Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TMST | ||
Title of 12(b) Security | Common shares | ||
Security Exchange Name | NYSE | ||
Entity Registrant Name | TIMKENSTEEL CORPORATION | ||
Entity Central Index Key | 0001598428 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 43,896,048 | ||
Entity Public Float | $ 839,412,924 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Address, Address Line One | 1835 Dueber Avenue SW | ||
Entity Address, City or Town | Canton | ||
Entity Address, State or Province | OH | ||
City Area Code | 330 | ||
Local Phone Number | 471.7000 | ||
Entity Address, Postal Zip Code | 44706 | ||
Entity Tax Identification Number | 46-4024951 | ||
Entity File Number | 1-36313 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Document Parts Into Which Incorporated Proxy Statement for the 2023 Annual Meeting of Shareholders Part III | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Cleveland, Ohio |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 1,329.9 | $ 1,282.9 | $ 830.7 |
Cost of products sold | 1,203.2 | 1,062.9 | 815.1 |
Gross Profit | 126.7 | 220 | 15.6 |
Selling, general and administrative expenses | 73.8 | 77.2 | 76.7 |
Restructuring charges | 0.8 | 6.7 | 3.1 |
Loss on sale of consolidated subsidiary | 0 | 1.1 | 0 |
Loss (gain) on sale or disposal of assets, net | 1.9 | 1.3 | (2.4) |
Impairment charges | 0 | 10.6 | 0 |
Interest (income) expense, net | 0.6 | 5.9 | 12.2 |
Loss on extinguishment of debt | 43.1 | 0 | 0.9 |
Other (income) expense, net | (90.6) | (59.5) | (14.2) |
Income (loss) from operations before income taxes | 97.1 | 176.7 | (60.7) |
Provision (benefit) for income taxes | 32 | 5.7 | 1.2 |
Net Income (Loss) | $ 65.1 | $ 171 | $ (61.9) |
Per Share Data: | |||
Basic earnings (loss) per share | $ 1.42 | $ 3.73 | $ (1.38) |
Diluted earnings (loss) per share | $ 1.30 | $ 3.18 | $ (1.38) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 65.1 | $ 171 | $ (61.9) |
Other comprehensive income (loss), net of tax of $0.4 million in 2022, none in 2021, and $0.1 million in 2020: | |||
Foreign currency translation adjustments | (1.7) | 0.3 | 1.4 |
Pension and postretirement liability adjustments | (4.3) | (20) | (5.7) |
Other comprehensive income (loss), net of tax | (6) | (19.7) | (4.3) |
Comprehensive Income (Loss), net of tax | $ 59.1 | $ 151.3 | $ (66.2) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income (loss), net of tax | $ 0.4 | $ 0 | $ 0.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 257.2 | $ 259.6 |
Accounts receivable, net of allowances (2022 - $1.0 million; 2021 - $1.9 million) | 79.4 | 100.5 |
Inventories, net | 192.4 | 210.9 |
Deferred charges and prepaid expenses | 6.4 | 3.9 |
Assets held for sale | 0 | 4.3 |
Other current assets | 21.2 | 3.1 |
Total Current Assets | 556.6 | 582.3 |
Property, plant and equipment, net | 486.1 | 510.2 |
Operating lease right-of-use assets | 12.5 | 14.5 |
Pension assets | 19.4 | 43.1 |
Intangible assets, net | 5 | 6.7 |
Other non-current assets | 2.4 | 2.1 |
Total Assets | 1,082 | 1,158.9 |
Current Liabilities | ||
Accounts payable | 113.2 | 141.9 |
Salaries, wages and benefits | 21.2 | 37.9 |
Accrued pension and postretirement costs | 2 | 4.3 |
Current operating lease liabilities | 6 | 5.7 |
Current convertible notes, net | 20.4 | 44.9 |
Other current liabilities | 23.9 | 16.1 |
Total Current Liabilities | 186.7 | 250.8 |
Non-Current Liabilities | ||
Credit Agreement | 0 | 0 |
Non-current operating lease liabilities | 6.5 | 8.8 |
Accrued pension and postretirement costs | 162.9 | 223 |
Deferred income taxes | 25.9 | 2.2 |
Other non-current liabilities | 13.5 | 9.5 |
Total Liabilities | 395.5 | 494.3 |
Shareholders’ Equity | ||
Preferred shares, without par value; authorized 10.0 million shares, none issued | 0 | 0 |
Common shares, without par value; authorized 200.0 million shares; issued 2022 - 47.1 million shares; issued 2021 - 46.3 million shares | 0 | 0 |
Additional paid-in capital | 847 | 832.1 |
Retained deficit | (123.1) | (188.2) |
Treasury shares - 2022 - 3.0 million; 2021 - None | (52.1) | 0 |
Accumulated other comprehensive income (loss) | 14.7 | 20.7 |
Total Shareholders’ Equity | 686.5 | 664.6 |
Total Liabilities and Shareholders’ Equity | $ 1,082 | $ 1,158.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 1 | $ 1.9 |
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Common shares, authorized (in shares) | 200,000,000 | 200,000,000 |
Common shares, issued (in shares) | 47,100,000 | 46,300,000 |
Treasury shares (in shares) | 3,000,000 | 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Retained Deficit | Retained Deficit Cumulative Effect, Period of Adoption, Adjustment | Treasury Shares | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2019 | $ 563.1 | $ 844.8 | $ (301.5) | $ (24.9) | $ 44.7 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 44,820,153 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (61.9) | (61.9) | |||||||
Other comprehensive income (loss) | (4.3) | (4.3) | |||||||
Stock-based compensation expense | 6.6 | 6.6 | |||||||
Issuance of treasury shares | (12.6) | 12.6 | |||||||
Issuance of treasury shares (in shares) | 486,260 | ||||||||
Shares surrendered for taxes | (0.6) | (0.6) | |||||||
Shares surrendered for taxes (in shares) | (142,105) | ||||||||
Equity component of convertible notes, net | 4.6 | 4.6 | |||||||
Ending balance at Dec. 31, 2020 | 507.5 | 843.4 | (363.4) | (12.9) | 40.4 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 45,164,308 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 171 | 171 | |||||||
Other comprehensive income (loss) | (19.7) | (19.7) | |||||||
Stock-based compensation expense | 7.3 | 7.3 | |||||||
Stock-based compensation expense (in shares) | 272,462 | ||||||||
Stock option activity | 4.1 | 4.1 | |||||||
Stock options activity (in shares) | 152,940 | ||||||||
Issuance of treasury shares | (13.4) | 13.4 | |||||||
Issuance of treasury shares (in shares) | 638,093 | ||||||||
Shares surrendered for taxes | (0.5) | (0.5) | |||||||
Shares surrendered for taxes (in shares) | (72,174) | ||||||||
Equity component of convertible notes, net | 1.3 | 1.3 | |||||||
Convertible notes settlement (in shares) | 113,226 | ||||||||
Ending balance at Dec. 31, 2021 | 664.6 | $ (6.4) | 832.1 | $ (10.6) | (188.2) | $ 4.2 | 20.7 | ||
Ending balance (in shares) at Dec. 31, 2021 | 46,268,855 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 65.1 | 65.1 | |||||||
Other comprehensive income (loss) | (6) | (6) | |||||||
Stock-based compensation expense | 8.8 | 8.8 | |||||||
Stock-based compensation expense (in shares) | 342,805 | ||||||||
Stock option activity | $ 8 | 8 | |||||||
Stock options activity (in shares) | 518,770 | 499,040 | |||||||
Purchase of treasury shares | $ (52) | (52) | |||||||
Purchase of treasury shares (in Shares) | (3,026,491) | ||||||||
Issuance of treasury shares | (1.7) | 1.7 | |||||||
Issuance of treasury shares (in shares) | 97,475 | ||||||||
Shares surrendered for taxes | (2) | (0.2) | (1.8) | ||||||
Shares surrendered for taxes (in shares) | (116,793) | ||||||||
Ending balance at Dec. 31, 2022 | $ 686.5 | $ 847 | $ (123.1) | $ (52.1) | $ 14.7 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 44,064,891 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income (loss) | $ 65.1 | $ 171 | $ (61.9) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 58.3 | 63.1 | 70 |
Amortization of deferred financing fees and debt discount | 0.7 | 1 | 5.3 |
Loss on extinguishment of debt | 43.1 | 0 | 0.9 |
Loss on sale of consolidated subsidiary | 0 | 1.1 | 0 |
Loss (gain) on sale or disposal of assets, net | 1.9 | 1.3 | (2.4) |
Impairment charges | 0 | 10.6 | 0 |
Deferred income taxes | 24.9 | 1.2 | 0 |
Stock-based compensation expense | 8.8 | 7.3 | 6.6 |
Pension and postretirement expense (benefit), net | (40.5) | (38.7) | 8.6 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 21.3 | (37.2) | 14.2 |
Inventories, net | 18.8 | (41.6) | 103.5 |
Accounts payable | (33.2) | 53.5 | 23.1 |
Other accrued expenses | (8.8) | 9.7 | 9.4 |
Deferred charges and prepaid expenses | (2.6) | 0.1 | (0.7) |
Pension and postretirement contributions and payments | (5.4) | (6.9) | (4.1) |
Other, net | (17.9) | 1.4 | 1 |
Net Cash Provided (Used) by Operating Activities | 134.5 | 196.9 | 173.5 |
Investing Activities | |||
Capital expenditures | (27.1) | (12.2) | (16.9) |
Proceeds from sale of consolidated subsidiary, net | 0 | 6.2 | 0 |
Proceeds from disposals of property, plant and equipment | 5.4 | 1.2 | 10.9 |
Net Cash Provided (Used) by Investing Activities | (21.7) | (4.8) | (6) |
Financing Activities | |||
Purchase of treasury shares | (52) | 0 | 0 |
Proceeds from exercise of stock options | 8 | 4.1 | 0 |
Shares surrendered for employee taxes on stock compensation | (2) | (0.5) | (0.6) |
Repayments on convertible notes | (67.6) | (38.9) | 0 |
Repayments on credit agreements | 0 | 0 | (90) |
Debt issuance costs | (1) | 0 | (1.2) |
Net Cash Provided (Used) by Financing Activities | (114.6) | (35.3) | (91.8) |
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | (1.8) | 156.8 | 75.7 |
Cash and cash equivalents at beginning of period | 259.6 | 102.8 | 27.1 |
Cash and Cash Equivalents at End of Period | $ 257.8 | $ 259.6 | $ 102.8 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 257.2 | $ 259.6 | $ 102.8 |
Restricted cash reported in other current assets | 0.6 | 0 | 0 |
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows | $ 257.8 | $ 259.6 | $ 102.8 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation TimkenSteel Corporation (the "Company" or "TimkenSteel") manufactures alloy steel, as well as carbon and micro-alloy steel using electric arc furnace ("EAF") technology. TimkenSteel’s portfolio includes special bar quality ("SBQ") bars, seamless mechanical tubing ("tubes"), manufactured components, such as precision steel components, and billets. Additionally, TimkenSteel manages raw material recycling programs, which are used internally as a feeder system for our melt operations and allow us to sell scrap not used in our operations to third parties. The Company’s products and services are used in a diverse range of demanding applications in the following market sectors: automotive; oil and gas; industrial equipment; mining; construction; rail; defense; heavy truck; agriculture; and power generation. The SBQ bar, tube, and billet production processes take place at the Company’s Canton, Ohio manufacturing location. This location accounts for all of the SBQ bars, seamless mechanical tubes and billets the Company produces and includes three manufacturing facilities: the Faircrest, Harrison, and Gambrinus facilities. TimkenSteel’s production of manufactured components takes place at two downstream manufacturing facilities: Tryon Peak (Columbus, North Carolina) and St. Clair (Eaton, Ohio). Many of the production processes are integrated, and the manufacturing facilities produce products that are sold in all of the Company’s market sectors. As a result, investments in the Company’s facilities and resource allocation decisions affecting the Company’s operations are designed to benefit the overall business, not any specific aspect of the business. Prior to indefinitely idling our Harrison melt and casting assets in the first quarter of 2021, we had an annual melt capacity of approximately 2 million tons and shipment capacity of 1.5 million tons. After indefinitely idling these assets, our annual melt capacity is approximately 1.2 million tons and our shipment capacity is approximately 0.9 million tons. In addition to our internal melt capacity, the Company periodically purchases third party melt to supplement customer demand and leverage our downstream operations. Basis of Consolidation: The Consolidated Financial Statements include the consolidated assets, liabilities, revenues and expenses related to TimkenSteel as of December 31, 2022, 2021 and 2020. All significant intercompany accounts and transactions within TimkenSteel have been eliminated in the preparation of the Consolidated Financial Statements. Use of Estimates: The preparation of these Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. These estimates and assumptions are reviewed and updated regularly to reflect recent experience. Presentation: Certain items previously reported in specific financial statement captions have been reclassified to conform with current year presentation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 - Significant Accounting Policies Revenue Recognition: TimkenSteel recognizes revenue from contracts at a point in time when it has satisfied its performance obligation and the customer obtains control of the goods, at the amount that reflects the consideration the Company expects to receive for those goods. Substantially all performance obligations arise from the sale of manufactured steel products. The Company receives and acknowledges purchase orders from its customers, which define the quantity, pricing, payment and other applicable terms and conditions. In some cases, the Company receives a blanket purchase order from its customer, which includes pricing, payment and other terms and conditions, with quantities defined at the time the customer issues periodic releases from the blanket purchase order. Transfer of control and revenue recognition for substantially all the Company’s sales occur upon shipment or delivery of the product, which is when title, ownership, and risk of loss pass to the customer and is based on the applicable customer shipping terms. The Company invoices its customers at the time of title transfer. Payment terms are generally 30 days from the invoice date. Invoiced amounts are usually inclusive of shipping and handling activities incurred. Shipping and handling activities billed are included in net sales in the Consolidated Statements of Operations. The related costs incurred by the Company for the delivery of goods are classified as cost of products sold in the Consolidated Statements of Operations. Certain contracts contain variable consideration, which primarily consists of rebates that are accounted for in net sales and accrued based on the estimated probability of the requirements being met. Sales returns and allowances are treated as a reduction to net sales and are provided for primarily based on historical experience. These reserves also capture any potential warranty claims, which normally result in returned or replaced product. Cash Equivalents and Restricted Cash: TimkenSteel considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company's restricted cash balance represents an imprest cash account used for the funding of employee healthcare costs. Funding of this account began during the first quarter of 2022 when the Company changed its healthcare plan administrator. The balance of restricted cash as of December 31, 2022 was $ 0.6 millio n, which is included in other current assets on the Consolidated Balance Sheets. The Company had no restricted cash as of December 31, 2021. Accounts Receivables, Net: The Company’s accounts receivables arise from sales to customers across the mobile, industrial, energy, and other end-market sectors. The allowance for doubtful account reserve has been established using qualitative and quantitative methods. In general, account balances are fully reserved when greater than one year of age or sent to third party collection. Account balances for customers that are viewed as higher risk are also analyzed for a reserve. In addition to these methods, the allowance for doubtful accounts is adjusted for forward-looking estimates of uncollectible balances based on end-market sector outlook and dynamics. Historically, write-offs for TimkenSteel’s allowance for doubtful accounts have been immaterial. Inventories, Net: Inventories are stated at lower of cost or net realizable value. All inventories, including raw materials, manufacturing supplies inventory, as well as international (outside the U.S.) inventories, have been valued using the FIFO or average cost method. Property, Plant and Equipment, Net: Property, plant and equipment, net are valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings and 3 to 20 years for machinery and equipment. Intangible Assets, Net: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from 3 to 15 years . In accordance with applicable accounting guidance, TimkenSteel capitalizes certain costs incurred for computer software developed or obtained for internal use. TimkenSteel capitalizes substantially all external costs and qualifying internal costs related to the purchase and implementation of software projects used for business operations. Capitalized software costs primarily include purchased software and external consulting fees. Capitalized software projects are amortized over the estimated useful lives of the software. Long-lived Assets: Long-lived assets (including tangible assets and intangible assets subject to amortization) are reviewed for impairment when events or changes in circumstances have occurred indicating that the carrying value of the assets may not be recoverable. TimkenSteel tests recoverability of long-lived assets at the lowest level for which there are identifiable cash flows that are independent from the cash flows of other assets. Assets and asset groups held and used are measured for recoverability by comparing the carrying amount of the asset or asset group to the sum of future undiscounted net cash flows expected to be generated by the asset or asset group. Assumptions and estimates about future values and remaining useful lives of TimkenSteel’s long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends and internal factors such as changes in TimkenSteel’s business strategy and internal forecasts. If an asset or asset group is considered to be impaired, the impairment loss that would be recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. To determine fair value, TimkenSteel uses internal cash flow estimates discounted at an appropriate interest rate, third party appraisals, as appropriate, and/or market prices of similar assets, when available. Refer to “Note 6 - Disposition of Non-Core Assets” and “Note 11 - Property, Plant and Equipment” for additional information. Product Warranties: TimkenSteel accrues liabilities for warranties based upon specific claim incidents in accordance with accounting rules relating to contingent liabilities. Should TimkenSteel become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. TimkenSteel had warranty claims in the amount of $ 0.7 million and $ 1.4 million for the years ended December 31, 2022 and December 31, 2021, respectively. TimkenSteel had no significant warranty claims for the year ended December 31, 2020. Warranty claims are included in cost of products sold on the Consolidated Statements of Operations. Income Taxes: Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. TimkenSteel accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. TimkenSteel recognizes deferred tax assets to the extent TimkenSteel believes these assets are more likely than not to be realized. In making such a determination, TimkenSteel considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If TimkenSteel determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, TimkenSteel would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. TimkenSteel records uncertain tax positions in accordance with applicable accounting guidance, on the basis of a two-step process whereby (1) TimkenSteel determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, TimkenSteel recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. TimkenSteel recognizes interest and penalties related to unrecognized tax benefits within the provision (benefit) for income taxes line in the accompanying Consolidated Statements of Operations, if applicable. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets. Foreign Currency: Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date. Income and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are reflected as a separate component of accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in the Consolidated Statements of Operations. For the year ended December 31, 2022, TimkenSteel realized a foreign currency exchange gain of $ 0.2 million. For the years ended December 31, 2021 and December 31, 2020, TimkenSteel realized a foreign currency exchange loss of $ 0.1 million and $ 0.2 million, respectively. Pension and Other Postretirement Benefits: TimkenSteel recogn izes an overfunded status or underfunded status (e.g., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and other postretirement benefit plans on the Consolidated Balance Sheets. The Company recognizes actuarial gains and losses immediately through net periodic benefit cost in the Consolidated Statements of Operations upon the annual remeasurement at December 31, or on an interim basis as triggering events warrant remeasurement. An example of a potential triggering event would be settlements. The Company’s accounting policy is to recognize settlements during the quarter in which it is projected that the costs of all settlements during the year will be greater than the sum of the service cost and interest cost components of net periodic benefit cost. In addition, the Company uses fair value to account for the value of plan assets. Stock-Based Compensation: TimkenSteel recognizes stock-based compensation expense based on the grant date fair value of the stock-based awards over their required vesting period on a straight-line basis, whether the awards were granted with graded or cliff vesting. Stock options are issued with an exercise price equal to the closing market price of TimkenSteel common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. Performance-based restricted stock units vest based on achievement of a total shareholder return ("TSR") metric. The TSR metric is considered a market condition, which requires TimkenSteel to reflect it in the fair value on grant date using an advanced option-pricing model. The fair value of each performance share was therefore determined using a Monte Carlo valuation model, a generally accepted lattice pricing model. The Monte Carlo valuation model, among other factors, uses commonly-accepted economic theory underlying all valuation models, estimates fair value using simulations of future share prices based on stock price behavior and considers the correlation of peer company returns in determining fair value. The fair value of stock-based awards that will settle in TimkenSteel common shares, other than stock options and performance-based restricted stock units, is based on the closing market price of TimkenSteel common shares on the grant date. TimkenSteel recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the Consolidated Statements of Operations. The excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate. Research and Development: Expenditures for research and development at TimkenSteel amounted to $ 0.8 million, $ 1.7 million and $ 1.8 million for the years ended December 31, 2022, 2021, and 2020, respectively, and were recorde d as a component of selling, general and administrative expenses in the Consolidated Statements of Operations. These expenditures may fluctuate from year to year depending on special projects and the needs of TimkenSteel and its customers. Adoption of New Accounting Standards The Company did not adopt any Accounting Standard Updates (“ASU”) during 2022. Additionally, there are no current ASUs issued, but not adopted, that are expected to have a material impact on the Company. As of January 1, 2021, the Company early adopted ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), using the modified retrospective method of transition. The standard simplifies the accounting for convertible instruments. Upon adoption of ASU 2020-06 as of January 1, 2021, all outstanding Convertible Notes were fully classified as a liability, there was no longer a separate equity component and the Convertible Notes no longer have a debt discount that is amortized. This resulted in a decrease of $ 10.6 million to additional paid-in capital and an increase of $ 1.1 million and $ 5.3 million to current convertible notes, net and non-current convertible notes, net, respectively, on the Consolidated Balance Sheets as of January 1, 2021. Additionally, retained deficit was reduced by $ 4.2 million in the Consolidated Balance Sheets as of January 1, 2021 to remove amortization expense recognized in prior periods. The adoption of this standard did not have an effect on the Company’s cash flows, liquidity, or the methodology used for the earnings per share calculation. Refer to “Note 14 – Financing Arrangements” for additional information on the Convertible Notes. Legislation related to the COVID-19 Pandemic Due to a provisi on in the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Company was able to defer the employer share of Social Security payroll taxes for a specified time during 2020. During the year ended December 31, 2020, the Company deferred $ 6.4 million in cash payments and recorded reserves for such deferred payroll taxes in salaries, wages and benefits on the Consolidated Balance Sheets, to be paid in two equal installments. The first installment in the amount of $ 3.2 million was paid during the fourth quarter of 2021 and the second installment of $ 3.2 million was paid during the fourth quarter of 2022. The CARES Act also provided for an employee retention credit (“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes. The Company qualified for the tax credit in the second and third quarters of 2020 and accrued a benefit of $ 2.3 million in the fourth quarter of 2020 related to the Employee Retention Credit in other (income) expense, net on the Consolidated Statements of Operations. The Company filed for this credit in the second quarter of 2021 and received a portion of the proceeds from the Internal Revenue Service ("IRS") in the amount of $ 0.5 million during the fourth quarter of 2021. The Company received the remaining $ 1.8 million of cash proceeds in the first quarter of 2022. