Cover
Cover | 6 Months Ended |
Jun. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
Document Transition Report | false |
Entity File Number | 1-1169 |
Entity Registrant Name | TIMKEN CO |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-0577130 |
Entity Address, Address Line One | 4500 Mount Pleasant Street NW |
Entity Address, City or Town | North Canton |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44720-5450 |
City Area Code | 234 |
Local Phone Number | 262.3000 |
Title of 12(b) Security | Common Shares, without par value |
Trading Symbol | TKR |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 73,447,492 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000098362 |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,153.7 | $ 1,062.9 | $ 2,278.3 | $ 2,088.3 |
Cost of products sold | 811.9 | 760.6 | 1,609.1 | 1,486.8 |
Gross Profit | 341.8 | 302.3 | 669.2 | 601.5 |
Selling, general and administrative expenses | 155.9 | 149 | 310 | 293.5 |
Impairment and restructuring charges | 10 | 1.3 | 11 | 5.3 |
Operating Income | 175.9 | 152 | 348.2 | 302.7 |
Interest expense | (18.3) | (15.3) | (32.6) | (30.2) |
Interest income | 1 | 0.7 | 1.6 | 1.2 |
Non-service pension and other postretirement (expense) income | (7.9) | 1.4 | (6.6) | 5.4 |
Other expense, net | (1.1) | (2.2) | (0.9) | (1.2) |
Income Before Income Taxes | 149.6 | 136.6 | 309.7 | 277.9 |
Provision for income taxes | 44 | 29.4 | 82.2 | 54.7 |
Net Income | 105.6 | 107.2 | 227.5 | 223.2 |
Less: Net income attributable to noncontrolling interest | 0.6 | 2.4 | 4.3 | 5.1 |
Net Income Attributable to The Timken Company | $ 105 | $ 104.8 | $ 223.2 | $ 218.1 |
Net Income per Common Share Attributable to The Timken Company Common Shareholders | ||||
Basic earnings per share (in dollars per share) | $ 1.43 | $ 1.38 | $ 3.01 | $ 2.87 |
Diluted earnings per share (in dollars per share) | $ 1.42 | $ 1.36 | $ 2.98 | $ 2.82 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 105.6 | $ 107.2 | $ 227.5 | $ 223.2 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (113.1) | 23.2 | (135.7) | (21.2) |
Pension and postretirement liability adjustments | (1.4) | (1.7) | (2.9) | (3.3) |
Change in fair value of derivative financial instruments | 2.2 | (0.2) | 4.2 | 2 |
Other comprehensive (loss) income, net of tax | (112.3) | 21.3 | (134.4) | (22.5) |
Comprehensive (loss) income, net of tax | (6.7) | 128.5 | 93.1 | 200.7 |
Less: comprehensive income attributable to noncontrolling interest | 1.7 | 1.8 | 2.8 | 4.1 |
Comprehensive (loss) income attributable to The Timken Company | $ (8.4) | $ 126.7 | $ 90.3 | $ 196.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 305.3 | $ 257.1 |
Restricted cash | 0.7 | 0.8 |
Accounts receivable, less allowances (2022 – $17.5 million; 2021 – $16.9 million) | 756.3 | 626.4 |
Unbilled receivables | 107.3 | 104.5 |
Inventories, net | 1,158 | 1,042.7 |
Deferred charges and prepaid expenses | 40.5 | 32.2 |
Other current assets | 112.3 | 149.8 |
Total Current Assets | 2,480.4 | 2,213.5 |
Property, Plant and Equipment, net | 1,096.1 | 1,055.3 |
Other Assets | ||
Goodwill | 1,015.1 | 1,022.7 |
Other intangible assets | 648.1 | 668.8 |
Operating lease assets | 109.1 | 118.9 |
Deferred income taxes | 64.1 | 67.6 |
Other non-current assets | 29.6 | 23.9 |
Total Other Assets | 1,866 | 1,901.9 |
Total Assets | 5,442.5 | 5,170.7 |
Current Liabilities | ||
Accounts payable, trade | 397.2 | 430 |
Short-term debt, including current portion of long-term debt | 81.6 | 53.8 |
Salaries, wages and benefits | 135.4 | 136 |
Income taxes payable | 36.4 | 26.2 |
Other current liabilities | 269.9 | 250.6 |
Total Current Liabilities | 920.5 | 896.6 |
Non-Current Liabilities | ||
Long-term debt | 1,734.3 | 1,411.1 |
Accrued pension benefits | 164 | 155.6 |
Accrued postretirement benefits | 44.7 | 45.8 |
Long-term operating lease liabilities | 70.8 | 77.6 |
Deferred income taxes | 120.5 | 121.4 |
Other non-current liabilities | 98.5 | 84.9 |
Total Non-Current Liabilities | 2,232.8 | 1,896.4 |
Shareholders’ Equity | ||
Class I and II Serial Preferred Stock, without par value: Authorized – shares each class, none issued | 0 | 0 |
Stated capital | 40.7 | 40.7 |
Other paid-in capital | 804.1 | 786.9 |
Retained earnings | 1,793.2 | 1,616.4 |
Accumulated other comprehensive loss | (155.9) | (23) |
Treasury shares at cost (2022 – 4,085,379 shares; 2021 – 1,715,282 shares) | (278.5) | (126.1) |
Total Shareholders’ Equity | 2,203.6 | 2,294.9 |
Noncontrolling Interest | 85.6 | 82.8 |
Total Equity | 2,289.2 | 2,377.7 |
Total Liabilities and Equity | $ 5,442.5 | $ 5,170.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Allowances for accounts receivable | $ 17.5 | $ 16.9 |
Common stock authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock issued (in shares) | 77,532,871 | 77,090,104 |
Treasury stock (in shares) | 4,085,379 | 1,715,282 |
Preferred Class A | ||
Preferred stock authorized (Class I & Class II Preferred stock) (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (Class I & Class II Preferred stock) (in shares) | 0 | 0 |
Preferred Class B | ||
Preferred stock authorized (Class I & Class II Preferred stock) (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (Class I & Class II Preferred stock) (in shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net Income | $ 227.5 | $ 223.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 82.1 | 85.2 |
Impairment charges | 8.8 | 4.5 |
Loss on sale of assets | 0.8 | 0.7 |
Acquisition-related gain | 0 | (0.6) |
Deferred income tax provision (benefit) | 1.7 | (5.8) |
Stock-based compensation expense | 15.6 | 12.5 |
Pension and other postretirement expense | 11.2 | 0.5 |
Pension and other postretirement benefit contributions and payments | (8.1) | (15) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (149.3) | (125.8) |
Unbilled receivables | (2.9) | 10.4 |
Inventories | (126.1) | (81.4) |
Accounts payable, trade | (6.1) | 41.2 |
Other accrued expenses | 16.6 | 30.8 |
Income taxes | 12.1 | (1.6) |
Other, net | (6.8) | 0 |
Net Cash Provided by Operating Activities | 77.1 | 178.8 |
Investing Activities | ||
Capital expenditures | (75.2) | (60.5) |
Acquisitions, net of cash acquired of $0.2 million | (152.3) | 0.1 |
Proceeds from disposal of property, plant and equipment | 3.1 | 0 |
Investments in short-term marketable securities, net | 23.4 | (13.8) |
Other, net | 2.3 | 0.3 |
Net Cash Used in Investing Activities | (198.7) | (73.9) |
Financing Activities | ||
Cash dividends paid to shareholders | (46.4) | (46.7) |
Purchase of treasury shares | (144.3) | (26.3) |
Proceeds from exercise of stock options | 1.6 | 25.4 |
Payments related to tax withholding for stock-based compensation | (8.1) | (23.5) |
Borrowings on accounts receivable facility | 122 | 66.1 |
Payments on accounts receivable facility | (122) | (124.1) |
Proceeds from long-term debt | 684.5 | 135 |
Payments on long-term debt | (344.8) | (141.4) |
Deferred financing costs | (3.5) | 0 |
Short-term debt activity, net | 31.9 | 16.6 |
Other | 6.5 | 0 |
Net Cash Provided by (Used in) Financing Activities | 177.4 | (118.9) |
Effect of exchange rate changes on cash | (7.7) | (0.8) |
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 48.1 | (14.8) |
Cash, cash equivalents and restricted cash at beginning of year | 257.9 | 321.1 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 306 | $ 306.3 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired from acquisition | $ 0.2 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation The accompanying Consolidated Financial Statements (unaudited) for The Timken Company (the "Company" or "Timken") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by the accounting principles generally accepted in the United States ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 - Significant Accounting Policies The Company's significant accounting policies are detailed in " Note 1 - Significant Accounting Policies" of the Annual Report on Form 10-K for the year ended December 31, 2021. Recent Accounting Pronouncements: New Accounting Guidance Adopted: In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with ASC Topic 606 as if the acquirer had originated the contracts. This new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2021-08 effective January 1, 2022, and the impact of the adoption was not material to the Company's results of operations and financial condition. New Accounting Guidance Issued and Not Yet Adopted: In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832)." ASU 2021-10 is intended to increase transparency of government assistance by requiring entities to disclose the types of government assistance, the entity's accounting for government assistance, and the effect of the government assistance on an entity's financial statements. This new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its disclosures. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Note 3 - Acquisitions On May 31, 2022, the Company completed the acquisition of Spinea, s.r.o. ("Spinea"), a European technology leader and manufacturer of highly engineered cycloidal reduction gears and actuators, with estimated 2022 full year sales of approximately $40.0 million. Spinea’s solutions primarily serve high-precision automation and robotics applications in the factory automation sector. Spinea is located in Presov, Slovakia. The purchase price for this acquisition was $152.3 million, net of cash acquired of $0.2 million, subject to customary post closing adjustments. Based on markets and customers served, results for Spinea are reported in the Process Industries segment. The following table presents the purchase price allocation at fair value, for the Spinea acquisition as of June 30, 2022. Initial Purchase Assets: Accounts receivable $ 2.1 Inventories 20.9 Other current assets 2.9 Property, plant and equipment 82.6 Goodwill 39.0 Other intangible assets 31.7 Total assets acquired $ 179.2 Liabilities: Accounts payable, trade $ 7.4 Salaries, wages and benefits 1.4 Other current liabilities 1.2 Short-term debt 0.1 Long-term debt 0.2 Deferred income taxes 1.0 Other non-current liabilities 15.6 Total liabilities assumed $ 26.9 Net assets acquired $ 152.3 The following table summarizes the preliminary purchase price allocation for identifiable intangible assets acquired in 2022: Preliminary Purchase Price Allocation Weighted - Average Life Trade names $ 8.2 20 years Technology and know-how 6.1 6 years Customer relationships 17.2 17 years Capitalized software 0.2 2 years Total intangible assets $ 31.7 In determining the fair value of the amounts above, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being valued. The estimation of fair value required judgement related to future net cash flows, discount rates, competitive trends, market comparisons and other factors. Inputs were generally determined by taking into account independent appraisals and historical data, supplemented by current and anticipated market conditions. Note 3 - Acquisitions (continued) The amounts in the table above represent the preliminary purchase price allocation for Spinea. This purchase price allocation, including the residual amount allocated to goodwill, is based on preliminary information and is subject to change as additional information concerning final asset and liability valuations are obtained. As of June 30, 2022, no elements of the purchase price allocation have been finalized. During the applicable measurement period, the Company will adjust assets and liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments has been completed on the acquisition date. On August 20, 2021, the Company completed the acquisition of the assets of Intelligent Machine Solutions ("iMS"), a manufacturer of industrial robotics and automation solutions, with annual sales of approximately $6.0 million. iMS is headquartered in Norton Shores, Michigan. The total purchase price for this acquisition was $7.7 million, including post-closing adjustments. In addition, the seller has the opportunity to earn $3.0 million of contingent performance-based consideration between January 1, 2022 and June 30, 2024. This additional component will be accounted for as compensation expense over that period. Based on markets and customers served, results for iMS are primarily reported in the Process Industries segment. The following table presents the final purchase price allocation at fair value for the iMS acquisition: Final Purchase Price Allocation Total assets acquired $ 9.8 Total liabilities assumed 2.1 Net assets acquired $ 7.7 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 4 - Revenue The following table presents details deemed most relevant to the users of the financial statements about total revenue for the three and six months ended June 30, 2022 and 2021, respectively: Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 Mobile Process Total Mobile Process Total United States $ 270.3 $ 229.9 $ 500.2 $ 237.4 $ 201.6 $ 439.0 Americas