Notes to Consolidated Financial Statements 54 Geographic Information Sales to Major Customers Interim Financial Information (Unaudited) No country outside the U.S., other than Germany and the United  Kingdom, accounts for as much as 5% of consolidated net sales,  attributing sales to the sources of the product rather than the  location of the customer. Also, the Company’s 50% equity invest- ment in NSK-Warner (see Note 5) amounting to $188.2 million at  December31, 2004 is excluded from the definition of long-lived  assets, as are goodwill and certain other non-current assets. Consolidated sales included sales to Ford Motor Company of approximately 21%, 23%, and 26%; to DaimlerChrysler of approxi- mately 14%, 17%, and 20%; and to General Motors Corporation of  approximately 10%, 12%, and 12% for the years ended December  31, 2004, 2003 and 2002, respectively. Sales to Volkswagen were  approximately 10% in 2004. Both of our operating segments had  significant sales to all four of the customers listed above. Such sales  consisted of a variety of products to a variety of customer locations  and regions. No other single customer accounted for more than 10%  of consolidated sales in any year of the periods presented. The following information includes all adjustments, as well as normal  recurring items, that the Company considers necessary for a fair  presentation of 2004 and 2003 interim results of operations. Certain  2004 and 2003 quarterly amounts have been reclassified to conform  to the annual presentation.  (a) In 2002, upon the adoption of SFAS No. 142, the Company recorded a $269.0 million after tax charge for cumulative effect of accounting principle related to goodwill.  This charge was $5.01 per diluted share.  (b) In 2001, the Company recorded $28.4 million in non-recurring charges. Net of tax, this totaled $19.0 million or $0.36 per diluted share. (c) In 2000, the Company recorded $62.9 million in restructuring and other non-recurring charges. Net of tax, this totaled $38.7 million or $0.74 per diluted share. Net sales  Long-lived assets millions of dollars 2004  2003   2002  2004 2003  2002 United States  $1,964.9 $1,889.2 $1,859.1 $ 637.1 $ 636.9 $643.0 Europe: Germany 834.1 637.7 453.4 278.7 234.6  182.3 United Kingdom 186.0 146.3 129.1 39.5 36.4  28.1 Other Europe 237.1 167.7 106.9 106.1 78.3 44.3 Total Europe  1,257.2 951.7 689.4 424.3 349.3 254.7 Other foreign  303.2 228.3 182.6 117.9 89.6 80.8 Total  $3,525.3 $3,069.2 $2,731.1 $1,179.3 $1,075.8 $978.5 $_{millions of dollars, except per share amounts}$  2004 2003 Quarter Ended,  Mar-31  Jun-30  Sep-30  Dec-31  Year 2004 Mar-31  Jun-30  Sep-30  Dec-31  Year 2003 Net sales  $903.1 $893.2 $839.8 $889.2 $3,525.3 $775.7 $769.5 $725.2 $798.8 $3,069.2 Cost of sales  730.5 723.4 694.7 725.5 2,874.2  624.2 622.8 595.9 639.7 2,482.5 Gross profit 172.6 169.8 145.1 163.7 651.1  151.5 146.7 129.3 159.1 586.7 Selling, general and  administrative expenses 94.7 87.8 77.4 79.1 339.0  83.6 77.0 72.7 83.5 316.9  Other, net  0.3 0.6 (0.5)  2.7 3.0  —  0.1 0.1 (0.4)  (0.1) Operating income 77.6 81.4 68.2 81.9 309.1  67.9 69.6 56.5 76.0 269.9 Equity in affiliate earnings, net of tax  (6.5) (8.4) (6.2) (8.1) (29.2) (6.4) (5.2) (3.6) (4.8) (20.1) Interest expense, net  7.5 7.7 7.5 7.0 29.7 9.0 8.7 8.1 7.5 33.3  Income before income taxes  76.6 82.1 66.9 83.0 308.6  65.3 66.1 52.0 73.3 256.7  Provision for income taxes  22.9 24.6 20.1 13.5 81.2  18.9 19.2 14.2 20.9 73.2  Minority interest, net of tax  2.6 2.8 2.0 1.8 9.1  2.2 2.1 1.9 2.4 8.6  Net earnings  $ 51.1 $ 54.7 $ 44.8  $ 67.7 $ 218.3 $ 44.2  $ 44.8  $ 35.9  $ 50.0  $ 174.9 Earnings/(loss) per share – basic  $ 0.92 $ 0.98 $ 0.80 $ 1.20 $ 3.91  $ 0.83 $ 0.83 $ 0.66 $ 0.91 $ 3.23 Earnings/(loss) per share – diluted  $ 0.91 $ 0.97 $ 0.79 $ 1.19 $ 3.86 $ 0.82 $ 0.83 $ 0.65 $ 0.90 $ 3.20 millions of dollars, except per share data For the Year Ended December 31, 2004 2003 2002 2001 2000 STATEMENT OF OPERATIONS DATA Net sales  $3,525.3 $3,069.2 $2,731.1 $2,351.6 $2,645.9  Cost of sales  2,874.2 2,482.5 2,176.5 1,890.8 2,090.7 Gross profit 651.1 586.7 554.6 460.8 555.2 Selling, general and administrative expenses  339.0 316.9 303.5 249.7 258.7 Goodwill amortization  — — —  42.0  43.3 Other, net  3.0 (0.1) (0.9) (2.1) (8.1) Restructuring and other non—recurring charges  — — — 28.4$^{b}$ 62.9$^{c}$  Operating income  309.1 269.9 252.0 142.8 198.4 Equity in affiliate earnings, net of tax  (29.2) (20.1) (19.5) (14.9) (15.7) Interest expense, net  29.7 33.3 37.7 47.8 62.6 Earnings before income taxes  308.6 256.7 233.8 109.9 151.5 Provision for income taxes  81.2 73.2 77.2 39.7 54.8 Minority interest, net of tax  9.1 8.6 6.7 3.8 2.7 Net earnings before cumulative effect of accounting change  218.3 174.9 149.9 66.4 94.0 Cumulative effect of change in accounting principle, net of tax —  —  (269.0)$^{a}$ — — Net earnings/(loss)  $ 218.3  $ 174.9 $ (119.1)  $ 66.4 $ 94.0  Earnings/(loss) per share — basic  $ 3.91  $ 3.23 $(2.23)$^{a}$  $ 1.26$^{b}$  $ 1.78 c Average shares outstanding (thousands) — basic  55,872 54,116 53,250 52,630 52,782 Earnings/(loss) per share — diluted  $ 3.86 $ 3.20 $ (2.22)$^{a}$  $ 1.26$^{b}$  $ 1.77 c Average shares outstanding (thousands) — diluted  56,537 54,604 53,708 52,926 52,974 Cash dividend declared per share  $0.50  $ 0.36 $ 0.30 $ 0.30 $ 0.30  BALANCE SHEET DATA  (at end of period)  Total assets  $3,529.1 $3,140.5 $2,682.9 $2,770.9 $2,739.6 Total debt  584.5 655.5 646.7 737.0 794.8 55 Selected Financial Data BorgWarner Inc.  and Consolidated Subsidiaries