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 3 - Segment Information We conduct our business activities and report financial results as one business segment. The presentation of financial results as one reportable segment is consistent with the way the Company operates its business and is consistent with the manner in which the Chief Operating Decision Maker ("CODM") evaluates performance and makes resource and operating decisions for the business as described above. Furthermore, the Company notes that monitoring financial results as one reportable segment helps the CODM manage costs on a consolidated basis, consistent with the integrated nature of the operations. Geographic Information Net sales by geographic area are reported by the country in which the customer is domiciled. Long-lived assets include property, plant and equipment and intangible assets subject to amortization. Long-lived assets by geographic area are reported by the location of the TimkenSteel operations to which the asset is attributed. Year Ended December 31, 2022 2021 2020 Net Sales: United States $ 1,201.3 $ 1,166.1 $ 746.8 Foreign 128.6 116.8 83.9 $ 1,329.9 $ 1,282.9 $ 830.7 December 31, 2022 2021 Long-lived Assets, net: United States $ 503.0 $ 530.7 Foreign 0.6 0.7 $ 503.6 $ 531.4 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 4 - Revenue Recognition The following table provides the major sources of revenue by end-market sector for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Mobile $ 539.1 $ 527.9 $ 346.0 Industrial 628.7 661.2 391.7 Energy 136.6 62.9 53.2 Other (1) 25.5 30.9 39.8 Total Net Sales $ 1,329.9 $ 1,282.9 $ 830.7 (1) “Other” sales by end-market sector includes the Company’s scrap sales. In addition, 2020 includes oil country tubular goods billet sales. The following table provides the major sources of revenue by product type for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Bar $ 887.4 $ 863.6 $ 502.5 Tube 173.7 164.4 101.4 Manufactured components 243.3 224.0 208.1 Other (2) 25.5 30.9 18.7 Total Net Sales $ 1,329.9 $ 1,282.9 $ 830.7 (2) “Other” for sales by product type relates to the Company’s scrap sales. Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods at a future point in time. Contract liabilities are primarily related to deferred revenue resulting from cash payments received in advance from customers and are included in other current liabilities on the Consolidated Balance Sheets. As of December 31, 2022, contract liabilities totaled $ 3.6 million and were less than $ 0.1 million as of December 31, 2021. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Note 5 - Restructuring Charges Over the past several years, TimkenSteel has made numerous organizational changes to enhance profitable and sustainable growth. These company-wide actions included the restructuring of its business support functions, the reduct ion of management layers throughout the organization and other domestic and international actions to further improve the Company’s overall cost structure. Restructuring charges for the years ended December 31, 2022, 2021, and 2020 totaled $ 0.8 million, $ 6.7 million, and $ 3.1 million, respectively. For the year ended December 31, 2022, restructuring charges were related to severance and employee-related benefits, as a result of continued organizational changes. During 2021, $ 6.4 million of restructuring charges related to severance and employee-related benefits as a result of continued organizational changes. The remaining $ 0.3 million of charges related to the transition of customers to other TimkenSteel manufacturing equipment due to the discontinuation of specific small-diameter seamless mechanical tube manufacturing and the indefinite idling of our Harrison melt and casting activities (refer to “Note 6 – Disposition of Non-Core Assets” for additional information). Restructuring charges for 2020 primarily consisted of severance and employee related benefits. TimkenSteel recorded reserves for such restructuring charges as other current liabilities on the Consolidated Balance Sheets. The reserve balance at December 31, 2022 is expected to be substantially used in the next twelve months. The following is a summary of the restructuring reserve for the twelve months ended December 31, 2022 and 2021: Balance at December 31, 2021 $ 4.7 Expenses 0.8 Payments ( 5.0 ) Balance at December 31, 2022 $ 0.5 Balance at December 31, 2020 $ 1.5 Expenses 6.7 Payments ( 3.5 ) Balance at December 31, 2021 $ 4.7 |
Disposition of Non-Core Assets
Disposition of Non-Core Assets | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Non-Core Assets | Note 6 - Disposition of Non-Core Assets TimkenSteel Material Services Facility During the first quarter of 2020, management completed its previously announced plan to close the Company’s TimkenSteel Material Services (“TMS”) facility in Houston and began selling the assets at the facility. Accelerated depreciation and amortization on TMS assets of $ 2.8 million was recorded in the fourth quarter of 2019, with an additional $ 1.6 million of accelerated depreciation and amortization recorded in the first quarter of 2020, to reduce the net book value of the machinery and equipment to its estimated fair value. Subsequent to the closure, certain assets were sold and a gain on sale of $ 3.6 million was recognized for the year ended December 31, 2020. Inventory write-downs of $ 4.8 million were recorded as of December 31, 2019, which represented the difference between the expected selling price and carrying value of the related inventory. The expected selling price was based upon the Company’s most recently published price lists related to this inventory. While the Company began selling the inventory associated with TMS in the first quarter of 2020 at prices that were in line with the net realizable value of the inventory established in the fourth quarter of 2019, excess inventory related to the energy end-market sector resulted in an additional reserve of approximately $ 3.1 million being recorded in the second quarter of 2020. The excess inventory was the result of continued weakness in this end-market sector, as well as the closures of several distributors that were holding considerable amounts of similar inventory. There was no inventory at December 31, 2021 associated with TMS, as the remaining inventory was sold throughout 2021. Furthermore, inventory r eserves were reversed throughout 2021 as the related TMS inventory was sold or scrapped. During 2021, the remaining associated machinery and equipment that was classified as held for sale was fully impaired as there was no longer an expected market value for these assets. This resulted in impairment charges of $ 0.3 million. A small parcel of land associated with TMS was sold during the fourth quarter of 2021 for $ 0.3 million resulting in a gain on sale of $ 0.1 million. The remaining $ 4.3 million of land and buildings associated with TMS were classified as assets held for sale on the Consolidated Balance Sheets as of December 31, 2021. All of these assets were sold during the third quarter of 2022. Net cash proceeds of $ 2.8 million were received and a loss on sale of assets of $ 1.5 million was recognized on the Consolidated Statements of Operations during 2022. Small-Diameter Seamless Mechanical Tubing Machinery and Equipment In the third quarter of 2020, TimkenSteel informed customers that as of December 31, 2020 the Company would discontinue the commercial offering of specific small-diameter seamless mechanical tubing products. As a result, the Company recognized accelerated depreciation of $ 1.8 million for the year ended December 31, 2020 on the machinery and equipment used in the manufacturing of these specific products. Additional accelerated depreciation of $ 1.5 million was recognized in the first quarter of 2021 in alignment with the ramp down of this machinery and equipment. Spare parts related to this machinery and equipment of $ 0.5 million were also written down in the first quarter of 2021, as management determined there was no alternative use. In the fourth quarter of 2022, TimkenSteel entered into an agreement to sell the machinery and equipment used in the manufacturing of these specific products. Pursuant to this agreement, TimkenSteel received a down payment in the amount of $ 1.7 million, which is included in other current liabilities on the Consolidated Balance Sheets as of December 31, 2022. This down payment was also classified as proceeds from disposals of property, plant, and equipment within the investing section of the Consolidated Statements of Cash Flows for the year ended December 31, 2022. The Company expects to receive an additional $ 1.7 million in the first half of 2023, resulting in a gain of disposal of assets of $ 3.4 million. Harrison Melt and Casting Assets On February 16, 2021, management announced a plan to indefinitely idle its Harrison melt and casting assets, which was completed in the first quarter of 2021. All of the Company’s melt and casting activities now take place at the Faircrest location. The Company worked collaboratively with employees, suppliers and a number of customers to ensure a well-organized and efficient transition. The Company’s rolling and finishing operations at Harrison were not impacted by this action. The Company recognized non-cash charges of $ 9.5 million related to the write-down of the associated Harrison melt and casting assets in the first quarter of 2021. These charges include $ 7.9 million related to the impairment of the associated machinery and equipment, which is classified as impairment charges on the Consolidated Statements of Operations, as well as a write-down of spare parts of $ 1.6 million, which is included in cost of products sold in the Consolidated Statements of Operations, as management determined there was no alternative use. The Company did not incur any cash expenditures related to these charges. TimkenSteel (Shanghai) Corporation Limited On March 31, 2021, the Company entered into an agreement pursuant to which Daido Steel (Shanghai) Co., Ltd. agreed to acquire all of the Company’s ownership interest in TimkenSteel (Shanghai) Corporation Limited in an all-cash transaction. The sale closed on July 30, 2021 and net cash proceeds of $ 6.2 million were received in the third quarter of 2021. As a result of this transaction, a loss on sale of consolidated subsidiary of $ 1.1 million was recognized on the Consolidated Statements of Operations during the third quarter of 2021. TimkenSteel’s consolidated financial statements include activity for TimkenSteel (Shanghai) Corporation Limited through July 30, 2021. Customer Program Early Termination During the fourth quarter of 2021, TimkenSteel received communication from a customer that two specific programs would end earlier than originally forecasted. There was machinery at the St. Clair facility designed for these programs, which had no alternative use. As such, the Company recognized impairment charges of $ 2.4 million for the year ended December 31, 2021. Related supplies inventory of $ 0.2 million was also written down, which is included in cost of products sold in the Consolidated Statements of Operations, as management determined there was no alternative use. Additionally, cash previously received from the customer as reimbursement for capital investment for these early terminated programs was amortized as an expense reduction over the term of the related programs. With the early end to these programs, the remaining amount of capital recovery to be recognized of $ 1.1 million was accelerated and recognized within cost of products sold on the Consolidated Statements of Operations during the fourth quarter of 2021. In the fourth quarter of 2022, TimkenSteel received a customer reimbursement related to the initial capital investment for these early terminated programs in the net amount of $ 4.3 million, which is included in cost of products sold in the Consolidated Statements of Operations. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Note 7 - Other (Income) Expense, net The following table provides the components of other (income) expense, net for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Pension and postretirement non-service benefit (income) loss $ ( 20.3 ) $ ( 37.2 ) $ ( 26.6 ) Loss (gain) from remeasurement of benefit plans ( 35.4 ) ( 20.1 ) 14.7 Foreign currency exchange loss (gain) ( 0.2 ) 0.1 0.2 Insurance recoveries ( 34.5 ) — — Sales and use tax refund — ( 2.5 ) — Employee retention credit — — ( 2.3 ) Miscellaneous (income) expense ( 0.2 ) 0.2 ( 0.2 ) Total other (income) expense, net $ ( 90.6 ) $ ( 59.5 ) $ ( 14.2 ) Non-service related pension and other postretirement benefit income, for all years, consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost. The remeasurement of benefit plans is due to lump sum payments exceeding the sum of the service cost and interest cost components of the net periodic pension cost for certain plans, as well as the partial annuitization of the TimkenSteel Corporation Bargaining Unit Pension Plan ("Bargaining Plan"). The lump sum payments and partial annuitization constitute partial settlements, which are significant events requiring remeasurement of both plan assets and benefit obligations. A net gain of $ 35.4 million from the remeasurement of these benefit plans was recognized for the year ended December 31, 2022. This gain was driven by a $ 359.9 million decrease in the pension liability primarily due to an increase in discount rates and a $ 2.7 million non-cash settlement related to the partial annuitization of the Bargaining Plan. This was partially offset by a loss of $ 327.2 million driven primarily by investment losses on plan assets and lump sum basis losses. A net gain of $ 20.1 million from the remeasurement of these benefit plans was recognized for the year ended December 31, 2021. This gain was driven by a $ 55.7 million decrease in the pension liability primarily due to an increase in discount rates, partially offset by a loss of $ 35.6 million driven primarily by investment losses on plan assets. For more details on the aforementioned remeasurements, refer to “Note 15 - Retirement and Postretirement Plans.” During the second half of 2022, the Faircrest melt shop experienced unplanned operational downtime. During the fourth quarter of 2022, TimkenSteel recognized an insurance recovery of $ 33.0 million related to the unplanned downtime. Of the total recovery, $ 13.0 million was received in the fourth quarter of 2022 and $ 20.0 million was collected in the first quarter of 2023. The Company anticipates an additional insurance recovery, although the timing and amount of potential recovery are uncertain at this time. Additionally, during the third quarter of 2022, TimkenSteel recognized an insurance recovery of $ 1.5 million related to an unplanned outage at our Faircrest facility in November 2021. TimkenSteel recognizes an insurance recovery when it is realized or considered realizable, in accordance with the accounting guidance, and records this activity within other (income) expense, net on the Consolidated Statements of Operations. During the second quarter of 2021, TimkenSteel received a refund from the State of Ohio related to an overpayment of sales and use taxes for the period of October 1, 2016 through September 30, 2019. This resulted in a gain recognized of $ 2.5 million, net of related professional fees, for the year ended December 31, 2021. During the year ended December 31, 2020, the Company recognized a $ 2.3 million benefit related to the Employee Retention Credit in other (income) expense, net. For more details on this credit refer to "Note 2 - Significant Accounting Policies." |
Income Tax Provision
Income Tax Provision | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Note 8 - Income Tax Provision Income (loss) from operations before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below. Years Ended December 31, 2022 2021 2020 United States $ 108.5 $ 171.2 $ ( 64.1 ) Non-United States ( 11.4 ) 5.5 3.4 Income (loss) from operations before income taxes $ 97.1 $ 176.7 $ ( 60.7 ) The provision (benefit) for income taxes consisted of the following: Years Ended December 31, 2022 2021 2020 Current: Federal $ 0.6 $ 0.2 $ 0.6 State and local 5.7 3.7 — Foreign 0.8 0.6 0.5 Total current tax expense (benefit) $ 7.1 $ 4.5 $ 1.1 Deferred: Federal $ 24.2 $ 0.8 $ ( 0.4 ) State and local 0.7 0.3 0.5 Foreign — 0.1 — Total deferred tax expense (benefit) 24.9 1.2 0.1 Provision (benefit) for incomes taxes $ 32.0 $ 5.7 $ 1.2 For the year ended December 31, 2022 , TimkenSteel made $ 0.2 million in foreign tax payments, $ 5.0 million in state and local tax payments, $ 2.0 million U.S. federal payments, and had refundable overpayments of $ 2.2 million related to U.S. federal, state, and local income taxes. For the year ended December 31, 2021, TimkenSteel $ 0.9 million in foreign tax payments, $ 4.6 million in state and local tax payments, no U.S. federal payments, and had no refundable overpayments of state income taxes. The reconciliation between TimkenSteel’s effective tax rate on income (loss) from continuing operations and the statutory tax rate is as follows: Years Ended December 31, 2022 2021 2020 U.S. federal income tax provision (benefit) at statutory rate $ 20.4 $ 37.1 $ ( 12.7 ) Adjustments: State and local income taxes, net of federal tax benefit 8.4 4.1 2.3 Permanent differences 8.9 ( 0.2 ) 1.3 Foreign earnings taxed at different rates ( 3.6 ) ( 0.5 ) 0.1 Valuation allowance ( 2.5 ) ( 34.8 ) 10.3 U.S. research tax credit ( 0.6 ) — — Global intangible low-taxed income — — — Other items, net 1.0 — ( 0.1 ) Provision (benefit) for income taxes $ 32.0 $ 5.7 $ 1.2 Effective tax rate 32.9 % 3.2 % ( 2.0 )% Income tax expense includes U.S. and international income taxes. Except as required under U.S. tax law, U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the U.S. This amount becomes taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The year over year increases in state and local income taxes, net of federal tax benefit is primarily related to limitations on the use of loss carryforwards in certain states. The permanent differences for the year ended December 31, 2022 are due to limitations on the tax deductibility of the loss on extinguishment of debt on the Convertible Senior Notes due 2025. During the second and third quarters of 2021, TimkenSteel (Shanghai) Corporation Limited declared and paid dividends of $ 0.8 million and $ 0.4 million, respectively, net of withholding taxes, to TimkenSteel. During the third quarter of 2020, TimkenSteel (Shanghai) Corporation Limited declared a dividend of $ 5.1 million, net of withholding taxes, to TimkenSteel. As of December 31, 2021 and 2022, there was no deferred tax liability related to undistributed earnings. The Company had recognized a deferred tax liability in the amount of $ 0.3 million at December 31, 2020, for undistributed earnings at its TimkenSteel (Shanghai) Corporation Limited and TimkenSteel de Mexico S. de R.C. de C.V. subsidiaries. The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2022 and 2021 was as follows: Years Ended December 31, 2022 2021 Deferred tax liabilities: Depreciation $ ( 81.4 ) $ ( 89.0 ) Inventory — ( 8.0 ) Leases - right-of-use asset ( 3.1 ) ( 3.5 ) Deferred tax liabilities $ ( 84.5 ) $ ( 100.5 ) Deferred tax assets: Tax loss carryforwards $ 20.5 $ 52.6 Pension and postretirement benefits 35.5 44.3 Other employee benefit accruals 6.6 8.2 Lease liability 3.1 3.5 State decoupling 0.8 1.3 Accrued restructuring 0.1 1.1 Capital loss carryforward 0.8 0.8 Intangible assets 0.2 0.6 Inventory 0.7 0.6 Allowance for doubtful accounts 0.3 0.5 Accrued Legal 2.0 — Capitalized R&D 0.9 — Other, net 0.1 0.3 Deferred tax assets subtotal $ 71.6 $ 113.8 Valuation allowances ( 13.0 ) ( 15.5 ) Deferred tax assets 58.6 98.3 Net deferred tax assets (liabilities) $ ( 25.9 ) $ ( 2.2 ) As of December 31, 2022 and 2021 , the Company had a deferred tax liability of $ 25.9 million and $ 2.2 million, respectively, on the Consolidated Balance Sheets. As of December 31, 2022, TimkenSteel had loss carryforwards in the U.S. and various non-U.S. jurisdictions totaling $ 71.7 million (of which $ 17.2 million relates to the U.S. and $ 54.5 million relates to the UK jurisdiction), having various expiration dates. During 2016, operating losses generated in the U.S. resulted in a decrease in the carrying value of the Company’s U.S. deferred tax liability to the point that would result in a net U.S. deferred tax asset at December 31, 2016. In light of TimkenSteel’s operating performance in the U.S. and current industry conditions, the Company assessed, based upon all available evidence at the time, and concluded that it was more likely than not that it would not realize a portion of its U.S. deferred tax assets. As such, the Company recorded a valuation allowance in 2016. Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize the Company’s deferred tax assets. Due to TimkenSteel’s historical operating performance in the U.S., we have historically been limited in our ability to rely on other subjective evidence such as projections of our future profitability. However, as of December 31, 2022, based on consecutive years of profitability, utilization of the majority of previously generated loss carryforwards in the U.S., and forecasted future profitability, the Company released a portion of its U.S. valuation allowance. The Company maintained a domestic partial valuation allowance on a capital loss carryforward and certain state loss carryforwards that are expected to expire unused. TimkenSteel has provided a valuation allowance on the aforementioned UK loss carryforward. The need to maintain valuation allowances against deferred tax assets in the U.S. and other affected countries may cause variability in the Company’s effective tax rate. The majority of TimkenSteel’s income taxes are derived from federal, domestic state and local taxes. As of December 31, 2022, 2021 and 2020, TimkenSteel had no total gross unrecognized tax benefits, and no amounts which represented unrecognized tax benefits that would favorably impact TimkenSteel’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2022, TimkenSteel does not anticipate a change in its unrecognized tax positions during the next 12 months. TimkenSteel had no accrued interest and penalties related to uncertain tax positions as of December 31, 2022, 2021 and 2020. As of December 31, 2022, the tax years 2019 to the present remain open to examination by the IRS. