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As Of Filer Filing For·On·As Docs:Size 8/03/20 Timken Co. 10-Q 6/30/20 79:11M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.31M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 24K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 24K 4: EX-32 Certification -- §906 - SOA'02 HTML 22K 11: R1 Cover Document HTML 71K 12: R2 Consolidated Statements of Income (Unaudited) HTML 62K 13: R3 Consolidated Statements of Comprehensive Income HTML 48K (Unaudited) 14: R4 Consolidated Balance Sheets HTML 144K 15: R5 Consolidated Balance Sheets (Parenthetical) HTML 42K 16: R6 Consolidated Statements of Cash Flows (Unaudited) HTML 107K 17: R7 Basis of Presentation HTML 23K 18: R8 Significant Accounting Policies HTML 36K 19: R9 Acquisitions (Notes) HTML 68K 20: R10 Revenue (Notes) HTML 78K 21: R11 Segment Information HTML 68K 22: R12 Earnings Per Share HTML 58K 23: R13 Inventories HTML 36K 24: R14 Financing Arrangements HTML 59K 25: R15 Goodwill and Other Intangible Assets HTML 76K 26: R16 Contingencies (Notes) HTML 27K 27: R17 Equity HTML 188K 28: R18 Impairment and Restructuring (Notes) HTML 29K 29: R19 Retirement Benefit Plans HTML 77K 30: R20 Postretirement Benefit Plans HTML 47K 31: R21 Accumulated Other Comprehensive Income HTML 127K 32: R22 Fair Value HTML 80K 33: R23 Derivatives and Hedging Activities (Notes) HTML 40K 34: R24 Acquisitions (Tables) HTML 64K 35: R25 Revenue (Tables) HTML 71K 36: R26 Segment Information (Tables) HTML 68K 37: R27 Income Taxes (Tables) HTML 49K 38: R28 Earnings Per Share (Tables) HTML 58K 39: R29 Inventories (Tables) HTML 35K 40: R30 Financing Arrangements (Tables) HTML 52K 41: R31 Goodwill and Other Intangible Assets (Tables) HTML 76K 42: R32 Equity (Tables) HTML 189K 43: R33 Impairment and Restructuring (Tables) HTML 52K 44: R34 Retirement Benefit Plans (Tables) HTML 51K 45: R35 Postretirement Benefit Plans (Tables) HTML 49K 46: R36 Accumulated Other Comprehensive Income (Tables) HTML 72K 47: R37 Fair Value (Tables) HTML 71K 48: R38 Derivatives and Hedging Activities (Table) HTML 33K 49: R39 Recent Accounting Pronouncements Table (Details) HTML 128K 50: R40 Acquisitions (Details) HTML 157K 51: R41 Revenue Disaggregation of Revenue (Details) HTML 72K 52: R42 Segment Information (Details) HTML 48K 53: R43 Income Taxes (Details Textual) HTML 33K 54: R44 Earnings Per Share (Details) HTML 44K 55: R45 Earnings Per Share (Details Textual) HTML 22K 56: R46 Inventories (Details) HTML 35K 57: R47 Inventories (Details Textual) HTML 23K 58: R48 Financing Arrangements (Details) HTML 66K 59: R49 Goodwill and Other Intangible Assets (Details) HTML 34K 60: R50 Financing Arrangements (Details 1) HTML 64K 61: R51 Goodwill and Other Intangible Assets (Details 1) HTML 53K 62: R52 Financing Arrangements (Details Textual) HTML 158K 63: R53 Goodwill and Other Intangible Assets (Details HTML 49K Textual) 64: R54 Contingencies (Details) HTML 24K 65: R55 Equity (Details) HTML 111K 66: R56 Equity (Details Textual) HTML 33K 67: R57 Impairment and Restructuring (Details) HTML 84K 68: R58 Retirement Benefit Plans (Details) HTML 48K 69: R59 Postretirement Benefit Plans (Details) HTML 46K 70: R60 Accumulated Other Comprehensive Income (Details) HTML 70K 71: R61 Fair Value (Details) HTML 57K 72: R62 Fair Value (Details Textual) HTML 31K 73: R63 Derivatives and Hedging Activities (Details) HTML 25K 74: R64 Derivatives and Hedging Activities Derivatives HTML 26K (Details) 75: R9999 Uncategorized Items - tkr10-q63020.htm HTML 21K 77: XML IDEA XML File -- Filing Summary XML 141K 10: XML XBRL Instance -- tkr10-q63020_htm XML 2.89M 76: EXCEL IDEA Workbook of Financial Reports XLSX 99K 6: EX-101.CAL XBRL Calculations -- tkr-20200630_cal XML 200K 7: EX-101.DEF XBRL Definitions -- tkr-20200630_def XML 1.09M 8: EX-101.LAB XBRL Labels -- tkr-20200630_lab XML 1.73M 9: EX-101.PRE XBRL Presentations -- tkr-20200630_pre XML 1.27M 5: EX-101.SCH XBRL Schema -- tkr-20200630 XSD 144K 78: JSON XBRL Instance as JSON Data -- MetaLinks 375± 544K 79: ZIP XBRL Zipped Folder -- 0000098362-20-000122-xbrl Zip 634K
Document |
i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Ohio | i 34-0577130 | ||
(State
or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
i 4500 Mount Pleasant Street NW | |||
i North
Canton | i Ohio | i 44720-5450 | |
(Address
of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||
i Common
Shares, without par value | i TKR | i The New York Stock Exchange |
i Large
accelerated filer | ☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller
reporting company | i ☐ | ||
Emerging
growth company | i ☐ |
Class | Outstanding at June
30, 2020 | |||
Common Shares, without par value | i 75,098,267 shares |
PAGE | |||
I. | |||
Item
1. | |||
Item 2. | |||
Item
3. | |||
Item 4. | |||
II. | |||
Item 1. | |||
Item1A. | |||
Item
2. | |||
Item 6. |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||
Net
sales | $ | i 803.5 | $ | i 1,000.0 | $ | i 1,726.9 | $ | i 1,979.7 | |||||||
Cost
of products sold | i 573.2 | i 694.3 | i 1,217.7 | i 1,371.4 | |||||||||||
Gross
Profit | i 230.3 | i 305.7 | i 509.2 | i 608.3 | |||||||||||
Selling,
general and administrative expenses | i 111.8 | i 158.7 | i 265.4 | i 311.4 | |||||||||||
Impairment
and restructuring charges | i 3.1 | i 1.9 | i 6.7 | i 1.9 | |||||||||||
Operating
Income | i 115.4 | i 145.1 | i 237.1 | i 295.0 | |||||||||||
Interest
expense | ( i 18.9 | ) | ( i 19.3 | ) | ( i 36.0 | ) | ( i 37.3 | ) | |||||||
Interest
income | i 0.6 | i 1.1 | i 2.1 | i 2.4 | |||||||||||
Non-service
pension and other postretirement (expense) income | ( i 5.3 | ) | i 0.2 | ( i 1.9 | ) | i 0.3 | |||||||||
Other
income (expense), net | ( i 2.0 | ) | i 1.4 | i 2.1 | i 4.7 | ||||||||||
Income
Before Income Taxes | i 89.8 | i 128.5 | i 203.4 | i 265.1 | |||||||||||
Provision
for income taxes | i 28.0 | i 33.6 | i 57.6 | i 74.9 | |||||||||||
Net
Income | i 61.8 | i 94.9 | i 145.8 | i 190.2 | |||||||||||
Less:
Net income (loss) attributable to noncontrolling interest | ( i 0.1 | ) | i 2.4 | i 3.2 | i 5.8 | ||||||||||
Net
Income Attributable to The Timken Company | $ | i 61.9 | $ | i 92.5 | $ | i 142.6 | $ | i 184.4 | |||||||
Net
Income per Common Share Attributable to The Timken Company Common Shareholders | |||||||||||||||
Basic earnings per share | $ | i 0.82 | $ | i 1.22 | $ | i 1.89 | $ | i 2.43 | |||||||
Diluted
earnings per share | $ | i 0.82 | $ | i 1.20 | $ | i 1.88 | $ | i 2.39 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Net
Income | $ | i 61.8 | $ | i 94.9 | $ | i 145.8 | $ | i 190.2 | |||||||
Other
comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | i 24.5 | i 5.1 | ( i 54.3 | ) | i 0.9 | ||||||||||
Pension
and postretirement liability adjustments | ( i 1.5 | ) | i — | ( i 2.8 | ) | ( i 0.1 | ) | ||||||||
Change
in fair value of marketable securities | i 0.5 | i — | i 0.1 | i — | |||||||||||
Change
in fair value of derivative financial instruments | ( i 2.6 | ) | ( i 0.8 | ) | i 1.6 | ( i 1.4 | ) | ||||||||
Other