excluding the United States 63.7 64.6 128.3 52.3 49.1 101.4 Europe / Middle East / Africa 118.1 141.8 259.9 124.3 137.2 261.5 China 31.2 123.7 154.9 32.2 138.4 170.6 Asia-Pacific excluding China 60.3 50.1 110.4 48.0 42.4 90.4 Net sales $ 543.6 $ 610.1 $ 1,153.7 $ 494.2 $ 568.7 $ 1,062.9 Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 Mobile Process Total Mobile Process Total United States $ 532.5 $ 456.5 $ 989.0 $ 480.3 $ 387.8 $ 868.1 Americas excluding the United States 121.8 119.7 241.5 101.1 92.3 193.4 Europe / Middle East / Africa 247.5 277.4 524.9 251.4 264.4 515.8 China 61.9 244.4 306.3 66.6 262.7 329.3 Asia-Pacific excluding China 120.3 96.3 216.6 99.3 82.4 181.7 Net sales $ 1,084.0 $ 1,194.3 $ 2,278.3 $ 998.7 $ 1,089.6 $ 2,088.3 Note 4 - Revenue (continued) When reviewing revenue by sales channel, the Company separates net sales to original equipment manufacturers ("OEMs") from sales to distributors and end users. The following table presents the percent of revenue by sales channel for the six months ended June 30, 2022 and 2021, respectively: Six Months Ended Six Months Ended Revenue by sales channel June 30, 2022 June 30, 2021 Original equipment manufacturers 60% 61% Distribution/end users 40% 39% In addition to disaggregating revenue by segment, geography and by sales channel as shown above, the Company believes information about the timing of transfer of goods or services, type of customer and distinguishing service revenue from product sales is also relevant. During the six months ended June 30, 2022 and June 30, 2021, approximately 9%, respectively, of total net sales were recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized as of a point in time. Approximately 4% of t otal net sales represented service revenue during the six months ended June 30, 2022 and June 30, 2021, respectively. Finally, business with the United States ("U.S.") government or its contractors represented approximately 6% and 7% of total net sales during the six months ended June 30, 2022 and June 30, 2021, respectively. Remaining Performance Obligations: Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed and excludes unexercised contract options. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $245.5 million a t June 30, 2022. Unbilled Receivables: The following table contains a rollforward of unbilled receivables for the six months ended June 30, 2022 and the twelve months ended December 31, 2021: June 30, December 31, Beginning balance, January 1 $ 104.5 $ 110.9 Additional unbilled revenue recognized 201.5 383.0 Less: amounts billed to customers (198.7) (389.4) Ending balance $ 107.3 $ 104.5 There were no impairment losses recorded on unbilled receivables for the six months ended June 30, 2022 and June 30, 2021. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 5 - Segment Information The primary measurement used by management to measure the financial performance of each segment is earnings before interest, taxes, depreciation and amortization ("EBITDA"). Three Months Ended Six Months Ended 2022 2021 2022 2021 Net sales: Mobile Industries $ 543.6 $ 494.2 $ 1,084.0 $ 998.7 Process Industries 610.1 568.7 1,194.3 1,089.6 Net sales $ 1,153.7 $ 1,062.9 $ 2,278.3 $ 2,088.3 Segment EBITDA: Mobile Industries $ 69.1 $ 67.3 $ 144.2 $ 146.9 Process Industries 163.5 141.2 319.1 272.2 Total EBITDA, for reportable segments $ 232.6 $ 208.5 $ 463.3 $ 419.1 Unallocated corporate expense (13.4) (11.6) (26.3) (23.2) Corporate pension and other postretirement benefit related expense (1) (11.6) (3.5) (14.2) (4.4) Acquisition-related gain (2) — — — 0.6 Depreciation and amortization (40.7) (42.2) (82.1) (85.2) Interest expense (18.3) (15.3) (32.6) (30.2) Interest income 1.0 0.7 1.6 1.2 Income before income taxes $ 149.6 $ 136.6 $ 309.7 $ 277.9 (1) Corporate pension and other postretirement benefit related expense represents actuarial (losses) and gains that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions or experience. (2) The acquisition-related gain represents measurement period adjustments to the bargain purchase gain on the acquisition of Aurora Bearing Company ("Aurora"), which closed on November 30, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 - Income Taxes The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur. Three Months Ended Six Months Ended 2022 2021 2022 2021 Provision for income taxes $ 44.0 $ 29.4 $ 82.2 $ 54.7 Effective tax rate 29.4 % 21.5 % 26.5 % 19.7 % Income tax expense for the three and six months ended June 30, 2022 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the projected mix of earnings in international jurisdictions with relatively higher tax rates. The effective tax rate of 29.4% for the three months ended June 30, 2022 was higher than the rate for the three months ended June 30, 2021 primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions, the net unfavorable impact of discrete tax items, and lower deductions for stock-based compensation. The effective tax rate of 26.5% for the six months ended June 30, 2022 was higher than the rate for the six months ended June 30, 2021 primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions, the net unfavorable impact of discrete tax items, including a discrete tax benefit in the prior year in connection with the settlement of the 2017 and 2018 U.S. federal tax years during the six months ended June 30, 2021, and lower deductions for stock-based compensation. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7 - Earnings Per Share The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2022 and 2021, respectively: Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net income attributable to The Timken Company $ 105.0 $ 104.8 $ 223.2 $ 218.1 Less: undistributed earnings allocated to nonvested stock — — — — Net income available to common shareholders for basic $ 105.0 $ 104.8 $ 223.2 $ 218.1 Denominator: Weighted average number of shares outstanding - basic 73,660,410 76,122,257 74,234,300 75,969,569 Effect of dilutive securities: Stock options and awards - based on the treasury 522,383 1,131,900 642,948 1,288,192 Weighted average number of shares outstanding assuming 74,182,793 77,254,157 74,877,248 77,257,761 Basic earnings per share $ 1.43 $ 1.38 $ 3.01 $ 2.87 Diluted earnings per share $ 1.42 $ 1.36 $ 2.98 $ 2.82 The dilutive effect of stock options and awards includes all outstanding stock options and awards except stock options that are considered antidilutive. Stock options are antidilutive when the exercise price exceeds the average market price of the Company’s common shares during the periods presented. There were no antidilutive stock options outstanding during the three and six months ended June 30, 2022 and 2021. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 8 - Inventories The components of inventories at June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Manufacturing supplies $ 39.6 $ 38.0 Raw materials 121.9 121.8 Work in process 469.4 418.4 Finished products 594.9 527.8 Subtotal 1,225.8 1,106.0 Allowance for obsolete and surplus inventory (67.8) (63.3) Total inventories, net $ 1,158.0 $ 1,042.7 Inventories are valued at net realizable value, with approximately 58% valued on the first-in, first-out ("FIFO") method and the remaining 42% valued on the last-in, first-out ("LIFO") method. The majority of the Company's domestic inventories are valued on the LIFO method, and all the Company's international inventories are valued on the FIFO method. The LIFO reserve at June 30, 2022 and December 31, 2021 was $216.7 million and $199.4 million, respectively. An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9 - Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the six months ended June 30, 2022 were as follows: Mobile Process Total Beginning balance $ 371.7 $ 651.0 $ 1,022.7 Acquisitions — 39.0 39.0 Foreign currency translation adjustments and other changes (19.4) (27.2) (46.6) Ending balance $ 352.3 $ 662.8 $ 1,015.1 The acquisition of Spinea added $39.0 million of goodwill. The goodwill is expected to be 100% tax deductible. The following table displays intangible assets as of June 30, 2022 and December 31, 2021: Balance at June 30, 2022 Balance at December 31, 2021 Gross Accumulated Net Gross Accumulated Net Intangible assets Customer relationships $ 514.9 $ (197.7) $ 317.2 $ 518.1 $ (189.3) $ 328.8 Technology and know-how 265.9 (92.0) 173.9 270.7 (86.6) 184.1 Trade names 20.6 (8.6) 12.0 14.3 (9.6) 4.7 Capitalized software 283.7 (264.1) 19.6 280.0 (261.3) 18.7 Other 3.2 (2.5) 0.7 4.7 (3.6) 1.1 $ 1,088.3 $ (564.9) $ 523.4 $ 1,087.8 $ (550.4) $ 537.4 Intangible assets not subject to amortization: Trade names $ 116.0 $ 116.0 $ 122.7 $ 122.7 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 124.7 $ 124.7 $ 131.4 $ 131.4 Total intangible assets $ 1,213.0 $ (564.9) $ 648.1 $ 1,219.2 $ (550.4) $ 668.8 Amortization expense for intangible assets was $25.3 million and $28.2 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense included $21.5 million and $24.3 million related to intangible assets acquired as part of a business combination for the six months ended June 30, 2022 and 2021, respectively. Amortization expense for intangible assets is projected to be $55.3 million in 2022; $46.6 million in 2023; $44.7 million in 2024; $42.9 million in 2025; and $41.4 million in 2026. Substantially all amortization expense for intangible assets is recorded in Cost of product sold on the Consolidated Statement of Income. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 10 - Other Current Liabilities The following table displays other current liabilities as of June 30, 2022 and December 31, 2021: June 30, December 31, (Dollars in millions) 2022 2021 Sales rebates $ 56.1 $ 70.3 Freight and duties 25.5 25.5 Operating lease liabilities 24.2 26.2 Product warranty 17.2 11.7 Professional fees 12.6 10.8 Restructuring 5.5 7.0 Taxes other than income and payroll taxes 19.2 16.0 Interest 14.2 10.8 Other 95.4 72.3 Total other current liabilities $ 269.9 $ 250.6 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 11 - Financing Arrangements Short-term debt at June 30, 2022 and December 31, 2021 was as follows: June 30, December 31, Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.50% to 2.10% at June 30, 2022 and 0.50% to 2.00% at December 31, 2021 $ 70.3 $ 42.6 Short-term debt $ 70.3 $ 42.6 The lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings up to $254.4 million in the aggregate. Most of these lines of credit are uncommitted. At June 30, 2022, the Company’s foreign subsidiaries had borrowings outstanding of $70.3 million and bank guarantees of $0.2 million, which reduced the aggregate availability under these facilities to $183.9 million. Long-term debt at June 30, 2022 and December 31, 2021 was as follows: June 30, December 31, Variable-rate Senior Credit Facility with an average interest rate on Euro of 1.00% at June 30, 2022 and U.S. Dollar of 1.09% and Euro of 1.00% at December 31, 2021 $ 8.3 $ 9.0 Variable-rate Term Loan (1) , maturing on September 11, 2023, with an interest rate of 2.79% at June 30, 2022 and 1.23% at December 31, 2021 316.9 321.1 Fixed-rate Senior Unsecured Notes (1) , maturing on September 1, 2024, with an interest rate of 3.875% 349.7 349.5 Fixed-rate Euro Senior Unsecured Notes (1) , maturing on September 7, 2027, with an interest rate of 2.02% 157.0 170.3 Fixed-rate Senior Unsecured Notes (1) , maturing on December 15, 2028, with an interest rate of 4.50% 397.0 396.9 Fixed-rate Medium-Term Notes, Series A (1) , maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% 154.7 154.7 Fixed-rate Senior Unsecured Notes (1) , maturing on April 1, 2032, with an interest rate of 4.125% 341.2 — Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% 13.9 15.8 Other 6.9 5.0 Total debt $ 1,745.6 $ 1,422.3 Less: Current maturities 11.3 11.2 Long-term debt $ 1,734.3 $ 1,411.1 (1) Net of discounts and fees The Company has a $100 million Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"), which matures on November 30, 2024. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited to certain borrowing base limitations; however, availability under the Accounts Receivable Facility was not reduced by any such borrowing base limitations at June 30, 2022. As of June 30, 2022, there were no outstanding borrowings under the Accounts Receivable Facility, and the entire $100 million was available . The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. Note 11 - Financing Arrangements (continued) The Company entered into the Fourth Amended and Restated Credit Agreement ("Senior Credit Facility") on June 25, 2019. The Senior Credit Facility is a $650.0 million unsecured revolving credit facility, which matures on June 25, 2024. At June 30, 2022, the Company had $8.3 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $641.7 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. On March 28, 2022, the Company issued fixed-rate unsecured senior notes ("2032 Notes") in the aggregate principal amount of $350 million with an interest rate of 4.125%, maturing on April 1, 2032 . Proceeds from the notes were used to for general corporate purposes, which included repayment of borrowings under the Senior Credit Facility and the Accounts Receivable Facility outstanding at the time of issuance. On September 11, 2018, the Company entered into a $350 million variable-rate term loan that matures on September 11, 2023 (the "2023 Term Loan"). Proceeds from the 2023 Term Loan were used to fund the acquisitions of Apiary Investments Holding Limited and Rollon S.p.A., which closed on September 1, 2018 and September 18, 2018, respectively. On July 12, 2019, the Company amended the 2023 Term Loan agreement to, among other things, align covenants and other terms with the Senior Credit Facility. At June 30, 2022, the Company was in full compliance with all applicable covenants on its outstanding debt. In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to insurance contracts. At June 30, 2022, outstanding letters of credit totaled $43.7 million, most with expiration dates within 12 months. The maturities of long-term debt (including $3.4 million of finance leases) subsequent to June 30, 2022 are as follows: Year 2022 $ 6.3 2023 318.3 2024 360.0 2025 1.7 2026 11.5 2027 183.2 Thereafter 864.6 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 12 - Contingencies The Company and certain of its subsidiaries have been identified as potentially responsible parties for investigation and remediation under the Comprehensive Environmental Response, Compensation and Liability Act, known as the Superfund, or similar state laws with respect to certain sites. Claims for investigation and remediation have been asserted against numerous other entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation. On December 28, 2004, the United States Environmental Protection Agency (“USEPA”) sent Lovejoy, Inc. ("Lovejoy") a Special Notice Letter that identified Lovejoy as a potentially responsible party, together with at least 14 other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”). The Company acquired Lovejoy in 2016. Lovejoy’s Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and the Illinois Environmental Protection Agency (“IEPA”) allege there have been one or more releases or threatened releases of hazardous substances, allegedly including, but not limited to, a release or threatened release on or from Lovejoy's property, at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of response costs. Lovejoy’s allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. All previously pending property damage and personal injury lawsuits against Lovejoy related to the Site were settled or dismissed prior to our acquisition of Lovejoy. The Company had total environmental accruals of $5.5 million and $6.0 million for various known environmental matters that are probable and reasonably estimable at June 30, 2022 and December 31, 2021, respectively, which includes the Lovejoy matter described above. These accruals were recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties. Product Warranties: In addition to the contingencies above, the Company provides limited warranties on certain of its products. The product warranty liability included in "Other current liabilities" on the Consolidated Balance Sheets was $17.2 million and $11.7 million at June 30, 2022 and December 31, 2021, respectively. The balances at the end of each respective period represent the best estimates of costs for future claims for products that are still under warranty. The increase in the liability for the first six months of 2022 primarily relates to additional accruals for product sold into the automotive and renewable energy sectors. Accrual estimates are based on actual claims and expected trends that continue to mature. Any significant change to these assumptions may be material to the results of operations in any particular period in which such change occurs. The following is a rollforward of the consolidated product warranty accrual for the six months ended June 30, 2022 and twelve months ended December 31, 2021: June 30, December 31, Beginning balance, January 1 $ 11.7 $ 9.4 Expense 7.6 10.1 Payments (2.1) (7.8) Ending balance $ 17.2 $ 11.7 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | Note 13 - Equity The following tables present the changes in the components of equity for the three and six months ended June 30, 2022 and 2021, respectively: The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at March 31, 2022 $ 2,355.0 $ 40.7 $ 795.4 $ 1,711.1 $ (42.5) $ (233.6) $ 83.9 Net income 105.6 105.0 0.6 Foreign currency translation adjustment (113.1) (114.2) 1.1 Pension and other postretirement liability adjustments (net of income tax benefit of $0.5 million) (1.4) (1.4) Change in fair value of derivative financial 2.2 2.2 Dividends – $0.31 per share (22.9) (22.9) Stock-based compensation expense 8.5 8.5 Stock purchased at fair market value (44.3) (44.3) Stock option exercise activity 0.2 0.2 Payments related to tax withholding for (0.6) (0.6) Balance at June 30, 2022 $ 2,289.2 $ 40.7 $ 804.1 $ 1,793.2 $ (155.9) $ (278.5) $ 85.6 The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at December 31, 2021 $ 2,377.7 $ 40.7 $ 786.9 $ 1,616.4 $ (23.0) $ (126.1) $ 82.8 Net income 227.5 223.2 4.3 Foreign currency translation adjustment (135.7) (134.2) (1.5) Pension and other postretirement liability adjustments (net of income tax benefit of $1.0 million) (2.9) (2.9) Change in fair value of derivative financial 4.2 4.2 Dividends - $0.61 per share (46.4) (46.4) Stock-based compensation expense 15.6 15.6 Stock purchased at fair market value (144.3) (144.3) Stock option exercise activity 1.6 1.6 Payments related to tax withholding for (8.1) (8.1) Balance at June 30, 2022 $ 2,289.2 $ 40.7 $ 804.1 $ 1,793.2 $ (155.9) $ (278.5) $ 85.6 Note 13 - Equity (continued) The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at March 31, 2021 $ 2,250.1 $ 40.7 $ 761.3 $ 1,429.0 $ (2.1) $ (53.4) $ 74.6 Net income 107.2 104.8 2.4 Foreign currency translation adjustment 23.2 23.8 (0.6) Pension and other postretirement liability adjustments (net of income tax benefit of $0.5 million) (1.7) (1.7) Change in fair value of derivative financial (0.2) (0.2) Dividends - $0.30 per share (22.9) (22.9) Stock-based compensation expense 6.0 6.0 Stock option exercise activity 11.3 11.3 Payments related to tax withholding for (5.7) (5.7) Balance at June 30, 2021 $ 2,367.3 $ 40.7 $ 778.6 $ 1,510.9 $ 19.8 $ (59.1) $ 76.4 The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at December 31, 2020 $ 2,225.2 $ 40.7 $ 740.7 $ 1,339.5 $ 41.3 $ (9.3) $ 72.3 Net income 223.2 218.1 5.1 Foreign currency translation adjustment (21.2) (20.2) (1.0) Pension and other postretirement liability adjustments (net of income tax benefit of $1.1 million) (3.3) (3.3) Change in fair value of derivative financial 2.0 2.0 Dividends - $0.59 per share (46.7) (46.7) Stock-based compensation expense 12.5 12.5 Stock purchased at fair market value (26.3) (26.3) Stock option exercise activity 25.4 25.4 Payments related to tax withholding for (23.5) (23.5) Balance at June 30, 2021 $ 2,367.3 $ 40.7 $ 778.6 $ 1,510.9 $ 19.8 $ (59.1) $ 76.4 |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring Charges [Abstract] | |
Impairment and Restructuring Charges | Note 14 - Impairment and Restructuring Charges Impairment and restructuring charges by segment are comprised of the following: For the three months ended June 30, 2022: Mobile Industries Process Industries Total Impairment charges $ 8.8 $ — $ 8.8 Severance and related benefit costs 0.7 0.4 1.1 Exit costs 0.1 — 0.1 Total $ 9.6 $ 0.4 $ 10.0 For the six months ended June 30, 2022: Mobile Industries Process Industries Total Impairment charges $ 8.8 $ — $ 8.8 Severance and related benefit costs 1.1 0.3 1.4 Exit costs 0.8 — 0.8 Total $ 10.7 $ 0.3 $ 11.0 For the three months ended June 30, 2021: Mobile Industries Process Industries Total Impairment charges $ 1.0 $ 0.1 $ 1.1 Severance and related benefit costs — 0.1 0.1 Exit costs 0.1 — 0.1 Total $ 1.1 $ 0.2 $ 1.3 For the six months ended June 30, 2021: Mobile Industries Process Industries Total Impairment charges $ 1.1 $ 3.4 $ 4.5 Severance and related benefit costs — 0.6 0.6 Exit costs 0.2 — 0.2 Total $ 1.3 $ 4.0 $ 5.3 The following discussion explains the impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above. Mobile Industries: During the three months ended June 30, 2022, the Company recorded impairment charges of $8.8 million related to certain assets of its joint venture in Russia. As a result of Russia's invasion of Ukraine (and associated sanctions), the Company suspended its operations in Russia. Refer to Russia Operations in Management's Discussion and Analysis for additional information. Note 14 - Impairment and Restructuring Charges (continued) On July 19, 2021, the Company announced the closure of its bearing manufacturing facility in Villa Carcina, Italy. The Company will be transferring the manufacturing of its single-row tapered roller bearing production to other bearing facilities in Europe, Asia and the United States. The Company expects to complete the closure of the facility by October of 2022 and is expected to affect approximately 110 employees. The Company expects to incur approximately $9 million to $11 million of expenses related to this closure. During the three months ended June 30, 2022, the Company recorded severance and related benefits of $0.4 million and exit costs of $0.4 million associated with this closure. During the six months ended June 30, 2022, the Company recorded severance and related benefits of $0.8 million and exit costs of $1.0 million associated with this closure. During the three months ended June 30, 2021, the Company recorded impairment charges of $1.0 million. T he Company has incurred cumulative pretax costs related to this closure of $8.3 million as of June 30, 2022, including rationalization costs recorded in cost of products sold. On January 31, 2022, the Company entered into an agreement to sell this facility with the sale expected to close in the fourth quarter of 2022. Process Industries: On February 4, 2020, the Company announced the closure of its chain manufacturing facility in Indianapolis, Indiana. This facility was part of the Diamond Chain Company ("Diamond Chain") acquisition completed on April 1, 2019. The Company will be transferring the manufacturing of its Diamond Chain product line to its chain facility in Fulton, Illinois. The chain plant is expected to cease operations by the end of the fourth quarter of 2022 and is expected to affect approximately 240 employees. The Company expects to hire approximately 130 full-time positions in Fulton, Illinois and expects to incur approximately $11 million to $14 million of expenses related to this closure. During the three months and six months ended June 30, 2021, the Company recorded severance and related benefit costs of $0.3 million and $0.6 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $12.0 million as of June 30, 2022, including rationalization costs recorded in cost of products sold. In addition, the Company recorded impairment charges of $3.3 million related to certain engineering-related assets used in the business during the six months ended June 30, 2021 . Management concluded no further investment would be made in these assets and as a result, reduced the value to zero. Consolid ated Restructuring Accrual: The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2022 and twelve months ended December 31, 2021: June 30, December 31, Beginning balance, January 1 $ 7.0 $ 8.0 Expense 2.2 4.4 Payments (3.7) (5.4) Ending balance $ 5.5 $ 7.0 The restructuring accrual at June 30, 2022 and December 31, 2021 was included in other current liabilities on the Consolidated Balance Sheets. |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefit Plans | Note 15 - Retirement Benefit Plans The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans. The amounts for the three and six months ended June 30, 2022 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2022. U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2022 2021 2022 2021 2022 2021 Components of net periodic benefit cost (credit): Service cost $ 1.8 $ 2.3 $ 0.4 $ 0.5 $ 2.2 $ 2.8 Interest cost 4.1 4.5 1.4 1.1 5.5 5.6 Expected return on plan assets (5.0) (6.1) (2.4) (2.6) (7.4) (8.7) Amortization of prior service cost 0.3 0.3 0.1 0.1 0.4 0.4 Recognition of net actuarial losses 11.6 3.5 — — 11.6 3.5 Net periodic benefit cost (credit) $ 12.8 $ 4.5 $ (0.5) $ (0.9) $ 12.3 $ 3.6 U.S. Plans International Plans Total Six Months Ended Six Months Ended Six Months Ended 2022 2021 2022 2021 2022 2021 Components of net periodic benefit cost (credit): Service cost $ 3.7 $ 4.8 $ 0.8 $ 1.0 $ 4.5 $ 5.8 Interest cost 8.2 8.9 2.9 2.2 11.1 11.1 Expected return on plan assets (10.2) (12.2) (4.9) (5.1) (15.1) (17.3) Amortization of prior service cost 0.6 0.6 0.1 0.1 0.7 0.7 Recognition of net actuarial losses 14.2 4.4 — — 14.2 4.4 Net periodic benefit cost (credit) $ 16.5 $ 6.5 $ (1.1) $ (1.8) $ 15.4 $ 4.7 The Company expects full year 2022 lump sum payments related to new retirees to exceed annual interest and service costs for two of the Company's U.S. defined benefit pension plans in 2022. This expectation triggered a remeasurement of assets and obligations for both plans. During the three months ended March 31, 2022, the Company only expected to make lump sum payments related to new retirees in excess of annual interest and service costs for one of its U.S. defined benefit pension plans resulting in only one plan being remeasured. As a result of these remeasurements, the Company recognized net actuarial losses ("mark-to-market charges") of $11.6 million and $14.2 million during the three and six months ended June 30, 2022, respectively. For the three and six months ended June 30, 2021, the Company expected to make lump sum payments related to new retirees in excess of annual interest and service costs for three of the Company's U.S. defined benefit pension plans in 2021. This expectation, along with the payout of deferred compensation to a former executive officer of the Company in June 2021, triggered a remeasurement of assets and obligations for these plans. As a result of this remeasurement, the Company recognized net actuarial losses of $3.5 million and $4.4 million during the three and six months ended June 30, 2021, respectively. |