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 9 - Earnings (Loss) Per Share Basic earnings (loss) per share is computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based upon the weighted average number of common shares outstanding plus the dilutive effect of common share equivalents calculated using the treasury stock method or if-converted method. For the Convertible Notes, the Company utilizes the if-converted method to calculate diluted earnings (loss) per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense (including amortization of debt issuance costs) recognized on the Convertible Notes and includes the number of shares potentially issuable related to the Convertible Notes in the weighted average shares outstanding. Treasury stock, if any, is excluded from the denominator in calculating both basic and diluted earnings (loss) per share. Equity-based Awards Common share equivalents for shares issuable for equity-based awards amounted to 4.0 million shares for the year ended December 31, 2022. For the year ended December 31, 2022, 0.8 million shares were excluded from the computation of diluted earnings (loss) per share, primarily related to options with exercise prices above the average market price of our common shares (i.e., “underwater” options), because the effect of their inclusion would have been anti-dilutive. The difference between the remaining 3.2 million shares and 1.1 million shares assumed purchased with potential proceeds for the year ended December 31, 2022, were included in the denominator of the diluted earnings (loss) per share calculation. Common share equivalents for shares issuable for equity-based awards amounted to 4.8 million shares for the year ended December 31, 2021. For the year ended December 31, 2021, 1.8 million shares were excluded from the computation of diluted earnings (loss) per share, primarily related to options with exercise prices above the average market price of our common shares (i.e., “underwater” options), because the effect of their inclusion would have been anti-dilutive. The difference between the remaining 3.0 million shares and 1.3 million shares assumed purchased with potential proceeds for the year ended December 31, 2021, were included in the denominator of the diluted earnings (loss) per share calculation. Common share equivalents for shares issuable for equity-based awards amounted to 4.6 million shares for the year ended December 31, 2020. All common share equivalents for shares issuable for equity-based awards were excluded from the computation of diluted earnings (loss) per share for the year ended December 31, 2020, because the effect of their inclusion would have been anti-dilutive. Convertible Notes Common share equivalents for shares issuable upon the conversion of outstanding convertible notes of 3.6 million for the year ended December 31, 2022, were included in the computation of diluted earnings (loss) per share, as these shares would be dilutive. During the first half of 2022, TimkenSteel repurchased $ 25.2 million of outstanding principal related to the Convertible Notes. These repurchases of Convertible Notes reduced weighted average diluted shares outstanding by 2.3 million shares for the year ended December 31, 2022. Refer to “Note 14 – Financing Arrangements” for additional information on the Convertible Notes. Common share equivalents for shares issuable upon the conver sion of outstanding convertible notes of 7.4 million for the year ended December 31, 2021, were included in the computation of diluted earnings (loss) per share, as these shares would be dilutive . Common share equivalents for shares issu able upon the conversion of outstanding convertible notes of 9.1 million for the year ended December 31, 2020, were excluded from the computation of diluted earnings (loss) per share because the effect of their inclusion would have been anti-dilutive. The following table sets forth the reconciliation of the numerator and the denomi nator of basic and diluted earnings (loss) per share for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Numerator: Net income (loss), basic $ 65.1 $ 171.0 $ ( 61.9 ) Add convertible notes interest 1.9 4.1 — Net income (loss), diluted $ 67.0 $ 175.1 $ ( 61.9 ) Denominator: Weighted average shares outstanding, basic 45.8 45.9 45.0 Dilutive effect of equity-based awards 2.1 1.7 — Dilutive effect of convertible notes 3.6 7.4 — Weighted average shares outstanding, diluted 51.5 55.0 45.0 Basic earnings (loss) per share $ 1.42 $ 3.73 $ ( 1.38 ) Diluted earnings (loss) per share $ 1.30 $ 3.18 $ ( 1.38 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 10 – Inventories The components of inventories as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Manufacturing supplies $ 36.9 $ 29.3 Raw materials 23.9 37.3 Work in process 94.7 89.3 Finished products 37.4 55.8 Gross inventory 192.9 211.7 Allowance for inventory reserves ( 0.5 ) ( 0.8 ) Total inventories, net $ 192.4 $ 210.9 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 11 - Property, Plant and Equipment The components of property, plant and equipment, net as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Land $ 11.2 $ 11.2 Buildings and improvements 414.6 415.0 Machinery and equipment 1,391.5 1,391.9 Construction in progress 30.8 9.6 Subtotal 1,848.1 1,827.7 Less allowances for depreciation ( 1,362.0 ) ( 1,317.5 ) Property, plant and equipment, net $ 486.1 $ 510.2 Total depreciation expense wa s $ 55.5 m illion, $ 59.8 million, and $ 65.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. Depreciation expense for the years ended December 31, 2021 and 2020 includes $ 1.5 million and $ 2.4 million, respectively, of accelerated depreciation related to the closure of TMS which was announced in the fourth quarter of 2019 and the discontinuation of specific small-diameter seamless mechanical tube manufacturing announced in the third quarter of 2020. For the year ended December 31, 2022, TimkenSteel recorded a loss on sale and disposal of assets of $ 1.9 million primarily related to the sale of the remaining land and buildings at the Company's former TMS facility, as well as the disposition of excess and aged assets. No impairment charges were recognized in 2022. For the year ended December 31, 2021, TimkenSteel recorded a net loss on sale of assets of $ 1.3 million related to the disposition of excess assets. During 2021, the Company also recorded approximately $ 10.6 million of impairment charges related to the indefinite idling of the Harrison melt and casting assets, the impairment of certain assets at our St. Clair facility due to the early termination of a customer program, and the disposition of assets at our former TMS facility. For the year ended December 31, 2020, TimkenSteel recorded a net gain on the sale and disposal of assets of $ 2.6 million, primarily related to the sale of certain TMS assets. No impairment charges were recognized in 2020. Supplemental cash flow information related to non-cash investing activity was as follows: Year Ended December 31, 2022 2021 2019 Accrued property, plant and equipment purchases $ 10.6 $ 3.6 $ 2.0 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 12 - Intangible Assets The components of intangible assets, net as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 6.3 $ 6.2 $ 0.1 $ 6.3 $ 5.8 $ 0.5 Technology use 9.0 9.0 — 9.0 9.0 — Capitalized software 57.9 53.0 4.9 57.4 51.2 6.2 Total intangible assets $ 73.2 $ 68.2 $ 5.0 $ 72.7 $ 66.0 $ 6.7 Intangibl e assets subject to amortization are amortized using a straight-line method over their legal or estimated useful lives. The weighted average useful lives of the customer relationships, technology use and capitalized software intangible assets are 15 years, 15 years and 6 years, respectively. The weighted average useful life of total intangible assets is 8 years as of December 31, 2022. Amortization expense for intangible assets for the years ended December 31, 2022, 2021, and 2020 was $ 2.8 million, $ 3.3 million and $ 5.0 million, respectively. Amortization expense in 2020 associated with capitalized software includes accelerated amortization of $ 1.0 million related to the closure of TMS. See “Note 6 - Disposition of Non-Core Assets” for additional information. D uring the year ended December 31, 2020, TimkenSteel recorded a loss on disposal of intangible assets of $ 0.2 million related to capitalized software. There was no loss on disposal of intangible assets for the years ended December 31, 2022 and December 31, 2021. Based upon the intangible assets subject to amortization as of December 31, 2022, TimkenSteel’s estimated annual amortization for the five succeeding years is shown below (in millions): Year Amortization 2023 $ 2.3 2024 1.3 2025 0.3 2026 0.1 2027 0.1 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 13 - Leases The Company has operating leases primarily related to machinery and equipment, vehicles and information technology equipment. These leases have remaining lease terms of less th an one year to approximately five years , so me of which may include options to extend the lease for one or more years. Certain leases also include options to purchase the leased asset. As of December 31, 2022, the Company has no financing leases. The weighted average remaining lease term for our operating leases as of December 31, 2022 w as 2.5 years. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the balance sheet. Rather, the Company recognizes lease expense for these leases on a straight-line basis over the lease term in accordance with the applicable accounting guidance. For lease agreements entered into after the adoption of lease accounting guidance on January 1, 2019, the Company combines lease and non-lease components. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants. The Company recorded lease cost for the years ended December 31, 2022, 2021 and 2020 as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 6.7 $ 8.2 $ 8.8 Short-term lease cost 0.9 0.7 0.7 Total lease cost $ 7.6 $ 8.9 $ 9.5 When available, the rate implicit in the lease is used to discount lease payments to present value; however, the Company’s leases generally do not provide a readily determinable implicit rate. Therefore, the incremental borrowing rate to discount the lease payments is estimated using market-based information available at lease commencement. The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2022 and 2021 was 3.1 % and 2.7 %, respectively. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 6.7 $ 8.2 $ 8.8 Right-of-use assets obtained in exchange for operating lease obligations $ 4.5 $ 3.1 $ 12.5 Future minimum lease payments under non-cancellable leases as of December 31, 2022 were as follows: 2023 $ 6.3 2024 4.0 2025 1.9 2026 0.5 After 2026 0.3 Total future minimum lease payments 13.0 Less amount of lease payment representing interest ( 0.5 ) Total present value of lease payments $ 12.5 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 14 - Financing Arrangements The following table summarizes the current and non-current debt as of December 31, 2022 and 2021: December 31, 2022 2021 Credit Agreement $ — $ — Convertible Senior Notes due 2021 — — Convertible Senior Notes due 2025 20.4 44.9 Total debt $ 20.4 $ 44.9 Less current portion of debt 20.4 44.9 Total non-current portion of debt $ — $ — Amended Credit Agreement On September 30, 2022, TimkenSteel Corporation (the “Company”), as borrower, and certain domestic subsidiaries of the Company, as subsidiary guarantors (the “Subsidiary Guarantors”), entered into a Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto (collectively, the “Lenders”), which further amends and restates the Company’s existing secured Third Amended and Restated Credit Agreement, dated as of October 15, 2019. The Amended Credit Agreement provides for a $ 400.0 million asset-based revolving credit facility (the “Credit Facility”), including a $ 15.0 million sublimit for the issuance of commercial and standby letters of credit and a $ 40.0 million sublimit for swingline loans. Pursuant to the terms of the Amended Credit Agreement, the Company is entitled, on up to two occasions and subject to the satisfaction of certain conditions, to request increases in the commitments under the Amended Credit Agreement in the aggregate principal amount of up to $ 100.0 million, to the extent that existing or new lenders agree to provide such additional commitments. In addition to and independent of any increase described in the preceding sentence, the Company is entitled, subject to the satisfaction of certain conditions, to request a separate “first-in, last-out” tranche (the “Incremental FILO Tranche”) in an aggregate principal amount of up to $ 30.0 million with a separate borrowing base and interest rate margins, in each case, to be agreed upon among the Company, the Administrative Agent and the Lenders providing the Incremental FILO Tranche. The availability of borrowings under the Credit Facility is subject to a borrowing base calculation based upon a valuation of the eligible accounts receivable, inventory and machinery and equipment of the Company and the Subsidiary Guarantors, each multiplied by an applicable advance rate. The availability of borrowings may be further modified by reserves established from time to time by the Administrative Agent in its permitted discretion. The interest rate per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either (i) the Alternate Base Rate (as defined in the Amended Credit Agreement) plus the applicable margin or (ii) the Adjusted Term SOFR Rate (as defined in the Amended Credit Agreement) plus the applicable margin. The applicable margin will be determined by a pricing grid based on the Company’s average quarterly availability. The Alternate Base Rate is subject to a 1.00 % floor, and the Adjusted Term SOFR Rate is subject to a 0.00 % floor. In addition, the Company will pay a 0.25 % per annum commitment fee on the average daily unused amount of the Credit Facility. The Credit Facility may be used to finance working capital, capital expenditures, certain permitted acquisitions and for other general corporate purposes. All of the indebtedness under the Credit Facility is guaranteed by the Company’s material domestic subsidiaries, as well as any other domestic subsidiary that the Company elects to make a party to the Amended Credit Agreement, and is secured by substantially all of the personal property of the Company and the Subsidiary Guarantors. The Credit Facility matures on September 30, 2027 . Prior to the maturity date, amounts outstanding are required to be repaid (without reduction of the commitments thereunder) from mandatory prepayment events from the proceeds of certain asset sales, equity or debt issuances or casualty events. The Amended Credit Agreement contains certain customary covenants, including covenants that limit the ability of the Company and its subsidiaries to, among other things, (i) incur or suffer to exist certain liens, (ii) make investments, (iii) incur or guaranty additional indebtedness (iv) enter into consolidations, mergers, acquisitions, sale-leaseback transactions and sales of assets, (v) make distributions and other restricted payments, (vi) change the nature of its business, (vii) engage in transactions with affiliates and (viii) enter into restrictive agreements, including agreements that restrict the ability to incur liens or make distributions. In addition, the Amended Credit Agreement requires the Company to maintain a minimum specified fixed charge coverage ratio on a springing basis if minimum availability requirements as specified in the Amended Credit Agreement are not maintained. The Amended Credit Agreement contains certain customary events of default. If any event of default occurs and is continuing, the Lenders would be entitled to take various actions, including the acceleration of amounts due under the Amended Credit Agreement, and exercise other rights and remedies. As of December 31, 2022, the amount available under the Amended Credit Agreement was $ 233.5 million, reflective of the Company’s asset borrowing base with no outstanding borrowings. Additionally, the Company is in compliance with all covenants outlined in the Amended Credit Agreement. Convertible Senior Notes due 2021 In May 2016, the Company issued $ 75.0 million aggregate principal amount of Convertible Senior Notes, and an additional $ 11.3 million principal amount to cover over-allotments ("Convertible Senior Notes due 2021"). The Indenture for the Convertible Senior Notes due 2021 dated May 31, 2016, which was filed with the Securities and Exchange Commission as an exhibit to a Form 8-K filed on May 31, 2016, contained a complete description of the terms of the Convertible Senior Notes due 2021. The key terms were as follows: Maturity Date: June 1, 2021 unless repurchased or converted earlier Interest Rate: 6.0 % cash interest per year Interest Payments Dates: June 1 and December 1 of each year, beginning on December 1, 2016 Initial Conversion Price: $ 12.58 per common share of the Company Initial Conversion Rate: 79.5165 common shares per $ 1,000 principal amount of Notes The net proceeds to the Company from the offering were $ 83.2 million, after deducting the initial underwriters’ discount and fees and the offering expenses payable by the Company. The Company used the net proceeds to repay a portion of the amounts outstanding under its revolving credit agreement. The initial value of the principal amount recorded as a liability at the date of issuance was $ 66.9 million, using an effective interest rate of 12.0 %. The remaining $ 19.4 million of principal amount was allocated to the conversion feature and recorded as a component of shareholders’ equity at the date of issuance. This amount represented a discount to the debt to be amortized through interest expense using the effective interest method through the maturity of the Convertible Senior Notes due 2021. Transaction costs were allocated to the liability and equity components based on their relative values. Transaction costs attributable to the liability component of $ 2.4 million were amortized to interest expense over the term of the Convertible Senior Notes due 2021, and transaction costs attributable to the equity component of $ 0.7 million were included in shareholders’ equity. For more details on the accounting treatment under the adoption of ASU 2020-06, refer to “Note 2 - Significant Accounting Policies.” Convertible Notes Exchange In December 2020, TimkenSteel entered into separate, privately negotiated exchange agreements with a limited number of holders of the Company’s then outstanding Convertible Senior Notes due 2021. Pursuant to the exchange agreements, the Company exchanged $ 46.0 million aggregate principal amount of Convertible Senior Notes due 2021 for $ 46.0 million aggregate principal amount of its new 6.0 % Convertible Senior Notes due 2025 ("Convertible Senior Notes due 2025" and, together with the Convertible Senior Notes due 2021, the "Convertible Notes"). The Company did no t receive any cash proceeds from the issuance of the Convertible Senior Notes due 2025. The Company evaluated this exchange and determined that $ 46.0 million of the Convertible Senior Notes due 2021 were deemed to be extinguished, as the present value of the cash flows under the terms of the Convertible Senior Notes due 2025 were at least 10 percent different from the present value of the remaining cash flows under the terms of the Convertible Senior Notes due 2021, as defined by the relevant accounting standards. Pursuant to applicable accounting guidance, the fair value of the extinguished portion of Convertible Senior Notes due 2021 was calculated using a market rate of 9.0 %, based on comparable debt instruments, and a remaining term of five and a half months. The difference between the fair value and the net carrying amount of the liability component, calculated below, was recognized on the Consolidated Statements of Operations as a loss on extinguishment of debt for the year ended December 31, 2020. Net carrying amount of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 Principal $ 46.0 Less: Debt issuance costs, net of amortization ( 0.1 ) Less: Debt discount, net of amortization ( 1.5 ) Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 45.3 Loss on extinguishment of debt $ ( 0.9 ) The amount allocated to the reacquisition of the equity component, included as a reduction to additional paid-in capital on the Consolidated Balance Sheets, was calculated as follows: Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 $ 45.3 Principal of extinguished Convertible Senior Notes due 2021 46.0 Reduction of additional paid-in capital in 2020 $ ( 0.7 ) The remaining accrued and unpaid interest on the $ 46.0 million of the extinguished Convertible Senior Notes due 2021 was paid in the amount of $ 0.1 million to the holders on December 15, 2020. There was no outstanding principal amount for the Convertible Senior Notes due 2021 as of December 31, 2021, as the notes matured on June 1, 2021 . The Convertible Senior Notes due 2021 were settled with a cash payment of $ 38.9 million and the issuance of shares of 0.1 million, as most noteholders exercised the conversion option prior to the date of maturity. For details regarding method of settlement for noteholders who exercised their conversion option prior to maturity, refer to the Indenture for the Convertible Senior Notes due 2021 filed as an exhibit to a Form 8-K on May 31, 2016. The final cash payment for interest in the amount of $ 1.2 million was also made to noteholders on June 1, 2021. Convertible Senior Notes due 2025 The Convertible Senior Notes due 2025 were issued pursuant to the provisions of the indenture dated May 31, 2016, as supplemented by a supplemental indenture dated December 15, 2020, which was filed with the Securities and Exchange Commission as an exhibit to a Form 8-K on December 15, 2020. The indentures contain a complete description of the terms of the Convertible Senior Notes due 2025. The key terms are as follows: Maturity Date: December 1, 2025 unless repurchased or converted earlier Interest Rate: 6.0 % cash interest per year Interest Payments Dates: June 1 and December 1 of each year, beginning on December 1, 2021 Initial Conversion Price: $ 7.82 per common share of the Company Initial Conversion Rate: 127.8119 common shares per $ 1,000 principal amount of Notes The principal amount of the Convertible Senior Notes due 2025 as of December 31, 2022 is $ 20.8 million. Transaction costs related to the Convertible Senior Notes due 2025 incurred upon issuance were $ 1.5 million. These costs are amortized to interest expense over the term of the notes. The Convertible Senior Notes due 2025 are convertible at the option of the holders in certain circumstances and during certain periods into the Company's common shares, cash, or a combination thereof, at the Company's election. The Indenture for the Convertible Senior Notes due 2025 provides that notes will become convertible during a quarter when the share price for 20 trading days during the final 30 trading days of the immediately preceding quarter was greater than 130 % of the conversi on price. This criterion was met during the fourth quarter of 2022 and as such the notes can be converted at the option of the holders beginning January 1 through March 31, 2023. Whether the notes will be convertible following such period will depend on if this criterion, or another conversion condition, is met in the future. As such, the Convertible Senior Notes due 2025 are classified as a current liability on the Consolidated Balance Sheets as of December 31, 2022. This criterion was also met as of December 31, 2021. To date, no holders have elected to convert their notes during any optional conversion periods. For details regarding all conversion mechanics and methods of settlement, refer to the Indenture for the Convertible Senior Notes due 2025 filed as an exhibit to a Form 8-K on December 15, 2020. The components of the Convertible Senior Notes due 2025 as of December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 2021 Principal $ 20.8 $ 46.0 Less: Debt issuance costs, net of amortization ( 0.4 ) ( 1.1 ) Less: Debt discount, net of amortization — — Convertible Senior Notes due 2025, net $ 20.4 $ 44.9 In the first half of 2022, TimkenSteel repurchased a total of $ 25.2 million aggregate principal amount of its Convertible Senior Notes Due 2025. There were no repurchases related to the Convertible Notes during the second half of 2022. Total cash paid to noteholders was $ 67.6 million. A loss on extinguishment of debt was recognized of $ 43.0 million, including a charge of $ 0.6 million for unamortized debt issuance costs related to the portion of debt extinguished, as well as the related transaction costs. Fair Value Measurement The fair value of the Convertible Senior Notes due 2025 was approximately $ 53.4 million as of December 31, 2022 and $ 107.0 million as of December 31, 2021. The fair value of the Convertible Senior Notes due 20 25, which falls within Level 2 of the fair value hierarchy as defined by applicable accounting guidance, is based on a valuation model primarily using observable market inputs and requires a recurring fair value measurement on a quarterly basis. TimkenSteel’s Credit Facility is variable-rate debt. As such, any outstanding carrying value is a reasonable estimate of fair value as interest rates on these borrowings approximate current market rates. This valuation falls within Level 2 of the fair value hierarchy and is based on quoted prices for similar assets and liabilities in active markets that are observable either directly or indirectly. There were no outstanding borrowings on the Credit Facility as of December 31, 2022 and December 31, 2021. Interest (income) expense, net The following table provides the components of interest (income) expense, net for the years ended December 31, 2022, December 31, 2021 and December 31, 2020: Year Ended December 31, 2022 2021 2020 Interest expense $ 3.9 $ 6.2 $ 12.6 Interest income ( 3.3 ) ( 0.3 ) ( 0.4 ) Interest (income) expense, net $ 0.6 $ 5.9 $ 12.2 Interest income primarily relates to interest earned on cash invested in a money market fund and deposits with financial institutions. As of December 31, 2022, the carrying value of the Company's money market investment was $ 209.5 million, which approximates the fair value. The Company had no cash invested in a money market fund as of December 31, 2021 and December 31, 2020. The money market fund is a cash equivalent and is included in cash and cash equivalents on the Consolidated Balance She ets. The fund consists of highly liquid investments with an average maturity of three months or less and falls within Level 1 of the fair value hierarchy as defined by applicable accounting guidance. The following table sets forth total interest expense recognized specifically related to the Convertible Notes: Year Ended December 31, 2022 2021 2020 Contractual interest expense $ 1.7 $ 3.7 $ 5.2 Amortization of debt issuance costs 0.1 0.4 0.5 Amortization of debt discount — — 4.4 Total $ 1.8 $ 4.1 $ 10.1 The total cash interest paid for the year ended December 31, 2022 , 2021 , and 2020 was $ 3.1 million, $ 5.1 million and $ 7.6 million, respectively. Treasury Shares On December 20, 2021, TimkenSteel announced that its Board of Directors authorized a share repurchase program under which the Company may repurchase up to $ 50.0 million of its outstanding common shares. The share repurchase program is intended to return capital to shareholders while also offsetting dilution from annual equity compensation awards. The share repurchase program does not require the Company to acquire any dollar amount or number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice. On November 2, 2022, the Board of Directors authorized an additional $ 75.0 million share repurchase program. This authorization reflects the continued confidence of the Board and senior leadership in the Company’s ability to generate sustainable through-cycle profitability while maintaining a strong balance sheet and cash flow. For the year ended December 31, 2022, the Company repurchased approximately 3.0 million common shares in the open market at an aggregate cost of $ 52.0 million, which equates to an average repurchase price of $ 17.18 per share. As of December 31, 2022, the Company had a balance of $ 73.0 million remaining under its share repurchase program. The Company did no t repurchase shares during the years ended December 31, 2021 or December 31, 2020. Subsequent to December 31, 2022, the Company repurchased 0.2 million additional common shares in the open market at an aggregate cost of $ 4.5 million, which equates to an average repurchase price of $ 19.19 per share. As of February 24, 2023, the Company has $ 68.5 million remaining under its authorized share repurchase program. |
