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As Of Filer Filing For·On·As Docs:Size 7/28/22 Timken Co. 10-Q 6/30/22 94:11M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 2.29M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 27K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 28K 4: EX-32 Certification -- §906 - SOA'02 HTML 26K 10: R1 Cover HTML 75K 11: R2 Consolidated Statements of Income HTML 109K 12: R3 Consolidated Statements of Comprehensive Income HTML 63K 13: R4 Consolidated Balance Sheets HTML 168K 14: R5 Consolidated Balance Sheets (Parenthetical) HTML 40K 15: R6 Consolidated Statements of Cash Flows HTML 128K 16: R7 Consolidated Statements of Cash Flows HTML 25K (Parenthetical) 17: R8 Basis of Presentation HTML 26K 18: R9 Significant Accounting Policies HTML 31K 19: R10 Acquisitions HTML 55K 20: R11 Revenue HTML 86K 21: R12 Segment Information HTML 66K 22: R13 Income Taxes HTML 38K 23: R14 Earnings Per Share HTML 52K 24: R15 Inventories HTML 37K 25: R16 Goodwill and Other Intangible Assets HTML 69K 26: R17 Other Current Liabilities HTML 38K 27: R18 Financing Arrangements HTML 63K 28: R19 Contingencies HTML 38K 29: R20 Equity HTML 130K 30: R21 Impairment and Restructuring Charges HTML 76K 31: R22 Retirement Benefit Plans HTML 78K 32: R23 Other Postretirement Benefit Plans HTML 46K 33: R24 Accumulated Other Comprehensive Income (Loss) HTML 97K 34: R25 Fair Value HTML 78K 35: R26 Derivatives Instruments and Hedging Activities HTML 43K 36: R27 Significant Accounting Policies (Policies) HTML 28K 37: R28 Acquisitions (Tables) HTML 54K 38: R29 Revenue (Tables) HTML 82K 39: R30 Segment Information (Tables) HTML 63K 40: R31 Income Taxes (Tables) HTML 35K 41: R32 Earnings Per Share (Tables) HTML 51K 42: R33 Inventories (Tables) HTML 36K 43: R34 Goodwill and Other Intangible Assets (Tables) HTML 108K 44: R35 Other Current Liabilities (Tables) HTML 38K 45: R36 Financing Arrangements (Tables) HTML 60K 46: R37 Contingencies (Tables) HTML 32K 47: R38 Equity (Tables) HTML 126K 48: R39 Impairment and Restructuring Charges (Tables) HTML 69K 49: R40 Retirement Benefit Plans (Tables) HTML 74K 50: R41 Other Postretirement Benefit Plans (Tables) HTML 44K 51: R42 Accumulated Other Comprehensive Income (Loss) HTML 96K (Tables) 52: R43 Fair Value (Tables) HTML 70K 53: R44 Derivatives Instruments and Hedging Activities HTML 34K (Tables) 54: R45 Acquisitions - Narrative (Details) HTML 41K 55: R46 Acquisitions - Initial Purchase Price Allocation HTML 66K (Details) 56: R47 Acquisitions - Preliminary Purchase Price HTML 39K Allocation of Identifiable Intangible Assets Acquired (Details) 57: R48 Acquisitions - Final Purchase Price Allocation HTML 32K (Details) 58: R49 Revenue - Disaggregation of Revenue (Details) HTML 68K 59: R50 Revenue - Narrative (Details) HTML 39K 60: R51 Revenue - Schedule of Contract with Customer, HTML 32K Asset and Liability (Details) 61: R52 Segment Information (Details) HTML 59K 62: R53 Income Taxes - Components of Income Tax Expense HTML 30K (Benefit) (Details) 63: R54 Income Taxes - Narrative (Details) HTML 26K 64: R55 Earnings Per Share - Denominator of Basic and HTML 66K Diluted Earnings Per Share (Details) 65: R56 Earnings Per Share - Narrative (Details) HTML 26K 66: R57 Inventories - Components of Inventories (Details) HTML 39K 67: R58 Inventories - Narrative (Details) HTML 29K 68: R59 Goodwill and Other Intangible Assets - Carrying HTML 38K Value of Goodwill (Details) 69: R60 Goodwill and Other Intangible Assets - Narrative HTML 46K (Details) 70: R61 Goodwill and Other Intangible Assets - Intangible HTML 62K Assets (Details) 71: R62 Other Current Liabilities (Details) HTML 47K 72: R63 Financing Arrangements - Short Term Debt (Details) HTML 33K 73: R64 Financing Arrangements - Narrative (Details) HTML 67K 74: R65 Financing Arrangements - Long Term Debt (Details) HTML 69K 75: R66 Financing Arrangements - Maturities (Details) HTML 45K 76: R67 Contingencies - Narratives (Details) HTML 29K 77: R68 Contingencies - Schedule of Product Warranty HTML 31K (Details) 78: R69 Equity (Details) HTML 94K 79: R70 Impairment and Restructuring Charges - HTML 40K Restructuring Charges by Segment (Details) 80: R71 Impairment and Restructuring Charges - Narrative HTML 66K (Details) 81: R72 Impairment and Restructuring Charges - HTML 32K Consolidated Restructuring Accrual (Details) 82: R73 Retirement Benefit Plans - Components of Net HTML 55K Periodic Benefit Cost (Details) 83: R74 Retirement Benefit Plans - Narrative (Details) HTML 32K 84: R75 Other Postretirement Benefit Plans (Details) HTML 38K 85: R76 Accumulated Other Comprehensive Income (Loss) HTML 80K (Details) 86: R77 Fair Value - Fair Value on Recurring Basis HTML 59K (Details) 87: R78 Fair Value - Narrative (Details) HTML 39K 88: R79 Derivatives Instruments and Hedging Activities - HTML 51K Narrative (Details) 89: R80 Derivatives Instruments and Hedging Activities - HTML 27K Cash Flow Hedging Strategy (Details) 92: XML IDEA XML File -- Filing Summary XML 170K 90: XML XBRL Instance -- tkr-20220630_htm XML 2.98M 91: EXCEL IDEA Workbook of Financial Reports XLSX 151K 6: EX-101.CAL XBRL Calculations -- tkr-20220630_cal XML 237K 7: EX-101.DEF XBRL Definitions -- tkr-20220630_def XML 580K 8: EX-101.LAB XBRL Labels -- tkr-20220630_lab XML 1.50M 9: EX-101.PRE XBRL Presentations -- tkr-20220630_pre XML 974K 5: EX-101.SCH XBRL Schema -- tkr-20220630 XSD 150K 93: JSON XBRL Instance as JSON Data -- MetaLinks 433± 641K 94: ZIP XBRL Zipped Folder -- 0000098362-22-000086-xbrl Zip 859K
tkr-20220630 |
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,
2022 | |||||||||||||
Common Shares, without par value | i 73,447,492 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, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
Net sales | $ | i 1,153.7 | $ | i 1,062.9 | $ | i 2,278.3 | $ | i 2,088.3 | |||||||||||||||
Cost of products sold | i 811.9 | i 760.6 | i 1,609.1 | i 1,486.8 | |||||||||||||||||||
Gross Profit | i 341.8 | i 302.3 | i 669.2 | i 601.5 | |||||||||||||||||||
Selling, general and administrative expenses | i 155.9 | i 149.0 | i 310.0 | i 293.5 | |||||||||||||||||||
Impairment and restructuring charges | i 10.0 | i 1.3 | i 11.0 | i 5.3 | |||||||||||||||||||
Operating Income | i 175.9 | i 152.0 | i 348.2 | i 302.7 | |||||||||||||||||||
Interest expense | ( i 18.3) | ( i 15.3) | ( i 32.6) | ( i 30.2) | |||||||||||||||||||
Interest income | i 1.0 | i 0.7 | i 1.6 | i 1.2 | |||||||||||||||||||
Non-service pension and other postretirement (expense) income | ( i 7.9) | i 1.4 | ( i 6.6) | i 5.4 | |||||||||||||||||||
Other expense, net | ( i 1.1) | ( i 2.2) | ( i 0.9) | ( i 1.2) | |||||||||||||||||||
Income Before Income Taxes | i 149.6 | i 136.6 | i 309.7 | i 277.9 | |||||||||||||||||||
Provision for income taxes | i 44.0 | i 29.4 | i 82.2 | i 54.7 | |||||||||||||||||||
Net Income | i 105.6 | i 107.2 | i 227.5 | i 223.2 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | i 0.6 | i 2.4 | i 4.3 | i 5.1 | |||||||||||||||||||
Net Income Attributable to The Timken Company | $ | i 105.0 | $ | i 104.8 | $ | i 223.2 | $ | i 218.1 | |||||||||||||||
Net
