<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED 1995 or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
COMMISSION FILE NUMBER 33-75572
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
Borg-Warner Automotive, Inc. Retirement Savings Plan as Amended and
Restated
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
Borg-Warner Automotive, Inc.
200 South Michigan Avenue
Chicago, Illinois 60604
REQUIRED INFORMATION
ITEM 4.
Financial Statements as of December 31, 1995 and 1994 and for the year ended
December 31, 1995 and Supplemental Schedule as of December 31, 1995 and
Independent Auditors' Report
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees have duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized.
<PAGE> 2
BORG-WARNER AUTOMOTIVE, INC.
RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AS OF
DECEMBER 31, 1995 AND 1994 AND FOR THE
YEAR ENDED DECEMBER 31, 1995 AND
SUPPLEMENTAL SCHEDULE AS OF
DECEMBER 31, 1995 AND
INDEPENDENT AUDITORS' REPORT
<PAGE> 3
BORG-WARNER AUTOMOTIVE, INC.
RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits,
December 31, 1995 and 1994 2
Statement of Changes in Net Assets Available for Benefits,
Year Ended December 31, 1995 3
Notes to Financial Statements,
Years Ended December 31, 1995 and 1994 4-12
SUPPLEMENTAL SCHEDULE:
Item 27a - Schedule of Assets Held for Investment Purposes, December 31, 1995 13
</TABLE>
(Supplemental schedules not listed are omitted due to the absence of conditions
under which they are required.)
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
Borg-Warner Automotive, Inc. Retirement Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the Borg-Warner Automotive, Inc. Retirement Savings Plan as of
December 31, 1995 and 1994, and the related statements of changes in net
assets available for benefits for the year ended December 31, 1995. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the Plan's financial statements referred to above present
fairly, in all material respects, the net assets available for benefits of the
Plan as of December 31, 1995 and 1994, and the changes in net assets
available for benefits for the year ended December 31, 1995 in conformity with
generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The supplemental schedule of assets held for
investment purposes as of December 31, 1995 is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements, but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedule has been
subjected to the auditing procedures applied in the audit of the basic 1995
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ DELOITTE & TOUCHE LLP
- -------------------------
DELOITTE & TOUCHE LLP
Chicago, Illinois
June 26, 1996
<PAGE> 5
BORG-WARNER AUTOMOTIVE, INC.
RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 AND 1994
(IN THOUSANDS OF DOLLARS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
NET ASSETS
INVESTMENT IN MASTER TRUST $267,416 $215,545
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $267,416 $215,545
=========== ===========
</TABLE>
See notes to financial statements.
- 2 -
<PAGE> 6
BORG-WARNER AUTOMOTIVE, INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS OF DOLLARS)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income from Master Trust $ 49,631
Transfer from other Borg-Warner Automotive, Inc. Plans 1,415
Contributions from participants 9,083
Contributions from the Company 9,469
------------
Total additions 69,598
------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Participants' withdrawals 17,250
Miscellaneous expense 477
------------
Total deductions 17,727
------------
NET INCREASE 51,871
NET ASSETS AVAILABLE FOR BENEFITS - Beginning of year 215,545
------------
NET ASSETS AVAILABLE FOR BENEFITS - End of year $267,416
============
</TABLE>
See notes to financial statements.
- 3 -
<PAGE> 7
BORG-WARNER AUTOMOTIVE, INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1995 AND 1994
- --------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
Borg-Warner Automotive, Inc. (the "Company") established the
Borg-Warner Automotive, Inc. Retirement Savings Master Trust (the "Master
Trust") with Putnam Fiduciary Trust, Boston, Massachusetts on April 1, 1994,
pursuant to the Benefits Agreement entered into in accordance with the
January 27, 1993 distribution of the Company's stock to the stockholders of
its then parent company, Borg-Warner Security Corporation ("BW-Security").
The BW-Security Master Trust (the "Prior Master Trust") was originally
established on April 5, 1988 while the Company was a wholly owned subsidiary
of BW-Security with eligible employees of the Company participating in the
Prior Master Trust through the Borg-Warner Automotive, Inc. Retirement
Savings Plan ("the Plan").
Effective April 1, 1994, the Prior Master Trust transferred to the Master
Trust assets equal to participant balances in the Plan under the Prior
Master Trust as of March 31, 1994 pursuant to the Benefits Agreement.