Retirement and Postretirement P
Retirement and Postretirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement and Postretirement Plans | Note 15 - Retirement and Postretirement Plans Eligible TimkenSteel employees, including certain employees in foreign countries, participate in the following TimkenSteel-sponsored plans: TimkenSteel Corporation Retirement Plan ("Salaried Plan"); TimkenSteel Corporation Bargaining Unit Pension Plan ("Bargaining Plan"), Supplemental Pension Plan of TimkenSteel Corporation ("Supplemental Plan"), TimkenSteel U.K. Pension Scheme ("Pension Scheme"), Mexico Pension Plan, and Postretirement Plans made up of TimkenSteel Corporation Bargaining Unit Welfare Benefit Plan for Retirees and TimkenSteel Corporation Welfare Benefit Plan for Retirees. Bargaining Plan On October 29, 2021, the United Steelworkers ("USW") Local 1123 voted to ratify a new four-year contract (the “Contract”). The Contract is in effect until September 27, 2025 and resulted in several changes to the Bargaining Plan which increased the pension liability by $ 14.2 million in 2021. These plan amendments were recognized in other comprehensive income (loss) in 2021 and will be amortized as part of the pension net periodic benefit cost in future periods. The main change that drove the increase in the pension liability was the addition of a full lump sum form of payment for participants commencing benefits on or after January 1, 2022. In addition, the plan is now closed to new entrants effective January 1, 2022. On July 7, 2022, the Company entered into an agreement with The Prudential Insurance Company of America ("Prudential") to purchase an irrevocable group annuity contract and transfer approximately $ 256.2 million of pension obligations under the Bargaining Plan. In connection with the agreement, Prudential began paying benefits under the group annuity contract as of October 1, 2022 for a specified group of approximately 1,900 participants and beneficiaries who previously received payments from the Bargaining Plan. Benefits payable to these participants and beneficiaries were not reduced as a result of this transaction. Plan participants and beneficiaries not included in the transaction remain in the Bargaining Plan. The Company recorded a non-cash settlement gain of approximately $ 2.7 million in the third quarter of 2022 related to this partial plan annuitization. This settlement is a significant event which also required remeasurement of the Bargaining Plan during the third quarter. The transaction was funded directly by the assets of the Bargaining Plan and required no cash contribution from the Company. The timing and amount of future required pension contributions is significantly affected by asset returns and actuarial assumptions. Plan asset losses in 2022, combined with current actuarial assumptions, have resulted in potentially accelerated timing of future required pension contributions to as early as 2024. Required future pension contribution timing and amounts are subject to significant change based on future investment performance, Company estimates and actuarial assumptions, as well as current funding laws. Salaried Plan During the fourth quarter of 2021, termination of the Salaried Plan was approved by the TimkenSteel Board of Directors. Participants were notified in January 2022 and the plan was terminated effective March 31, 2022 , subject to regulatory approval. The purchase of an irrevocable annuity contract from an insurance company is expected to occur in 2023 , after which time the insurance company selected will be responsible for all participant benefit payments. Supplemental Plan During the fourth quarter of 2019, the Company amended the Supplemental Plan, which provides for the payment of nonqualified supplemental pension benefits to certain salaried participants in the Salaried Plan. The amendment provides for the cessation of benefit accruals under the Supplemental Plan, effective as of December 31, 2020. Effective January 1, 2021, there were no new accruals of benefits, including with respect to service accruals and the final average compensation determination. Certain of the Company’s current and prior named executive officers are participants in the plan. Existing benefits under the plan, as of December 31, 2020, will otherwise continue in accordance with the terms of the plan. Postretirement Plans During the second quarter of 2019, the Company amended the TimkenSteel Corporation Bargaining Unit Welfare Plan for Retirees related to moving Medicare-eligible retirees to an individual plan on a Medicare healthcare exchange. During the fourth quarter of 2019, the Company also amended the TimkenSteel Corporation Welfare Benefit Plan for Retirees, under which certain retired salaried employees of the Company and its subsidiaries are eligible to receive a Company contribution for their medical and prescription drug benefits under the retiree welfare plan. The amendment eliminated the retiree medical subsidy, effective as of December 31, 2019, for all remaining active salaried participants who retire after December 31, 2019 (provided, however, that participants who were laid off on or before March 31, 2020 and who otherwise qualified for the retiree medical subsidy under the terms of the retiree welfare plan remained entitled to receive the retiree medical subsidy). Pension benefits earned are generally based on years of service and compensation during active employment. TimkenSteel’s funding policy is consistent with the funding requirements of applicable laws and regulations. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for the various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. The following table sets forth the change in benefit obligation for the pension and postretirement benefit plans as of December 31, 2022: Pension United States of America United Kingdom Mexico Change in benefit obligation: Bargaining Salaried Supplemental Pension Pension Total Postretirement Benefit obligation at the beginning of year $ 1,025.4 $ 187.4 $ 23.6 $ 82.4 $ 0.4 $ 1,319.2 $ 117.8 Service cost 13.9 0.3 — — — 14.2 1.1 Interest cost 31.1 6.5 0.7 1.3 — 39.6 3.4 Actuarial (gains) losses ( 203.6 ) ( 34.0 ) ( 6.5 ) ( 25.3 ) — ( 269.4 ) ( 24.0 ) Benefits paid ( 51.0 ) ( 11.6 ) ( 0.6 ) ( 2.5 ) — ( 65.7 ) ( 10.9 ) Settlements ( 340.9 ) ( 20.5 ) ( 1.7 ) — — ( 363.1 ) — Foreign currency translation adjustment — — — ( 8.2 ) — ( 8.2 ) — Benefit obligation at the end of year $ 474.9 $ 128.1 $ 15.5 $ 47.7 $ 0.4 $ 666.6 $ 87.4 Significant actuarial gains related to changes in benefit obligations for 2022 primarily resulted from an increase in discount rates. Significant settlements were a result of the Bargaining Plan annuity purchase as well as lump sum payments during 2022. The following table sets forth the change in benefit obligation for the pension and postretirement benefit plans as of December 31, 2021: Pension United States of America United Kingdom Mexico Change in benefit obligation: Bargaining Salaried Supplemental Pension Pension Total Postretirement Benefit obligation at the beginning of year $ 1,053.9 $ 228.7 $ 27.3 $ 84.8 $ 0.4 $ 1,395.1 $ 128.3 Service cost 17.0 0.4 — — — 17.4 1.2 Interest cost 28.4 5.9 0.8 1.1 — 36.2 3.2 Actuarial (gains) losses ( 31.6 ) ( 5.1 ) ( 1.5 ) 0.3 — ( 37.9 ) ( 6.0 ) Benefits paid ( 56.5 ) ( 11.4 ) ( 3.0 ) ( 3.0 ) — ( 73.9 ) ( 8.9 ) Plan amendment 14.2 — — — — 14.2 — Settlements — ( 31.1 ) — — — ( 31.1 ) — Foreign currency translation adjustment — — — ( 0.8 ) — ( 0.8 ) — Benefit obligation at the end of year $ 1,025.4 $ 187.4 $ 23.6 $ 82.4 $ 0.4 $ 1,319.2 $ 117.8 Significant actuarial gains related to changes in benefit obligations for 2021 primarily resulted from an increase in discount rates. The following table sets forth the change in plan assets and funded status for the pension and postretirement benefit plan as of December 31, 2022: Pension United States of America United Kingdom Mexico Change in plan assets: Bargaining Salaried Supplemental Pension Pension Total Postretirement Fair value of plan assets at the beginning of year $ 862.8 $ 205.7 $ — $ 107.2 $ 0.3 $ 1,176.0 $ 76.8 Actual return on plan assets ( 119.7 ) ( 35.9 ) — ( 38.0 ) — ( 193.6 ) ( 8.8 ) Company contributions / payments — — 2.3 1.3 — 3.6 2.1 Benefits paid ( 51.0 ) ( 11.6 ) ( 0.6 ) ( 2.5 ) — ( 65.7 ) ( 10.9 ) Settlements ( 338.2 ) ( 20.5 ) ( 1.7 ) — — ( 360.4 ) — Foreign currency translation adjustment — — — ( 10.5 ) — ( 10.5 ) — Fair value of plan assets at end of year $ 353.9 $ 137.7 $ — $ 57.5 $ 0.3 $ 549.4 $ 59.2 Funded status at end of year $ ( 121.0 ) $ 9.6 $ ( 15.5 ) $ 9.8 $ ( 0.1 ) $ ( 117.2 ) $ ( 28.2 ) The following table sets forth the change in plan assets and funded status for the pension and postretirement benefit plan as of December 31, 2021: Pension United States of America United Kingdom Mexico Change in plan assets: Bargaining Salaried Supplemental Pension Pension Total Postretirement Fair value of plan assets at the beginning of year $ 884.3 $ 243.3 $ — $ 103.8 $ 0.3 $ 1,231.7 $ 82.2 Actual return on plan assets 35.0 4.9 — 4.7 — 44.6 2.4 Company contributions / payments — — 3.0 2.8 — 5.8 1.1 Benefits paid ( 56.5 ) ( 11.4 ) ( 3.0 ) ( 3.0 ) — ( 73.9 ) ( 8.9 ) Settlements — ( 31.1 ) — — — ( 31.1 ) — Foreign currency translation adjustment — — — ( 1.1 ) — ( 1.1 ) — Fair value of plan assets at end of year $ 862.8 $ 205.7 $ — $ 107.2 $ 0.3 $ 1,176.0 $ 76.8 Funded status at end of year $ ( 162.6 ) $ 18.3 $ ( 23.6 ) $ 24.8 $ ( 0.1 ) $ ( 143.2 ) $ ( 41.0 ) The Bargaining Plan, Salaried Plan, and Supplemental Plan have a provision that permits employees to elect to receive their pension benefits in a lump sum upon retirement. The Company's accounting policy is to recognize settlements during the quarter in which it is projected that the costs of all settlements during the year will be greater than the sum of the service cost and intertest cost components. In the first quarter of 2022, the cumulative cost of all lump sum payments exceeded this threshold for the Supplemental Plan. Additionally, in the first quarter of 2022, the cumulative costs of all lump sum payments were projected to exceed this threshold during 2022 for the Salaried Plan. These costs did ultimately exceed this threshold for the Salaried Plan during the second quarter of 2022. Also, during the second quarter of 2022, the cumulative costs of all lump sum payments were projected to exceed this threshold in 2022 for the Bargaining Plan. These costs did ultimately exceed this threshold for the Bargaining Plan during the third quarter of 2022. These payments constitute a partial settlement, which is a significant event requiring remeasurement of both plan assets and benefit obligations. As a result, the Company completed a full remeasurement of its pension obligations and plan assets associated with the Supplemental Plan during the first quarter of 2022. No further remeasurement was required in 2022 related to the Supplemental Plan, as no further lump sum payments have been made. The Salaried Plan's pension obligations and plan assets were remeasured during each quarter of 2022. We also completed a full remeasurement of the Bargaining Plan's pension obligations and plan assets during the second, third, and fourth quarters of 2022. A full remeasurement of the pension obligations and plan assets associated with the Salaried Plan was also required throughout each quarter of 2021. For the years ended December 31, 2022 and December 31, 2021, total settlements were $ 363.1 million and $ 31.1 million, respectively. These settlements are included in the tables above. Lump sum payments are reflected in the net remeasurement losses (gains) as a component of net periodic benefit cost. The annuity purchase for the Bargaining Plan that occurred in 2022 is included in the settlements component of net periodic benefit cost. For the years ended December 31, 2022 and 2021, all pension plans had administrative expenses of $ 5.1 million and $ 3.0 million, respectively. These expenses are included in benefits paid in the tables above. The accumulated benefit obligation at December 31, 2022 exceeded the fair value of plan assets for the Bargaining Plan and the unfunded Supplemental Plan. For the Bargaining Plan and Supplemental Plan, the accumulated benefit obligation was $ 468.9 million and $ 15.7 million, respectively, as of December 31, 2022. The total pension accumulated benefit obligation for all plans was $ 660.6 million and $ 1,303.2 million as of December 31, 2022 and 2021, respectively. Amounts recognized on the balance sheet at December 31, 2022 for TimkenSteel’s pension and postretirement benefit plans include: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Non-current assets $ — $ 9.6 $ — $ 9.8 $ — $ 19.4 $ — Current liabilities — — ( 0.6 ) — — ( 0.6 ) ( 1.4 ) Non-current liabilities ( 121.0 ) — ( 15.0 ) — ( 0.1 ) ( 136.1 ) ( 26.8 ) Total $ ( 121.0 ) $ 9.6 $ ( 15.6 ) $ 9.8 $ ( 0.1 ) $ ( 117.3 ) $ ( 28.2 ) Amounts recognized on the balance sheet at December 31, 2021 for TimkenSteel’s pension and postretirement benefit plans include: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Non-current assets $ — $ 18.3 $ — $ 24.8 $ — $ 43.1 $ — Current liabilities — — ( 2.6 ) — — ( 2.6 ) ( 1.7 ) Non-current liabilities ( 162.6 ) — ( 21.0 ) — ( 0.1 ) ( 183.7 ) ( 39.3 ) Total $ ( 162.6 ) $ 18.3 $ ( 23.6 ) $ 24.8 $ ( 0.1 ) $ ( 143.2 ) $ ( 41.0 ) Included in accumulated other comprehensive income (loss) at December 31, 2022 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Unrecognized prior service (benefit) cost $ 12.4 $ — $ — $ 0.5 $ — $ 12.9 $ ( 49.9 ) Included in accumulated other comprehensive income (loss) at December 31, 2021 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Unrecognized prior service (benefit) cost $ 13.6 $ — $ — $ 0.6 $ — $ 14.2 $ ( 55.9 ) The weighted average assumptions used in determining benefit obligation as of December 31, 2022 and 2021 were as follows: Pension Postretirement Assumptions: 2022 2021 2022 2021 Discount rate 5.61 % 2.96 % 5.70 % 3.00 % Future compensation assumption 3.00 % 3.00 % n/a n/a The weighted average assumptions used in determining benefit cost for the years ended December 31, 2022 and 2021 were as follows: Pension Postretirement Assumptions: 2022 2021 2022 2021 Discount rate 2.96 % 2.68 % 3.00 % 2.65 % Future compensation assumption 3.00 % 2.29 % n/a n/a Expected long-term return on plan assets 5.96 % 5.76 % 4.75 % 4.50 % The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolios. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. For measurement purposes, TimkenSteel assumed a weighted-average annual rate of increase in the per capita cost ("health care cost trend rate") of 10.00 % for 2021. This weighted-average annual rate of increase was not applicable in 2022. The components of net periodic benefit cost (income) for the year ended December 31, 2022 were as follows: Pension United States of America United Kingdom Mexico Components of net periodic benefit cost (income): Bargaining Salaried Supplemental Pension Pension Total Postretirement Service cost $ 13.9 $ 0.3 $ — $ — $ — $ 14.2 $ 1.1 Interest cost 31.1 6.5 0.7 1.3 — 39.6 3.4 Expected return on plan assets ( 46.7 ) ( 5.0 ) — ( 3.2 ) — ( 54.9 ) ( 3.4 ) Amortization of prior service cost 1.3 — — — — 1.3 ( 6.0 ) Settlements ( 2.7 ) — — — — ( 2.7 ) — Net remeasurement losses (gains) ( 37.2 ) 6.9 ( 6.5 ) 15.9 — ( 20.9 ) ( 11.8 ) Net Periodic Benefit Cost (Income) $ ( 40.3 ) $ 8.7 $ ( 5.8 ) $ 14.0 $ — $ ( 23.4 ) $ ( 16.7 ) The components of net periodic benefit cost (income) for the year ended December 31, 2021 were as follows: Pension United States of America United Kingdom Mexico Components of net periodic benefit cost (income): Bargaining Salaried Supplemental Pension Pension Total Postretirement Service cost $ 17.0 $ 0.4 $ — $ — $ — $ 17.4 $ 1.2 Interest cost 28.4 5.9 0.8 1.1 — 36.2 3.2 Expected return on plan assets ( 51.5 ) ( 12.6 ) — ( 3.3 ) — ( 67.4 ) ( 3.4 ) Amortization of prior service cost 0.2 — — — — 0.2 ( 6.0 ) Curtailment — — — — — — — Net remeasurement losses (gains) ( 15.1 ) 2.5 ( 1.5 ) ( 1.1 ) — ( 15.2 ) ( 4.9 ) Net Periodic Benefit Cost (Income) $ ( 21.0 ) $ ( 3.8 ) $ ( 0.7 ) $ ( 3.3 ) $ — $ ( 28.8 ) $ ( 9.9 ) The components of net periodic benefit cost (income) for the year ended December 31, 2020 were as follows: Pension United States of America United Kingdom Mexico Components of net periodic benefit cost (income): Bargaining Salaried Supplemental Pension Pension Total Postretirement Service cost $ 16.9 $ 2.5 $ — $ — $ — $ 19.4 $ 1.0 Interest cost 33.3 7.0 0.9 1.5 — 42.7 4.2 Expected return on plan assets ( 47.5 ) ( 13.5 ) — ( 3.3 ) — ( 64.3 ) ( 3.5 ) Amortization of prior service cost 0.3 — — — — 0.3 ( 6.0 ) Curtailment — — — — — — — Net remeasurement losses (gains) 10.8 ( 1.0 ) 1.8 0.4 0.1 12.1 2.6 Net Periodic Benefit Cost (Income) $ 13.8 $ ( 5.0 ) $ 2.7 $ ( 1.4 ) $ 0.1 $ 10.2 $ ( 1.7 ) TimkenSteel recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, TimkenSteel also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolios is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. The target allocations for each plan's assets are as follows: Pension United States of America United Kingdom Mexico Target Allocations: Bargaining Salaried Supplemental Pension Pension Weighted Postretirement Equity securities 35.0 % — n/a 16.7 % — 24.3 % 20.0 % Debt securities 44.0 % 100.0 % n/a 66.6 % 100.0 % 60.4 % 77.5 % Other investments 21.0 % — n/a 16.7 % — 15.3 % 2.5 % Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date ("exit price"). The inputs used to measure fair value are classified into the following hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 - Unobservable inputs for the asset or liability. The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2022: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 58.4 $ 3.0 $ 55.4 $ — U.S government and agency securities 53.7 49.4 4.3 — Corporate bonds 113.0 — 113.0 — Equity securities 14.5 14.5 — — Real estate 7.6 — — 7.6 Private debt 18.8 — — 18.8 Total Assets in the fair value hierarchy $ 266.0 $ 66.9 $ 172.7 $ 26.4 Assets measured at net asset value (1) 283.4 — — — Total Assets $ 549.4 $ 66.9 $ 172.7 $ 26.4 (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and hedge funds. As of December 31, 2022 , these assets are redeemable at net asset value within 90 days, except for certain private investments with an estimated liquidation period of one to ten years. The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2021: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 87.6 $ 1.2 $ 86.4 $ — U.S government and agency securities 173.9 166.7 7.2 — Corporate bonds 244.7 — 244.7 — Equity securities 25.3 25.3 — — Other 0.3 — 0.3 — Total Assets in the fair value hierarchy $ 531.8 $ 193.2 $ 338.6 $ — Assets measured at net asset value (1) 644.2 — — — Total Assets $ 1,176.0 $ 193.2 $ 338.6 $ — (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and hedge funds. As of December 31, 2021, these assets were redeemable at net asset value within 90 days. The following table sets forth a summary of changes in the fair value of TimkenSteel's pension plan level three assets for the year ended December 31, 2022: Level 3 assets only 2022 Balance at the beginning of year $ — Transfers in and/or out of Level 3 — Actual return on plan assets: Realized gain (loss) 0.4 Net unrealized gain (loss) 0.1 Purchases, sales, issuances and settlements: Purchases 31.4 Sales ( 5.5 ) Balance at the end of year $ 26.4 The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2022: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1.4 $ 1.4 $ — $ — Mutual fund - fixed income 4.7 4.7 — — Total Assets in the fair value hierarchy $ 6.1 $ 6.1 $ — $ — Assets measured at net asset value (1) 53.1 — — — Total Assets $ 59.2 $ 6.1 $ — $ — (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities. As of December 31, 2022 , these assets are redeemable at net asset value within 90 days. The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2021: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3.8 $ 3.8 $ — $ — Mutual fund - fixed income 5.8 5.8 — — Total Assets in the fair value hierarchy $ 9.6 $ 9.6 $ — $ — Assets measured at net asset value (1) 67.2 — — — Total Assets $ 76.8 $ 9.6 $ — $ — (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities, fixed income securities, and limited partnerships. As of December 31, 2021, these assets were redeemable at net asset value within 90 days. Future benefit payments are expected to be as follows: Pension United States of America United Kingdom Mexico Benefit Payments: Bargaining Salaried Supplemental Pension Pension Total Postretirement 2023 $ 36.3 $ 13.3 $ 0.6 $ 2.1 $ — $ 52.3 $ 10.1 2024 36.9 13.3 0.6 2.2 — 53.0 9.1 2025 39.1 12.3 0.5 2.3 — 54.2 8.5 2026 41.8 11.7 0.5 2.2 — 56.2 8.0 2027 46.3 11.3 13.4 2.3 — 73.3 7.7 2028-2032 214.1 49.8 2.1 12.3 0.6 278.9 34.3 The Company expects to make required contributions and payments to its pension and postretirement plans of $ 3.2 million in the next 12 months and $ 224.8 million from 2024 through 2032. Required Company contributions related to the Bargaining Plan are projected to begin in 2024 based on current forecasts. As such, all Bargaining Plan benefit payments noted above are anticipated to be made from plan assets. Defined Contribution Plans The Company recorded expense primarily related to employer matching and non-discretionary contributions to these defined contribution plans of $ 3.3 million in 2022, $ 2.8 million in 2021, and $ 3.2 million in 2020. Effective June 1, 2020, the Company suspended employer matching contributions for all salaried employees. The Company reinstated employer matching contributions effective March 1, 2021. Additionally, the Company discontinued non-discretionary contributions as of January 1, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 16 - Stock-Based Compensation Description of the Plan On May 6, 2020, shareholders of TimkenSteel approved the TimkenSteel Corporation 2020 Equity and Incentive Compensation Plan ("TimkenSteel 2020 Plan"), which replaced the previously approved TimkenSteel Corporation Amended and Restated 2014 Equity and Incentive Compensation Plan ("TimkenSteel 2014 Plan"). The TimkenSteel 2020 Plan authorizes the Compensation Committee to provide cash awards and equity-based compensation in the form of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, performance units, dividend equivalents, and certain other awards for the primary purpose of providing our employees, officers and directors incentives and rewards for service and/or performance. Subject to adjustment as described in the TimkenSteel 2020 Plan, and subject to the TimkenSteel 2020 Plan share counting rules, a total of 2.0 million common shares of the Company are available for awards granted under the TimkenSteel 2020 Plan (plus shares subject to awards granted under the TimkenSteel 2020 Plan or the TimkenSteel 2014 Plan that are canceled or forfeited, expire, are settled for cash, or are unearned to the extent of such cancellation, forfeiture, expiration, cash settlement or unearned amount, as further described in the TimkenSteel 2020 Plan). These shares may be shares of original issuance or treasury shares, or a combination of both. The aggregate number of shares available under the TimkenSteel 2020 Plan will generally be reduced by one common share for every one share subject to an award granted under the TimkenSteel 2020 Plan. The TimkenSteel 2020 Plan also provides that, subject to adjustment as described in the TimkenSteel 2020 Plan: (1) the aggregate number of common shares actually issued or transferred upon the exercise of incentive stock options will not exceed 2.0 million common shares; and (2) no non-employee director of the Company will be granted, in any period of one calendar year, compensation for such service having an aggregate maximum value (measured at the grant date as applicable, and calculating the value of any awards based on the grant date fair value for financial reporting purposes) in excess of $ 0.5 million. On May 5, 2021, shareholders approved the TimkenSteel Corporation Amended and Restated 2020 Equity and Incentive Compensation Plan (the “Amended 2020 Plan”), which amended and restated the TimkenSteel 2020 plan. In general, the Amended 2020 Plan modified the TimkenSteel 2020 Plan to (1) increase the number of common shares, without par value, of the Company available for awards by 2,000,000 shares, (2) correspondingly increase the limit on shares that may be issued or transferred upon the exercise of incentive stock options by 2,000,000 shares, (3) remove the TimkenSteel 2020 Plan’s full value award limit of 1.8 million shares and (4) extend the plan term until May 5, 2031 . In addition, the Amended 2020 Plan made certain other conforming, clarifying or non-substantive changes to the terms of the TimkenSteel 2020 Plan to implement the Amended 2020 Plan but did not make other material changes to the TimkenSteel 2020 Plan. As of December 31, 2022 , approximately 4.1 million shares of TimkenSteel common stock remained available for grants under the Amended 2020 Plan. Stock Options There were no stock options granted during the years ended December 31, 2022 and December 31, 2021. The following summarizes TimkenSteel stock option activity from January 1, 2022 to December 31, 2022: Number of Weighted Weighted Aggregate Outstanding as of December 31, 2021 2,054,088 $ 20.41 Granted — — Exercised ( 518,770 ) 15.36 Canceled, forfeited or expired ( 415,795 ) 30.86 Outstanding as of December 31, 2022 1,119,523 $ 18.85 3.9 $ 5.8 Options expected to vest 167,610 6.44 7.0 2.0 Options exercisable 951,913 $ 21.04 3.3 $ 3.8 Stock options presented in the table above represent TimkenSteel awards only, including those held by The Timken Company employees. Time-Based Restricted Stock Units Time-based restricted stock units are issued with the fair value equal to the closing market price of TimkenSteel common shares on the date of grant. These restricted stock units do not have any performance conditions for vesting. Expense is recognized over the service period, adjusted for any forfeitures that occur during the vesting period. The following summarizes TimkenSteel stock-settled, time-based restricted stock unit activity from January 1, 2022 to December 31, 2022: Number of Weighted Outstanding as of December 31, 2021 1,668,050 $ 7.92 Granted 355,813 18.07 Vested ( 420,083 ) 11.41 Canceled, forfeited or expired ( 57,778 ) 8.35 Outstanding as of December 31, 2022 1,546,002 $ 9.29 Performance-Based Restricted Stock Units Performance-based restricted stock units are earned based on the average payout (determ ined under a Compensation Committee approved matrix) for the Company’s relative total shareholder return as compared to an identified peer group of steel companies. The overall vesting period is generally three years, with relative total shareholder return measured for the one, two and three-year periods creating effectively a “nested” 1-year, 2-year, and 3-year plan to support rapid and sustained shareholder value creation. Relative total shareholder return is calculated for each nested performance period by taking the beginning and ending price points based off a 20 -trading day average closing stock price as of December 31. The following summarizes TimkenSteel stock-settled performance-based restricted stock unit activity from January 1, 2022 to December 31, 2022: Number of Weighted Outstanding as of December 31, 2021 794,044 $ 6.91 Granted 178,467 25.04 Canceled, forfeited or expired ( 4,096 ) 15.64 Outstanding as of December 31, 2022 968,415 $ 10.21 Other Information TimkenSteel recognized stock-based compensation expense of $ 8.8 million, $ 7.3 million and $ 6.