comprehensive income (loss), net of tax | i 20.9 | i 4.3 | ( i 55.4 | ) | ( i 0.6 | ) | |||||||||
Comprehensive
Income, net of tax | i 82.7 | i 99.2 | i 90.4 | i 189.6 | |||||||||||
Less:
comprehensive income (loss) attributable to noncontrolling interest | i 1.1 | i 3.1 | ( i 3.1 | ) | i 7.4 | ||||||||||
Comprehensive
Income Attributable to The Timken Company | $ | i 81.6 | $ | i 96.1 | $ | i 93.5 | $ | i 182.2 |
(Unaudited) | |||||||
(Dollars in millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 415.6 | $ | i 209.5 | |||
Restricted
cash | i 0.5 | i 6.7 | |||||
Accounts
receivable, less allowances (2020 – $16.9 million; 2019 – $18.1 million) | i 541.6 | i 545.1 | |||||
Unbilled
receivables | i 126.2 | i 129.2 | |||||
Inventories,
net | i 784.0 | i 842.0 | |||||
Deferred
charges and prepaid expenses | i 33.4 | i 36.7 | |||||
Other
current assets | i 105.6 | i 105.4 | |||||
Total
Current Assets | i 2,006.9 | i 1,874.6 | |||||
Property,
Plant and Equipment, net | i 962.1 | i 989.2 | |||||
Other
Assets | |||||||
Goodwill | i 996.5 | i 993.7 | |||||
Other
intangible assets | i 731.4 | i 758.5 | |||||
Operating
lease assets | i 110.3 | i 114.1 | |||||
Non-current
pension assets | i 7.9 | i 3.4 | |||||
Non-current
other postretirement benefit assets | i — | i 36.6 | |||||
Deferred
income taxes | i 69.7 | i 71.8 | |||||
Other
non-current assets | i 16.2 | i 18.0 | |||||
Total
Other Assets | i 1,932.0 | i 1,996.1 | |||||
Total
Assets | $ | i 4,901.0 | $ | i 4,859.9 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Short-term debt | $ | i 42.9 | $ | i 17.3 | |||
Current
portion of long-term debt | i 18.4 | i 64.7 | |||||
Short-term
operating lease liabilities | i 27.5 | i 28.3 | |||||
Accounts
payable, trade | i 267.3 | i 301.7 | |||||
Salaries,
wages and benefits | i 106.0 | i 134.5 | |||||
Income
taxes payable | i 31.2 | i 17.8 | |||||
Other
current liabilities | i 171.5 | i 172.3 | |||||
Total
Current Liabilities | i 664.8 | i 736.6 | |||||
Non-Current
Liabilities | |||||||
Long-term debt | i 1,730.1 | i 1,648.1 | |||||
Accrued
pension benefits | i 173.3 | i 165.1 | |||||
Accrued
postretirement benefits | i 44.9 | i 31.8 | |||||
Long-term
operating lease liabilities | i 70.2 | i 71.3 | |||||
Deferred
income taxes | i 158.1 | i 168.2 | |||||
Other
non-current liabilities | i 92.0 | i 84.0 | |||||
Total
Non-Current Liabilities | i 2,268.6 | i 2,168.5 | |||||
Shareholders’
Equity | |||||||
Class I and II Serial Preferred Stock, without par value: | |||||||
Authorized – 10,000,000 shares each class, none issued | i — | i — | |||||
Common
shares, without par value: | |||||||
Authorized – 200,000,000 shares | |||||||
Issued (including shares in treasury) (2020 – 98,375,135 shares; 2019 – 98,375,135 shares) | |||||||
Stated
capital | i 53.1 | i 53.1 | |||||
Other
paid-in capital | i 924.4 | i 937.6 | |||||
Earnings
invested in the business | i 2,005.7 | i 1,907.4 | |||||
Accumulated
other comprehensive loss | ( i 99.2 | ) | ( i 50.1 | ) | |||
Treasury
shares at cost (2020 – 23,276,868 shares; 2019 – 22,836,180 shares) | ( i 1,000.4 | ) | ( i 979.8 | ) | |||
Total
Shareholders’ Equity | i 1,883.6 | i 1,868.2 | |||||
Noncontrolling
Interest | i 84.0 | i 86.6 | |||||
Total
Equity | i 1,967.6 | i 1,954.8 | |||||
Total
Liabilities and Equity | $ | i 4,901.0 | $ | i 4,859.9 |
Six
Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(Dollars in millions) | |||||||
CASH PROVIDED (USED) | |||||||
Operating
Activities | |||||||
Net income | $ | i 145.8 | $ | i 190.2 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 84.0 | i 81.2 | |||||
Impairment
charges | i 0.1 | i 0.7 | |||||
Loss
(gain) on sale of assets | i 1.6 | ( i 1.6 | ) | ||||
Deferred
income tax (benefit) provision | ( i 7.1 | ) | i 1.8 | ||||
Stock-based
compensation expense | i 11.4 | i 14.9 | |||||
Pension
and other postretirement expense | i 8.2 | i 5.8 | |||||
Pension
and other postretirement benefit contributions and payments | ( i 8.6 | ) | ( i 8.9 | ) | |||
Changes
in operating assets and liabilities: | |||||||
Accounts receivable | ( i 8.4 | ) | ( i 35.9 | ) | |||
Unbilled
receivables | i 3.0 | ( i 36.6 | ) | ||||
Inventories | i 41.3 | i 16.6 | |||||
Accounts
payable, trade | ( i 28.9 | ) | i 13.4 | ||||
Other
accrued expenses | i 5.3 | ( i 45.1 | ) | ||||
Income
taxes | i 30.9 | i 0.6 | |||||
Other,
net | i 25.0 | i 12.8 | |||||
Net
Cash Provided by Operating Activities | i 303.6 | i 209.9 | |||||
Investing
Activities | |||||||
Capital expenditures | ( i 56.5 | ) | ( i 39.2 | ) | |||
Acquisitions,
net of cash received | ( i 6.7 | ) | ( i 83.0 | ) | |||
Investments
in short-term marketable securities, net | ( i 1.6 | ) | i 0.2 | ||||
Other | i 0.1 | i 2.2 | |||||
Net
Cash Used in Investing Activities | ( i 64.7 | ) | ( i 119.8 | ) | |||
Financing
Activities | |||||||
Cash dividends paid to shareholders | ( i 43.9 | ) | ( i 42.6 | ) | |||
Purchase
of treasury shares | ( i 42.3 | ) | ( i 23.6 | ) | |||
Proceeds
from exercise of stock options | i 7.5 | i 8.9 | |||||
Payments
related to tax withholding for stock-based compensation | ( i 10.4 | ) | ( i 8.1 | ) | |||
Accounts
receivable facility borrowings | i 10.0 | i 25.0 | |||||
Accounts
receivable facility payments | ( i 110.0 | ) | i — | ||||
Proceeds
from long-term debt | i 550.0 | i 292.0 | |||||
Payments
on long-term debt | ( i 417.1 | ) | ( i 310.4 | ) | |||
Deferred
financing costs | ( i 1.6 | ) | ( i 1.9 | ) | |||
Short-term
debt activity, net | i 26.5 | i 3.8 | |||||
Net
Cash Used in Financing Activities | ( i 31.3 | ) | ( i 56.9 | ) | |||
Effect
of exchange rate changes on cash | ( i 7.7 | ) | i 1.1 | ||||
Increase
in Cash, Cash Equivalents and Restricted Cash | i 199.9 | i 34.3 | |||||
Cash,
cash equivalents and restricted cash at beginning of year | i 216.2 | i 133.1 | |||||
Cash,
Cash Equivalents and Restricted Cash at End of Period | $ | i 416.1 | $ | i 167.4 |
Initial Purchase Price Allocation | Adjustments | Purchase Price Allocation | |||||||
Assets: | |||||||||
Accounts
receivable, net | $ | i 26.3 | $ | ( i 0.1 | ) | $ | i 26.2 | ||
Inventories,
net | i 62.9 | i 0.1 | i 63.0 | ||||||
Other
current assets | i 4.9 | i 0.2 | i 5.1 | ||||||
Property,
plant and equipment, net | i 57.4 | i — | i 57.4 | ||||||
Operating
lease assets | i 4.7 | i — | i 4.7 | ||||||
Goodwill | i 44.2 | i 6.3 | i 50.5 | ||||||
Other
intangible assets | i 84.4 | i — | i 84.4 | ||||||
Other
non-current assets | i 0.7 | i — | i 0.7 | ||||||
Total
assets acquired | $ | i 285.5 | $ | i 6.5 | $ | i 292.0 | |||
Liabilities: | |||||||||
Accounts
payable, trade | $ | i 10.8 | $ | ( i 0.2 | ) | $ | i 10.6 | ||
Salaries,
wages and benefits | i 6.8 | i — | i 6.8 | ||||||
Income
taxes payable | i 2.1 | i — | i 2.1 | ||||||
Other
current liabilities | i 6.7 | i 0.7 | i 7.4 | ||||||
Short-term
debt | i 0.8 | i — | i 0.8 | ||||||
Long-term
debt | i 17.2 | i — | i 17.2 | ||||||
Accrued
pension benefits | i 0.5 | i — | i 0.5 | ||||||
Accrued
postretirement benefits | i 0.1 | i — | i 0.1 | ||||||
Long-term
operating lease liabilities | i 4.1 | i — | i 4.1 | ||||||
Deferred