Other Postretirement Benefit Pl
Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Postretirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Other Postretirement Benefit Plans | Note 16 - Other Postretirement Benefit Plans The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and six months ended June 30, 2022 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2022. Three Months Ended Six Months Ended 2022 2021 2022 2021 Net periodic benefit credit: Service cost $ 0.1 $ 0.1 $ 0.1 $ 0.1 Interest cost 0.3 0.3 0.7 0.7 Amortization of prior service credit (2.5) (2.5) (5.0) (5.0) Net periodic benefit credit $ (2.1) $ (2.1) $ (4.2) $ (4.2) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17 - Accumulated Other Comprehensive Income (Loss) The following tables present details about components of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2022 and 2021, respectively: Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at March 31, 2022 $ (100.3) $ 55.1 $ 2.7 $ (42.5) Other comprehensive (loss) income before (113.1) 0.2 3.9 (109.0) Amounts reclassified from accumulated other — (2.1) (0.7) (2.8) Income tax (expense) benefit — 0.5 (1.0) (0.5) Net current period other comprehensive (loss) (113.1) (1.4) 2.2 (112.3) Noncontrolling interest (1.1) — — (1.1) Net current period other comprehensive (loss) (114.2) (1.4) 2.2 (113.4) Balance at June 30, 2022 $ (214.5) $ 53.7 $ 4.9 $ (155.9) Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2021 $ (80.3) $ 56.6 $ 0.7 $ (23.0) Other comprehensive (loss) income before (135.7) 0.4 7.1 (128.2) Amounts reclassified from accumulated other — (4.3) (1.6) (5.9) Income tax (expense) benefit — 1.0 (1.3) (0.3) Net current period other comprehensive (loss) (135.7) (2.9) 4.2 (134.4) Noncontrolling interest 1.5 — — 1.5 Net current period other comprehensive (loss) (134.2) (2.9) 4.2 (132.9) Balance at June 30, 2022 $ (214.5) $ 53.7 $ 4.9 $ (155.9) Note 17 - Accumulated Other Comprehensive Income (Loss) (continued) Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at March 31, 2021 $ (62.0) $ 61.8 $ (1.9) $ (2.1) Other comprehensive income (loss) before 23.2 (0.1) (2.1) 21.0 Amounts reclassified from accumulated other — (2.1) 1.7 (0.4) Income tax benefit — 0.5 0.2 0.7 Net current period other comprehensive income 23.2 (1.7) (0.2) 21.3 Noncontrolling interest 0.6 — — 0.6 Net current period comprehensive income (loss), 23.8 (1.7) (0.2) 21.9 Balance at June 30, 2021 $ (38.2) $ 60.1 $ (2.1) $ 19.8 Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2020 $ (18.0) $ 63.4 $ (4.1) $ 41.3 Other comprehensive (loss) income before (21.2) (0.1) (0.7) (22.0) Amounts reclassified from accumulated other — (4.3) 3.4 (0.9) Income tax benefit (expense) — 1.1 (0.7) 0.4 Net current period other comprehensive (loss) (21.2) (3.3) 2.0 (22.5) Noncontrolling interest 1.0 — — 1.0 Net current period comprehensive (loss) income, (20.2) (3.3) 2.0 (21.5) Balance at June 30, 2021 $ (38.2) $ 60.1 $ (2.1) $ 19.8 Other comprehensive (loss) income before reclassifications and income taxes includes the effect of foreign currency. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 18 - Fair Value Fair value is defined as the price that would be expected to 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 FASB provides accounting rules that classify the inputs used to measure fair value 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 tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: June 30, 2022 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 283.3 $ 281.5 $ 1.8 $ — Cash and cash equivalents measured at net asset value 22.0 — — — Restricted cash 0.7 0.7 — — Short-term investments 30.6 — 30.6 — Interest rate swap contract 3.3 — 3.3 — Foreign currency forward contracts 3.4 — 3.4 — Total assets $ 343.3 $ 282.2 $ 39.1 $ — Liabilities: Foreign currency forward contracts $ 2.5 $ — $ 2.5 $ — Total liabilities $ 2.5 $ — $ 2.5 $ — December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 257.1 $ 244.8 $ 12.3 $ — Restricted cash 0.8 0.8 — — Short-term investments 56.9 — 56.9 — Foreign currency forward contracts 5.6 — 5.6 — Total assets $ 320.4 $ 245.6 $ 74.8 $ — Liabilities: Foreign currency forward contracts $ 1.0 $ — $ 1.0 $ — Total liabilities $ 1.0 $ — $ 1.0 $ — Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at the redempti on value. Short-term investments are investments with maturities between four months and one year, and generally are valued at amortized cost, which approximat es fair value. A portion of the cash and cash equivalents and short-term investments are valued based on net asset value. The Company uses publicly available market interest rates to measure the fair value of its interest rate swap contracts. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts. Note 18 - Fair Value (continued) In addition, the Company remeasures certain assets at fair value, using Level 3 inputs, as a result of the occurrence of triggering events such as purchase accounting for acquisitions. During the three months ended June 30, 2022, property, plant and equipment at the Company's joint venture in Russia, with a carrying value of $15.9 million, were written down to their fair value of $7.1 million, resulting in an impairment charge of $8.8 million. The fair value for these assets was determined based on the best price that would be received in a current transaction to sell the assets to a third party. No other material assets w ere measured at fair value on a nonrecurring basis during the six months ended June 30, 2022 and 2021, respectively. Financial Instruments: The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable and short-term borrowings are a reasonable estimate of their fair value. Due to the nature of fair value calculati ons for variable-rate debt, the carrying value of the Company's long-term variable-rate debt is a reasonable estima te of its fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $1,386.6 million and $1,171.1 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of this debt was $1,414.1 million and $1,087.5 million at June 30, 2022 and December 31, 2021, respectively. The fair value of long-term fixed-rate debt was measured using Level 2 inputs. The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments. |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 19 - Derivative Instruments and Hedging Activities The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts on various foreign currencies are entered into in order to manage the foreign currency exchange rate risk associated with certain of the Company's commitments denominated in foreign currencies. From time to time, interest rate swaps are used to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as cash flow hedges of fixed-rate borrowings. On September 8, 2020, the Company entered into a $100 million floating-to-fixed rate swap on the 2023 Term Loan, which hedges the change in the 1-month LIBOR rate between October 30, 2020 and September 11, 2023 to a fixed rate. The Company’s risk management objective is to hedge the risk of changes in the monthly interest expense attributable to changes in the benchmark interest rate. On September 15, 2020, the Company designated €54.5 million of its €150.0 million fixed-rate senior unsecured notes, maturing on September 7, 2027 (th e "2027 Notes"), as a hedge against its net investment in one of its European subsidiaries. The objective of the hedge transaction is to protect the net investment in the foreign operations against changes in the exchange rate between the U.S. dollar and the Euro. The net impact for the three and six months ended June 30, 2022, respectively, was a gain of $3.2 million and a gain of $4.8 million to accumulated comprehensive (loss) income with a corresponding offset to other expense, which partially offsets the impact of the foreign currency adjustment on the 2027 Notes. The Company entered into $350 million of floating-to-fixed 10-year Treasury rate locks during the first quarter of 2022, prior to issuing the 2032 Notes. This fixed the 10-year Treasury yield and settled at pricing of the 2032 Notes, resulting in $6.5 million of cash proceeds received by the Company. This amount was recorded to accumulated comprehensive income and will be amortized as a reduction in interest expense over the 10-year tenor of the 2032 Notes. The Company does not purchase or hold any derivativ e financial instruments for trading purposes. As of June 30, 2022 and December 31, 2021, the Company had $434.4 million and $300.8 million, respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 18 - Fair Value for the fair value disclosure of derivative financial instruments. Note 19 - Derivative Instruments and Hedging Activities (continued) Cash Flow Hedging Strategy: For certain derivative instruments that are designated and qualify as cash flow hedges ( i.e ., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. To protect against a reduction in the value of forecasted foreign currency cash flows resulting from export sales, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted cash flows denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Co nverse ly, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. As of June 30, 2022 and December 31, 2021, the Company had $76.7 million and $80.0 million, respectively, of outstanding foreign currency forward contracts at notional value that were classified as cash flow hedges. The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecast transactions is generally eighteen months or less. Purpose for Derivative Instruments not designated as Hedging Instruments: For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies typically are hedged with a forward contract at the inception of the loan with a maturity date corresponding to the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility. As of June 30, 2022 and December 31, 2021, the Company had $357.7 million and $220.8 million, respectively, of outstanding foreign currency forward contracts at notional value that were not d esignated as hedging instruments. The following table presents the impact of derivative instruments not designated as hedging instruments for the three and six months ended June 30, 2022 and 2021, respectively, and the related location within the Consolidated Statements of Income: Amount of gain or (loss) recognized in income Three Months Ended Six Months Ended Derivatives not designated as hedging instruments: Location of gain or (loss) recognized in income 2022 2021 2022 2021 Foreign currency forward contracts Other expense, net $ (6.0) $ (0.9) $ (7.0) $ (0.7) |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: New Accounting Guidance Adopted: In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with ASC Topic 606 as if the acquirer had originated the contracts. This new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2021-08 effective January 1, 2022, and the impact of the adoption was not material to the Company's results of operations and financial condition. New Accounting Guidance Issued and Not Yet Adopted: In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832)." ASU 2021-10 is intended to increase transparency of government assistance by requiring entities to disclose the types of government assistance, the entity's accounting for government assistance, and the effect of the government assistance on an entity's financial statements. This new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the purchase price allocation at fair value, for the Spinea acquisition as of June 30, 2022. Initial Purchase Assets: Accounts receivable $ 2.1 Inventories 20.9 Other current assets 2.9 Property, plant and equipment 82.6 Goodwill 39.0 Other intangible assets 31.7 Total assets acquired $ 179.2 Liabilities: Accounts payable, trade $ 7.4 Salaries, wages and benefits 1.4 Other current liabilities 1.2 Short-term debt 0.1 Long-term debt 0.2 Deferred income taxes 1.0 Other non-current liabilities 15.6 Total liabilities assumed $ 26.9 Net assets acquired $ 152.3 The following table presents the final purchase price allocation at fair value for the iMS acquisition: Final Purchase Price Allocation Total assets acquired $ 9.8 Total liabilities assumed 2.1 Net assets acquired $ 7.7 |