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 , future stock-based compensation expense related to the unvested portion of all awards is approximately $ 11.4 million, which is expected to be recognized over a weighted average period of 1.7 year s. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17 - Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021 by component were as follows: Foreign Currency Pension and Total Balance as of December 31, 2021 $ ( 5.1 ) $ 25.8 $ 20.7 Other comprehensive income before reclassifications, before income tax ( 1.7 ) — ( 1.7 ) Amounts reclassified from accumulated other comprehensive income — ( 4.7 ) ( 4.7 ) Amounts deferred to accumulated other comprehensive income — — — Tax effect — 0.4 0.4 Net current period other comprehensive income (loss), net of income taxes ( 1.7 ) ( 4.3 ) ( 6.0 ) Balance as of December 31, 2022 $ ( 6.8 ) $ 21.5 $ 14.7 Foreign Currency Pension and Total Balance as of December 31, 2020 $ ( 5.4 ) $ 45.8 $ 40.4 Other comprehensive income before reclassifications, before income tax 0.3 — 0.3 Amounts reclassified from accumulated other comprehensive income — ( 5.8 ) ( 5.8 ) Amounts deferred to accumulated other comprehensive income — ( 14.2 ) ( 14.2 ) Tax effect — — — Net current period other comprehensive income (loss), net of income taxes 0.3 ( 20.0 ) ( 19.7 ) Balance as of December 31, 2021 $ ( 5.1 ) $ 25.8 $ 20.7 The amount reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2021 and December 31, 2020 for the pension and postretirement liability adjustment was included in other (income) expense, net in the Consolidated Statements of Operations. The amount deferred to accumulated other comprehensive income (loss) for the year ended December 31, 2021 was a result of a plan amendment to the Company's Bargaining Plan. For more details refer to "Note 15 - Retirement and Postretirement Plans." |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Loss Contingency Accrual, Disclosures [Abstract] | |
Contingencies | Note 18 – Contingencies TimkenSteel has a number of loss exposures incurred in the ordinary course of business, such as environmental claims, product warranty claims, employee-related matters, and other litigation. Establishing loss reserves for these matters requires management’s estimate and judgment regarding risk exposure and ultimate liability or realization. These loss reserves are reviewed periodically and adjustments are made to reflect the most recent facts and circumstances. Accruals related to environmental claims represent management’s best estimate of the fees and costs associated with these claims. Although it is not possible to predict with certainty the outcome of such claims, management believes that their ultimate dispositions should not have a material adverse effect on our financial position, cash flows or results of operations. As of December 31, 2022 and 2021, TimkenSteel had a $ 1.1 million and $ 0.3 million contingency reserve, respectively, related to loss exposures incurred in the ordinary course of business. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II-Valuation and Qualifying Accounts Allowance for uncollectible accounts: 2022 2021 2020 Balance at Beginning of Period $ 1.9 $ 1.3 $ 1.5 Additions: Charged to Costs and Expenses (1) — 0.6 — Deductions (2) ( 0.9 ) — ( 0.2 ) Balance at End of Period $ 1.0 $ 1.9 $ 1.3 Allowance for inventory reserves: 2022 2021 2020 Balance at Beginning of Period $ 0.8 $ 13.9 $ 10.7 Additions: Charged to Costs and Expenses (3) 0.5 2.8 4.1 Deductions (4) ( 0.8 ) ( 15.9 ) ( 0.9 ) Balance at End of Period $ 0.5 $ 0.8 $ 13.9 Valuation allowance on deferred tax assets: 2022 2021 2020 Balance at Beginning of Period $ 15.5 $ 47.7 $ 34.9 Additions: Charged to Costs and Expenses (5) — — 12.4 Charged to Other Accounts (6) — 4.8 1.4 Deductions (7) ( 2.5 ) ( 37.0 ) ( 1.0 ) Balance at End of Period $ 13.0 $ 15.5 $ 47.7 Provision for uncollectible accounts included in expenses. Actual accounts written off against the allowance, net of recoveries. Provisions for surplus and obsolete inventory and lower cost or net realizable value included in expenses. Inventory items released against the allowance, either via write-off or a recovery. The allowance for inventory reserves decreased in 2021 due to sales of TMS inventory, along with the selling and scrapping of aged inventory. (5) Increase in valuation allowance is recorded as a component of the provision for income taxes. (6) Amount relates to valuation allowances recorded against other comprehensive income (loss). (7) For the year ended December 31, 2022, this amount related to the release of a portion of the U.S. valuation allowance. For the year ended December 31, 2021, this amount relates to the release of the valuation allowance against tax loss carryforwards used during 2021. For the year ended December 31, 2020, this amount relates to an additional paid-in capital adjustment associated with the Convertible Notes. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition: TimkenSteel recognizes revenue from contracts at a point in time when it has satisfied its performance obligation and the customer obtains control of the goods, at the amount that reflects the consideration the Company expects to receive for those goods. Substantially all performance obligations arise from the sale of manufactured steel products. The Company receives and acknowledges purchase orders from its customers, which define the quantity, pricing, payment and other applicable terms and conditions. In some cases, the Company receives a blanket purchase order from its customer, which includes pricing, payment and other terms and conditions, with quantities defined at the time the customer issues periodic releases from the blanket purchase order. Transfer of control and revenue recognition for substantially all the Company’s sales occur upon shipment or delivery of the product, which is when title, ownership, and risk of loss pass to the customer and is based on the applicable customer shipping terms. The Company invoices its customers at the time of title transfer. Payment terms are generally 30 days from the invoice date. Invoiced amounts are usually inclusive of shipping and handling activities incurred. Shipping and handling activities billed are included in net sales in the Consolidated Statements of Operations. The related costs incurred by the Company for the delivery of goods are classified as cost of products sold in the Consolidated Statements of Operations. Certain contracts contain variable consideration, which primarily consists of rebates that are accounted for in net sales and accrued based on the estimated probability of the requirements being met. Sales returns and allowances are treated as a reduction to net sales and are provided for primarily based on historical experience. These reserves also capture any potential warranty claims, which normally result in returned or replaced product. |
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash: TimkenSteel considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company's restricted cash balance represents an imprest cash account used for the funding of employee healthcare costs. Funding of this account began during the first quarter of 2022 when the Company changed its healthcare plan administrator. The balance of restricted cash as of December 31, 2022 was $ 0.6 millio n, which is included in other current assets on the Consolidated Balance Sheets. The Company had no restricted cash as of December 31, 2021. |
Accounts Receivables, Net | Accounts Receivables, Net: The Company’s accounts receivables arise from sales to customers across the mobile, industrial, energy, and other end-market sectors. The allowance for doubtful account reserve has been established using qualitative and quantitative methods. In general, account balances are fully reserved when greater than one year of age or sent to third party collection. Account balances for customers that are viewed as higher risk are also analyzed for a reserve. In addition to these methods, the allowance for doubtful accounts is adjusted for forward-looking estimates of uncollectible balances based on end-market sector outlook and dynamics. Historically, write-offs for TimkenSteel’s allowance for doubtful accounts have been immaterial. |
Inventories, Net | Inventories, Net: Inventories are stated at lower of cost or net realizable value. All inventories, including raw materials, manufacturing supplies inventory, as well as international (outside the U.S.) inventories, have been valued using the FIFO or average cost method. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net: Property, plant and equipment, net are valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings and 3 to 20 years for machinery and equipment. |
Intangible Assets, Net | Intangible Assets, Net: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from 3 to 15 years . In accordance with applicable accounting guidance, TimkenSteel capitalizes certain costs incurred for computer software developed or obtained for internal use. TimkenSteel capitalizes substantially all external costs and qualifying internal costs related to the purchase and implementation of software projects used for business operations. Capitalized software costs primarily include purchased software and external consulting fees. Capitalized software projects are amortized over the estimated useful lives of the software. |
Long-lived Assets | Long-lived Assets: Long-lived assets (including tangible assets and intangible assets subject to amortization) are reviewed for impairment when events or changes in circumstances have occurred indicating that the carrying value of the assets may not be recoverable. TimkenSteel tests recoverability of long-lived assets at the lowest level for which there are identifiable cash flows that are independent from the cash flows of other assets. Assets and asset groups held and used are measured for recoverability by comparing the carrying amount of the asset or asset group to the sum of future undiscounted net cash flows expected to be generated by the asset or asset group. Assumptions and estimates about future values and remaining useful lives of TimkenSteel’s long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends and internal factors such as changes in TimkenSteel’s business strategy and internal forecasts. If an asset or asset group is considered to be impaired, the impairment loss that would be recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. To determine fair value, TimkenSteel uses internal cash flow estimates discounted at an appropriate interest rate, third party appraisals, as appropriate, and/or market prices of similar assets, when available. Refer to “Note 6 - Disposition of Non-Core Assets” and “Note 11 - Property, Plant and Equipment” for additional information. |
Product Warranties | Product Warranties: TimkenSteel accrues liabilities for warranties based upon specific claim incidents in accordance with accounting rules relating to contingent liabilities. Should TimkenSteel become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. TimkenSteel had warranty claims in the amount of $ 0.7 million and $ 1.4 million for the years ended December 31, 2022 and December 31, 2021, respectively. TimkenSteel had no significant warranty claims for the year ended December 31, 2020. Warranty claims are included in cost of products sold on the Consolidated Statements of Operations. |
Income Taxes | Income Taxes: Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. TimkenSteel accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. TimkenSteel recognizes deferred tax assets to the extent TimkenSteel believes these assets are more likely than not to be realized. In making such a determination, TimkenSteel considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If TimkenSteel determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, TimkenSteel would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. TimkenSteel records uncertain tax positions in accordance with applicable accounting guidance, on the basis of a two-step process whereby (1) TimkenSteel determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, TimkenSteel recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. TimkenSteel recognizes interest and penalties related to unrecognized tax benefits within the provision (benefit) for income taxes line in the accompanying Consolidated Statements of Operations, if applicable. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets. |
Foreign Currency | Foreign Currency: Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date. Income and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are reflected as a separate component of accumulated other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in the Consolidated Statements of Operations. For the year ended December 31, 2022, TimkenSteel realized a foreign currency exchange gain of $ 0.2 million. For the years ended December 31, 2021 and December 31, 2020, TimkenSteel realized a foreign currency exchange loss of $ 0.1 million and $ 0.2 million, respectively. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits: TimkenSteel recogn izes an overfunded status or underfunded status (e.g., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and other postretirement benefit plans on the Consolidated Balance Sheets. The Company recognizes actuarial gains and losses immediately through net periodic benefit cost in the Consolidated Statements of Operations upon the annual remeasurement at December 31, or on an interim basis as triggering events warrant remeasurement. An example of a potential triggering event would be settlements. The Company’s accounting policy is to recognize settlements during the quarter in which it is projected that the costs of all settlements during the year will be greater than the sum of the service cost and interest cost components of net periodic benefit cost. In addition, the Company uses fair value to account for the value of plan assets. |
Stock-Based Compensation | Stock-Based Compensation: TimkenSteel recognizes stock-based compensation expense based on the grant date fair value of the stock-based awards over their required vesting period on a straight-line basis, whether the awards were granted with graded or cliff vesting. Stock options are issued with an exercise price equal to the closing market price of TimkenSteel common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. Performance-based restricted stock units vest based on achievement of a total shareholder return ("TSR") metric. The TSR metric is considered a market condition, which requires TimkenSteel to reflect it in the fair value on grant date using an advanced option-pricing model. The fair value of each performance share was therefore determined using a Monte Carlo valuation model, a generally accepted lattice pricing model. The Monte Carlo valuation model, among other factors, uses commonly-accepted economic theory underlying all valuation models, estimates fair value using simulations of future share prices based on stock price behavior and considers the correlation of peer company returns in determining fair value. The fair value of stock-based awards that will settle in TimkenSteel common shares, other than stock options and performance-based restricted stock units, is based on the closing market price of TimkenSteel common shares on the grant date. TimkenSteel recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the Consolidated Statements of Operations. The excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate. |
Research and Development | Research and Development: Expenditures for research and development at TimkenSteel amounted to $ 0.8 million, $ 1.7 million and $ 1.8 million for the years ended December 31, 2022, 2021, and 2020, respectively, and were recorde d as a component of selling, general and administrative expenses in the Consolidated Statements of Operations. These expenditures may fluctuate from year to year depending on special projects and the needs of TimkenSteel and its customers. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards The Company did not adopt any Accounting Standard Updates (“ASU”) during 2022. Additionally, there are no current ASUs issued, but not adopted, that are expected to have a material impact on the Company. As of January 1, 2021, the Company early adopted ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), using the modified retrospective method of transition. The standard simplifies the accounting for convertible instruments. Upon adoption of ASU 2020-06 as of January 1, 2021, all outstanding Convertible Notes were fully classified as a liability, there was no longer a separate equity component and the Convertible Notes no longer have a debt discount that is amortized. This resulted in a decrease of $ 10.6 million to additional paid-in capital and an increase of $ 1.1 million and $ 5.3 million to current convertible notes, net and non-current convertible notes, net, respectively, on the Consolidated Balance Sheets as of January 1, 2021. Additionally, retained deficit was reduced by $ 4.2 million in the Consolidated Balance Sheets as of January 1, 2021 to remove amortization expense recognized in prior periods. The adoption of this standard did not have an effect on the Company’s cash flows, liquidity, or the methodology used for the earnings per share calculation. Refer to “Note 14 – Financing Arrangements” for additional information on the Convertible Notes. Legislation related to the COVID-19 Pandemic Due to a provisi on in the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Company was able to defer the employer share of Social Security payroll taxes for a specified time during 2020. During the year ended December 31, 2020, the Company deferred $ 6.4 million in cash payments and recorded reserves for such deferred payroll taxes in salaries, wages and benefits on the Consolidated Balance Sheets, to be paid in two equal installments. The first installment in the amount of $ 3.2 million was paid during the fourth quarter of 2021 and the second installment of $ 3.2 million was paid during the fourth quarter of 2022. The CARES Act also provided for an employee retention credit (“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes. The Company qualified for the tax credit in the second and third quarters of 2020 and accrued a benefit of $ 2.3 million in the fourth quarter of 2020 related to the Employee Retention Credit in other (income) expense, net on the Consolidated Statements of Operations. The Company filed for this credit in the second quarter of 2021 and received a portion of the proceeds from the Internal Revenue Service ("IRS") in the amount of $ 0.5 million during the fourth quarter of 2021. The Company received the remaining $ 1.8 million of cash proceeds in the first quarter of 2022. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | Net sales by geographic area are reported by the country in which the customer is domiciled. Year Ended December 31, 2022 2021 2020 Net Sales: United States $ 1,201.3 $ 1,166.1 $ 746.8 Foreign 128.6 116.8 83.9 $ 1,329.9 $ 1,282.9 $ 830.7 |
Long-lived Assets by Geographic Areas | Long-lived assets include property, plant and equipment and intangible assets subject to amortization. Long-lived assets by geographic area are reported by the location of the TimkenSteel operations to which the asset is attributed. December 31, 2022 2021 Long-lived Assets, net: United States $ 503.0 $ 530.7 Foreign 0.6 0.7 $ 503.6 $ 531.4 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides the major sources of revenue by end-market sector for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Mobile $ 539.1 $ 527.9 $ 346.0 Industrial 628.7 661.2 391.7 Energy 136.6 62.9 53.2 Other (1) 25.5 30.9 39.8 Total Net Sales $ 1,329.9 $ 1,282.9 $ 830.7 (1) “Other” sales by end-market sector includes the Company’s scrap sales. In addition, 2020 includes oil country tubular goods billet sales. The following table provides the major sources of revenue by product type for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Bar $ 887.4 $ 863.6 $ 502.5 Tube 173.7 164.4 101.4 Manufactured components 243.3 224.0 208.1 Other (2) 25.5 30.9 18.7 Total Net Sales $ 1,329.9 $ 1,282.9 $ 830.7 (2) “Other” for sales by product type relates to the Company’s scrap sales. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following is a summary of the restructuring reserve for the twelve months ended December 31, 2022 and 2021: Balance at December 31, 2021 $ 4.7 Expenses 0.8 Payments ( 5.0 ) Balance at December 31, 2022 $ 0.5 Balance at December 31, 2020 $ 1.5 Expenses 6.7 Payments ( 3.5 ) Balance at December 31, 2021 $ 4.7 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense, Net | The following table provides the components of other (income) expense, net for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Pension and postretirement non-service benefit (income) loss $ ( 20.3 ) $ ( 37.2 ) $ ( 26.6 ) Loss (gain) from remeasurement of benefit plans ( 35.4 ) ( 20.1 ) 14.7 Foreign currency exchange loss (gain) ( 0.2 ) 0.1 0.2 Insurance recoveries ( 34.5 ) — — Sales and use tax refund — ( 2.5 ) — Employee retention credit — — ( 2.3 ) Miscellaneous (income) expense ( 0.2 ) 0.2 ( 0.2 ) Total other (income) expense, net $ ( 90.6 ) $ ( 59.5 ) $ ( 14.2 ) |
Income Tax Provision (Tables)
Income Tax Provision (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) from operations before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below. Years Ended December 31, 2022 2021 2020 United States $ 108.5 $ 171.2 $ ( 64.1 ) Non-United States ( 11.4 ) 5.5 3.4 Income (loss) from operations before income taxes $ 97.1 $ 176.7 $ ( 60.7 ) |
