern District of Indiana (Indianapolis Division) against the United
Automobile, Aerospace, and Agricultural Implements Workers of America (&#147;UAW&#148;) Local No.&nbsp;287 and
Gerald Poor, individually and as the representative of a defendant class. DTP sought the Court&#146;s
affirmation that DTP did not violate the Labor-Management Relations Act or the Employee Retirement
Income Security Act by unilaterally amending certain medical plans effective April&nbsp;1, 2006 and
October&nbsp;1, 2006, prior to the expiration of the current collective bargaining agreements. On
September&nbsp;10, 2008, the Court found that DTP&#146;s reservation of the right to make such amendments
reducing the level of benefits provided to retirees was limited by its collectively bargained
health insurance agreement with the UAW, which did not expire until April&nbsp;24, 2009. Thus, the
amendments were untimely. In 2008 the Company recorded a charge of $4.0&nbsp;million as a result of the
Court&#146;s decision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">DTP filed a declaratory judgment action in the United States District Court, Southern District of
Indiana (Indianapolis Division) against the UAW Local No.&nbsp;287 and Jim Barrett and others
individually, and as representatives of a defendant class, on February&nbsp;26, 2009 again seeking the
Court&#146;s affirmation that DTP will not violate the Labor &#151; Management Relations Act or the
Employment Retirement Income Security Act (ERISA)&nbsp;by modifying the level of benefits provided
retirees to make them comparable to other Company retiree benefit plans after April&nbsp;24, 2009.
Certain retirees, on behalf of themselves and others, filed a mirror-image action in the United
States District Court, Eastern District of Michigan (Southern District) on March&nbsp;11, 2009. Both
actions are pending.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has communicated its plan to modify the level of benefits provided to the retirees to
make them comparable to other Company retiree benefit plans effective May&nbsp;1, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Environmental</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company and certain of its current and former direct and indirect corporate predecessors,
subsidiaries and divisions have been identified by the United States Environmental Protection
Agency and certain state environmental agencies and private parties as potentially responsible
parties (&#147;PRPs&#148;) at various hazardous waste disposal sites under the Comprehensive Environmental
Response, Compensation and Liability Act (&#147;Superfund&#148;) and equivalent state laws and, as such, may
presently be liable for the cost of clean-up and other remedial activities at 37 such sites.
Responsibility for clean-up and other remedial activities at a
Superfund site is typically shared among PRPs based on an allocation formula.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company believes that none of these matters, individually or in the aggregate, will have a
material adverse effect on its results of operations, financial position, or cash flows.
Generally, this is because either the estimates of the maximum potential liability at a site are
not large or the liability will be shared with other PRPs, although no assurance can be given with
respect to the ultimate outcome of any such matter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on information available to the Company (which in most cases includes: an estimate of
allocation of liability among PRPs; the probability that other PRPs, many of whom are large,
solvent public companies, will fully pay the cost apportioned to them; currently available
information from PRPs and/or federal or state environmental agencies concerning the scope of
contamination and estimated remediation and consulting costs; remediation alternatives; and
estimated legal fees), the Company has established an accrual for indicated environmental
liabilities with a balance at June&nbsp;30, 2009 of $12.3&nbsp;million. The Company has accrued amounts that
do not exceed $4.0&nbsp;million related to any
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">individual site and we do not believe that the costs
related to any of these sites will have a material adverse effect on the Company&#146;s results of
operations, cash flows or financial condition. The Company expects to pay out substantially all of
the amounts accrued for environmental liability over the next three to five years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the sale of Kuhlman Electric Corporation, the Company agreed to indemnify the
buyer and Kuhlman Electric for certain environmental liabilities, then unknown to the Company,
relating to certain operations of Kuhlman Electric that pre-date the Company&#146;s 1999 acquisition of
Kuhlman Electric. During 2000, Kuhlman Electric notified the Company that it discovered potential
environmental contamination at its Crystal Springs, Mississippi plant while undertaking an
expansion of the plant. The Company is continuing to work with the Mississippi Department of
Environmental Quality and Kuhlman Electric to investigate and remediate to the extent necessary,
historical contamination at the plant and surrounding area. Kuhlman Electric and others, including
the Company, were sued in numerous related lawsuits, in which multiple claimants alleged personal
injury and property damage. In 2005, the Company and other defendants entered into settlements
that resolved approximately 99% of the then known personal injury and property damage claims
relating to the alleged environmental contamination. Those settlements involved payments by the
Company of $28.5&nbsp;million in the second half of 2005 and $15.7&nbsp;million in the first quarter of 2006,
in exchange for, among other things, dismissal with prejudice of these lawsuits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Four additional lawsuits were filed against Kuhlman Electric and others, including the Company, in
2007 and 2008 on behalf of approximately 340 plaintiffs, alleging personal injury relating to the
alleged environmental contamination. Given the early stage of the litigation, the Company cannot
make any predictions as to the outcome, but its current intent is to vigorously defend against the
suits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Conditional Asset Retirement Obligations</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In March&nbsp;2005, the FASB issued Interpretation No.&nbsp;47, Accounting for Conditional Asset Retirement
Obligations &#151; an interpretation of FASB Statement No.&nbsp;143 (&#147;FIN 47&#148;), which requires the Company to
recognize legal obligations to perform asset retirements in which the timing and/or method of
settlement are conditional on a future event that may or may not be within the control of the
entity. Certain government regulations require the removal and disposal of asbestos from an
existing facility at the time the facility undergoes major renovations or is demolished. The
liability exists because the facility will not last forever, but it is conditional on future
renovations (even if there are no immediate plans to remove the materials, which pose no health or
safety hazard in their current condition). Similarly, government regulations require the removal
or closure of underground storage tanks and above ground storage tanks when their use ceases, the
disposal of polychlorinated biphenyl transformers and capacitors when their use ceases, and the
disposal of used furnace bricks and liners, and lead-based paint in conjunction with facility
renovations or demolition. The Company currently has 32 manufacturing locations that have been
identified as containing these items.
The fair value to remove and dispose of this material has been estimated and recorded at $1.7
million as of June&nbsp;30, 2009 and $1.4 million as of December&nbsp;31, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Product Liability</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Like many other industrial companies who have historically operated in the U.S., the Company (or
parties the Company is obligated to indemnify) continues to be named as one of many defendants in
asbestos-related personal injury actions. We believe that the Company&#146;s involvement is limited
because, in general, these claims relate to a few types of automotive friction products that were
manufactured many years ago and contained encapsulated asbestos. The nature of the fibers, the
encapsulation and the manner of use lead the Company to believe that these products are highly
unlikely to cause harm. As of June&nbsp;30, 2009 and December&nbsp;31, 2008 the Company had approximately
24,000 and 27,000 pending asbestos-related product liability claims, respectively. Of the 24,000
outstanding claims at June&nbsp;30, 2009, approximately 13,000 were pending in just three jurisdictions,
where significant tort and judicial reform activities are underway.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s policy is to aggressively defend against these lawsuits and the Company has been
successful in obtaining dismissal of many claims without any payment. The Company expects that the
vast majority of the pending asbestos-related product liability claims where it is a defendant (or
has an obligation to indemnify a defendant) will result in no payment being made by the Company or
its insurers. In the first six months of 2009, of the approximately 3,400 claims resolved, only
104 (3.1%) resulted in any payment being made to a claimant by or on behalf of the Company. In
2008, of the approximately 17,500 claims resolved, only 210 (1.2%) resulted in any payment being
made to a claimant by or on behalf of the Company.
Prior to June&nbsp;2004, the settlement and defense costs associated with all claims were covered by the
Company&#146;s primary layer insurance coverage, and these carriers administered, defended, settled and
paid all claims under a funding arrangement. In June&nbsp;2004, primary layer insurance carriers
notified the Company of the alleged exhaustion of their policy limits. This led the Company to
access the next available layer of insurance coverage. Since June&nbsp;2004, secondary layer insurers
have paid asbestos-related litigation defense and settlement expenses pursuant to a funding
arrangement. To date, the Company has paid $63.0&nbsp;million in defense and indemnity in advance of
insurers&#146; reimbursement and has received $15.4&nbsp;million in cash from insurers. The outstanding
balance of $47.6&nbsp;million is expected to be fully recovered. Timing of the recovery is dependent on
final resolution of the declaratory judgment action referred to below. At December&nbsp;31, 2008,
insurers owed $35.9&nbsp;million in association with these claims.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2009, the Company has an estimated liability of $40.3&nbsp;million for future claims
resolutions, with a related asset of $40.3&nbsp;million to recognize the insurance proceeds receivable
by the Company for estimated losses related to claims that have yet to be resolved. Insurance
carrier reimbursement of 100% is expected based on the Company&#146;s experience, its insurance
contracts and decisions received to date in the declaratory judgment action referred to below. At
December&nbsp;31, 2008, the comparable value of the insurance receivable and accrued liability was $34.7
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amounts recorded in the Consolidated Balance Sheets related to the estimated future settlement
of existing claims are as follows:
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepayments and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other non-current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total insurance receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other non-current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total accrued liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company cannot reasonably estimate possible losses, if any, in excess of those for which it has
accrued, because it cannot predict how many additional claims may be brought against the Company
(or parties the Company has an obligation to indemnify) in the future, the allegations in such
claims, the possible outcomes, or the impact of tort reform legislation that may be enacted at the
State or Federal levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A declaratory judgment action was filed in January&nbsp;2004 in the Circuit Court of Cook County,
Illinois by Continental Casualty Company and related companies (&#147;CNA&#148;) against the Company and
certain of its other historical general liability insurers. CNA provided the Company with both
primary and additional layer insurance, and, in conjunction with other insurers, is currently
defending and indemnifying the Company in its pending asbestos-related product liability claims.
The lawsuit seeks to determine the extent of insurance coverage available to the Company
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">including
whether the available limits exhaust on a &#147;per occurrence&#148; or an &#147;aggregate&#148; basis, and to
determine how the applicable coverage responsibilities should be apportioned. On August&nbsp;15, 2005,
the Court issued an interim order regarding the apportionment matter. The interim order has the
effect of making insurers responsible for all defense and settlement costs pro rata to
time-on-the-risk, with the pro-ration method to hold the insured harmless for periods of bankrupt
or unavailable coverage. Appeals of the interim order were denied. However, the issue is reserved
for appellate review at the end of the action. In addition to the primary insurance available for
asbestos-related claims, the Company has substantial additional layers of insurance available for
potential future asbestos-related product claims. As such, the Company continues to believe that
its coverage is sufficient to meet foreseeable liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although it is impossible to predict the outcome of pending or future claims or the impact of tort
reform legislation that may be enacted at the State or Federal levels, due to the encapsulated
nature of the products, the Company&#146;s experiences in aggressively defending and resolving claims in
the past, and the Company&#146;s significant insurance coverage with solvent carriers as of the date of
this filing, management does not believe that asbestos-related product liability claims are likely
to have a material adverse effect on the Company&#146;s results of operations, cash flows or financial
condition.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(15)&nbsp;Leases and Commitments</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has guaranteed the residual values of certain leased machinery and equipment at one of
its facilities. The guarantees extend through the maturity of the underlying lease, which is in
September&nbsp;2010. In the event the Company exercises its option not to purchase the machinery and
equipment, the Company has guaranteed a residual value of $7.7&nbsp;million. The Company has accrued
$4.1&nbsp;million as a loss on this guarantee, which is expected to be paid in 2009.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(16)&nbsp;Restructuring</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the second quarter of 2009, the Company took additional restructuring actions. The Company
reduced its North American workforce by approximately 550 people, or 12%; its European workforce by
approximately 150 people, or 2%; and its Asian workforce by approximately 60 people, or 3% in the
second quarter. The net restructuring expense recognized in the second quarter was $9.0&nbsp;million
for employee termination benefits. In addition to employee termination costs, the Company recorded
$36.3&nbsp;million of asset
impairment and $5.0&nbsp;million of other charges in the second quarter of 2009 related to the North
American and European restructuring. The combined 2009 restructuring expenses of $50.3&nbsp;million are
broken out by segment as follows: Engine $27.2&nbsp;million, Drivetrain $19.7&nbsp;million and Corporate $3.4
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Included in the second quarter of 2009 asset impairment charge is $22.3&nbsp;million related to one of
the Company&#146;s European locations. During the second quarter of 2009 circumstances caused the
Company to evaluate the long range outlook of the facility using an undiscounted and discounted
cash flow model, both of which indicated that assets were impaired. The Company then used an
estimate of cost replacement to determine the fair value of the assets at the facility. This
reduction of asset value was included in the Engine segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On July&nbsp;31, 2008, the Company announced a restructuring of its operations to align ongoing
operations with a continuing, fundamental market shift in the auto industry. As a continuation of
the Company&#146;s third quarter restructuring, on December&nbsp;11, 2008, the Company announced plans for
additional restructuring actions. As a result of these third and fourth quarter 2008 restructuring
actions, the Company has reduced its North American workforce by approximately 2,400 people, or
33%; its European workforce by approximately 1,600 people, or 18%; and its Asian workforce by
approximately 400 people, or 17%. The restructuring expense recognized in 2008 for employee
termination benefits is $54.6&nbsp;million. In addition to employee termination costs, the Company
recorded $72.9&nbsp;million of asset impairment charges in 2008 related to
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the North American and European restructuring. The combined 2008 restructuring expenses of $127.5&nbsp;million are broken out
by segment as follows: Engine $85.3&nbsp;million, Drivetrain $40.9&nbsp;million and Corporate $1.3&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Estimates of restructuring expense are based on information available at the time such charges are
recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual
amounts paid for such activities may differ from amounts initially recorded. Accordingly, the
Company may record revisions of previous estimates by adjusting previously established accruals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table displays a rollforward of the employee related and other restructuring accruals
recorded within the Company&#146;s Consolidated Balance Sheet and the related cash flow activity for the
three and six months ended June&nbsp;30, 2009:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Employee Related and Other Costs</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Drivetrain</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Engine</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31,
2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">51.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">33.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company made cash payments of $32.2&nbsp;million during 2009 related to the 2008 and 2009
restructuring actions. Future cash payments for these restructuring activities are expected to be
complete by the middle of 2010.
</DIV>


<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(17)&nbsp;Reporting Segments</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s business is comprised of two reporting segments: Engine and Drivetrain. These
reporting segments are strategic business groups, which are managed separately as each represents a
specific grouping of related automotive components and systems.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company allocates resources to each segment based upon the projected after-tax return on
invested capital (&#147;ROIC&#148;) of its business initiatives. The ROIC is comprised of projected earnings
before interest, income taxes and noncontrolling interest (&#147;EBIT&#148;) adjusted for income taxes
compared to the projected average capital investment required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EBIT is considered a &#147;non-GAAP financial measure.&#148; Generally, a non-GAAP financial measure is a
numerical measure of a company&#146;s financial performance, financial position or cash flows that
excludes (or includes) amounts that are included in (or excluded from) the most directly comparable
measure calculated and presented in accordance with GAAP. EBIT is defined as earnings before
interest, income taxes and noncontrolling interest. &#147;Earnings&#148; is intended to mean net earnings as
presented in the Consolidated Statements of Operations under GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company believes that EBIT is useful to demonstrate the operational profitability of our
segments by excluding interest and income taxes, which are generally accounted for across the
entire Company on a consolidated basis. EBIT is also one of the measures used by the Company to
determine resource allocation within the Company. Although the Company believes that EBIT enhances
understanding of our business
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and performance, it should not be considered an alternative to, or
more meaningful than, net earnings or cash flows from operations as determined in accordance with
GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following tables present net sales, segment EBIT and total assets for the Company&#146;s reporting
segments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><B>Net Sales by Reporting Segment</B></u>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">670.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,109.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,294.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,207.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Drivetrain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">248.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">414.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">447.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">824.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inter-segment eliminations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">916.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,516.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,735.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,015.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><B>Segment Earnings (Loss) Before Interest and Income Taxes</B></u>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">126.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">264.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Drivetrain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Segment earnings before interest and income taxes (&#147;Segment EBIT&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Muncie closure retiree obligation net gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate, including equity in affiliates&#146; earnings and stock-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated earnings before interest and taxes (&#147;EBIT&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">264.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense and finance charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (loss)&nbsp;before income taxes and noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision (benefit)&nbsp;for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to the noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings (loss)&nbsp;attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(35.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(42.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><B>Total Assets</B></u>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,861.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,065.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Drivetrain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,104.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,211.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,965.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,277.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate, including equity in affiliates <SUP style="font-size: 85%; vertical-align: text-top">(a)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">645.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">366.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,611.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,644.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(a)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Corporate assets, including equity in affiliates, are net of
trade receivables securitized and sold to third parties, and include cash,
deferred income taxes and investments &#038; advances.</TD>
</TR>

</TABLE>



<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(18)&nbsp;New Accounting Pronouncements</B>
</DIV>
<!-- xbrl,body -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In September&nbsp;2006, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of
Financial Accounting Standards No.&nbsp;157, Fair Value Measurements (&#147;FAS 157&#148;). FAS 157 defines
fair value, establishes a framework for measuring fair value in GAAP and expands disclosures
about fair value measurements. On January&nbsp;1, 2009, the Company fully adopted as required, FAS
157. See Note 9 to the Consolidated Financial Statements for more information regarding the
implementation of FAS 157.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued Statement of Financial Accounting Standards No.&nbsp;141 (Revised
2007), Business Combinations (&#147;FAS 141(R)&#148;). FAS 141(R) establishes principles and requirements
for recognizing identifiable assets acquired, liabilities assumed, noncontrolling interest in the
acquiree, goodwill acquired in the combination or the gain from a bargain purchase, and disclosure
requirements. Under this revised statement, all costs incurred to effect an acquisition will be
recognized separately from the acquisition. Also, restructuring costs that are

</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expected but the acquirer is not obligated to incur will be recognized separately from the acquisition. On January
1, 2009, the Company adopted FAS 141(R). In the first quarter of 2009, the Company expensed $4.8
million related to on-going acquisition related activity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued Statement of Financial Accounting Standards No.&nbsp;160,
Noncontrolling Interests in Consolidated Financial Statements (&#147;FAS 160&#148;). Effective January&nbsp;1,
2009, the Company adopted FAS 160. For consolidated subsidiaries that are less than wholly owned,
the third party holdings of equity interests are referred to as noncontrolling interests. The
portion of net income (loss)&nbsp;attributable to
noncontrolling interests for such subsidiaries is presented as net income (loss)&nbsp;applicable to
non-controlling interest on the consolidated statement of operation, and the portion of
stockholders&#146; equity of such subsidiaries is presented as noncontrolling interest on the
consolidated balance sheet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The adoption of FAS 160 did not have a material impact on the Company&#146;s financial condition,
results of operations or cash flows. However, it did impact the presentation and disclosure of
noncontrolling (minority)&nbsp;interests in our consolidated financial statements and notes to the
consolidated financial statements. As a result of the retrospective presentation and disclosure
requirements of SFAS 160, the Company was required to reflect the change in presentation and
disclosure for the period ending March&nbsp;31, 2009 and all periods presented in future filings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year balance sheets related to the adoption of SFAS 160 is
summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"><u>Balance Sheet</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000;">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase for SFAS 160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,037.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year statement of operations related to the adoption of SFAS 160
is summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"><u>Consolidated Statement of Operations</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">92.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Net earnings attributable to noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<!-- xbrl -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year statement of cash flows related to the adoption of SFAS 160
is summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"><u>Statement of Cash Flows</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Net earnings attributable to noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="font-size: 10pt"><u>Statement of Cash Flows</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in affiliates&#146; earnings, net of dividends received,
minority interest and other, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in affiliates&#146; earnings, net of dividends received and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year comprehensive income related to the adoption of SFAS 160 is
summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="font-size: 10pt"><u>Comprehensive Income (Loss)</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">91.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">266.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">94.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">263.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Comprehensive income (loss)&nbsp;attributable to noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">91.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">266.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In March&nbsp;2008, the FASB issued Statement of Financial Accounting Standards No.&nbsp;161,
Disclosures about Derivative Instruments and Hedging Activities (&#147;FAS 161&#148;). FAS 161 requires
entities to provide enhanced disclosures about how and why an entity uses derivative instruments,
how derivative instruments and related hedged items are accounted for under Statement 133 and its
related interpretations, and how derivative instruments and related hedged items affect an entity&#146;s
financial position, financial performance, and cash flows. On January&nbsp;1, 2009, the Company adopted
FAS 161. See Note 10 to the Consolidated Financial Statements for more information regarding the
implementation of <font style="white-space: nowrap">FAS 161.</font>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2008, the FASB issued FASB Staff Position No.&nbsp;APB 14-1, Accounting for Convertible Debt
Instruments That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement) (&#147;FSP
APB 14-1&#148;). Under FSP APB 14-1, an entity must separately account for the liability and equity
components of the convertible debt instruments that may be settled entirely or partially in cash
upon conversion in a manner that reflects the issuer&#146;s interest cost. FSP APB 14-1 is effective
for fiscal years beginning after December&nbsp;15, 2008, and for interim periods within those fiscal
years, with retrospective application required.
As a result of our adoption of FSP APB 14-1 for fiscal 2009 and the Company&#146;s April&nbsp;9, 2009
issuance of $373.8&nbsp;million convertible senior notes due
April&nbsp;15, 2012, we recorded the equity and
liability components of the notes on our June&nbsp;30, 2009 Condensed Consolidated Balance Sheet.
Additionally, FSP APB 14-1 requires us to accrete the discounted carrying value of the convertible
notes to their face value over the term of the notes. The Company&#146;s interest expense associated
with this amortization is based on the effective interest rate of the convertible senior notes of
9.365%. The financial statement impact to the Company&#146;s Consolidated Statement of Operations for
the second quarter will be interest expense recognition of approximately $7.4&nbsp;million, of which

</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$4.2&nbsp;million is non-cash. For the full year of 2009, interest expense will be approximately $22.5
million, of which approximately $12.8&nbsp;million will be non-cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See Note 8 to the Condensed Consolidated Financial Statements for more information regarding this
issuance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2008, the FASB issued Staff Position 132(R)-1, Employers&#146; Disclosures about
Postretirement Benefit Plan Assets (&#147;FAS 132(R)-1&#148;). FAS 132(R)-1 requires entities to provide
enhanced disclosures about how investment allocation decisions are made, the major categories of
plan assets, the inputs and valuation techniques used to measure fair value of plan assets, the
effect of fair value measurements using significant unobservable inputs on changes in plan assets
for the period, and significant concentrations of risk within plan assets. FAS 132(R)-1 is
effective for the Company beginning with its year ending December&nbsp;31, 2009. The Company is
currently assessing the potential impacts, if any, on its consolidated financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;165, Subsequent Events
(&#147;FAS 165&#148;). FAS 165 requires entities to disclose the date through which subsequent events have
been evaluated, as well as whether that date is the date the financial statements were issued or
the date the financial statements were available to be issued. The Company adopted FAS 165 in the
second quarter of 2009 and has evaluated all subsequent events through July&nbsp;29, 2009 (the date the
Company&#146;s financial statements are issued).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;166, Accounting for
Transfer of Financial Assets &#150; an amendment of FASB Statement No.&nbsp;140 (&#147;FAS 166&#148;). FAS 166 removes
the concept of a qualifying special-purpose entity from Statement 140 and removes the exception
from applying FASB Interpretation No.&nbsp;46, Consolidation of Variable Interest Entities, to
qualifying special-purpose entities. This Statement modifies the financial-components approach
used in Statement 140 and limits the circumstances in which a financial asset, or portion of a
financial asset, should be derecognized. Additionally, enhanced disclosures are required to
provide financial statement users with greater transparency about transfers of financial assets and
a transferor&#146;s continuing involvement with transferred financial assets. FAS 166 is effective for
the Company beginning with its quarter ending March&nbsp;31, 2010. The adoption of FAS 166 is not
expected to have a material impact on the Company&#146;s consolidated financial position, results of
operations or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;167, Amendments to
FASB Interpretation No.&nbsp;46(R) (&#147;FAS 167&#148;). FAS 167 amends Interpretation No.&nbsp;46(R) to require
ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest
entity. Additionally, FAS 167 requires enhanced disclosures that will provide users of financial
statements with more transparent information about an enterprise&#146;s involvement in variable interest
entities. FAS 167 is effective for the Company beginning with its quarter ending March&nbsp;31,
2010. The adoption of FAS 167 is not expected to have a material impact on the Company&#146;s
consolidated financial position, results of operations or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;168, The FASB
Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles.
This
FASB instituted a major change in the way accounting standards are organized. The accounting
standards Codification became the single official source of authoritative, nongovernmental U.S.
generally accepted accounting principles (&#147;GAAP&#148;). After final approval by the FASB only one level
of authoritative GAAP will exist, other than guidance issued by the Securities and Exchange
Commission. All other literature will be non-authoritative. The Codification is effective for the
Company beginning with its quarter ending September&nbsp;30, 2009. The adoption of the Codification
will have no impact on the Company&#146;s consolidated financial position, results of operations or cash
flows.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- xbrl,n -->
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(19)&nbsp;Recent Transactions</B>
</DIV>
<!-- xbrl,body -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>BERU AG &#150; Domination and Profit Transfer Agreement and &#147;Squeeze-out&#148; of Minority
Shareholders</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the second quarter of 2008, the Company and BERU AG (&#147;BERU&#148;) completed a Domination and Profit
Transfer Agreement (&#147;DPTA&#148;), giving BorgWarner full control of BERU. Under this agreement BERU is
obligated to transfer 100% of its annual profits or losses to the Company. Upon request of BERU
minority shareholders, the Company is obligated to purchase their shares for a cash payment of
<FONT face="'Times New Roman',times,serif">&#128;</FONT>71.32 per share. Those BERU minority shareholders who did not sell their shares are entitled to
receive an annual compensatory payment (perpetual dividend) of <FONT face="'Times New Roman',times,serif">&#128;</FONT>4.23 (net)&nbsp;per share. The DPTA is
a binding agreement. However, certain minority shareholders of BERU initiated an appraisal
proceeding in the German court system that challenged the valuation of the <FONT face="'Times New Roman',times,serif">&#128;</FONT>71.32 purchase price
and <FONT face="'Times New Roman',times,serif">&#128;</FONT>4.23 annual compensatory payment (perpetual dividend).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;7, 2009 the Company informed BERU of its intention to purchase the remaining outstanding
shares at that time of approximately 4%, using the required German legal process referred to as a
&#147;squeeze-out&#148; to complete the 100% ownership. This process included an affirmative vote of BERU
shareholders at its May&nbsp;20, 2009 annual shareholder meeting. The registration of the &#147;squeeze-out&#148;
was challenged by certain minority shareholders of BERU with the commercial register in June&nbsp;2009.
The &#147;squeeze-out&#148; share price passed by the BERU shareholders in May&nbsp;2009 was <FONT face="'Times New Roman',times,serif">&#128;</FONT>73.39. The increase
in price per share of <FONT face="'Times New Roman',times,serif">&#128;</FONT>2.07 resulting from the &#147;squeeze out&#148; was reflected as an increase to the
Company&#146;s total DPTA obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The DPTA obligation as of June&nbsp;30, 2009 was approximately <FONT face="'Times New Roman',times,serif">&#128;</FONT>23.0 ($32.2) million, and approximates
the cost if all remaining shares were purchased by the Company at <FONT face="'Times New Roman',times,serif">&#128;</FONT>73.39 per share. As of June&nbsp;30,
2009, the DPTA obligation is presented in the Condensed Consolidated Balance Sheet as $32.2&nbsp;million
in current liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below summarizes activity related to the Company&#146;s DPTA obligation as of June&nbsp;30, 2009 as
follows (in millions):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Domination and Profit Transfer Agreement Obligation at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares Purchased During the Three Months Ended March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Translation Adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Domination and Profit Transfer Agreement Obligation at March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share Resolution to <FONT face="'Times New Roman',times,serif">&#128;</FONT>73.39 per Share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares Purchased During the Three Months Ended June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.7</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Translation Adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Domination and Profit Transfer Agreement Obligation at June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2009, the portion of the acquisition related to the DPTA represents a non-cash
transaction of
<FONT face="'Times New Roman',times,serif">&#128;</FONT>23.0 ($32.2) million. For the three months and six months ended June&nbsp;30, 2009, the costs related
to the annual perpetual dividend arrangement are reported as interest expense in the Consolidated
Statement of Operations of $1.1&nbsp;million and $1.6&nbsp;million, respectively.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result of the tendering of shares, the Company owned approximately 97% of all BERU&#146;s
outstanding shares at June&nbsp;30, 2009. The tendering of approximately 1.3% of BERU shares, at a cost
of $12.9&nbsp;million, has been reflected as an Investing activity in the Consolidated Statements of
Cash Flows for the six months ended June&nbsp;30, 2009. On May&nbsp;22, 2009 the Company paid the annual
perpetual dividend of $1.9&nbsp;million, which is reflected as an Investing activity in the Consolidated
Statement of Cash Flows for the six months ended June&nbsp;30, 2009.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For a description of our earlier acquisition of BERU, see Note 20 to the Notes to Consolidated
Financial Statements in our most recently filed Annual Report on Form 10-K.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Acquisition of Etatech, Inc. Technology</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;2, 2009, the Company announced the purchase of advanced gasoline ignition technology and
related intellectual property from Florida-based Etatech, Inc. The high-frequency ignition
technology enables high-performing, lean burning engines to significantly improve fuel economy and
reduce emissions compared with conventional combustion technologies. Amortization expense of
approximately $0.2&nbsp;million was incurred in the second quarter of 2009 with respect to this
acquisition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the six months ended June&nbsp;30, 2009, a $7.5&nbsp;million payment has been reflected as an investing
activity in the Consolidated Statement of Cash Flows.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>INTRODUCTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BorgWarner Inc. and Consolidated Subsidiaries (the &#147;Company&#148;) is a leading global supplier of
highly engineered systems and components primarily for powertrain applications. Our products help
improve vehicle performance, fuel efficiency, air quality and vehicle stability. They are
manufactured and sold worldwide, primarily to original equipment manufacturers (&#147;OEMs&#148;) of light
vehicles (i.e., passenger cars, sport-utility vehicles (&#147;SUVs&#148;), cross-over vehicles, vans and
light-trucks). Our products are also manufactured and sold to OEMs of commercial trucks, buses and
agricultural and off-highway vehicles. We also manufacture and sell our products into the
aftermarket for light and commercial vehicles. We operate manufacturing facilities serving
customers in the Americas, Europe and Asia, and are an original equipment supplier to every major
automaker in the world.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s products fall into two reporting segments: Engine and Drivetrain. The Engine
segment&#146;s products include turbochargers, timing chain systems, air management, emissions systems,
thermal systems, as well as diesel and gas ignition systems. The Drivetrain segment&#146;s products are
all-wheel drive transfer cases, torque management systems, and components and systems for automated
transmissions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Three Months Ended June&nbsp;30, 2009 vs. Three Months Ended June&nbsp;30, 2008</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Consolidated net sales for the three months ended June&nbsp;30, 2009 totaled $916.2&nbsp;million, a 39.6%
decrease from the three months ended June&nbsp;30, 2008. This decrease occurred while light-vehicle
production was down 26% worldwide and down 48% in North America from the previous year&#146;s second
quarter. Light-vehicle production decreased 16% in Asia-Pacific and 27% in Europe. The net sales
decrease included the effect of weaker foreign currencies, primarily the Euro, of approximately
$100&nbsp;million. Currency fluctuations impacted all of the Company&#146;s product lines. Without the
currency impact, the decrease in global net sales would have been 33.0%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gross profit and gross margin were $116.2&nbsp;million and 12.7% for the second quarter of 2009 as
compared to $278.8&nbsp;million and 18.4% for second quarter 2008. The gross margin percentage decrease
was due to sales volume declining faster than our ability to reduce our cost structure. Cost
reduction actions taken in 2009 to reduce our cost structure included global pay cuts, selected
plant shutdowns and reduced work weeks outside of the U.S.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Second quarter selling, general and administrative (&#147;SG&#038;A&#148;) costs decreased $44.5&nbsp;million to $115.4
million from $159.9&nbsp;million, and increased as a percentage of net sales to 12.6% from 10.5%. R&#038;D
costs, which are included in SG&#038;A expenses, decreased $22.0&nbsp;million to $35.8&nbsp;million from $57.8
million as compared to second quarter 2008. As a percentage of sales, R&#038;D costs increased to 3.9%
from 3.8% in the second quarter of 2008. Our continued investment in a number of cross-business
R&#038;D programs, as well as other key programs, is necessary for the Company&#146;s short and long-term
growth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the second quarter of 2009, the Company took additional restructuring actions. The Company
reduced its North American workforce by approximately 550 people, or 12%; its European workforce by
approximately 150 people, or 2%; and its Asian workforce by approximately 60 people, or 3% in the
second quarter. The net restructuring expense recognized in the second quarter was $9.0&nbsp;million
for employee termination benefits. In addition to employee termination costs, the Company recorded
$36.3&nbsp;million of asset impairment and $5.0&nbsp;million of other charges in the second quarter of 2009
related to the North American and European restructuring. The combined 2009 restructuring expenses
of
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$50.3&nbsp;million are broken out by segment as follows: Engine $27.2&nbsp;million, Drivetrain $19.7&nbsp;million and Corporate $3.4&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Included in the second quarter of 2009 asset impairment charge is $22.3&nbsp;million related to one of
the Company&#146;s European locations. During the second quarter of 2009 circumstances caused the
Company to evaluate the long range outlook of the facility using an undiscounted and discounted
cash flow model, both of which indicated that assets were impaired. The Company then used an
estimate of cost replacement to determine the fair value of the assets at the facility. This
reduction of asset value was included in the Engine segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Equity in affiliates&#146; earnings of $4.8&nbsp;million decreased $7.1&nbsp;million as compared with the second
quarter of 2008 primarily due to lower vehicle production in Asia.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Second quarter interest expense and finance charges of $9.0&nbsp;million decreased $1.8&nbsp;million as
compared with second quarter 2008 primarily due to reduced interest rates globally. Included in
the second quarter of 2009 is interest expense of $7.4&nbsp;million related to the convertible notes and
a $6.6&nbsp;million favorable adjustment related to net hedge ineffectiveness, including non-performance
risk associated with FAS 133 and <font style="white-space: nowrap">FAS 157.</font>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s provision for income taxes is normally based on an estimated tax rate for the year
applied to the year-to-date federal, state and foreign income. However, due to unprecedented
depressed global economic conditions there is significant uncertainty regarding industry production
volumes for the remainder of the year. This precludes us from making a reliable estimate of the
annual effective tax rate for the year. Accordingly, we have made our 2009 income tax provision
pursuant to Financial Accounting Standards Board (&#147;FASB&#148;) Interpretation No.&nbsp;18, Accounting for
Income Taxes in Interim Periods, which provides that tax (or benefit) in each foreign jurisdiction
that is not subject to a valuation allowance be separately computed as ordinary income/(loss)
occurs within the jurisdiction for the quarter. The actual global effective tax rate for the six
months is calculated to be a benefit of 39%, which resulted in a 36% tax rate (benefit)&nbsp;for the
second quarter. This represents an income tax benefit of ($25.7) million on the loss of ($65.9)
million for the first six months of 2009. It results in a ($19.1) million benefit on the loss of
($53.0) million for the second quarter of 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s net loss was $35.9&nbsp;million for the second quarter, or $0.31 loss per diluted share, a
decrease of $1.05 per diluted share over the previous year&#146;s second quarter. The second quarter
2009 loss included a $0.29 per diluted share loss related to restructuring activities and a $0.04
per diluted share gain from interest rate derivative agreements. Second quarter 2008 net income
included purchase accounting adjustments related to the acquisition of BERU of $0.04 loss per
diluted share. Excluding these items, the net loss was $0.05 per diluted share in the second
quarter of 2009, a decrease of $0.83 per diluted share over the previous year&#146;s second quarter.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company believes the following table is useful in highlighting non-recurring or non-comparable
items that impacted its earnings (loss)&nbsp;per diluted share:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GAAP earnings or (loss)&nbsp;per share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.31</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-recurring or non-comparable items:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restructuring activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest rate derivative agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase accounting adjustments
related to BERU</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total impact of non-recurring or non-comparable items per
share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.26</TD>
    <TD nowrap>)*</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Column does not add down due to rounding</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Six months ended June&nbsp;30, 2009 vs. Six months ended June&nbsp;30, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Consolidated net sales for the six months ended June&nbsp;30, 2009 totaled $1,735.7&nbsp;million, a 42.4%
decrease over the six months ended June&nbsp;30, 2008. This decrease occurred while light-vehicle
production was down 30% worldwide and down 50% in North America from the previous year&#146;s first six
months. Light-vehicle production decreased 22% in Asia-Pacific and 34% in Europe. The net sales
decrease included the effect of weaker foreign currencies, primarily the Euro, of approximately
$182&nbsp;million. Currency fluctuations impacted all of the Company&#146;s product lines. Without the
currency impact, the decrease in global net sales would have been 36.4%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gross profit and gross margin were $195.8&nbsp;million and 11.3% for the first six months of 2009 as
compared to $562.3&nbsp;million and 18.6% for the first six months of 2008. The gross margin percentage
decrease was due to sales volume declining faster than our ability to reduce our cost structure.