income taxes | i 5.1 | ( i 0.7 | ) | i 4.4 | |||||
Other
non-current liabilities | i 1.1 | i — | i 1.1 | ||||||
Total
liabilities assumed | $ | i 55.3 | $ | ( i 0.2 | ) | $ | i 55.1 | ||
Noncontrolling
interest acquired | i 1.8 | i — | i 1.8 | ||||||
Net
assets acquired | $ | i 228.4 | $ | i 6.7 | $ | i 235.1 |
Three
Months Ended | Three Months Ended | |||||||||||||||||
Mobile | Process | Total | Mobile | Process | Total | |||||||||||||
United
States | $ | i 186.6 | $ | i 173.7 | $ | i 360.3 | $ | i 258.6 | $ | i 226.9 | $ | i 485.5 | ||||||
Americas
excluding United States | i 26.8 | i 29.3 | i 56.1 | i 57.2 | i 40.8 | i 98.0 | ||||||||||||
Europe
/ Middle East / Africa | i 78.8 | i 112.9 | i 191.7 | i 101.2 | i 129.1 | i 230.3 | ||||||||||||
Asia-Pacific | i 50.4 | i 145.0 | i 195.4 | i 76.7 | i 109.5 | i 186.2 | ||||||||||||
Net
sales | $ | i 342.6 | $ | i 460.9 | $ | i 803.5 | $ | i 493.7 | $ | i 506.3 | $ | i 1,000.0 |
Six
Months Ended | Six Months Ended | |||||||||||||||||
Mobile | Process | Total | Mobile | Process | Total | |||||||||||||
United
States | $ | i 424.8 | $ | i 366.3 | $ | i 791.1 | $ | i 532.3 | $ | i 436.6 | $ | i 968.9 | ||||||
Americas
excluding United States | i 75.6 | i 64.3 | i 139.9 | i 105.7 | i 84.4 | i 190.1 | ||||||||||||
Europe
/ Middle East / Africa | i 187.5 | i 228.5 | i 416.0 | i 202.9 | i 254.1 | i 457.0 | ||||||||||||
Asia-Pacific | i 121.4 | i 258.5 | i 379.9 | i 152.8 | i 210.9 | i 363.7 | ||||||||||||
Net
sales | $ | i 809.3 | $ | i 917.6 | $ | i 1,726.9 | $ | i 993.7 | $ | i 986.0 | $ | i 1,979.7 |
Six Months Ended | Six
Months Ended | |
Revenue by sales channel | ||
Original equipment manufacturers | i 59% | i 57% |
Distribution/end
users | i 41% | i 43% |
Beginning balance, January 1 | $ | i 129.2 | |
Additional
unbilled revenue recognized | i 218.6 | ||
Less: amounts billed to customers | ( i 221.6 | ) | |
Ending
balance | $ | i 126.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales: | |||||||||||||||
Mobile
Industries | $ | i 342.6 | $ | i 493.7 | $ | i 809.3 | $ | i 993.7 | |||||||
Process
Industries | i 460.9 | i 506.3 | i 917.6 | i 986.0 | |||||||||||
Net
sales | $ | i 803.5 | $ | i 1,000.0 | $ | i 1,726.9 | $ | i 1,979.7 | |||||||
Segment
EBITDA: | |||||||||||||||
Mobile Industries | $ | i 38.8 | $ | i 78.0 | $ | i 113.9 | $ | i 157.3 | |||||||
Process
Industries | i 126.3 | i 125.7 | i 233.8 | i 253.3 | |||||||||||
Total
EBITDA, for reportable segments | $ | i 165.1 | $ | i 203.7 | $ | i 347.7 | $ | i 410.6 | |||||||
Corporate
EBITDA | ( i 6.5 | ) | ( i 15.3 | ) | ( i 17.6 | ) | ( i 29.4 | ) | |||||||
Corporate
pension and other postretirement benefit related charges (1) | ( i 8.8 | ) | i — | ( i 8.8 | ) | i — | |||||||||
Depreciation
and amortization | ( i 41.7 | ) | ( i 41.7 | ) | ( i 84.0 | ) | ( i 81.2 | ) | |||||||
Interest
expense | ( i 18.9 | ) | ( i 19.3 | ) | ( i 36.0 | ) | ( i 37.3 | ) | |||||||
Interest
income | i 0.6 | i 1.1 | i 2.1 | i 2.4 | |||||||||||
Income
before income taxes | $ | i 89.8 | $ | i 128.5 | $ | i 203.4 | $ | i 265.1 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Provision for income taxes | $ | i 28.0 | $ | i 33.6 | $ | i 57.6 | $ | i 74.9 | ||||||
Effective
tax rate | i 31.2 | % | i 26.1 | % | i 28.3 | % | i 28.3 | % |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Numerator: | |||||||||||||||
Net
income attributable to The Timken Company | $ | i 61.9 | $ | i 92.5 | $ | i 142.6 | $ | i 184.4 | |||||||
Less:
undistributed earnings allocated to nonvested stock | i — | i — | i — | i — | |||||||||||
Net
income available to common shareholders for basic and diluted earnings per share | $ | i 61.9 | $ | i 92.5 | $ | i 142.6 | $ | i 184.4 | |||||||
Denominator: | |||||||||||||||
Weighted
average number of shares outstanding - basic | i 75,078,207 | i 76,085,358 | i 75,298,356 | i 76,024,301 | |||||||||||
Effect
of dilutive securities: | |||||||||||||||
Stock options and awards - based on the treasury stock method | i 620,082 | i 1,123,074 | i 733,693 | i 1,074,681 | |||||||||||
Weighted
average number of shares outstanding assuming dilution of stock options and awards | i 75,698,289 | i 77,208,432 | i 76,032,049 | i 77,098,982 | |||||||||||
Basic
earnings per share | $ | i 0.82 | $ | i 1.22 | $ | i 1.89 | $ | i 2.43 | |||||||
Diluted
earnings per share | $ | i 0.82 | $ | i 1.20 | $ | i 1.88 | $ | i 2.39 |
Manufacturing
supplies | $ | i 34.5 | $ | i 34.2 | |||
Raw
materials | i 99.5 | i 100.0 | |||||
Work
in process | i 310.4 | i 308.9 | |||||
Finished
products | i 385.9 | i 439.0 | |||||
Subtotal | i 830.3 | i 882.1 | |||||
Allowance
for obsolete and surplus inventory | ( i 46.3 | ) | ( i 40.1 | ) | |||
Total
Inventories, net | $ | i 784.0 | $ | i 842.0 |
Mobile Industries | Process Industries | Total | |||||||
Beginning
balance | $ | i 361.3 | $ | i 632.4 | $ | i 993.7 | |||
Acquisitions | i 4.2 | i 2.1 | i 6.3 | ||||||
Foreign
currency translation adjustments and other changes | ( i 2.3 | ) | ( i 1.2 | ) | ( i 3.5 | ) | |||
Ending
balance | $ | i 363.2 | $ | i 633.3 | $ | i 996.5 |
Balance at June 30, 2020 | Balance
at December 31, 2019 | |||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Intangible
assets subject to amortization: | ||||||||||||||||||
Customer relationships | $ | i 509.0 | $ | ( i 143.4 | ) | $ | i 365.6 | $ | i 510.9 | $ | ( i 128.8 | ) | $ | i 382.1 | ||||
Technology
and know-how | i 264.2 | ( i 62.1 | ) | i 202.1 | i 265.1 | ( i 54.7 | ) | i 210.4 | ||||||||||
Trade
names | i 12.5 | ( i 6.4 | ) | i 6.1 | i 12.7 | ( i 6.1 | ) | i 6.6 | ||||||||||
Capitalized
software | i 273.2 | ( i 250.2 | ) | i 23.0 | i 270.3 | ( i 245.8 | ) | i 24.5 | ||||||||||
Other | i 13.6 | ( i 9.4 | ) | i 4.2 | i 13.8 | ( i 9.1 | ) | i 4.7 | ||||||||||
$ | i 1,072.5 | $ | ( i 471.5 | ) | $ | i 601.0 | $ | i 1,072.8 | $ | ( i 444.5 | ) | $ | i 628.3 | |||||
Intangible
assets not subject to amortization: | ||||||||||||||||||
Trade names | $ | i 121.7 | $ | i 121.7 | $ | i 121.5 | $ | i 121.5 | ||||||||||
FAA
air agency certificates | i 8.7 | i 8.7 | i 8.7 | i 8.7 | ||||||||||||||
$ | i 130.4 | $ | i 130.4 | $ | i 130.2 | $ | i 130.2 | |||||||||||
Total
intangible assets | $ | i 1,202.9 | $ | ( i 471.5 | ) | $ | i 731.4 | $ | i 1,203.0 | $ | ( i 444.5 | ) | $ | i 758.5 |
Variable-rate Accounts Receivable Facility with an interest rate of 2.77% at December 31, 2019 | $ | i — | $ | i 1.8 | ||
Borrowings
under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.24% to 2.80% at June 30, 2020 and 0.27% to 1.75% at December 31, 2019 | i 42.9 | i 15.5 | ||||
Short-term
debt | $ | i 42.9 | $ | i 17.3 |
Variable-rate Senior Credit Facility with an
average interest rate on U.S. Dollar of 2.23% and Euro of 1.04% at June 30, 2020 and 2.85% and Euro of 1.00% at December 31, 2019 | $ | i 317.8 | $ | i 132.7 | ||
Variable-rate
Euro Term Loan(1), maturing on September 18, 2020, with an interest rate of 1.375% at June 30, 2020 and 1.13% at December 31, 2019 | i 7.8 | i 54.4 | ||||
Variable-rate
Accounts Receivable Facility with an interest rate of 2.77% at December 31, 2019 | i — | i 98.2 | ||||