Schedule of (Benefit) Provision for Income Taxes | The provision (benefit) for income taxes consisted of the following: Years Ended December 31, 2022 2021 2020 Current: Federal $ 0.6 $ 0.2 $ 0.6 State and local 5.7 3.7 — Foreign 0.8 0.6 0.5 Total current tax expense (benefit) $ 7.1 $ 4.5 $ 1.1 Deferred: Federal $ 24.2 $ 0.8 $ ( 0.4 ) State and local 0.7 0.3 0.5 Foreign — 0.1 — Total deferred tax expense (benefit) 24.9 1.2 0.1 Provision (benefit) for incomes taxes $ 32.0 $ 5.7 $ 1.2 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between TimkenSteel’s effective tax rate on income (loss) from continuing operations and the statutory tax rate is as follows: Years Ended December 31, 2022 2021 2020 U.S. federal income tax provision (benefit) at statutory rate $ 20.4 $ 37.1 $ ( 12.7 ) Adjustments: State and local income taxes, net of federal tax benefit 8.4 4.1 2.3 Permanent differences 8.9 ( 0.2 ) 1.3 Foreign earnings taxed at different rates ( 3.6 ) ( 0.5 ) 0.1 Valuation allowance ( 2.5 ) ( 34.8 ) 10.3 U.S. research tax credit ( 0.6 ) — — Global intangible low-taxed income — — — Other items, net 1.0 — ( 0.1 ) Provision (benefit) for income taxes $ 32.0 $ 5.7 $ 1.2 Effective tax rate 32.9 % 3.2 % ( 2.0 )% |
Schedule of Deferred Tax Assets and Liabilities | The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2022 and 2021 was as follows: Years Ended December 31, 2022 2021 Deferred tax liabilities: Depreciation $ ( 81.4 ) $ ( 89.0 ) Inventory — ( 8.0 ) Leases - right-of-use asset ( 3.1 ) ( 3.5 ) Deferred tax liabilities $ ( 84.5 ) $ ( 100.5 ) Deferred tax assets: Tax loss carryforwards $ 20.5 $ 52.6 Pension and postretirement benefits 35.5 44.3 Other employee benefit accruals 6.6 8.2 Lease liability 3.1 3.5 State decoupling 0.8 1.3 Accrued restructuring 0.1 1.1 Capital loss carryforward 0.8 0.8 Intangible assets 0.2 0.6 Inventory 0.7 0.6 Allowance for doubtful accounts 0.3 0.5 Accrued Legal 2.0 — Capitalized R&D 0.9 — Other, net 0.1 0.3 Deferred tax assets subtotal $ 71.6 $ 113.8 Valuation allowances ( 13.0 ) ( 15.5 ) Deferred tax assets 58.6 98.3 Net deferred tax assets (liabilities) $ ( 25.9 ) $ ( 2.2 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation of the numerator and the denomi nator of basic and diluted earnings (loss) per share for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Numerator: Net income (loss), basic $ 65.1 $ 171.0 $ ( 61.9 ) Add convertible notes interest 1.9 4.1 — Net income (loss), diluted $ 67.0 $ 175.1 $ ( 61.9 ) Denominator: Weighted average shares outstanding, basic 45.8 45.9 45.0 Dilutive effect of equity-based awards 2.1 1.7 — Dilutive effect of convertible notes 3.6 7.4 — Weighted average shares outstanding, diluted 51.5 55.0 45.0 Basic earnings (loss) per share $ 1.42 $ 3.73 $ ( 1.38 ) Diluted earnings (loss) per share $ 1.30 $ 3.18 $ ( 1.38 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | The components of inventories as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Manufacturing supplies $ 36.9 $ 29.3 Raw materials 23.9 37.3 Work in process 94.7 89.3 Finished products 37.4 55.8 Gross inventory 192.9 211.7 Allowance for inventory reserves ( 0.5 ) ( 0.8 ) Total inventories, net $ 192.4 $ 210.9 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The components of property, plant and equipment, net as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 Land $ 11.2 $ 11.2 Buildings and improvements 414.6 415.0 Machinery and equipment 1,391.5 1,391.9 Construction in progress 30.8 9.6 Subtotal 1,848.1 1,827.7 Less allowances for depreciation ( 1,362.0 ) ( 1,317.5 ) Property, plant and equipment, net $ 486.1 $ 510.2 |
Schedule of Supplemental Cash Flow Information Related to Non-Cash Investing Activity | Supplemental cash flow information related to non-cash investing activity was as follows: Year Ended December 31, 2022 2021 2019 Accrued property, plant and equipment purchases $ 10.6 $ 3.6 $ 2.0 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The components of intangible assets, net as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 6.3 $ 6.2 $ 0.1 $ 6.3 $ 5.8 $ 0.5 Technology use 9.0 9.0 — 9.0 9.0 — Capitalized software 57.9 53.0 4.9 57.4 51.2 6.2 Total intangible assets $ 73.2 $ 68.2 $ 5.0 $ 72.7 $ 66.0 $ 6.7 |
Schedule of Estimated Annual Amortization Expense | Based upon the intangible assets subject to amortization as of December 31, 2022, TimkenSteel’s estimated annual amortization for the five succeeding years is shown below (in millions): Year Amortization 2023 $ 2.3 2024 1.3 2025 0.3 2026 0.1 2027 0.1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The Company recorded lease cost for the years ended December 31, 2022, 2021 and 2020 as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 6.7 $ 8.2 $ 8.8 Short-term lease cost 0.9 0.7 0.7 Total lease cost $ 7.6 $ 8.9 $ 9.5 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 6.7 $ 8.2 $ 8.8 Right-of-use assets obtained in exchange for operating lease obligations $ 4.5 $ 3.1 $ 12.5 |
Future Lease Maturity | Future minimum lease payments under non-cancellable leases as of December 31, 2022 were as follows: 2023 $ 6.3 2024 4.0 2025 1.9 2026 0.5 After 2026 0.3 Total future minimum lease payments 13.0 Less amount of lease payment representing interest ( 0.5 ) Total present value of lease payments $ 12.5 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Summary of Current and Non-current Debt | The following table summarizes the current and non-current debt as of December 31, 2022 and 2021: December 31, 2022 2021 Credit Agreement $ — $ — Convertible Senior Notes due 2021 — — Convertible Senior Notes due 2025 20.4 44.9 Total debt $ 20.4 $ 44.9 Less current portion of debt 20.4 44.9 Total non-current portion of debt $ — $ — |
Schedule of Net Carrying Amount of Extinguished Convertible Senior Notes | Net carrying amount of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 Principal $ 46.0 Less: Debt issuance costs, net of amortization ( 0.1 ) Less: Debt discount, net of amortization ( 1.5 ) Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 45.3 Loss on extinguishment of debt $ ( 0.9 ) |
Schedule of Amount Allocated to Reacquisition of Equity Component Included as Reduction To Additional Paid-In Capital | The amount allocated to the reacquisition of the equity component, included as a reduction to additional paid-in capital on the Consolidated Balance Sheets, was calculated as follows: Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 $ 45.3 Principal of extinguished Convertible Senior Notes due 2021 46.0 Reduction of additional paid-in capital in 2020 $ ( 0.7 ) |
Schedule of Interest (income) Expense | The following table provides the components of interest (income) expense, net for the years ended December 31, 2022, December 31, 2021 and December 31, 2020: Year Ended December 31, 2022 2021 2020 Interest expense $ 3.9 $ 6.2 $ 12.6 Interest income ( 3.3 ) ( 0.3 ) ( 0.4 ) Interest (income) expense, net $ 0.6 $ 5.9 $ 12.2 |
Convertible Senior Notes due 2025 | |
Debt Instrument [Line Items] | |
Schedule of Components of Convertible Notes | The components of the Convertible Senior Notes due 2025 as of December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 2021 Principal $ 20.8 $ 46.0 Less: Debt issuance costs, net of amortization ( 0.4 ) ( 1.1 ) Less: Debt discount, net of amortization — — Convertible Senior Notes due 2025, net $ 20.4 $ 44.9 |
Convertible Notes | |
Debt Instrument [Line Items] | |
Schedule of Interest (income) Expense | The following table sets forth total interest expense recognized specifically related to the Convertible Notes: Year Ended December 31, 2022 2021 2020 Contractual interest expense $ 1.7 $ 3.7 $ 5.2 Amortization of debt issuance costs 0.1 0.4 0.5 Amortization of debt discount — — 4.4 Total $ 1.8 $ 4.1 $ 10.1 |
Retirement and Postretirement_2
Retirement and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth the change in benefit obligation for the pension and postretirement benefit plans as of December 31, 2022: Pension United States of America United Kingdom Mexico Change in benefit obligation: Bargaining Salaried Supplemental Pension Pension Total Postretirement Benefit obligation at the beginning of year $ 1,025.4 $ 187.4 $ 23.6 $ 82.4 $ 0.4 $ 1,319.2 $ 117.8 Service cost 13.9 0.3 — — — 14.2 1.1 Interest cost 31.1 6.5 0.7 1.3 — 39.6 3.4 Actuarial (gains) losses ( 203.6 ) ( 34.0 ) ( 6.5 ) ( 25.3 ) — ( 269.4 ) ( 24.0 ) Benefits paid ( 51.0 ) ( 11.6 ) ( 0.6 ) ( 2.5 ) — ( 65.7 ) ( 10.9 ) Settlements ( 340.9 ) ( 20.5 ) ( 1.7 ) — — ( 363.1 ) — Foreign currency translation adjustment — — — ( 8.2 ) — ( 8.2 ) — Benefit obligation at the end of year $ 474.9 $ 128.1 $ 15.5 $ 47.7 $ 0.4 $ 666.6 $ 87.4 Significant actuarial gains related to changes in benefit obligations for 2022 primarily resulted from an increase in discount rates. Significant settlements were a result of the Bargaining Plan annuity purchase as well as lump sum payments during 2022. The following table sets forth the change in benefit obligation for the pension and postretirement benefit plans as of December 31, 2021: Pension United States of America United Kingdom Mexico Change in benefit obligation: Bargaining Salaried Supplemental Pension Pension Total Postretirement Benefit obligation at the beginning of year $ 1,053.9 $ 228.7 $ 27.3 $ 84.8 $ 0.4 $ 1,395.1 $ 128.3 Service cost 17.0 0.4 — — — 17.4 1.2 Interest cost 28.4 5.9 0.8 1.1 — 36.2 3.2 Actuarial (gains) losses ( 31.6 ) ( 5.1 ) ( 1.5 ) 0.3 — ( 37.9 ) ( 6.0 ) Benefits paid ( 56.5 ) ( 11.4 ) ( 3.0 ) ( 3.0 ) — ( 73.9 ) ( 8.9 ) Plan amendment 14.2 — — — — 14.2 — Settlements — ( 31.1 ) — — — ( 31.1 ) — Foreign currency translation adjustment — — — ( 0.8 ) — ( 0.8 ) — Benefit obligation at the end of year $ 1,025.4 $ 187.4 $ 23.6 $ 82.4 $ 0.4 $ 1,319.2 $ 117.8 Significant actuarial gains related to changes in benefit obligations for 2021 primarily resulted from an increase in discount rates. The following table sets forth the change in plan assets and funded status for the pension and postretirement benefit plan as of December 31, 2022: Pension United States of America United Kingdom Mexico Change in plan assets: Bargaining Salaried Supplemental Pension Pension Total Postretirement Fair value of plan assets at the beginning of year $ 862.8 $ 205.7 $ — $ 107.2 $ 0.3 $ 1,176.0 $ 76.8 Actual return on plan assets ( 119.7 ) ( 35.9 ) — ( 38.0 ) — ( 193.6 ) ( 8.8 ) Company contributions / payments — — 2.3 1.3 — 3.6 2.1 Benefits paid ( 51.0 ) ( 11.6 ) ( 0.6 ) ( 2.5 ) — ( 65.7 ) ( 10.9 ) Settlements ( 338.2 ) ( 20.5 ) ( 1.7 ) — — ( 360.4 ) — Foreign currency translation adjustment — — — ( 10.5 ) — ( 10.5 ) — Fair value of plan assets at end of year $ 353.9 $ 137.7 $ — $ 57.5 $ 0.3 $ 549.4 $ 59.2 Funded status at end of year $ ( 121.0 ) $ 9.6 $ ( 15.5 ) $ 9.8 $ ( 0.1 ) $ ( 117.2 ) $ ( 28.2 ) The following table sets forth the change in plan assets and funded status for the pension and postretirement benefit plan as of December 31, 2021: Pension United States of America United Kingdom Mexico Change in plan assets: Bargaining Salaried Supplemental Pension Pension Total Postretirement Fair value of plan assets at the beginning of year $ 884.3 $ 243.3 $ — $ 103.8 $ 0.3 $ 1,231.7 $ 82.2 Actual return on plan assets 35.0 4.9 — 4.7 — 44.6 2.4 Company contributions / payments — — 3.0 2.8 — 5.8 1.1 Benefits paid ( 56.5 ) ( 11.4 ) ( 3.0 ) ( 3.0 ) — ( 73.9 ) ( 8.9 ) Settlements — ( 31.1 ) — — — ( 31.1 ) — Foreign currency translation adjustment — — — ( 1.1 ) — ( 1.1 ) — Fair value of plan assets at end of year $ 862.8 $ 205.7 $ — $ 107.2 $ 0.3 $ 1,176.0 $ 76.8 Funded status at end of year $ ( 162.6 ) $ 18.3 $ ( 23.6 ) $ 24.8 $ ( 0.1 ) $ ( 143.2 ) $ ( 41.0 ) The Bargaining Plan, Salaried Plan, and Supplemental Plan have a provision that permits employees to elect to receive their pension benefits in a lump sum upon retirement. The Company's accounting policy is to recognize settlements during the quarter in which it is projected that the costs of all settlements during the year will be greater than the sum of the service cost and intertest cost components. In the first quarter of 2022, the cumulative cost of all lump sum payments exceeded this threshold for the Supplemental Plan. Additionally, in the first quarter of 2022, the cumulative costs of all lump sum payments were projected to exceed this threshold during 2022 for the Salaried Plan. These costs did ultimately exceed this threshold for the Salaried Plan during the second quarter of 2022. Also, during the second quarter of 2022, the cumulative costs of all lump sum payments were projected to exceed this threshold in 2022 for the Bargaining Plan. These costs did ultimately exceed this threshold for the Bargaining Plan during the third quarter of 2022. These payments constitute a partial settlement, which is a significant event requiring remeasurement of both plan assets and benefit obligations. As a result, the Company completed a full remeasurement of its pension obligations and plan assets associated with the Supplemental Plan during the first quarter of 2022. No further remeasurement was required in 2022 related to the Supplemental Plan, as no further lump sum payments have been made. The Salaried Plan's pension obligations and plan assets were remeasured during each quarter of 2022. We also completed a full remeasurement of the Bargaining Plan's pension obligations and plan assets during the second, third, and fourth quarters of 2022. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized on the balance sheet at December 31, 2022 for TimkenSteel’s pension and postretirement benefit plans include: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Non-current assets $ — $ 9.6 $ — $ 9.8 $ — $ 19.4 $ — Current liabilities — — ( 0.6 ) — — ( 0.6 ) ( 1.4 ) Non-current liabilities ( 121.0 ) — ( 15.0 ) — ( 0.1 ) ( 136.1 ) ( 26.8 ) Total $ ( 121.0 ) $ 9.6 $ ( 15.6 ) $ 9.8 $ ( 0.1 ) $ ( 117.3 ) $ ( 28.2 ) Amounts recognized on the balance sheet at December 31, 2021 for TimkenSteel’s pension and postretirement benefit plans include: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Non-current assets $ — $ 18.3 $ — $ 24.8 $ — $ 43.1 $ — Current liabilities — — ( 2.6 ) — — ( 2.6 ) ( 1.7 ) Non-current liabilities ( 162.6 ) — ( 21.0 ) — ( 0.1 ) ( 183.7 ) ( 39.3 ) Total $ ( 162.6 ) $ 18.3 $ ( 23.6 ) $ 24.8 $ ( 0.1 ) $ ( 143.2 ) $ ( 41.0 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Included in accumulated other comprehensive income (loss) at December 31, 2022 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Unrecognized prior service (benefit) cost $ 12.4 $ — $ — $ 0.5 $ — $ 12.9 $ ( 49.9 ) Included in accumulated other comprehensive income (loss) at December 31, 2021 were the following before-tax amounts that had not been recognized in net periodic benefit cost: Pension United States of America United Kingdom Mexico Bargaining Salaried Supplemental Pension Pension Total Postretirement Unrecognized prior service (benefit) cost $ 13.6 $ — $ — $ 0.6 $ — $ 14.2 $ ( 55.9 ) |
Schedule of Assumptions Used | The weighted average assumptions used in determining benefit obligation as of December 31, 2022 and 2021 were as follows: Pension Postretirement Assumptions: 2022 2021 2022 2021 Discount rate 5.61 % 2.96 % 5.70 % 3.00 % Future compensation assumption 3.00 % 3.00 % n/a n/a The weighted average assumptions used in determining benefit cost for the years ended December 31, 2022 and 2021 were as follows: Pension Postretirement Assumptions: 2022 2021 2022 2021 Discount rate 2.96 % 2.68 % 3.00 % 2.65 % Future compensation assumption 3.00 % 2.29 % n/a n/a Expected long-term return on plan assets 5.96 % 5.76 % 4.75 % 4.50 % |
Schedule of Periodic Benefit Cost | The components of net periodic benefit cost (income) for the year ended December 31, 2022 were as follows: Pension United States of America United Kingdom Mexico Components of net periodic benefit cost (income): Bargaining Salaried Supplemental Pension Pension Total Postretirement Service cost $ 13.9 $ 0.3 $ — $ — $ — $ 14.2 $ 1.1 Interest cost 31.1 6.5 0.7 1.3 — 39.6 3.4 Expected return on plan assets ( 46.7 ) ( 5.0 ) — ( 3.2 ) — ( 54.9 ) ( 3.4 ) Amortization of prior service cost 1.3 — — — — 1.3 ( 6.0 ) Settlements ( 2.7 ) — — — — ( 2.7 ) — Net remeasurement losses (gains) ( 37.2 ) 6.9 ( 6.5 ) 15.9 — ( 20.9 ) ( 11.8 ) Net Periodic Benefit Cost (Income) $ ( 40.3 ) $ 8.7 $ ( 5.8 ) $ 14.0 $ — $ ( 23.4 ) $ ( 16.7 ) The components of net periodic benefit cost (income) for the year ended December 31, 2021 were as follows: Pension United States of America United Kingdom Mexico Components of net periodic benefit cost (income): Bargaining Salaried Supplemental Pension Pension Total Postretirement Service cost $ 17.0 $ 0.4 $ — $ — $ — $ 17.4 $ 1.2 Interest cost 28.4 5.9 0.8 1.1 — 36.2 3.2 Expected return on plan assets ( 51.5 ) ( 12.6 ) — ( 3.3 ) — ( 67.4 ) ( 3.4 ) Amortization of prior service cost 0.2 — — — — 0.2 ( 6.0 ) Curtailment — — — — — — — Net remeasurement losses (gains) ( 15.1 ) 2.5 ( 1.5 ) ( 1.1 ) — ( 15.2 ) ( 4.9 ) Net Periodic Benefit Cost (Income) $ ( 21.0 ) $ ( 3.8 ) $ ( 0.7 ) $ ( 3.3 ) $ — $ ( 28.8 ) $ ( 9.9 ) The components of net periodic benefit cost (income) for the year ended December 31, 2020 were as follows: Pension United States of America United Kingdom Mexico Components of net periodic benefit cost (income): Bargaining Salaried Supplemental Pension Pension Total Postretirement Service cost $ 16.9 $ 2.5 $ — $ — $ — $ 19.4 $ 1.0 Interest cost 33.3 7.0 0.9 1.5 — 42.7 4.2 Expected return on plan assets ( 47.5 ) ( 13.5 ) — ( 3.3 ) — ( 64.3 ) ( 3.5 ) Amortization of prior service cost 0.3 — — — — 0.3 ( 6.0 ) Curtailment — — — — — — — Net remeasurement losses (gains) 10.8 ( 1.0 ) 1.8 0.4 0.1 12.1 2.6 Net Periodic Benefit Cost (Income) $ 13.8 $ ( 5.0 ) $ 2.7 $ ( 1.4 ) $ 0.1 $ 10.2 $ ( 1.7 ) |
Schedule of Target Allocations for each Plan's Assets | The target allocations for each plan's assets are as follows: Pension United States of America United Kingdom Mexico Target Allocations: Bargaining Salaried Supplemental Pension Pension Weighted Postretirement Equity securities 35.0 % — n/a 16.7 % — 24.3 % 20.0 % Debt securities 44.0 % 100.0 % n/a 66.6 % 100.0 % 60.4 % 77.5 % Other investments 21.0 % — n/a 16.7 % — 15.3 % 2.5 % |
Schedule of Allocation of Plan Assets | The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2022: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 58.4 $ 3.0 $ 55.4 $ — U.S government and agency securities 53.7 49.4 4.3 — Corporate bonds 113.0 — 113.0 — Equity securities 14.5 14.5 — — Real estate 7.6 — — 7.6 Private debt 18.8 — — 18.8 Total Assets in the fair value hierarchy $ 266.0 $ 66.9 $ 172.7 $ 26.4 Assets measured at net asset value (1) 283.4 — — — Total Assets $ 549.4 $ 66.9 $ 172.7 $ 26.4 (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and hedge funds. As of December 31, 2022 , these assets are redeemable at net asset value within 90 days, except for certain private investments with an estimated liquidation period of one to ten years. The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2021: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 87.6 $ 1.2 $ 86.4 $ — U.S government and agency securities 173.9 166.7 7.2 — Corporate bonds 244.7 — 244.7 — Equity securities 25.3 25.3 — — Other 0.3 — 0.3 — Total Assets in the fair value hierarchy $ 531.8 $ 193.2 $ 338.6 $ — Assets measured at net asset value (1) 644.2 — — — Total Assets $ 1,176.0 $ 193.2 $ 338.6 $ — (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and hedge funds. As of December 31, 2021, these assets were redeemable at net asset value within 90 days. The following table sets forth a summary of changes in the fair value of TimkenSteel's pension plan level three assets for the year ended December 31, 2022: Level 3 assets only 2022 Balance at the beginning of year $ — Transfers in and/or out of Level 3 — Actual return on plan assets: Realized gain (loss) 0.4 Net unrealized gain (loss) 0.1 Purchases, sales, issuances and settlements: Purchases 31.4 Sales ( 5.5 ) Balance at the end of year $ 26.4 The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2022: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1.4 $ 1.4 $ — $ — Mutual fund - fixed income 4.7 4.7 — — Total Assets in the fair value hierarchy $ 6.1 $ 6.1 $ — $ — Assets measured at net asset value (1) 53.1 — — — Total Assets $ 59.2 $ 6.1 $ — $ — (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities. As of December 31, 2022 , these assets are redeemable at net asset value within 90 days. The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2021: Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3.8 $ 3.8 $ — $ — Mutual fund - fixed income 5.8 5.8 — — Total Assets in the fair value hierarchy $ 9.6 $ 9.6 $ — $ — Assets measured at net asset value (1) 67.2 — — — Total Assets $ 76.8 $ 9.6 $ — $ — (1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities, fixed income securities, and limited partnerships. As of December 31, 2021, these assets were redeemable at net asset value within 90 days. |
Schedule of Expected Benefit Payments | Future benefit payments are expected to be as follows: Pension United States of America United Kingdom Mexico Benefit Payments: Bargaining Salaried Supplemental Pension Pension Total Postretirement 2023 $ 36.3 $ 13.3 $ 0.6 $ 2.1 $ — $ 52.3 $ 10.1 2024 36.9 13.3 0.6 2.2 — 53.0 9.1 2025 39.1 12.3 0.5 2.3 — 54.2 8.5 2026 41.8 11.7 0.5 2.2 — 56.2 8.0 2027 46.3 11.3 13.4 2.3 — 73.3 7.7 2028-2032 214.1 49.8 2.1 12.3 0.6 278.9 34.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation, Stock Options, Activity | The following summarizes TimkenSteel stock option activity from January 1, 2022 to December 31, 2022: Number of Weighted Weighted Aggregate Outstanding as of December 31, 2021 2,054,088 $ 20.41 Granted — — Exercised ( 518,770 ) 15.36 Canceled, forfeited or expired ( 415,795 ) 30.86 Outstanding as of December 31, 2022 1,119,523 $ 18.85 3.9 $ 5.8 Options expected to vest 167,610 6.44 7.0 2.0 Options exercisable 951,913 $ 21.04 3.3 $ 3.8 |
Time-Based Restricted Stock Units | |
Nonvested Restricted Stock Shares Activity | The following summarizes TimkenSteel stock-settled, time-based restricted stock unit activity from January 1, 2022 to December 31, 2022: Number of Weighted Outstanding as of December 31, 2021 1,668,050 $ 7.92 Granted 355,813 18.07 Vested ( 420,083 ) 11.41 Canceled, forfeited or expired ( 57,778 ) 8.35 Outstanding as of December 31, 2022 1,546,002 $ 9.29 |
Performance-Based Restricted Stock Units | |
Nonvested Restricted Stock Shares Activity | The following summarizes TimkenSteel stock-settled performance-based restricted stock unit activity from January 1, 2022 to December 31, 2022: Number of Weighted Outstanding as of December 31, 2021 794,044 $ 6.91 Granted 178,467 25.04 Canceled, forfeited or expired ( 4,096 ) 15.64 Outstanding as of December 31, 2022 968,415 $ 10.21 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021 by component were as follows: Foreign Currency Pension and Total Balance as of December 31, 2021 $ ( 5.1 ) $ 25.8 $ 20.7 Other comprehensive income before reclassifications, before income tax ( 1.7 ) — ( 1.7 ) Amounts reclassified from accumulated other comprehensive income — ( 4.7 ) ( 4.7 ) Amounts deferred to accumulated other comprehensive income — — — Tax effect — 0.4 0.4 Net current period other comprehensive income (loss), net of income taxes ( 1.7 ) ( 4.3 ) ( 6.0 ) Balance as of December 31, 2022 $ ( 6.8 ) $ 21.5 $ 14.7 Foreign Currency Pension and Total Balance as of December 31, 2020 $ ( 5.4 ) $ 45.8 $ 40.4 Other comprehensive income before reclassifications, before income tax 0.3 — 0.3 Amounts reclassified from accumulated other comprehensive income — ( 5.8 ) ( 5.8 ) Amounts deferred to accumulated other comprehensive income — ( 14.2 ) ( 14.2 ) Tax effect — — — Net current period other comprehensive income (loss), net of income taxes 0.3 ( 20.0 ) ( 19.7 ) Balance as of December 31, 2021 $ ( 5.1 ) $ 25.8 $ 20.7 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) Tons in Millions, T in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 Tons T | Dec. 31, 2022 Tons T | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Annual Melt Capacity | T | 2 | 1.2 |
Annual Shipment Capacity | Tons | 1.5 | 0.9 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Restricted Cash | $ 0.6 | |||||
Warranty claims | 0.7 | $ 1.4 | $ 0 | |||
Foreign currency exchange gains (losses) | 0.2 | (0.1) | (0.2) | |||
Research and development | 0.8 | 1.7 | 1.8 | |||
Retained deficit | $ 188.2 | 123.1 | 188.2 | |||
Proceeds from issuance of internal revenue service | 0.5 | |||||
Cash proceeds from issuance of remaining internal revenue service | $ 1.8 | |||||
Coronavirus Aid Relief And Economic Security Act | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Deferred cash payments of payroll taxes | $ 3.2 | $ 3.2 | $ 3.2 | 6.4 | ||
Accrued benefit | $ 2.3 | |||||
ASU 2020-06 | Revision of Prior Period, Accounting Standards Update, Adjustment | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Decrease to additional paid in capital | $ 10.6 | |||||
Increase to current convertible notes net | 1.1 | |||||
Increase to non-current convertible notes net | 5.3 | |||||
Retained deficit | $ 4.2 | |||||
Building | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Useful lives of property, plant and equipment, net | 30 years | |||||
Minimum | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Useful lives of intangible asses, net | 3 years | |||||
Minimum | Machinery and Equipment | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Useful lives of property, plant and equipment, net | 3 years | |||||
Maximum | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Useful lives of intangible asses, net | 15 years | |||||
Maximum | Machinery and Equipment | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Useful lives of property, plant and equipment, net | 20 years |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,329.9 | $ 1,282.9 | $ 830.7 |
Long-lived assets, net | 503.6 | 531.4 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,201.3 | 1,166.1 | 746.8 |