The Plan is a defined contribution plan designed to provide eligible
employees with systematic savings and tax-advantaged long-term savings for
retirement. The Company is the Plan sponsor. The Company has assigned the
Retirement Savings Plan Committee (the "Committee") to oversee the Plan.
The Committee has appointed Putnam Investor Services, Inc. and Putnam
Fiduciary Trust to perform the administrative, investment, and trustee
services for the Plan.
A complete description of the Plan procedures and provisions is contained in
the Plan document. Significant Plan features include:
ELIGIBILITY - Employees of the Company, its divisions, subsidiaries, or
affiliates may elect to participate in the Plan subject to the consent of
the Committee if they have been employed for at least six consecutive
months.
PARTICIPANT'S ACCOUNT - A Retirement Savings Plan account is established for
each participant in the Plan. The participant's account consists of the
following:
Company Retirement Account - The Company makes contributions to this account
on behalf of each eligible participant based on the participant's
compensation, years of vested service, and age. No employee contributions
are made to this account.
Employee Retirement Account - Participants may voluntarily contribute from
one to three percent of their compensation to this account. The Company
makes contributions equal to 100 percent of participant contributions to
this account.
Savings Account - Participants may voluntarily contribute one to ten percent
of their compensation to this account. No Company contributions are made to
this account.
CONTRIBUTIONS TO THE PLAN - For the year ended December 31, 1995, the
Company made contributions to the Company Retirement Account for all
eligible employees as a percentage of compensation based on years of vested
service as follows:
- 4 -
<PAGE> 8
<TABLE>
<CAPTION>
PERCENTAGE OF COMPENSATION
UNDER THE SOCIAL SECURITY WAGE BASE
FRANKFORT
YEARS OF VESTED SERVICE AND BELLWOOD ALL OTHER
<S> <C> <C>
Less than or equal to 10 years 3.0% 4.0%
Greater than 10 but less than or equal to 20 years 4.0% 5.0%
Greater than 20 years 5.0% 6.0%
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF COMPENSATION
OVER THE SOCIAL SECURITY WAGE BASE
FRANKFORT
YEARS OF VESTED SERVICE AND BELLWOOD ALL OTHER
<S> <C> <C>
Less than or equal to 10 years 6.0% 8.0%
Greater than 10 but less than or equal to 20 years 8.0% 10.0%
Greater than 20 years 10.0% 11.5%
</TABLE>
The Social Security Wage Base was $61,200 for the year ended December 31,
1995.
For a participant in the Plan who was (i) a participant in the Transmission
and Engine Components, Bellwood Plant Employees' Pension Plan or in the
Transmission and Engine Components Corporation, Frankfort Plant
Employees' Pension Plan on March 31, 1989, (ii) age 50 or older as of
December 31, 1989 or had 20 or more years of vested service as of December
31, 1989, and (iii) eligible to receive a contribution to the Company
Retirement Account as of April 1, 1989, the Company makes additional
contributions to the Company Retirement Account as follows:
- One percent of compensation, if age 50 or older as of December 31, 1989,
or had 20 or more years of vested service as of December 31, 1989.
- Two percent of compensation, if age 50 or older as of December 31, 1989,
and had 20 or more years of vested service as of December 31, 1989.
For a participant in the Plan who was (i) a participant in the Borg-Warner
Corporation Employees' Pension Plan (for Muncie Plant guards) on December
15, 1989, (ii) age 45 or older as of December 31, 1989, and (iii) eligible
to receive a contribution to the Company Retirement Account as of January 1,
1990, the Company makes additional contributions to the Company Retirement
Account as follows:
- One percent of compensation, if age 45 or older, but less than 50, as of
December 31, 1989.
- Two percent of compensation, if age 50 or over as of December 31, 1989.
If an employee was (i) a participant in the Borg-Warner Retirement Plan as
of May 31, 1988, (ii) age 45 or older as of December 31, 1988, and (iii)
eligible to receive a contribution to the Company Retirement Account as of
June 1, 1988, the Company makes additional contributions to the Company
Retirement Account as follows:
ATTAINED AGE AS OF ADDITIONAL COMPANY
DECEMBER 31, 1988 RETIREMENT CONTRIBUTION
45 but less than 50 years of age 1% of compensation
50 and over 2% of compensation
- 5 -
<PAGE> 9
MASTER TRUST - Participants may elect to invest their Company Retirement
Account, Employee Retirement Account and Savings Account in one or more of
the funds of the Master Trust maintained by Putnam Fiduciary Trust, other
than the pending account and loan fund which are not fund elections
available to participants. The funds of the Master Trust are as follows:
Investment Contracts Fund - Invests in investment contracts with either
highly rated insurance companies or major banks and also in short-term
investments which provide liquidity.