Variable-rate
Term Loan(1), maturing on September 11, 2023, with an interest rate of 2.11% at June 30, 2020 and 2.92% at December 31, 2019 | i 333.8 | i 338.5 | ||||
Fixed-rate
Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875% | i 348.8 | i 348.5 | ||||
Fixed-rate
Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02% | i 168.1 | i 167.7 | ||||
i 396.3 | i 396.1 | |||||
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% | i 154.6 | i 154.6 | ||||
Fixed-rate
Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% | i 18.0 | i 18.0 | ||||
Other | i 3.3 | i 4.1 | ||||
i 1,748.5 | i 1,712.8 | |||||
Less:
Current maturities | i 18.4 | i 64.7 | ||||
Long-term
debt | $ | i 1,730.1 | $ | i 1,648.1 |
The
Timken Company Shareholders | |||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Earnings Invested in the Business | Accumulated Other Comprehensive (Loss) | Treasury Stock | Non controlling Interest | |||||||||||||||
Balance
at March 31, 2020 | $ | i 1,900.3 | $ | i 53.1 | $ | i 920.1 | $ | i 1,964.8 | $ | ( i 118.9 | ) | $ | ( i 1,001.7 | ) | $ | i 82.9 | |||||
Net
income (loss) | i 61.8 | i 61.9 | ( i 0.1 | ) | |||||||||||||||||
Foreign
currency translation adjustment | i 24.5 | i 23.3 | i 1.2 | ||||||||||||||||||
Pension
and other postretirement liability adjustments (net of income tax benefit of $0.5 million) | ( i 1.5 | ) | ( i 1.5 | ) | |||||||||||||||||
Unrealized
gain on marketable securities | i 0.5 | i 0.5 | |||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | ( i 2.6 | ) | ( i 2.6 | ) | |||||||||||||||||
Dividends
– $0.28 per share | ( i 21.0 | ) | ( i 21.0 | ) | |||||||||||||||||
Stock-based
compensation expense | i 5.8 | i 5.8 | |||||||||||||||||||
Restricted
share activity | i — | ( i 1.5 | ) | i 1.5 | |||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 0.2 | ) | ( i 0.2 | ) | |||||||||||||||||
Balance
at June 30, 2020 | $ | i 1,967.6 | $ | i 53.1 | $ | i 924.4 | $ | i 2,005.7 | $ | ( i 99.2 | ) | $ | ( i 1,000.4 | ) | $ | i 84.0 |
The
Timken Company Shareholders | |||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Earnings Invested in the Business | Accumulated Other Comprehensive (Loss) | Treasury Stock | Non controlling Interest | |||||||||||||||
Balance
at December 31, 2019 | $ | i 1,954.8 | $ | i 53.1 | $ | i 937.6 | $ | i 1,907.4 | $ | ( i 50.1 | ) | $ | ( i 979.8 | ) | $ | i 86.6 | |||||
Cumulative
effect of ASU 2016-13 (net of income tax benefit of $0.2 million) | ( i 0.4 | ) | ( i 0.4 | ) | |||||||||||||||||
Net
income | i 145.8 | i 142.6 | i 3.2 | ||||||||||||||||||
Foreign
currency translation adjustment | ( i 54.3 | ) | ( i 48.0 | ) | ( i 6.3 | ) | |||||||||||||||
Pension
and other postretirement liability adjustments (net of income tax benefit of $1.0 million) | ( i 2.8 | ) | ( i 2.8 | ) | |||||||||||||||||
Unrealized
gain on marketable securities | i 0.1 | i 0.1 | |||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | i 1.6 | i 1.6 | |||||||||||||||||||
Change
in ownership of noncontrolling interest | i 0.5 | i 0.5 | |||||||||||||||||||
Dividends
– $0.56 per share | ( i 43.9 | ) | ( i 43.9 | ) | |||||||||||||||||
Stock-based
compensation expense | i 11.4 | i 11.4 | |||||||||||||||||||
Stock
purchased at fair market value | ( i 42.3 | ) | ( i 42.3 | ) | |||||||||||||||||
Stock
option exercise activity | i 7.5 | ( i 0.9 | ) | i 8.4 | |||||||||||||||||
Restricted
share activity | i — | ( i 23.7 | ) | i 23.7 | |||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 10.4 | ) | ( i 10.4 | ) | |||||||||||||||||
Balance
at June 30, 2020 | $ | i 1,967.6 | $ | i 53.1 | $ | i 924.4 | $ | i 2,005.7 | $ | ( i 99.2 | ) | $ | ( i 1,000.4 | ) | $ | i 84.0 |
The
Timken Company Shareholders | |||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Earnings Invested in the Business | Accumulated Other Comprehensive (Loss) | Treasury Stock | Non controlling Interest | |||||||||||||||
Balance
at March 31, 2019 | $ | i 1,705.9 | $ | i 53.1 | $ | i 938.2 | $ | i 1,700.8 | $ | ( i 101.1 | ) | $ | ( i 952.5 | ) | $ | i 67.4 | |||||
Net
income | i 94.9 | i 92.5 | i 2.4 | ||||||||||||||||||
Foreign
currency translation adjustment | i 5.1 | i 4.4 | i 0.7 | ||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | ( i 0.8 | ) | ( i 0.8 | ) | |||||||||||||||||
Noncontrolling
interest acquired | i 1.8 | i 1.8 | |||||||||||||||||||
Dividends
– $0.28 per share | ( i 21.3 | ) | ( i 21.3 | ) | |||||||||||||||||
Stock-based
compensation expense | i 7.1 | i 7.1 | |||||||||||||||||||
Stock
purchased at fair market value | ( i 15.3 | ) | ( i 15.3 | ) | |||||||||||||||||
Stock
option exercise activity | i 7.9 | ( i 2.8 | ) | i 10.7 | |||||||||||||||||
Restricted
share activity | i — | ( i 1.2 | ) | i 1.2 | |||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 1.7 | ) | ( i 1.7 | ) | |||||||||||||||||
Balance
at June 30, 2019 | $ | i 1,783.6 | $ | i 53.1 | $ | i 941.3 | $ | i 1,772.0 | $ | ( i 97.5 | ) | $ | ( i 957.6 | ) | $ | i 72.3 |
The Timken Company Shareholders | |||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Earnings Invested in
the Business | Accumulated Other Comprehensive (Loss) | Treasury Stock | Non controlling Interest | |||||||||||||||
Balance at December 31, 2018 | $ | i 1,642.7 | $ | i 53.1 | $ | i 951.9 | $ | i 1,630.2 | $ | ( i 95.3 | ) | $ | ( i 960.3 | ) | $ | i 63.1 | |||||
Net
income | i 190.2 | i 184.4 | i 5.8 | ||||||||||||||||||
Foreign
currency translation adjustment | i 0.9 | ( i 0.7 | ) | i 1.6 | |||||||||||||||||
Pension
and postretirement liability adjustments | ( i 0.1 | ) | ( i 0.1 | ) | |||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | ( i 1.4 | ) | ( i 1.4 | ) | |||||||||||||||||
Noncontrolling
interest acquired | i 1.8 | i 1.8 | |||||||||||||||||||
Dividends
– $0.56 per share | ( i 42.6 | ) | ( i 42.6 | ) | |||||||||||||||||
Stock-based
compensation | i 14.9 | i 14.9 | |||||||||||||||||||
Stock
purchased at fair market value | ( i 23.6 | ) | ( i 23.6 | ) | |||||||||||||||||
Stock
option exercise activity | i 8.9 | ( i 3.4 | ) | i 12.3 | |||||||||||||||||
Restricted
share activity | i — | ( i 22.1 | ) | i 22.1 | |||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 8.1 | ) | ( i 8.1 | ) | |||||||||||||||||
Balance
at June 30, 2019 | $ | i 1,783.6 | $ | i 53.1 | $ | i 941.3 | $ | i 1,772.0 | $ | ( i 97.5 | ) | $ | ( i 957.6 | ) | $ | i 72.3 |
Mobile
Industries | Process Industries | Corporate | Total | |||||||||
Severance and related benefit costs | $ | i 1.5 | $ | i 1.7 | $ | i — | $ | i 3.2 | ||||
Exit
costs | ( i 0.3 | ) | i 0.2 | i — | ( i 0.1 | ) | ||||||
Total | $ | i 1.2 | $ | i 1.9 | $ | i — | $ | i 3.1 |
Mobile Industries | Process Industries | Corporate | Total | |||||||||
Impairment
charges | $ | i — | $ | i 0.1 | $ | i — | $ | i 0.1 | ||||
Severance
and related benefit costs | i 1.6 | i 4.2 | i 0.1 | i 5.9 | ||||||||
Exit
costs | i 0.3 | i 0.4 | i — | i 0.7 | ||||||||
Total | $ | i 1.9 | $ | i 4.7 | $ | i 0.1 | $ | i 6.7 |
Beginning balance, January 1 | $ | i 2.7 | |
Expense | i 6.6 | ||
Payments | ( i 2.9 | ) | |
Ending
balance | $ | i 6.4 |
U.S.