Cost reduction actions taken in 2009 to reduce our cost structure included global pay cuts,
selected plant shutdowns and reduced work weeks outside of the U.S.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;26, 2009, the Company&#146;s subsidiary, BorgWarner Diversified Transmission Products Inc.
(&#147;DTP&#148;), entered into a Plant Shutdown Agreement with the United Auto Workers (&#147;UAW&#148;) for its
Muncie, Indiana automotive component plant (the &#147;Muncie Plant&#148;). Management subsequently wound-down
production activity at the plant, with operations effectively ceased as of March&nbsp;31, 2009. As a
result of the closure of the Muncie Plant, the Company recorded a curtailment gain of $41.9&nbsp;million
in the first quarter of 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Plant Shutdown Agreement with the UAW for the Muncie Plant also included a settlement of a
portion of the UAW retiree health care obligation, resulting in the remeasurement of the retiree
medical plan. The financial impact of this settlement resulted in expense recognition of $14.0
million, a $47.2&nbsp;million reduction to retirement-related liabilities, a $27.2&nbsp;million increase in
accumulated other comprehensive income and a $34.0&nbsp;million increase in accounts payable and accrued
expenses in the first quarter of 2009. The $34.0&nbsp;million in accounts payable and accrued expenses
will be paid in monthly installments, which began in May
2009 and will conclude in April&nbsp;2010. With the plant closing announcement, the Company has entered
into discussions with the Pension Benefit Guaranty Corporation regarding potential funding of the
Muncie Plant&#146;s defined benefit pension plan.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The combined pre-tax impact of these actions was a net gain of $27.9&nbsp;million, comprised of a $41.9
million curtailment gain and $14.0&nbsp;million settlement loss on the Company&#146;s Condensed Consolidated
Statements of Operations as of March&nbsp;31, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative (&#147;SG&#038;A&#148;) costs for the first six months of 2009 decreased
$126.1&nbsp;million to $189.5&nbsp;million from $315.6&nbsp;million, and increased as a percentage of net sales to
10.9% from 10.5%. The decrease in SG&#038;A was impacted by a $27.9&nbsp;million aforementioned net gain
related to the Company&#146;s Plant Shutdown Agreement with the UAW and subsequent closure of the Muncie
Plant. This gain was partially offset by a $4.8&nbsp;million expense associated with the adoption of
FAS 141(R). Without these non-comparable items, SG&#038;A as a percentage of net sales was 12.2%. R&#038;D
costs, which are included in SG&#038;A expenses, decreased $47.0&nbsp;million to $68.3&nbsp;million from $115.3
million as compared to the first six months of 2008. As a percentage of sales, R&#038;D costs increased
to 3.9% from 3.8% in the first six months of 2008. Our continued investment in a number of
cross-business R&#038;D programs, as well as other key programs, is necessary for the Company&#146;s short
and long-term growth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the second quarter of 2009, the Company took additional restructuring actions. The Company
reduced its North American workforce by approximately 550 people, or 12%; its European workforce by
approximately 150 people, or 2%; and its Asian workforce by approximately 60 people, or 3% in the
second quarter. The net restructuring expense recognized in the second quarter was $9.0&nbsp;million
for employee termination benefits. In addition to employee termination costs, the Company recorded
$36.3&nbsp;million of asset impairment and $5.0&nbsp;million of other charges in the second quarter of 2009
related to the North American and European restructuring. The combined 2009 restructuring expenses
of $50.3&nbsp;million are broken out by segment as follows: Engine $27.2&nbsp;million, Drivetrain $19.7
million and Corporate $3.4&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Included in the second quarter of 2009 asset impairment charge is $22.3&nbsp;million related to one of
the Company&#146;s European locations. During the second quarter of 2009 circumstances caused the
Company to evaluate the long range outlook of the facility using an undiscounted and discounted
cash flow model, both of which indicated that assets were impaired. The Company then used an
estimate of cost replacement to determine the fair value of the assets at the facility. This
reduction of asset value was included in the Engine segment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Equity in affiliates&#146; earnings of $5.0&nbsp;million decreased $16.0&nbsp;million as compared to the first six
months of 2008 primarily due to lower vehicle production in Asia.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest expense and finance charges for the first six months of 2009 were $28.1&nbsp;million and
increased $10.8&nbsp;million as compared with the first six months of 2008. This increase was primarily
due to a net $4.8&nbsp;million non-cash charge related to net hedge ineffectiveness as well as $7.4
million of expense related to the Company&#146;s convertible notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s provision for income taxes is normally based on an estimated tax rate for the year
applied to the year-to-date federal, state and foreign income. However, due to unprecedented
depressed global economic conditions there is significant uncertainty regarding industry production
volumes for the remainder of the year. This precludes us from making a reliable estimate of the
annual effective tax rate for the year. Accordingly, we have made our 2009 income tax provision
pursuant to Financial Accounting Standards Board (&#147;FASB&#148;) Interpretation No.&nbsp;18, Accounting for
Income Taxes in Interim Periods, which provides that tax (or benefit) in each foreign jurisdiction
that is not subject to a valuation allowance be separately computed as ordinary income/(loss)
occurs within the jurisdiction for the quarter. The actual global effective
tax rate for the six months is calculated to be a benefit of 39%, which resulted in a 36% tax rate
(benefit)&nbsp;for the second quarter. This represents an income tax benefit of ($25.7) million on the
loss of ($65.9) million for the first six months of 2009. It results in a ($19.1) million benefit
on the loss of ($53.0) million for the second quarter of 2009.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s net loss was $42.9&nbsp;million for the first six months of 2009, or $0.37 loss per
diluted share, a decrease of $1.86 per diluted share over the previous year&#146;s first six months.
The first six months of 2009 included a $0.29 per diluted share loss related to restructuring
activities, a $0.03 per diluted share loss from interest rate derivative agreements, a $0.03 per
diluted share loss upon adoption of FAS 141(R) for treatment of on-going acquisition-related
activity and a $0.15 per diluted share net gain related to retiree obligations resulting from the
closure of the Muncie, Indiana, Drivetrain facility. Second quarter 2008 net income included
purchase accounting adjustments related to the acquisition of BERU of $0.04 loss per diluted share.
Excluding these items, the net loss was $0.17 per diluted share for the first six months of 2009, a
decrease of $1.70 per diluted share over the previous year&#146;s first six months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company believes the following table is useful in highlighting non-recurring or non-comparable
items that impacted its earnings (loss)&nbsp;per diluted share:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GAAP earnings or (loss)&nbsp;per share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-recurring or non-comparable items:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restructuring activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest rate derivative agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">FAS 141 R adoption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change in retiree obligation related to Muncie
closure</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase accounting adjustments related to BERU</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total impact of non-recurring or non-comparable items per share &#151; diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.20</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reporting Segments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s business is comprised of two reporting segments: Engine and Drivetrain. These
reporting segments are strategic business groups, which are managed separately as each represents a
specific grouping of related automotive components and systems.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company allocates resources to each segment based upon the projected after-tax return on
invested capital (&#147;ROIC&#148;) of its business initiatives. The ROIC is comprised of projected earnings
before interest, income taxes and noncontrolling interest (&#147;EBIT&#148;) adjusted for income taxes
compared to the projected average capital investment required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EBIT is considered a &#147;non-GAAP financial measure.&#148; Generally, a non-GAAP financial measure is a
numerical measure of a company&#146;s financial performance, financial position or cash flows that
excludes (or includes) amounts that are included in (or excluded from) the most directly comparable
measure calculated
and presented in accordance with GAAP. EBIT is defined as earnings before interest, income taxes
and noncontrolling interest. &#147;Earnings&#148; is intended to mean net earnings as presented in the
Consolidated Statements of Operations under GAAP.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company believes that EBIT is useful to demonstrate the operational profitability of our
segments by excluding interest and income taxes, which are generally accounted for across the
entire Company on a consolidated basis. EBIT is also one of the measures used by the Company to
determine resource allocation within the Company. Although the Company believes that EBIT enhances
understanding of our business and performance, it should not be considered an alternative to, or
more meaningful than, net earnings (loss)&nbsp;or cash flows from operations as determined in accordance
with GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following tables present net sales and segment EBIT by reporting segment for the three and six
months ended June&nbsp;30, 2009 and 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><B>Net Sales by Reporting Segment</B></u>

</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">670.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,109.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,294.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,207.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Drivetrain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">248.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">414.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">447.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">824.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inter-segment eliminations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">916.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,516.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,735.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,015.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><B>Segment Earnings (Loss) Before Interest and Income Taxes</B></u><BR>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Six months ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">126.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">264.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Drivetrain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Segment earnings before interest and income taxes (&#147;Segment EBIT&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Muncie closure retiree obligation net gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate, including equity in affiliates&#146; earnings and stock-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39.9</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated earnings before interest and taxes (&#147;EBIT&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">264.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense and finance charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (loss)&nbsp;before income taxes and noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision (benefit)&nbsp;for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(33.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to the noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings (loss)&nbsp;attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(35.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(42.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Three Months Ended June&nbsp;30, 2009 vs. Three Months Ended June&nbsp;30, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Engine segment net sales decreased $438.6&nbsp;million, or 39.5%, and segment EBIT decreased $82.4
million, or 65.2%, from second quarter 2008. Excluding the impact of weaker foreign currencies,
primarily the Euro, sales decreased 32.8%. The sales and EBIT decrease was primarily driven by
reduced global vehicle production that depressed demand for engine products, especially in Europe.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Drivetrain segment net sales decreased $165.6&nbsp;million, or 40.0%, and segment EBIT decreased
$30.6&nbsp;million, or 140.4%, from second quarter 2008. Excluding the impact of weaker foreign
currencies, primarily the Euro, sales decreased 34.0%. The sales and EBIT decrease was driven by
lower global production, primarily in Europe, North America and Japan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Six months ended June&nbsp;30, 2009 vs. Six months ended June&nbsp;30, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Engine segment net sales decreased $912.2&nbsp;million, or 41.3%, and segment EBIT decreased $184.4
million, or 69.8%, from the first six months of 2008. Excluding the impact of weaker foreign
currencies, primarily the Euro, sales decreased 35.0%. The sales and EBIT decrease was primarily
driven by reduced global vehicle production that depressed demand for engine products, especially
in Europe.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Drivetrain segment net sales decreased $377.2&nbsp;million, or 45.8%, and segment EBIT decreased
$81.6&nbsp;million, or 203.5%, from the first six months of 2008. Excluding the impact of weaker
foreign currencies, primarily the Euro, sales decreased 40.7%. The sales and EBIT decrease was
driven by lower global production, primarily in Europe, North America and Japan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Outlook for the Remainder of 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company remains cautious about the remainder of 2009. Uncertainty surrounding the breadth and
duration of the global recession, and its impact on automotive markets around the world, continues
to limit visibility. The Company expects there to be continued weakness in global production, with
a marginal increase in the second half of 2009 compared with the first half. The impact of
non-U.S. currencies is currently expected to decline in 2009 versus 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company maintains a positive long-term outlook for its global business and is committed to new
product development and strategic capital investments to enhance its product leadership strategy.
The trends that are driving our long-term growth are expected to continue, including the growth of
direct injection diesel and gasoline engines worldwide, the increased adoption of automated
transmissions in Europe and Asia-Pacific, and the move to variable cam and chain engine timing
systems in both Europe and Asia-Pacific. When the recovery from current global economic conditions
occurs, we expect long-term sales and net earnings growth to resume to historical rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>FINANCIAL CONDITION AND LIQUIDITY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company had $256.9&nbsp;million of cash on hand at June&nbsp;30, 2009. The Company has a multi-currency
revolving credit facility, which provided for borrowings up to $600&nbsp;million through July&nbsp;22, 2009.
On April&nbsp;30, 2009, we extended our existing multi-currency credit facility for eighteen months,
maturing January&nbsp;22, 2011. The facility was reduced to $250&nbsp;million beginning July&nbsp;23, 2009. The
facility is now secured by unperfected pledges of the Company&#146;s equity interests in its
subsidiaries and certain assets. No secured party is entitled to perfect its lien on any of the
collateral until the long term unsecured senior, non-credit enhanced debt rating of the Company is
less than or equal to BB&#043; by Standard &#038; Poor&#146;s and less than or equal to Ba1 by Moody&#146;s.
The three key covenants of the credit agreement are a net worth test, a debt compared to EBITDA
(&#147;Earnings Before Interest, Taxes, Depreciation and Amortization&#148;) test, and an interest coverage
test. The Company was in compliance with all covenants at June&nbsp;30, 2009 and expects to be
compliant in future periods. At June&nbsp;30, 2009 and December&nbsp;31, 2008 there were no outstanding
borrowings under the facility. In addition to the credit facility, as of June&nbsp;30, 2009, the
Company had approximately $376&nbsp;million available under a universal shelf registration statement on
file with the Securities and Exchange Commission under which a variety of debt and equity
instruments could be issued. From a credit quality perspective, the Company has a credit rating of
BBB from Standard &#038; Poor&#146;s and Ba1 from Moody&#146;s. On March&nbsp;18, 2009, Moody&#146;s downgraded the
Company&#146;s credit rating from Baa3 to Ba1.
The current outlook from Standard &#038; Poor&#146;s and Moody&#146;s is negative. None of the Company&#146;s debt
agreements require accelerated repayment in the event of a decrease in credit ratings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;24, 2009 the Company&#146;s $50&nbsp;million accounts receivable securitization facility matured and
was not renewed. The impact of this maturity was an increase in receivables of $50&nbsp;million and a
decrease in cash of $50&nbsp;million in the second quarter of 2009. This is reflected as a Financing
activity in the Condensed Consolidated Statements of Cash Flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the six-month periods ended June&nbsp;30, 2009 and 2008, total cash proceeds from sales of
accounts receivable were $200&nbsp;million and $300&nbsp;million, respectively. The Company paid servicing
fees related to these receivables for the three and six months ended June&nbsp;30, 2009 and 2008 of $0.1
million and $0.4&nbsp;million and $0.4&nbsp;million and $1.0&nbsp;million, respectively. These amounts are
recorded in interest expense and finance charges in the Condensed Consolidated Statements of
Operations.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2006, the Company entered into a series of interest rate swap agreements to effectively convert
a portion of its senior notes from fixed to variable interest rates and were designated as fair
value hedges for the senior notes. In the first quarter of 2009, $100&nbsp;million of interest rate
swap agreements relating to the 2009 fixed-rate debt matured. Also, in the first quarter of 2009,
the Company terminated $150&nbsp;million of interest rate swap agreements relating to the 2016 fixed
rate debt and $75&nbsp;million of interest rate swap agreements relating to the 2019 fixed rate debt.
The early termination of the 2016 and 2019 interest rate swap agreements resulted in a gain of
$34.5&nbsp;million that will be amortized as a reduction of interest expense over the remaining life of
the respective 2016 and 2019 debt. The Company recognized $5.7&nbsp;million in interest expense in the
first quarter of 2009 as a result of the early termination. This early termination also resulted
in the Company receiving net cash proceeds of $30.0&nbsp;million. As of June&nbsp;30, 2009, there were no
outstanding interest rate swap agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net cash provided by operating activities decreased $93.3&nbsp;million to $173.8&nbsp;million for the first
six months of 2009 from $267.1&nbsp;million in the first six months of 2008. The decrease reflected
lower earnings, offset by lower working capital needs in the first six months of 2009 as compared
to the first six months of 2008. Capital spending, including tooling outlays, was $88.3&nbsp;million in
the first six months of 2009, compared with $162.2&nbsp;million in 2008. Selective capital spending
remains an area of focus for the Company, both in order to support our book of new business and for
cost reductions and productivity improvements. The Company expects to continue to spend capital to
support the launch of our new applications and for cost reductions and productivity improvement
projects, but at levels considerably lower than 2008. The Company expects that net cash provided by
operating activities, after capital expenditures, including tooling outlays to be positive in 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2009, debt increased from year-end 2008 by $81.7&nbsp;million and cash increased by
$153.5. Our debt to capital ratio was 29.3% at the end of the second quarter versus 27.7% at the
end of 2008. The debt and debt to capital ratio increase between June&nbsp;30, 2009 and December&nbsp;31,
2008 was primarily due to the April&nbsp;9, 2009 issuance of $373.8&nbsp;million in convertible senior notes
due April&nbsp;15, 2012, offset by the maturity of our $136.7&nbsp;million, 6.50% senior notes. The net
proceeds from the convertible senior notes issuance were used to repay both short and long-term
bank debt and provide cash for operating needs. The Company paid dividends to its stockholders of
$13.8&nbsp;million and $25.8&nbsp;million in the first six months of 2009 and 2008, respectively. The
Company repurchased 618,905 shares of its common stock for $27.7&nbsp;million in the first six months of
2008, while no common shares were repurchased in the first six months of 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;5, 2009, the Company announced the temporary suspension of the Company&#146;s quarterly
dividend of $0.12 per share until global economic conditions improve. This action is expected to
save the Company approximately $42&nbsp;million in 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;9, 2009, the Company issued $373.8&nbsp;million in convertible senior notes due April&nbsp;15, 2012.
Under FASB Staff Position No.&nbsp;APB 14-1, Accounting for Convertible Debt Instruments That May be
Settled in Cash Upon Conversion (Including Partial Cash Settlement) (&#147;FSP APB 14-1&#148;), the Company
must account for the convertible senior notes by bifurcating the instrument between their liability
and equity components. The value of the debt component is based on the fair value of issuing a
similar nonconvertible debt security. The equity component of the convertible debt security is
calculated by deducting the value of the liability from the proceeds received at issuance.
Therefore, the Company&#146;s June&nbsp;30, 2009 Condensed Consolidated Balance Sheet includes an increase in
debt of $321.7&nbsp;million and an increase in capital in excess of par of $34.6&nbsp;million. Additionally,
FSP APB 14-1 requires us to accrete the discounted carrying value of the convertible notes to their
face value over the term of the notes. The Company&#146;s interest expense associated with this bond
accretion is based on the effective interest rate of the convertible senior notes of 9.365%. The
total interest expense related to the convertible notes in the Company&#146;s Consolidated Statement of
Operations was $7.4&nbsp;million for the second quarter, of which $4.2&nbsp;million was non-cash. For the
full year of 2009, interest expense related to
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the convertible notes will be approximately $22.5
million, of which $12.8 million will be non-cash. The notes will pay interest semi-annually of
$6.5&nbsp;million, which is at a coupon rate of 3.50% per year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Holders of the notes may convert their notes at their option at any time prior to the close of
business on the second scheduled trading day immediately preceding the maturity date of the notes,
in multiples of $1,000 principal amount. The initial conversion rate for the notes is 30.4706
shares of the Company&#146;s common stock per $1,000 principal amount of notes (representing an initial
conversion price of approximately $32.82 per share of common stock). The conversion price
represents a conversion premium of 27.5% over the last reported sale price of the Company&#146;s common
stock on the New York Stock Exchange on April&nbsp;6, 2009, of $25.74 per share. As of June&nbsp;30, 2009,
the if-converted value of the 3.50% Convertible Senior Notes was approximately $15.2&nbsp;million. In
conjunction with the note offering, the Company entered into a bond hedge overlay at a net pre-tax
cost of $25.2&nbsp;million, effectively raising the conversion premium to 50.0%, or approximately $38.61
per share. Upon conversion, the Company will pay or deliver cash, shares of our common stock or a
combination thereof at our election. The convertible senior notes were issued under the Company&#146;s
$750&nbsp;million universal shelf registration filed with the Securities and Exchange Commission,
leaving approximately $376&nbsp;million available as of June&nbsp;30, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe that the combination of cash from operations, cash balances, available credit
facilities, the April issuance of the convertible senior notes described above, and the remaining
shelf registration capacity will be sufficient to satisfy our cash needs for our current level of
operations and our planned operations for the foreseeable future. We will continue to balance our
needs for internal growth, external growth, debt reduction and cash conservation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OTHER MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the normal course of business the Company and its subsidiaries are parties to various commercial
and legal claims, actions and complaints, including matters involving warranty claims, intellectual
property claims, general liability and various other risks. It is not possible to predict with
certainty whether or not the Company and its subsidiaries will ultimately be successful in any of
these commercial and legal matters or, if not, what the impact might be. The Company&#146;s
environmental and product liability contingencies are discussed separately below. The Company&#146;s
management does not expect that the results in any of these commercial and legal claims, actions
and complaints will have a material adverse effect on the Company&#146;s results of operations,
financial position or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Litigation </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In January&nbsp;2006, DTP, a subsidiary of the Company, filed a declaratory judgment action in United
States District
Court, Southern District of Indiana (Indianapolis Division) against the United Automobile,
Aerospace, and Agricultural Implements Workers of America (&#147;UAW&#148;) Local No.&nbsp;287 and Gerald Poor,
individually and as the representative of a defendant class. DTP sought the Court&#146;s affirmation
that DTP did not violate the Labor-Management Relations Act or the Employee Retirement Income
Security Act by unilaterally amending certain medical plans effective April&nbsp;1, 2006 and October&nbsp;1,
2006, prior to the expiration of the current collective bargaining agreements. On September&nbsp;10,
2008, the Court found that DTP&#146;s reservation of the right to make such amendments reducing the
level of benefits provided to retirees was limited by its collectively bargained health insurance
agreement with the UAW, which did not expire until April&nbsp;24, 2009. Thus, the amendments were
untimely. In 2008 the Company recorded a charge of $4.0&nbsp;million as a result of the Court&#146;s
decision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">DTP filed a declaratory judgment action in the United States District Court, Southern District of
Indiana (Indianapolis Division) against the UAW Local No.&nbsp;287 and Jim Barrett and others
individually, and as representatives of a defendant class, on February&nbsp;26, 2009 again seeking the
Court&#146;s affirmation that DTP will not violate the Labor &#151; Management Relations Act or the
Employment Retirement Income Security Act (ERISA)&nbsp;by modifying the level of benefits provided
retirees to make them comparable to other Company retiree benefit
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">plans after April&nbsp;24, 2009.
Certain retirees, on behalf of themselves and others, filed a mirror-image action in the United
States District Court, Eastern District of Michigan (Southern District) on March&nbsp;11, 2009. Both
actions are pending.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has communicated its plan to modify the level of benefits provided to the retirees to
make them comparable to other Company retiree benefit plans effective May&nbsp;1, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Environmental</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company and certain of its current and former direct and indirect corporate predecessors,
subsidiaries and divisions have been identified by the United States Environmental Protection
Agency and certain state environmental agencies and private parties as potentially responsible
parties (&#147;PRPs&#148;) at various hazardous waste disposal sites under the Comprehensive Environmental
Response, Compensation and Liability Act (&#147;Superfund&#148;) and equivalent state laws and, as such, may
presently be liable for the cost of clean-up and other remedial activities at 37 such sites.
Responsibility for clean-up and other remedial activities at a Superfund site is typically shared
among PRPs based on an allocation formula.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company believes that none of these matters, individually or in the aggregate, will have a
material adverse effect on its results of operations, financial position, or cash flows.
Generally, this is because either the estimates of the maximum potential liability at a site are
not large or the liability will be shared with other PRPs, although no assurance can be given with
respect to the ultimate outcome of any such matter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on information available to the Company (which in most cases includes: an estimate of
allocation of liability among PRPs; the probability that other PRPs, many of whom are large,
solvent public companies, will fully pay the cost apportioned to them; currently available
information from PRPs and/or federal or state environmental agencies concerning the scope of
contamination and estimated remediation and consulting costs; remediation alternatives; and
estimated legal fees), the Company has established an accrual for indicated environmental
liabilities with a balance at June&nbsp;30, 2009 of $12.3&nbsp;million. The Company has accrued amounts that
do not exceed $4.0&nbsp;million related to any individual site and we do not believe that the costs
related to any of these sites will have a material adverse effect on the Company&#146;s results of
operations, cash flows or financial condition. The Company expects to pay out substantially all of
the amounts accrued for environmental liability over the next three to five years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the sale of Kuhlman Electric Corporation, the Company agreed to indemnify the
buyer and Kuhlman Electric for certain environmental liabilities, then unknown to the Company,
relating to certain operations of Kuhlman Electric that pre-date the Company&#146;s 1999 acquisition of
Kuhlman Electric. During
2000, Kuhlman Electric notified the Company that it discovered potential environmental
contamination at its Crystal Springs, Mississippi plant while undertaking an expansion of the
plant. The Company is continuing to work with the Mississippi Department of Environmental Quality
and Kuhlman Electric to investigate and remediate to the extent necessary, historical contamination
at the plant and surrounding area. Kuhlman Electric and others, including the Company, were sued
in numerous related lawsuits, in which multiple claimants alleged personal injury and property
damage. In 2005, the Company and other defendants entered into settlements that resolved
approximately 99% of the then known personal injury and property damage claims relating to the
alleged environmental contamination. Those settlements involved payments by the Company of $28.5
million in the second half of 2005 and $15.7&nbsp;million in the first quarter of 2006, in exchange for,
among other things, dismissal with prejudice of these lawsuits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Four additional lawsuits were filed against Kuhlman Electric and others, including the Company, in
2007 and 2008 on behalf of approximately 340 plaintiffs, alleging personal injury relating to the
alleged environmental contamination. Given the early stage of the litigation, the Company cannot
make any predictions as to the outcome, but its current intent is to vigorously defend against the
suits.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Conditional Asset Retirement Obligations</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In March&nbsp;2005, the FASB issued Interpretation No.&nbsp;47, Accounting for Conditional Asset Retirement
Obligations &#151; an interpretation of FASB Statement No.&nbsp;143 (&#147;FIN 47&#148;), which requires the Company to
recognize legal obligations to perform asset retirements in which the timing and/or method of
settlement are conditional on a future event that may or may not be within the control of the
entity. Certain government regulations require the removal and disposal of asbestos from an
existing facility at the time the facility undergoes major renovations or is demolished. The
liability exists because the facility will not last forever, but it is conditional on future
renovations (even if there are no immediate plans to remove the materials, which pose no health or
safety hazard in their current condition). Similarly, government regulations require the removal
or closure of underground storage tanks and above ground storage tanks when their use ceases, the
disposal of polychlorinated biphenyl transformers and capacitors when their use ceases, and the
disposal of used furnace bricks and liners, and lead-based paint in conjunction with facility
renovations or demolition. The Company currently has 32 manufacturing locations that have been
identified as containing these items. The fair value to remove and dispose of this material has
been estimated and recorded at $1.7&nbsp;million as of June&nbsp;30,
2009 and $1.4 million as of December&nbsp;31, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Product Liability</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Like many other industrial companies who have historically operated in the U.S., the Company (or
parties the Company is obligated to indemnify) continues to be named as one of many defendants in
asbestos-related personal injury actions. We believe that the Company&#146;s involvement is limited
because, in general, these claims relate to a few types of automotive friction products that were
manufactured many years ago and contained encapsulated asbestos. The nature of the fibers, the
encapsulation and the manner of use lead the Company to believe that these products are highly
unlikely to cause harm. As of June&nbsp;30, 2009 and December&nbsp;31, 2008 the Company had approximately
24,000 and 27,000 pending asbestos-related product liability claims, respectively. Of the 24,000
outstanding claims at June&nbsp;30, 2009, approximately 13,000 were pending in just three jurisdictions,
where significant tort and judicial reform activities are underway.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s policy is to aggressively defend against these lawsuits and the Company has been
successful in obtaining dismissal of many claims without any payment. The Company expects that the
vast majority of the pending asbestos-related product liability claims where it is a defendant (or
has an obligation to indemnify a defendant) will result in no payment being made by the Company or
its insurers. In the first six months of 2009, of the approximately 3,400 claims resolved, only
104 (3.1%) resulted in any payment being made to a claimant by or on behalf of the Company. In
2008, of the approximately 17,500 claims resolved, only 210 (1.2%) resulted in any payment being
made to a claimant by or on behalf of the Company.
Prior to June&nbsp;2004, the settlement and defense costs associated with all claims were covered by the
Company&#146;s primary layer insurance coverage, and these carriers administered, defended, settled and
paid all claims under a funding arrangement. In June&nbsp;2004, primary layer insurance carriers
notified the Company of the alleged exhaustion of their policy limits. This led the Company to
access the next available layer of insurance coverage. Since June&nbsp;2004, secondary layer insurers
have paid asbestos-related litigation defense and settlement expenses pursuant to a funding
arrangement. To date, the Company has paid $63.0&nbsp;million in defense and indemnity in advance of
insurers&#146; reimbursement and has received $15.4&nbsp;million in cash from insurers. The outstanding
balance of $47.6&nbsp;million is expected to be fully recovered. Timing of the recovery is dependent on
final resolution of the declaratory judgment action referred to below. At December&nbsp;31, 2008,
insurers owed $35.9&nbsp;million in association with these claims.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2009, the Company has an estimated liability of $40.3&nbsp;million for future claims
resolutions, with a related asset of $40.3&nbsp;million to recognize the insurance proceeds receivable
by the Company for estimated losses related to claims that have yet to be resolved. Insurance
carrier reimbursement of 100% is expected based on the Company&#146;s experience, its insurance
contracts and decisions received to date in the declaratory judgment action referred to below. At
December&nbsp;31, 2008, the comparable value of the insurance receivable
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and accrued liability was $34.7
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amounts recorded in the Consolidated Balance Sheets related to the estimated future settlement
of existing claims are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepayments and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other non-current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total insurance receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other non-current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total accrued liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company cannot reasonably estimate possible losses, if any, in excess of those for which it has
accrued, because it cannot predict how many additional claims may be brought against the Company
(or parties the Company has an obligation to indemnify) in the future, the allegations in such
claims, the possible outcomes, or the impact of tort reform legislation that may be enacted at the
State or Federal levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A declaratory judgment action was filed in January&nbsp;2004 in the Circuit Court of Cook County,
Illinois by Continental Casualty Company and related companies (&#147;CNA&#148;) against the Company and
certain of its other historical general liability insurers. CNA provided the Company with both
primary and additional layer insurance, and, in conjunction with other insurers, is currently
defending and indemnifying the Company in its pending asbestos-related product liability claims.