Putnam Voyager Fund - Invests a significant portion of its assets in
securities of smaller and newer issuers. The fund may borrow money to
purchase additional portfolio securities. The fund also trades
securities for short-term profits.
Putnam S&P 500 Index Fund - Invests primarily in publicly traded
common stocks either directly or through collective investment trusts
having a similar investment objective. A small portion of the fund's
assets are invested in high-quality money market instruments and
financial futures contracts.
Putnam U.S. Government Bond Fund - Invests exclusively in
securities backed by the full faith and credit of the United States
Government, repurchase agreements, and forward committments with respect
to such securities. Effective December 29, 1995, the Master Trust
discontinued this fund as an investment option and participants'
investments in this fund were transfered to other participant-elected
investment options. No balance existed in this fund at December 31,
1995.
The George Putnam Fund of Boston - Invests in a well-diversified
portfolio of stocks and bonds.
Borg-Warner Automotive, Inc. Stock Fund - Invests in the common stock of
Borg-Warner Automotive, Inc.
Putnam Income Fund- Invests primarily in quality corporate and government
bonds that pay a rate of interest in regularly scheduled payments. The
fund became an eligible investment option in the Master Trust effective
October 1, 1995.
Loan Fund - Invests in plan participant loans. Participant borrowings
increase the Fund balance and principal repayments decrease the Fund
balance with proceeds reinvested in participant directed fund investment
elections. The Loan Fund does not share in the dividends, earnings, and
gains of the Master Trust.
Pending Account - Represents (1) forfeitures of nonvested account
balances until applied against future Company contributions; (2)
proceeds from the sale of assets prior to distribution to the newly
elected investment fund.
- 6 -
<PAGE> 10
Participant interests in each of the funds are accounted for in units of
value. The following is a summary by fund of the number of units and net
asset value per unit:
<TABLE>
<CAPTION>
DECEMBER 31, 1995
NUMBER NET ASSET
OF VALUE
UNITS PER UNIT
<S> <C> <C>
Investment Contracts Fund 89,595,912 $ 1.00
Putnam Voyager Fund 4,488,134 15.34
Putnam S&P 500 Index Fund 1,941,030 13.88
The George Putnam Fund of Boston 4,218,434 15.52
Borg-Warner Automotive, Inc. Stock Fund 349,928 32.00
Putnam Income Fund 354,192 7.23
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1994
NUMBER NET ASSET
OF VALUE
UNITS PER UNIT
<S> <C> <C>
Investment Contracts Fund 87,664,107 $ 1.00
Putnam Voyager Fund 3,832,112 11.56
Putnam S&P 500 Index Fund 1,783,700 10.12
Putnam U.S. Government Bond Fund 752,040 12.20
The George Putnam Fund of Boston 3,555,650 12.93
Borg-Warner Automotive, Inc. Stock Fund 327,708 25.12
</TABLE>
Contributions to, and earnings of, each fund are invested in appropriate
holdings on a timely basis. All purchases of Borg-Warner Automotive, Inc.
stock are made on the open market.
VESTING - Fund assets attributable to voluntary participant contributions
are fully vested at all times. Fund assets attributable to Company
contributions vest 100 percent upon completion of five years of vested
service, or upon permanent disability, death or attaining age 65 provided,
however, the participant is employed by the Company on that date.
WITHDRAWALS - While participants are actively employed, no withdrawals may
be made from either the Company Retirement Account or Employee Retirement
Account. Withdrawals may be made from the Savings Account at the
participants' option subject to certain limitations. Upon termination of
employment, participants may elect an immediate or future distribution of
the participants' vested account balances as permitted by the Plan subject
to ERISA regulations.
LOANS - Participants may borrow up to 50% of their Savings Account balance
with a minimum of $500 and a maximum of $50,000 limited to a single loan
outstanding at any time. Loan terms range from six months to five years,
with interest charged at the rate established by the trustee for similar
loans on the origination date. No loans are permitted from the Company
Retirement Account or the Employee Retirement Account.