Plans | International Plans | Total | ||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Components
of net periodic benefit cost: | ||||||||||||||||||
Service cost | $ | i 2.7 | $ | i 2.6 | $ | i 0.4 | $ | i 0.4 | $ | i 3.1 | $ | i 3.0 | ||||||
Interest
cost | i 5.3 | i 6.0 | i 1.3 | i 1.8 | i 6.6 | i 7.8 | ||||||||||||
Expected
return on plan assets | ( i 6.4 | ) | ( i 6.4 | ) | ( i 2.1 | ) | ( i 2.6 | ) | ( i 8.5 | ) | ( i 9.0 | ) | ||||||
Amortization
of prior service cost | i 0.4 | i 0.4 | i 0.1 | i 0.1 | i 0.5 | i 0.5 | ||||||||||||
Recognition
of net actuarial losses | i 8.8 | i — | i — | i — | i 8.8 | i — | ||||||||||||
Net
periodic benefit cost (credit) | $ | i 10.8 | $ | i 2.6 | $ | ( i 0.3 | ) | $ | ( i 0.3 | ) | $ | i 10.5 | $ | i 2.3 |
U.S.
Plans | International Plans | Total | ||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Components
of net periodic benefit cost: | ||||||||||||||||||
Service cost | $ | i 5.4 | $ | i 5.2 | $ | i 0.8 | $ | i 0.8 | $ | i 6.2 | $ | i 6.0 | ||||||
Interest
cost | i 10.5 | i 12.0 | i 2.8 | i 3.7 | i 13.3 | i 15.7 | ||||||||||||
Expected
return on plan assets | ( i 12.7 | ) | ( i 12.8 | ) | ( i 4.3 | ) | ( i 5.2 | ) | ( i 17.0 | ) | ( i 18.0 | ) | ||||||
Amortization
of prior service cost | i 0.8 | i 0.8 | i 0.1 | i 0.1 | i 0.9 | i 0.9 | ||||||||||||
Recognition
of net actuarial losses | i 8.8 | i — | i — | i — | i 8.8 | i — | ||||||||||||
Net
periodic benefit cost (credit) | $ | i 12.8 | $ | i 5.2 | $ | ( i 0.6 | ) | $ | ( i 0.6 | ) | $ | i 12.2 | $ | i 4.6 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Components of net periodic benefit (credit) cost: | |||||||||||||||
Service
cost | $ | i 0.1 | $ | i 0.1 | $ | i 0.1 | $ | i 0.1 | |||||||
Interest
cost | i 0.5 | i 1.9 | i 1.0 | i 3.8 | |||||||||||
Expected
return on plan assets | ( i 0.1 | ) | ( i 0.8 | ) | ( i 0.2 | ) | ( i 1.6 | ) | |||||||
Amortization
of prior service credit | ( i 2.5 | ) | ( i 0.6 | ) | ( i 4.9 | ) | ( i 1.1 | ) | |||||||
Net
periodic benefit (credit) cost | $ | ( i 2.0 | ) | $ | i 0.6 | $ | ( i 4.0 | ) | $ | i 1.2 |
Foreign
currency translation adjustments | Pension and other postretirement liability adjustments | Unrealized gain (loss) on marketable securities | Change in fair value of derivative financial instruments | Total | |||||||||||
Balance at March 31, 2020 | $ | ( i 186.6 | ) | $ | i 65.6 | $ | ( i 0.4 | ) | $ | i 2.5 | $ | ( i 118.9 | ) | ||
Other
comprehensive income (loss) before reclassifications and income taxes | i 24.5 | i — | i 0.7 | ( i 2.2 | ) | i 23.0 | |||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 2.0 | ) | i — | ( i 1.3 | ) | ( i 3.3 | ) | |||||||
Income
tax benefit (expense) | i — | i 0.5 | ( i 0.2 | ) | i 0.9 | i 1.2 | |||||||||
Net
current period other comprehensive income (loss), net of income taxes | i 24.5 | ( i 1.5 | ) | i 0.5 | ( i 2.6 | ) | i 20.9 | ||||||||
Noncontrolling
interest | ( i 1.2 | ) | i — | i — | i — | ( i 1.2 | ) | ||||||||
Net
current period comprehensive income (loss), net of income taxes and noncontrolling interest | i 23.3 | ( i 1.5 | ) | i 0.5 | ( i 2.6 | ) | i 19.7 | ||||||||
Balance
at June 30, 2020 | $ | ( i 163.3 | ) | $ | i 64.1 | $ | i 0.1 | $ | ( i 0.1 | ) | $ | ( i 99.2 | ) |
Foreign
currency translation adjustments | Pension and other postretirement liability adjustments | Unrealized gain (loss) on marketable securities | Change in fair value of derivative financial instruments | Total | |||||||||||
Balance at December 31, 2019 | $ | ( i 115.3 | ) | $ | i 66.9 | $ | i — | $ | ( i 1.7 | ) | $ | ( i 50.1 | ) | ||
Other
comprehensive (loss) income before reclassifications and income taxes | ( i 54.3 | ) | i 0.2 | i 0.2 | i 4.2 | ( i 49.7 | ) | ||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 4.0 | ) | i — | ( i 1.9 | ) | ( i 5.9 | ) | |||||||
Income
tax benefit (expense) | i — | i 1.0 | ( i 0.1 | ) | ( i 0.7 | ) | i 0.2 | ||||||||
Net
current period other comprehensive (loss) income, net of income taxes | ( i 54.3 | ) | ( i 2.8 | ) | i 0.1 | i 1.6 | ( i 55.4 | ) | |||||||
Noncontrolling
interest | i 6.3 | i — | i — | i — | i 6.3 | ||||||||||
Net
current period comprehensive (loss) income, net of income taxes and noncontrolling interest | ( i 48.0 | ) | ( i 2.8 | ) | i 0.1 | i 1.6 | ( i 49.1 | ) | |||||||
Balance
at June 30, 2020 | $ | ( i 163.3 | ) | $ | i 64.1 | $ | i 0.1 | $ | ( i 0.1 | ) | $ | ( i 99.2 | ) |
Foreign currency translation adjustments | Pension and other postretirement liability adjustments | Unrealized
gain (loss) on marketable securities | Change in fair value of derivative financial instruments | Total | |||||||||||
Balance at March 31, 2019 | $ | ( i 100.7 | ) | $ | ( i 0.1 | ) | $ | i — | $ | ( i 0.3 | ) | $ | ( i 101.1 | ) | |
Other
comprehensive income (loss) before reclassifications and income taxes | i 5.1 | i — | i — | ( i 0.2 | ) | i 4.9 | |||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 0.1 | ) | i — | ( i 0.7 | ) | ( i 0.8 | ) | |||||||
Income
tax benefit | i — | i 0.1 | i — | i 0.1 | i 0.2 | ||||||||||
Net
current period other comprehensive income (loss), net of income taxes | i 5.1 | i — | i — | ( i 0.8 | ) | i 4.3 | |||||||||
Noncontrolling
interest | ( i 0.7 | ) | i — | i — | i — | ( i 0.7 | ) | ||||||||
Net
current period comprehensive income (loss), net of income taxes and noncontrolling interest | i 4.4 | i — | i — | ( i 0.8 | ) | i 3.6 | |||||||||
Balance
at June 30, 2019 | $ | ( i 96.3 | ) | $ | ( i 0.1 | ) | $ | i — | $ | ( i 1.1 | ) | $ | ( i 97.5 | ) |
Foreign
currency translation adjustments | Pension and other postretirement liability adjustments | Unrealized gain (loss) on marketable securities | Change in fair value of derivative financial instruments | Total | |||||||||||
Balance at December 31, 2018 | $ | ( i 95.6 | ) | $ | i — | $ | i — | $ | i 0.3 | $ | ( i 95.3 | ) | |||
Other
comprehensive income before reclassifications and income taxes | i 0.9 | i — | i — | i 0.2 | i 1.1 | ||||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 0.2 | ) | i — | ( i 1.9 | ) | ( i 2.1 | ) | |||||||
Income
tax benefit | i — | i 0.1 | i — | i 0.3 | i 0.4 | ||||||||||
Net
current period other comprehensive (loss) income, net of income taxes | i 0.9 | ( i 0.1 | ) | i — | ( i 1.4 | ) | ( i 0.6 | ) | |||||||
Noncontrolling
interest | ( i 1.6 | ) | i — | i — | i — | ( i 1.6 | ) | ||||||||
Net
current period comprehensive loss, net of income taxes and noncontrolling interest | ( i 0.7 | ) | ( i 0.1 | ) | i — | ( i 1.4 | ) | ( i 2.2 | ) | ||||||
Balance
at June 30, 2019 | $ | ( i 96.3 | ) | $ | ( i 0.1 | ) | $ | i — | $ | ( i 1.1 | ) | $ | ( i 97.5 | ) |
Total | Level 1 | Level 2 | Level 3 | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | i 270.3 | $ | i 268.2 | $ | i 2.1 | $ | i — | ||||
Cash
and cash equivalents measured at net asset value | i 145.3 | |||||||||||
Restricted
cash | i 0.5 | i 0.5 | i — | i — | ||||||||
Short-term
investments | i 52.6 | i 25.6 | i 27.0 | i — | ||||||||
Foreign
currency forward contracts | i 2.1 | i — | i 2.1 | i — | ||||||||
Total
Assets | $ | i 470.8 | $ | i 294.3 | $ | i 31.2 | $ | i — | ||||
Liabilities: | ||||||||||||
Foreign
currency forward contracts | $ | i 3.0 | $ | i — | $ | i 3.0 | $ | i — | ||||
Total
Liabilities | $ | i 3.0 | $ | i — | $ | i 3.0 | $ | i — |