The lawsuit seeks to determine the extent of insurance coverage available to the Company including
whether the available limits exhaust on a &#147;per occurrence&#148; or an &#147;aggregate&#148; basis, and to
determine how the applicable coverage responsibilities should be apportioned. On August&nbsp;15, 2005,
the Court issued an interim order regarding the apportionment matter. The interim
order has the effect of making insurers responsible for all defense and settlement costs pro rata
to time-on-the-risk, with the pro-ration method to hold the insured harmless for periods of
bankrupt or unavailable coverage. Appeals of the interim order were denied. However, the issue is
reserved for appellate review at the end of the action. In addition to the primary insurance
available for asbestos-related claims, the Company has substantial additional layers of insurance
available for potential future asbestos-related product claims. As such, the Company continues to
believe that its coverage is sufficient to meet foreseeable liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although it is impossible to predict the outcome of pending or future claims or the impact of tort
reform legislation that may be enacted at the State or Federal levels, due to the encapsulated
nature of the products, the Company&#146;s experiences in aggressively defending and resolving claims in
the past, and the Company&#146;s significant insurance coverage with solvent carriers as of the date of
this filing, management does not believe that asbestos-related product liability claims are likely
to have a material adverse effect on the Company&#146;s results of operations, cash flows or financial
condition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>New Accounting Pronouncements</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In September&nbsp;2006, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of
Financial Accounting Standards No.&nbsp;157, Fair Value Measurements (&#147;FAS 157&#148;). FAS 157 defines
fair value, establishes a framework for measuring fair value in GAAP and expands disclosures
about fair value measurements. On January&nbsp;1, 2009, the Company fully adopted as required, FAS
157. See Note 9 to the Consolidated Financial Statements for more information regarding the
implementation of FAS 157.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued Statement of Financial Accounting Standards No.&nbsp;141 (Revised
2007), Business Combinations <font style="white-space: nowrap">(&#147;FAS 141(R)&#148;).</font> FAS 141(R) establishes principles and requirements
for recognizing identifiable assets acquired, liabilities assumed, noncontrolling interest in the
acquiree, goodwill acquired in the combination or the gain from a bargain purchase, and disclosure
requirements. Under this revised statement, all costs incurred to effect an acquisition will be
recognized separately from the acquisition. Also, restructuring costs that are expected but the
acquirer is not obligated to incur will be recognized separately from the acquisition. On January
1, 2009, the Company adopted FAS 141(R). In the first quarter of 2009, the Company expensed $4.8
million related to on-going acquisition related activity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued Statement of Financial Accounting Standards No.&nbsp;160,
Noncontrolling Interests in Consolidated Financial Statements (&#147;FAS 160&#148;). Effective January&nbsp;1,
2009, the Company adopted FAS 160. For consolidated subsidiaries that are less than wholly owned,
the third party holdings of equity interests are referred to as noncontrolling interests. The
portion of net income (loss)&nbsp;attributable to noncontrolling interests for such subsidiaries is
presented as net income (loss)&nbsp;applicable to non-controlling interest on the consolidated statement
of operation, and the portion of stockholders&#146; equity of such subsidiaries is presented as
noncontrolling interest on the consolidated balance sheet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The adoption of FAS 160 did not have a material impact on the Company&#146;s financial condition,
results of operations or cash flows. However, it did impact the presentation and disclosure of
noncontrolling (minority)&nbsp;interests in our consolidated financial statements and notes to the
consolidated financial statements. As a result of the retrospective presentation and disclosure
requirements of SFAS 160, the Company was required to reflect the change in presentation and
disclosure for the period ending March&nbsp;31, 2009 and all periods presented in future filings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year balance sheets related to the adoption of SFAS 160 is
summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD nowrap align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"><u>Balance
Sheet</u><BR>
<font style="font-size: 8pt">(millions)</font></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2008</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,006.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase for SFAS 160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total stockholders&#146; equity, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,037.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year statement of operations related to the adoption of SFAS 160
is summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="font-size: 10pt"><u>Consolidated Statement of Operations</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">92.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Net earnings attributable to noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">87.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year statement of cash flows related to the adoption of SFAS 160
is summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="font-size: 10pt"><u>Statement of Cash Flows</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">188.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Net earnings attributable to noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">176.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="font-size: 10pt"><u>Statement of Cash Flows</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in affiliates&#146; earnings, net of dividends received,
minority interest and other, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(11.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity in affiliates&#146; earnings, net of dividends received and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal effect on the prior year comprehensive income related to the adoption of SFAS 160 is
summarized as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="font-size: 10pt"><u>Comprehensive Income (Loss)</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">(millions)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income, as previously reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">91.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">266.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SFAS No.&nbsp;160 reclass of non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">94.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">263.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: Comprehensive income (loss)&nbsp;attributable to noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to BorgWarner Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">91.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">266.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In March&nbsp;2008, the FASB issued Statement of Financial Accounting Standards No.&nbsp;161, Disclosures
about Derivative Instruments and Hedging Activities (&#147;FAS 161&#148;). FAS 161 requires entities to
provide enhanced disclosures about how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for under Statement 133 and its
related interpretations, and how derivative instruments and related hedged items affect an entity&#146;s
financial position, financial performance, and cash flows. On January&nbsp;1, 2009, the Company adopted
FAS 161. See Note 10 to the Consolidated Financial Statements for more information regarding the
implementation of <font style="white-space: nowrap">FAS 161.</font>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2008, the FASB issued FASB Staff Position No.&nbsp;APB 14-1, Accounting for Convertible Debt
Instruments That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement) (&#147;FSP
APB 14-1&#148;). Under FSP APB 14-1, an entity must separately account for the liability and equity
components of the convertible debt instruments that may be settled entirely or partially in cash
upon conversion in a manner
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> that reflects the issuer&#146;s interest cost. FSP APB 14-1 is effective
for fiscal years beginning after December&nbsp;15, 2008, and for interim periods within those fiscal
years, with retrospective application required. As a result of our adoption of FSP APB 14-1 for
fiscal 2009 and the Company&#146;s April&nbsp;9, 2009 issuance of $373.8&nbsp;million convertible senior notes due
April&nbsp;15, 2012, we recorded the equity and liability components of the notes on our June&nbsp;30, 2009
Condensed Consolidated Balance Sheet. Additionally, FSP APB 14-1 requires us to accrete the
discounted carrying value of the convertible notes to their face value over the term of the notes.
The Company&#146;s interest expense associated with this amortization is based on the effective interest
rate of the convertible senior notes of 9.365%. The financial statement impact to the Company&#146;s
Consolidated Statement of Operations for the second quarter will be interest expense recognition of
approximately $7.4&nbsp;million, of which $4.2&nbsp;million is non-cash. For the full year of 2009, interest
expense will be approximately $22.5&nbsp;million, of which approximately $12.8&nbsp;million will be non-cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See Note 8 to the Condensed Consolidated Financial Statements for more information regarding this
issuance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2008, the FASB issued Staff Position 132(R)-1, Employers&#146; Disclosures about
Postretirement Benefit Plan Assets <font style="white-space: nowrap">(&#147;FAS 132(R)-1&#148;).</font> FAS 132(R)-1 requires entities to provide
enhanced disclosures about how investment allocation decisions are made, the major categories of
plan assets, the inputs and valuation techniques used to measure fair value of plan assets, the
effect of fair value measurements using significant unobservable inputs on changes in plan assets
for the period, and significant concentrations of risk within plan assets. FAS 132(R)-1 is
effective for the Company beginning with its year ending December&nbsp;31, 2009. The Company is
currently assessing the potential impacts, if any, on its consolidated financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;165, Subsequent Events
(&#147;FAS 165&#148;). FAS 165 requires entities to disclose the date through which subsequent events have
been evaluated, as well as whether that date is the date the financial statements were issued or
the date the financial statements were available to be issued. The Company adopted FAS 165 in the
second quarter of 2009 and has evaluated all subsequent events through July&nbsp;29, 2009 (the date the
Company&#146;s financial statements are issued).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;166, Accounting for
Transfer of Financial Assets &#150; an amendment of FASB Statement No.&nbsp;140 (&#147;FAS 166&#148;). FAS 166 removes
the concept of a qualifying special-purpose entity from Statement 140 and removes the exception
from applying FASB Interpretation No.&nbsp;46, Consolidation of Variable Interest Entities, to
qualifying special-purpose entities. This Statement modifies the financial-components approach
used in Statement 140 and limits the circumstances in which a financial asset, or portion of a
financial asset, should be derecognized. Additionally, enhanced disclosures are required to
provide financial statement users with greater transparency about transfers of financial assets and
a transferor&#146;s continuing involvement with transferred financial assets. FAS 166 is effective for
the Company beginning with its quarter ending March&nbsp;31, 2010. The adoption of FAS 166 is not
expected to have a material impact on the Company&#146;s consolidated financial position, results of
operations or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;167, Amendments to
FASB Interpretation No.&nbsp;46(R) (&#147;FAS 167&#148;). FAS 167 amends Interpretation No.&nbsp;46(R) to require
ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest
entity. Additionally, FAS 167 requires enhanced disclosures that will provide users of financial
statements with more transparent information about an enterprise&#146;s involvement in variable interest
entities. FAS 167 is effective for the Company beginning with its quarter ending March&nbsp;31,
2010. The adoption of FAS 167 is not expected to have a material impact on the Company&#146;s
consolidated financial position, results of operations or cash flows.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2009, the FASB issued Statement of Financial Accounting Standards No.&nbsp;168, The FASB
Accounting Standards Codification and the
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hierarchy of Generally Accepted Accounting Principles.
This FASB instituted a major change in the way accounting standards are organized. The accounting
standards Codification became the single official source of authoritative, nongovernmental U.S.
generally accepted accounting principles (&#147;GAAP&#148;). After final approval by the FASB only one level
of authoritative GAAP will exist, other than guidance issued by the Securities and Exchange
Commission. All other literature will be non-authoritative. The Codification is effective for the
Company beginning with its quarter ending September&nbsp;30, 2009. The adoption of the Codification
will have no impact on the Company&#146;s consolidated financial position, results of operations or cash
flows.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Statements contained in this Form 10-Q (including Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations) may contain forward-looking statements as contemplated by the
1995 Private Securities Litigation Reform Act that are based on management&#146;s current outlook,
expectations, estimates and projections. Words such as &#147;outlook&#148;, &#147;expects,&#148; &#147;anticipates,&#148;
&#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148; &#147;estimates,&#148; variations of such words and similar expressions are
intended to identify such forward-looking statements. Forward-looking statements are subject to
risks and uncertainties, many of which are difficult to predict and generally beyond our control,
that could cause actual results to differ materially from those expressed, projected or implied in
or by the forward-looking statements. Such risks and uncertainties include: fluctuations in
domestic or foreign vehicle production, the continued use of outside suppliers, fluctuations in
demand for vehicles containing our products, changes in general economic conditions, as well as the
other risks detailed in our filings with the Securities and Exchange Commission, including the Risk
Factors, identified in the Form 10-K for the fiscal year ended December&nbsp;31, 2008. We do not
undertake any obligation to update any forward-looking statements.
</DIV>

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;3.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Quantitative and Qualitative Disclosure About Market Risk</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There have been no material changes to the information concerning our exposures to market risk as
stated in the Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2008.
</DIV>

<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;4.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Controls and Procedures</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company maintains disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) that are designed to provide reasonable assurance that the information
required to be disclosed in the reports it files with the Securities and Exchange Commission is
collected and then processed, summarized and disclosed within the time periods specified in the
rules of the Securities and Exchange Commission. Under the supervision and with the participation
of the Company&#146;s management, including the Company&#146;s Chief Executive Officer and Chief Financial
Officer, the Company has evaluated the effectiveness of the design and operation of its disclosure
controls and procedures as of the end of the period covered by this report. Based on such
evaluation, the Company&#146;s Chief Executive Officer and Chief Financial Officer have concluded that
these procedures are effective. There have been no changes in internal control over financial
reporting that occurred during the period covered by this report that have materially affected, or
are reasonably likely to materially affect, the Company&#146;s internal control over financial
reporting.
</DIV>

<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>PART II. OTHER INFORMATION</B></U>
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;1.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Legal Proceedings</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company is subject to a number of claims and judicial and administrative proceedings (some of
which involve substantial amounts) arising out of the Company&#146;s business or relating to matters for
which the Company may have a contractual indemnity obligation. See Note 14 &#150; Contingencies to the
condensed consolidated financial statements for a discussion of environmental, product liability
and other litigation, which is incorporated herein by reference.
</DIV>

<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;4.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Submission of Matters to a Vote of Security Holders</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;29, 2009, the Company held its Annual Meeting of Shareholders. The following nominees for
Class&nbsp;I Directors were elected to three year terms on the Company&#146;s Board of Directors: Phyllis O.
Bonanno, Alexis P. Michas, Richard O. Schaum and Thomas T. Stallkamp. Dennis C. Cuneo was elected
as a Class&nbsp;III Director and will serve an initial two year term.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->48<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Jere A. Drummond, Timothy M. Manganello, Ernest J. Novak, Jr., Robin J. Adams, and David T. Brown
continue to serve as directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At such meeting, the following votes were cast in each proposal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proposal 1: The election of Directors of the Company:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Shares</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares For</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Withheld</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Phyllis O. Bonanno</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,292,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,690,157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Alexis P. Michas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,419,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,563,166</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Richard O. Schaum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,775,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">207,193</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas T. Stallkamp</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,771,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,866</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dennis C. Cuneo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,774,089</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208,904</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proposal 2: To approve the Amendment to the Company&#146;s Amended and Restated 2004 Stock Incentive
Plan to increase the number of shares authorized under the plan from 10,000,000 to 12,500,000:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">For</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Against</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Abstain</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">81,170,305
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10,239,220
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">70,696</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proposal 3: To ratify the appointment of PricewaterhouseCoopers LLP as independent registered
public accounting firm for the Company for 2009:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">For</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Against</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Abstain</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">97,832,646
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">115,836
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34,509</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;5.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Other Information</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the Annual Meeting of Stockholders held April&nbsp;29, 2009, non-employee Class&nbsp;I Directors were each
granted 9,289 shares of restricted stock as equity compensation. The restrictions on shares for
Class&nbsp;I Directors will expire one third annually over a three year period from the date of grant.
Class&nbsp;III Director, Dennis Cuneo, was elected to a new two year term on the Company&#146;s Board of
Directors, and was granted 6,193 shares of restricted stock as equity compensation. Restrictions
on the shares of stock will expire over a two year term, one half in each year. Class&nbsp;III
directors&#146; terms will end in April&nbsp;2011. Non-employee director compensation is more fully
described in the Company&#146;s proxy statement filed for its 2009 Annual Meeting of Stockholders.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->49<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;6.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Exhibits</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule&nbsp;13a-14(a)/15d-14(a) Certification of the
Principal Executive Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;31.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule&nbsp;13a-14(a)/15d-14(a) Certification of the
Principal Financial Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Section&nbsp;1350 Certifications</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;101
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The following materials from BorgWarner Inc.&#146;s Quarterly Report on
Form&nbsp;10-Q for the quarter ended June&nbsp;30, 2009, formatted in XBRL
(Extensible Business Reporting Language): (i)&nbsp;the Condensed Consolidated
Statements of Operations, (ii)&nbsp;the Condensed Consolidated Balance Sheets,
(iii)&nbsp;the Condensed Consolidated Statements of Cash Flows, and (iv)&nbsp;Notes
to the Condensed Consolidated Financial Statements, tagged as blocks of
text</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->50<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SIGNATURES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto duly
authorized.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="1" align="left">
<B>BorgWarner Inc.</B><BR>
<BR>
(Registrant)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  Jeffrey L. Obermayer
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">(Signature)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Jeffrey L. Obermayer<br>
Vice President and Controller<br>
(Principal Accounting Officer)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: July&nbsp;29, 2009
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->51<!-- /Folio -->
</DIV>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>c52544exv31w1.htm
<DESCRIPTION>EX-31.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Exhibit&nbsp;31.1
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Certification of the Principal Executive Officer<BR>
Pursuant to 15 U.S.C. 78m(a) or 78o(d)<BR>
(Section&nbsp;302 of the Sarbanes-Oxley Act of 2002)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Timothy M. Manganello, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this quarterly report on Form 10-Q of BorgWarner Inc.;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">d) Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the
registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal control
over financial reporting; and
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: July&nbsp;29, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">     /s/  Timothy M. Manganello
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Timothy M. Manganello&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>c52544exv31w2.htm
<DESCRIPTION>EX-31.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Exhibit&nbsp;31.2
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Certification of the Principal Financial Officer<BR>
Pursuant to 15 U.S.C. 78m(a) or 78o(d)<BR>
(Section&nbsp;302 of the Sarbanes-Oxley Act of 2002)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Robin J. Adams, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this quarterly report on Form 10-Q of BorgWarner Inc.;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">d) Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the
registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal control
over financial reporting; and
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: July 29, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/  Robin J. Adams
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Robin J. Adams&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Executive Vice President, Chief Financial<br>
Officer &#038; Chief Administrative Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>c52544exv32w1.htm
<DESCRIPTION>EX-32.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv32w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;32.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER<BR>
AND CHIEF FINANCIAL OFFICER<BR>
PURSUANT TO 18 U.S.C. SECTION 1350</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">In connection with the Quarterly Report of BorgWarner Inc. (the &#147;Company&#148;) on Form 10-Q for the
period ended June&nbsp;30, 2009 (the &#147;Report&#148;), each of the undersigned officers of the Company
certifies, pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section&nbsp;1350, that
to the best of such officer&#146;s knowledge:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;the information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: July&nbsp;29, 2009
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Timothy M. Manganello</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Timothy M. Manganello
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Robin J. Adams</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Robin J. Adams
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executive Vice President, Chief Financial Officer<BR>
&#038; Chief Administrative Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A signed original of this written statement required by Section&nbsp;906 has been provided to BorgWarner
Inc. and will be retained by BorgWarner Inc. and furnished to the Securities and Exchange
Commission or its staff upon request.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-101.INS
<SEQUENCE>5
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<DESCRIPTION>EX-101 INSTANCE DOCUMENT
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2008 was derived from the audited financial statements as of that date. For
further information, refer to the consolidated financial statements and footnotes
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Annual Report on Form 10-K for the fiscal year ended December&amp;#160;31,
2008. The Company&amp;#8217;s presentation of the Condensed Consolidated Balance
Sheets, Condensed Consolidated Statements of Operations, Reporting Segments
Note and Comprehensive Income (Loss) Note have been adjusted to conform with
the requirements of Statement of Financial Accounting Standard No.&amp;#160;160,
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style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(2)&amp;#160;Research
and Development&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The following table presents the Company&amp;#8217;s
gross and net expenditures on research and development (&amp;#8220;R&amp;#038;D&amp;#8221;)
activities: &lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="52%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Three
Months Ended&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Six Months Ended&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Gross
R&amp;#038;D expenditures &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;50.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;71.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;99.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;138.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Customer
reimbursements &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(15.0&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(13.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(31.0&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(23.4&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Net
R&amp;#038;D expenditures &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;35.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;57.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;68.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;115.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The Company&amp;#8217;s net R&amp;#038;D
expenditures are included in the selling, general and administrative expenses
of the Condensed Consolidated Statements of Operations. Customer reimbursements
are netted against gross R&amp;#038;D expenditures upon billing of services
performed. The Company has contracts with several customers at the Company&amp;#8217;s
various R&amp;#038;D locations. No such contract exceeded $6&amp;#160;million
in any of the periods presented. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt;
</us-gaap:ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <us-gaap:IncomeTaxDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 3 - us-gaap:IncomeTaxDisclosureTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(3)&amp;#160;Income Taxes&lt;/b&gt; &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The Company&amp;#8217;s
provision for income taxes is normally based on an estimated tax rate for
the year applied to the year-to-date federal, state and foreign income. However,
due to unprecedented depressed global economic conditions there is significant
uncertainty regarding industry production volumes for the remainder of the
year. This precludes us from making a reliable estimate of the annual effective
tax rate for the year. Accordingly, we have made our 2009 income tax provision
pursuant to Financial Accounting Standards Board (&amp;#8220;FASB&amp;#8221;)
Interpretation No.&amp;#160;18, Accounting for Income Taxes in Interim Periods,
which provides that tax (or benefit) in each foreign jurisdiction that is
not subject to a valuation allowance be separately computed as ordinary income/(loss)
occurs within the jurisdiction for the quarter. The actual global effective
tax rate for the six months is calculated to be a benefit of 39%, which resulted
in a 36% tax rate (benefit)&amp;#160;for the second quarter. This represents
an income tax benefit of ($25.7) million on the loss of ($65.9) million for
the first six months of 2009. It results in a ($19.1) million benefit on the
loss of ($53.0) million for the second quarter of 2009. &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;As of June&amp;#160;30,
2009, the balance of gross unrecognized tax benefits was $61.2&amp;#160;million.
Included in the balance at June&amp;#160;30, 2009 was $50.9&amp;#160;million
of tax positions that are permanent in nature and, if recognized, would reduce
the global effective tax rate. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;During the first quarter of 2008, the Company made
a $6.6&amp;#160;million cash payment to the Internal Revenue Service (&amp;#8220;IRS&amp;#8221;)
to resolve agreed upon issues of the ongoing IRS examination of the Company&amp;#8217;s
2002-2004 tax years. Also, there was a reduction in the first quarter of 2008
of $6.7 million related to the Company&amp;#8217;s unrecognized tax benefits
balance due to settlement of the agreed upon issues primarily related to the
Extraterritorial Income Exclusion for the 2002-2004 tax years. The Company
is currently in the process of settling the disputed issues with appeals related
to the 2002-2004 IRS audit. Upon settlement of the IRS audits related to the
periods 2002-2004, the gross unrecognized tax benefits balance will be reevaluated.
Possible changes related to other examinations cannot be reasonably estimated
within the next 12&amp;#160;months. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The Company recognizes interest and penalties related
to unrecognized tax benefits in income tax expense. The Company had accrued
approximately $11.4&amp;#160;million for the payment of interest and penalties
at December&amp;#160;31, 2008. The Company had approximately $12.3&amp;#160;million
for the payment of interest and penalties accrued at June&amp;#160;30, 2009.
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
Company or one of its subsidiaries files income tax returns in the U.S. federal
jurisdiction, and various states and foreign jurisdictions. The Company is
no longer subject to income tax examinations by tax authorities in its major
tax jurisdictions as follows: &lt;/div&gt; &lt;div align="center"&gt; &lt;table
style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0"
width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="88%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="7%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center"&gt;Years No Longer&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"&gt;Tax Jurisdiction&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"&gt;Subject
to Audit&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin
Table Body --&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;U.S. Federal &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top" nowrap="nowrap"&gt;2001
and prior&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Brazil &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;2002
and prior&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;France
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;2006 and prior&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Germany
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;2002 and prior&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Hungary &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;2004 and prior&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Italy
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;2002 and prior&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Japan &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;2006 and prior&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;South
Korea &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;2004 and prior&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;United Kingdom &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;2006 and prior&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;In certain tax jurisdictions the
Company may have more than one taxpayer. The table above reflects the status
of the major taxpayer in each major tax jurisdiction. &lt;/div&gt; &lt;/div&gt;
&lt;/body&gt; &lt;/html&gt; </us-gaap:IncomeTaxDisclosureTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <bwa:SalesOfReceivablesTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 4 - bwa:SalesOfReceivablesTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(4)&amp;#160;Sales of Receivables&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
Company securitized and sold certain receivables through third party financial
institutions without recourse. The amount sold would vary each month based
on the amount of underlying receivables. The maximum size of the facility
was set at $50&amp;#160;million since fourth quarter of 2003. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On April&amp;#160;24,
2009 the Company&amp;#8217;s $50&amp;#160;million receivables securitization
facility matured and was not renewed. The impact of this maturity was an increase
in receivables of $50&amp;#160;million and a decrease in cash of $50&amp;#160;million
in the second quarter of 2009. This is reflected as a Financing activity in
the Condensed Consolidated Statements of Cash Flows. &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;During the six-month
periods ended June&amp;#160;30, 2009 and 2008, total cash proceeds from sales
of accounts receivable were $200&amp;#160;million and $300&amp;#160;million,
respectively. The Company paid servicing fees related to these receivables
for the three and six months ended June&amp;#160;30, 2009 and 2008 of $0.1
million and $0.4&amp;#160;million and $0.4&amp;#160;million and $1.0&amp;#160;million,
respectively. These amounts are recorded in interest expense and finance charges
in the Condensed Consolidated Statements of Operations. &lt;/div&gt; &lt;/div&gt;
&lt;/body&gt; &lt;/html&gt; </bwa:SalesOfReceivablesTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <us-gaap:InventoryDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 5 - us-gaap:InventoryDisclosureTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(5)&amp;#160;Inventories&lt;/b&gt; &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;Inventories
are valued at the lower of cost or market. The cost of U.S. inventories is
determined by the last-in, first-out (&amp;#8220;LIFO&amp;#8221;) method,
while the operations outside the U.S. use the first-in, first-out (&amp;#8220;FIFO&amp;#8221;)
or average-cost methods. Inventories consisted of the following: &lt;/div&gt;
&lt;div align="center"&gt; &lt;table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin
Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="78%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="2%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;June
30,&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;December 31,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Raw
material and supplies &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;190.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;260.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Work
in progress &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;67.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;95.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Finished goods &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;70.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;111.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;FIFO
inventories &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;329.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;467.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;LIFO reserve &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(15.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(16.6&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Inventories,
net &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;313.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;451.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt; </us-gaap:InventoryDisclosureTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 6 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock--&gt;
&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(6)&amp;#160;Property,
Plant &amp;#038; Equipment&lt;/b&gt; &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="78%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="2%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;June
30,&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;December 31,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Land
and buildings &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;624.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;619.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Machinery
and equipment &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1,745.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,756.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Capital
leases &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Construction in progress &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;150.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;160.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Total
property, plant &amp;#038; equipment &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2,521.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;2,537.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px;
text-indent:-15px"&gt;Less accumulated depreciation &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(1,104.5&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(1,047.4&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,416.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1,489.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Tooling, net of amortization &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;85.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;96.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:45px; text-indent:-15px"&gt;Property, plant &amp;#038;
equipment &amp;#8212; net &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;1,502.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;1,586.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;!-- Folio --&gt;
&lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Interest costs capitalized during the six-month
periods ended June&amp;#160;30, 2009 and June&amp;#160;30, 2008 were $5.4
million and $5.5&amp;#160;million, respectively. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;As of June&amp;#160;30, 2009 and
December&amp;#160;31, 2008, accounts payable of $28.7&amp;#160;million and
$43.2&amp;#160;million, respectively, were related to property, plant and
equipment purchases. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt;
margin-top: 6pt"&gt;As of June&amp;#160;30, 2009 and December&amp;#160;31,
2008, specific assets of $3.6&amp;#160;million and $7.4&amp;#160;million,
respectively, were pledged as collateral under certain of the Company&amp;#8217;s
long-term debt agreements. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;As a result of the impairment charges recorded in
the third and fourth quarters of 2008, depreciation expense for the three
and six months ended June&amp;#160;30, 2009 was reduced by approximately $3&amp;#160;million
and $6&amp;#160;million, respectively. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;During the first quarter of 2009, based on current
market conditions and asset utilization rates, the Company elected to extend
the useful lives of certain machinery and equipment. As a result of this change
in estimate, depreciation expense for the three and six months ended June&amp;#160;30,
2009 was reduced by approximately $5&amp;#160;million and $9&amp;#160;million,
respectively. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt; </us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:ProductWarrantyDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 7 - us-gaap:ProductWarrantyDisclosureTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(7)&amp;#160;Product Warranty&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
Company provides warranties on some of its products. The warranty terms are
typically from one to three years. Provisions for estimated expenses related
to product warranty are made at the time products are sold. These estimates
are established using historical information about the nature, frequency,
and average cost of warranty claims. Management actively studies trends of
warranty claims and takes action to improve product quality and minimize warranty
claims. While management believes that the warranty accrual is appropriate,
actual claims incurred could differ from the original estimates, requiring
adjustments to the accrual. The accrual is recorded in both long-term and
short-term liabilities on the balance sheet. The following table summarizes
the activity in the warranty accrual accounts: &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="76%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Six months ended&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Beginning
balance &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;82.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;70.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Provision &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;15.4&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;21.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Payments &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(30.0&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(16.1&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Currency translation &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;0.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Ending
balance &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;67.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;80.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The product warranty liability is classified in the consolidated balance
sheet as follows: &lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="76%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="2%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="7%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;June
30,&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;December 31,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Accounts
payable and accrued expenses &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;42.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;51.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Other
non-current liabilities &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;25.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;30.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Total
product warranty liability &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;67.9&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;82.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;!-- Folio --&gt;
&lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt;
</us-gaap:ProductWarrantyDisclosureTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <us-gaap:DebtDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 8 - us-gaap:DebtDisclosureTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(8)&amp;#160;Notes Payable and Long-Term
Debt&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;Following is a summary of notes payable and long-term debt, including
the current portion. The weighted average interest rate on all borrowings
outstanding as of June&amp;#160;30, 2009 and December&amp;#160;31, 2008 was
6.0% and 5.0%, respectively. &lt;/div&gt; &lt;div align="center"&gt; &lt;table
style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0"
width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="52%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;June 30, 2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;December 31, 2008&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;Current&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;Long-Term&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;Current&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;Long-Term&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Bank borrowings and other &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;51.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;0.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;130.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;1.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td nowrap="nowrap"&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Term loans due through 2015 (at an average rate of 4.1%
in 2009 and 4.9% in 2008) &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;44.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;8.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;53.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;12.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;6.50% Senior Notes
due 2/17/09, net of unamortized discount (a) &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;136.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;3.50% Convertible Notes due 4/15/12, net of unamortized
discount &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;321.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;5.75%
Senior Notes due 11/01/16, net of unamortized discount (a) &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;149.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;149.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;8.00%
Senior Notes due 10/01/19, net of unamortized discount (a) &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;133.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;133.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;7.125% Senior Notes due 02/15/29,
net of unamortized discount &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;119.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;119.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Carrying
amount of notes payable and long-term debt &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;95.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;733.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;320.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;416.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Impact of derivatives
on debt (a) &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;33.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;0.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;43.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Total notes payable and long-term debt &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;95.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;766.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;320.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;459.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7"
align="left" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
3px double #000000"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table
Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"&gt; &lt;div style="font-size:
3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000"&gt;&amp;#160;
&lt;/div&gt; &lt;/div&gt; &lt;table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; text-align: left"&gt; &lt;tr&gt; &lt;td
width="3%"&gt;&lt;/td&gt; &lt;td width="1%"&gt;&lt;/td&gt; &lt;td width="96"&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="top"&gt; &lt;td nowrap="nowrap" align="left"&gt;(a)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;In 2006, the Company entered into
several interest rate swaps that had the effect of converting $325.0&amp;#160;million
of fixed rate notes to variable rates. The weighted average effective interest
rate of these borrowings, including the effects of outstanding swaps as noted
in Note 10 was 5.3% as of December&amp;#160;31, 2008. In the first quarter
of 2009, $100&amp;#160;million in interest rate swaps related to the Company&amp;#8217;s
2009 fixed rate debt matured and the Company terminated $150&amp;#160;million
in interest rate swap agreements related to the Company&amp;#8217;s 2016 fixed
rate debt and $75&amp;#160;million of interest rate swap agreements related
to the Company&amp;#8217;s 2019 fixed rate debt. As a result of the first
quarter 2009 swap terminations, a $34.5&amp;#160;million gain remained in
debt to be amortized over the remaining lives of the respective 2016 and 2019
debt. As of June&amp;#160;30, 2009, the unamortized portion was $33.2&amp;#160;million.&lt;/td&gt;
&lt;/tr&gt; &lt;/table&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The Company has a multi-currency revolving credit facility, which
provided for borrowings up to $600&amp;#160;million through July&amp;#160;22,
2009. On April&amp;#160;30, 2009, the Company extended its revolving credit
facility for 18&amp;#160;months, maturing January&amp;#160;22, 2011. The facility
was reduced to $250&amp;#160;million beginning July&amp;#160;23, 2009. The
facility is now secured by unperfected pledges of the Company&amp;#8217;s
equity interests in its subsidiaries and certain assets. No secured party
is entitled to perfect its lien on any of the collateral until the long term
unsecured senior, non-credit enhanced debt rating of the Company is less than
or equal to BB&amp;#043; by Standard &amp;#038; Poor&amp;#8217;s and less
than or equal to Ba1 by Moody&amp;#8217;s. The Company&amp;#8217;s credit
rating as of June&amp;#160;30, 2009 was BBB by Standard &amp;#038; Poor&amp;#8217;s
and Ba1 by Moody&amp;#8217;s. The three key covenants of the credit agreement
are a net worth test, a debt compared to EBITDA (&amp;#8220;Earnings Before
Interest, Taxes, Depreciation and Amortization&amp;#8221;) test, and an interest
coverage test. The Company was in compliance with all covenants at June&amp;#160;30,
2009 and expects to remain compliant in future periods. At June&amp;#160;30,
2009 and December&amp;#160;31, 2008 there were no outstanding borrowings under
the facility. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The Company&amp;#8217;s 6.5% Senior Notes of $136.7&amp;#160;million
matured on February&amp;#160;17, 2009. The Company had outstanding letters
of credit at June&amp;#160;30, 2009 and December&amp;#160;31, 2008 of $15.2&amp;#160;million
and $21.4 million, respectively. The letters of credit typically act as a
guarantee of payment to certain third parties in accordance with specified
terms and conditions. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;On April&amp;#160;9, 2009, the Company issued $373.8&amp;#160;million
in convertible senior notes due April&amp;#160;15, 2012. Under FASB Staff
Position No.&amp;#160;APB 14-1, Accounting for Convertible Debt Instruments
That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement)
(&amp;#8220;FSP APB 14-1&amp;#8221;), the Company must account for the convertible
senior notes by bifurcating the instrument between their liability and equity
components. The value of the debt component is based on the fair value of
issuing a similar nonconvertible debt security. The equity component of the
convertible debt security is calculated by deducting the value of the liability
from the proceeds received at issuance. Therefore, the Company&amp;#8217;s
June&amp;#160;30, 2009 Condensed Consolidated Balance Sheet includes an increase
in debt of $321.7&amp;#160;million and an increase in capital in excess of
par of $34.6&amp;#160;million. Additionally, FSP APB 14-1 requires us to accrete
the discounted carrying value of the convertible notes to their face value
over the term of the notes. The Company&amp;#8217;s interest expense associated
with this bond accretion is based on the effective interest rate of the convertible
senior notes of 9.365%. The total interest expense related to the convertible
notes in the Company&amp;#8217;s Consolidated Statement of Operations was
$7.4&amp;#160;million for the second quarter, of which $4.2&amp;#160;million
was non-cash. For the full year of 2009, interest expense related to the convertible
notes will be approximately $22.5 million, of which approximately $12.8&amp;#160;million
will be non-cash. The notes will pay interest semi-annually of $6.5&amp;#160;million,
which is at a coupon rate of 3.50% per year, beginning in October of this
year. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;Holders of the notes may convert their notes at their option at any
time prior to the close of business on the second scheduled trading day immediately
preceding the maturity date of the notes, in multiples of $1,000 principal
amount. The initial conversion rate for the notes is 30.4706 shares of the
Company&amp;#8217;s common stock per $1,000 principal amount of notes (representing
an initial conversion price of approximately $32.82 per share of common stock).
The conversion price represents a conversion premium of 27.5% over the last
reported sale price of the Company&amp;#8217;s common stock on the New York
Stock Exchange on April&amp;#160;6, 2009, of $25.74 per share. As of June&amp;#160;30,
2009, the if-converted value of the 3.50% Convertible Senior Notes was approximately
$15.2&amp;#160;million. In conjunction with the note offering, the Company
entered into a bond hedge overlay at a net pre-tax cost of $25.2&amp;#160;million,
effectively raising the conversion premium to 50.0%, or approximately $38.61
per share. Upon conversion, the Company will pay or deliver cash, shares of
our common stock or a combination thereof at our election. The convertible
senior notes were issued under the Company&amp;#8217;s $750&amp;#160;million
universal shelf registration filed with the Securities and Exchange Commission,
leaving approximately $376&amp;#160;million available as of June&amp;#160;30,
2009. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;As of June&amp;#160;30, 2009 and December&amp;#160;31, 2008, the estimated
fair values of the Company&amp;#8217;s senior unsecured notes totaled $743.1&amp;#160;million
and $532.3&amp;#160;million, respectively. The estimated fair values were
$19.1&amp;#160;million higher at June&amp;#160;30, 2009 and $6.7&amp;#160;million
lower at December&amp;#160;31, 2008 than their respective carrying values.