- 7 -
<PAGE> 11
PRIORITIES UPON TERMINATION - Although the Company has not expressed any
intent to discontinue the Plan, it may do so at any time. In the event of
termination, the interests of the affected participants shall become fully
vested. The Plan assets then remaining shall be used to pay administrative
expenses and benefits equal to the balance in the participants' accounts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS - The Investment Contracts Fund of the Master Trust is stated at
cost plus interest earned to date (i.e., contract value) as reported by the
Trustee. The contract value of the Investment Contract Fund approximates
the fair value. The average yield for the Investment Contracts Fund was
6.9% for the years ended December 31, 1995 and 1994. The Investment
Contracts Fund is fully benefit responsive. Investments in all other
funds are stated at market value as reported by the Trustee.
ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of net assets
available for benefits as of the date of the financial statements, and the
reported amounts of changes in net assets available for benefits during the
reporting period. Actual results could differ from those estimates.
MISCELLANEOUS EXPENSES - Transfer taxes and brokerage expenses attributable
to the Master Trust assets are charged to the applicable fund. Any other
expenses incurred in respect of Master Trust income or property are charged
to the accounts of the participants, where applicable, or are paid in such
manner as the Company determines.
BENEFITS PAYABLE - In accordance with the AICPA Audit and Accounting Guide,
Audits of Employee Benefit Plans, the Plan does not record benefits payable
to participants who have withdrawn from the Plan. As of December 31, 1995,
no benefits were due to participants withdrawn from the Plan.
RECLASSIFICATIONS - Certain 1994 amounts have been reclassified to conform
with the 1995 presentation.
3. TAX STATUS
The Plan obtained a determination letter on April 6, 1995 in which the
Internal Revenue Service determined that the Plan was in compliance with
applicable requirements of the Internal Revenue Code. The Plan's management
believes it is being operated in accordance with the applicable rules and
regulations of the Internal Revenue Code; therefore, no provision for income
taxes has been made in the Plan's financial statements.
4. FUND INFORMATION
Fair value of Plan investments in the Master Trust as of December 31, 1995
and 1994, investment income from Master Trust, contributions from
participants, contributions from Company, and participants' withdrawals are
as follows:
- 8 -
<PAGE> 12
<TABLE>
<CAPTION>
DECEMBER 31
1995 1994
<S> <C> <C>
Fair value of Plan investments in Master Trust (in thousands):
Investment Contracts Fund $89,596* $87,664*
Putnam Voyager Fund 68,848* 44,299*
Putnam S&P 500 Index Fund 26,941* 18,051*
Putnam U.S. Government Bond Fund 9,175
The George Putnam Fund of Boston 65,470* 45,975*
Borg-Warner Automotive, Inc. Stock Fund 11,198 8,232
Putnam Income Fund 2,561
Loan Fund 2,434 2,126
Pending Account 368 23
-------------- ------------
Total $267,416 $215,545
============== ============
</TABLE>
* Represents 5% or more of plan assets.
<TABLE>
<CAPTION>
Investment income from Master Trust, for the year ended December 31, 1995
(in thousands):
<S> <C>
Investment Contracts Fund $ 5,949
Putnam Voyager Fund 18,631
Putnam S&P 500 Index Fund 6,828
Putnam U.S. Government Bond Fund 1,312
The George Putnam Fund of Boston 13,813
Borg-Warner Automotive, Inc. Stock Fund 2,852
Putnam Income Fund 77
Loan Fund 169
--------
Total $ 49,631
========
</TABLE>
<TABLE>
<CAPTION>
Contributions from participants, for the year-ended December 31, 1995
(in thousands):
<S> <C>
Investment Contracts Fund $1,526
Putnam Voyager Fund 2,892
Putnam S&P 500 Index Fund 1,100
Putnam U.S. Government Bond Fund 381
The George Putnam Fund of Boston 2,451
Borg-Warner Automotive, Inc. Stock Fund 714
Putnam Income Fund 19
-------
Total $9,083
=======
</TABLE>
- 9 -
<PAGE> 13
<TABLE>
<CAPTION>
Contributions from the Company for the year ended December 31, 1995 (in
thousands):
<S> <C>
Investment Contracts Fund $ 1,564
Putnam Voyager Fund 2,861