Summary of Preliminary Purchase Price Allocation For Identifiable Intangible Assets Acquired | The following table summarizes the preliminary purchase price allocation for identifiable intangible assets acquired in 2022: Preliminary Purchase Price Allocation Weighted - Average Life Trade names $ 8.2 20 years Technology and know-how 6.1 6 years Customer relationships 17.2 17 years Capitalized software 0.2 2 years Total intangible assets $ 31.7 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents details deemed most relevant to the users of the financial statements about total revenue for the three and six months ended June 30, 2022 and 2021, respectively: Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 Mobile Process Total Mobile Process Total United States $ 270.3 $ 229.9 $ 500.2 $ 237.4 $ 201.6 $ 439.0 Americas excluding the United States 63.7 64.6 128.3 52.3 49.1 101.4 Europe / Middle East / Africa 118.1 141.8 259.9 124.3 137.2 261.5 China 31.2 123.7 154.9 32.2 138.4 170.6 Asia-Pacific excluding China 60.3 50.1 110.4 48.0 42.4 90.4 Net sales $ 543.6 $ 610.1 $ 1,153.7 $ 494.2 $ 568.7 $ 1,062.9 Six Months Ended Six Months Ended June 30, 2022 June 30, 2021 Mobile Process Total Mobile Process Total United States $ 532.5 $ 456.5 $ 989.0 $ 480.3 $ 387.8 $ 868.1 Americas excluding the United States 121.8 119.7 241.5 101.1 92.3 193.4 Europe / Middle East / Africa 247.5 277.4 524.9 251.4 264.4 515.8 China 61.9 244.4 306.3 66.6 262.7 329.3 Asia-Pacific excluding China 120.3 96.3 216.6 99.3 82.4 181.7 Net sales $ 1,084.0 $ 1,194.3 $ 2,278.3 $ 998.7 $ 1,089.6 $ 2,088.3 Note 4 - Revenue (continued) When reviewing revenue by sales channel, the Company separates net sales to original equipment manufacturers ("OEMs") from sales to distributors and end users. The following table presents the percent of revenue by sales channel for the six months ended June 30, 2022 and 2021, respectively: Six Months Ended Six Months Ended Revenue by sales channel June 30, 2022 June 30, 2021 Original equipment manufacturers 60% 61% Distribution/end users 40% 39% |
Schedule of Contract with Customer, Asset and Liability | The following table contains a rollforward of unbilled receivables for the six months ended June 30, 2022 and the twelve months ended December 31, 2021: June 30, December 31, Beginning balance, January 1 $ 104.5 $ 110.9 Additional unbilled revenue recognized 201.5 383.0 Less: amounts billed to customers (198.7) (389.4) Ending balance $ 107.3 $ 104.5 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Wise Financial Performance | The primary measurement used by management to measure the financial performance of each segment is earnings before interest, taxes, depreciation and amortization ("EBITDA"). Three Months Ended Six Months Ended 2022 2021 2022 2021 Net sales: Mobile Industries $ 543.6 $ 494.2 $ 1,084.0 $ 998.7 Process Industries 610.1 568.7 1,194.3 1,089.6 Net sales $ 1,153.7 $ 1,062.9 $ 2,278.3 $ 2,088.3 Segment EBITDA: Mobile Industries $ 69.1 $ 67.3 $ 144.2 $ 146.9 Process Industries 163.5 141.2 319.1 272.2 Total EBITDA, for reportable segments $ 232.6 $ 208.5 $ 463.3 $ 419.1 Unallocated corporate expense (13.4) (11.6) (26.3) (23.2) Corporate pension and other postretirement benefit related expense (1) (11.6) (3.5) (14.2) (4.4) Acquisition-related gain (2) — — — 0.6 Depreciation and amortization (40.7) (42.2) (82.1) (85.2) Interest expense (18.3) (15.3) (32.6) (30.2) Interest income 1.0 0.7 1.6 1.2 Income before income taxes $ 149.6 $ 136.6 $ 309.7 $ 277.9 (1) Corporate pension and other postretirement benefit related expense represents actuarial (losses) and gains that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions or experience. (2) The acquisition-related gain represents measurement period adjustments to the bargain purchase gain on the acquisition of Aurora Bearing Company ("Aurora"), which closed on November 30, 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur. Three Months Ended Six Months Ended 2022 2021 2022 2021 Provision for income taxes $ 44.0 $ 29.4 $ 82.2 $ 54.7 Effective tax rate 29.4 % 21.5 % 26.5 % 19.7 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerator and the Denominator of Basic Earnings Per Share and Diluted Earnings Per Share | The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2022 and 2021, respectively: Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net income attributable to The Timken Company $ 105.0 $ 104.8 $ 223.2 $ 218.1 Less: undistributed earnings allocated to nonvested stock — — — — Net income available to common shareholders for basic $ 105.0 $ 104.8 $ 223.2 $ 218.1 Denominator: Weighted average number of shares outstanding - basic 73,660,410 76,122,257 74,234,300 75,969,569 Effect of dilutive securities: Stock options and awards - based on the treasury 522,383 1,131,900 642,948 1,288,192 Weighted average number of shares outstanding assuming 74,182,793 77,254,157 74,877,248 77,257,761 Basic earnings per share $ 1.43 $ 1.38 $ 3.01 $ 2.87 Diluted earnings per share $ 1.42 $ 1.36 $ 2.98 $ 2.82 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Current Inventories | The components of inventories at June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Manufacturing supplies $ 39.6 $ 38.0 Raw materials 121.9 121.8 Work in process 469.4 418.4 Finished products 594.9 527.8 Subtotal 1,225.8 1,106.0 Allowance for obsolete and surplus inventory (67.8) (63.3) Total inventories, net $ 1,158.0 $ 1,042.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2022 were as follows: Mobile Process Total Beginning balance $ 371.7 $ 651.0 $ 1,022.7 Acquisitions — 39.0 39.0 Foreign currency translation adjustments and other changes (19.4) (27.2) (46.6) Ending balance $ 352.3 $ 662.8 $ 1,015.1 |
Schedule of Finite-Lived Intangible Assets | The following table displays intangible assets as of June 30, 2022 and December 31, 2021: Balance at June 30, 2022 Balance at December 31, 2021 Gross Accumulated Net Gross Accumulated Net Intangible assets Customer relationships $ 514.9 $ (197.7) $ 317.2 $ 518.1 $ (189.3) $ 328.8 Technology and know-how 265.9 (92.0) 173.9 270.7 (86.6) 184.1 Trade names 20.6 (8.6) 12.0 14.3 (9.6) 4.7 Capitalized software 283.7 (264.1) 19.6 280.0 (261.3) 18.7 Other 3.2 (2.5) 0.7 4.7 (3.6) 1.1 $ 1,088.3 $ (564.9) $ 523.4 $ 1,087.8 $ (550.4) $ 537.4 Intangible assets not subject to amortization: Trade names $ 116.0 $ 116.0 $ 122.7 $ 122.7 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 124.7 $ 124.7 $ 131.4 $ 131.4 Total intangible assets $ 1,213.0 $ (564.9) $ 648.1 $ 1,219.2 $ (550.4) $ 668.8 |
Schedule of Indefinite-Lived Intangible Assets | The following table displays intangible assets as of June 30, 2022 and December 31, 2021: Balance at June 30, 2022 Balance at December 31, 2021 Gross Accumulated Net Gross Accumulated Net Intangible assets Customer relationships $ 514.9 $ (197.7) $ 317.2 $ 518.1 $ (189.3) $ 328.8 Technology and know-how 265.9 (92.0) 173.9 270.7 (86.6) 184.1 Trade names 20.6 (8.6) 12.0 14.3 (9.6) 4.7 Capitalized software 283.7 (264.1) 19.6 280.0 (261.3) 18.7 Other 3.2 (2.5) 0.7 4.7 (3.6) 1.1 $ 1,088.3 $ (564.9) $ 523.4 $ 1,087.8 $ (550.4) $ 537.4 Intangible assets not subject to amortization: Trade names $ 116.0 $ 116.0 $ 122.7 $ 122.7 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 124.7 $ 124.7 $ 131.4 $ 131.4 Total intangible assets $ 1,213.0 $ (564.9) $ 648.1 $ 1,219.2 $ (550.4) $ 668.8 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | The following table displays other current liabilities as of June 30, 2022 and December 31, 2021: June 30, December 31, (Dollars in millions) 2022 2021 Sales rebates $ 56.1 $ 70.3 Freight and duties 25.5 25.5 Operating lease liabilities 24.2 26.2 Product warranty 17.2 11.7 Professional fees 12.6 10.8 Restructuring 5.5 7.0 Taxes other than income and payroll taxes 19.2 16.0 Interest 14.2 10.8 Other 95.4 72.3 Total other current liabilities $ 269.9 $ 250.6 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | Short-term debt at June 30, 2022 and December 31, 2021 was as follows: June 30, December 31, Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.50% to 2.10% at June 30, 2022 and 0.50% to 2.00% at December 31, 2021 $ 70.3 $ 42.6 Short-term debt $ 70.3 $ 42.6 |
Schedule of Long-Term Debt | Long-term debt at June 30, 2022 and December 31, 2021 was as follows: June 30, December 31, Variable-rate Senior Credit Facility with an average interest rate on Euro of 1.00% at June 30, 2022 and U.S. Dollar of 1.09% and Euro of 1.00% at December 31, 2021 $ 8.3 $ 9.0 Variable-rate Term Loan (1) , maturing on September 11, 2023, with an interest rate of 2.79% at June 30, 2022 and 1.23% at December 31, 2021 316.9 321.1 Fixed-rate Senior Unsecured Notes (1) , maturing on September 1, 2024, with an interest rate of 3.875% 349.7 349.5 Fixed-rate Euro Senior Unsecured Notes (1) , maturing on September 7, 2027, with an interest rate of 2.02% 157.0 170.3 Fixed-rate Senior Unsecured Notes (1) , maturing on December 15, 2028, with an interest rate of 4.50% 397.0 396.9 Fixed-rate Medium-Term Notes, Series A (1) , maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% 154.7 154.7 Fixed-rate Senior Unsecured Notes (1) , maturing on April 1, 2032, with an interest rate of 4.125% 341.2 — Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% 13.9 15.8 Other 6.9 5.0 Total debt $ 1,745.6 $ 1,422.3 Less: Current maturities 11.3 11.2 Long-term debt $ 1,734.3 $ 1,411.1 |
Schedule of Maturities of Long-term Debt | The maturities of long-term debt (including $3.4 million of finance leases) subsequent to June 30, 2022 are as follows: Year 2022 $ 6.3 2023 318.3 2024 360.0 2025 1.7 2026 11.5 2027 183.2 Thereafter 864.6 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following is a rollforward of the consolidated product warranty accrual for the six months ended June 30, 2022 and twelve months ended December 31, 2021: June 30, December 31, Beginning balance, January 1 $ 11.7 $ 9.4 Expense 7.6 10.1 Payments (2.1) (7.8) Ending balance $ 17.2 $ 11.7 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following tables present the changes in the components of equity for the three and six months ended June 30, 2022 and 2021, respectively: The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at March 31, 2022 $ 2,355.0 $ 40.7 $ 795.4 $ 1,711.1 $ (42.5) $ (233.6) $ 83.9 Net income 105.6 105.0 0.6 Foreign currency translation adjustment (113.1) (114.2) 1.1 Pension and other postretirement liability adjustments (net of income tax benefit of $0.5 million) (1.4) (1.4) Change in fair value of derivative financial 2.2 2.2 Dividends – $0.31 per share (22.9) (22.9) Stock-based compensation expense 8.5 8.5 Stock purchased at fair market value (44.3) (44.3) Stock option exercise activity 0.2 0.2 Payments related to tax withholding for (0.6) (0.6) Balance at June 30, 2022 $ 2,289.2 $ 40.7 $ 804.1 $ 1,793.2 $ (155.9) $ (278.5) $ 85.6 The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at December 31, 2021 $ 2,377.7 $ 40.7 $ 786.9 $ 1,616.4 $ (23.0) $ (126.1) $ 82.8 Net income 227.5 223.2 4.3 Foreign currency translation adjustment (135.7) (134.2) (1.5) Pension and other postretirement liability adjustments (net of income tax benefit of $1.0 million) (2.9) (2.9) Change in fair value of derivative financial 4.2 4.2 Dividends - $0.61 per share (46.4) (46.4) Stock-based compensation expense 15.6 15.6 Stock purchased at fair market value (144.3) (144.3) Stock option exercise activity 1.6 1.6 Payments related to tax withholding for (8.1) (8.1) Balance at June 30, 2022 $ 2,289.2 $ 40.7 $ 804.1 $ 1,793.2 $ (155.9) $ (278.5) $ 85.6 Note 13 - Equity (continued) The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at March 31, 2021 $ 2,250.1 $ 40.7 $ 761.3 $ 1,429.0 $ (2.1) $ (53.4) $ 74.6 Net income 107.2 104.8 2.4 Foreign currency translation adjustment 23.2 23.8 (0.6) Pension and other postretirement liability adjustments (net of income tax benefit of $0.5 million) (1.7) (1.7) Change in fair value of derivative financial (0.2) (0.2) Dividends - $0.30 per share (22.9) (22.9) Stock-based compensation expense 6.0 6.0 Stock option exercise activity 11.3 11.3 Payments related to tax withholding for (5.7) (5.7) Balance at June 