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44
compared to 2012 due to a reduction in accruals for incentive compensation, offset by costs from the acquisition of MVL in
October 2012.
Amortization
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(in millions)
Amortization ............................................................................................................... $ 104 $ 84 $ (20)
Amortization expense reflects the non-cash charge related to definite-lived intangible assets primarily recognized as part
of the Acquisition and resulting from the acquisition of MVL in October 2012. The increase in amortization during the year
ended December 31, 2013 compared to 2012 resulted primarily from the acquisition of MVL in October 2012.
Restructuring
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(dollars in millions)
Restructuring............................................................................................................... $ 145 $ 171 $ 26
Percentage of net sales................................................................................................ 0.9% 1.1%
The decrease in restructuring expense in 2013 as compared to 2012 is due to the initiation of various restructuring
actions, primarily in Europe, in the fourth quarter of 2012 which are expected to total approximately $300 million. Additional
restructuring programs totaling approximately $75 million were initiated in the first quarter of 2013. These restructuring actions
were initiated in response to lower OEM production volumes in Europe and continued economic uncertainties, and include
workforce reductions, as well as plant closures.
Refer to Note 10. Restructuring to the audited consolidated financial statements included herein for additional
information.
Interest Expense
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(in millions)
Interest expense........................................................................................................... $ 143 $ 136 $ (7)
The increase in interest expense for the year ended December 31, 2013 as compared to the year ended December 31,
2012 reflects the issuance of $800 million of 10-year, 5.0% unsecured senior notes in the first quarter of 2013, partially offset
by a reduction in interest expense from the repayment of the senior secured Tranche B Term Loan with the proceeds.
Refer to Note 11. Debt, to the audited consolidated financial statements included herein for additional information.
Other Income, Net
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(in millions)
Other (expense) income, net ....................................................................................... $(18) $ 5 $ (23)