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Interim Financial Information (Unaudited) | 12 Months Ended
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Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract] |
Quarterly Financial Information | INTERIM FINANCIAL INFORMATION (Unaudited) The following table presents summary quarterly financial data:
(in millions, except per share amounts) | 2019 |  | 2018
Quarter ended | Mar-31 |  | Jun-30 |  | Sep-30 |  | Dec-31 |  | Year |  | Mar-31 |  | Jun-30 |  | Sep-30 |  | Dec-31 |  | Year
Net sales | $ | 2,566 |  |  | $ | 2,551 |  |  | $ | 2,492 |  |  | $ | 2,559 |  |  | $ | 10,168 |  |  | $ | 2,784 |  |  | $ | 2,694 |  |  | $ | 2,478 |  |  | $ | 2,574 |  |  | $ | 10,530 |
Cost of sales | 2,047 |  |  | 2,038 |  |  | 1,968 |  |  | 2,014 |  |  | 8,067 |  |  | 2,193 |  |  | 2,114 |  |  | 1,963 |  |  | 2,030 |  |  | 8,300 |
Gross profit | 519 |  |  | 513 |  |  | 524 |  |  | 545 |  |  | 2,101 |  |  | 591 |  |  | 580 |  |  | 515 |  |  | 544 |  |  | 2,230 |
Selling, general and administrative expenses | 226 |  |  | 212 |  |  | 230 |  |  | 205 |  |  | 873 |  |  | 253 |  |  | 237 |  |  | 230 |  |  | 226 |  |  | 946 |
Other expense (income), net | 29 |  |  | 16 |  |  | 18 |  |  | (138 | ) |  | (75 | ) |  | 5 |  |  | 30 |  |  | 7 |  |  | 52 |  |  | 94 |
Operating income | 264 |  |  | 285 |  |  | 276 |  |  | 478 |  |  | 1,303 |  |  | 333 |  |  | 313 |  |  | 278 |  |  | 266 |  |  | 1,190 |
Equity in affiliates’ earnings, net of tax | (9 | ) |  | (9 | ) |  | (7 | ) |  | (7 | ) |  | (32 | ) |  | (10 | ) |  | (13 | ) |  | (15 | ) |  | (11 | ) |  | (49 | )
Interest income | (3 | ) |  | (2 | ) |  | (4 | ) |  | (3 | ) |  | (12 | ) |  | (2 | ) |  | (1 | ) |  | (1 | ) |  | (2 | ) |  | (6 | )
Interest expense | 14 |  |  | 14 |  |  | 15 |  |  | 12 |  |  | 55 |  |  | 16 |  |  | 15 |  |  | 14 |  |  | 14 |  |  | 59 |
Other postretirement expense (income) | — |  |  | 27 |  |  | (1 | ) |  | 1 |  |  | 27 |  |  | (3 | ) |  | (2 | ) |  | (3 | ) |  | (2 | ) |  | (10 | )
Earnings before income taxes and noncontrolling interest | 262 |  |  | 255 |  |  | 273 |  |  | 475 |  |  | 1,265 |  |  | 332 |  |  | 314 |  |  | 283 |  |  | 267 |  |  | 1,196 |
Provision for income taxes | 91 |  |  | 73 |  |  | 66 |  |  | 238 |  |  | 468 |  |  | 95 |  |  | 30 |  |  | 67 |  |  | 19 |  |  | 211 |
Net earnings | 171 |  |  | 182 |  |  | 207 |  |  | 237 |  |  | 797 |  |  | 237 |  |  | 284 |  |  | 216 |  |  | 248 |  |  | 985 |
Net earnings attributable to the noncontrolling interest, net of tax | 11 |  |  | 10 |  |  | 13 |  |  | 17 |  |  | 51 |  |  | 12 |  |  | 12 |  |  | 12 |  |  | 18 |  |  | 54 |
Net earnings attributable to BorgWarner Inc. (a) | $ | 160 |  |  | $ | 172 |  |  | $ | 194 |  |  | $ | 220 |  |  | $ | 746 |  |  | $ | 225 |  |  | $ | 272 |  |  | $ | 204 |  |  | $ | 230 |  |  | $ | 931 |
Earnings per share — basic | $ | 0.77 |  |  | $ | 0.84 |  |  | $ | 0.94 |  |  | $ | 1.07 |  |  | $ | 3.63 |  |  | $ | 1.07 |  |  | $ | 1.30 |  |  | $ | 0.98 |  |  | $ | 1.11 |  |  | $ | 4.47 |
Earnings per share — diluted | $ | 0.77 |  |  | $ | 0.83 |  |  | $ | 0.94 |  |  | $ | 1.06 |  |  | $ | 3.61 |  |  | $ | 1.07 |  |  | $ | 1.30 |  |  | $ | 0.98 |  |  | $ | 1.10 |  |  | $ | 4.44 |
_______________ (a) The Company's results were impacted by the following:
• | Quarter ended December 31, 2019: The Company recorded a pre-tax gain on the derecognition of Morse TEC of $177 million. In addition, the Company recorded tax expense as a result of the reversal of the previously recorded deferred tax assets related to the asbestos liabilities of $173 million, resulting in an after-tax gain of $4 million. The Company recorded restructuring expense of $31 million primarily related to actions to reduce structural costs. The Company recorded $7 million of additional loss on sale related to the finalization of the purchase price adjustments related to the sale of the non-core pipes and thermostat product lines. The Company recorded reductions of income tax expense of $11 million related to a global realignment plan and $8 million related to restructuring expense, partially offset by an increase in income tax of $5 million related to other one-time adjustments.