Putnam S&P 500 Index Fund 1,095
Putnam U.S. Government Bond Fund 408
The George Putnam Fund of Boston 2,743
Borg-Warner Automotive, Inc. Stock Fund 788
Putnam Income Fund 10
-------
Total $ 9,469
=======
<CAPTION>
Participants' withdrawals, for the year ended December 31, 1995 (in
thousands):
<S> <C>
Investment Contracts Fund $ 8,248
Putnam Voyager Fund 2,846
Putnam S&P 500 Index Fund 1,409
Putnam U.S. Government Bond Fund 784
The George Putnam Fund of Boston 3,446
Borg-Warner Automotive, Inc. Stock Fund 418
Putnam Income Fund 1
Loan Fund 98
Total -------
$17,250
=======
</TABLE>
5. MASTER TRUST
The plans participating in the Master Trust are the Borg-Warner Automotive,
Inc. Retirement Savings Plan ("BWARSP"), the Ithaca Retirement Savings Plan
("IRSP"), the Borg-Warner Retirement Savings Plan, Dixon Plant ("DRSP"), the
Borg-Warner Retirement Savings Plan, Blytheville Plant ("BRSP"), the
Borg-Warner Automotive Diversified Transmission Products Corporation, Muncie
Plant Retirement Savings Plan ("MRSP"), the Borg-Warner Automotive
Diversified Transmission Products Corporation, Muncie Plant, Local 287
Retirement Investment Plan ("MRIP"), the Borg-Warner Automotive Automatic
Transmission Systems Corporation, Coldwater Plant Retirement Savings Plan
("CRSP"), the Borg-Warner Automotive Automatic Transmission Systems
Corporation, Sterling Heights Plant Savings Plan ("SHSP"), the Borg-Warner
Automotive Automatic Transmission Systems Corporation, Plymouth Plant
Retirement Savings Plan ("PRSP"), and the Borg-Warner Automotive Automatic
Transmission Systems Corporation, Romulus Plant Retirement Savings Plan
("RRSP").
- 10 -
<PAGE> 14
Each plan's interest in the net assets of the Master Trust as of December
31, 1995 and 1994 is as follows:
<TABLE>
<CAPTION>
PERCENT OF MASTER TRUST NET ASSETS
DECEMBER 31, 1995
--------------------------------------------------------------------------------------------------------------------
NAME INVESTMENT PUTNAM PUTNAM THE GEORGE BORG-WARNER PUTNAM
OF CONTRACTS VOYAGER S&P 500 PUTNAM FUND AUTOMOTIVE, INC. INCOME LOAN PENDING TOTAL
PLAN FUND FUND INDEX FUND OF BOSTON STOCK FUND FUND FUND ACCOUNT PLAN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BWARSP 26.94% 20.70% 8.10% 19.68% 3.37% 0.77% 0.73% 0.11% 80.40%
IRSP 1.72 1.28 0.48 1.20 0.42 0.01 0.06 0.00 5.17
DRSP 0.50 0.42 0.08 0.37 0.13 0.00 0.01 0.00 1.51
BRSP 0.23 0.21 0.09 0.23 0.08 0.00 0.01 0.00 0.85
MRSP 0.09 0.31 0.13 0.32 0.07 0.00 0.04 0.00 0.96
MRIP 1.41 3.84 1.23 3.99 0.10 0.17 0.04 0.01 10.79
SHSP 0.02 0.02 0.01 0.03 0.02 0.00 0.00 0.00 0.10
CRSP 0.01 0.02 0.02 0.02 0.01 0.00 0.00 0.00 0.08
RRSP 0.01 0.03 0.01 0.02 0.03 0.00 0.00 0.00 0.10
PRSP 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.04
----- ----- ----- ----- ---- ---- ---- ---- ------
Total by
fund 30.94% 26.84% 10.16% 25.87% 4.23% 0.95% 0.89% 0.12% 100.00%
===== ===== ===== ===== ==== ==== ==== ==== ======
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF MASTER TRUST NET ASSETS
DECEMBER 31, 1994
----------------------------------------------------------------------------------------------------------------------
NAME INVESTMENT PUTNAM PUTNAM PUTNAM U.S. THE GEORGE BORG-WARNER
OF CONTRACTS VOYAGER S&P 500 GOVERNMENT PUTNAM FUND AUTOMOTIVE, INC. LOAN PENDING TOTAL
PLAN FUND FUND INDEX FUND BOND FUND OF BOSTON STOCK FUND FUND ACCOUNT PLAN
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BWARSP 33.61% 16.99% 6.92% 3.52% 17.63% 3.16% 0.82% 0.01% 82.66%
IRSP 1.97 1.01 0.38 0.18 0.92 0.35 0.06 0.01 4.88
DRSP 0.54 0.30 0.06 0.03 0.28 0.11 0.01 0.00 1.33
BRSP 0.25 0.13 0.08 0.04 0.17 0.07 0.00 0.00 0.74
MRSP 0.08 0.16 0.09 0.09 0.11 0.08 0.02 0.00 0.63
MRIP 1.43 2.64 0.91 2.44 2.34 0.00 0.00 0.00 9.76
----- ----- ---- ---- ----- ---- ---- ---- ------
Total by
fund 37.88% 21.23% 8.44% 6.30% 21.45% 3.77% 0.91% 0.02% 100.00%
===== ===== ==== ==== ===== ==== ==== ==== ======
</TABLE>
The net assets of the Master Trust are allocated to each plan based on the
above percentages. Investments in the Master Trust at December 31, 1995 and
1994 and components of investment income for the Master Trust for the year
ended December 31, 1995 are summarized in Note 6.