Long-lived assets, net | 503 | 530.7 | |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 128.6 | 116.8 | $ 83.9 |
Long-lived assets, net | $ 0.6 | $ 0.7 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,329.9 | $ 1,282.9 | $ 830.7 | |
Bar | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 887.4 | 863.6 | 502.5 | |
Tube | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 173.7 | 164.4 | 101.4 | |
Manufactured Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 243.3 | 224 | 208.1 | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 25.5 | 30.9 | 18.7 |
Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 539.1 | 527.9 | 346 | |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 628.7 | 661.2 | 391.7 | |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 136.6 | 62.9 | 53.2 | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | $ 25.5 | $ 30.9 | $ 39.8 |
[1] “Other” for sales by product type relates to the Company’s scrap sales. “Other” sales by end-market sector includes the Company’s scrap sales. In addition, 2020 includes oil country tubular goods billet sales. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities totalated | $ 3.6 | $ 0.1 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 0.8 | $ 6.7 | $ 3.1 |
Restructuring charges related to severance and employee-related benefits | 6.4 | ||
Restructuring charges related to transition of customers to other manufacturing equipment | $ 0.3 |
Restructuring Charges - Summary
Restructuring Charges - Summary of Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 4.7 | $ 1.5 | |
Expenses | 0.8 | 6.7 | $ 3.1 |
Payments | (5) | (3.5) | |
Ending balance | $ 0.5 | $ 4.7 | $ 1.5 |
Disposition of Non-Core Assets
Disposition of Non-Core Assets (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Program | Sep. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Jun. 30, 2020 USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Loss (gain) on sale or disposal of assets | ||||||||||
Inventory valuation reserves | $ 500,000 | $ 800,000 | $ 500,000 | $ 800,000 | |||||||
Inventory | 192,400,000 | 210,900,000 | 192,400,000 | 210,900,000 | |||||||
Assets held for sale | 0 | 4,300,000 | 0 | 4,300,000 | |||||||
Impairment charges related to the indefinite idling of assets | 10,600,000 | ||||||||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment charges | ||||||||||
Proceeds from sale of consolidated subsidiary, net | 0 | 6,200,000 | $ 0 | ||||||||
Loss on sale of consolidated subsidiary | 0 | 1,100,000 | 0 | ||||||||
Proceeds from sale, down payment | 5,400,000 | 1,200,000 | 10,900,000 | ||||||||
Early termination reimbursement from customer | 4,300,000 | ||||||||||
TimkenSteel (Shanghai) Corporation Limited | Daido Steel (Shanghai) Co., Ltd. | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from sale of consolidated subsidiary, net | $ 6,200,000 | ||||||||||
Loss on sale of consolidated subsidiary | $ (1,100,000) | ||||||||||
Harrison Facility | Melt and Cast Related Assets | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Non-cash charges related to write down of assets | $ 9,500,000 | ||||||||||
St.Clair Facility | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Inventory write-down | 200,000 | ||||||||||
Impairment charges | 2,400,000 | ||||||||||
Capital recovery remaining amount to be recognized | $ 1,100,000 | ||||||||||
Number of customer program early termination | Program | 2 | ||||||||||
Machinery and Equipment | Harrison Facility | Melt and Cast Related Assets | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Non-cash charges related to write down of assets | 7,900,000 | ||||||||||
Spare Parts | Harrison Facility | Melt and Cast Related Assets | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Non-cash charges related to write down of assets | 1,600,000 | ||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operation | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Accelerated depreciation | $ 1,600,000 | $ 2,800,000 | |||||||||
Gain (loss) on sale/disposal | $ 100,000 | 3,600,000 | |||||||||
Inventory write-down | $ 4,800,000 | ||||||||||
Inventory valuation reserves | $ 3,100,000 | ||||||||||
Inventory | 0 | 0 | |||||||||
Impairment charges | 300,000 | ||||||||||
Proceeds from sale of land | 300,000 | ||||||||||
Assets held for sale | $ 4,300,000 | $ 4,300,000 | |||||||||
Net cash proceeds | 2,800,000 | 2,800,000 | |||||||||
Loss on sale of assets | 1,500,000 | 1,500,000 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operation | Machinery and Equipment | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Accelerated depreciation | 1,500,000 | $ 1,800,000 | |||||||||
Gain (loss) on sale/disposal | 3,400,000 | ||||||||||
Proceeds from sale, down payment | $ 1,700,000 | ||||||||||
Expected additional payment on disposal | $ 1,700,000 | ||||||||||
Expected date of additional payment, description. | The Company expects to receive an additional $1.7 million in the first half of 2023, resulting in a gain of disposal of assets of $3.4 million. | ||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operation | Spare Parts | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Impairment charges related to the indefinite idling of assets | $ 500,000 |
Other (Income) Expense , Net (D
Other (Income) Expense , Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||||
Pension and postretirement non-service benefit (income) loss | $ (20.3) | $ (37.2) | $ (26.6) | ||
Loss (gain) from remeasurement of benefit plans | (35.4) | (20.1) | 14.7 | ||
Foreign currency exchange loss (gain) | (0.2) | 0.1 | 0.2 | ||
Insurance recoveries | $ (33) | $ (1.5) | (34.5) | 0 | 0 |
Sales and use tax refund | 0 | (2.5) | 0 | ||
Employee retention credit | 0 | 0 | (2.3) | ||
Miscellaneous (income) expense | (0.2) | 0.2 | (0.2) | ||
Total other (income) expense, net | $ (90.6) | $ (59.5) | $ (14.2) |
Other (Income) Expense , Net -
Other (Income) Expense , Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | ||||||
Sales and use taxes refund | $ 0 | $ 2.5 | $ 0 | |||
Employee retention credit | 0 | 0 | 2.3 | |||
Loss (gain) from remeasurement of benefit plans | (35.4) | (20.1) | 14.7 | |||
Investment gains on plan assets | 359.9 | 55.7 | ||||
Investment losses on plan assets | (327.2) | (35.6) | ||||
Gain on insurance proceeds received | $ 33 | $ 1.5 | 34.5 | $ 0 | $ 0 | |
Total recovery | $ 20 | $ 13 | ||||
Non cash settlement related to bargaining plan | $ 2.7 |
Income Tax Provision - Income f
Income Tax Provision - Income from Operations Before Income Taxes Based on Geographic Location of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 108.5 | $ 171.2 | $ (64.1) |
Non-United States | (11.4) | 5.5 | 3.4 |
Income (loss) from operations before income taxes | $ 97.1 | $ 176.7 | $ (60.7) |
Income Tax Provision - (Benefit
Income Tax Provision - (Benefit) Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 0.6 | $ 0.2 | $ 0.6 |
State and local | 5.7 | 3.7 | 0 |
Foreign | 0.8 | 0.6 | 0.5 |
Total current tax expense (benefit) | 7.1 | 4.5 | 1.1 |
Deferred: | |||
Federal | 24.2 | 0.8 | (0.4) |
State and local | 0.7 | 0.3 | 0.5 |
Foreign | 0 | 0.1 | 0 |
Total deferred tax expense (benefit) | 24.9 | 1.2 | 0.1 |
Provision (benefit) for incomes taxes | $ 32 | $ 5.7 | $ 1.2 |
Income Tax Provision - Narrativ
Income Tax Provision - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||||
State and local tax payments | $ 5,700,000 | $ 3,700,000 | $ 0 | |||
Income Taxes Receivable, Current | $ 2,200,000 | |||||
Dividends declared | $ 5,100,000 | |||||
Dividend declared and paid | $ 400,000 | $ 800,000 | ||||
Open tax year | 2019 2020 2021 2022 | |||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 0 | 0 | 300,000 | |||
Deferred income taxes | 25,900,000 | 2,200,000 | ||||
Operating Loss Carryforwards | 71,700,000 | |||||
Unrecognized Tax Benefits | 0 | 0 | 0 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 | 0 | 0 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | $ 0 | |||
Foreign | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Taxes Paid | 200,000 | |||||
Foreign tax payments | 900,000 | |||||
Operating Loss Carryforwards | 54,500,000 | |||||
State and Local | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Taxes Paid | 5,000,000 | |||||
State and local tax payments | 4,600,000 | |||||
Income Taxes Receivable, Current | 0 | |||||
U.S. | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Taxes Paid | 2,000,000 | |||||
U.S federal payments | $ 0 | |||||
Operating Loss Carryforwards | $ 17,200,000 |
Income Tax Provision - Reconcil
Income Tax Provision - Reconciliation Between Effective Tax Rate and Statutory Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax provision (benefit) at statutory rate | $ 20.4 | $ 37.1 | $ (12.7) |
Adjustments: | |||
State and local income taxes, net of federal tax benefit | 8.4 | 4.1 | 2.3 |
Permanent differences | 8.9 | (0.2) | 1.3 |
Foreign earnings taxed at different rates | 3.6 | (0.5) | 0.1 |
Valuation allowance | (2.5) | (34.8) | 10.3 |
U.S. research tax credit | (0.6) | 0 | 0 |
Global intangible low-taxed income | 0 | 0 | 0 |
Other items, net | 1 | 0 | (0.1) |
Provision (benefit) for incomes taxes | $ 32 | $ 5.7 | $ 1.2 |
Effective tax rate | 32.90% | 3.20% | (2.00%) |
Income Tax Provision - Effect o
Income Tax Provision - Effect of Temporary Differences Giving Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax liabilities: | ||
Depreciation | $ (81.4) | $ (89) |
Inventory | 0 | (8) |
Leases - right-of-use asset | (3.1) | (3.5) |
Deferred tax liabilities | (84.5) | (100.5) |
Deferred tax assets: | ||
Tax loss carryforwards | 20.5 | 52.6 |
Pension and postretirement benefits | 35.5 | 44.3 |
Other employee benefit accruals | 6.6 | 8.2 |
Lease liability | 3.1 | 3.5 |
State decoupling | 0.8 | 1.3 |
Accrued restructuring | 0.1 | 1.1 |
Capital loss carryforward | 0.8 | 0.8 |
Intangible assets | 0.2 | 0.6 |
Inventory | 0.7 | 0.6 |
Allowance for doubtful accounts | 0.3 | 0.5 |
Accrued Legal | 2 | 0 |
Capitalized R&D | 0.9 | 0 |
Other, net | 0.1 | 0.3 |
Deferred tax assets subtotal | 71.6 | 113.8 |
Valuation allowances | (13) | (15.5) |
Deferred tax assets | 58.6 | 98.3 |
Net deferred tax assets (liabilities) | $ (25.9) | $ (2.2) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares assumed purchased | 3.2 | 3 | ||
Shares assumed purchased with potential proceeds | 1.1 | 1.3 | ||
Repurchase of convertible notes | $ 67.6 | $ 38.9 | $ 0 | |
Convertible Senior Notes due 2025 | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share | 2.3 | |||
Convertible notes repurchased outstanding principal amount | $ 25.2 | |||
Repurchase of convertible notes | 67.6 | |||
Debt Instrument, Face Amount | $ 25.2 | |||
Convertible Notes [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share | 3.6 | 7.4 | 9.1 | |
Employee Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share | 0.8 | 1.8 | ||
Equity-based Awards [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share | 4 | 4.8 | 4.6 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income (loss), basic | $ 65.1 | $ 171 | $ (61.9) |
Add convertible notes interest | 1.9 | 4.1 | 0 |
Net income (loss), diluted | $ 67 | $ 175.1 | $ (61.9) |
Denominator: | |||
Weighted average shares outstanding, basic (in shares) | 45.8 | 45.9 | 45 |
Dilutive effect of equity-based awards (in shares) | 2.1 | 1.7 | 0 |
Dilutive effect of convertible notes (in shares) | 3.6 | 7.4 | 0 |
Weighted average shares outstanding, diluted (in shares) | 51.5 | 55 | 45 |
Basic earnings (loss) per share | $ 1.42 | $ 3.73 | $ (1.38) |
Diluted earnings (loss) per share | $ 1.30 | $ 3.18 | $ (1.38) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Manufacturing supplies | $ 36.9 | $ 29.3 |
Raw materials | 23.9 | 37.3 |
Work in process | 94.7 | 89.3 |
Finished products | 37.4 | 55.8 |
Gross inventory | 192.9 | 211.7 |
Allowance for inventory reserves | (0.5) | (0.8) |
Total inventories, net | $ 192.4 | $ 210.9 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 11.2 | $ 11.2 |
Buildings and improvements | 414.6 | 415 |
Machinery and equipment | 1,391.5 | 1,391.9 |
Construction in progress | 30.8 | 9.6 |
Subtotal | 1,848.1 | 1,827.7 |
Less allowances for depreciation | (1,362) | (1,317.5) |
Property, plant and equipment, net | $ 486.1 | $ 510.2 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 55.5 | $ 59.8 | $ 65 |
Accelerated depreciation | 1.5 | 2.4 | |
Impairment charges and loss on sale | $ 1.9 | 1.3 | $ 2.6 |
Impairment charges related to the indefinite idling of assets | $ 10.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Schedule of Supplemental Cash Flow Information Related to Non-Cash Investing Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accrued property, plant and equipment purchases | $ 10.6 | $ 3.6 | $ 2 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 73.2 | $ 72.7 |
Accumulated Amortization | 68.2 | 66 |
Net Carrying Amount | 5 | 6.7 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6.3 | 6.3 |
Accumulated Amortization | 6.2 | 5.8 |
Net Carrying Amount | 0.1 | 0.5 |
Technology use | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9 | 9 |
Accumulated Amortization | 9 | 9 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 57.9 | 57.4 |
Accumulated Amortization | 53 | 51.2 |
Net Carrying Amount | $ 4.9 | $ 6.2 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 8 years | ||
Amortization expense for intangible assets | $ 2,800,000 | $ 3,300,000 | $ 5,000,000 |
Loss on disposal of intangibles | $ 0 | $ 0 | 200,000 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 15 years | ||
Technology use | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 15 years | ||
Capitalized software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life | 6 years | ||
Accelerated amortization expense | $ 1,000,000 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Annual Amortization Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 2.3 |
2024 | 1.3 |
2025 | 0.3 |
2026 | 0.1 |
2027 | $ 0.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, option to extend | true | |
Extension term | 1 year | |
Weighted average remaining lease term for operating leases | 2 years 6 months | |
Weighted average discount rate used to measure operating lease liabilities | 3.10% | 2.70% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 5 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 6.7 | $ 8.2 | $ 8.8 |
Short-term lease cost | 0.9 | 0.7 | 0.7 |
Total lease cost | $ 7.6 | $ 8.9 | $ 9.5 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6.7 | $ 8.2 | $ 8.8 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 4.5 | $ 3.1 | $ 12.5 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 6.3 |
2024 | 4 |
2025 | 1.9 |
2026 | 0.5 |
After 2026 | 0.3 |
Total future minimum lease payments | 13 |
Less amount of lease payment representing interest | (0.5) |
Total present value of lease payments | $ 12.5 |
Financing Arrangements - Summar
Financing Arrangements - Summary of Current and Non-current Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 20.4 | $ 44.9 |
Less current portion of debt | 20.4 | 44.9 |
Total non-current portion of debt | 0 | 0 |
Convertible Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | |
Convertible Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 20.4 | $ 44.9 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 15, 2020 USD ($) $ / shares | Dec. 31, 2020 USD ($) | May 31, 2016 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Days $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Feb. 24, 2023 USD ($) | Jan. 01, 2023 USD ($) $ / shares shares | Nov. 02, 2022 USD ($) | Dec. 20, 2021 shares | |
Debt Instrument [Line Items] | |||||||||||
Settled with cash payment | $ 67,600,000 | $ 38,900,000 | $ 0 | ||||||||
Loss on extinguishment of debt | 43,100,000 | 0 | 900,000 | ||||||||
Initial value of principal | 20,400,000 | 44,900,000 | |||||||||
Interest paid | 3,100,000 | 5,100,000 | 7,600,000 | ||||||||
Money market investment carrying value | $ 0 | $ 209,500,000 | 0 | 0 | |||||||
Common Stock, Shares outstanding | shares | 50 | ||||||||||
Stock Repurchase Program, Amount | $ 75,000,000 | ||||||||||
Common Shares | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stock Repurchase Program, Amount | 0 | 0 | 0 | ||||||||
Shares repurchased | shares | 3 | ||||||||||
Aggregate cost | $ 52,000,000 | ||||||||||
Average repurchase price | $ / shares | $ 17.18 | ||||||||||
Stock Repurchase Program, Remaining Amount | $ 73,000,000 | ||||||||||
Subsequent Event | Common Shares | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Shares repurchased | shares | 0.2 | ||||||||||
Aggregate cost | $ 4,500,000 | ||||||||||
Average repurchase price | $ / shares | $ 19.19 | ||||||||||
Stock Repurchase Program, Remaining Amount | $ 68,500,000 | ||||||||||
Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Final cash payment of interest made to noteholders | $ 1,800,000 | 4,100,000 | 10,100,000 | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable interest rate, spread | 0% | ||||||||||
Third Amended Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Sep. 30, 2027 | ||||||||||
Fourth Amended Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||||||
Line of credit facility, tentative future commitment increase | $ 100,000,000 | ||||||||||
Variable interest rate, spread | 1% | ||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||||||||
Convertible Senior Notes due 2021, Issuance One | Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 75,000,000 | ||||||||||
Convertible Senior Notes due 2021, Over-allotment | Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | 11,300,000 | ||||||||||
Convertible Senior Notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Jun. 01, 2021 | ||||||||||
Terms of conversion | The Convertible Senior Notes due 2021 were settled with a cash payment of $38.9 million and the issuance of shares of 0.1 million, as most noteholders exercised the conversion option prior to the date of maturity. | ||||||||||
Principal amount | 0 | ||||||||||
Settlement through issuance of shares | shares | 0.1 | ||||||||||
Final cash payment of interest made to noteholders | $ 1,200,000 | ||||||||||
Initial value of principal | $ 66,900,000 | ||||||||||
Effective interest rate | 12% | ||||||||||
Principal amount allocated to conversion feature | $ 19,400,000 | ||||||||||
Transaction costs, liability component of convertible debt | 2,400,000 | ||||||||||
Transaction costs, equity component of convertible debt | $ 700,000 | ||||||||||
Exchange of aggregate principal amount | 46,000,000 | ||||||||||
Convertible senior notes deemed to be extinguished | 46,000,000 | ||||||||||
Convertible Senior Notes due 2021 | Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Jun. 01, 2021 | ||||||||||
Debt instrument, interest rate, stated percentage | 6% | ||||||||||
Debt instrument interest payment dates description | June 1 and December 1 of each year, beginning on December 1, 2016 | ||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 12.58 | ||||||||||
Debt instrument, convertible, conversion ratio | 0.0795165 | ||||||||||
Debt instrument, convertible, amounts by which instrument can be converted | $ 1,000 | ||||||||||
Proceeds from convertible debt | $ 83,200,000 | ||||||||||
Convertible Senior Notes due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 46,000,000 | $ 46,000,000 | |||||||||
Maturity date | Dec. 01, 2025 | ||||||||||
Terms of conversion | The Convertible Senior Notes due 2025 are convertible at the option of the holders in certain circumstances and during certain periods into the Company's common shares, cash, or a combination thereof, at the Company's election. | ||||||||||
Debt Instrument, Face Amount | $ 25,200,000 | ||||||||||
Principal amount | $ 20,800,000 | 46,000,000 | |||||||||
Settled with cash payment | 67,600,000 | ||||||||||
Debt instrument, threshold trading days | Days | 20 | ||||||||||
Debt Instrument, threshold consecutive trading days | Days | 30 | ||||||||||
Debt Instrument, threshold Percentage of stock price conversion | 130% | ||||||||||
Loss on extinguishment of debt | (43,000,000) | ||||||||||
Unamortized debt issuance cost | $ 600,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 6% | 6% | 6% | ||||||||
Debt instrument interest payment dates description | June 1 and December 1 of each year, beginning on December 1, 2021 | ||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 7.82 | ||||||||||
Debt instrument, convertible, conversion ratio | 0.1278119 | ||||||||||
Debt instrument, convertible, amounts by which instrument can be converted | $ 1,000,000,000 | ||||||||||
Initial value of principal | $ 20,400,000 | 44,900,000 | |||||||||
Transaction costs, debt gross | 1,500,000 | ||||||||||
Cash proceeds from issuance of convertible senior notes | $ 0 | ||||||||||
Percentage of different from present value of remaining cash flows of convertible senior notes | 10% | ||||||||||
Fair value of convertible notes | 53,400,000 | 107,000,000 | |||||||||
Outstanding borrowings | 0 | 0 | |||||||||
Convertible Senior Notes due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Settled with cash payment | 38,900,000 | ||||||||||
Loss on extinguishment of debt | 900,000 | ||||||||||
Initial value of principal | $ 0 | ||||||||||
Fair value of extinguished portion calculated using market rate | 9% | ||||||||||
Debt instrument remaining term | 5 months 15 days | ||||||||||
Remaining accrued and unpaid interest of debt | 46,000,000 | ||||||||||
Payment of accrued and unpaid interest of debt | $ 100,000 | ||||||||||
Credit Agreement | Third Amended Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, tentative future commitment increase | 233,500,000 | ||||||||||
Outstanding borrowings | 0 | ||||||||||
Commercial and Standby Letters of Credit | Fourth Amended Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, borrowing sublimit | 15,000,000 | ||||||||||
Swingline Loans | Fourth Amended Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, borrowing sublimit | 40,000,000 | ||||||||||
First In, Last Out (FILO) | Fourth Amended Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, tentative future commitment increase | $ 30,000,000 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Net Carrying Amount of Extinguished Convertible Senior Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 15, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (43.1) | $ 0 | $ (0.9) | |
Convertible Senior Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 46 | |||
Less: Debt issuance costs, net of amortization | (0.1) | |||
Less: Debt discount, net of amortization | (1.5) | |||
Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 | 45.3 | |||
Loss on extinguishment of debt | $ (0.9) |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Amount Allocated to Reacquisition of Equity Component Included as Reduction To Additional Paid-In Capital (Details) - Convertible Senior Notes due 2021 $ in Millions | Dec. 15, 2020 USD ($) |
Debt Instrument [Line Items] | |
Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 | $ 45.3 |
Principal of extinguished Convertible Senior Notes due 2021 | 46 |
Reduction of additional paid-in capital | $ (0.7) |
Financing Arrangements - Sche_3
Financing Arrangements - Schedule of Convertible Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2016 |
Debt Instrument [Line Items] | |||
Total debt | $ 20.4 | $ 44.9 | |
Convertible Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Principal | 0 | ||
Total debt | $ 66.9 | ||
Convertible Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Principal | 20.8 | 46 | |
Less: Debt issuance costs, net of amortization | (0.4) | (1.1) | |
Less: Debt discount, net of amortization | 0 | ||
Total debt | $ 20.4 | $ 44.9 |
Financing Arrangements - Sche_4
Financing Arrangements - Schedule Components of Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 3.9 | $ 6.2 | $ 12.6 |
Interest income | (3.3) | (0.3) | (0.4) |
Interest (income) expense, net | $ 0.6 | $ 5.9 | $ 12.2 |
Financing Arrangements - Sche_5
Financing Arrangements - Schedule of Interest Expense (Details) - Convertible Notes - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 1.7 | $ 3.7 | $ 5.2 |
Amortization of debt issuance costs | 0.1 | 0.4 | 0.5 |
Amortization of debt discount | 0 | 0 | 4.4 |
Total | $ 1.8 | $ 4.1 | $ 10.1 |
Retirement and Postretirement_3
Retirement and Postretirement Plans - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 07, 2022 | Oct. 29, 2021 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pension cost and other postretirement benefits cost (reversal of cost), remeasurement | $ (35.4) | $ (20.1) | $ 14.7 | |||
Defined contribution plan cost | 3.3 | 2.8 | 3.2 | |||
Bargaining Plan | ||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit plan term of contract | 4 years | |||||
Defined benefit plan contract expiration date | Sep. 27, 2025 | |||||
Increased in pension liability | 14.2 | |||||
Bargaining Plan's obligations | $ 256.2 | |||||
Settlement gain | $ 2.7 | |||||
Accumulated benefit obligation for plans which the accumulated benefit obligation exceeded the fair value of plan assets | 468.9 | |||||
Postretirement | ||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Settlement gain | $ 11.8 | 4.9 | (2.6) | |||
Benefit plan terminated effective date | Mar. 31, 2022 | |||||
Expected annuity purchase year | 2023 | |||||
Expected contributions and payments from 2024 through 2032 | $ 34.3 | |||||
Pension | ||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Settlement gain | 20.9 | 15.2 | $ (12.1) | |||
Settlements | 363.1 | 31.1 | ||||
Retirement plan expenses | 5.1 | 3 | ||||
Accumulated benefit obligation | 660.6 | $ 1,303.2 | ||||