30, 2021 $ 2,367.3 $ 40.7 $ 778.6 $ 1,510.9 $ 19.8 $ (59.1) $ 76.4 The Timken Company Shareholders Total Stated Other Retained Earnings Accumulated Treasury Non Balance at December 31, 2020 $ 2,225.2 $ 40.7 $ 740.7 $ 1,339.5 $ 41.3 $ (9.3) $ 72.3 Net income 223.2 218.1 5.1 Foreign currency translation adjustment (21.2) (20.2) (1.0) Pension and other postretirement liability adjustments (net of income tax benefit of $1.1 million) (3.3) (3.3) Change in fair value of derivative financial 2.0 2.0 Dividends - $0.59 per share (46.7) (46.7) Stock-based compensation expense 12.5 12.5 Stock purchased at fair market value (26.3) (26.3) Stock option exercise activity 25.4 25.4 Payments related to tax withholding for (23.5) (23.5) Balance at June 30, 2021 $ 2,367.3 $ 40.7 $ 778.6 $ 1,510.9 $ 19.8 $ (59.1) $ 76.4 |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs | Impairment and restructuring charges by segment are comprised of the following: For the three months ended June 30, 2022: Mobile Industries Process Industries Total Impairment charges $ 8.8 $ — $ 8.8 Severance and related benefit costs 0.7 0.4 1.1 Exit costs 0.1 — 0.1 Total $ 9.6 $ 0.4 $ 10.0 For the six months ended June 30, 2022: Mobile Industries Process Industries Total Impairment charges $ 8.8 $ — $ 8.8 Severance and related benefit costs 1.1 0.3 1.4 Exit costs 0.8 — 0.8 Total $ 10.7 $ 0.3 $ 11.0 For the three months ended June 30, 2021: Mobile Industries Process Industries Total Impairment charges $ 1.0 $ 0.1 $ 1.1 Severance and related benefit costs — 0.1 0.1 Exit costs 0.1 — 0.1 Total $ 1.1 $ 0.2 $ 1.3 For the six months ended June 30, 2021: Mobile Industries Process Industries Total Impairment charges $ 1.1 $ 3.4 $ 4.5 Severance and related benefit costs — 0.6 0.6 Exit costs 0.2 — 0.2 Total $ 1.3 $ 4.0 $ 5.3 The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2022 and twelve months ended December 31, 2021: June 30, December 31, Beginning balance, January 1 $ 7.0 $ 8.0 Expense 2.2 4.4 Payments (3.7) (5.4) Ending balance $ 5.5 $ 7.0 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans. The amounts for the three and six months ended June 30, 2022 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2022. U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2022 2021 2022 2021 2022 2021 Components of net periodic benefit cost (credit): Service cost $ 1.8 $ 2.3 $ 0.4 $ 0.5 $ 2.2 $ 2.8 Interest cost 4.1 4.5 1.4 1.1 5.5 5.6 Expected return on plan assets (5.0) (6.1) (2.4) (2.6) (7.4) (8.7) Amortization of prior service cost 0.3 0.3 0.1 0.1 0.4 0.4 Recognition of net actuarial losses 11.6 3.5 — — 11.6 3.5 Net periodic benefit cost (credit) $ 12.8 $ 4.5 $ (0.5) $ (0.9) $ 12.3 $ 3.6 U.S. Plans International Plans Total Six Months Ended Six Months Ended Six Months Ended 2022 2021 2022 2021 2022 2021 Components of net periodic benefit cost (credit): Service cost $ 3.7 $ 4.8 $ 0.8 $ 1.0 $ 4.5 $ 5.8 Interest cost 8.2 8.9 2.9 2.2 11.1 11.1 Expected return on plan assets (10.2) (12.2) (4.9) (5.1) (15.1) (17.3) Amortization of prior service cost 0.6 0.6 0.1 0.1 0.7 0.7 Recognition of net actuarial losses 14.2 4.4 — — 14.2 4.4 Net periodic benefit cost (credit) $ 16.5 $ 6.5 $ (1.1) $ (1.8) $ 15.4 $ 4.7 |
Other Postretirement Benefit _2
Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Postretirement Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and six months ended June 30, 2022 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2022. Three Months Ended Six Months Ended 2022 2021 2022 2021 Net periodic benefit credit: Service cost $ 0.1 $ 0.1 $ 0.1 $ 0.1 Interest cost 0.3 0.3 0.7 0.7 Amortization of prior service credit (2.5) (2.5) (5.0) (5.0) Net periodic benefit credit $ (2.1) $ (2.1) $ (4.2) $ (4.2) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive (Loss) Income | The following tables present details about components of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2022 and 2021, respectively: Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at March 31, 2022 $ (100.3) $ 55.1 $ 2.7 $ (42.5) Other comprehensive (loss) income before (113.1) 0.2 3.9 (109.0) Amounts reclassified from accumulated other — (2.1) (0.7) (2.8) Income tax (expense) benefit — 0.5 (1.0) (0.5) Net current period other comprehensive (loss) (113.1) (1.4) 2.2 (112.3) Noncontrolling interest (1.1) — — (1.1) Net current period other comprehensive (loss) (114.2) (1.4) 2.2 (113.4) Balance at June 30, 2022 $ (214.5) $ 53.7 $ 4.9 $ (155.9) Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2021 $ (80.3) $ 56.6 $ 0.7 $ (23.0) Other comprehensive (loss) income before (135.7) 0.4 7.1 (128.2) Amounts reclassified from accumulated other — (4.3) (1.6) (5.9) Income tax (expense) benefit — 1.0 (1.3) (0.3) Net current period other comprehensive (loss) (135.7) (2.9) 4.2 (134.4) Noncontrolling interest 1.5 — — 1.5 Net current period other comprehensive (loss) (134.2) (2.9) 4.2 (132.9) Balance at June 30, 2022 $ (214.5) $ 53.7 $ 4.9 $ (155.9) Note 17 - Accumulated Other Comprehensive Income (Loss) (continued) Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at March 31, 2021 $ (62.0) $ 61.8 $ (1.9) $ (2.1) Other comprehensive income (loss) before 23.2 (0.1) (2.1) 21.0 Amounts reclassified from accumulated other — (2.1) 1.7 (0.4) Income tax benefit — 0.5 0.2 0.7 Net current period other comprehensive income 23.2 (1.7) (0.2) 21.3 Noncontrolling interest 0.6 — — 0.6 Net current period comprehensive income (loss), 23.8 (1.7) (0.2) 21.9 Balance at June 30, 2021 $ (38.2) $ 60.1 $ (2.1) $ 19.8 Foreign currency translation adjustments Pension and other postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2020 $ (18.0) $ 63.4 $ (4.1) $ 41.3 Other comprehensive (loss) income before (21.2) (0.1) (0.7) (22.0) Amounts reclassified from accumulated other — (4.3) 3.4 (0.9) Income tax benefit (expense) — 1.1 (0.7) 0.4 Net current period other comprehensive (loss) (21.2) (3.3) 2.0 (22.5) Noncontrolling interest 1.0 — — 1.0 Net current period comprehensive (loss) income, (20.2) (3.3) 2.0 (21.5) Balance at June 30, 2021 $ (38.2) $ 60.1 $ (2.1) $ 19.8 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: June 30, 2022 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 283.3 $ 281.5 $ 1.8 $ — Cash and cash equivalents measured at net asset value 22.0 — — — Restricted cash 0.7 0.7 — — Short-term investments 30.6 — 30.6 — Interest rate swap contract 3.3 — 3.3 — Foreign currency forward contracts 3.4 — 3.4 — Total assets $ 343.3 $ 282.2 $ 39.1 $ — Liabilities: Foreign currency forward contracts $ 2.5 $ — $ 2.5 $ — Total liabilities $ 2.5 $ — $ 2.5 $ — December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 257.1 $ 244.8 $ 12.3 $ — Restricted cash 0.8 0.8 — — Short-term investments 56.9 — 56.9 — Foreign currency forward contracts 5.6 — 5.6 — Total assets $ 320.4 $ 245.6 $ 74.8 $ — Liabilities: Foreign currency forward contracts $ 1.0 $ — $ 1.0 $ — Total liabilities $ 1.0 $ — $ 1.0 $ — |
Derivatives Instruments and H_2
Derivatives Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Not Designated as Hedging Instruments | The following table presents the impact of derivative instruments not designated as hedging instruments for the three and six months ended June 30, 2022 and 2021, respectively, and the related location within the Consolidated Statements of Income: Amount of gain or (loss) recognized in income Three Months Ended Six Months Ended Derivatives not designated as hedging instruments: Location of gain or (loss) recognized in income 2022 2021 2022 2021 Foreign currency forward contracts Other expense, net $ (6.0) $ (0.9) $ (7.0) $ (0.7) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||
May 31, 2022 | Aug. 20, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Acquisitions, net of cash acquired | $ 152.3 | $ (0.1) | ||
Cash acquired from acquisition | 0.2 | |||
Spinea | ||||
Business Acquisition [Line Items] | ||||
Revenue reported by acquired entity | $ 40 | |||
Acquisitions, net of cash acquired | 152.3 | |||
Cash acquired from acquisition | $ 0.2 | |||
IMS | ||||
Business Acquisition [Line Items] | ||||
Revenue reported by acquired entity | $ 6 | |||
Total purchase price for this acquisition | $ 7.7 | |||
Contingent consideration, liability | $ 3 |
Acquisitions - Initial Purchase
Acquisitions - Initial Purchase Price Allocation (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Goodwill | $ 1,015.1 | $ 1,022.7 |
Spinea | ||
Assets: | ||
Accounts receivable | 2.1 | |
Inventories | 20.9 | |
Other current assets | 2.9 | |
Property, plant and equipment | 82.6 | |
Goodwill | 39 | |
Other intangible assets | 31.7 | |
Total assets acquired | 179.2 | |
Liabilities: | ||
Accounts payable, trade | 7.4 | |
Salaries, wages and benefits | 1.4 | |
Other current liabilities | 1.2 | |
Short-term debt | 0.1 | |
Long-term debt | 0.2 | |
Deferred income taxes | 1 | |
Other non-current liabilities | 15.6 | |
Total liabilities assumed | 26.9 | |
Net assets acquired | $ 152.3 |
Acquisitions - Preliminary Purc
Acquisitions - Preliminary Purchase Price Allocation of Identifiable Intangible Assets Acquired (Details) - Spinea $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 31.7 |
Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 8.2 |
Weighted - Average Life | 20 years |
Technology and know-how | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 6.1 |
Weighted - Average Life | 6 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 17.2 |
Weighted - Average Life | 17 years |
Capitalized software | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 0.2 |
Weighted - Average Life | 2 years |
Acquisitions - Final Purchase P
Acquisitions - Final Purchase Price Allocation (Details) - IMS $ in Millions | Jun. 30, 2022 USD ($) |
Business Acquisition [Line Items] | |
Total assets acquired | $ 9.8 |
Total liabilities assumed | 2.1 |
Net assets acquired | $ 7.7 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,153.7 | $ 1,062.9 | $ 2,278.3 | $ 2,088.3 |
Revenue Benchmark | Customer Concentration Risk | Original equipment manufacturers | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage (as a percent) | 60% | 61% | ||
Revenue Benchmark | Customer Concentration Risk | Distribution/end users | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage (as a percent) | 40% | 39% | ||
Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 543.6 | 494.2 | $ 1,084 | $ 998.7 |
Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 610.1 | 568.7 | 1,194.3 | 1,089.6 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 500.2 | 439 | 989 | 868.1 |
United States | Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 270.3 | 237.4 | 532.5 | 480.3 |
United States | Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 229.9 | 201.6 | 456.5 | 387.8 |
Americas excluding the United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 128.3 | 101.4 | 241.5 | 193.4 |
Americas excluding the United States | Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 63.7 | 52.3 | 121.8 | 101.1 |
Americas excluding the United States | Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64.6 | 49.1 | 119.7 | 92.3 |
Europe / Middle East / Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 259.9 | 261.5 | 524.9 | 515.8 |
Europe / Middle East / Africa | Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 118.1 | 124.3 | 247.5 | 251.4 |
Europe / Middle East / Africa | Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 141.8 | 137.2 | 277.4 | 264.4 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 154.9 | 170.6 | 306.3 | 329.3 |
China | Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 31.2 | 32.2 | 61.9 | 66.6 |
China | Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 123.7 | 138.4 | 244.4 | 262.7 |
Asia-Pacific excluding China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 110.4 | 90.4 | 216.6 | 181.7 |
Asia-Pacific excluding China | Mobile | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 60.3 | 48 | 120.3 | 99.3 |
Asia-Pacific excluding China | Process | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 50.1 | $ 42.4 | $ 96.3 | $ 82.4 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Amount of revenue for remaining performance obligations | $ 245,500,000 | |
Impairment losses | $ 0 | $ 0 |
Revenue Benchmark | Customer Concentration Risk | U.S. Government | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage (as a percent) | 6% | 7% |
Revenue Benchmark | Customer Concentration Risk | Service Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage (as a percent) | 4% | 4% |
Revenue Benchmark | Customer Concentration Risk | Transferred Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage (as a percent) | 9% | 9% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 104.5 | $ 110.9 |
Additional unbilled revenue recognized | 201.5 | 383 |
Less: amounts billed to customers | (198.7) | (389.4) |
Ending balance | $ 107.3 | $ 104.5 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,153.7 | $ 1,062.9 | $ 2,278.3 | $ 2,088.3 |
Total EBITDA, for reportable segments | 232.6 | 208.5 | 463.3 | 419.1 |
