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Balance Sheet Information | 12 Months Ended
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Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet information | BALANCE SHEET INFORMATION Detailed balance sheet data is as follows:
| December 31,
(millions of dollars) | 2016 |  | 2015
Receivables, net: |  |  |  |  |
Customers | $ | 1,448.3 |  |  | $ | 1,423.6 |
Other | 243.9 |  |  | 243.3 |
Gross receivables | 1,692.2 |  |  | 1,666.9 |
Bad debt allowance(a) | (2.9 | ) |  | (1.9 | )
Total receivables, net | $ | 1,689.3 |  |  | $ | 1,665.0 |
Inventories, net: |  |  |  |  |
Raw material and supplies | $ | 378.6 |  |  | $ | 412.9 |
Work in progress | 102.9 |  |  | 102.5 |
Finished goods | 174.9 |  |  | 222.4 |
FIFO inventories | 656.4 |  |  | 737.8 |
LIFO reserve | (15.2 | ) |  | (14.2 | )
Total inventories, net | $ | 641.2 |  |  | $ | 723.6 |
Prepayments and other current assets: |  |  |  |  |
Prepaid tooling | $ | 77.5 |  |  | $ | 98.5 |
Prepaid taxes | 8.0 |  |  | 11.9 |
Restricted cash | — |  |  | 12.3 |
Other | 51.9 |  |  | 46.2 |
Total prepayments and other current assets | $ | 137.4 |  |  | $ | 168.9 |
Property, plant and equipment, net: |  |  |  |  |
Land and land use rights | $ | 111.0 |  |  | $ | 118.2 |
Buildings | 670.6 |  |  | 661.7 |
Machinery and equipment | 2,371.2 |  |  | 2,154.3 |
Capital leases | 3.9 |  |  | 7.2 |
Construction in progress | 338.2 |  |  | 386.4 |
Property, plant and equipment, gross | 3,494.9 |  |  | 3,327.8 |
Accumulated depreciation | (1,137.5 | ) |  | (1,036.8 | )
Property, plant & equipment, net, excluding tooling | 2,357.4 |  |  | 2,291.0 |
Tooling, net of amortization | 144.4 |  |  | 157.1 |
Property, plant & equipment, net | $ | 2,501.8 |  |  | $ | 2,448.1 |
Investments and other long-term receivables: |  |  |  |  |
Investment in equity affiliates | $ | 218.9 |  |  | $ | 200.1 |
Other long-term receivables | 283.3 |  |  | 260.8 |
Total investments and other long-term receivables | $ | 502.2 |  |  | $ | 460.9 |
Other non-current assets: |  |  |  |  |
Deferred income taxes | $ | 424.0 |  |  | $ | 213.5 |
Asbestos insurance asset | 178.7 |  |  | 108.5 |
Other | 150.7 |  |  | 158.0 |
Total other non-current assets | $ | 753.4 |  |  | $ | 480.0 |
| December 31,
(millions of dollars) | 2016 |  | 2015
Accounts payable and accrued expenses: |  |  |  |  |
Trade payables | $ | 1,323.3 |  |  | $ | 1,225.6 |
Payroll and employee related | 206.4 |  |  | 201.1 |
Product warranties | 63.9 |  |  | 70.6 |
Customer related | 52.8 |  |  | 55.7 |
Asbestos-related liability | 51.7 |  |  | 47.7 |
Interest | 22.9 |  |  | 20.4 |
Retirement related | 18.1 |  |  | 20.1 |
Dividends payable to noncontrolling shareholders | 15.7 |  |  | 20.0 |
Unrecognized tax benefits | 15.5 |  |  | 45.5 |
Insurance | 7.8 |  |  | — |
Severance | 6.4 |  |  | 29.4 |
Derivatives | 1.2 |  |  | 19.1 |
Other | 61.6 |  |  | 111.2 |
Total accounts payable and accrued expenses | $ | 1,847.3 |  |  | $ | 1,866.4 |
Other non-current liabilities: |  |  |  |  |
Deferred income taxes | $ | 54.2 |  |  | $ | 120.1 |
Deferred revenue | 33.5 |  |  | 36.6 |
Product warranties | 31.4 |  |  | 37.3 |
Other | 156.6 |  |  | 160.4 |
Total other non-current liabilities | $ | 275.7 |  |  | $ | 354.4 |
(a) Bad debt allowance: | 2016 |  | 2015 |  | 2014
Beginning balance, January 1 | $ | (1.9 | ) |  | $ | (2.3 | ) |  | $ | (2.1 | )
Provision | (3.2 | ) |  | (0.5 | ) |  | (0.6 | )
Write-offs | 0.2 |  |  | 0.7 |  |  | 0.3 |
Business divestiture | 2.0 |  |  | — |  |  | — |
Translation adjustment and other | — |  |  | 0.2 |  |  | 0.1 |
Ending balance, December 31 | $ | (2.9 | ) |  | $ | (1.9 | ) |  | $ | (2.3 | )
As of December 31, 2016 and December 31, 2015, accounts payable of $85.3 million and $76.9 million, respectively, were related to property, plant and equipment purchases. Interest costs capitalized for the years ended December 31, 2016, 2015 and 2014 were $14.1 million, $16.5 million and $13.5 million, respectively. NSK-Warner KK ("NSK-Warner") The Company has a 50% interest in NSK-Warner, a joint venture based in Japan that manufactures automatic transmission components. The Company's share of the earnings reported by NSK-Warner is accounted for using the equity method of accounting. NSK-Warner is the joint venture partner with a 40% interest in the Drivetrain Segment's South Korean subsidiary, BorgWarner Transmission Systems Korea Ltd. Dividends from NSK-Warner were $34.3 million, $18.0 million and $45.1 million in calendar years ended December 31, 2016, 2015 and 2014, respectively. NSK-Warner has a fiscal year-end of March 31. The Company's equity in the earnings of NSK-Warner consists of the 12 months ended November 30. Following is summarized financial data for NSK-Warner, translated using the ending or periodic rates, as of and for the years ended November 30, 2016, 2015 and 2014 (unaudited):
|  |  | November 30,
(millions of dollars) |  |  | 2016 |  | 2015
Balance sheets: |  |  |  |  |  |  |
Cash and securities |  |  | $ | 98.6 |  |  | $ | 74.9 |
Current assets, including cash and securities |  |  | 256.3 |  |  | 231.9 |
Non-current assets |  |  | 194.5 |  |  | 167.5 |
Current liabilities |  |  | 122.6 |  |  | 119.1 |
Non-current liabilities |  |  | 48.2 |  |  | 39.3 |
Total equity |  |  | 280.0 |  |  | 241.0 |
| Year Ended November 30,
(millions of dollars) | 2016 |  | 2015 |  | 2014
Statements of operations: |  |  |  |  |  |  |  |
Net sales | $ | 601.8 |  |  | $ | 519.0 |  |  | $ | 546.4 |
Gross profit | 134.1 |  |  | 118.6 |  |  | 124.5 |
Net earnings | 71.7 |  |  | 73.3 |  |  | 80.3 |
NSK-Warner had no debt outstanding as of November 30, 2016 and 2015. Purchases by the Company from NSK-Warner were $23.9 million, $23.0 million and $21.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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