Expected contributions and payments from 2024 through 2032 | 278.9 | |||||
Supplemental Plan | ||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Accumulated benefit obligation for plans which the accumulated benefit obligation exceeded the fair value of plan assets | 15.7 | |||||
Medical and Prescription Drug Benefits | ||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Health care cost trend rate | 10% | |||||
Pension and Postretirement Plans | ||||||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Expected contributions and payments in next 12 months | 3.2 | |||||
Expected contributions and payments from 2024 through 2032 | $ 224.8 |
Retirement and Postretirement_4
Retirement and Postretirement Plans - Change in Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | $ 1,319.2 | $ 1,395.1 | |
Service cost | 14.2 | 17.4 | $ 19.4 |
Interest cost | 39.6 | 36.2 | 42.7 |
Actuarial (gains) losses | (269.4) | (37.9) | |
Benefits paid | (65.7) | (73.9) | |
Plan amendment | 14.2 | ||
Settlements | (363.1) | (31.1) | |
Foreign currency translation adjustment | (8.2) | (0.8) | |
Benefit obligation at the end of year | 666.6 | 1,319.2 | 1,395.1 |
Pension | United States of America | Bargaining Plan | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | 1,025.4 | 1,053.9 | |
Service cost | 13.9 | 17 | 16.9 |
Interest cost | 31.1 | 28.4 | 33.3 |
Actuarial (gains) losses | (203.6) | (31.6) | |
Benefits paid | (51) | (56.5) | |
Plan amendment | 14.2 | ||
Settlements | (340.9) | ||
Benefit obligation at the end of year | 474.9 | 1,025.4 | 1,053.9 |
Pension | United States of America | Salaried Plan | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | 187.4 | 228.7 | |
Service cost | 0.3 | 0.4 | 2.5 |
Interest cost | 6.5 | 5.9 | 7 |
Actuarial (gains) losses | (34) | (5.1) | |
Benefits paid | (11.6) | (11.4) | |
Settlements | (20.5) | (31.1) | |
Benefit obligation at the end of year | 128.1 | 187.4 | 228.7 |
Pension | United States of America | Supplemental Plan | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | 23.6 | $ 27.3 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Liability, Defined Benefit Plan, Noncurrent | ||
Interest cost | 0.7 | $ 0.8 | 0.9 |
Actuarial (gains) losses | (6.5) | (1.5) | |
Benefits paid | (0.6) | (3) | |
Settlements | (1.7) | ||
Benefit obligation at the end of year | 15.5 | 23.6 | 27.3 |
Pension | United Kingdom | Pension Scheme | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | 82.4 | 84.8 | |
Service cost | 0 | ||
Interest cost | 1.3 | 1.1 | 1.5 |
Actuarial (gains) losses | (25.3) | 0.3 | |
Benefits paid | (2.5) | (3) | |
Foreign currency translation adjustment | (8.2) | (0.8) | |
Benefit obligation at the end of year | 47.7 | 82.4 | 84.8 |
Pension | Mexico | Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | 0.4 | 0.4 | |
Actuarial (gains) losses | 0 | ||
Benefit obligation at the end of year | 0.4 | 0.4 | 0.4 |
Postretirement | |||
Change in benefit obligation: | |||
Benefit obligation at the beginning of year | 117.8 | 128.3 | |
Service cost | 1.1 | 1.2 | 1 |
Interest cost | 3.4 | 3.2 | 4.2 |
Actuarial (gains) losses | (24) | (6) | |
Benefits paid | (10.9) | (8.9) | |
Benefit obligation at the end of year | $ 87.4 | $ 117.8 | $ 128.3 |
Retirement and Postretirement_5
Retirement and Postretirement Plans - Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | ||
Change in plan assets: | ||
Fair value of plan assets at the beginning of year | $ 1,176 | $ 1,231.7 |
Actual return on plan assets | (193.6) | 44.6 |
Company contributions / payments | 3.6 | 5.8 |
Benefits paid | (65.7) | (73.9) |
Settlements | (360.4) | (31.1) |
Foreign currency translation adjustment | (10.5) | (1.1) |
Fair value of plan assets at end of year | 549.4 | 1,176 |
Funded status at end of year | (117.2) | (143.2) |
Pension | United States of America | Bargaining Plan | ||
Change in plan assets: | ||
Fair value of plan assets at the beginning of year | 862.8 | 884.3 |
Actual return on plan assets | (119.7) | 35 |
Benefits paid | (51) | (56.5) |
Settlements | (338.2) | |
Fair value of plan assets at end of year | 353.9 | 862.8 |
Funded status at end of year | (121) | (162.6) |
Pension | United States of America | Salaried Plan | ||
Change in plan assets: | ||
Fair value of plan assets at the beginning of year | 205.7 | 243.3 |
Actual return on plan assets | (35.9) | 4.9 |
Benefits paid | (11.6) | (11.4) |
Settlements | (20.5) | (31.1) |
Fair value of plan assets at end of year | 137.7 | 205.7 |
Funded status at end of year | 9.6 | 18.3 |
Pension | United States of America | Supplemental Plan | ||
Change in plan assets: | ||
Company contributions / payments | 2.3 | 3 |
Benefits paid | (0.6) | (3) |
Settlements | (1.7) | |
Funded status at end of year | (15.5) | (23.6) |
Pension | United Kingdom | Pension Scheme | ||
Change in plan assets: | ||
Fair value of plan assets at the beginning of year | 107.2 | 103.8 |
Actual return on plan assets | (38) | 4.7 |
Company contributions / payments | 1.3 | 2.8 |
Benefits paid | (2.5) | (3) |
Foreign currency translation adjustment | (10.5) | (1.1) |
Fair value of plan assets at end of year | 57.5 | 107.2 |
Funded status at end of year | 9.8 | 24.8 |
Pension | Mexico | Pension Plan | ||
Change in plan assets: | ||
Fair value of plan assets at the beginning of year | 0.3 | 0.3 |
Fair value of plan assets at end of year | 0.3 | 0.3 |
Funded status at end of year | (0.1) | (0.1) |
Postretirement | ||
Change in plan assets: | ||
Fair value of plan assets at the beginning of year | 76.8 | 82.2 |
Actual return on plan assets | (8.8) | 2.4 |
Company contributions / payments | 2.1 | 1.1 |
Benefits paid | (10.9) | (8.9) |
Fair value of plan assets at end of year | 59.2 | 76.8 |
Funded status at end of year | $ (28.2) | $ (41) |
Retirement and Postretirement_6
Retirement and Postretirement Plans - Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | $ 19.4 | $ 43.1 |
Current liabilities | (2) | (4.3) |
Non-current liabilities | (162.9) | (223) |
Pension | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 19.4 | 43.1 |
Current liabilities | (0.6) | (2.6) |
Non-current liabilities | (136.1) | (183.7) |
Total assets (liabilities) recognized | (117.3) | (143.2) |
Pension | United States of America | Bargaining Plan | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current liabilities | (121) | (162.6) |
Total assets (liabilities) recognized | (121) | (162.6) |
Pension | United States of America | Salaried Plan | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 9.6 | 18.3 |
Total assets (liabilities) recognized | 9.6 | 18.3 |
Pension | United States of America | Supplemental Plan | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | (0.6) | (2.6) |
Non-current liabilities | (15) | (21) |
Total assets (liabilities) recognized | (15.6) | (23.6) |
Pension | United Kingdom | Pension Scheme | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 9.8 | 24.8 |
Total assets (liabilities) recognized | 9.8 | 24.8 |
Pension | Mexico | Pension Plan | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current liabilities | (0.1) | (0.1) |
Total assets (liabilities) recognized | (0.1) | (0.1) |
Postretirement | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | (1.4) | (1.7) |
Non-current liabilities | (26.8) | (39.3) |
Total assets (liabilities) recognized | $ (28.2) | $ (41) |
Retirement and Postretirement_7
Retirement and Postretirement Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized prior service (benefit) cost | $ 12.9 | $ 14.2 |
Pension | United States of America | Bargaining Plan | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized prior service (benefit) cost | 12.4 | 13.6 |
Pension | United Kingdom | Pension Scheme | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized prior service (benefit) cost | 0.5 | 0.6 |
Postretirement | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized prior service (benefit) cost | $ (49.9) | $ (55.9) |
Retirement and Postretirement_8
Retirement and Postretirement Plans - Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension | ||
Benefit Obligation | ||
Discount rate | 5.61% | 2.96% |
Future compensation assumption | 3% | 3% |
Benefit Cost | ||
Discount rate | 2.96% | 2.68% |
Future compensation assumption | 3% | 2.29% |
Expected long-term return on plan assets | 5.96% | 5.76% |
Postretirement | ||
Benefit Obligation | ||
Discount rate | 5.70% | 3% |
Benefit Cost | ||
Discount rate | 3% | 2.65% |
Expected long-term return on plan assets | 4.75% | 4.50% |
Retirement and Postretirement_9
Retirement and Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 14.2 | $ 17.4 | $ 19.4 |
Interest cost | 39.6 | 36.2 | 42.7 |
Expected return on plan assets | (54.9) | (67.4) | (64.3) |
Amortization of prior service cost | 1.3 | 0.2 | 0.3 |
Settlements | (2.7) | ||
Curtailments | $ 0 | ||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Accrued pension and postretirement costs | ||
Net remeasurement losses (gains) | (20.9) | (15.2) | $ 12.1 |
Net Periodic Benefit Cost (Income) | (23.4) | (28.8) | 10.2 |
Pension | United States of America | Bargaining Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 13.9 | 17 | 16.9 |
Interest cost | 31.1 | 28.4 | 33.3 |
Expected return on plan assets | (46.7) | (51.5) | (47.5) |
Amortization of prior service cost | 1.3 | 0.2 | 0.3 |
Settlements | (2.7) | ||
Net remeasurement losses (gains) | 37.2 | (15.1) | 10.8 |
Net Periodic Benefit Cost (Income) | (40.3) | (21) | 13.8 |
Pension | United States of America | Salaried Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0.3 | 0.4 | 2.5 |
Interest cost | 6.5 | 5.9 | 7 |
Expected return on plan assets | (5) | (12.6) | (13.5) |
Curtailments | 0 | ||
Net remeasurement losses (gains) | 6.9 | 2.5 | (1) |
Net Periodic Benefit Cost (Income) | 8.7 | (3.8) | (5) |
Pension | United States of America | Supplemental Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 0.7 | 0.8 | 0.9 |
Curtailments | 0 | ||
Net remeasurement losses (gains) | (6.5) | (1.5) | 1.8 |
Net Periodic Benefit Cost (Income) | (5.8) | (0.7) | 2.7 |
Pension | United Kingdom | Pension Scheme | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | ||
Interest cost | 1.3 | $ 1.1 | 1.5 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Liability, Defined Benefit Plan, Noncurrent | ||
Expected return on plan assets | (3.2) | $ (3.3) | (3.3) |
Net remeasurement losses (gains) | 15.9 | (1.1) | 0.4 |
Net Periodic Benefit Cost (Income) | 14 | (3.3) | (1.4) |
Pension | Mexico | Pension Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net remeasurement losses (gains) | 0 | 0.1 | |
Net Periodic Benefit Cost (Income) | 0 | 0.1 | |
Postretirement | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 1.1 | 1.2 | 1 |
Interest cost | 3.4 | 3.2 | 4.2 |
Expected return on plan assets | (3.4) | $ (3.4) | (3.5) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Liability, Defined Benefit Plan, Noncurrent | ||
Amortization of prior service cost | (6) | $ (6) | (6) |
Net remeasurement losses (gains) | (11.8) | (4.9) | 2.6 |
Net Periodic Benefit Cost (Income) | $ 16.7 | $ (9.9) | $ (1.7) |
Retirement and Postretiremen_10
Retirement and Postretirement Plans - Schedule of Target Allocations for each Plan's Assets (Details) | Dec. 31, 2022 |
Pension | Equity securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 24.30% |
Pension | Debt Securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 60.40% |
Pension | Other Investments | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 15.30% |
Pension | Bargaining Plan | United States of America | Equity securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 35% |
Pension | Bargaining Plan | United States of America | Debt Securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 44% |
Pension | Bargaining Plan | United States of America | Other Investments | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 21% |
Pension | Salaried Plan | United States of America | Debt Securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 100% |
Pension | Salaried Plan | United States of America | Other Investments | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 0% |
Pension | Pension Scheme | United Kingdom | Equity securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 16.70% |
Pension | Pension Scheme | United Kingdom | Debt Securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 66.60% |
Pension | Pension Scheme | United Kingdom | Other Investments | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 16.70% |
Pension | Pension Plan | Mexico | Debt Securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 100% |
Postretirement | Equity securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 20% |
Postretirement | Debt Securities | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 77.50% |
Postretirement | Other Investments | |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |
Target asset allocation | 2.50% |
Retirement and Postretiremen_11
Retirement and Postretirement Plans - Allocation of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | $ 549.4 | $ 1,176 | $ 1,231.7 |
Pension | Level 1, 2 and 3 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 266 | 531.8 | |
Pension | Level 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 58.4 | 87.6 | |
Pension | Level 1, 2 and 3 | U.S government and agency securities | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 53.7 | 173.9 | |
Pension | Level 1, 2 and 3 | Corporate bonds | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 113 | 244.7 | |
Pension | Level 1, 2 and 3 | Equity securities | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 14.5 | 25.3 | |
Pension | Level 1, 2 and 3 | Other | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0.3 | ||
Pension | Level 1, 2 and 3 | Real estate | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 7.6 | ||
Pension | Level 1, 2 and 3 | Private debt | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 18.8 | ||
Pension | Level 1 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 66.9 | 193.2 | |
Pension | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 3 | 1.2 | |
Pension | Level 1 | U.S government and agency securities | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 49.4 | 166.7 | |
Pension | Level 1 | Corporate bonds | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0 | ||
Pension | Level 1 | Equity securities | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 14.5 | 25.3 | |
Pension | Level 1 | Real estate | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0 | ||
Pension | Level 1 | Private debt | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0 | ||
Pension | Level 2 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 172.7 | 338.6 | |
Pension | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 55.4 | 86.4 | |
Pension | Level 2 | U.S government and agency securities | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 4.3 | 7.2 | |
Pension | Level 2 | Corporate bonds | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 113 | 244.7 | |
Pension | Level 2 | Equity securities | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0 | ||
Pension | Level 2 | Other | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0.3 | ||
Pension | Level 2 | Real estate | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0 | ||
Pension | Level 2 | Private debt | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 0 | ||
Pension | Level 3 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 26.4 | 0 | |
Pension | Level 3 | Real estate | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 7.6 | ||
Pension | Level 3 | Private debt | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 18.8 | ||
Pension | Assets measured at net asset value | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | $ 283.4 | $ 644.2 | |
Redemption period | 90 days | 90 days | |
Postretirement | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | $ 59.2 | $ 76.8 | $ 82.2 |
Postretirement | Level 1, 2 and 3 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 6.1 | 9.6 | |
Postretirement | Level 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 1.4 | 3.8 | |
Postretirement | Level 1, 2 and 3 | Mutual fund - fixed income | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 4.7 | 5.8 | |
Postretirement | Level 1 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 9.6 | ||
Postretirement | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 3.8 | ||
Postretirement | Level 1 | Mutual fund - fixed income | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 5.8 | ||
Postretirement | Level 2 | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 6.1 | ||
Postretirement | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 1.4 | ||
Postretirement | Level 2 | Mutual fund - fixed income | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | 4.7 | ||
Postretirement | Assets measured at net asset value | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Assets | $ 53.1 | $ 67.2 | |
Redemption period | 90 days | 90 days |
Retirement and Postretiremen_12
Retirement and Postretirement Plans - Summary of Changes in the Fair Value of Pension Plan Level Three Assets (Details) - Pension $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Fair value of plan assets at the beginning of year | $ 1,176 |
Fair value of plan assets at end of year | 549.4 |
Level 3 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Fair value of plan assets at the beginning of year | 0 |
Transfers in and/or out of Level 3 | 0 |
Realized gain (loss) | 0.4 |
Net unrealized gain (loss) | 0.1 |
Purchases | 31.4 |
Sales | 5.5 |
Fair value of plan assets at end of year | $ 26.4 |
Retirement and Postretiremen_13
Retirement and Postretirement Plans - Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension | |
Benefit Payments: | |
2023 | $ 52.3 |
2024 | 53 |
2025 | 54.2 |
2026 | 56.2 |
2027 | 73.3 |
2028-2032 | 278.9 |
Pension | Bargaining Plan | United States of America | |
Benefit Payments: | |
2023 | 36.3 |
2024 | 36.9 |
2025 | 39.1 |
2026 | 41.8 |
2027 | 46.3 |
2028-2032 | 214.1 |
Pension | Salaried Plan | United States of America | |
Benefit Payments: | |
2023 | 13.3 |
2024 | 13.3 |
2025 | 12.3 |
2026 | 11.7 |
2027 | 11.3 |
2028-2032 | 49.8 |
Pension | Supplemental Plan | United States of America | |
Benefit Payments: | |
2023 | 0.6 |
2024 | 0.6 |
2025 | 0.5 |
2026 | 0.5 |
2027 | 13.4 |
2028-2032 | 2.1 |
Pension | Pension Scheme | United Kingdom | |
Benefit Payments: | |
2023 | 2.1 |
2024 | 2.2 |
2025 | 2.3 |
2026 | 2.2 |
2027 | 2.3 |
2028-2032 | 12.3 |
Pension | Pension Plan | Mexico | |
Benefit Payments: | |
2028-2032 | 0.6 |
Postretirement | |
Benefit Payments: | |
2023 | 10.1 |
2024 | 9.1 |
2025 | 8.5 |
2026 | 8 |
2027 | 7.7 |
2028-2032 | $ 34.3 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 12 Months Ended | ||||
May 05, 2021 shares | May 06, 2020 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 8,800,000 | $ 7,300,000 | $ 6,600,000 | ||
Future stock-based compensation expense | $ | $ 11,400,000 | ||||
Future stock-based compensation expense, period of recognition | 1 year 8 months 12 days | ||||
Time-Based Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights description | These restricted stock units do not have any performance conditions for vesting. | ||||
Performance-Based Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights description | The overall vesting period is generally three years, with relative total shareholder return measured for the one, two and three-year periods creating effectively a “nested” 1-year, 2-year, and 3-year plan to support rapid and sustained shareholder value creation. | ||||
Vesting period | 3 years | ||||
Number of trading days to calculate average closing stock price | 20 days | ||||
TimkenSteel 2020 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Aggregate share limit ratio | 1 | ||||
Stock-based compensation, extended-term plan | May 05, 2031 | ||||
Shares available for grant (in shares) | 2,000,000 | 4,100,000 | |||
Shares available for grant (in shares) | 2,000,000 | ||||
TimkenSteel 2020 Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 2,000,000 | 2,000,000 | |||
Share-based compensation, full value award limit | 1,800,000 | ||||
TimkenSteel 2020 Plan | Non-employee Director | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, maximum grant value | $ | $ 500,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Beginning balance (in shares) | 2,054,088 | |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (518,770) | |
Canceled, forfeited or expired (in shares) | (415,795) | |
Ending balance (in shares) | 1,119,523 | 2,054,088 |
Options expected to vest, number of shares (in shares) | 167,610 | |
Options exercisable, number of shares (in shares) | 951,913 | |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ 20.41 | |
Granted (in USD per share) | 0 | |
Exercised (in USD per share) | 15.36 | |
Canceled, forfeited or expired (in USD per share) | 30.86 | |
Ending balance (in USD per share) | 18.85 | $ 20.41 |
Options expected to vest, weighted average exercise price (in USD per share) | 6.44 | |
Options exercisable, weighted average exercise price (in USD per share) | $ 21.04 | |
Additional Information | ||
Outstanding, weighted average remaining contractual term | 3 years 10 months 24 days | |
Options expected to vest, weighted average remaining contractual term | 7 years | |
Options exercisable, weighted average remaining contractual term | 3 years 3 months 18 days | |
Outstanding, aggregate intrinsic value | $ 5.8 | |
Options expected to vest, aggregate intrinsic value | 2 | |
Options exercisable, aggregate intrinsic value | $ 3.8 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Time-Based Restricted Stock Unit Activity (Details) - Time-Based Restricted Stock Units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,668,050 |
Granted (in shares) | shares | 355,813 |
Vested (in shares) | shares | (420,083) |
Canceled, forfeited or expired (in shares) | shares | (57,778) |
Ending balance (in shares) | shares | 1,546,002 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in USD per share) | $ / shares | $ 7.92 |
Granted (in USD per share) | $ / shares | 18.07 |
Vested (in USD per share) | $ / shares | 11.41 |
Canceled, forfeited or expired (in USD per share) | $ / shares | 8.35 |
Ending balance (in USD per share) | $ / shares | $ 9.29 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Performance-Based Restricted Stock Unit Activity (Details) - Performance-Based Restricted Stock Units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 794,044 |
Granted (in shares) | shares | 178,467 |
Canceled, forfeited or expired (in shares) | shares | (4,096) |
Ending balance (in shares) | shares | 968,415 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in USD per share) | $ / shares | $ 6.91 |
Granted (in USD per share) | $ / shares | 25.04 |
Canceled, forfeited or expired (in USD per share) | $ / shares | 15.64 |
Ending balance (in USD per share) | $ / shares | $ 10.21 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 664.6 | $ 507.5 | $ 563.1 |
Other comprehensive income before reclassifications, before income tax | 1.7 | 0.3 | |
Amounts reclassified from accumulated other comprehensive income (loss), before income tax | (4.7) | (5.8) | |
Amounts deferred to accumulated other comprehensive income (loss), before income tax | 0 | (14.2) | |
Tax effect | 0.4 | 0 | 0.1 |
Other comprehensive income (loss), net of tax | (6) | (19.7) | (4.3) |
Ending balance | 686.5 | 664.6 | 507.5 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (5.1) | (5.4) | |
Other comprehensive income before reclassifications, before income tax | (1.7) | 0.3 | |
Amounts reclassified from accumulated other comprehensive income (loss), before income tax | 0 | 0 | |
Amounts deferred to accumulated other comprehensive income (loss), before income tax | 0 | 0 | |
Tax effect | 0 | 0 | |
Other comprehensive income (loss), net of tax | (1.7) | 0.3 | |
Ending balance | (6.8) | (5.1) | (5.4) |
Pension and Postretirement Liability Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 25.8 | 45.8 | |
Other comprehensive income before reclassifications, before income tax | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss), before income tax | (4.7) | (5.8) | |
Amounts deferred to accumulated other comprehensive income (loss), before income tax | 0 | (14.2) | |
Tax effect | 0.4 | 0 | |
Other comprehensive income (loss), net of tax | (4.3) | (20) | |
Ending balance | 21.5 | 25.8 | 45.8 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 20.7 | 40.4 | 44.7 |
Other comprehensive income (loss), net of tax | (6) | (19.7) | (4.3) |
Ending balance | $ 14.7 | $ 20.7 | $ 40.4 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingency Accrual, Disclosures [Abstract] | ||
Contingency reserves | $ 1.1 | $ 0.3 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Uncollectible Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1.9 | $ 1.3 | $ 1.5 |
Charged to Costs and Expenses | 0.6 | ||
Deductions | (0.9) | (0.2) | |
Balance at End of Period | 1 | 1.9 | 1.3 |
Allowance for Inventory Reserves | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 0.8 | 13.9 | 10.7 |
Charged to Costs and Expenses | 0.5 | 2.8 | 4.1 |
Deductions | (0.8) | (15.9) | (0.9) |
Balance at End of Period | 0.5 | 0.8 | 13.9 |
Valuation Allowance on Deferred Tax Assets | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 15.5 | 47.7 | 34.9 |
Charged to Costs and Expenses | 12.4 | ||
Charged to Other Accounts | 4.8 | 1.4 | |
Deductions | (2.5) | (37) | (1) |
Balance at End of Period | $ 13 | $ 15.5 | $ 47.7 |