Fair market values are developed by the use of estimates obtained from brokers
and other appropriate valuation techniques based on information available
as of quarter-end and year-end. The fair value estimates do not necessarily
reflect the values the Company could realize in the current markets. &lt;/div&gt;
&lt;/div&gt; &lt;/body&gt; &lt;/html&gt; </us-gaap:DebtDisclosureTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:FairValueDisclosuresTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 9 - us-gaap:FairValueDisclosuresTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(9)&amp;#160;Fair Value Measurements&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On
January&amp;#160;1, 2009, the Company fully adopted as required, Statement
of Financial Accounting Standards No.&amp;#160;157 &amp;#8211; &amp;#8220;Fair
Value Measurements&amp;#8221; (&amp;#8220;SFAS 157&amp;#8221;) which expands
the disclosure of fair value measurements and its impact on the Company&amp;#8217;s
financial statements. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Statement No.&amp;#160;157 emphasizes that fair
value is a market-based measurement, not an entity specific measurement. Therefore,
a fair value measurement should be determined based on assumptions that market
participants would use in pricing an asset or liability. As a basis for considering
market participant assumptions in fair value measurements, SFAS 157 establishes
a fair value hierarchy, which prioritizes the inputs used in measuring fair
values as follows: &lt;/div&gt; &lt;div align="left" style="margin-top: 6pt"&gt;
&lt;table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; background: transparent; color: #000000; text-align: left"&gt; &lt;tr&gt;
&lt;td width="3%"&gt;&lt;/td&gt; &lt;td width="1%"&gt;&lt;/td&gt; &lt;td&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="top"&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Level
1:&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;Observable inputs
such as quoted prices in active markets;&lt;/td&gt; &lt;/tr&gt; &lt;/table&gt;
&lt;/div&gt; &lt;div align="left" style="margin-top: 6pt"&gt; &lt;table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background:
transparent; color: #000000; text-align: left"&gt; &lt;tr&gt; &lt;td width="3%"&gt;&lt;/td&gt;
&lt;td width="1%"&gt;&lt;/td&gt; &lt;td&gt;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="top"&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Level
2:&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;Inputs, other than
quoted prices in active markets, that are observable either directly or indirectly;
and&lt;/td&gt; &lt;/tr&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="margin-top: 6pt"&gt; &lt;table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000;
text-align: left"&gt; &lt;tr&gt; &lt;td width="3%"&gt;&lt;/td&gt; &lt;td width="1%"&gt;&lt;/td&gt;
&lt;td&gt;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="top"&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Level 3:&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;Unobservable inputs in which there
is little or no market data, which require the reporting entity to develop
its own assumptions.&lt;/td&gt; &lt;/tr&gt; &lt;/table&gt; &lt;/div&gt; &lt;!--
Folio --&gt; &lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div
style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;Assets and liabilities measured
at fair value are based on one or more of the following three valuation techniques
noted in SFAS 157: &lt;/div&gt; &lt;div style="margin-top: 6pt"&gt; &lt;table
width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; text-align: left"&gt; &lt;tr valign="top" style="font-size: 10pt; color:
#000000; background: transparent"&gt; &lt;td width="4%" style="background:
transparent"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%" nowrap="nowrap" align="left"&gt;A.&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;Market approach: Prices
and other relevant information generated by market transactions involving
identical or comparable assets or liabilities.&lt;/td&gt; &lt;/tr&gt; &lt;tr&gt;
&lt;td style="font-size: 6pt"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="top" style="font-size: 10pt; color: #000000; background: transparent"&gt;
&lt;td width="4%" style="background: transparent"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%" nowrap="nowrap" align="left"&gt;B.&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;Cost approach: Amount that would be required to replace the service
capacity of an asset (replacement cost).&lt;/td&gt; &lt;/tr&gt; &lt;tr&gt;
&lt;td style="font-size: 6pt"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="top" style="font-size: 10pt; color: #000000; background: transparent"&gt;
&lt;td width="4%" style="background: transparent"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%" nowrap="nowrap" align="left"&gt;C.&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;Income approach: Techniques to convert future amounts to a single
present amount based upon market expectations (including present value techniques,
option-pricing and excess earnings models).&lt;/td&gt; &lt;/tr&gt; &lt;/table&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
following table classifies the assets and liabilities measured at fair value
during the period ended June&amp;#160;30, 2009: &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="40%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="7%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Basis of Fair Value Measurements&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Quoted&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Prices
in&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Significant&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Active&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Other&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Significant&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Balance
at&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Markets for&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Observable&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Unobservable&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;June
30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Identical Items&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;Inputs&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;Inputs&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center"&gt;&lt;b&gt;Valuation&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt; &lt;tr
style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;(Level 1)&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;(Level
2)&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;(Level 3)&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Technique&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Assets: &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Commodity contracts &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;6.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;6.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;A&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Foreign
exchange contracts &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;4.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;A&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Fixed assets &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;11.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;11.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;B&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;&lt;!--
Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;22.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;10.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;11.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;&lt;!--
Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Liabilities:
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Commodity contracts &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;2.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;2.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;A&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Foreign exchange contracts
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;26.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;26.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;A&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Net
investment hedge contracts &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;43.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;43.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;A&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;&lt;!--
Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;72.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;72.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
10pt"&gt;The change in the fair value of the Company&amp;#8217;s net fixed
assets impaired in 2009 is as follows: &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="88%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Fair Value&lt;br
/&gt; Measurements&lt;br /&gt; Using Significant&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Unobservable
&lt;br /&gt; Inputs&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;(Level 3)&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Net
book value prior to impairment &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;48.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:30px; text-indent:-15px"&gt;Asset impairment charge
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(36.3&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Net
book value after impairment &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;11.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt; </us-gaap:FairValueDisclosuresTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 10 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock--&gt;
&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(10)&amp;#160;Financial
Instruments&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;On January&amp;#160;1, 2009, the Company adopted
as required, Statement of Financial Accounting Standards No.&amp;#160;161,
&amp;#8220;Disclosures about Derivative Instruments and Hedging Activities&amp;#8221;
(&amp;#8220;SFAS 161&amp;#8221;) which expands the disclosure of financial
instruments. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The Company&amp;#8217;s financial instruments include cash, marketable
securities, trade receivables, trade payables, and notes payable. Due to the
short-term nature of these instruments, their book value approximates their
fair value. The Company&amp;#8217;s financial instruments also include long-term
debt, interest rate and currency swaps, commodity forward contracts, and foreign
currency forward contracts. All derivative contracts are placed with counterparties
that have an S&amp;#038;P, or equivalent, investment grade credit rating at
the time of the contracts&amp;#8217; placement. At June&amp;#160;30, 2009
the Company had no derivative contracts that contained credit risk related
contingent features. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt;
margin-top: 6pt"&gt;The Company selectively uses cross-currency swaps to hedge
the foreign currency exposure associated with our net investment in certain
foreign operations (net investment hedges). Fair values of cross currency
swaps are based on observable inputs, such as interest rate, yield curves,
credit risks, currency exchange rates and other external valuation methodology
(Level 2 inputs under SFAS 157). &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The Company uses certain commodity derivative instruments
to protect against commodity price changes related to forecasted raw material
and supplies purchases. The primary purpose of our commodity price hedging
activities is to manage the volatility associated with these forecasted purchases.
The Company primarily utilizes forward and option contracts, which are designated
as cash flow hedges. The fair values for certain commodity derivative instruments
are based on Level 2 evidence (for example, future prices reported on commodity
exchanges) under SFAS 157. To the extent that derivative instruments are deemed
to be effective as defined by FAS 133, gains and losses arising from these
contracts are deferred in other comprehensive income or loss. Such gains and
losses will be reclassified into income as the underlying operating transactions
are realized. Gains and losses not qualifying for deferral treatment have
been credited/charged to income as they are recognized. &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The Company uses
foreign exchange forward and option contracts to protect against exchange
rate movements for forecasted cash flows for purchases, operating expenses
or sales transactions designated in currencies other than the functional currency
of the operating unit. Most contracts mature in less than one year, however,
certain long-term commitments are covered by forward currency arrangements
to protect against currency risk through 2011. Foreign currency contracts
require the Company, at a future date, to either buy or sell foreign currency
in exchange for the operating units&amp;#8217; local currency. To the extent
that derivative instruments are deemed to be effective as defined by FAS 133,
gains and losses arising from these contracts are deferred in other comprehensive
income or loss. Such gains and losses will be reclassified into income as
the underlying operating transactions are realized. Gains and losses not qualifying
for deferral treatment have been credited/charged to income as they are recognized.
The fair values of foreign exchange forward and option contracts are based
on Level 2 inputs under SFAS 157, such as quoted exchange rates by various
exchanges. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;In 2006, the Company entered into a series of interest rate swap agreements
to effectively convert a portion of its senior notes from fixed to variable
interest rates and were designated as fair value hedges for the senior notes.
In the first quarter of 2009, $100&amp;#160;million of interest rate swap
agreements relating to the 2009 fixed-rate debt matured. Also, in the first
quarter of 2009, the Company terminated $150&amp;#160;million of interest
rate swap agreements relating to the 2016 fixed rate debt and $75&amp;#160;million
of interest rate swap agreements relating to the 2019 fixed rate debt. The
early termination of the 2016 and 2019 interest rate swap agreements resulted
in a gain of $34.5&amp;#160;million that will be amortized as a reduction
of interest expense over the remaining life of the respective 2016 and 2019
debt. The Company recognized $5.7&amp;#160;million in interest expense in
the first quarter of 2009 as a result of the early termination. This early
termination also resulted in the Company receiving net cash proceeds of $30.0&amp;#160;million,
which is recognized in the Financing section of the Condensed Consolidated
Statement of Cash Flows. As of June&amp;#160;30, 2009, there were no outstanding
interest rate swap agreements. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Effectiveness for cash flow, fair value and net
investment hedges is assessed at the inception of the hedging relationship
and quarterly, thereafter. Ineffectiveness is measured quarterly and results
are recognized in earnings. &lt;/div&gt; &lt;!-- Folio --&gt; &lt;!-- /Folio
--&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family: 'Times
New Roman',Times,serif"&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The Company selectively uses cross-currency swaps to hedge the foreign
currency exposure associated with our net investment in certain foreign operations
(net investment hedges). At June&amp;#160;30, 2009 the following cross-currency
swaps were outstanding: &lt;/div&gt; &lt;div align="center"&gt; &lt;table
style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0"
width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="40%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="6%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="6%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="6%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Cross-Currency Swaps&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;&amp;#160;&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;Notional&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;Notional&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;in USD&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;in Local Currency&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Duration&lt;/b&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Floating
$ to Floating &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;75.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;&lt;/td&gt;
&lt;td align="right"&gt;58.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="3" align="center"&gt;Nov - 16&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Floating
$ to Floating &amp;#165; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;150.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#165;&lt;/td&gt;
&lt;td align="right"&gt;17,581.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="3" align="center"&gt;Oct -
19&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;At June&amp;#160;30,
2009 the following commodity derivative contracts were outstanding: &lt;/div&gt;
&lt;div align="center"&gt; &lt;table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin
Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="8%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="37%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="9"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Commodity Hedges&lt;/b&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;Volume&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;Units
of&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Commodity&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Hedged&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Measure&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Duration&lt;/b&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Nickel &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,302&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td NOWRAP
colspan="3" valign="top" align="center"&gt;Metric Tons&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 10&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Copper &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,432&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="3"
valign="top" align="center"&gt;Metric Tons&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 10&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Aluminum &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;504&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="3" valign="top" align="center"&gt;Metric
Tons&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 10&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Platinum &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;510&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="3"
valign="top" align="center"&gt;Troy Oz.&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 09&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Natural Gas &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;334,584&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="3"
valign="top" align="center"&gt;MMBtu&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 10&lt;/td&gt; &lt;/tr&gt; &lt;!--
End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;At June&amp;#160;30, 2009 the following foreign
exchange derivative contracts were outstanding: &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;(millions) &lt;/div&gt; &lt;div
align="center"&gt; &lt;table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt;
&lt;tr valign="bottom"&gt; &lt;td width="10%"&gt;&amp;#160;&lt;/td&gt; &lt;td
width="35%"&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" width="12%" align="center"
valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="3%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="7%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="center" colspan="9"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Currency Hedges&lt;/b&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left"&gt;&lt;b&gt;Functional&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;&lt;b&gt;Traded&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;Notional
in&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Currency&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Currency&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Traded Currency&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Duration&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt; &lt;!--
End Table Head --&gt; &lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Brazilian Real &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;US Dollar&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 09&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;British Pound &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Euro&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;127.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Dec - 11&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Euro
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Hungarian Forint&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4,712.4&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Dec - 10&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Euro &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;British
Pound&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;2.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 09&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Euro &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;US Dollar&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;13.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 09&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Euro &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Japanese
Yen&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1,348.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 09&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Indian Rupee
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;US Dollar&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;10.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 11&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Korean
Won &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Euro&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;56.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 10&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Korean Won &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Japanese Yen&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;574.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 09&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Mexican Peso &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;US Dollar&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2.9&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Dec - 09&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;US
Dollar &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Indian Rupee&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;511.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Dec - 11&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;US
Dollar &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center"
valign="top"&gt;Euro&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;55.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Jul - 09&lt;/td&gt; &lt;/tr&gt; &lt;tr
valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;US Dollar &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="center" valign="top"&gt;Japanese Yen&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;47.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="center" valign="top"&gt;Dec
- 09 &lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt; &lt;/table&gt;
&lt;/div&gt; &lt;!-- Folio --&gt; &lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!--
PAGEBREAK --&gt; &lt;div style="font-family: 'Times New Roman',Times,serif"&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 0pt"&gt; At June&amp;#160;30,
2009 the following amounts were recorded in the Company&amp;#8217;s balance
sheet as being payable to or receivable from counterparties. &lt;/div&gt;
&lt;div align="center"&gt; &lt;table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin
Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="22%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="5"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="5"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;Derivatives
Designated as Hedging&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="5" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Assets&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="5" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Liabilities&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt; &lt;tr
style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"&gt; &lt;b&gt;Instruments under&lt;/b&gt;
&lt;b&gt;Statement 133 &lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Location&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Location&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End
Table Head --&gt; &lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Foreign
Exchange Contracts &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top" nowrap="nowrap"&gt;Prepayments and Other
Current Assets&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;3.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top" nowrap="nowrap"&gt;Accounts Payable and Accrued
Expenses&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;$&lt;/td&gt;
&lt;td align="right" valign="top"&gt;18.1&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;Other
Non-Current Assets&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;0.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;Other Non-Current Liabilities&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;8.1&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Commodity Contracts &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;Prepayments and Other Current Assets&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.4&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"
valign="top"&gt;Accounts Payable and Accrued Expenses&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"
valign="top"&gt;2.6&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;Other Non-Current Assets&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;Other
Non-Current Liabilities&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="right" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;&amp;#8212;&lt;/td&gt;
&lt;td valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Net Investment Hedges &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;Prepayments and Other Current Assets&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"
valign="top"&gt;Accounts Payable and Accrued Expenses&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"
valign="top"&gt;&amp;#8212;&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;Other
Non-Current Assets&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;Other
Non-Current Liabilities&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="right" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;43.4&lt;/td&gt;
&lt;td valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table
Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Netted in the $43.4&amp;#160;million carrying value
of the Net Investment Hedges is a $4.3&amp;#160;million favorable adjustment
for non-performance risk in accordance with FAS 157. &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The table below shows
deferred losses at the end of the period reported in other comprehensive income
(loss) (OCI)&amp;#160;and amounts expected to be reclassified to income or
loss within the next twelve months. The loss expected to be reclassified to
income or loss in one year or less assumes no change in the current relationship
of the hedged item and June&amp;#160;30, 2009 market rates. &lt;/div&gt; &lt;div
align="center"&gt; &lt;table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt;
&lt;tr valign="bottom"&gt; &lt;td width="22%"&gt;&amp;#160;&lt;/td&gt; &lt;td
width="58%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;&amp;#160;&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Gain/(Loss)&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Gain/(Loss) Expected to&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;in OCI at&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;be Reclassified to Income&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Contract Type&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;June 30, 2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;in One Year or Less&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Foreign
Exchange &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(17.3&lt;/td&gt; &lt;td
nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(9.4&lt;/td&gt; &lt;td
nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Commodity &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;0.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net Investment Hedges &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(39.2&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Total &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(53.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(8.5&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The following tables
represent gains (losses)&amp;#160;related to hedge transactions for the three
and six months ended June&amp;#160;30, 2009. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;Cash Flow hedges held during the
period resulted in the following gains and losses recorded in income. The
effective portion of gains or losses exactly offset losses or gains in the
underlying transaction that they were designated to hedge, and are recorded
on the same line in the income statement. Ineffectiveness resulting from imperfect
matches between changes in value of hedge contracts and changes in value of
the underlying transaction are immediately recognized in earnings. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Derivatives
Designated as Cash Flow Hedging Instruments under Statement 133&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="28%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;Gain/(Loss) Reclassified&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"&gt;Gain/(Loss)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6"&gt;from OCI to Income&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;Recognized in Income&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"&gt;(Effective
Portion)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"&gt;(Ineffective
Portion)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;Three Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Six
Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;Three Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Six
Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"&gt;Contract Type&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="LEFT" style="border-bottom: 1px solid #000000"&gt;Location&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="LEFT" style="border-bottom:
1px solid #000000"&gt;Location&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Foreign Exchange &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;Sales&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;(1.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;(8.1&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top" nowrap="nowrap"&gt;SG&amp;#038;A
Expense&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="right" valign="top"&gt;$&lt;/td&gt; &lt;td align="right" valign="top"&gt;(1.9&lt;/td&gt;
&lt;td nowrap="nowrap" valign="top"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="right" valign="top"&gt;$&lt;/td&gt; &lt;td align="right"
valign="top"&gt;(1.3&lt;/td&gt; &lt;td nowrap="nowrap" valign="top"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Foreign Exchange &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top" nowrap="nowrap"&gt;Cost of Goods Sold&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;3.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;SG&amp;#038;A Expense&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"
valign="top"&gt;0.5&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;0.8&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Foreign Exchange &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;SG&amp;#038;A
Expense&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="right"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(0.4&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(0.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left" valign="top"&gt;SG&amp;#038;A Expense&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"
valign="top"&gt;&amp;#8212;&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;&amp;#8212;&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Commodity &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;Cost of Goods Sold&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(2.5&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(7.0&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left" valign="top" nowrap="nowrap"&gt;Cost of Goods Sold&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right" valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;1.5&lt;/td&gt; &lt;td valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right" valign="top"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right" valign="top"&gt;(1.4&lt;/td&gt; &lt;td nowrap="nowrap"
valign="top"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt; &lt;/table&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;Net
investment hedges are derivative contracts entered into to hedge against changes
in exchange rates that affect the overall value of net investments in foreign
entities. Gains and losses on net investment hedges are recorded in other
comprehensive income or loss and are used to offset equivalent losses or gains
in the value of net investments that are recorded in translation gains and
losses which is also a component of other comprehensive income or loss. &lt;/div&gt;
&lt;!-- Folio --&gt; &lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK
--&gt; &lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;u&gt;&lt;b&gt;Derivatives
Designated as Net Investment Hedges under Statement 133&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="28%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="7%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;Gain/(Loss) Reclassified&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"&gt;Gain/(Loss)
Recognized&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6"&gt;from OCI to Income&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;in Income&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"&gt;(Effective
Portion)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"&gt;(Ineffective
Portion)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;Three Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Six
Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;Three Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Six
Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr
style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"&gt;Contract Type&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"&gt;Location&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="LEFT" style="border-bottom:
1px solid #000000"&gt;Location&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2009&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Cross-Currency
Swap &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"
valign="top"&gt;(None)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"
valign="top" nowrap="nowrap"&gt;Interest Expense&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;$&lt;/td&gt; &lt;td align="right" valign="top"&gt;6.6&lt;/td&gt;
&lt;td valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left" valign="top"&gt;$&lt;/td&gt; &lt;td align="right" valign="top"&gt;0.9&lt;/td&gt;
&lt;td valign="top"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table
Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The Company may also enter into derivative contracts
that are not designated as hedging instruments as defined by FAS 133. Undesignated
derivative instruments substantially pertain to foreign exchange contracts
that are used to offset the impact of foreign currency denominated assets
and liabilities. The company does not apply hedge accounting because the gain
(loss)&amp;#160;on the derivative contract is generally offset by the SFAS
No.&amp;#160;52, &amp;#8220;Foreign Currency Translation,&amp;#8221; (SFAS
No.&amp;#160;52) remeasurement gain (loss)&amp;#160;of the foreign currency
asset or liability in the same reporting period. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;u&gt;&lt;b&gt;Derivatives
Not Designated as Hedging Instruments under Statement 133&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="14%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="35%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6"&gt;&lt;b&gt;(Loss) Recorded in&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Income on Derivative&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Three
Months Ended&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Six Months Ended&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"&gt;&lt;b&gt;Contract Type&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Location&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;June 30, 2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;June 30, 2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Foreign Exchange &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="3" align="center" nowrap="nowrap"&gt;SG&amp;#038;A
Expense&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;(0.7&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left" valign="top"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;(1.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;At June&amp;#160;30,
2009 derivative instruments that are designated as fair value hedging instruments
as defined by FAS 133 were immaterial. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt;
&lt;/html&gt; </us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock
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XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
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&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(11)&amp;#160;Retirement
Benefit Plans&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The Company has a number of defined benefit pension
plans and other post employment benefit plans covering eligible salaried and
hourly employees and their dependents. The other post employment benefit plans,
which provide medical and life insurance benefits, are unfunded plans. The
estimated contributions to the Company&amp;#8217;s defined benefit pension
plans for 2009 range from $15 to $35 million, of which $6.7&amp;#160;million
has been contributed through the first six months of the year. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On February&amp;#160;26,
2009, the Company&amp;#8217;s subsidiary, BorgWarner Diversified Transmission
Products Inc. (&amp;#8220;DTP&amp;#8221;), entered into a Plant Shutdown Agreement
with the United Auto Workers (&amp;#8220;UAW&amp;#8221;) for its Muncie, Indiana
automotive component plant (the &amp;#8220;Muncie Plant&amp;#8221;). Management
subsequently wound-down production activity at the plant, with operations
effectively ceased as of March&amp;#160;31, 2009. As a result of the closure
of the Muncie Plant, the Company recorded a curtailment gain of $41.9&amp;#160;million
in the first quarter of 2009. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The Plant Shutdown Agreement with the UAW for the
Muncie Plant also included a settlement of a portion of the UAW retiree health
care obligation, resulting in the remeasurement of the retiree medical plan.
The financial impact of this settlement resulted in expense recognition of
$14.0 million, a $47.2&amp;#160;million reduction to retirement-related liabilities,
a $27.2&amp;#160;million increase in accumulated other comprehensive income
and a $34.0&amp;#160;million increase in accounts payable and accrued expenses
in the first quarter of 2009. The $34.0&amp;#160;million in accounts payable
and accrued expenses will be paid in monthly installments, which began in
May&amp;#160;2009 and will conclude in April&amp;#160;2010. With the plant
closing announcement, the Company has entered into discussions with the Pension
Benefit Guaranty Corporation regarding potential funding of the Muncie Plant&amp;#8217;s
defined benefit pension plan. &lt;/div&gt; &lt;!-- Folio --&gt; &lt;!-- /Folio
--&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family: 'Times
New Roman',Times,serif"&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The combined pre-tax impact of these actions was a net gain of $27.9&amp;#160;million,
comprised of a $41.9 million curtailment gain and $14.0&amp;#160;million settlement
loss on the Company&amp;#8217;s Condensed Consolidated Statements of Operations
as of March&amp;#160;31, 2009. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The weighted average discount rate used to determine
the benefit obligation of the Company&amp;#8217;s retiree medical plan as
of March&amp;#160;31, 2009 was 8.00%. This represents a 100 basis point increase
from the 7.00% weighted average discount rate used at year-end 2008. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In June&amp;#160;2009,
the Company announced its plan to freeze its defined benefit plan at its Bradford
plant in the United Kingdom in consultation with affected employees and their
representatives. The effect of this change is expected to be that participants
in the Bradford defined benefit plan will cease to accrue defined benefits
after October&amp;#160;1, 2009. Future pension benefits will be earned within
an existing defined contribution plan going forward. The financial impact
of this change was a $3.7&amp;#160;million reduction to retirement-related
liabilities, a $3.5 increase in accumulated other comprehensive income and
$0.2&amp;#160;million in income recognition in the second quarter of 2009.
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
weighted average discount rate used to determine the benefit obligation of
the Company&amp;#8217;s Bradford defined benefit plan as of June&amp;#160;30,
2009 was 6.50%. This represents a 25 basis point increase from the 6.25% weighted
average discount rate used at year-end 2008. &lt;/div&gt; &lt;!-- Folio --&gt;
&lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The components of net periodic benefit cost recorded
in the Company&amp;#8217;s Condensed Consolidated Statements of Operations
are as follows: &lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="28%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="3%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="7"&gt;&lt;b&gt;Other post&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Pension benefits&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 0px
solid #000000"&gt;&lt;b&gt;employment&lt;/b&gt;&lt;/td&gt; &lt;/tr&gt; &lt;tr
style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"&gt;Three months ended June 30,&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;benefits&lt;/b&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;US&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;Non-US&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;US&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;Non-US&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="3"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td
nowrap="nowrap"&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&lt;b&gt;Components
of net periodic benefit cost:&lt;/b&gt; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Service
cost &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;2.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;0.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;2.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;0.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;0.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Interest cost &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;5.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;4.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;5.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;4.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;5.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Expected return on plan assets &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(4.0&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(2.4&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(7.1&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(3.4&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Settlement/Curtailment
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Amortization of unrecognized
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:30px; text-indent:-15px"&gt;prior service benefit
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="right"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(0.2&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(1.3&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="right"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(5.4&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Amortization of unrecognized
loss &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;0.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;0.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;2.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Net periodic benefit cost (benefit) &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;2.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;4.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(1.0&lt;/td&gt; &lt;td
nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;3.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;$&lt;/td&gt; &lt;td align="right"&gt;5.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;3.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
3px double #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div
align="center"&gt; &lt;table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt;
&lt;tr valign="bottom"&gt; &lt;td width="28%"&gt;&amp;#160;&lt;/td&gt; &lt;td
width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6"&gt;&lt;b&gt;Other post&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="14"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Pension benefits&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;employment&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"&gt;Six months ended June 30,&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;benefits&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;US&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Non-US&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;US&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Non-US&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td nowrap="nowrap"&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&lt;b&gt;Components of net periodic benefit cost:&lt;/b&gt;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Service cost &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;0.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;5.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;1.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;4.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;0.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;1.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Interest
cost &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;10.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;8.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;10.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;9.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;10.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;11.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Expected return on
plan assets &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(8.1&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(4.6&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(14.2&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(6.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Settlement/Curtailment
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(61.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)*&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Amortization of unrecognized &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px;
text-indent:-15px"&gt;prior service benefit &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(0.2&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(9.3&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(10.7&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Amortization of unrecognized
loss &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;3.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;0.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;5.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
1px solid #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Net periodic benefit cost (benefit) &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;6.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;9.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(2.0&lt;/td&gt; &lt;td
nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;7.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(56.2&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;7.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
3px double #000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td colspan="7" align="left" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td colspan="7" align="left" style="border-top:
3px double #000000"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table
Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"&gt; &lt;div style="font-size:
3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000"&gt;&amp;#160;
&lt;/div&gt; &lt;/div&gt; &lt;table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; text-align: left"&gt; &lt;tr&gt; &lt;td
width="3%"&gt;&lt;/td&gt; &lt;td width="1%"&gt;&lt;/td&gt; &lt;td width="96"&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="top"&gt; &lt;td nowrap="nowrap" align="left"&gt;&lt;b&gt;*&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;Note: In the six months ended June&amp;#160;30,
2009 table above, the settlement/curtailment of $61.9 million was offset by
the $34.0&amp;#160;million cost to settle, resulting in a net pre-tax gain
of $27.9 million.&lt;/td&gt; &lt;/tr&gt; &lt;/table&gt; &lt;/div&gt; &lt;/body&gt;
&lt;/html&gt; </us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
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XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 12 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock--&gt;
&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(12)&amp;#160;Stock-Based
Compensation&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Under the Company&amp;#8217;s 1993 Stock Incentive
Plan (&amp;#8220;1993 Plan&amp;#8221;), the Company granted options to purchase
shares of the Company&amp;#8217;s common stock at the fair market value on
the date of grant. The options vest over periods up to three years and have
a term of ten years from date of grant. As of December&amp;#160;31, 2003,
there were no options available for future grants under the 1993 Plan. The
1993 Plan expired at the end of 2003 and was replaced by the Company&amp;#8217;s
2004 Stock Incentive Plan, which was amended at the Company&amp;#8217;s 2009
Annual Stockholders Meeting, among other things, to increase the number of
shares available for issuance under the Plan. Under the BorgWarner Inc. Amended
and Restated 2004 Stock Incentive Plan (&amp;#8220;2004 Stock Incentive Plan&amp;#8221;),
the number of shares authorized for grant was 12,500,000, of which approximately
2,700,000 shares are available for future issuance. As of June&amp;#160;30,
2009, there were a total of 5,462,118 outstanding options under the 1993 and
2004 Stock Incentive Plans. &lt;/div&gt; &lt;!-- Folio --&gt; &lt;!-- /Folio
--&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family: 'Times
New Roman',Times,serif"&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;Stock option compensation expense reduced income before income taxes
and net earnings for the three months ended June&amp;#160;30, 2009 and 2008
by $2.4&amp;#160;million and $1.9&amp;#160;million ($0.02 per basic and diluted
share) and by $3.5&amp;#160;million and $2.7&amp;#160;million ($0.02 per basic
and diluted share), respectively. Stock option compensation expense reduced
income before income taxes and net earnings for the six months ended June&amp;#160;30,
2009 and 2008 by $4.1&amp;#160;million and $3.2&amp;#160;million ($0.03 per
basic and diluted share) and by $7.1&amp;#160;million and $5.3&amp;#160;million
($0.05 and $0.04 per basic and diluted shares, respectively). Stock option
compensation expense affected both operating activities ($4.1&amp;#160;million
and $7.1&amp;#160;million non-cash charge backs) and financing activities
($0.9&amp;#160;million and $1.8&amp;#160;million tax benefits) of the Condensed
Consolidated Statements of Cash Flows for the six months ended June&amp;#160;30,
2009 and 2008, respectively. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Total unrecognized compensation cost related to
nonvested stock options at June&amp;#160;30, 2009 was approximately $3.5&amp;#160;million.
This cost is expected to be recognized over the next 0.6&amp;#160;years. On
a weighted average basis, this cost is expected to be recognized over 0.3&amp;#160;years.
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;A
summary of the plans&amp;#8217; shares under option as of and for the six
months ended June&amp;#160;30, 2009 is as follows: &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="52%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Weighted&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Shares&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Weighted&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Average&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Aggregate&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Under&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Average&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Remaining&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Intrinsic&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Option&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Exercise&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Contractual&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Value&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;(thousands)&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Price&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Life
(in years)&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;(in millions)&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Outstanding at December&amp;#160;31,
2008 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;5,798&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;27.86&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px;
text-indent:-15px"&gt;Exercised &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(10&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;13.25&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Forfeited
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(195&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;29.63&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Outstanding at March&amp;#160;31,
2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;5,593&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;27.82&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;6.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;4.9&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Exercised
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(119&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;21.37&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:30px; text-indent:-15px"&gt;Forfeited &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(48&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;31.04&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:30px; text-indent:-15px"&gt;Other &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;36&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;25.72&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Outstanding at June&amp;#160;30,
2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;5,462&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;27.92&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;6.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;35.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;&lt;!--
Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Options exercisable at June&amp;#160;30,
2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;4,091&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;26.48&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;5.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;32.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;At its November&amp;#160;2007 meeting, our Compensation Committee
decided that restricted common stock would be awarded in place of stock options
for long-term incentive award grants to employees. These restricted shares
for employees vest fifty percent after two years and the remainder after three
years from the date of grant. The Company also grants restricted common stock
to its non-employee directors. For non-employee directors restricted shares
vest ratably on the anniversary of the date of the grant over a period of
three years. The market value of the Company&amp;#8217;s restricted common
stock at the date of grant determines the value of the restricted common stock.
In February&amp;#160;2009, 1,000,643 restricted shares were granted to employees
under the 2004 Stock Incentive Plan. The value of the awards is recorded as
unearned compensation within capital in excess of par value in stockholders&amp;#8217;
equity, and is amortized as compensation expense over the restriction periods.
The Company recognized compensation expense related to restricted common stock
of $4.0&amp;#160;million and $2.6&amp;#160;million for the three months ended
June&amp;#160;30, 2009 and 2008, respectively and $7.7&amp;#160;million and
$4.6&amp;#160;million for the six months ended June&amp;#160;30, 2009 and
2008, respectively. &lt;/div&gt; &lt;!-- Folio --&gt; &lt;!-- /Folio --&gt;
&lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family: 'Times New
Roman',Times,serif"&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;A summary of the status of the Company&amp;#8217;s nonvested restricted
stock as of and for the six months ended June&amp;#160;30, 2009 is as follows:
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="76%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Shares&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Subject
to&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Weighted&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;Restriction&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2"&gt;&lt;b&gt;Average&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;(thousands)&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Price&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Nonvested
at December&amp;#160;31, 2008 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;661.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;45.29&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Granted
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1,000.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;20.30&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Forfeited
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(23.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;37.73&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Nonvested
at March&amp;#160;31, 2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,638.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;30.14&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt;&lt;!-- Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Granted
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;43.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;27.78&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:30px; text-indent:-15px"&gt;Lapsed &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(8.7&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;58.00&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Forfeited
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(35.7&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;30.59&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Nonvested
at June&amp;#160;30, 2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,637.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;29.92&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;In calculating earnings or loss
per share, earnings or loss are the same for the basic and diluted calculations.