Total | Level 1 | Level 2 | Level 3 | |||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | i 160.7 | $ | i 158.2 | $ | i 2.5 | $ | i — | ||||
Cash
and cash equivalents measured at net asset value | i 48.8 | |||||||||||
Restricted cash | i 6.7 | i 6.7 | i — | i — | ||||||||
Short-term
investments | i 25.7 | i — | i 25.7 | i — | ||||||||
Short-term
investments measured at net asset value | i 0.1 | |||||||||||
Foreign currency forward contracts | i 7.6 | i — | i 7.6 | i — | ||||||||
Total
Assets | $ | i 249.6 | $ | i 164.9 | $ | i 35.8 | $ | i — | ||||
Liabilities: | ||||||||||||
Foreign
currency forward contracts | $ | i 1.4 | $ | i — | $ | i 1.4 | $ | i — | ||||
Total
Liabilities | $ | i 1.4 | $ | i — | $ | i 1.4 | $ | i — |
Amount
of gain or (loss) recognized in income | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Derivatives not designated as hedging instruments: | Location of gain or (loss) recognized in income | 2020 | 2019 | 2020 | 2019 | |||||||||||
Foreign
currency forward contracts | Other income (expense), net | $ | ( i 3.7 | ) | $ | ( i 0.3 | ) | $ | i 1.8 | $ | i 2.7 |
• | Mobile
Industries serves OEM customers that manufacture off-highway equipment for the agricultural, mining and construction markets; on-highway vehicles including passenger cars, light trucks, and medium- and heavy-duty trucks; rail cars and locomotives; outdoor power equipment; rotorcraft and fixed-wing aircraft; and other mobile equipment. Beyond service parts sold to OEMs, aftermarket sales and services to individual end users, equipment owners, operators and maintenance shops are handled directly or through the Company's extensive network of authorized automotive and heavy-truck distributors. |
• | Process Industries serves
OEM and end-user customers in industries that place heavy demands on the fixed operating equipment they make or use in heavy and other general industrial sectors. This includes metals, cement and aggregate production; power generation and renewable energy sources; oil and gas extraction and refining; pulp and paper and food processing; automation and robotics; and health and critical motion control equipment. Other applications include marine equipment, gear drives, cranes, hoists and conveyors. This segment also supports aftermarket sales and service needs through its global network of authorized industrial distributors and through the provision of services directly to end users. |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net
sales | $ | 803.5 | $ | 1,000.0 | $ | (196.5 | ) | (19.7 | )% | ||
Net income | 61.8 | 94.9 | (33.1 | ) | (34.9 | )% | |||||
Net
income attributable to noncontrolling interest | (0.1 | ) | 2.4 | (2.5 | ) | (104.2 | )% | ||||
Net income attributable to The Timken Company | $ | 61.9 | $ | 92.5 | $ | (30.6 | ) | (33.1 | )% | ||
Diluted
earnings per share | $ | 0.82 | $ | 1.20 | $ | (0.38 | ) | (31.7 | )% | ||
Average number of shares – diluted | 75,698,289 | 77,208,432 | — | (2.0 | )% |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net sales | $ | 1,726.9 | $ | 1,979.7 | $ | (252.8 | ) | (12.8 | )% | ||
Net
income | 145.8 | 190.2 | (44.4 | ) | (23.3 | )% | |||||
Net income attributable to noncontrolling interest | 3.2 | 5.8 | (2.6 | ) | (44.8 | )% | |||||
Net
income attributable to The Timken Company | $ | 142.6 | $ | 184.4 | $ | (41.8 | ) | (22.7 | )% | ||
Diluted earnings per share | $ | 1.88 | $ | 2.39 | $ | (0.51 | ) | (21.3 | )% | ||
Average
number of shares – diluted | 76,032,049 | 77,098,982 | — | (1.4 | )% |
Three
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net Sales | $ | 803.5 | $ | 1,000.0 | $ | (196.5 | ) | (19.7 | )% |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net Sales | $ | 1,726.9 | $ | 1,979.7 | $ | (252.8 | ) | (12.8 | )% |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Gross
profit | $ | 230.3 | $ | 305.7 | $ | (75.4 | ) | (24.7 | %) | ||
Gross profit % to net sales | 28.7 | % | 30.6 | % | (190 | )
bps |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Gross
profit | $ | 509.2 | $ | 608.3 | $ | (99.1 | ) | (16.3 | %) | ||
Gross profit % to net sales | 29.5 | % | 30.7 | % | (120 | )
bps |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Selling,
general and administrative expenses | $ | 111.8 | $ | 158.7 | $ | (46.9 | ) | (29.6 | %) | ||
Selling, general and administrative expenses % to net sales | 13.9 | % | 15.9 | % | (200 | )
bps |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Selling,
general and administrative expenses | $ | 265.4 | $ | 311.4 | $ | (46.0 | ) | (14.8 | %) | ||
Selling, general and administrative expenses % to net sales | 15.4 | % | 15.7 | % | (30 | )
bps |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | %
Change | ||||||||
Impairment charges | $ | — | $ | 0.7 | $ | (0.7 | ) | (100.0 | )% | ||
Severance and related benefit costs | 3.2 | 0.8 | 2.4 | 300.0 | % | ||||||
Exit
costs | (0.1 | ) | 0.4 | (0.5 | ) | (125.0 | )% | ||||
Total | $ | 3.1 | $ | 1.9 | $ | 1.2 | 63.2 | % |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Impairment charges | $ | 0.1 | $ | 0.7 | $ | (0.6 | ) | (85.7 | )% | ||
Severance
and related benefit costs | 5.9 | 0.8 | 5.1 | NM | |||||||
Exit costs | 0.7 | 0.4 | 0.3 | 75.0 | % | ||||||
Total | $ | 6.7 | $ | 1.9 | $ | 4.8 | NM |
Three Months Ended June 30, | ||||||||||
2020 | 2019 | $ Change | % Change | |||||||
Non-service
pension and other postretirement (expense) income | $ | (5.3 | ) | $ | 0.2 | $ | (5.5 | ) | NM | |
Other (expense) income, net | (2.0 | ) | 1.4 | (3.4 | ) | NM | ||||
Total
other income (expense), net | $ | (7.3 | ) | $ | 1.6 | $ | (8.9 | ) | NM |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Non-service pension and other postretirement (expense) income | $ | (1.9 | ) | $ | 0.3 | $ | (2.2 | ) | NM | ||
Other
income, net | 2.1 | 4.7 | (2.6 | ) | (55.3 | )% | |||||
Total other income (expense), net | $ | 0.2 | $ | 5.0 | $ | (4.8 | ) | (96.0 | )% |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | %
Change | ||||||||
Provision for income taxes | $ | 28.0 | $ | 33.6 | $ | (5.6 | ) | (16.7 | )% | ||
Effective tax rate | 31.2 | % | 26.1 | % | 510
bps |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | %
Change | ||||||||
Provision for income taxes | $ | 57.6 | $ | 74.9 | $ | (17.3 | ) | (23.1 | )% | ||
Effective tax rate | 28.3 | % | 28.3 | % | — |
• | The
Company acquired BEKA during the fourth quarter of 2019. The majority of the results for BEKA are reported in the Mobile Industries segment. |
• | The Company acquired Diamond Chain during the second quarter of 2019. The majority of the results for Diamond Chain are reported in the Process Industries segment. |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Net
sales | $ | 342.6 | $ | 493.7 | $ | (151.1 | ) | (30.6 | %) | ||
EBITDA | $ | 38.8 | $ | 78.0 | $ | (39.2 | ) | (50.3 | %) | ||
EBITDA
margin | 11.3 | % | 15.8 | % | (450 | ) bps |
Three
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net sales | $ | 342.6 | $ | 493.7 | $ | (151.1 | ) | (30.6 | %) | ||
Less:
Acquisitions | 21.3 | — | 21.3 | NM | |||||||
Currency | (14.0 | ) | — | (14.0 | ) | NM | |||||
Net