- 11 -
<PAGE> 15
6. MASTER TRUST INFORMATION
The following tables present the fair value of investments of the Master
Trust as of December 31, 1995 and 1994 and the components of investment
income for the Master Trust for the year ended December 31, 1995.
<TABLE>
<CAPTION>
DECEMBER 31
1995 1994
<S> <C> <C>
Fair value of investments (in thousands):
Investment Contracts Fund $102,880 $98,800
Putnam Voyager Fund 89,247 55,395
Putnam S&P 500 Index Fund 33,768 21,994
Putnam U.S. Government Bond Fund 0 16,452
The George Putnam Fund of Boston 86,070 55,935
Borg-Warner Automotive, Inc. Stock Fund 14,053 9,804
Putnam Income Fund 3,204
Loan Fund 2,971 2,364
Pending Account 422 46
-------- ---------
Total $332,615 $260,790
======== =========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
NET APPRECIATION
IN FAIR VALUE DIVIDEND INTEREST
OF INVESTMENTS INCOME INCOME
-------------- ------- --------
<S> <C> <C> <C>
Investment Income (in thousands):
Investment Contracts Fund $6,829
Putnam Voyager Fund $ 19,172 4,634
Putnam S&P 500 Index Fund 8,460 1
Putnam U.S. Government Bond Fund 1,236 1,191
The George Putnam Fund of Boston 11,609 5,659
Borg-Warner Automotive, Inc. Stock Fund 2,837 558
Putnam Income Fund 60 28
Loan Fund 0 $186
Pending Account 0 12
------- ------- ----
Total $43,374 $18,912 $186
======= ======= ====
</TABLE>
*****
- 12 -
<PAGE> 16
BORG-WARNER AUTOMOTIVE, INC.
RETIREMENT SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(IN THOUSANDS OF DOLLARS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COST
DESCRIPTION (ESTIMATED) MARKET
<S> <C> <C>
INVESTMENT IN MASTER TRUST $ 263,047 $ 264,982
LOANS RECEIVABLE FROM PARTICIPANTS (Bearing interest 2,434 2,434
from 6% to 11% maturing August 1995 through December 1999) ----------- ----------
TOTAL $ 265,481 $ 267,416
=========== ==========
</TABLE>
- 13 -
<PAGE> 17
BORG-WARNER AUTOMOTIVE, INC. RETIREMENT SAVINGS PLAN AS AMENDED AND
RESTATED
Date: June 28, 1996 SIGNATURE TITLE
By:/s/ ROBIN J. ADAMS Retirement Savings Plan Committee
Member
Robin J. Adams
WILLIAM C. CLINE Retirement Savings Plan Committee
Member
William C. Cline
GERALDINE KINSELLA Retirement Savings Plan Committee
Member
Geraldine Kinsella
REGIS J. TRENDA Retirement Savings Plan Committee
Member
Regis J. Trenda
<PAGE> 1
Exhibit 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-75572 on Form S-8 of Borg-Warner Automotive, Inc. of our report dated June
26, 1996, appearing in this annual report on Form 11-K of the Borg-Warner
Automotive, Inc. Retirement Savings Plan ("BWARSP") for the year ended
December 31, 1995.
/s/ DELOITTE & TOUCHE LLP
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DELOITTE & TOUCHE LLP
Chicago, Illinois
June 26, 1996