Income per Common Share Attributable to The Timken Company Common Shareholders | |||||||||||||||||||||||
Basic earnings per share | $ | i 1.43 | $ | i 1.38 | $ | i 3.01 | $ | i 2.87 | |||||||||||||||
Diluted earnings per share | $ | i 1.42 | $ | i 1.36 | $ | i 2.98 | $ | i 2.82 | |||||||||||||||
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Net Income | $ | i 105.6 | $ | i 107.2 | $ | i 227.5 | $ | i 223.2 | |||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( i 113.1) | i 23.2 | ( i 135.7) | ( i 21.2) | |||||||||||||||||||
Pension and postretirement liability adjustments | ( i 1.4) | ( i 1.7) | ( i 2.9) | ( i 3.3) | |||||||||||||||||||
Change in fair value of derivative financial instruments | i 2.2 | ( i 0.2) | i 4.2 | i 2.0 | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( i 112.3) | i 21.3 | ( i 134.4) | ( i 22.5) | |||||||||||||||||||
Comprehensive (loss) income, net of tax | ( i 6.7) | i 128.5 | i 93.1 | i 200.7 | |||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interest | i 1.7 | i 1.8 | i 2.8 | i 4.1 | |||||||||||||||||||
Comprehensive
(loss) income attributable to The Timken Company | $ | ( i 8.4) | $ | i 126.7 | $ | i 90.3 | $ | i 196.6 |
(Unaudited) | |||||||||||
(Dollars in millions) | June 30, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | i 305.3 | $ | i 257.1 | |||||||
Restricted cash | i 0.7 | i 0.8 | |||||||||
Accounts
receivable, less allowances (2022 – $ i 17.5 million; 2021 – $ i 16.9 million) | i 756.3 | i 626.4 | |||||||||
Unbilled receivables | i 107.3 | i 104.5 | |||||||||
Inventories, net | i 1,158.0 | i 1,042.7 | |||||||||
Deferred charges and prepaid expenses | i 40.5 | i 32.2 | |||||||||
Other current assets | i 112.3 | i 149.8 | |||||||||
Total Current Assets | i 2,480.4 | i 2,213.5 | |||||||||
Property, Plant and Equipment, net | i 1,096.1 | i 1,055.3 | |||||||||
Other Assets | |||||||||||
Goodwill | i 1,015.1 | i 1,022.7 | |||||||||
Other intangible assets | i 648.1 | i 668.8 | |||||||||
Operating lease assets | i 109.1 | i 118.9 | |||||||||
Deferred income taxes | i 64.1 | i 67.6 | |||||||||
Other non-current assets | i 29.6 | i 23.9 | |||||||||
Total Other Assets | i 1,866.0 | i 1,901.9 | |||||||||
Total Assets | $ | i 5,442.5 | $ | i 5,170.7 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable, trade | i 397.2 | i 430.0 | |||||||||
Short-term debt, including current portion of long-term debt | i 81.6 | i 53.8 | |||||||||
Salaries, wages and benefits | i 135.4 | i 136.0 | |||||||||
Income taxes payable | i 36.4 | i 26.2 | |||||||||
Other current liabilities | i 269.9 | i 250.6 | |||||||||
Total Current Liabilities | i 920.5 | i 896.6 | |||||||||
Non-Current Liabilities | |||||||||||
Long-term debt | i 1,734.3 | i 1,411.1 | |||||||||
Accrued pension benefits | i 164.0 | i 155.6 | |||||||||
Accrued postretirement benefits | i 44.7 | i 45.8 | |||||||||
Long-term operating lease liabilities | i 70.8 | i 77.6 | |||||||||
Deferred income taxes | i 120.5 | i 121.4 | |||||||||
Other non-current liabilities | i 98.5 | i 84.9 | |||||||||
Total Non-Current Liabilities | i 2,232.8 | i 1,896.4 | |||||||||
Shareholders’ Equity | |||||||||||
Class I and II Serial Preferred Stock, without par value: | |||||||||||
Authorized – i i i i 10,000,000 / / /
shares each class, i i i i none / / /
issued | i — | i — | |||||||||
Common shares, without par value: | |||||||||||
Authorized – i i 200,000,000 /
shares | |||||||||||
Issued (including shares in treasury) (2022 – i 77,532,871 shares; 2021 – i 77,090,104
shares) | |||||||||||
Stated capital | i 40.7 | i 40.7 | |||||||||