Unallocated corporate expense | 149.6 | 136.6 | 309.7 | 277.9 |
Corporate pension and other postretirement benefit related expense | (11.6) | (3.5) | (14.2) | (4.4) |
Acquisition-related gain | 0 | 0 | 0 | 0.6 |
Depreciation and amortization | (40.7) | (42.2) | (82.1) | (85.2) |
Interest expense | (18.3) | (15.3) | (32.6) | (30.2) |
Interest income | 1 | 0.7 | 1.6 | 1.2 |
Mobile | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 543.6 | 494.2 | 1,084 | 998.7 |
Total EBITDA, for reportable segments | 69.1 | 67.3 | 144.2 | 146.9 |
Process | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 610.1 | 568.7 | 1,194.3 | 1,089.6 |
Total EBITDA, for reportable segments | 163.5 | 141.2 | 319.1 | 272.2 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expense | $ (13.4) | $ (11.6) | $ (26.3) | $ (23.2) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 44 | $ 29.4 | $ 82.2 | $ 54.7 |
Effective tax rate (as a percent) | 29.40% | 21.50% | 26.50% | 19.70% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (as a percent) | 29.40% | 21.50% | 26.50% | 19.70% |
Earnings Per Share - Denominato
Earnings Per Share - Denominator of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income attributable to The Timken Company | $ 105 | $ 104.8 | $ 223.2 | $ 218.1 |
Less: undistributed earnings allocated to nonvested stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders for basic and diluted earnings per share | $ 105 | $ 104.8 | $ 223.2 | $ 218.1 |
Denominator: | ||||
Weighted-average number of shares outstanding - basic (in shares) | 73,660,410 | 76,122,257 | 74,234,300 | 75,969,569 |
Effect of dilutive securities: | ||||
Stock options and awards - based on the treasury stock method (in shares) | 522,383 | 1,131,900 | 642,948 | 1,288,192 |
Weighted-average number of shares outstanding, assuming dilution of stock options and awards (in shares) | 74,182,793 | 77,254,157 | 74,877,248 | 77,257,761 |
Basic earnings per share (in dollars per share) | $ 1.43 | $ 1.38 | $ 3.01 | $ 2.87 |
Diluted earnings per share (in dollars per share) | $ 1.42 | $ 1.36 | $ 2.98 | $ 2.82 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive stock options outstanding (in shares) | 0 | 0 | 0 | 0 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventories, net: | ||
Manufacturing supplies | $ 39.6 | $ 38 |
Raw materials | 121.9 | 121.8 |
Work in process | 469.4 | 418.4 |
Finished products | 594.9 | 527.8 |
Subtotal | 1,225.8 | 1,106 |
Allowance for obsolete and surplus inventory | (67.8) | (63.3) |
Total inventories, net | $ 1,158 | $ 1,042.7 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Proportion of inventories valued by FIFO method (as a percent) | 58% | |
Proportion of inventories valued by LIFO method (as a percent) | 42% | |
Inventory, LIFO reserve | $ 216.7 | $ 199.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Value of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,022.7 |
Acquisitions | 39 |
Foreign currency translation adjustments and other changes | (46.6) |
Ending balance | 1,015.1 |
Mobile Industries | |
Goodwill [Roll Forward] | |
Beginning balance | 371.7 |
Acquisitions | 0 |
Foreign currency translation adjustments and other changes | (19.4) |
Ending balance | 352.3 |
Process Industries | |
Goodwill [Roll Forward] | |
Beginning balance | 651 |
Acquisitions | 39 |
Foreign currency translation adjustments and other changes | (27.2) |
Ending balance | $ 662.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill [Line Items] | ||
Acquisitions | $ 39 | |
Amortization expense for intangible assets | 25.3 | $ 28.2 |
Amortization expense for intangible assets acquired as part of a business combination | 21.5 | $ 24.3 |
Future amortization expense 2022 | 55.3 | |
Future amortization expense 2023 | 46.6 | |
Future amortization expense 2024 | 44.7 | |
Future amortization expense 2025 | 42.9 | |
Future amortization expense 2026 | 41.4 | |
Spinea | ||
Goodwill [Line Items] | ||
Acquisitions | $ 39 | |
Goodwill, expected tax deductible percent (as a percent) | 100% |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Intangible assets subject to amortization: | ||
Gross Carrying Amount | $ 1,088.3 | $ 1,087.8 |
Accumulated Amortization | (564.9) | (550.4) |
Net Carrying Amount | 523.4 | 537.4 |
Intangible assets not subject to amortization: | ||
Intangible assets not subject to amortization | 124.7 | 131.4 |
Gross intangible assets (excluding goodwill) | 1,213 | 1,219.2 |
Accumulated Amortization | (564.9) | (550.4) |
Total intangible assets, net carrying amount | 648.1 | 668.8 |
Trade names | ||
Intangible assets not subject to amortization: | ||
Intangible assets not subject to amortization | 116 | 122.7 |
FAA air agency certificates | ||
Intangible assets not subject to amortization: | ||
Intangible assets not subject to amortization | 8.7 | 8.7 |
Customer relationships | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 514.9 | 518.1 |
Accumulated Amortization | (197.7) | (189.3) |
Net Carrying Amount | 317.2 | 328.8 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (197.7) | (189.3) |
Technology and know-how | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 265.9 | 270.7 |
Accumulated Amortization | (92) | (86.6) |
Net Carrying Amount | 173.9 | 184.1 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (92) | (86.6) |
Trade names | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 20.6 | 14.3 |
Accumulated Amortization | (8.6) | (9.6) |
Net Carrying Amount | 12 | 4.7 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (8.6) | (9.6) |
Capitalized software | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 283.7 | 280 |
Accumulated Amortization | (264.1) | (261.3) |
Net Carrying Amount | 19.6 | 18.7 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (264.1) | (261.3) |
Other | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 3.2 | 4.7 |
Accumulated Amortization | (2.5) | (3.6) |
Net Carrying Amount | 0.7 | 1.1 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | $ (2.5) | $ (3.6) |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | |||
Sales rebates | $ 56.1 | $ 70.3 | |
Freight and duties | 25.5 | 25.5 | |
Operating lease liabilities | 24.2 | 26.2 | |
Product warranty | 17.2 | 11.7 | |
Professional fees | 12.6 | 10.8 | |
Restructuring | 5.5 | 7 | $ 8 |
Taxes other than income and payroll taxes | 19.2 | 16 | |
Interest | 14.2 | 10.8 | |
Other | 95.4 | 72.3 | |
Total other current liabilities | $ 269.9 | $ 250.6 |
Financing Arrangements - Short
Financing Arrangements - Short Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 70.3 | $ 42.6 |
Foreign Subsidiary | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 70.3 | $ 42.6 |
Line of credit stated variable interest rate, low range (as a percent) | 0.50% | 0.50% |
Line of credit stated variable interest rate, high range (as a percent) | 2.10% | 2% |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) € in Millions | 6 Months Ended | ||||||
Sep. 15, 2020 EUR (€) | Sep. 11, 2018 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 28, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 25, 2019 covenant | |
Short-term Debt [Line Items] | |||||||
Short-term debt | $ 70,300,000 | $ 42,600,000 | |||||
Borrowings guarantees | 43,700,000 | ||||||
Fair value of amount outstanding | 1,745,600,000 | 1,422,300,000 | |||||
Proceeds from long-term debt | 684,500,000 | $ 135,000,000 | |||||
Foreign Subsidiary | |||||||
Short-term Debt [Line Items] | |||||||
Maximum borrowing capacity under line of credit | 254,400,000 | ||||||
Short-term debt | 70,300,000 | 42,600,000 | |||||
Borrowings guarantees | 200,000 | ||||||
Line of credit facility, remaining borrowing capacity | 183,900,000 | ||||||
Line of Credit Accounts Receivable | |||||||
Short-term Debt [Line Items] | |||||||
Maximum borrowing capacity under line of credit | 100,000,000 | ||||||
Current borrowing capacity | 0 | ||||||
Senior Unsecured Notes - Variable Rate | |||||||
Short-term Debt [Line Items] | |||||||
Maximum borrowing capacity under line of credit | 650,000,000 | ||||||
Line of credit facility, remaining borrowing capacity | 641,700,000 | ||||||
Fair value of amount outstanding | 8,300,000 | 9,000,000 | |||||
Number of financial covenant | covenant | 2 | ||||||
Senior Unsecured Notes -4.125% | |||||||
Short-term Debt [Line Items] | |||||||
Fair value of amount outstanding | $ 341,200,000 | $ 0 | |||||
Aggregate principal amount | $ 350,000,000 | ||||||
Debt instrument, interest rate, stated percentage (as a percent) | 4.125% | 4.125% | |||||
Proceeds from long-term debt | € | € 6.5 | ||||||
Term Loan - Variable Rate | |||||||
Short-term Debt [Line Items] | |||||||
Fair value of amount outstanding | $ 316,900,000 | $ 321,100,000 | |||||
Proceeds from long-term debt | $ 350,000,000 |
Financing Arrangements - Long T
Financing Arrangements - Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,745.6 | $ 1,422.3 |
Less: Current maturities | 11.3 | 11.2 |
Long-term debt | $ 1,734.3 | $ 1,411.1 |
Senior Unsecured Notes - 3.875% | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage (as a percent) | 3.875% | 3.875% |
Euro Senior Unsecured Notes - 2.02% | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage (as a percent) | 2.02% | 2.02% |
Series A Medium Term Note | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage (as a percent) | 6.74% | 6.74% |
Series A Medium Term Note | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage (as a percent) | 7.76% | 7.76% |
Senior Unsecured Notes - Variable Rate | ||
Debt Instrument [Line Items] | ||
Total debt | $ 8.3 | $ 9 |
Debt instrument, interest rate, stated percentage (as a percent) | 1.09% | |
Term Loan - Variable Rate | ||
Debt Instrument [Line Items] | ||
Total debt | $ 316.9 | $ 321.1 |
Long-term debt, percentage bearing variable interest, percentage rate (as a percent) | 2.79% | 1.23% |
Senior Unsecured Notes - 3.875% | ||
Debt Instrument [Line Items] | ||
Total debt | $ 349.7 | $ 349.5 |
Euro Senior Unsecured Notes - 2.02% | ||
Debt Instrument [Line Items] | ||
Total debt | 157 | 170.3 |
Senior Unsecured Notes - 4.5% | ||
Debt Instrument [Line Items] | ||
Total debt | $ 397 | $ 396.9 |
Debt instrument, interest rate, stated percentage (as a percent) | 4.50% | 4.50% |
Series A Medium Term Note | ||
Debt Instrument [Line Items] | ||
Total debt | $ 154.7 | $ 154.7 |
Senior Unsecured Notes -4.125% | ||
Debt Instrument [Line Items] | ||
Total debt | $ 341.2 | $ 0 |
Debt instrument, interest rate, stated percentage (as a percent) | 4.125% | 4.125% |
Fixed Rate Bank Loan (BEKA) | ||
Debt Instrument [Line Items] | ||
Total debt | $ 13.9 | $ 15.8 |
Debt instrument, interest rate, stated percentage (as a percent) | 2.15% | 2.15% |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 6.9 | $ 5 |
Euro Member Countries, Euro | Senior Unsecured Notes - Variable Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage (as a percent) | 1% | 1% |
Financing Arrangements - Maturi
Financing Arrangements - Maturities (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Total finance lease liabilities | $ 3.4 |
2022 | 6.3 |
2023 | 318.3 |
2024 | 360 |
2025 | 1.7 |
2026 | 11.5 |
2027 | 183.2 |
Thereafter | $ 864.6 |
Contingencies - Narratives (Det
Contingencies - Narratives (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 5.5 | $ 6 | |
Standard product warranty accrual | $ 17.2 | $ 11.7 | $ 9.4 |
Contingencies - Schedule of Pro
Contingencies - Schedule of Product Warranty (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance, January 1 | $ 11.7 | $ 9.4 |
Expense | 7.6 | 10.1 |
Payments | (2.1) | (7.8) |
Ending balance | $ 17.2 | $ 11.7 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 2,355 | $ 2,250.1 | $ 2,377.7 | $ 2,225.2 |
Net Income | 105.6 | 107.2 | 227.5 | 223.2 |
Foreign currency translation adjustments | (113.1) | 23.2 | (135.7) | (21.2) |
Pension and other postretirement liability adjustments (net of income tax benefits) | (1.4) | (1.7) | (2.9) | (3.3) |
Change in fair value of derivative financial instruments, net of reclassifications | 2.2 | (0.2) | 4.2 | 2 |
Dividends | (22.9) | (22.9) | (46.4) | (46.7) |
Stock-based compensation expense | 8.5 | 6 | 15.6 | 12.5 |
Stock purchased at fair market value | (44.3) | (144.3) | (26.3) | |
Stock option exercise activity | 0.2 | 11.3 | 1.6 | 25.4 |
Payments related to tax withholding for stock-based compensation | (0.6) | (5.7) | (8.1) | (23.5) |
Ending Balance | 2,289.2 | 2,367.3 | 2,289.2 | 2,367.3 |
Pension and other postretirement liability adjustment, tax benefit | $ 0.5 | $ 0.5 | $ 1 | $ 1.1 |
Dividends (in dollars per shares) | $ 0.31 | $ 0.30 | $ 0.61 | $ 0.59 |
Stated Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 40.7 | $ 40.7 | $ 40.7 | $ 40.7 |
Ending Balance | 40.7 | 40.7 | 40.7 | 40.7 |
Other Paid-In Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 795.4 | 761.3 | 786.9 | 740.7 |
Stock-based compensation expense | 8.5 | 6 | 15.6 | 12.5 |
Stock option exercise activity | 0.2 | 11.3 | 1.6 | 25.4 |