• | Quarter ended September 30, 2019: The Company recorded restructuring expense of $14 million primarily related to Drivetrain and Engine segment actions designed to improve future profitability and competitiveness. The Company recorded expenses, primarily professional fees, related to the Company's review of strategic acquisition and divestiture targets, including the 20% equity interest in Romeo, and the divestiture activities for the non-core pipes and thermostat product lines of $4 million. The Company recorded reductions of income tax expense of $4 million related to restructuring expense and $9 million related to other one-time adjustments.
• | Quarter ended June 30, 2019: The Company recorded restructuring expense of $13 million primarily related to Drivetrain and Engine segment actions designed to improve future profitability and competitiveness. The Company recorded expenses, primarily professional fees, related to the Company's review of strategic acquisition and divestiture targets, including the 20% equity interest in Romeo, and the divestiture activities for the non-core pipes and thermostat product lines of $5 million. The Company recorded reductions of income tax expense of $4 million related to restructuring expense, $6 million related to pension settlement loss, partially offset by an increase in income tax of $1 million related to other one-time adjustments.
• | Quarter ended March 31, 2019: The Company recorded restructuring expense of $14 million primarily related to Drivetrain and Engine segment actions designed to improve future profitability and competitiveness. The Company recorded expenses, primarily professional fees, associated with divestiture activities for the non-core pipes and thermostat product lines of $1 million. The Company recorded $14 million of expense related to the receipt of a final unfavorable arbitration decision associated with the resolution of a matter related to a previous acquisition. The Company recorded reductions of income tax expense of $3 million related to restructuring expense and $5 million related to other one-time adjustments. The Company recorded an increase in income tax expense of $22 million due to the U.S. Department of the Treasury's issuance of the final regulations in the first quarter of 2019 related to the calculation of the one-time transition tax.
• | Quarter ended December 31, 2018: The Company recorded an asset impairment expense of $26 million to adjust the net book value of the pipes and thermostat product lines to fair value. The Company recorded asbestos-related adjustments resulting in a net increase to Other Expense of $23 million. The Company recorded restructuring expense of $23 million primarily related to the Engine and Drivetrain segment actions designed to improve future profitability and competitiveness. The Company recorded a gain of $19 million related to the sale of a building at a manufacturing facility located in Europe. The Company also recorded merger and acquisition expense of $1 million primarily related to professional fees associated with divestiture activities for the non-core pipes and thermostat product line. The Company recorded reductions of income tax expense of $6 million related to restructuring expense, $6 million related to asbestos-related adjustments, $8 million related to asset impairment expense, $9 million related to valuation allowance releases, $3 million related to tax reserve adjustments, and $19 million related to changes in accounting methods and tax filing positions for prior years primarily related to the Tax Act. Additionally, the Company recorded income tax expense of $6 million related to a gain on the sale of a building, and $7 million related to adjustments to measurement period provisional estimates associated with the Tax Act.
• | Quarter ended September 30, 2018: The Company recorded restructuring expense of $6 million primarily related to the actions within its Engine segment designed to improve future profitability and competitiveness. The Company also recorded merger and acquisition expense of $2 million primarily related to professional fees associated with divestiture activities for the non-core pipes and thermostat product line. The Company recorded reductions of income tax expense of $1 million related to restructuring expense, $7 million related to adjustments to measurement period provisional estimates associated with the Tax Act, $1 million related to a decrease in our deferred tax liability due to the Company's ability to record a tax benefit for certain foreign tax credits available due to actions the Company took during the year, and $2 million related to other one-time tax adjustments, primarily due to changes in tax filing positions.
• | Quarter ended June 30, 2018: The Company recorded restructuring expense of $31 million primarily related to the initiation of actions within its emissions business in the Engine segment designed to improve future profitability and competitiveness. The Company also recorded merger and acquisition expense of $1 million primarily related to professional fees associated with divestiture activities for the non-core pipes and thermostat product line. The Company recorded reductions of income tax expenses of $8 million associated with restructuring expense, $13 million related to adjustments to measurement period provisional estimates associated with the Tax Act, $21 million related to a decrease in our deferred tax liability due to the Company's ability to record a tax benefit for certain foreign tax credits available due to actions the Company took in the second quarter, and $10 million related to other one-time tax adjustments.
• Quarter ended March 31, 2018: The Company recorded restructuring expense of $8 million primarily related to Engine and Drivetrain segment actions designed to improve future profitability and competitiveness. The Company recorded a gain of approximately $4 million related to the settlement of a commercial contract for an entity acquired in the 2015 Remy acquisition. The Company also recorded merger and acquisition expense of $2 million primarily related to professional fees associated with divestiture activities for the non-core pipes product line. The Company recorded income tax expenses of $1 million, and reductions of income tax expense of $1 million which is associated with restructuring expense.

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -URI http://asc.fasb.org/topic&trid=2126967 + Details
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