sales, excluding the impact of acquisitions and currency | $ | 335.3 | $ | 493.7 | $ | (158.4 | ) | (32.1 | %) |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Net sales | $ | 809.3 | $ | 993.7 | $ | (151.1 | ) | (15.2 | %) | ||
EBITDA | $ | 113.9 | $ | 157.3 | $ | (43.4 | ) | (27.6 | %) | ||
EBITDA
margin | 14.1 | % | 15.8 | % | (170 | ) bps |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net sales | $ | 809.3 | $ | 993.7 | $ | (184.4 | ) | (18.6 | %) | ||
Less:
Acquisitions | 47.7 | — | 47.7 | NM | |||||||
Currency | (21.5 | ) | — | (21.5 | ) | NM | |||||
Net
sales, excluding the impact of acquisitions and currency | $ | 783.1 | $ | 993.7 | $ | (210.6 | ) | (21.2 | %) |
Three
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Net sales | $ | 460.9 | $ | 506.3 | $ | (45.4 | ) | (9.0 | %) | ||
EBITDA | $ | 126.3 | $ | 125.7 | $ | 0.6 | 0.5 | % | |||
EBITDA
margin | 27.4 | % | 24.8 | % | 260 bps |
Three
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net sales | $ | 460.9 | $ | 506.3 | $ | (45.4 | ) | (9.0 | %) | ||
Less:
Acquisitions | 9.6 | — | 9.6 | NM | |||||||
Currency | (12.5 | ) | — | (12.5 | ) | NM | |||||
Net
sales, excluding the impact of acquisitions and currency | $ | 463.8 | $ | 506.3 | $ | (42.5 | ) | (8.4 | )% |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | Change | ||||||||
Net sales | $ | 917.6 | $ | 986.0 | $ | (68.4 | ) | (6.9 | %) | ||
EBITDA | $ | 233.8 | $ | 253.3 | $ | (19.5 | ) | (7.7 | %) | ||
EBITDA
margin | 25.5 | % | 25.7 | % | (20) bps |
Six
Months Ended June 30, | |||||||||||
2020 | 2019 | $ Change | % Change | ||||||||
Net sales | $ | 917.6 | $ | 986.0 | $ | (68.4 | ) | (6.9 | %) | ||
Less:
Acquisitions | 30.9 | — | 30.9 | NM | |||||||
Currency | (20.9 | ) | — | (20.9 | ) | NM | |||||
Net
sales, excluding the impact of acquisitions and currency | $ | 907.6 | $ | 986.0 | $ | (78.4 | ) | (8.0 | )% |
Three
Months Ended June 30, | ||||||||||
2020 | 2019 | $ Change | Change | |||||||
Corporate EBITDA | $ | (6.5 | ) | $ | (15.3 | ) | $ | 8.8 | (57.5%) | |
Corporate
EBTIDA % to net sales | (0.8 | )% | (1.5 | )% | 70 bps |
Six Months
Ended June 30, | ||||||||||
2020 | 2019 | $ Change | Change | |||||||
Corporate EBITDA | $ | (17.6 | ) | $ | (29.4 | ) | $ | 11.8 | (40.1%) | |
Corporate
EBTIDA % to net sales | (1.0 | )% | (1.5 | )% | 50 bps |
$ Change | % Change | ||||||||||
Cash and cash equivalents | $ | 415.6 | $ | 209.5 | $ | 206.1 | 98.4 | % | |||
Restricted
cash | 0.5 | 6.7 | (6.2 | ) | (92.5 | )% | |||||
Accounts receivable, net | 541.6 | 545.1 | (3.5 | ) | (0.6 | )% | |||||
Unbilled
receivables | 126.2 | 129.2 | (3.0 | ) | (2.3 | )% | |||||
Inventories, net | 784.0 | 842.0 | (58.0 | ) | (6.9 | )% | |||||
Deferred
charges and prepaid expenses | 33.4 | 36.7 | (3.3 | ) | (9.0 | )% | |||||
Other current assets | 105.6 | 105.4 | 0.2 | 0.2 | % | ||||||
Total
current assets | $ | 2,006.9 | $ | 1,874.6 | $ | 132.3 | 7.1 | % |
$ Change | % Change | ||||||||||
Property, plant and equipment, net | $ | 962.1 | $ | 989.2 | $ | (27.1 | ) | (2.7 | )% |
$ Change | % Change | ||||||||||
Goodwill | $ | 996.5 | $ | 993.7 | $ | 2.8 | 0.3 | % | |||
Other
intangible assets | 731.4 | 758.5 | (27.1 | ) | (3.6 | )% | |||||
Operating lease assets | 110.3 | 114.1 | (3.8 | ) | (3.3 | )% | |||||
Non-current
pension assets | 7.9 | 3.4 | 4.5 | 132.4 | % | ||||||
Non-current other postretirement benefit assets | — | 36.6 | (36.6 | ) | (100.0 | )% | |||||
Deferred
income taxes | 69.7 | 71.8 | (2.1 | ) | (2.9 | )% | |||||
Other non-current assets | 16.2 | 18.0 | (1.8 | ) | (10.0 | )% | |||||
Total
other assets | $ | 1,932.0 | $ | 1,996.1 | $ | (64.1 | ) | (3.2 | )% |
$ Change | % Change | ||||||||||
Short-term debt | $ | 42.9 | $ | 17.3 | $ | 25.6 | 148.0 | % | |||
Current
portion of long-term debt | 18.4 | 64.7 | (46.3 | ) | (71.6 | )% | |||||
Short-term operating lease liabilities | 27.5 | 28.3 | (0.8 | ) | (2.8 | )% | |||||
Accounts
payable | 267.3 | 301.7 | (34.4 | ) | (11.4 | )% | |||||
Salaries, wages and benefits | 106.0 | 134.5 | (28.5 | ) | (21.2 | )% | |||||
Income
taxes payable | 31.2 | 17.8 | 13.4 | 75.3 | % | ||||||
Other current liabilities | 171.5 | 172.3 | (0.8 | ) | (0.5 | )% | |||||
Total
current liabilities | $ | 664.8 | $ | 736.6 | $ | (71.8 | ) | (9.7 | )% |
$ Change | % Change | ||||||||||
Long-term
debt | $ | 1,730.1 | $ | 1,648.1 | $ | 82.0 | 5.0 | % | |||
Accrued pension benefits | 173.3 | 165.1 | 8.2 | 5.0 | % | ||||||
Accrued
postretirement benefits | 44.9 | 31.8 | 13.1 | 41.2 | % | ||||||
Long-term operating lease liabilities | 70.2 | 71.3 | (1.1 | ) | (1.5 | )% | |||||
Deferred
income taxes | 158.1 | 168.2 | (10.1 | ) | (6.0 | )% | |||||
Other non-current liabilities | 92.0 | 84.0 | 8.0 | 9.5 | % | ||||||
Total
non-current liabilities | $ | 2,268.6 | $ | 2,168.5 | $ | 100.1 | 4.6 | % |
$ Change | % Change | ||||||||||
Common shares | $ | 977.5 | $ | 990.7 | $ | (13.2 | ) | (1.3 | )% | ||
Earnings
invested in the business | 2,005.7 | 1,907.4 | 98.3 | 5.2 | % | ||||||
Accumulated other comprehensive loss | (99.2 | ) | (50.1 | ) | (49.1 | ) | 98.0 | % | |||
Treasury
shares | (1,000.4 | ) | (979.8 | ) | (20.6 | ) | 2.1 | % | |||
Noncontrolling interest | 84.0 | 86.6 | (2.6 | ) | (3.0 | )% | |||||
Total
shareholders’ equity | $ | 1,967.6 | $ | 1,954.8 | $ | 12.8 | 0.7 | % |
Six
Months Ended June 30, | |||||||||
2020 | 2019 | $ Change | |||||||
Net cash provided by operating activities | $ | 303.6 | $ | 209.9 | $ | 93.7 | |||
Net
cash used in investing activities | (64.7 | ) | (119.8 | ) | 55.1 | ||||
Net cash used in financing activities | (31.3 | ) | (56.9 | ) | 25.6 | ||||
Effect
of exchange rate changes on cash | (7.7 | ) | 1.1 | (8.8 | ) | ||||
Increase in cash, cash equivalents and restricted cash | $ | 199.9 | $ | 34.3 | $ | 165.6 |
Six Months Ended June 30, | |||||||||
2020 | 2019 | $
Change | |||||||
Cash (Used) Provided: | |||||||||
Accounts receivable | $ | (8.4 | ) | $ | (35.9 | ) | $ | 27.5 | |
Unbilled
receivables | 3.0 | (36.6 | ) | 39.6 | |||||
Inventories | 41.3 | 16.6 | 24.7 | ||||||
Trade
accounts payable | (28.9 | ) | 13.4 | (42.3 | ) | ||||
Other accrued expenses | 5.3 | (45.1 | ) | 50.4 | |||||
Cash
(used in) provided by working capital items | $ | 12.3 | $ | (87.6 | ) | $ | 99.9 |
Six Months Ended June 30, | |||||||||
2020 | 2019 | $
Change | |||||||
Accrued income tax expense | $ | 57.6 | $ | 74.9 | $ | (17.3 | ) | ||
Income tax payments | (32.5 | ) | (68.7 | ) | 36.2 | ||||
Other
miscellaneous items | (1.3 | ) | (3.8 | ) | 2.5 | ||||
Change in income taxes | $ | 23.8 | $ | 2.4 | $ | 21.4 |
Short-term debt | $ | 42.9 | $ | 17.3 | ||
Current
portion of long-term debt | 18.4 | 64.7 | ||||
Long-term debt | 1,730.1 | 1,648.1 | ||||
Total debt | $ | 1,791.4 | $ | 1,730.1 | ||
Less:
Cash and cash equivalents | 415.6 | 209.5 | ||||
Net debt | $ | 1,375.8 | $ | 1,520.6 |
Net debt | $ | 1,375.8 | $ | 1,520.6 | ||
Total
equity | 1,967.6 | 1,954.8 | ||||
Net debt plus total equity (capital) | $ | 3,343.4 | $ | 3,475.4 | ||
Ratio of net debt to capital | 41.1 | % | 43.8 | % |
• | deterioration in world economic conditions, or in economic conditions in any of the geographic regions in which the Company