Shares increased for diluted earnings per share for the three and six months
ended June&amp;#160;30, 2008 by 2,132,000 and 2,178,000, respectively due
to the effects of stock options issued and issuable and restricted shares
issued under the 1993 Plan and 2004 Stock Incentive Plan. There was no dilutive
impact to the weighted average shares outstanding for the three and six months
ended June&amp;#160;30, 2009 due to the Company&amp;#8217;s net loss. &lt;/div&gt;
&lt;/div&gt; &lt;/body&gt; &lt;/html&gt; </us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:ComprehensiveIncomeNoteTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 13 - us-gaap:ComprehensiveIncomeNoteTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(13)&amp;#160;Comprehensive Income&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
amounts presented as changes in accumulated other comprehensive income, net
of related taxes, are added to net earnings (loss)&amp;#160;resulting in comprehensive
income. The following table summarizes the components of comprehensive income
on an after-tax basis for the three and six month periods ended June&amp;#160;30,
2009 and 2008. &lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="52%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Three
months ended&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Six months ended&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Foreign
currency translation adjustments, net &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;66.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(4.8&lt;/td&gt; &lt;td
nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;7.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;108.9&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Market value change
in hedge instruments, net &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;21.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;11.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;48.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(21.3&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Defined benefit post employment plans, net &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;6.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Bond hedge on 3.50% convertible notes, net &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(36.7&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(36.7&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Warrant on 3.50% convertible
notes, net &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;31.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;31.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Unrealized gain (loss)
on available-for-sale securities, net &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;0.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(0.1&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;0.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:30px; text-indent:-15px"&gt;Change in accumulated other
comprehensive income &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;86.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;6.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;56.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;87.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Net earnings (loss)&amp;#160;attributable to BorgWarner
Inc. &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(35.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;87.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(42.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;176.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:30px; text-indent:-15px"&gt;Comprehensive income &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;50.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;94.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;13.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;263.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Comprehensive income
(loss)&amp;#160;attributable to the noncontrolling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(0.6&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(2.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(2.0&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Comprehensive
income attributable to BorgWarner Inc. &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;50.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;91.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;11.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;266.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;/div&gt; &lt;/body&gt;
&lt;/html&gt; </us-gaap:ComprehensiveIncomeNoteTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <us-gaap:CommitmentsAndContingenciesDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
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Tagged Note 14 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock--&gt;
&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(14)&amp;#160;Contingencies&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In
the normal course of business the Company and its subsidiaries are parties
to various commercial and legal claims, actions and complaints, including
matters involving warranty claims, intellectual property claims, general liability
and various other risks. It is not possible to predict with certainty whether
or not the Company and its subsidiaries will ultimately be successful in any
of these commercial and legal matters or, if not, what the impact might be.
The Company&amp;#8217;s environmental and product liability contingencies
are discussed separately below. The Company&amp;#8217;s management does not
expect that the results in any of these commercial and legal claims, actions
and complaints will have a material adverse effect on the Company&amp;#8217;s
results of operations, financial position or cash flows. &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Litigation
&lt;/b&gt;&lt;/u&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt;
margin-top: 6pt"&gt;In January&amp;#160;2006, DTP, a subsidiary of the Company,
filed a declaratory judgment action in United States District Court, Southern
District of Indiana (Indianapolis Division) against the United Automobile,
Aerospace, and Agricultural Implements Workers of America (&amp;#8220;UAW&amp;#8221;)
Local No.&amp;#160;287 and Gerald Poor, individually and as the representative
of a defendant class. DTP sought the Court&amp;#8217;s affirmation that DTP
did not violate the Labor-Management Relations Act or the Employee Retirement
Income Security Act by unilaterally amending certain medical plans effective
April&amp;#160;1, 2006 and October&amp;#160;1, 2006, prior to the expiration
of the current collective bargaining agreements. On September&amp;#160;10,
2008, the Court found that DTP&amp;#8217;s reservation of the right to make
such amendments reducing the level of benefits provided to retirees was limited
by its collectively bargained health insurance agreement with the UAW, which
did not expire until April&amp;#160;24, 2009. Thus, the amendments were untimely.
In 2008 the Company recorded a charge of $4.0&amp;#160;million as a result
of the Court&amp;#8217;s decision. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;DTP filed a declaratory judgment action in the United
States District Court, Southern District of Indiana (Indianapolis Division)
against the UAW Local No.&amp;#160;287 and Jim Barrett and others individually,
and as representatives of a defendant class, on February&amp;#160;26, 2009
again seeking the Court&amp;#8217;s affirmation that DTP will not violate
the Labor &amp;#8212; Management Relations Act or the Employment Retirement
Income Security Act (ERISA)&amp;#160;by modifying the level of benefits provided
retirees to make them comparable to other Company retiree benefit plans after
April&amp;#160;24, 2009. Certain retirees, on behalf of themselves and others,
filed a mirror-image action in the United States District Court, Eastern District
of Michigan (Southern District) on March&amp;#160;11, 2009. Both actions are
pending. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The Company has communicated its plan to modify the level of benefits
provided to the retirees to make them comparable to other Company retiree
benefit plans effective May&amp;#160;1, 2009. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Environmental&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
Company and certain of its current and former direct and indirect corporate
predecessors, subsidiaries and divisions have been identified by the United
States Environmental Protection Agency and certain state environmental agencies
and private parties as potentially responsible parties (&amp;#8220;PRPs&amp;#8221;)
at various hazardous waste disposal sites under the Comprehensive Environmental
Response, Compensation and Liability Act (&amp;#8220;Superfund&amp;#8221;)
and equivalent state laws and, as such, may presently be liable for the cost
of clean-up and other remedial activities at 37 such sites. Responsibility
for clean-up and other remedial activities at a Superfund site is typically
shared among PRPs based on an allocation formula. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The Company believes that none
of these matters, individually or in the aggregate, will have a material adverse
effect on its results of operations, financial position, or cash flows. Generally,
this is because either the estimates of the maximum potential liability at
a site are not large or the liability will be shared with other PRPs, although
no assurance can be given with respect to the ultimate outcome of any such
matter. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;Based on information available to the Company (which in most cases
includes: an estimate of allocation of liability among PRPs; the probability
that other PRPs, many of whom are large, solvent public companies, will fully
pay the cost apportioned to them; currently available information from PRPs
and/or federal or state environmental agencies concerning the scope of contamination
and estimated remediation and consulting costs; remediation alternatives;
and estimated legal fees), the Company has established an accrual for indicated
environmental liabilities with a balance at June&amp;#160;30, 2009 of $12.3&amp;#160;million.
The Company has accrued amounts that do not exceed $4.0&amp;#160;million related
to any individual site and we do not believe that the costs related to any
of these sites will have a material adverse effect on the Company&amp;#8217;s
results of operations, cash flows or financial condition. The Company expects
to pay out substantially all of the amounts accrued for environmental liability
over the next three to five years. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;In connection with the sale of Kuhlman Electric
Corporation, the Company agreed to indemnify the buyer and Kuhlman Electric
for certain environmental liabilities, then unknown to the Company, relating
to certain operations of Kuhlman Electric that pre-date the Company&amp;#8217;s
1999 acquisition of Kuhlman Electric. During 2000, Kuhlman Electric notified
the Company that it discovered potential environmental contamination at its
Crystal Springs, Mississippi plant while undertaking an expansion of the plant.
The Company is continuing to work with the Mississippi Department of Environmental
Quality and Kuhlman Electric to investigate and remediate to the extent necessary,
historical contamination at the plant and surrounding area. Kuhlman Electric
and others, including the Company, were sued in numerous related lawsuits,
in which multiple claimants alleged personal injury and property damage. In
2005, the Company and other defendants entered into settlements that resolved
approximately 99% of the then known personal injury and property damage claims
relating to the alleged environmental contamination. Those settlements involved
payments by the Company of $28.5&amp;#160;million in the second half of 2005
and $15.7&amp;#160;million in the first quarter of 2006, in exchange for,
among other things, dismissal with prejudice of these lawsuits. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;Four additional
lawsuits were filed against Kuhlman Electric and others, including the Company,
in 2007 and 2008 on behalf of approximately 340 plaintiffs, alleging personal
injury relating to the alleged environmental contamination. Given the early
stage of the litigation, the Company cannot make any predictions as to the
outcome, but its current intent is to vigorously defend against the suits.
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Conditional
Asset Retirement Obligations&lt;/b&gt;&lt;/u&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;In March&amp;#160;2005, the FASB
issued Interpretation No.&amp;#160;47, Accounting for Conditional Asset Retirement
Obligations &amp;#8212; an interpretation of FASB Statement No.&amp;#160;143
(&amp;#8220;FIN 47&amp;#8221;), which requires the Company to recognize legal
obligations to perform asset retirements in which the timing and/or method
of settlement are conditional on a future event that may or may not be within
the control of the entity. Certain government regulations require the removal
and disposal of asbestos from an existing facility at the time the facility
undergoes major renovations or is demolished. The liability exists because
the facility will not last forever, but it is conditional on future renovations
(even if there are no immediate plans to remove the materials, which pose
no health or safety hazard in their current condition). Similarly, government
regulations require the removal or closure of underground storage tanks and
above ground storage tanks when their use ceases, the disposal of polychlorinated
biphenyl transformers and capacitors when their use ceases, and the disposal
of used furnace bricks and liners, and lead-based paint in conjunction with
facility renovations or demolition. The Company currently has 32 manufacturing
locations that have been identified as containing these items. The fair value
to remove and dispose of this material has been estimated and recorded at
$1.7 million as of June&amp;#160;30, 2009 and $1.4 million as of December&amp;#160;31,
2008. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;&lt;u&gt;&lt;b&gt;Product Liability&lt;/b&gt;&lt;/u&gt; &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;Like many
other industrial companies who have historically operated in the U.S., the
Company (or parties the Company is obligated to indemnify) continues to be
named as one of many defendants in asbestos-related personal injury actions.
We believe that the Company&amp;#8217;s involvement is limited because, in
general, these claims relate to a few types of automotive friction products
that were manufactured many years ago and contained encapsulated asbestos.
The nature of the fibers, the encapsulation and the manner of use lead the
Company to believe that these products are highly unlikely to cause harm.
As of June&amp;#160;30, 2009 and December&amp;#160;31, 2008 the Company had
approximately 24,000 and 27,000 pending asbestos-related product liability
claims, respectively. Of the 24,000 outstanding claims at June&amp;#160;30,
2009, approximately 13,000 were pending in just three jurisdictions, where
significant tort and judicial reform activities are underway. &lt;/div&gt;
&lt;!-- Folio --&gt; &lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK
--&gt; &lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The Company&amp;#8217;s
policy is to aggressively defend against these lawsuits and the Company has
been successful in obtaining dismissal of many claims without any payment.
The Company expects that the vast majority of the pending asbestos-related
product liability claims where it is a defendant (or has an obligation to
indemnify a defendant) will result in no payment being made by the Company
or its insurers. In the first six months of 2009, of the approximately 3,400
claims resolved, only 104 (3.1%) resulted in any payment being made to a claimant
by or on behalf of the Company. In 2008, of the approximately 17,500 claims
resolved, only 210 (1.2%) resulted in any payment being made to a claimant
by or on behalf of the Company. Prior to June&amp;#160;2004, the settlement
and defense costs associated with all claims were covered by the Company&amp;#8217;s
primary layer insurance coverage, and these carriers administered, defended,
settled and paid all claims under a funding arrangement. In June&amp;#160;2004,
primary layer insurance carriers notified the Company of the alleged exhaustion
of their policy limits. This led the Company to access the next available
layer of insurance coverage. Since June&amp;#160;2004, secondary layer insurers
have paid asbestos-related litigation defense and settlement expenses pursuant
to a funding arrangement. To date, the Company has paid $63.0&amp;#160;million
in defense and indemnity in advance of insurers&amp;#8217; reimbursement and
has received $15.4&amp;#160;million in cash from insurers. The outstanding
balance of $47.6&amp;#160;million is expected to be fully recovered. Timing
of the recovery is dependent on final resolution of the declaratory judgment
action referred to below. At December&amp;#160;31, 2008, insurers owed $35.9&amp;#160;million
in association with these claims. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;At June&amp;#160;30, 2009, the Company has an estimated
liability of $40.3&amp;#160;million for future claims resolutions, with a
related asset of $40.3&amp;#160;million to recognize the insurance proceeds
receivable by the Company for estimated losses related to claims that have
yet to be resolved. Insurance carrier reimbursement of 100% is expected based
on the Company&amp;#8217;s experience, its insurance contracts and decisions
received to date in the declaratory judgment action referred to below. At
December&amp;#160;31, 2008, the comparable value of the insurance receivable
and accrued liability was $34.7 million. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The amounts recorded in the Consolidated
Balance Sheets related to the estimated future settlement of existing claims
are as follows: &lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="66%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="10%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="10%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;June
30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;December 31,&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Assets:
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px;
text-indent:-15px"&gt;Prepayments and other current assets &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;22.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;22.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Other
non-current assets &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;17.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;12.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:45px; text-indent:-15px"&gt;Total insurance receivable
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;40.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;34.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt;&lt;!--
Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Liabilities: &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Accounts
payable and accrued expenses &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;22.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;22.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:30px; text-indent:-15px"&gt;Other non-current liabilities
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;17.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;12.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:45px; text-indent:-15px"&gt;Total
accrued liability &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;40.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;34.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The Company cannot reasonably
estimate possible losses, if any, in excess of those for which it has accrued,
because it cannot predict how many additional claims may be brought against
the Company (or parties the Company has an obligation to indemnify) in the
future, the allegations in such claims, the possible outcomes, or the impact
of tort reform legislation that may be enacted at the State or Federal levels.
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;A
declaratory judgment action was filed in January&amp;#160;2004 in the Circuit
Court of Cook County, Illinois by Continental Casualty Company and related
companies (&amp;#8220;CNA&amp;#8221;) against the Company and certain of its
other historical general liability insurers. CNA provided the Company with
both primary and additional layer insurance, and, in conjunction with other
insurers, is currently defending and indemnifying the Company in its pending
asbestos-related product liability claims. The lawsuit seeks to determine
the extent of insurance coverage available to the Company including whether
the available limits exhaust on a &amp;#8220;per occurrence&amp;#8221; or
an &amp;#8220;aggregate&amp;#8221; basis, and to determine how the applicable
coverage responsibilities should be apportioned. On August&amp;#160;15, 2005,
the Court issued an interim order regarding the apportionment matter. The
interim order has the effect of making insurers responsible for all defense
and settlement costs pro rata to time-on-the-risk, with the pro-ration method
to hold the insured harmless for periods of bankrupt or unavailable coverage.
Appeals of the interim order were denied. However, the issue is reserved for
appellate review at the end of the action. In addition to the primary insurance
available for asbestos-related claims, the Company has substantial additional
layers of insurance available for potential future asbestos-related product
claims. As such, the Company continues to believe that its coverage is sufficient
to meet foreseeable liabilities. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Although it is impossible to predict the outcome
of pending or future claims or the impact of tort reform legislation that
may be enacted at the State or Federal levels, due to the encapsulated nature
of the products, the Company&amp;#8217;s experiences in aggressively defending
and resolving claims in the past, and the Company&amp;#8217;s significant
insurance coverage with solvent carriers as of the date of this filing, management
does not believe that asbestos-related product liability claims are likely
to have a material adverse effect on the Company&amp;#8217;s results of operations,
cash flows or financial condition. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt;
&lt;/html&gt; </us-gaap:CommitmentsAndContingenciesDisclosureTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <bwa:LeasesAndCommitmentsTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 15 - bwa:LeasesAndCommitmentsTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(15)&amp;#160;Leases and Commitments&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The
Company has guaranteed the residual values of certain leased machinery and
equipment at one of its facilities. The guarantees extend through the maturity
of the underlying lease, which is in September&amp;#160;2010. In the event
the Company exercises its option not to purchase the machinery and equipment,
the Company has guaranteed a residual value of $7.7&amp;#160;million. The
Company has accrued $4.1&amp;#160;million as a loss on this guarantee, which
is expected to be paid in 2009. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt;
</bwa:LeasesAndCommitmentsTextBlock> <!-- End Block Tagged Note --> <!-- Begin Block Tagged Note -->
<us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 16 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock--&gt;
&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(16)&amp;#160;Restructuring&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In
the second quarter of 2009, the Company took additional restructuring actions.
The Company reduced its North American workforce by approximately 550 people,
or 12%; its European workforce by approximately 150 people, or 2%; and its
Asian workforce by approximately 60 people, or 3% in the second quarter. The
net restructuring expense recognized in the second quarter was $9.0&amp;#160;million
for employee termination benefits. In addition to employee termination costs,
the Company recorded $36.3&amp;#160;million of asset impairment and $5.0&amp;#160;million
of other charges in the second quarter of 2009 related to the North American
and European restructuring. The combined 2009 restructuring expenses of $50.3&amp;#160;million
are broken out by segment as follows: Engine $27.2&amp;#160;million, Drivetrain
$19.7&amp;#160;million and Corporate $3.4 million. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;Included in the second quarter
of 2009 asset impairment charge is $22.3&amp;#160;million related to one of
the Company&amp;#8217;s European locations. During the second quarter of 2009
circumstances caused the Company to evaluate the long range outlook of the
facility using an undiscounted and discounted cash flow model, both of which
indicated that assets were impaired. The Company then used an estimate of
cost replacement to determine the fair value of the assets at the facility.
This reduction of asset value was included in the Engine segment. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On July&amp;#160;31,
2008, the Company announced a restructuring of its operations to align ongoing
operations with a continuing, fundamental market shift in the auto industry.
As a continuation of the Company&amp;#8217;s third quarter restructuring,
on December&amp;#160;11, 2008, the Company announced plans for additional
restructuring actions. As a result of these third and fourth quarter 2008
restructuring actions, the Company has reduced its North American workforce
by approximately 2,400 people, or 33%; its European workforce by approximately
1,600 people, or 18%; and its Asian workforce by approximately 400 people,
or 17%. The restructuring expense recognized in 2008 for employee termination
benefits is $54.6&amp;#160;million. In addition to employee termination costs,
the Company recorded $72.9&amp;#160;million of asset impairment charges in
2008 related to the North American and European restructuring. The combined
2008 restructuring expenses of $127.5&amp;#160;million are broken out by segment
as follows: Engine $85.3&amp;#160;million, Drivetrain $40.9&amp;#160;million
and Corporate $1.3&amp;#160;million. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;Estimates of restructuring expense are based on
information available at the time such charges are recorded. Due to the inherent
uncertainty involved in estimating restructuring expenses, actual amounts
paid for such activities may differ from amounts initially recorded. Accordingly,
the Company may record revisions of previous estimates by adjusting previously
established accruals. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The following table displays a rollforward of the
employee related and other restructuring accruals recorded within the Company&amp;#8217;s
Consolidated Balance Sheet and the related cash flow activity for the three
and six months ended June&amp;#160;30, 2009: &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="52%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Employee Related and Other Costs&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;Drivetrain&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Engine&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Corporate&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;Total&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Balance
at December&amp;#160;31, 2008 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;21.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;29.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;0.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;51.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Cash
payments &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(5.6&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(7.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(0.4&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(13.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"
style="background: #cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;Translation adjustment &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(0.3&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(1.0&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(1.3&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Balance
at March&amp;#160;31, 2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;15.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;20.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;0.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;35.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt;&lt;!-- Blank Space --&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Provision &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;6.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;4.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;3.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;14.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Cash payments &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(7.0&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(9.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(1.4&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(18.3&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Translation adjustment
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;0.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Balance
at June&amp;#160;30, 2009 &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;14.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;16.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;2.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;33.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The Company made cash payments
of $32.2&amp;#160;million during 2009 related to the 2008 and 2009 restructuring
actions. Future cash payments for these restructuring activities are expected
to be complete by the middle of 2010. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt;
&lt;/html&gt; </us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <us-gaap:SegmentReportingDisclosureTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 17 - us-gaap:SegmentReportingDisclosureTextBlock--&gt; &lt;div
style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(17)&amp;#160;Reporting
Segments&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt;
margin-top: 6pt"&gt;The Company&amp;#8217;s business is comprised of two reporting
segments: Engine and Drivetrain. These reporting segments are strategic business
groups, which are managed separately as each represents a specific grouping
of related automotive components and systems. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The Company allocates resources
to each segment based upon the projected after-tax return on invested capital
(&amp;#8220;ROIC&amp;#8221;) of its business initiatives. The ROIC is comprised
of projected earnings before interest, income taxes and noncontrolling interest
(&amp;#8220;EBIT&amp;#8221;) adjusted for income taxes compared to the projected
average capital investment required. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;EBIT is considered a &amp;#8220;non-GAAP financial
measure.&amp;#8221; Generally, a non-GAAP financial measure is a numerical
measure of a company&amp;#8217;s financial performance, financial position
or cash flows that excludes (or includes) amounts that are included in (or
excluded from) the most directly comparable measure calculated and presented
in accordance with GAAP. EBIT is defined as earnings before interest, income
taxes and noncontrolling interest. &amp;#8220;Earnings&amp;#8221; is intended
to mean net earnings as presented in the Consolidated Statements of Operations
under GAAP. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The Company believes that EBIT is useful to demonstrate the operational
profitability of our segments by excluding interest and income taxes, which
are generally accounted for across the entire Company on a consolidated basis.
EBIT is also one of the measures used by the Company to determine resource
allocation within the Company. Although the Company believes that EBIT enhances
understanding of our business and performance, it should not be considered
an alternative to, or more meaningful than, net earnings or cash flows from
operations as determined in accordance with GAAP. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The following tables present net
sales, segment EBIT and total assets for the Company&amp;#8217;s reporting
segments. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;&lt;u&gt;&lt;b&gt;Net Sales by Reporting Segment&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="52%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Three
months ended&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Six months ended&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Engine
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;670.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;1,109.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;1,294.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;2,207.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Drivetrain
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;248.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;414.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;447.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;824.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Inter-segment eliminations
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(3.0&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(6.8&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(6.2&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(15.8&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:30px; text-indent:-15px"&gt;Net sales &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;916.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;1,516.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;1,735.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;3,015.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Segment Earnings
(Loss) Before Interest and Income Taxes&lt;/b&gt;&lt;/u&gt; &lt;/div&gt; &lt;div
align="center"&gt; &lt;table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt;
&lt;tr valign="bottom"&gt; &lt;td width="52%"&gt;&amp;#160;&lt;/td&gt; &lt;td
width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Three
months ended&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6"&gt;&lt;b&gt;Six months ended&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 0px solid #000000"&gt;&lt;b&gt;June 30,&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Engine
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;44.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;126.4&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;79.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;264.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Drivetrain &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(8.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;21.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(41.5&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;40.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Segment earnings before interest
and income taxes (&amp;#8220;Segment EBIT&amp;#8221;) &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;35.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;148.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;38.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;304.4&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Muncie closure retiree
obligation net gain &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;27.9&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;&amp;#8212;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Corporate, including
equity in affiliates&amp;#8217; earnings and stock-based compensation &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(29.6&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(17.6&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(55.0&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(39.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Consolidated
earnings before interest and taxes (&amp;#8220;EBIT&amp;#8221;) &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;5.6&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;130.6&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;11.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;264.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Restructuring
expense &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;50.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;50.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;&amp;#8212;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Interest income &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(0.7&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(2.3&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(1.2&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(4.2&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Interest expense and
finance charges &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;9.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;10.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;28.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;17.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Earnings
(loss)&amp;#160;before income taxes and noncontrolling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(53.0&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;122.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(65.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;251.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Provision (benefit)&amp;#160;for
income taxes &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(19.1&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;29.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(25.7&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;63.4&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Net
earnings (loss) &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(33.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;92.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(40.2&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;188.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net earnings attributable to
the noncontrolling interest &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;2.7&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;11.8&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Net
earnings (loss)&amp;#160;attributable to BorgWarner Inc. &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;(35.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;87.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;(42.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;176.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Total Assets&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="76%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;June
30,&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;&lt;b&gt;December 31,&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;&lt;b&gt;2008&lt;/b&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Head --&gt;
&lt;!-- Begin Table Body --&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Engine
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;2,861.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;3,065.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Drivetrain
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;1,104.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;1,211.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:30px; text-indent:-15px"&gt;Total
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;3,965.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;4,277.1&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Corporate, including
equity in affiliates &lt;sup style="font-size: 85%; vertical-align: text-top"&gt;(a)&lt;/sup&gt;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;645.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;366.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:30px; text-indent:-15px"&gt;Total assets &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;4,611.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;4,644.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;div align="left"&gt; &lt;div style="font-size:
3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000"&gt;&amp;#160;
&lt;/div&gt; &lt;/div&gt; &lt;table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; text-align: left"&gt; &lt;tr&gt; &lt;td
width="3%"&gt;&lt;/td&gt; &lt;td width="1%"&gt;&lt;/td&gt; &lt;td width="96"&gt;&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="top"&gt; &lt;td nowrap="nowrap" align="left"&gt;&lt;sup
style="font-size: 85%; vertical-align: text-top"&gt;(a)&lt;/sup&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;Corporate assets, including equity
in affiliates, are net of trade receivables securitized and sold to third
parties, and include cash, deferred income taxes and investments &amp;#038;
advances.&lt;/td&gt; &lt;/tr&gt; &lt;/table&gt; &lt;/div&gt; &lt;/body&gt;
&lt;/html&gt; </us-gaap:SegmentReportingDisclosureTextBlock> <!-- End Block Tagged Note -->
<!-- Begin Block Tagged Note --> <us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
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Tagged Note 18 - us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock--&gt;
&lt;div style="font-family: 'Times New Roman',Times,serif"&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;(18)&amp;#160;New Accounting
Pronouncements&lt;/b&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;In September&amp;#160;2006, the Financial Accounting
Standards Board (&amp;#8220;FASB&amp;#8221;) issued Statement of Financial
Accounting Standards No.&amp;#160;157, Fair Value Measurements (&amp;#8220;FAS
157&amp;#8221;). FAS 157 defines fair value, establishes a framework for measuring
fair value in GAAP and expands disclosures about fair value measurements.
On January&amp;#160;1, 2009, the Company fully adopted as required, FAS 157.
See Note 9 to the Consolidated Financial Statements for more information regarding
the implementation of FAS 157. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;In December&amp;#160;2007, the FASB issued Statement
of Financial Accounting Standards No.&amp;#160;141 (Revised 2007), Business
Combinations (&amp;#8220;FAS 141(R)&amp;#8221;). FAS 141(R) establishes principles
and requirements for recognizing identifiable assets acquired, liabilities
assumed, noncontrolling interest in the acquiree, goodwill acquired in the
combination or the gain from a bargain purchase, and disclosure requirements.
Under this revised statement, all costs incurred to effect an acquisition
will be recognized separately from the acquisition. Also, restructuring costs
that are expected but the acquirer is not obligated to incur will be recognized
separately from the acquisition. On January 1, 2009, the Company adopted FAS
141(R). In the first quarter of 2009, the Company expensed $4.8 million related
to on-going acquisition related activity. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;In December&amp;#160;2007, the
FASB issued Statement of Financial Accounting Standards No.&amp;#160;160,
Noncontrolling Interests in Consolidated Financial Statements (&amp;#8220;FAS
160&amp;#8221;). Effective January&amp;#160;1, 2009, the Company adopted FAS
160. For consolidated subsidiaries that are less than wholly owned, the third
party holdings of equity interests are referred to as noncontrolling interests.
The portion of net income (loss)&amp;#160;attributable to noncontrolling interests
for such subsidiaries is presented as net income (loss)&amp;#160;applicable
to non-controlling interest on the consolidated statement of operation, and
the portion of stockholders&amp;#8217; equity of such subsidiaries is presented
as noncontrolling interest on the consolidated balance sheet. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The adoption
of FAS 160 did not have a material impact on the Company&amp;#8217;s financial
condition, results of operations or cash flows. However, it did impact the
presentation and disclosure of noncontrolling (minority)&amp;#160;interests
in our consolidated financial statements and notes to the consolidated financial
statements. As a result of the retrospective presentation and disclosure requirements
of SFAS 160, the Company was required to reflect the change in presentation
and disclosure for the period ending March&amp;#160;31, 2009 and all periods
presented in future filings. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The principal effect on the prior year balance sheets
related to the adoption of SFAS 160 is summarized as follows: &lt;/div&gt;
&lt;div align="center"&gt; &lt;table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin
Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="88%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"&gt;&lt;u&gt;Balance
Sheet&lt;/u&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 0px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000;"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;December 31, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Total stockholders&amp;#8217;
equity, as previously reported &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;2,006.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Increase for SFAS 160
reclass of non-controlling interest &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;31.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Total stockholders&amp;#8217;
equity, as adjusted &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;2,037.5&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;!-- End Table Body --&gt;
&lt;/table&gt; &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The principal effect on the prior year statement of operations related
to the adoption of SFAS 160 is summarized as follows: &lt;/div&gt; &lt;div
align="center"&gt; &lt;table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt;
&lt;tr valign="bottom"&gt; &lt;td width="76%"&gt;&amp;#160;&lt;/td&gt; &lt;td
width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"&gt;&lt;u&gt;Consolidated
Statement of Operations&lt;/u&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px
solid #000000"&gt;Three Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 0px solid #000000"&gt;Six Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net earnings, as previously
reported &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;87.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;176.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;SFAS No.&amp;#160;160
reclass of non-controlling interest &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(4.8&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(11.8&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Net
earnings, as adjusted &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;92.3&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;188.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Less:
Net earnings attributable to noncontrolling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(4.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(11.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net earnings attributable to
BorgWarner Inc. &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;87.5&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;176.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;!-- Folio --&gt;
&lt;!-- /Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;The principal effect on the prior year statement
of cash flows related to the adoption of SFAS 160 is summarized as follows:
&lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="88%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="border-bottom: 0px solid #000000; font-size: 10pt"&gt;&lt;u&gt;Statement
of Cash Flows&lt;/u&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid
#000000"&gt;Six Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left"
style="border-bottom: 0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;June 30, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net earnings, as previously
reported &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;176.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;SFAS
No.&amp;#160;160 reclass of non-controlling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(11.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net earnings, as adjusted &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;188.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Less:
Net earnings attributable to noncontrolling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(11.8&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Net earnings attributable to
BorgWarner Inc. &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td
align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;176.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="center"&gt;
&lt;table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"&gt; &lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt;
&lt;td width="88%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="5%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="1%"&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
8pt" valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="font-size:
10pt"&gt;&lt;u&gt;Statement of Cash Flows&lt;/u&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;Six Months Ended&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;June 30, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Equity in affiliates&amp;#8217;
earnings, net of dividends received, minority interest and other, as previously
reported &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;28.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Less:
SFAS No.&amp;#160;160 reclass of non-controlling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(11.8&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Equity
in affiliates&amp;#8217; earnings, net of dividends received and other &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;16.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The principal effect on the prior
year comprehensive income related to the adoption of SFAS 160 is summarized
as follows: &lt;/div&gt; &lt;div align="center"&gt; &lt;table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"&gt;
&lt;!-- Begin Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="76%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;tr style="font-size: 8pt" valign="bottom"&gt; &lt;td nowrap="nowrap"
align="left" style="font-size: 10pt"&gt;&lt;u&gt;Comprehensive Income (Loss)&lt;/u&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"&gt;Three
Months Ended&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2"&gt;Six Months Ended&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 8pt"
valign="bottom"&gt; &lt;td nowrap="nowrap" align="left" style="border-bottom:
0px solid #000000"&gt;(millions)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000"&gt;June 30, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"&gt;June 30, 2008&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Comprehensive income, as previously
reported &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;91.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;266.0&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;SFAS No.&amp;#160;160
reclass of non-controlling interest &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(2.9&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;2.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Comprehensive income, as adjusted
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;94.1&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;263.8&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Less: Comprehensive
income (loss)&amp;#160;attributable to noncontrolling interest &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(2.9&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;2.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size: 1px"&gt;
&lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Comprehensive
income attributable to BorgWarner Inc. &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="left"&gt;$&lt;/td&gt; &lt;td align="right"&gt;91.2&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt;
&lt;td align="right"&gt;266.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
text-indent:-15px"&gt;&amp;#160; &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;In March&amp;#160;2008, the FASB
issued Statement of Financial Accounting Standards No.&amp;#160;161, Disclosures
about Derivative Instruments and Hedging Activities (&amp;#8220;FAS 161&amp;#8221;).
FAS 161 requires entities to provide enhanced disclosures about how and why
an entity uses derivative instruments, how derivative instruments and related
hedged items are accounted for under Statement 133 and its related interpretations,
and how derivative instruments and related hedged items affect an entity&amp;#8217;s
financial position, financial performance, and cash flows. On January&amp;#160;1,
2009, the Company adopted FAS 161. See Note 10 to the Consolidated Financial
Statements for more information regarding the implementation of &lt;font style="white-space:
nowrap"&gt;FAS 161.&lt;/font&gt; &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;In May&amp;#160;2008, the FASB issued FASB Staff
Position No.&amp;#160;APB 14-1, Accounting for Convertible Debt Instruments
That May be Settled in Cash Upon Conversion (Including Partial Cash Settlement)
(&amp;#8220;FSP APB 14-1&amp;#8221;). Under FSP APB 14-1, an entity must separately
account for the liability and equity components of the convertible debt instruments
that may be settled entirely or partially in cash upon conversion in a manner
that reflects the issuer&amp;#8217;s interest cost. FSP APB 14-1 is effective
for fiscal years beginning after December&amp;#160;15, 2008, and for interim
periods within those fiscal years, with retrospective application required.
As a result of our adoption of FSP APB 14-1 for fiscal 2009 and the Company&amp;#8217;s
April&amp;#160;9, 2009 issuance of $373.8&amp;#160;million convertible senior
notes due April&amp;#160;15, 2012, we recorded the equity and liability components
of the notes on our June&amp;#160;30, 2009 Condensed Consolidated Balance
Sheet. Additionally, FSP APB 14-1 requires us to accrete the discounted carrying
value of the convertible notes to their face value over the term of the notes.
The Company&amp;#8217;s interest expense associated with this amortization
is based on the effective interest rate of the convertible senior notes of
9.365%. The financial statement impact to the Company&amp;#8217;s Consolidated
Statement of Operations for the second quarter will be interest expense recognition
of approximately $7.4&amp;#160;million, of which $4.2&amp;#160;million is
non-cash. For the full year of 2009, interest expense will be approximately
$22.5 million, of which approximately $12.8&amp;#160;million will be non-cash.