Ending Balance | 804.1 | 778.6 | 804.1 | 778.6 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 1,711.1 | 1,429 | 1,616.4 | 1,339.5 |
Net Income | 105 | 104.8 | 223.2 | 218.1 |
Dividends | (22.9) | (22.9) | (46.4) | (46.7) |
Ending Balance | 1,793.2 | 1,510.9 | 1,793.2 | 1,510.9 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (42.5) | (2.1) | (23) | 41.3 |
Foreign currency translation adjustments | (114.2) | 23.8 | (134.2) | (20.2) |
Pension and other postretirement liability adjustments (net of income tax benefits) | (1.4) | (1.7) | (2.9) | (3.3) |
Change in fair value of derivative financial instruments, net of reclassifications | 2.2 | (0.2) | 4.2 | 2 |
Ending Balance | (155.9) | 19.8 | (155.9) | 19.8 |
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (233.6) | (53.4) | (126.1) | (9.3) |
Stock purchased at fair market value | (44.3) | (144.3) | (26.3) | |
Payments related to tax withholding for stock-based compensation | (0.6) | (5.7) | (8.1) | (23.5) |
Ending Balance | (278.5) | (59.1) | (278.5) | (59.1) |
Non controlling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 83.9 | 74.6 | 82.8 | 72.3 |
Net Income | 0.6 | 2.4 | 4.3 | 5.1 |
Foreign currency translation adjustments | 1.1 | (0.6) | (1.5) | (1) |
Ending Balance | $ 85.6 | $ 76.4 | $ 85.6 | $ 76.4 |
Impairment and Restructuring _3
Impairment and Restructuring Charges - Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 8.8 | $ 1.1 | $ 8.8 | $ 4.5 |
Severance and related benefit costs | 1.1 | 0.1 | 1.4 | 0.6 |
Exit costs | 0.1 | 0.1 | 0.8 | 0.2 |
Total | 10 | 1.3 | 11 | 5.3 |
Mobile Industries | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 8.8 | 1 | 8.8 | 1.1 |
Severance and related benefit costs | 0.7 | 0 | 1.1 | 0 |
Exit costs | 0.1 | 0.1 | 0.8 | 0.2 |
Total | 9.6 | 1.1 | 10.7 | 1.3 |
Process Industries | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 0 | 0.1 | 0 | 3.4 |
Severance and related benefit costs | 0.4 | 0.1 | 0.3 | 0.6 |
Exit costs | 0 | 0 | 0 | 0 |
Total | $ 0.4 | $ 0.2 | $ 0.3 | $ 4 |
Impairment and Restructuring _4
Impairment and Restructuring Charges - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) employee | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) employee | Jun. 30, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 8.8 | $ 1.1 | $ 8.8 | $ 4.5 |
Impairment and restructuring charges | 10 | 1.3 | 11 | 5.3 |
Severance and related benefit costs | 1.1 | 0.1 | 1.4 | 0.6 |
Exit costs | 0.1 | 0.1 | 0.8 | 0.2 |
Mobile Industries | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 8.8 | 1 | 8.8 | 1.1 |
Impairment and restructuring charges | 9.6 | 1.1 | 10.7 | 1.3 |
Severance and related benefit costs | 0.7 | 0 | 1.1 | 0 |
Exit costs | 0.1 | 0.1 | 0.8 | 0.2 |
Process Industries | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 0 | 0.1 | 0 | 3.4 |
Impairment and restructuring charges | 0.4 | 0.2 | 0.3 | 4 |
Severance and related benefit costs | 0.4 | 0.1 | 0.3 | 0.6 |
Exit costs | $ 0 | 0 | 0 | 0 |
Process Industries | Indianapolis, Indiana | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and related benefit costs | 0.3 | 0.6 | ||
Restructuring charges | $ 12 | |||
Number of employees expected to be hired | employee | 130 | 130 | ||
Facility Closing | Mobile Industries | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 8.8 | |||
Facility Closing | Mobile Industries | Villa Carcina, Italy | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 1 | |||
Number of employees expected to be affected | employee | 110 | |||
Severance and related benefit costs | 0.4 | $ 0.8 | ||
Exit costs | $ 0.4 | 1 | ||
Restructuring charges | 8.3 | |||
Facility Closing | Mobile Industries | Villa Carcina, Italy | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment and restructuring charges | 9 | |||
Facility Closing | Mobile Industries | Villa Carcina, Italy | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment and restructuring charges | $ 11 | |||
Facility Closing | Process Industries | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 3.3 | |||
Facility Closing | Process Industries | Indianapolis, Indiana | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees expected to be affected | employee | 240 | |||
Facility Closing | Process Industries | Indianapolis, Indiana | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment and restructuring charges | $ 11 | |||
Facility Closing | Process Industries | Indianapolis, Indiana | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment and restructuring charges | $ 14 |
Impairment and Restructuring _5
Impairment and Restructuring Charges - Consolidated Restructuring Accrual (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 7 | $ 8 |
Expense | 2.2 | 4.4 |
Payments | (3.7) | (5.4) |
Ending Balance | $ 5.5 | $ 7 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Components of net periodic benefit cost (credit): | ||||
Recognition of net actuarial losses | $ 11.6 | $ 3.5 | $ 14.2 | $ 4.4 |
Pension Plan | ||||
Components of net periodic benefit cost (credit): | ||||
Service cost | 2.2 | 2.8 | 4.5 | 5.8 |
Interest cost | 5.5 | 5.6 | 11.1 | 11.1 |
Expected return on plan assets | (7.4) | (8.7) | (15.1) | (17.3) |
Amortization of prior service cost | 0.4 | 0.4 | 0.7 | 0.7 |
Recognition of net actuarial losses | 11.6 | 3.5 | 14.2 | 4.4 |
Net periodic benefit cost (credit) | 12.3 | 3.6 | 15.4 | 4.7 |
Pension Plan | U.S. Plans | ||||
Components of net periodic benefit cost (credit): | ||||
Service cost | 1.8 | 2.3 | 3.7 | 4.8 |
Interest cost | 4.1 | 4.5 | 8.2 | 8.9 |
Expected return on plan assets | (5) | (6.1) | (10.2) | (12.2) |
Amortization of prior service cost | 0.3 | 0.3 | 0.6 | 0.6 |
Recognition of net actuarial losses | 11.6 | 3.5 | 14.2 | 4.4 |
Net periodic benefit cost (credit) | 12.8 | 4.5 | 16.5 | 6.5 |
Pension Plan | International Plans | ||||
Components of net periodic benefit cost (credit): | ||||
Service cost | 0.4 | 0.5 | 0.8 | 1 |
Interest cost | 1.4 | 1.1 | 2.9 | 2.2 |
Expected return on plan assets | (2.4) | (2.6) | (4.9) | (5.1) |
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Recognition of net actuarial losses | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit) | $ (0.5) | $ (0.9) | $ (1.1) | $ (1.8) |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of net actuarial losses | $ 11.6 | $ 3.5 | $ 14.2 | $ 4.4 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of net actuarial losses | 11.6 | 3.5 | 14.2 | 4.4 |
U.S. Plans | Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of net actuarial losses | $ 11.6 | $ 3.5 | $ 14.2 | $ 4.4 |
Other Postretirement Benefit _3
Other Postretirement Benefit Plans (Details) - Postretirement Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net periodic benefit credit: | ||||
Service cost | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Interest cost | 0.3 | 0.3 | 0.7 | 0.7 |
Amortization of prior service credit | (2.5) | (2.5) | (5) | (5) |
Net periodic benefit cost (credit) | $ (2.1) | $ (2.1) | $ (4.2) | $ (4.2) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 2,355 | $ 2,250.1 | $ 2,377.7 | $ 2,225.2 |
Other comprehensive (loss) income, net of tax | (112.3) | 21.3 | (134.4) | (22.5) |
Ending Balance | 2,289.2 | 2,367.3 | 2,289.2 | 2,367.3 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (42.5) | (2.1) | (23) | 41.3 |
Other comprehensive (loss) income before reclassifications and income taxes | (109) | 21 | (128.2) | (22) |
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes | (2.8) | (0.4) | (5.9) | (0.9) |
Income tax (expense) benefit | (0.5) | 0.7 | (0.3) | 0.4 |
Other comprehensive (loss) income, net of tax | (112.3) | 21.3 | (134.4) | (22.5) |
Noncontrolling interest | (1.1) | 0.6 | 1.5 | 1 |
Net current period other comprehensive (loss) income, net of income taxes and noncontrolling interest | (113.4) | 21.9 | (132.9) | (21.5) |
Ending Balance | (155.9) | 19.8 | (155.9) | 19.8 |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (100.3) | (62) | (80.3) | (18) |
Other comprehensive (loss) income before reclassifications and income taxes | (113.1) | 23.2 | (135.7) | (21.2) |
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes | 0 | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Other comprehensive (loss) income, net of tax | (113.1) | 23.2 | (135.7) | (21.2) |
Noncontrolling interest | (1.1) | 0.6 | 1.5 | 1 |
Net current period other comprehensive (loss) income, net of income taxes and noncontrolling interest | (114.2) | 23.8 | (134.2) | (20.2) |
Ending Balance | (214.5) | (38.2) | (214.5) | (38.2) |
Pension and other postretirement liability adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 55.1 | 61.8 | 56.6 | 63.4 |
Other comprehensive (loss) income before reclassifications and income taxes | 0.2 | (0.1) | 0.4 | (0.1) |
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes | (2.1) | (2.1) | (4.3) | (4.3) |
Income tax (expense) benefit | 0.5 | 0.5 | 1 | 1.1 |
Other comprehensive (loss) income, net of tax | (1.4) | (1.7) | (2.9) | (3.3) |
Noncontrolling interest | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income, net of income taxes and noncontrolling interest | (1.4) | (1.7) | (2.9) | (3.3) |
Ending Balance | 53.7 | 60.1 | 53.7 | 60.1 |
Change in fair value of derivative financial instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 2.7 | (1.9) | 0.7 | (4.1) |
Other comprehensive (loss) income before reclassifications and income taxes | 3.9 | (2.1) | 7.1 | (0.7) |
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes | (0.7) | 1.7 | (1.6) | 3.4 |
Income tax (expense) benefit | (1) | 0.2 | (1.3) | (0.7) |
Other comprehensive (loss) income, net of tax | 2.2 | (0.2) | 4.2 | 2 |
Noncontrolling interest | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income, net of income taxes and noncontrolling interest | 2.2 | (0.2) | 4.2 | 2 |
Ending Balance | $ 4.9 | $ (2.1) | $ 4.9 | $ (2.1) |
Fair Value - Fair Value on Recu
Fair Value - Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | $ 22 | |
Restricted cash | 0.7 | $ 0.8 |
Fair Value, Recurring | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 283.3 | 257.1 |
Restricted cash | 0.7 | 0.8 |
Short-term investments | 30.6 | 56.9 |
Interest rate swap contract | 3.3 | |
Foreign currency forward contracts | 3.4 | 5.6 |
Total assets | 343.3 | 320.4 |
Foreign currency forward contracts | 2.5 | 1 |
Total liabilities | 2.5 | 1 |
Fair Value, Recurring | Level 1 | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 281.5 | 244.8 |
Restricted cash | 0.7 | 0.8 |
Short-term investments | 0 | 0 |
Interest rate swap contract | 0 | |
Foreign currency forward contracts | 0 | 0 |
Total assets | 282.2 | 245.6 |
Foreign currency forward contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 1.8 | 12.3 |
Restricted cash | 0 | 0 |
Short-term investments | 30.6 | 56.9 |
Interest rate swap contract | 3.3 | |
Foreign currency forward contracts | 3.4 | 5.6 |
Total assets | 39.1 | 74.8 |
Foreign currency forward contracts | 2.5 | 1 |
Total liabilities | 2.5 | 1 |
Fair Value, Recurring | Level 3 | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Interest rate swap contract | 0 | |
Foreign currency forward contracts | 0 | 0 |
Total assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant and equipment, carrying value | $ 1,096.1 | $ 1,096.1 | $ 1,055.3 | |
Impairment charges | 8.8 | $ 4.5 | ||
Long-term fixed-rate debt, fair value | 1,386.6 | 1,386.6 | 1,171.1 | |
Long-term fixed-rate debt, carrying value | 1,414.1 | 1,414.1 | $ 1,087.5 | |
Russia | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, plant and equipment, carrying value | 15.9 | 15.9 | ||
Property, plant and equipment, fair value | 7.1 | $ 7.1 | ||
Impairment charges | $ 8.8 |
Derivatives Instruments and H_3
Derivatives Instruments and Hedging Activities - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 15, 2020 EUR (€) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Sep. 08, 2020 USD ($) | |
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | $ 350 | $ 100 | |||||
Proceeds from long-term debt | $ 684.5 | $ 135 | |||||
Derivative instrument term | 10 years | 10 years | |||||
Derivative, notional amount | $ 434.4 | $ 434.4 | $ 300.8 | ||||
Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivative instrument term | 18 months | ||||||
Derivative, notional amount | 76.7 | $ 76.7 | 80 | ||||
Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | 357.7 | 357.7 | $ 220.8 | ||||
2027 Notes | |||||||
Derivative [Line Items] | |||||||
Proceeds from long-term debt | € | € 150 | ||||||
Senior Unsecured Notes -4.125% | |||||||
Derivative [Line Items] | |||||||
Proceeds from long-term debt | € | 6.5 | ||||||
Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | € | € 54.5 | ||||||
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes | $ 3.2 | $ 4.8 |
Derivatives Instruments and H_4
Derivatives Instruments and Hedging Activities - Cash Flow Hedging Strategy (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Derivatives not designated as hedging instruments: | $ (6) | $ (0.9) | $ (7) | $ (0.7) |