or its customers or suppliers conduct business, including adverse effects from a global economic slowdown, terrorism, or hostilities. This includes: political risks associated with the potential instability of governments and legal systems in countries in which the Company or its customers or suppliers conduct business, changes in currency valuations and recent world events that have increased the risks posed by international trade disputes, tariffs and sanctions; |
• | negative impacts to the Company's business, results of operations, financial position or liquidity, disruption to
the Company's supply chains, negative impacts to customer demand or operations, and availability and health of employees, as a result of COVID-19 or other pandemics and associated governmental measures such as restrictions on travel and manufacturing operations; |
• | the effects of fluctuations in customer demand on sales, product mix and prices in the industries in which the Company operates. This includes: the ability of the Company to respond to rapid changes in customer demand, the effects of customer
or supplier bankruptcies or liquidations, the impact of changes in industrial business cycles, the effects of distributor inventory corrections reflecting de-stocking of the supply chain and whether conditions of fair trade continue in the Company's markets; |
• | competitive factors, including changes in market penetration, increasing price competition by existing or new foreign and domestic competitors, the introduction of new products or services by existing and new competitors, and new technology that may impact the way the Company’s products are produced, sold or distributed; |
• | changes
in operating costs. This includes: the effect of changes in the Company’s manufacturing processes; changes in costs associated with varying levels of operations and manufacturing capacity; availability and cost of raw materials and energy; changes in the expected costs associated with product warranty claims; changes resulting from inventory management and cost reduction initiatives; the effects of unplanned plant shutdowns; and changes in the cost of labor and benefits; |
• | the success of the Company’s operating plans, announced programs, initiatives and capital investments; the
ability to integrate acquired companies; and the ability of acquired companies to achieve satisfactory operating results, including results being accretive to earnings; |
• | the Company’s ability to maintain appropriate relations with unions or works councils that represent Company associates in certain locations in order to avoid disruptions of business and to maintain the continued service of our management and other key employees; |
• | unanticipated
litigation, claims, investigations or assessments. This includes: claims, investigations or problems related to intellectual property, product liability or warranty, foreign export and trade laws, competition and anti-bribery laws, environmental or health and safety issues, data privacy and taxes; |
• | changes in worldwide financial and capital markets, including availability of financing and interest rates on satisfactory terms, which affect the Company’s cost of funds and/or ability to raise capital, as well as customer demand and the ability of customers to obtain financing to purchase the
Company’s products or equipment that contain the Company’s products; |
• | the Company's ability to satisfy its obligations and comply with covenants under its debt agreements, maintain favorable credit ratings and its ability to renew or refinance borrowings on favorable terms; |
• | the impact on the
Company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; and |
• | those items identified under Item 1A. "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 or this Form 10-Q. |
(a) | Disclosure Controls and Procedures |
(b) | Changes in Internal Control Over Financial Reporting |
Period | Total number of
shares purchased (1) | Average price paid per share (2) | Total number of shares purchased as part of publicly announced plans or programs | Maximum number
of shares that may yet be purchased under the plans or programs (3) | |||||
4/1/20 - 4/30/20 | 24 | $ | 30.43 | — | 4,357,042 | ||||
5/1/20
- 5/31/20 | — | — | — | 4,357,042 | |||||
6/1/20 - 6/30/20 | 3,356 | 42.91 | — | 4,357,042 | |||||
Total | 3,380 | $ | 42.82 | — |
(1) | Of
the shares purchased in April and June, 24 and 3,356, respectively, represent common shares of the Company that were owned and tendered by employees to exercise stock options and to satisfy withholding obligations in connection with the exercise of stock options or vesting of restricted shares. |
(2) | For shares tendered in connection with the vesting of restricted shares, the average price paid per share is an average calculated using the daily high and low of the Company's common shares as quoted on the New York Stock Exchange at the time of vesting. For shares tendered in connection
with the exercise of stock options, the price paid is the real-time trading stock price at the time the options are exercised. |
(3) | On February 6, 2017, the Company announced that its Board of Directors approved a share purchase plan pursuant to which the Company may purchase up to ten million of its common shares in the aggregate. This share repurchase plan expires on February 28, 2021. The Company
may purchase shares from time to time in open market purchases or privately negotiated transactions. The Company may make all or part of the purchases pursuant to accelerated share repurchases or Rule 10b5-1 plans. |
Certification
of Richard G. Kyle, President and Chief Executive Officer (principal executive officer) of The Timken Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of Philip D. Fracassa, Executive Vice President and Chief Financial Officer (principal financial officer) of The Timken Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certifications
of Richard G. Kyle, President and Chief Executive Officer (principal executive officer) and Philip D. Fracassa, Executive Vice President and Chief Financial Officer (principal financial officer) of The Timken Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Financial statements from the quarterly report on Form 10-Q of The Timken Company for the quarter ended June 30, 2020 filed on August
3, 2020, formatted in Inline XBRL: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements. | |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
THE TIMKEN COMPANY | ||
Date:
August 3, 2020 | By: /s/ Richard G. Kyle | |
President and Chief Executive Officer (Principal Executive Officer) | ||
Date:
August 3, 2020 | By: /s/ Philip D. Fracassa | |
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/30/33 | ||||
12/15/28 | ||||
9/7/27 | ||||
9/1/24 | ||||
6/25/24 | ||||
9/11/23 | ||||
12/31/22 | ||||
11/30/21 | ||||
6/30/21 | 10-Q | |||
2/28/21 | ||||
12/31/20 | 10-K, 11-K, 5, SD | |||
12/15/20 | ||||
9/18/20 | ||||
Filed on: | 8/3/20 | 8-K | ||
For Period end: | 6/30/20 | |||
5/27/20 | 8-K | |||
3/31/20 | 10-Q | |||
3/27/20 | ||||
2/4/20 | ||||
1/1/20 | ||||
12/31/19 | 10-K, SD | |||
12/15/19 | ||||
11/1/19 | ||||
10/16/19 | ||||
7/12/19 | 8-K | |||
6/30/19 | 10-Q | |||
6/25/19 | 11-K, 8-K | |||
4/1/19 | 8-K | |||
3/31/19 | 10-Q | |||
12/31/18 | 10-K, 5, SD | |||
9/18/18 | ||||
9/11/18 | ||||
9/1/18 | ||||
9/18/17 | ||||
2/6/17 | ||||
12/28/04 | ||||
List all Filings |