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;See
Note 8 to the Condensed Consolidated Financial Statements for more information
regarding this issuance. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;In December&amp;#160;2008, the FASB issued Staff
Position 132(R)-1, Employers&amp;#8217; Disclosures about Postretirement Benefit
Plan Assets (&amp;#8220;FAS 132(R)-1&amp;#8221;). FAS 132(R)-1 requires entities
to provide enhanced disclosures about how investment allocation decisions
are made, the major categories of plan assets, the inputs and valuation techniques
used to measure fair value of plan assets, the effect of fair value measurements
using significant unobservable inputs on changes in plan assets for the period,
and significant concentrations of risk within plan assets. FAS 132(R)-1 is
effective for the Company beginning with its year ending December&amp;#160;31,
2009. The Company is currently assessing the potential impacts, if any, on
its consolidated financial statements. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;In May&amp;#160;2009, the FASB issued Statement
of Financial Accounting Standards No.&amp;#160;165, Subsequent Events (&amp;#8220;FAS
165&amp;#8221;). FAS 165 requires entities to disclose the date through which
subsequent events have been evaluated, as well as whether that date is the
date the financial statements were issued or the date the financial statements
were available to be issued. The Company adopted FAS 165 in the second quarter
of 2009 and has evaluated all subsequent events through July&amp;#160;29,
2009 (the date the Company&amp;#8217;s financial statements are issued). &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In June&amp;#160;2009,
the FASB issued Statement of Financial Accounting Standards No.&amp;#160;166,
Accounting for Transfer of Financial Assets &amp;#8211; an amendment of FASB
Statement No.&amp;#160;140 (&amp;#8220;FAS 166&amp;#8221;). FAS 166 removes
the concept of a qualifying special-purpose entity from Statement 140 and
removes the exception from applying FASB Interpretation No.&amp;#160;46, Consolidation
of Variable Interest Entities, to qualifying special-purpose entities. This
Statement modifies the financial-components approach used in Statement 140
and limits the circumstances in which a financial asset, or portion of a financial
asset, should be derecognized. Additionally, enhanced disclosures are required
to provide financial statement users with greater transparency about transfers
of financial assets and a transferor&amp;#8217;s continuing involvement with
transferred financial assets. FAS 166 is effective for the Company beginning
with its quarter ending March&amp;#160;31, 2010. The adoption of FAS 166 is
not expected to have a material impact on the Company&amp;#8217;s consolidated
financial position, results of operations or cash flows. &lt;/div&gt; &lt;div
align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In June&amp;#160;2009,
the FASB issued Statement of Financial Accounting Standards No.&amp;#160;167,
Amendments to FASB Interpretation No.&amp;#160;46(R) (&amp;#8220;FAS 167&amp;#8221;).
FAS 167 amends Interpretation No.&amp;#160;46(R) to require ongoing reassessments
of whether an enterprise is the primary beneficiary of a variable interest
entity. Additionally, FAS 167 requires enhanced disclosures that will provide
users of financial statements with more transparent information about an enterprise&amp;#8217;s
involvement in variable interest entities. FAS 167 is effective for the Company
beginning with its quarter ending March&amp;#160;31, 2010. The adoption of
FAS 167 is not expected to have a material impact on the Company&amp;#8217;s
consolidated financial position, results of operations or cash flows. &lt;/div&gt;
&lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;In June&amp;#160;2009,
the FASB issued Statement of Financial Accounting Standards No.&amp;#160;168,
The FASB Accounting Standards Codification and the Hierarchy of Generally
Accepted Accounting Principles. This FASB instituted a major change in the
way accounting standards are organized. The accounting standards Codification
became the single official source of authoritative, nongovernmental U.S. generally
accepted accounting principles (&amp;#8220;GAAP&amp;#8221;). After final approval
by the FASB only one level of authoritative GAAP will exist, other than guidance
issued by the Securities and Exchange Commission. All other literature will
be non-authoritative. The Codification is effective for the Company beginning
with its quarter ending September&amp;#160;30, 2009. The adoption of the Codification
will have no impact on the Company&amp;#8217;s consolidated financial position,
results of operations or cash flows. &lt;/div&gt; &lt;!-- Folio --&gt; &lt;!--
/Folio --&gt; &lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;/div&gt; &lt;/body&gt; &lt;/html&gt;
</us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock>
<!-- End Block Tagged Note --> <!-- Begin Block Tagged Note --> <bwa:RecentTransactionsTextBlock
contextRef="January-01-2009_June-30-2009">&lt;!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--&gt; &lt;html&gt; &lt;head&gt;&lt;/head&gt; &lt;body&gt; &lt;!-- Begin Block
Tagged Note 19 - bwa:RecentTransactionsTextBlock--&gt; &lt;div style="font-family:
'Times New Roman',Times,serif"&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 12pt"&gt;&lt;b&gt;(19)&amp;#160;Recent Transactions&lt;/b&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;BERU
AG &amp;#8211; Domination and Profit Transfer Agreement and &amp;#8220;Squeeze-out&amp;#8221;
of Minority Shareholders&lt;/b&gt;&lt;/u&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;In the second quarter of 2008,
the Company and BERU AG (&amp;#8220;BERU&amp;#8221;) completed a Domination
and Profit Transfer Agreement (&amp;#8220;DPTA&amp;#8221;), giving BorgWarner
full control of BERU. Under this agreement BERU is obligated to transfer 100%
of its annual profits or losses to the Company. Upon request of BERU minority
shareholders, the Company is obligated to purchase their shares for a cash
payment of &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;71.32
per share. Those BERU minority shareholders who did not sell their shares
are entitled to receive an annual compensatory payment (perpetual dividend)
of &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;4.23
(net)&amp;#160;per share. The DPTA is a binding agreement. However, certain
minority shareholders of BERU initiated an appraisal proceeding in the German
court system that challenged the valuation of the &lt;font face="'Times New
Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;71.32 purchase price and &lt;font
face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;4.23 annual
compensatory payment (perpetual dividend). &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;On January&amp;#160;7, 2009 the
Company informed BERU of its intention to purchase the remaining outstanding
shares at that time of approximately 4%, using the required German legal process
referred to as a &amp;#8220;squeeze-out&amp;#8221; to complete the 100% ownership.
This process included an affirmative vote of BERU shareholders at its May&amp;#160;20,
2009 annual shareholder meeting. The registration of the &amp;#8220;squeeze-out&amp;#8221;
was challenged by certain minority shareholders of BERU with the commercial
register in June&amp;#160;2009. The &amp;#8220;squeeze-out&amp;#8221; share
price passed by the BERU shareholders in May&amp;#160;2009 was &lt;font face="'Times
New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;73.39. The increase in
price per share of &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;2.07
resulting from the &amp;#8220;squeeze out&amp;#8221; was reflected as an increase
to the Company&amp;#8217;s total DPTA obligation. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;The DPTA obligation as of June&amp;#160;30,
2009 was approximately &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;23.0
($32.2) million, and approximates the cost if all remaining shares were purchased
by the Company at &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;73.39
per share. As of June&amp;#160;30, 2009, the DPTA obligation is presented
in the Condensed Consolidated Balance Sheet as $32.2&amp;#160;million in current
liabilities. &lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;The table below summarizes activity related to the Company&amp;#8217;s
DPTA obligation as of June&amp;#160;30, 2009 as follows (in millions): &lt;/div&gt;
&lt;div align="center"&gt; &lt;table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"&gt; &lt;!-- Begin
Table Head --&gt; &lt;tr valign="bottom"&gt; &lt;td width="88%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;td width="5%"&gt;&amp;#160;&lt;/td&gt; &lt;td width="1%"&gt;&amp;#160;&lt;/td&gt;
&lt;/tr&gt; &lt;!-- End Table Head --&gt; &lt;!-- Begin Table Body --&gt;
&lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt; &lt;div
style="margin-left:15px; text-indent:-15px"&gt;Domination and Profit Transfer
Agreement Obligation at December&amp;#160;31, 2008 &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;44.0&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Shares
Purchased During the Three Months Ended March&amp;#160;31, 2009 &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(12.2&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Translation Adjustment
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
align="left"&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;(2.1&lt;/td&gt;
&lt;td nowrap="nowrap"&gt;)&lt;/td&gt; &lt;/tr&gt; &lt;tr style="font-size:
1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;&amp;#160;
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"&gt;&amp;#160;&lt;/td&gt;
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&lt;div style="margin-left:15px; text-indent:-15px"&gt;Domination and Profit
Transfer Agreement Obligation at March&amp;#160;31, 2009 &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="right"&gt;29.7&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt; &lt;tr valign="bottom" style="background:
#cceeff"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Share
Resolution to &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;73.39
per Share &lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;0.9&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Shares
Purchased During the Three Months Ended June&amp;#160;30, 2009 &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td nowrap="nowrap" align="left"&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;(0.7&lt;/td&gt; &lt;td nowrap="nowrap"&gt;)&lt;/td&gt;
&lt;/tr&gt; &lt;tr valign="bottom" style="background: #cceeff"&gt; &lt;td&gt;
&lt;div style="margin-left:15px; text-indent:-15px"&gt;Translation Adjustment
&lt;/div&gt;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt;
&lt;td align="right"&gt;2.3&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
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&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"&gt;&amp;#160;&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr valign="bottom"&gt; &lt;td&gt; &lt;div style="margin-left:15px; text-indent:-15px"&gt;Domination
and Profit Transfer Agreement Obligation at June&amp;#160;30, 2009 &lt;/div&gt;&lt;/td&gt;
&lt;td&gt;&amp;#160;&lt;/td&gt; &lt;td align="left"&gt;$&lt;/td&gt; &lt;td
align="right"&gt;32.2&lt;/td&gt; &lt;td&gt;&amp;#160;&lt;/td&gt; &lt;/tr&gt;
&lt;tr style="font-size: 1px"&gt; &lt;td&gt; &lt;div style="margin-left:15px;
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&lt;td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
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&lt;!-- End Table Body --&gt; &lt;/table&gt; &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;As of June&amp;#160;30, 2009,
the portion of the acquisition related to the DPTA represents a non-cash transaction
of &lt;font face="'Times New Roman',times,serif"&gt;&amp;#8364;&lt;/font&gt;23.0
($32.2) million. For the three months and six months ended June&amp;#160;30,
2009, the costs related to the annual perpetual dividend arrangement are reported
as interest expense in the Consolidated Statement of Operations of $1.1&amp;#160;million
and $1.6&amp;#160;million, respectively. &lt;/div&gt; &lt;div align="left"
style="font-size: 10pt; margin-top: 6pt"&gt;As a result of the tendering of
shares, the Company owned approximately 97% of all BERU&amp;#8217;s outstanding
shares at June&amp;#160;30, 2009. The tendering of approximately 1.3% of BERU
shares, at a cost of $12.9&amp;#160;million, has been reflected as an Investing
activity in the Consolidated Statements of Cash Flows for the six months ended
June&amp;#160;30, 2009. On May&amp;#160;22, 2009 the Company paid the annual
perpetual dividend of $1.9&amp;#160;million, which is reflected as an Investing
activity in the Consolidated Statement of Cash Flows for the six months ended
June&amp;#160;30, 2009. &lt;/div&gt; &lt;!-- Folio --&gt; &lt;!-- /Folio --&gt;
&lt;/div&gt; &lt;!-- PAGEBREAK --&gt; &lt;div style="font-family: 'Times New
Roman',Times,serif"&gt; &lt;div align="left" style="font-size: 10pt; margin-top:
6pt"&gt;For a description of our earlier acquisition of BERU, see Note 20
to the Notes to Consolidated Financial Statements in our most recently filed
Annual Report on Form 10-K. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Acquisition of Etatech, Inc. Technology&lt;/b&gt;&lt;/u&gt;
&lt;/div&gt; &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On
June&amp;#160;2, 2009, the Company announced the purchase of advanced gasoline
ignition technology and related intellectual property from Florida-based Etatech,
Inc. The high-frequency ignition technology enables high-performing, lean
burning engines to significantly improve fuel economy and reduce emissions
compared with conventional combustion technologies. Amortization expense of
approximately $0.2&amp;#160;million was incurred in the second quarter of
2009 with respect to this acquisition. &lt;/div&gt; &lt;div align="left" style="font-size:
10pt; margin-top: 6pt"&gt;For the six months ended June&amp;#160;30, 2009,
a $7.5&amp;#160;million payment has been reflected as an investing activity
in the Consolidated Statement of Cash Flows. &lt;/div&gt; &lt;/div&gt; &lt;/body&gt;
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xlink:label="Footnote-01" xml:lang="en-US"> * The Company had a loss for the
quarter and six months ended June 30, 2009. As a result, diluted loss per
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<DOCUMENT>
<TYPE>EX-101.SCH
<SEQUENCE>6
<FILENAME>bwa-20090630.xsd
<DESCRIPTION>EX-101 SCHEMA DOCUMENT
<TEXT>
<XBRL>
<?xml version="1.0" encoding="us-ascii"?>
<!--XBRL document created with Dragon Tag (R) XBRL Enabler by Rivet Software version 3.0.0.47-->
<!--Based on XBRL 2.1--> <!--Created on: 10/3/2008 10:54:27 AM--> <!--Modified on: 7/29/2009 7:30:13 AM-->
<schema xmlns="http://www.w3.org/2001/XMLSchema"
xmlns:xbrli="http://www.xbrl.org/2003/instance"
xmlns:link="http://www.xbrl.org/2003/linkbase"
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xmlns:bwa="http://borgwarner.com/20090630" elementFormDefault="qualified"
attributeFormDefault="unqualified"
xmlns:xbrldt="http://xbrl.org/2005/xbrldt"
xmlns:us-types="http://xbrl.us/us-types/2009-01-31"> <annotation> <appinfo>
<link:roleType
roleURI="http://borgwarner.com/20090331/role/RecentTransactionsTextBlock"
id="RecentTransactionsTextBlock"> <link:definition>0619 - Disclosure - Recent
Transactions</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/NewAccountingPronouncements"
id="NewAccountingPronouncements"> <link:definition>0618 - Disclosure - New
Accounting Pronouncements</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/ReportingSegments"
id="ReportingSegments"> <link:definition>0617 - Disclosure - Reporting Segments</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/Restructuring"
id="Restructuring"> <link:definition>0616 - Disclosure - Restructuring</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/LeasesAndCommitmentsTextBlock"
id="LeasesAndCommitmentsTextBlock"> <link:definition>0615 - Disclosure - Leases
and Commitments</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/Contingencies"
id="Contingencies"> <link:definition>0614 - Disclosure - Contingencies</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/ComprehensiveIncomeLoss"
id="ComprehensiveIncomeLoss"> <link:definition>0613 - Disclosure - Comprehensive
Income (Loss)</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/StockBasedCompensation"
id="StockBasedCompensation"> <link:definition>0612 - Disclosure - Stock Based
Compensation</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/RetirementBenefitPlans"
id="RetirementBenefitPlans"> <link:definition>0611 - Disclosure - Retirement
Benefit Plans</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/FinancialInstruments"
id="FinancialInstruments"> <link:definition>0610 - Disclosure - Financial
Instruments</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/FairValueMeasurements"
id="FairValueMeasurements"> <link:definition>0609 - Disclosure - Fair Value
Measurements</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/NotesPayableAndLongTermDebt"
id="NotesPayableAndLongTermDebt"> <link:definition>0608 - Disclosure - Notes
Payable and Long Term Debt</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/ProductWarranty"
id="ProductWarranty"> <link:definition>0607 - Disclosure - Product Warranty</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/PropertyPlantAndEquipment"
id="PropertyPlantAndEquipment"> <link:definition>0606 - Disclosure - Property,
Plant and Equipment</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/Inventories"
id="Inventories"> <link:definition>0605 - Disclosure - Inventories</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/SalesOfReceivablesTextBlock"
id="SalesOfReceivablesTextBlock"> <link:definition>0604 - Disclosure - Sales
of Receivables</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/IncomeTaxes"
id="IncomeTaxes"> <link:definition>0603 - Disclosure - Income Taxes</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/ResearchAndDevelopment"
id="ResearchAndDevelopment"> <link:definition>0602 - Disclosure - Research
and Development</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/BasisOfPresentation"
id="BasisOfPresentation"> <link:definition>0601 - Disclosure - Basis of Presentation</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/DocumentAndEntityInformation"
id="DocumentAndEntityInformation"> <link:definition>00 - Document - Document
and Company Information</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/StatementsOfCashFlows"
id="StatementsOfCashFlows"> <link:definition>03 - Statement - BorgWarner Inc.
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(Unaudited)</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/StatementsOfOperations"
id="StatementsOfOperations"> <link:definition>02 - Statement - BorgWarner
Inc. and Consolidated Subsidiaries Condensed Consolidated Statements of Operations
(Unaudited)</link:definition> <link:usedOn>link:presentationLink</link:usedOn>
<link:usedOn>link:calculationLink</link:usedOn> <link:usedOn>link:definitionLink</link:usedOn>
</link:roleType> <link:roleType
roleURI="http://borgwarner.com/20090331/role/BalanceSheets"
id="BalanceSheets"> <link:definition>01 - Statement - BorgWarner Inc. and
Consolidated Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)</link:definition>
<link:usedOn>link:presentationLink</link:usedOn> <link:usedOn>link:calculationLink</link:usedOn>
<link:usedOn>link:definitionLink</link:usedOn> </link:roleType> <link:linkbaseRef
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<import namespace="http://xbrl.us/dei/2009-01-31"
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<DOCUMENT>
<TYPE>EX-101.CAL
<SEQUENCE>7
<FILENAME>bwa-20090630_cal.xml
<DESCRIPTION>EX-101 CALCULATION LINKBASE DOCUMENT
<TEXT>
<XBRL>
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<!--Based on XBRL 2.1--> <!--Created on: 10/3/2008 12:13:16 PM--> <!--Modified on: 7/29/2009 7:30:13 AM-->
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<?xml version="1.0" encoding="us-ascii"?>
<!--Extended XBRL Label Linkbase created with Dragon Tag (R) XBRL Enabler by Rivet Software version 3.0.0.47-->
<!--Based on XBRL 2.1--> <!--Created on: 10/3/2008 10:54:27 AM--> <!--Modified on: 7/29/2009 7:30:13 AM-->
<linkbase xmlns="http://www.xbrl.org/2003/linkbase"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xmlns:xlink="http://www.w3.org/1999/xlink"
xsi:schemaLocation="http://www.xbrl.org/2003/linkbase http://www.xbrl.org/2003/xbrl-linkbase-2003-12-31.xsd">
<roleRef xlink:type="simple"
xlink:href="http://www.xbrl.org/lrr/role/negated-2008-03-31.xsd#negatedTotal"
roleURI="http://xbrl.us/us-gaap/role/label/negatedTotal" /> <roleRef
xlink:type="simple"
xlink:href="http://www.xbrl.org/lrr/role/negated-2008-03-31.xsd#negated"
roleURI="http://xbrl.us/us-gaap/role/label/negated" /> <labelLink
xlink:type="extended" xlink:role="http://www.xbrl.org/2003/role/link"> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ReceivablesNetCurrent"
xlink:label="us-gaap_ReceivablesNetCurrent" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ReceivablesNetCurrent"
xlink:to="us-gaap_ReceivablesNetCurrent_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_ReceivablesNetCurrent_lbl" xml:lang="en-US">Receivables,
net</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_InventoryNet"
xlink:label="us-gaap_InventoryNet" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_InventoryNet" xlink:to="us-gaap_InventoryNet_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_InventoryNet_lbl" xml:lang="en-US">Inventories, net</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_DeferredTaxAssetsNetCurrent"
xlink:label="us-gaap_DeferredTaxAssetsNetCurrent" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_DeferredTaxAssetsNetCurrent"
xlink:to="us-gaap_DeferredTaxAssetsNetCurrent_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_DeferredTaxAssetsNetCurrent_lbl" xml:lang="en-US">Deferred
income taxes</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AssetsCurrent"
xlink:label="us-gaap_AssetsCurrent" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AssetsCurrent" xlink:to="us-gaap_AssetsCurrent_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AssetsCurrent_lbl" xml:lang="en-US">Total current assets</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PropertyPlantAndEquipmentNet"
xlink:label="us-gaap_PropertyPlantAndEquipmentNet" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PropertyPlantAndEquipmentNet"
xlink:to="us-gaap_PropertyPlantAndEquipmentNet_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_PropertyPlantAndEquipmentNet_lbl" xml:lang="en-US">Property,
plant and equipment, net</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LongTermInvestments"
xlink:label="us-gaap_LongTermInvestments" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_LongTermInvestments"
xlink:to="us-gaap_LongTermInvestments_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_LongTermInvestments_lbl" xml:lang="en-US">Investments
and advances</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_Goodwill"
xlink:label="us-gaap_Goodwill" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_Goodwill" xlink:to="us-gaap_Goodwill_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_Goodwill_lbl" xml:lang="en-US">Goodwill</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_Assets"
xlink:label="us-gaap_Assets" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_Assets" xlink:to="us-gaap_Assets_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_Assets_lbl" xml:lang="en-US">Total assets</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LongTermDebtCurrent"
xlink:label="us-gaap_LongTermDebtCurrent" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_LongTermDebtCurrent"
xlink:to="us-gaap_LongTermDebtCurrent_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_LongTermDebtCurrent_lbl" xml:lang="en-US">Current portion
of long-term debt</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NotesPayableCurrent"
xlink:label="us-gaap_NotesPayableCurrent" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NotesPayableCurrent"
xlink:to="us-gaap_NotesPayableCurrent_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_NotesPayableCurrent_lbl" xml:lang="en-US">Notes payable</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LiabilitiesCurrent"
xlink:label="us-gaap_LiabilitiesCurrent" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_LiabilitiesCurrent"
xlink:to="us-gaap_LiabilitiesCurrent_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_LiabilitiesCurrent_lbl" xml:lang="en-US">Total current
liabilities</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LongTermDebtNoncurrent"
xlink:label="us-gaap_LongTermDebtNoncurrent" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_LongTermDebtNoncurrent"
xlink:to="us-gaap_LongTermDebtNoncurrent_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_LongTermDebtNoncurrent_lbl" xml:lang="en-US">Long-term
debt</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_MinorityInterest"
xlink:label="us-gaap_MinorityInterest" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_MinorityInterest"
xlink:to="us-gaap_MinorityInterest_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_MinorityInterest_lbl" xml:lang="en-US">Noncontrolling
interest</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CommonStockValue"
xlink:label="us-gaap_CommonStockValue" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CommonStockValue"
xlink:to="us-gaap_CommonStockValue_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CommonStockValue_lbl" xml:lang="en-US">Common stock</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AdditionalPaidInCapital"
xlink:label="us-gaap_AdditionalPaidInCapital" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AdditionalPaidInCapital"
xlink:to="us-gaap_AdditionalPaidInCapital_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AdditionalPaidInCapital_lbl" xml:lang="en-US">Capital
in excess of par value</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_RetainedEarningsAccumulatedDeficit"
xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_RetainedEarningsAccumulatedDeficit"
xlink:to="us-gaap_RetainedEarningsAccumulatedDeficit_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit_lbl"
xml:lang="en-US">Retained earnings</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax"
xlink:label="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax"
xlink:to="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax_lbl"
xml:lang="en-US">Accumulated other comprehensive loss</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_TreasuryStockValue"
xlink:label="us-gaap_TreasuryStockValue" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_TreasuryStockValue"
xlink:to="us-gaap_TreasuryStockValue_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_TreasuryStockValue_lbl" xml:lang="en-US">Treasury stock</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StockholdersEquity"
xlink:label="us-gaap_StockholdersEquity" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StockholdersEquity"
xlink:to="us-gaap_StockholdersEquity_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_StockholdersEquity_lbl" xml:lang="en-US">Total BorgWarner
Inc. stockholders' equity</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LiabilitiesAndStockholdersEquity"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquity" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_LiabilitiesAndStockholdersEquity"
xlink:to="us-gaap_LiabilitiesAndStockholdersEquity_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquity_lbl"
xml:lang="en-US">Total liabilities and stockholders' equity</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CostOfGoodsSold"
xlink:label="us-gaap_CostOfGoodsSold" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CostOfGoodsSold"
xlink:to="us-gaap_CostOfGoodsSold_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_CostOfGoodsSold_lbl" xml:lang="en-US">Cost of sales</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_GrossProfit"
xlink:label="us-gaap_GrossProfit" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_GrossProfit" xlink:to="us-gaap_GrossProfit_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_GrossProfit_lbl" xml:lang="en-US">Gross profit</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OperatingIncomeLoss"
xlink:label="us-gaap_OperatingIncomeLoss" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_OperatingIncomeLoss"
xlink:to="us-gaap_OperatingIncomeLoss_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_OperatingIncomeLoss_lbl" xml:lang="en-US">Operating income
(loss)</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_InterestAndDebtExpense"
xlink:label="us-gaap_InterestAndDebtExpense" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_InterestAndDebtExpense"
xlink:to="us-gaap_InterestAndDebtExpense_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_InterestAndDebtExpense_lbl" xml:lang="en-US">Interest
expense and finance charges</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_EquityInAffiliatesEarningsNetOfTax"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfTax" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_EquityInAffiliatesEarningsNetOfTax"
xlink:to="bwa_EquityInAffiliatesEarningsNetOfTax_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfTax_lbl" xml:lang="en-US">Equity
in affiliates' earnings, net of tax</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfTax_lbl" xml:lang="en-US">Equity
In Affiliates Earnings Net Of Tax</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments"
xlink:label="us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments"
xlink:to="us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments_lbl"
xml:lang="en-US">Earnings (loss) before income taxes and noncontrolling interest</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetIncomeLoss"
xlink:label="us-gaap_NetIncomeLoss" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetIncomeLoss" xlink:to="us-gaap_NetIncomeLoss_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_NetIncomeLoss_lbl" xml:lang="en-US">Net earnings (loss)
attributable to BorgWarner Inc.</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_EarningsPerShareBasic"
xlink:label="us-gaap_EarningsPerShareBasic" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_EarningsPerShareBasic"
xlink:to="us-gaap_EarningsPerShareBasic_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_EarningsPerShareBasic_lbl" xml:lang="en-US">Earnings
(loss) per share - basic</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_EarningsPerShareDiluted"
xlink:label="us-gaap_EarningsPerShareDiluted" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_EarningsPerShareDiluted"
xlink:to="us-gaap_EarningsPerShareDiluted_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_EarningsPerShareDiluted_lbl" xml:lang="en-US">Earnings
(loss) per share - diluted</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_WeightedAverageNumberOfSharesOutstandingBasic"
xlink:label="us-gaap_WeightedAverageNumberOfSharesOutstandingBasic" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_WeightedAverageNumberOfSharesOutstandingBasic"
xlink:to="us-gaap_WeightedAverageNumberOfSharesOutstandingBasic_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_WeightedAverageNumberOfSharesOutstandingBasic_lbl"
xml:lang="en-US">Basic</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding"
xlink:label="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding"
xlink:to="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding_lbl"
xml:lang="en-US">Diluted</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CommonStockDividendsPerShareDeclared"
xlink:label="us-gaap_CommonStockDividendsPerShareDeclared" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CommonStockDividendsPerShareDeclared"
xlink:to="us-gaap_CommonStockDividendsPerShareDeclared_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CommonStockDividendsPerShareDeclared_lbl"
xml:lang="en-US">Dividends declared per share</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncomeTaxExpenseBenefit"
xlink:label="us-gaap_IncomeTaxExpenseBenefit" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncomeTaxExpenseBenefit"
xlink:to="us-gaap_IncomeTaxExpenseBenefit_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncomeTaxExpenseBenefit_lbl" xml:lang="en-US">Provision
(benefit) for income taxes</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetIncomeLoss_lbl" xml:lang="en-US">Net earnings (loss)
attributable to BorgWarner Inc.</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_DepreciationAndAmortization"
xlink:label="us-gaap_DepreciationAndAmortization" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_DepreciationAndAmortization"
xlink:to="us-gaap_DepreciationAndAmortization_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_DepreciationAndAmortization_lbl" xml:lang="en-US">Depreciation
and tooling amortization</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AmortizationOfIntangibleAssets"
xlink:label="us-gaap_AmortizationOfIntangibleAssets" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AmortizationOfIntangibleAssets"
xlink:to="us-gaap_AmortizationOfIntangibleAssets_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AmortizationOfIntangibleAssets_lbl" xml:lang="en-US">Amortization
of intangible assets and other</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StockOptionPlanExpense"
xlink:label="us-gaap_StockOptionPlanExpense" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StockOptionPlanExpense"
xlink:to="us-gaap_StockOptionPlanExpense_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StockOptionPlanExpense_lbl" xml:lang="en-US">Stock based
compensation expense</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_DeferredIncomeTaxExpenseBenefit"
xlink:label="us-gaap_DeferredIncomeTaxExpenseBenefit" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_DeferredIncomeTaxExpenseBenefit"
xlink:to="us-gaap_DeferredIncomeTaxExpenseBenefit_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_DeferredIncomeTaxExpenseBenefit_lbl"
xml:lang="en-US">Deferred income tax loss (benefit)</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInReceivables"
xlink:label="us-gaap_IncreaseDecreaseInReceivables" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInReceivables"
xlink:to="us-gaap_IncreaseDecreaseInReceivables_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncreaseDecreaseInReceivables_lbl" xml:lang="en-US">Receivables</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInInventories"
xlink:label="us-gaap_IncreaseDecreaseInInventories" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInInventories"
xlink:to="us-gaap_IncreaseDecreaseInInventories_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncreaseDecreaseInInventories_lbl" xml:lang="en-US">Inventories</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets"
xlink:label="us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets"
xlink:to="us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_lbl"
xml:lang="en-US">Prepayments and other current assets</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities"
xlink:label="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities"
xlink:to="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_lbl"
xml:lang="en-US">Accounts payable and accrued expenses</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable"
xlink:label="us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable"
xlink:to="us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable_lbl"
xml:lang="en-US">Increase Decrease In Accrued Income Taxes Payable</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet"
xlink:label="us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet"
xlink:to="us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet_lbl"
xml:lang="en-US">Other non-current assets and liabilities</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities"
xlink:label="us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities"
xlink:to="us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities_lbl"
xml:lang="en-US">Proceeds from sales of marketable securities</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetCashProvidedByUsedInInvestingActivities"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivities" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetCashProvidedByUsedInInvestingActivities"
xlink:to="us-gaap_NetCashProvidedByUsedInInvestingActivities_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivities_lbl"
xml:lang="en-US">Net cash used in investing activities</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_RepaymentsOfLongTermDebt"
xlink:label="us-gaap_RepaymentsOfLongTermDebt" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_RepaymentsOfLongTermDebt"
xlink:to="us-gaap_RepaymentsOfLongTermDebt_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_RepaymentsOfLongTermDebt_lbl" xml:lang="en-US">Repayments
of long-term debt, including current portion</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProceedsFromIssuanceOfLongTermDebt"
xlink:label="us-gaap_ProceedsFromIssuanceOfLongTermDebt" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProceedsFromIssuanceOfLongTermDebt"
xlink:to="us-gaap_ProceedsFromIssuanceOfLongTermDebt_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_ProceedsFromIssuanceOfLongTermDebt_lbl"
xml:lang="en-US">Additions to long-term debt</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProceedsFromStockOptionsExercised"
xlink:label="us-gaap_ProceedsFromStockOptionsExercised" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProceedsFromStockOptionsExercised"
xlink:to="us-gaap_ProceedsFromStockOptionsExercised_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProceedsFromStockOptionsExercised_lbl"
xml:lang="en-US">Proceeds from stock options exercised, including the tax
benefit</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PaymentsOfDividendsCommonStock"
xlink:label="us-gaap_PaymentsOfDividendsCommonStock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PaymentsOfDividendsCommonStock"
xlink:to="us-gaap_PaymentsOfDividendsCommonStock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PaymentsOfDividendsCommonStock_lbl" xml:lang="en-US">Dividends
paid to BorgWarner stockholders</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PaymentsOfDividendsMinorityInterest"
xlink:label="us-gaap_PaymentsOfDividendsMinorityInterest" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PaymentsOfDividendsMinorityInterest"
xlink:to="us-gaap_PaymentsOfDividendsMinorityInterest_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PaymentsOfDividendsMinorityInterest_lbl"
xml:lang="en-US">Dividends paid to noncontrolling stockholders</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetCashProvidedByUsedInFinancingActivities"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivities" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetCashProvidedByUsedInFinancingActivities"
xlink:to="us-gaap_NetCashProvidedByUsedInFinancingActivities_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivities_lbl"
xml:lang="en-US">Net cash provided by (used in) financing activities</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents"
xlink:label="us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents"
xlink:to="us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents_lbl"
xml:lang="en-US">Effect of exchange rate changes on cash</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease"
xlink:label="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease"
xlink:to="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease_lbl"
xml:lang="en-US">Net increase (decrease) in cash</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CashAndCashEquivalentsAtCarryingValue"
xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CashAndCashEquivalentsAtCarryingValue"
xlink:to="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl"
xml:lang="en-US">Cash at beginning of year</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl"
xml:lang="en-US">Cash at end of period</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PaymentsForRepurchaseOfCommonStock"
xlink:label="us-gaap_PaymentsForRepurchaseOfCommonStock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PaymentsForRepurchaseOfCommonStock"
xlink:to="us-gaap_PaymentsForRepurchaseOfCommonStock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PaymentsForRepurchaseOfCommonStock_lbl"
xml:lang="en-US">Payment for purchase of treasury stock</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_InterestPaidNet"
xlink:label="us-gaap_InterestPaidNet" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_InterestPaidNet"
xlink:to="us-gaap_InterestPaidNet_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_InterestPaidNet_lbl" xml:lang="en-US">Interest</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StockIssued"
xlink:label="us-gaap_StockIssued" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StockIssued" xlink:to="us-gaap_StockIssued_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StockIssued_lbl" xml:lang="en-US">Stock Performance Plans</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PaymentsToAcquireProductiveAssets"
xlink:label="us-gaap_PaymentsToAcquireProductiveAssets" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PaymentsToAcquireProductiveAssets"
xlink:to="us-gaap_PaymentsToAcquireProductiveAssets_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_PaymentsToAcquireProductiveAssets_lbl"
xml:lang="en-US">Capital expenditures, including tooling outlays</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProceedsFromSaleOfProductiveAssets"
xlink:label="us-gaap_ProceedsFromSaleOfProductiveAssets" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProceedsFromSaleOfProductiveAssets"
xlink:to="us-gaap_ProceedsFromSaleOfProductiveAssets_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_ProceedsFromSaleOfProductiveAssets_lbl"
xml:lang="en-US">Net proceeds from asset disposals</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OtherAssetsNoncurrent"
xlink:label="us-gaap_OtherAssetsNoncurrent" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_OtherAssetsNoncurrent"
xlink:to="us-gaap_OtherAssetsNoncurrent_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_OtherAssetsNoncurrent_lbl" xml:lang="en-US">Other non-current
assets</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_SalesRevenueGoodsNet"
xlink:label="us-gaap_SalesRevenueGoodsNet" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_SalesRevenueGoodsNet"
xlink:to="us-gaap_SalesRevenueGoodsNet_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_SalesRevenueGoodsNet_lbl" xml:lang="en-US">Net sales</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"
xlink:label="us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"
xlink:to="us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_lbl"
xml:lang="en-US">Basis of Presentation</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock"
xlink:label="us-gaap_ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock"
xlink:to="us-gaap_ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock_lbl"
xml:lang="en-US">Research and Development</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncomeTaxDisclosureTextBlock"
xlink:label="us-gaap_IncomeTaxDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncomeTaxDisclosureTextBlock"
xlink:to="us-gaap_IncomeTaxDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncomeTaxDisclosureTextBlock_lbl" xml:lang="en-US">Income
Taxes</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_InventoryDisclosureTextBlock"
xlink:label="us-gaap_InventoryDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_InventoryDisclosureTextBlock"
xlink:to="us-gaap_InventoryDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_InventoryDisclosureTextBlock_lbl" xml:lang="en-US">Inventories</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock"
xlink:label="us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock"
xlink:to="us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock_lbl"
xml:lang="en-US">Property, Plant and Equipment</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_DebtDisclosureTextBlock"
xlink:label="us-gaap_DebtDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_DebtDisclosureTextBlock"
xlink:to="us-gaap_DebtDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_DebtDisclosureTextBlock_lbl" xml:lang="en-US">Notes Payable
and Long-Term Debt</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_FairValueDisclosuresTextBlock"
xlink:label="us-gaap_FairValueDisclosuresTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_FairValueDisclosuresTextBlock"
xlink:to="us-gaap_FairValueDisclosuresTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_FairValueDisclosuresTextBlock_lbl" xml:lang="en-US">Fair
Value Measurements</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock"
xlink:label="us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock"
xlink:to="us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock_lbl"
xml:lang="en-US">Retirement Benefit Plans</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock"
xlink:label="us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock"
xlink:to="us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_lbl"
xml:lang="en-US">Stock-Based Compensation</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CommitmentsAndContingenciesDisclosureTextBlock"
xlink:label="us-gaap_CommitmentsAndContingenciesDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CommitmentsAndContingenciesDisclosureTextBlock"
xlink:to="us-gaap_CommitmentsAndContingenciesDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CommitmentsAndContingenciesDisclosureTextBlock_lbl"
xml:lang="en-US">Contingencies</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock"
xlink:label="us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock"
xlink:to="us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock_lbl"
xml:lang="en-US">Restructuring</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_SegmentReportingDisclosureTextBlock"
xlink:label="us-gaap_SegmentReportingDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_SegmentReportingDisclosureTextBlock"
xlink:to="us-gaap_SegmentReportingDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_SegmentReportingDisclosureTextBlock_lbl"
xml:lang="en-US">Reporting Segments</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScheduleOfSubsequentEventsTextBlock"
xlink:label="us-gaap_ScheduleOfSubsequentEventsTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScheduleOfSubsequentEventsTextBlock"
xlink:to="us-gaap_ScheduleOfSubsequentEventsTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScheduleOfSubsequentEventsTextBlock_lbl"
xml:lang="en-US">Subsequent Events</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncomeTaxesPaidNet"
xlink:label="us-gaap_IncomeTaxesPaidNet" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncomeTaxesPaidNet"
xlink:to="us-gaap_IncomeTaxesPaidNet_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncomeTaxesPaidNet_lbl" xml:lang="en-US">Income taxes</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl"
xml:lang="en-US">Cash</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProductWarrantyDisclosureTextBlock"
xlink:label="us-gaap_ProductWarrantyDisclosureTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProductWarrantyDisclosureTextBlock"
xlink:to="us-gaap_ProductWarrantyDisclosureTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProductWarrantyDisclosureTextBlock_lbl"
xml:lang="en-US">Product Warranty</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock"
xlink:label="us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock"
xlink:to="us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock_lbl"
xml:lang="en-US">Financial Instruments</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ComprehensiveIncomeNoteTextBlock"
xlink:label="us-gaap_ComprehensiveIncomeNoteTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ComprehensiveIncomeNoteTextBlock"
xlink:to="us-gaap_ComprehensiveIncomeNoteTextBlock_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ComprehensiveIncomeNoteTextBlock_lbl"
xml:lang="en-US">Comprehensive Income (Loss)</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetCashProvidedByUsedInOperatingActivities"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivities" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetCashProvidedByUsedInOperatingActivities"
xlink:to="us-gaap_NetCashProvidedByUsedInOperatingActivities_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivities_lbl"
xml:lang="en-US">Net cash provided by operating activities</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_RestructuringCharges"
xlink:label="us-gaap_RestructuringCharges" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_RestructuringCharges"
xlink:to="us-gaap_RestructuringCharges_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_RestructuringCharges_lbl" xml:lang="en-US">Restructuring
expense, net of cash paid</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_SalesOfReceivablesTextBlock"
xlink:label="bwa_SalesOfReceivablesTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_SalesOfReceivablesTextBlock"
xlink:to="bwa_SalesOfReceivablesTextBlock_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_SalesOfReceivablesTextBlock_lbl" xml:lang="en-US">Receivables
securitized and sold through third party financial institutions without recourse.</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_SalesOfReceivablesTextBlock_lbl" xml:lang="en-US">Sales Of
Receivables Text Block</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_RecentTransactionsTextBlock"
xlink:label="bwa_RecentTransactionsTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_RecentTransactionsTextBlock"
xlink:to="bwa_RecentTransactionsTextBlock_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_RecentTransactionsTextBlock_lbl" xml:lang="en-US">Domination
and Profit Transfer Agreement with BERU AG in which BERU is obligated to transfer
100% of its profits or losses to the Company.</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_RecentTransactionsTextBlock_lbl" xml:lang="en-US">Recent
Transactions Text Block</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_LeasesAndCommitmentsTextBlock"
xlink:label="bwa_LeasesAndCommitmentsTextBlock" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_LeasesAndCommitmentsTextBlock"
xlink:to="bwa_LeasesAndCommitmentsTextBlock_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_LeasesAndCommitmentsTextBlock_lbl" xml:lang="en-US">Disclosure
of lessee entity's leasing arrangements including, but not limited to, all
of the following: (a.) The basis on which contingent rental payments are determined,
(b.) The existence and terms of renewal or purchase options and escalation
clauses, (c.) Restrictions imposed by lease agreements, such as those concerning
dividends, additional debt, and further leasing. This element can be used
to disclose the entity's entire lease disclosure as a single block of text.</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_LeasesAndCommitmentsTextBlock_lbl" xml:lang="en-US">Leases
And Commitments Text Block</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_BalanceSheetsAbstract"
xlink:label="bwa_BalanceSheetsAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_BalanceSheetsAbstract"
xlink:to="bwa_BalanceSheetsAbstract_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_BalanceSheetsAbstract_lbl" xml:lang="en-US">Balance Sheets
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_BalanceSheetsAbstract_lbl" xml:lang="en-US">Balance Sheets
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_BalanceSheetsAbstract_lbl" xml:lang="en-US">BALANCE SHEETS.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_OtherNonCurrentLiabilitiesAbstract"
xlink:label="bwa_OtherNonCurrentLiabilitiesAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_OtherNonCurrentLiabilitiesAbstract"
xlink:to="bwa_OtherNonCurrentLiabilitiesAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_OtherNonCurrentLiabilitiesAbstract_lbl" xml:lang="en-US">Other
non-current liabilities:</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_OtherNonCurrentLiabilitiesAbstract_lbl" xml:lang="en-US">Other
Non Current Liabilities Abstract</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_OtherNonCurrentLiabilitiesAbstract_lbl" xml:lang="en-US">Other
liabilities which are due and payable after one year from the date of the
balance sheet.</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LiabilitiesAndStockholdersEquityAbstract"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquityAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_LiabilitiesAndStockholdersEquityAbstract"
xlink:to="us-gaap_LiabilitiesAndStockholdersEquityAbstract_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquityAbstract_lbl"
xml:lang="en-US">Liabilities and Stockholders' Equity [Abstract]</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AssetsAbstract"
xlink:label="us-gaap_AssetsAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AssetsAbstract" xlink:to="us-gaap_AssetsAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AssetsAbstract_lbl" xml:lang="en-US">Assets [Abstract]</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_StatementsOfOperationsAbstract"
xlink:label="bwa_StatementsOfOperationsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_StatementsOfOperationsAbstract"
xlink:to="bwa_StatementsOfOperationsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_StatementsOfOperationsAbstract_lbl" xml:lang="en-US">Statements
Of Operations [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_StatementsOfOperationsAbstract_lbl" xml:lang="en-US">Statements
of Operations [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_StatementsOfOperationsAbstract_lbl" xml:lang="en-US">Statements
Of Operations.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_WeightedAverageSharesOutstandingAbstract"
xlink:label="bwa_WeightedAverageSharesOutstandingAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_WeightedAverageSharesOutstandingAbstract"
xlink:to="bwa_WeightedAverageSharesOutstandingAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_WeightedAverageSharesOutstandingAbstract_lbl"
xml:lang="en-US">Weighted average shares outstanding (thousands):</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_WeightedAverageSharesOutstandingAbstract_lbl"
xml:lang="en-US">Weighted Average Shares Outstanding Abstract</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_WeightedAverageSharesOutstandingAbstract_lbl"
xml:lang="en-US">Weighted average shares outstanding.</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_InvestmentIncomeInterest"
xlink:label="us-gaap_InvestmentIncomeInterest" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_InvestmentIncomeInterest"
xlink:to="us-gaap_InvestmentIncomeInterest_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_InvestmentIncomeInterest_lbl" xml:lang="en-US">Interest
income</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OtherGeneralExpense"
xlink:label="us-gaap_OtherGeneralExpense" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_OtherGeneralExpense"
xlink:to="us-gaap_OtherGeneralExpense_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_OtherGeneralExpense_lbl" xml:lang="en-US">Other expense</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_StatementsOfCashFlowsAbstract"
xlink:label="bwa_StatementsOfCashFlowsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_StatementsOfCashFlowsAbstract"
xlink:to="bwa_StatementsOfCashFlowsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_StatementsOfCashFlowsAbstract_lbl" xml:lang="en-US">Statements
of Cash Flows [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_StatementsOfCashFlowsAbstract_lbl" xml:lang="en-US">Statements
of Cash Flows [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_StatementsOfCashFlowsAbstract_lbl" xml:lang="en-US">Statements
of Cash Flows.</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract"
xlink:label="us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract"
xlink:to="us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_lbl"
xml:lang="en-US">Non-cash financing transactions:</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_SupplementalCashFlowInformationAbstract"
xlink:label="us-gaap_SupplementalCashFlowInformationAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_SupplementalCashFlowInformationAbstract"
xlink:to="us-gaap_SupplementalCashFlowInformationAbstract_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_SupplementalCashFlowInformationAbstract_lbl"
xml:lang="en-US">Supplemental Cash Flow Information</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract"
xlink:to="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract_lbl"
xml:lang="en-US">Financing</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ProceedsFromInterestRateSwapTermination"
xlink:label="bwa_ProceedsFromInterestRateSwapTermination" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ProceedsFromInterestRateSwapTermination"
xlink:to="bwa_ProceedsFromInterestRateSwapTermination_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_ProceedsFromInterestRateSwapTermination_lbl"
xml:lang="en-US">Proceeds from interest rate swap termination</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ProceedsFromInterestRateSwapTermination_lbl"
xml:lang="en-US">Proceeds From Interest Rate Swap Termination</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ProceedsFromInterestRateSwapTermination_lbl"
xml:lang="en-US">Proceeds from the termination of interest rate swap agreements
related to BorgWarner's fixed rate debt.</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProceedsFromNotesPayable"
xlink:label="us-gaap_ProceedsFromNotesPayable" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProceedsFromNotesPayable"
xlink:to="us-gaap_ProceedsFromNotesPayable_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProceedsFromNotesPayable_lbl" xml:lang="en-US">Increase
in notes payable</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract"
xlink:to="us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract_lbl"
xml:lang="en-US">Investing</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired"
xlink:label="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired"
xlink:to="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired_lbl"
xml:lang="en-US">Payments for business acquired, net of cash acquired</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract"
xlink:to="us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract_lbl"
xml:lang="en-US">Operating</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_IncreaseDecreaseInOperatingCapitalAbstract"
xlink:label="us-gaap_IncreaseDecreaseInOperatingCapitalAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_IncreaseDecreaseInOperatingCapitalAbstract"
xlink:to="us-gaap_IncreaseDecreaseInOperatingCapitalAbstract_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInOperatingCapitalAbstract_lbl"
xml:lang="en-US">Changes in assets and liabilities, net of effects of acquisitions
and divestitures</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract"
xlink:label="us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract"
xlink:to="us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract_lbl"
xml:lang="en-US">Non-cash charges (credits) to operations:</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperationsAbstract"
xlink:label="us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperationsAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperationsAbstract"
xlink:to="us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperationsAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperationsAbstract_lbl"
xml:lang="en-US">Adjustments to reconcile net earnings (loss) to net cash
flows from operations:</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_DocumentAndCompanyInformation"
xlink:label="bwa_DocumentAndCompanyInformation" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_DocumentAndCompanyInformation"
xlink:to="bwa_DocumentAndCompanyInformation_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_DocumentAndCompanyInformation_lbl" xml:lang="en-US">Document
and Company Information</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/terseLabel"
xlink:label="bwa_DocumentAndCompanyInformation_lbl" xml:lang="en-US">Document
and Company Information</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_DocumentAndCompanyInformation_lbl" xml:lang="en-US">Document
and Company Information</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_BasisOfPresentationAbstract"
xlink:label="bwa_BasisOfPresentationAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_BasisOfPresentationAbstract"
xlink:to="bwa_BasisOfPresentationAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_BasisOfPresentationAbstract_lbl" xml:lang="en-US">Basis of
Presentation [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_BasisOfPresentationAbstract_lbl" xml:lang="en-US">Basis of
Presentation [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_BasisOfPresentationAbstract_lbl" xml:lang="en-US">Basis of
Presentation.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ResearchAndDevelopmentAbstract"
xlink:label="bwa_ResearchAndDevelopmentAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ResearchAndDevelopmentAbstract"
xlink:to="bwa_ResearchAndDevelopmentAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ResearchAndDevelopmentAbstract_lbl" xml:lang="en-US">Research
and Development [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ResearchAndDevelopmentAbstract_lbl" xml:lang="en-US">Research
and Development [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ResearchAndDevelopmentAbstract_lbl" xml:lang="en-US">Research
and Development.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_IncomeTaxesAbstract"
xlink:label="bwa_IncomeTaxesAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_IncomeTaxesAbstract"
xlink:to="bwa_IncomeTaxesAbstract_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_IncomeTaxesAbstract_lbl" xml:lang="en-US">Income Taxes [Abstract]</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_IncomeTaxesAbstract_lbl" xml:lang="en-US">Income Taxes [Abstract]</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_IncomeTaxesAbstract_lbl" xml:lang="en-US">Income Taxes.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_SalesOfReceivablesAbstract"
xlink:label="bwa_SalesOfReceivablesAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_SalesOfReceivablesAbstract"
xlink:to="bwa_SalesOfReceivablesAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_SalesOfReceivablesAbstract_lbl" xml:lang="en-US">Sales of
Receivables [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_SalesOfReceivablesAbstract_lbl" xml:lang="en-US">Sales of
Receivables [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_SalesOfReceivablesAbstract_lbl" xml:lang="en-US">Sales of
Receivables.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_InventoriesAbstract"
xlink:label="bwa_InventoriesAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_InventoriesAbstract"
xlink:to="bwa_InventoriesAbstract_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_InventoriesAbstract_lbl" xml:lang="en-US">Inventories [Abstract]</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_InventoriesAbstract_lbl" xml:lang="en-US">Inventories [Abstract]</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_InventoriesAbstract_lbl" xml:lang="en-US">Inventories.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_PropertyEquipmentAndPlantAbstract"
xlink:label="bwa_PropertyEquipmentAndPlantAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_PropertyEquipmentAndPlantAbstract"
xlink:to="bwa_PropertyEquipmentAndPlantAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_PropertyEquipmentAndPlantAbstract_lbl" xml:lang="en-US">Property,
Plant and Equipment [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_PropertyEquipmentAndPlantAbstract_lbl" xml:lang="en-US">Property
Equipment And Plant [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_PropertyEquipmentAndPlantAbstract_lbl" xml:lang="en-US">Property,
Plant and Equipment.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ProductWarrantyAbstract"
xlink:label="bwa_ProductWarrantyAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ProductWarrantyAbstract"
xlink:to="bwa_ProductWarrantyAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ProductWarrantyAbstract_lbl" xml:lang="en-US">Product Warranty
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ProductWarrantyAbstract_lbl" xml:lang="en-US">Product Warranty
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ProductWarrantyAbstract_lbl" xml:lang="en-US">Product Warranty.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_NotesPayableAndLongTermDebtAbstract"
xlink:label="bwa_NotesPayableAndLongTermDebtAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_NotesPayableAndLongTermDebtAbstract"
xlink:to="bwa_NotesPayableAndLongTermDebtAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_NotesPayableAndLongTermDebtAbstract_lbl"
xml:lang="en-US">Notes Payable and Long-Term Debt [Abstract]</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_NotesPayableAndLongTermDebtAbstract_lbl"
xml:lang="en-US">Notes Payable and Long-Term Debt [Abstract]</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_NotesPayableAndLongTermDebtAbstract_lbl"
xml:lang="en-US">Notes Payable and Long-Term Debt.</label> <loc
xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_FairValueMeasurementsAbstract"
xlink:label="bwa_FairValueMeasurementsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_FairValueMeasurementsAbstract"
xlink:to="bwa_FairValueMeasurementsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_FairValueMeasurementsAbstract_lbl" xml:lang="en-US">Fair
Value Measurements [Abstraact]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_FairValueMeasurementsAbstract_lbl" xml:lang="en-US">Fair
Value Measurements [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_FairValueMeasurementsAbstract_lbl" xml:lang="en-US">Fair
Value Measurements.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_FinancialInstrumentsAbstract"
xlink:label="bwa_FinancialInstrumentsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_FinancialInstrumentsAbstract"
xlink:to="bwa_FinancialInstrumentsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_FinancialInstrumentsAbstract_lbl" xml:lang="en-US">Financial
Instruments [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_FinancialInstrumentsAbstract_lbl" xml:lang="en-US">Financial
Instruments [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_FinancialInstrumentsAbstract_lbl" xml:lang="en-US">Financial
Instruments.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_RetirementBenefitPlansAbstract"
xlink:label="bwa_RetirementBenefitPlansAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_RetirementBenefitPlansAbstract"
xlink:to="bwa_RetirementBenefitPlansAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_RetirementBenefitPlansAbstract_lbl" xml:lang="en-US">Retirement
Benefit Plans [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_RetirementBenefitPlansAbstract_lbl" xml:lang="en-US">Retirement
Benefit Plans [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_RetirementBenefitPlansAbstract_lbl" xml:lang="en-US">Retirement
Benefit Plans.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_StockBasedCompensationAbstract"
xlink:label="bwa_StockBasedCompensationAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_StockBasedCompensationAbstract"
xlink:to="bwa_StockBasedCompensationAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_StockBasedCompensationAbstract_lbl" xml:lang="en-US">Stock-Based
Compensation [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_StockBasedCompensationAbstract_lbl" xml:lang="en-US">Stock-Based
Compensation [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_StockBasedCompensationAbstract_lbl" xml:lang="en-US">Stock-Based
Compensation.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ComprehensiveIncomeLossAbstract"
xlink:label="bwa_ComprehensiveIncomeLossAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ComprehensiveIncomeLossAbstract"
xlink:to="bwa_ComprehensiveIncomeLossAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ComprehensiveIncomeLossAbstract_lbl" xml:lang="en-US">Comprehensive
Income (Loss) [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ComprehensiveIncomeLossAbstract_lbl" xml:lang="en-US">Comprehensive
Income (Loss) [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ComprehensiveIncomeLossAbstract_lbl" xml:lang="en-US">Comprehensive
Income (Loss).</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ContingenciesAbstract"
xlink:label="bwa_ContingenciesAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ContingenciesAbstract"
xlink:to="bwa_ContingenciesAbstract_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ContingenciesAbstract_lbl" xml:lang="en-US">Contingencies
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ContingenciesAbstract_lbl" xml:lang="en-US">Contingencies
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ContingenciesAbstract_lbl" xml:lang="en-US">Contingencies.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_LeasesAndCommitmentsAbstract"
xlink:label="bwa_LeasesAndCommitmentsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_LeasesAndCommitmentsAbstract"
xlink:to="bwa_LeasesAndCommitmentsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_LeasesAndCommitmentsAbstract_lbl" xml:lang="en-US">Leases
and Commitments [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_LeasesAndCommitmentsAbstract_lbl" xml:lang="en-US">Leases
and Commitments [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_LeasesAndCommitmentsAbstract_lbl" xml:lang="en-US">Leases
and Commitments.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_RestructuringAbstract"
xlink:label="bwa_RestructuringAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_RestructuringAbstract"
xlink:to="bwa_RestructuringAbstract_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_RestructuringAbstract_lbl" xml:lang="en-US">Restructuring
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_RestructuringAbstract_lbl" xml:lang="en-US">Restructuring
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_RestructuringAbstract_lbl" xml:lang="en-US">Restructuring.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ReportingSegmentsAbstract"
xlink:label="bwa_ReportingSegmentsAbstract" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ReportingSegmentsAbstract"
xlink:to="bwa_ReportingSegmentsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ReportingSegmentsAbstract_lbl" xml:lang="en-US">Reporting
Segments [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ReportingSegmentsAbstract_lbl" xml:lang="en-US">Reporting
Segments [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ReportingSegmentsAbstract_lbl" xml:lang="en-US">Reporting
Segments.</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_NewAccountingPronouncementsAbstract"
xlink:label="bwa_NewAccountingPronouncementsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_NewAccountingPronouncementsAbstract"
xlink:to="bwa_NewAccountingPronouncementsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_NewAccountingPronouncementsAbstract_lbl"
xml:lang="en-US">New Accounting Pronouncements [Abstract]</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_NewAccountingPronouncementsAbstract_lbl"
xml:lang="en-US">New Accounting Pronouncements [Abstract]</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_NewAccountingPronouncementsAbstract_lbl"
xml:lang="en-US">New Accounting Pronouncements.</label> <loc
xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_RecentTransactionsAbstract"
xlink:label="bwa_RecentTransactionsAbstract" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_RecentTransactionsAbstract"
xlink:to="bwa_RecentTransactionsAbstract_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_RecentTransactionsAbstract_lbl" xml:lang="en-US">Recent Transactions
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_RecentTransactionsAbstract_lbl" xml:lang="en-US">Recent Transactions
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_RecentTransactionsAbstract_lbl" xml:lang="en-US">Recent Transactions.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_PrepaymentsAndOtherCurrentAssets"
xlink:label="bwa_PrepaymentsAndOtherCurrentAssets" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_PrepaymentsAndOtherCurrentAssets"
xlink:to="bwa_PrepaymentsAndOtherCurrentAssets_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_PrepaymentsAndOtherCurrentAssets_lbl" xml:lang="en-US">Prepayments
and other current assets</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_PrepaymentsAndOtherCurrentAssets_lbl" xml:lang="en-US">Prepayments
And Other Current Assets</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_PrepaymentsAndOtherCurrentAssets_lbl" xml:lang="en-US">Prepayments
and other assets with a benefit to be realized in one year or less.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_TotalOtherNonCurrentLiabilities"
xlink:label="bwa_TotalOtherNonCurrentLiabilities" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_TotalOtherNonCurrentLiabilities"
xlink:to="bwa_TotalOtherNonCurrentLiabilities_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_TotalOtherNonCurrentLiabilities_lbl" xml:lang="en-US">Total
other non-current liabilities</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_TotalOtherNonCurrentLiabilities_lbl" xml:lang="en-US">Total
Other Non Current Liabilities</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_TotalOtherNonCurrentLiabilities_lbl" xml:lang="en-US">Total
other non-current liabilities.</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfTax_lbl" xml:lang="en-US">Equity
in affiliates' earnings, net of tax</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther"
xlink:to="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther_lbl"
xml:lang="en-US">Equity in affiliates' earnings, net of dividends received
and other</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther_lbl"
xml:lang="en-US">Equity In Affiliates Earnings Net Of Dividends Received Noncontrolling
Interest And Other</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther_lbl"
xml:lang="en-US">BorgWarner's share in the earnings of affiliates accounted
for by the equity method less dividends received from affiliates.</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_MinorityInterest_lbl" xml:lang="en-US">Noncontrolling
interest</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest"
xlink:label="us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest"
xlink:to="us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_lbl"
xml:lang="en-US">Total stockholders' equity</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProfitLoss"
xlink:label="us-gaap_ProfitLoss" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProfitLoss" xlink:to="us-gaap_ProfitLoss_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_ProfitLoss_lbl" xml:lang="en-US">Net earnings (loss)</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_NetIncomeLossAttributableToNoncontrollingInterest"
xlink:label="us-gaap_NetIncomeLossAttributableToNoncontrollingInterest" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_NetIncomeLossAttributableToNoncontrollingInterest"
xlink:to="us-gaap_NetIncomeLossAttributableToNoncontrollingInterest_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_NetIncomeLossAttributableToNoncontrollingInterest_lbl"
xml:lang="en-US">Net earnings attributable to the noncontrolling interest</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_SellingGeneralAndAdministrativeExpenses"
xlink:label="bwa_SellingGeneralAndAdministrativeExpenses" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_SellingGeneralAndAdministrativeExpenses"
xlink:to="bwa_SellingGeneralAndAdministrativeExpenses_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_SellingGeneralAndAdministrativeExpenses_lbl"
xml:lang="en-US">Selling, general and administrative expenses</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_SellingGeneralAndAdministrativeExpenses_lbl"
xml:lang="en-US">Selling General And Administrative Expenses</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_SellingGeneralAndAdministrativeExpenses_lbl"
xml:lang="en-US">Selling, General and Administrative expense excluding warranty
costs, which are included in cost of sales.</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AccruedIncomeTaxesCurrent"
xlink:label="us-gaap_AccruedIncomeTaxesCurrent" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AccruedIncomeTaxesCurrent"
xlink:to="us-gaap_AccruedIncomeTaxesCurrent_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AccruedIncomeTaxesCurrent_lbl" xml:lang="en-US">Accrued
Income Taxes Current</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities"
xlink:label="us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities"
xlink:to="us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities_lbl"
xml:lang="en-US">Net earnings adjusted for non-cash charges to operations</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent"
xlink:label="us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent"
xlink:to="us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent_lbl"
xml:lang="en-US">Retirement-related liabilities</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock"
xlink:label="us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock"
xlink:to="us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock_lbl"
xml:lang="en-US">New Accounting Pronouncements</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock_lbl"
xml:lang="en-US">Schedule of New Accounting Pronouncements and Changes in
Accounting Principles [Text Block]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_DocumentAndCompanyInformation_lbl" xml:lang="en-US">Document
and Company Information [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_BalanceSheetsAbstract_lbl" xml:lang="en-US">Balance Sheets
[Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_PrepaymentsAndOtherCurrentAssets_lbl" xml:lang="en-US">Prepayments
and other current assets</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_OtherNonCurrentLiabilitiesAbstract_lbl" xml:lang="en-US">Other
non-current liabilities:</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_StatementsOfOperationsAbstract_lbl" xml:lang="en-US">Statements
of Operations [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfTax_lbl" xml:lang="en-US">Equity
in affiliates' earnings, net of tax</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_WeightedAverageSharesOutstandingAbstract_lbl"
xml:lang="en-US">Weighted average shares outstanding (thousands):</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_StatementsOfCashFlowsAbstract_lbl" xml:lang="en-US">Statements
of Cash Flows [Abstract]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_EquityInAffiliatesEarningsNetOfDividendsReceivedNoncontrollingInterestAndOther_lbl"
xml:lang="en-US">Equity in affiliates' earnings, net of dividends received
and other</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ProceedsFromInterestRateSwapTermination_lbl"
xml:lang="en-US">Proceeds from interest rate swap termination</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_SalesOfReceivablesTextBlock_lbl" xml:lang="en-US">Sales of
Receivables</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_LeasesAndCommitmentsTextBlock_lbl" xml:lang="en-US">Leases
and Commitments</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_RecentTransactionsTextBlock_lbl" xml:lang="en-US">Recent
Transactions</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_RestructuringExpense"
xlink:label="bwa_RestructuringExpense" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_RestructuringExpense"
xlink:to="bwa_RestructuringExpense_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_RestructuringExpense_lbl" xml:lang="en-US">Restructuring
expense</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_RestructuringExpense_lbl" xml:lang="en-US">Restructuring
Expense</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_RestructuringExpense_lbl" xml:lang="en-US">Amount charged
against earnings in the period for incurred and estimated costs associated
with exit from or disposal of business activities or restructurings pursuant
to a duly authorized plan, excluding asset retirement obligations. Such costs
could include costs associated with business exit activities, recapitalizations,
severance, and other restructuring charges, and may be allocated to income
(loss) from continuing operations or discontinued operations, as appropriate.
Includes such charges attributable to a disposal group, including a component
of the entity (discontinued operation), during the reporting period.</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_AccountsPayableAndAccruedExpensesCurrent"
xlink:label="bwa_AccountsPayableAndAccruedExpensesCurrent" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_AccountsPayableAndAccruedExpensesCurrent"
xlink:to="bwa_AccountsPayableAndAccruedExpensesCurrent_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_AccountsPayableAndAccruedExpensesCurrent_lbl"
xml:lang="en-US">Accounts payable and accrued expenses</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_AccountsPayableAndAccruedExpensesCurrent_lbl"
xml:lang="en-US">Accounts Payable And Accrued Expenses Current</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_AccountsPayableAndAccruedExpensesCurrent_lbl"
xml:lang="en-US">Carrying value as of the balance sheet date of obligations
incurred and payable. pertaining to goods and services received from vendors;
and for costs that are statutory in nature, are incurred in connection with
contractual obligations, or accumulate over time and for which invoices have
not yet been received or will not be rendered. Examples include taxes, interest,
rent, salaries and benefits, and utilities. For classified balance sheets,
used to reflect the current portion of the liabilities (due within one year
or within the normal operating cycle if longer); for unclassified balance
sheets, used to reflect the total liabilities (regardless of due date).</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl"
xml:lang="en-US">Cash</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl"
xml:lang="en-US">Cash and Cash Equivalents, at Carrying Value</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ReceivablesNetCurrent_lbl" xml:lang="en-US">Receivables,
net</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ReceivablesNetCurrent_lbl" xml:lang="en-US">Receivables,
Net, Current</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_InventoryNet_lbl" xml:lang="en-US">Inventories, net</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_InventoryNet_lbl" xml:lang="en-US">Inventory, Net</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PropertyPlantAndEquipmentNet_lbl" xml:lang="en-US">Property,
plant &amp; equipment, net</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_PropertyPlantAndEquipmentNet_lbl" xml:lang="en-US">Property,
Plant and Equipment, Net, Beginning Balance</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_PropertyPlantAndEquipmentNet_lbl" xml:lang="en-US">Property,
Plant and Equipment, Net, Ending Balance</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PropertyPlantAndEquipmentNet_lbl" xml:lang="en-US">Property,
Plant and Equipment, Net</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_LongTermInvestments_lbl" xml:lang="en-US">Investments
&amp; advances</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_LongTermInvestments_lbl" xml:lang="en-US">Long-term Investments</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NotesPayableCurrent_lbl" xml:lang="en-US">Notes payable</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NotesPayableCurrent_lbl" xml:lang="en-US">Notes Payable,
Current</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_LongTermDebtCurrent_lbl" xml:lang="en-US">Current portion
of long-term debt</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_LongTermDebtCurrent_lbl" xml:lang="en-US">Long-term Debt,
Current Maturities</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_LongTermDebtNoncurrent_lbl" xml:lang="en-US">Long-term
debt</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_LongTermDebtNoncurrent_lbl" xml:lang="en-US">Long-term
Debt, Excluding Current Maturities</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent_lbl"
xml:lang="en-US">Retirement-related liabilities</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent_lbl"
xml:lang="en-US">Pension and Other Postretirement Defined Benefit Plans, Liabilities,
Noncurrent</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AdditionalPaidInCapital_lbl" xml:lang="en-US">Capital
in excess of par value</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_AdditionalPaidInCapital_lbl" xml:lang="en-US">Additional
Paid in Capital, Beginning Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_AdditionalPaidInCapital_lbl" xml:lang="en-US">Additional
Paid in Capital, Ending Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AdditionalPaidInCapital_lbl" xml:lang="en-US">Additional
Paid in Capital</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit_lbl"
xml:lang="en-US">Retained earnings</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit_lbl"
xml:lang="en-US">Retained Earnings (Accumulated Deficit), Beginning Balance</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit_lbl"
xml:lang="en-US">Retained Earnings (Accumulated Deficit), Ending Balance</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit_lbl"
xml:lang="en-US">Retained Earnings (Accumulated Deficit)</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax_lbl"
xml:lang="en-US">Accumulated other comprehensive loss</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax_lbl"
xml:lang="en-US">Accumulated Other Comprehensive Income (Loss), Net of Tax,
Beginning Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax_lbl"
xml:lang="en-US">Accumulated Other Comprehensive Income (Loss), Net of Tax,
Ending Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax_lbl"
xml:lang="en-US">Accumulated Other Comprehensive Income (Loss), Net of Tax</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_SalesRevenueGoodsNet_lbl" xml:lang="en-US">Net sales</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_SalesRevenueGoodsNet_lbl" xml:lang="en-US">Sales Revenue,
Goods, Net</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_CostOfGoodsSold_lbl" xml:lang="en-US">Cost of sales</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CostOfGoodsSold_lbl" xml:lang="en-US">Cost of Goods Sold</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_InterestAndDebtExpense_lbl" xml:lang="en-US">Interest
expense and finance charges</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_InterestAndDebtExpense_lbl" xml:lang="en-US">Interest
and Debt Expense</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncomeTaxExpenseBenefit_lbl" xml:lang="en-US">Provision
(benefit) for income taxes</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncomeTaxExpenseBenefit_lbl" xml:lang="en-US">Income
Tax Expense (Benefit)</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetIncomeLossAttributableToNoncontrollingInterest_lbl"
xml:lang="en-US">Net earnings attributable to the noncontrolling interest</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetIncomeLossAttributableToNoncontrollingInterest_lbl"
xml:lang="en-US">Net Income (Loss) Attributable to Noncontrolling Interest</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_EarningsPerShareBasic_lbl" xml:lang="en-US">Earnings
(loss) per share - basic</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_EarningsPerShareBasic_lbl" xml:lang="en-US">Earnings
Per Share, Basic</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_EarningsPerShareDiluted_lbl" xml:lang="en-US">Earnings
(loss) per share - diluted</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_EarningsPerShareDiluted_lbl" xml:lang="en-US">Earnings
Per Share, Diluted</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_DepreciationAndAmortization_lbl" xml:lang="en-US">Depreciation
and tooling amortization</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_DepreciationAndAmortization_lbl" xml:lang="en-US">Depreciation,
Depletion and Amortization, Nonproduction</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncreaseDecreaseInReceivables_lbl" xml:lang="en-US">Receivables</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInReceivables_lbl" xml:lang="en-US">Increase
(Decrease) in Receivables</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncreaseDecreaseInInventories_lbl" xml:lang="en-US">Inventories</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInInventories_lbl" xml:lang="en-US">Increase
(Decrease) in Inventories</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_lbl"
xml:lang="en-US">Prepayments and other current assets</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_lbl"
xml:lang="en-US">Increase (Decrease) in Prepaid, Deferred Expense and Other
Assets</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_lbl"
xml:lang="en-US">Accounts payable and accrued expenses</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_lbl"
xml:lang="en-US">Increase (Decrease) in Accounts Payable and Accrued Liabilities</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PaymentsToAcquireProductiveAssets_lbl"
xml:lang="en-US">Capital expenditures, including tooling outlays</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PaymentsToAcquireProductiveAssets_lbl"
xml:lang="en-US">Payments to Acquire Productive Assets</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProceedsFromSaleOfProductiveAssets_lbl"
xml:lang="en-US">Net proceeds from asset disposals</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProceedsFromSaleOfProductiveAssets_lbl"
xml:lang="en-US">Proceeds from Sale of Productive Assets</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired_lbl"
xml:lang="en-US">Payments for business acquired, net of cash acquired</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired_lbl"
xml:lang="en-US">Payments to Acquire Businesses, Net of Cash Acquired</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities_lbl"
xml:lang="en-US">Proceeds from sales of marketable securities</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProceedsFromSaleAndMaturityOfMarketableSecurities_lbl"
xml:lang="en-US">Proceeds from Sale and Maturity of Marketable Securities</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProceedsFromIssuanceOfLongTermDebt_lbl"
xml:lang="en-US">Additions to long-term debt</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProceedsFromIssuanceOfLongTermDebt_lbl"
xml:lang="en-US">Proceeds from Issuance of Long-term Debt</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_RepaymentsOfLongTermDebt_lbl" xml:lang="en-US">Repayments
of long-term debt, including current portion</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_RepaymentsOfLongTermDebt_lbl" xml:lang="en-US">Repayments
of Long-term Debt</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents_lbl"
xml:lang="en-US">Effect of exchange rate changes on cash</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents_lbl"
xml:lang="en-US">Effect of Exchange Rate on Cash and Cash Equivalents</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_InterestPaidNet_lbl" xml:lang="en-US">Interest</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_InterestPaidNet_lbl" xml:lang="en-US">Interest Paid,
Net</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncomeTaxesPaidNet_lbl" xml:lang="en-US">Income taxes</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncomeTaxesPaidNet_lbl" xml:lang="en-US">Income Taxes
Paid, Net</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_OperatingIncomeLoss_lbl" xml:lang="en-US">Operating income
(loss)</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_OperatingIncomeLoss_lbl" xml:lang="en-US">Operating Income
(Loss)</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetIncomeLoss_lbl" xml:lang="en-US">Net earnings (loss)</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_RestructuringCharges_lbl" xml:lang="en-US">Restructuring
Charges</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_RestructuringCharges_lbl" xml:lang="en-US">Restructuring
expense, net of cash paid</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_DeferredIncomeTaxExpenseBenefit_lbl"
xml:lang="en-US">Deferred income tax benefit</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_DeferredIncomeTaxExpenseBenefit_lbl"
xml:lang="en-US">Deferred Income Tax Expense (Benefit), Total</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities_lbl"
xml:lang="en-US">Net earnings adjusted for non-cash charges to operations</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities_lbl"
xml:lang="en-US">Adjustments, Noncash Items, to Reconcile Net Income (Loss)
to Cash Provided by (Used in) Operating Activities</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProceedsFromNotesPayable_lbl" xml:lang="en-US">Decrease
in notes payable</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_ProceedsFromNotesPayable_lbl" xml:lang="en-US">Proceeds
from Notes Payable, Total</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ProceedsFromIssuanceOfWarrants"
xlink:label="us-gaap_ProceedsFromIssuanceOfWarrants" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ProceedsFromIssuanceOfWarrants"
xlink:to="us-gaap_ProceedsFromIssuanceOfWarrants_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProceedsFromIssuanceOfWarrants_lbl" xml:lang="en-US">Proceeds
from warrant issuance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProceedsFromIssuanceOfWarrants_lbl" xml:lang="en-US">Proceeds
from Issuance of Warrants</label> <loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ReductionInAccountsReceivableSecuritizationFacility"
xlink:label="bwa_ReductionInAccountsReceivableSecuritizationFacility" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_ReductionInAccountsReceivableSecuritizationFacility"
xlink:to="bwa_ReductionInAccountsReceivableSecuritizationFacility_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_ReductionInAccountsReceivableSecuritizationFacility_lbl"
xml:lang="en-US">Reduction in accounts receivable securitization facility</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_ReductionInAccountsReceivableSecuritizationFacility_lbl"
xml:lang="en-US">Reduction In Accounts Receivable Securitization Facility</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_ReductionInAccountsReceivableSecuritizationFacility_lbl"
xml:lang="en-US">Reduction in accounts receivable securitization facility.</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease_lbl"
xml:lang="en-US">Net increase in cash</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease_lbl"
xml:lang="en-US">Cash and Cash Equivalents, Period Increase (Decrease)</label>
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_NetCashPaidDuringPeriodFor"
xlink:label="bwa_NetCashPaidDuringPeriodFor" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="bwa_NetCashPaidDuringPeriodFor"
xlink:to="bwa_NetCashPaidDuringPeriodFor_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_NetCashPaidDuringPeriodFor_lbl" xml:lang="en-US">Net cash
paid during the period for:</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_NetCashPaidDuringPeriodFor_lbl" xml:lang="en-US">Net Cash
Paid During The Period For</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/documentation"
xlink:label="bwa_NetCashPaidDuringPeriodFor_lbl" xml:lang="en-US">Net cash
paid during the period for.</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_DeferredTaxAssetsNetCurrent_lbl" xml:lang="en-US">Deferred
income taxes</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_DeferredTaxAssetsNetCurrent_lbl" xml:lang="en-US">Deferred
Tax Assets, Net, Current, Total</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_DeferredTaxAssetsNetCurrent_lbl" xml:lang="en-US">Deferred
Tax Assets, Net, Current, Beginning Balance</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_DeferredTaxAssetsNetCurrent_lbl" xml:lang="en-US">Deferred
Tax Assets, Net, Current, Ending Balance</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AssetsCurrent_lbl" xml:lang="en-US">Total current assets</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AssetsCurrent_lbl" xml:lang="en-US">Assets, Current</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_Goodwill_lbl" xml:lang="en-US">Goodwill</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_Goodwill_lbl" xml:lang="en-US">Goodwill, Beginning Balance</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_Goodwill_lbl" xml:lang="en-US">Goodwill, Ending Balance</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_OtherAssetsNoncurrent_lbl" xml:lang="en-US">Other non-current
assets</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_OtherAssetsNoncurrent_lbl" xml:lang="en-US">Other non-current
assets</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AccruedIncomeTaxesCurrent_lbl" xml:lang="en-US">Income
taxes payable</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AccruedIncomeTaxesCurrent_lbl" xml:lang="en-US">Income
taxes payable</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_LiabilitiesCurrent_lbl" xml:lang="en-US">Total current
liabilities</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_LiabilitiesCurrent_lbl" xml:lang="en-US">Liabilities,
Current</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AssetsAbstract_lbl" xml:lang="en-US">ASSETS</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquityAbstract_lbl"
xml:lang="en-US">LIABILITIES AND STOCKHOLDERS' EQUITY</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="bwa_TotalOtherNonCurrentLiabilities_lbl" xml:lang="en-US">Total
other non-current liabilities</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_CommonStockValue_lbl" xml:lang="en-US">Common stock</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_CommonStockValue_lbl" xml:lang="en-US">Common Stock,
Value, Issued, Total</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_CommonStockValue_lbl" xml:lang="en-US">Common Stock,
Value, Issued, Beginning Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_CommonStockValue_lbl" xml:lang="en-US">Common Stock,
Value, Issued, Ending Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_TreasuryStockValue_lbl" xml:lang="en-US">Treasury stock</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_TreasuryStockValue_lbl" xml:lang="en-US">Treasury stock</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_TreasuryStockValue_lbl" xml:lang="en-US">Treasury Stock,
Value, Beginning Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_TreasuryStockValue_lbl" xml:lang="en-US">Treasury Stock,
Value, Ending Balance</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_StockholdersEquity_lbl" xml:lang="en-US">Total BorgWarner
Inc. stockholders' equity</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_StockholdersEquity_lbl" xml:lang="en-US">Stockholders'
Equity Attributable to Parent, Beginning Balance</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_StockholdersEquity_lbl" xml:lang="en-US">Stockholders'
Equity Attributable to Parent, Ending Balance</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StockholdersEquity_lbl" xml:lang="en-US">Stockholders'
Equity Attributable to Parent</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_MinorityInterest_lbl" xml:lang="en-US">Noncontrolling
interest</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodStartLabel"
xlink:label="us-gaap_MinorityInterest_lbl" xml:lang="en-US">Stockholders'
Equity Attributable to Noncontrolling Interest, Beginning Balance</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/periodEndLabel"
xlink:label="us-gaap_MinorityInterest_lbl" xml:lang="en-US">Stockholders'
Equity Attributable to Noncontrolling Interest, Ending Balance</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_GrossProfit_lbl" xml:lang="en-US">Gross profit</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_GrossProfit_lbl" xml:lang="en-US">Gross Profit</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_OtherGeneralExpense_lbl" xml:lang="en-US">Other expense</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_InvestmentIncomeInterest_lbl" xml:lang="en-US">Interest
income</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments_lbl"
xml:lang="en-US">Earnings (loss) before income taxes and noncontrolling interest</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments_lbl"
xml:lang="en-US">Income (Loss) from Continuing Operations before Equity Method
Investments, Income Taxes, Extraordinary Items, Cumulative Effects of Changes
in Accounting Principles, Noncontrolling Interest</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProfitLoss_lbl" xml:lang="en-US">Net earnings (loss)</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ProfitLoss_lbl" xml:lang="en-US">Net Income (Loss), Including
Portion Attributable to Noncontrolling Interest</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_CommonStockDividendsPerShareDeclared_lbl"
xml:lang="en-US">Dividends declared per share</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract_lbl"
xml:lang="en-US">OPERATING</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract_lbl"
xml:lang="en-US">INVESTING</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract_lbl"
xml:lang="en-US">FINANCING</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperationsAbstract_lbl"
xml:lang="en-US">Adjustments to reconcile net earnings (loss) to net cash
flows from operations:</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract_lbl"
xml:lang="en-US">Non-cash charges (credits) to operations:</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AmortizationOfIntangibleAssets_lbl" xml:lang="en-US">Amortization
of intangible assets and other</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AmortizationOfIntangibleAssets_lbl" xml:lang="en-US">Amortization
of Intangible Assets, Total</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_StockOptionPlanExpense_lbl" xml:lang="en-US">Stock based
compensation expense</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncreaseDecreaseInOperatingCapitalAbstract_lbl"
xml:lang="en-US">Changes in assets and liabilities:</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable_lbl"
xml:lang="en-US">Income taxes payable</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet_lbl"
xml:lang="en-US">Other non-current assets and liabilities</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivities_lbl"
xml:lang="en-US">Net cash provided by operating activities</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivities_lbl"
xml:lang="en-US">Net Cash Provided by (Used in) Operating Activities</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivities_lbl"
xml:lang="en-US">Net cash used in investing activities</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetCashProvidedByUsedInInvestingActivities_lbl"
xml:lang="en-US">Net Cash Provided by (Used in) Investing Activities</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PaymentsForRepurchaseOfCommonStock_lbl"
xml:lang="en-US">Payment for purchase of treasury stock</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_ProceedsFromStockOptionsExercised_lbl"
xml:lang="en-US">Proceeds from stock options exercised, including the tax
benefit</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PaymentsOfDividendsCommonStock_lbl" xml:lang="en-US">Dividends
paid to BorgWarner stockholders</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_PaymentsOfDividendsMinorityInterest_lbl"
xml:lang="en-US">Dividends paid to noncontrolling stockholders</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivities_lbl"
xml:lang="en-US">Net cash provided by (used in) financing activities</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivities_lbl"
xml:lang="en-US">Net Cash Provided by (Used in) Financing Activities</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_SupplementalCashFlowInformationAbstract_lbl"
xml:lang="en-US">SUPPLEMENTAL CASH FLOW INFORMATION</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_lbl"
xml:lang="en-US">Non-cash financing transactions:</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_StockIssued_lbl" xml:lang="en-US">Stock performance plans</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="bwa_DocumentAndCompanyInformation_lbl" xml:lang="en-US">Document
And Company Information</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityRegistrantName"
xlink:label="dei_EntityRegistrantName" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityRegistrantName"
xlink:to="dei_EntityRegistrantName_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityRegistrantName_lbl" xml:lang="en-US">Entity Registrant
Name</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityCentralIndexKey"
xlink:label="dei_EntityCentralIndexKey" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityCentralIndexKey"
xlink:to="dei_EntityCentralIndexKey_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityCentralIndexKey_lbl" xml:lang="en-US">Entity Central
Index Key</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_DocumentType"
xlink:label="dei_DocumentType" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_DocumentType" xlink:to="dei_DocumentType_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_DocumentType_lbl" xml:lang="en-US">Document Type</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_DocumentPeriodEndDate"
xlink:label="dei_DocumentPeriodEndDate" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_DocumentPeriodEndDate"
xlink:to="dei_DocumentPeriodEndDate_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_DocumentPeriodEndDate_lbl" xml:lang="en-US">Document Period
End Date</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_AmendmentFlag"
xlink:label="dei_AmendmentFlag" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_AmendmentFlag" xlink:to="dei_AmendmentFlag_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_AmendmentFlag_lbl" xml:lang="en-US">Amendment Flag</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_AmendmentDescription"
xlink:label="dei_AmendmentDescription" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_AmendmentDescription"
xlink:to="dei_AmendmentDescription_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_AmendmentDescription_lbl" xml:lang="en-US">Amendment Description</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_CurrentFiscalYearEndDate"
xlink:label="dei_CurrentFiscalYearEndDate" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_CurrentFiscalYearEndDate"
xlink:to="dei_CurrentFiscalYearEndDate_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_CurrentFiscalYearEndDate_lbl" xml:lang="en-US">Current Fiscal
Year End Date</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityWellKnownSeasonedIssuer"
xlink:label="dei_EntityWellKnownSeasonedIssuer" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityWellKnownSeasonedIssuer"
xlink:to="dei_EntityWellKnownSeasonedIssuer_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityWellKnownSeasonedIssuer_lbl" xml:lang="en-US">Entity
Well-known Seasoned Issuer</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityVoluntaryFilers"
xlink:label="dei_EntityVoluntaryFilers" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityVoluntaryFilers"
xlink:to="dei_EntityVoluntaryFilers_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityVoluntaryFilers_lbl" xml:lang="en-US">Entity Voluntary
Filers</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityCurrentReportingStatus"
xlink:label="dei_EntityCurrentReportingStatus" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityCurrentReportingStatus"
xlink:to="dei_EntityCurrentReportingStatus_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityCurrentReportingStatus_lbl" xml:lang="en-US">Entity
Current Reporting Status</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityFilerCategory"
xlink:label="dei_EntityFilerCategory" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityFilerCategory"
xlink:to="dei_EntityFilerCategory_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityFilerCategory_lbl" xml:lang="en-US">Entity Filer Category</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityPublicFloat"
xlink:label="dei_EntityPublicFloat" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityPublicFloat" xlink:to="dei_EntityPublicFloat_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityPublicFloat_lbl" xml:lang="en-US">Entity Public Float</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/non-gaap/dei-2009-01-31.xsd#dei_EntityCommonStockSharesOutstanding"
xlink:label="dei_EntityCommonStockSharesOutstanding" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="dei_EntityCommonStockSharesOutstanding"
xlink:to="dei_EntityCommonStockSharesOutstanding_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="dei_EntityCommonStockSharesOutstanding_lbl" xml:lang="en-US">Entity
Common Stock, Shares Outstanding</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StatementTable"
xlink:label="us-gaap_StatementTable" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StatementTable" xlink:to="us-gaap_StatementTable_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StatementTable_lbl" xml:lang="en-US">Statement [Table]</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StatementLineItems"
xlink:label="us-gaap_StatementLineItems" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StatementLineItems"
xlink:to="us-gaap_StatementLineItems_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StatementLineItems_lbl" xml:lang="en-US">Statement [Line
Items]</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_Assets_lbl" xml:lang="en-US">Assets</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_lbl"
xml:lang="en-US">Stockholders' Equity, Including Portion Attributable to Noncontrolling
Interest</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquity_lbl"
xml:lang="en-US">Liabilities and Stockholders' Equity</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StatementScenarioAxis"
xlink:label="us-gaap_StatementScenarioAxis" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_StatementScenarioAxis"
xlink:to="us-gaap_StatementScenarioAxis_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_StatementScenarioAxis_lbl" xml:lang="en-US">Statement,
Scenario [Axis]</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScenarioUnspecifiedDomain"
xlink:label="us-gaap_ScenarioUnspecifiedDomain" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScenarioUnspecifiedDomain"
xlink:to="us-gaap_ScenarioUnspecifiedDomain_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScenarioUnspecifiedDomain_lbl" xml:lang="en-US">Scenario,
Unspecified [Domain]</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScenarioActualMember"
xlink:label="us-gaap_ScenarioActualMember" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScenarioActualMember"
xlink:to="us-gaap_ScenarioActualMember_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScenarioActualMember_lbl" xml:lang="en-US">Scenario,
Actual [Member]</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScenarioAdjustmentMember"
xlink:label="us-gaap_ScenarioAdjustmentMember" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScenarioAdjustmentMember"
xlink:to="us-gaap_ScenarioAdjustmentMember_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScenarioAdjustmentMember_lbl" xml:lang="en-US">Scenario,
Adjustment [Member]</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScenarioForecastMember"
xlink:label="us-gaap_ScenarioForecastMember" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScenarioForecastMember"
xlink:to="us-gaap_ScenarioForecastMember_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScenarioForecastMember_lbl" xml:lang="en-US">Scenario,
Forecast [Member]</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScenarioPlanMember"
xlink:label="us-gaap_ScenarioPlanMember" /> <labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScenarioPlanMember"
xlink:to="us-gaap_ScenarioPlanMember_lbl" /> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScenarioPlanMember_lbl" xml:lang="en-US">Scenario, Plan
[Member]</label> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_ScenarioPreviouslyReportedMember"
xlink:label="us-gaap_ScenarioPreviouslyReportedMember" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_ScenarioPreviouslyReportedMember"
xlink:to="us-gaap_ScenarioPreviouslyReportedMember_lbl" /> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_ScenarioPreviouslyReportedMember_lbl"
xml:lang="en-US">Scenario, Previously Reported [Member]</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OtherLiabilitiesNoncurrent"
xlink:label="us-gaap_OtherLiabilitiesNoncurrent" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_OtherLiabilitiesNoncurrent"
xlink:to="us-gaap_OtherLiabilitiesNoncurrent_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_OtherLiabilitiesNoncurrent_lbl" xml:lang="en-US">Other</label>
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_OtherLiabilitiesNoncurrent_lbl" xml:lang="en-US">Other
Liabilities, Noncurrent</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_AssetsAbstract_lbl" xml:lang="en-US">ASSETS</label> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/totalLabel"
xlink:label="us-gaap_LiabilitiesAndStockholdersEquityAbstract_lbl"
xml:lang="en-US">LIABILITIES AND STOCKHOLDERS' EQUITY</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OtherAmortizationOfDeferredCharges"
xlink:label="us-gaap_OtherAmortizationOfDeferredCharges" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_OtherAmortizationOfDeferredCharges"
xlink:to="us-gaap_OtherAmortizationOfDeferredCharges_lbl" /> <label
xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_OtherAmortizationOfDeferredCharges_lbl"
xml:lang="en-US">Convertible bond premium amortization</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_OtherAmortizationOfDeferredCharges_lbl"
xml:lang="en-US">Other Amortization of Deferred Charges</label> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_PaymentsForProceedsFromHedgeFinancingActivities"
xlink:label="us-gaap_PaymentsForProceedsFromHedgeFinancingActivities" /> <labelArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_PaymentsForProceedsFromHedgeFinancingActivities"
xlink:to="us-gaap_PaymentsForProceedsFromHedgeFinancingActivities_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_PaymentsForProceedsFromHedgeFinancingActivities_lbl"
xml:lang="en-US">Payment for purchase of bond hedge</label> <label
xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_PaymentsForProceedsFromHedgeFinancingActivities_lbl"
xml:lang="en-US">Payments for (Proceeds from) Hedge, Financing Activities</label>
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract"
xlink:label="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract" />
<labelArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label"
xlink:from="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract"
xlink:to="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_lbl" />
<label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/verboseLabel"
xlink:label="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_lbl"
xml:lang="en-US">Adjustments to reconcile net earnings (loss) to net cash
flows from operations:</label> <label xlink:type="resource"
xlink:role="http://www.xbrl.org/2003/role/label"
xlink:label="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_lbl"
xml:lang="en-US">Adjustments to Reconcile Net Income (Loss) to Cash Provided
by (Used in) Operating Activities [Abstract]</label> <label
xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negatedTotal"
xlink:label="us-gaap_TreasuryStockValue_lbl" xml:lang="en-US">Treasury stock</label>
<label xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_PaymentsToAcquireProductiveAssets_lbl"
xml:lang="en-US">Capital expenditures, including tooling outlays</label> <label
xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired_lbl"
xml:lang="en-US">Payments for business acquired, net of cash acquired</label>
<label xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_RepaymentsOfLongTermDebt_lbl" xml:lang="en-US">Repayments
of long-term debt, including current portion</label> <label
xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_PaymentsForProceedsFromHedgeFinancingActivities_lbl"
xml:lang="en-US">Payment for purchase of bond hedge</label> <label
xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="bwa_ReductionInAccountsReceivableSecuritizationFacility_lbl"
xml:lang="en-US">Reduction in accounts receivable securitization facility</label>
<label xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_PaymentsForRepurchaseOfCommonStock_lbl"
xml:lang="en-US">Payment for purchase of treasury stock</label> <label
xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_PaymentsOfDividendsCommonStock_lbl" xml:lang="en-US">Dividends
paid to BorgWarner stockholders</label> <label xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negatedTotal"
xlink:label="us-gaap_PaymentsOfDividendsMinorityInterest_lbl"
xml:lang="en-US">Dividends paid to noncontrolling stockholders</label> <label
xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_InvestmentIncomeInterest_lbl" xml:lang="en-US">Interest
income</label> <label xlink:type="resource"
xlink:role="http://xbrl.us/us-gaap/role/label/negated"
xlink:label="us-gaap_ProfitLoss_lbl" xml:lang="en-US">Net earnings (loss)</label>
</labelLink> </linkbase>
</XBRL>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-101.PRE
<SEQUENCE>9
<FILENAME>bwa-20090630_pre.xml
<DESCRIPTION>EX-101 PRESENTATION LINKBASE DOCUMENT
<TEXT>
<XBRL>
<?xml version="1.0" encoding="us-ascii"?>
<!--XBRL document created with Dragon Tag (R) XBRL Enabler by Rivet Software version 3.0.0.47-->
<!--Based on XBRL 2.1--> <!--Created on: 10/3/2008 11:44:04 AM--> <!--Modified on: 7/29/2009 7:30:13 AM-->
<linkbase xmlns="http://www.xbrl.org/2003/linkbase"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xmlns:xlink="http://www.w3.org/1999/xlink"
xsi:schemaLocation="http://www.xbrl.org/2003/linkbase http://www.xbrl.org/2003/xbrl-linkbase-2003-12-31.xsd">
<roleRef xlink:type="simple" xlink:href="bwa-20090630.xsd#BalanceSheets"
roleURI="http://borgwarner.com/20090331/role/BalanceSheets" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#StatementsOfOperations"
roleURI="http://borgwarner.com/20090331/role/StatementsOfOperations" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#StatementsOfCashFlows"
roleURI="http://borgwarner.com/20090331/role/StatementsOfCashFlows" /> <roleRef
xlink:type="simple"
xlink:href="bwa-20090630.xsd#DocumentAndEntityInformation"
roleURI="http://borgwarner.com/20090331/role/DocumentAndEntityInformation" />
<roleRef xlink:type="simple"
xlink:href="bwa-20090630.xsd#BasisOfPresentation"
roleURI="http://borgwarner.com/20090331/role/BasisOfPresentation" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#ResearchAndDevelopment"
roleURI="http://borgwarner.com/20090331/role/ResearchAndDevelopment" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#IncomeTaxes"
roleURI="http://borgwarner.com/20090331/role/IncomeTaxes" /> <roleRef
xlink:type="simple"
xlink:href="bwa-20090630.xsd#SalesOfReceivablesTextBlock"
roleURI="http://borgwarner.com/20090331/role/SalesOfReceivablesTextBlock" />
<roleRef xlink:type="simple" xlink:href="bwa-20090630.xsd#Inventories"
roleURI="http://borgwarner.com/20090331/role/Inventories" /> <roleRef
xlink:type="simple"
xlink:href="bwa-20090630.xsd#PropertyPlantAndEquipment"
roleURI="http://borgwarner.com/20090331/role/PropertyPlantAndEquipment" />
<roleRef xlink:type="simple"
xlink:href="bwa-20090630.xsd#ProductWarranty"
roleURI="http://borgwarner.com/20090331/role/ProductWarranty" /> <roleRef
xlink:type="simple"
xlink:href="bwa-20090630.xsd#NotesPayableAndLongTermDebt"
roleURI="http://borgwarner.com/20090331/role/NotesPayableAndLongTermDebt" />
<roleRef xlink:type="simple"
xlink:href="bwa-20090630.xsd#FairValueMeasurements"
roleURI="http://borgwarner.com/20090331/role/FairValueMeasurements" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#FinancialInstruments"
roleURI="http://borgwarner.com/20090331/role/FinancialInstruments" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#RetirementBenefitPlans"
roleURI="http://borgwarner.com/20090331/role/RetirementBenefitPlans" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#StockBasedCompensation"
roleURI="http://borgwarner.com/20090331/role/StockBasedCompensation" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#ComprehensiveIncomeLoss"
roleURI="http://borgwarner.com/20090331/role/ComprehensiveIncomeLoss" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#Contingencies"
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xlink:type="simple"
xlink:href="bwa-20090630.xsd#LeasesAndCommitmentsTextBlock"
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<roleRef xlink:type="simple" xlink:href="bwa-20090630.xsd#Restructuring"
roleURI="http://borgwarner.com/20090331/role/Restructuring" /> <roleRef
xlink:type="simple" xlink:href="bwa-20090630.xsd#ReportingSegments"
roleURI="http://borgwarner.com/20090331/role/ReportingSegments" /> <roleRef
xlink:type="simple"
xlink:href="bwa-20090630.xsd#NewAccountingPronouncements"
roleURI="http://borgwarner.com/20090331/role/NewAccountingPronouncements" />
<roleRef xlink:type="simple"
xlink:href="bwa-20090630.xsd#RecentTransactionsTextBlock"
roleURI="http://borgwarner.com/20090331/role/RecentTransactionsTextBlock" />
<presentationLink xlink:type="extended"
xlink:role="http://borgwarner.com/20090331/role/BalanceSheets"
xlink:title="01 - Statement - BorgWarner Inc. and Consolidated Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)">
<loc xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_BalanceSheetsAbstract"
xlink:label="bwa_BalanceSheetsAbstract" /> <loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StatementTable"
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xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="bwa_BalanceSheetsAbstract" xlink:to="loc_StatementTable"
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xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_StatementLineItems"
xlink:label="loc_StatementLineItems" /> <presentationArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_StatementTable" xlink:to="loc_StatementLineItems"
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xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LiabilitiesAndStockholdersEquityAbstract"
xlink:label="loc_LiabilitiesAndStockholdersEquityAbstract" /> <presentationArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_StatementLineItems"
xlink:to="loc_LiabilitiesAndStockholdersEquityAbstract" order="40"
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preferredLabel="http://www.xbrl.org/2003/role/verboseLabel" /> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LiabilitiesAndStockholdersEquity"
xlink:label="loc_LiabilitiesAndStockholdersEquity" /> <presentationArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
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xlink:to="loc_LiabilitiesAndStockholdersEquity" order="320"
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<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LongTermDebtNoncurrent"
xlink:label="loc_LongTermDebtNoncurrent" /> <presentationArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_LiabilitiesAndStockholdersEquityAbstract"
xlink:to="loc_LongTermDebtNoncurrent" order="120" use="optional"
preferredLabel="http://www.xbrl.org/2003/role/verboseLabel" /> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LiabilitiesCurrent"
xlink:label="loc_LiabilitiesCurrent" /> <presentationArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_LiabilitiesAndStockholdersEquityAbstract"
xlink:to="loc_LiabilitiesCurrent" order="100" use="optional"
preferredLabel="http://www.xbrl.org/2003/role/verboseLabel" /> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_AssetsAbstract"
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xlink:from="loc_StatementLineItems" xlink:to="loc_AssetsAbstract"
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preferredLabel="http://www.xbrl.org/2003/role/verboseLabel" /> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_Assets"
xlink:label="loc_Assets" /> <presentationArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_AssetsAbstract" xlink:to="loc_Assets" order="220"
use="optional" preferredLabel="http://www.xbrl.org/2003/role/totalLabel" />
<loc xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_OtherAssetsNoncurrent"
xlink:label="loc_OtherAssetsNoncurrent" /> <presentationArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_AssetsAbstract" xlink:to="loc_OtherAssetsNoncurrent"
order="200" use="optional"
preferredLabel="http://www.xbrl.org/2003/role/totalLabel" /> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_Goodwill"
xlink:label="loc_Goodwill" /> <presentationArc xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_AssetsAbstract" xlink:to="loc_Goodwill" order="180"
use="optional"
preferredLabel="http://www.xbrl.org/2003/role/verboseLabel" /> <loc
xlink:type="locator"
xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_LongTermInvestments"
xlink:label="loc_LongTermInvestments" /> <presentationArc
xlink:type="arc"
xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child"
xlink:from="loc_AssetsAbstract" xlink:to="loc_LongTermInvestments"
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xlink:role="http://borgwarner.com/20090331/role/FairValueMeasurements"
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xlink:title="0611 - Disclosure - Retirement Benefit Plans"> <loc
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xlink:label="bwa_RetirementBenefitPlansAbstract" /> <loc
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xlink:role="http://borgwarner.com/20090331/role/StockBasedCompensation"
xlink:title="0612 - Disclosure - Stock Based Compensation"> <loc
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xlink:label="bwa_StockBasedCompensationAbstract" /> <loc
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xlink:role="http://borgwarner.com/20090331/role/ComprehensiveIncomeLoss"
xlink:title="0613 - Disclosure - Comprehensive Income (Loss)"> <loc
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xlink:title="0614 - Disclosure - Contingencies"> <loc
xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_ContingenciesAbstract"
xlink:label="bwa_ContingenciesAbstract" /> <loc xlink:type="locator"
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xlink:title="0615 - Disclosure - Leases and Commitments"> <loc
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xlink:href="bwa-20090630.xsd#bwa_LeasesAndCommitmentsAbstract"
xlink:label="bwa_LeasesAndCommitmentsAbstract" /> <loc
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xlink:type="locator"
xlink:href="bwa-20090630.xsd#bwa_RestructuringAbstract"
xlink:label="bwa_RestructuringAbstract" /> <loc xlink:type="locator"
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<DOCUMENT>
<TYPE>EX-101.DEF
<SEQUENCE>10
<FILENAME>bwa-20090630_def.xml
<DESCRIPTION>EX-101 DEFINITION LINKBASE DOCUMENT
<TEXT>
<XBRL>
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<!--XBRL document created with Dragon Tag (R) XBRL Enabler by Rivet Software version 3.0.0.47-->
<!--Based on XBRL 2.1--> <!--Created on: 10/3/2008 12:04:27 PM--> <!--Modified on: 7/29/2009 7:30:13 AM-->
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xlink:title="0601 - Disclosure - Basis of Presentation" /> <definitionLink
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xlink:role="http://borgwarner.com/20090331/role/ResearchAndDevelopment"
xlink:title="0602 - Disclosure - Research and Development" /> <definitionLink
xlink:type="extended"
xlink:role="http://borgwarner.com/20090331/role/IncomeTaxes"
xlink:title="0603 - Disclosure - Income Taxes" /> <definitionLink
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xlink:title="0604 - Disclosure - Sales of Receivables" /> <definitionLink
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xlink:title="0605 - Disclosure - Inventories" /> <definitionLink
xlink:type="extended"
xlink:role="http://borgwarner.com/20090331/role/PropertyPlantAndEquipment"
xlink:title="0606 - Disclosure - Property, Plant and Equipment" /> <definitionLink
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xlink:title="0609 - Disclosure - Fair Value Measurements" /> <definitionLink
xlink:type="extended"
xlink:role="http://borgwarner.com/20090331/role/FinancialInstruments"
xlink:title="0610 - Disclosure - Financial Instruments" /> <definitionLink
xlink:type="extended"
xlink:role="http://borgwarner.com/20090331/role/RetirementBenefitPlans"
xlink:title="0611 - Disclosure - Retirement Benefit Plans" /> <definitionLink
xlink:type="extended"
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xlink:title="0613 - Disclosure - Comprehensive Income (Loss)" /> <definitionLink
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xlink:title="0616 - Disclosure - Restructuring" /> <definitionLink
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xlink:role="http://borgwarner.com/20090331/role/ReportingSegments"
xlink:title="0617 - Disclosure - Reporting Segments" /> <definitionLink
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xlink:role="http://borgwarner.com/20090331/role/NewAccountingPronouncements"
xlink:title="0618 - Disclosure - New Accounting Pronouncements" /> <definitionLink
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xlink:role="http://borgwarner.com/20090331/role/RecentTransactionsTextBlock"
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