Other paid-in capital | i 804.1 | i 786.9 | |||||||||
Retained earnings | i 1,793.2 | i 1,616.4 | |||||||||
Accumulated other comprehensive loss | ( i 155.9) | ( i 23.0) | |||||||||
Treasury
shares at cost (2022 – i 4,085,379 shares; 2021 – i 1,715,282 shares) | ( i 278.5) | ( i 126.1) | |||||||||
Total Shareholders’ Equity | i 2,203.6 | i 2,294.9 | |||||||||
Noncontrolling Interest | i 85.6 | i 82.8 | |||||||||
Total Equity | i 2,289.2 | i 2,377.7 | |||||||||
Total Liabilities and Equity | $ | i 5,442.5 | $ | i 5,170.7 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
CASH PROVIDED (USED) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | i 227.5 | $ | i 223.2 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | i 82.1 | i 85.2 | |||||||||
Impairment charges | i 8.8 | i 4.5 | |||||||||
Loss on sale of assets | i 0.8 | i 0.7 | |||||||||
Acquisition-related gain | i — | ( i 0.6) | |||||||||
Deferred income tax provision (benefit) | i 1.7 | ( i 5.8) | |||||||||
Stock-based compensation expense | i 15.6 | i 12.5 | |||||||||
Pension and other postretirement expense | i 11.2 | i 0.5 | |||||||||
Pension and other postretirement benefit contributions and payments | ( i 8.1) | ( i 15.0) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( i 149.3) | ( i 125.8) | |||||||||
Unbilled receivables | ( i 2.9) | i 10.4 | |||||||||
Inventories | ( i 126.1) | ( i 81.4) | |||||||||
Accounts payable, trade | ( i 6.1) | i 41.2 | |||||||||
Other accrued expenses | i 16.6 | i 30.8 | |||||||||
Income taxes | i 12.1 | ( i 1.6) | |||||||||
Other, net | ( i 6.8) | i — | |||||||||
Net Cash Provided by Operating Activities | i 77.1 | i 178.8 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | ( i 75.2) | ( i 60.5) | |||||||||
Acquisitions,
net of cash acquired of $ i 0.2 million | ( i 152.3) | i 0.1 | |||||||||
Proceeds from disposal of property, plant and equipment | i 3.1 | i — | |||||||||
Investments in short-term marketable securities, net | i 23.4 | ( i 13.8) | |||||||||
Other, net | i 2.3 | i 0.3 | |||||||||
Net Cash Used in Investing Activities | ( i 198.7) | ( i 73.9) | |||||||||
Financing Activities | |||||||||||
Cash dividends paid to shareholders | ( i 46.4) | ( i 46.7) | |||||||||
Purchase of treasury shares | ( i 144.3) | ( i 26.3) | |||||||||
Proceeds from exercise of stock options | i 1.6 | i 25.4 | |||||||||
Payments related to tax withholding for stock-based compensation | ( i 8.1) | ( i 23.5) | |||||||||
Borrowings on accounts receivable facility | i 122.0 | i 66.1 | |||||||||
Payments on accounts receivable facility | ( i 122.0) | ( i 124.1) | |||||||||
Proceeds from long-term debt | i 684.5 | i 135.0 | |||||||||
Payments on long-term debt | ( i 344.8) | ( i 141.4) | |||||||||
Deferred financing costs | ( i 3.5) | i — | |||||||||
Short-term debt activity, net | i 31.9 | i 16.6 | |||||||||
Other | i 6.5 | i — | |||||||||
Net Cash Provided by (Used in) Financing Activities | i 177.4 | ( i 118.9) | |||||||||
Effect of exchange rate changes on cash | ( i 7.7) | ( i 0.8) | |||||||||
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | i 48.1 | ( i 14.8) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | i 257.9 | i 321.1 | |||||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | i 306.0 | $ | i 306.3 |
Initial
Purchase Price Allocation | |||||||||||
Assets: | |||||||||||
Accounts receivable | $ | i 2.1 | |||||||||
Inventories | i 20.9 | ||||||||||
Other current assets | i 2.9 | ||||||||||
Property, plant and equipment | i 82.6 | ||||||||||
Goodwill | i 39.0 | ||||||||||
Other intangible assets | i 31.7 | ||||||||||
Total assets acquired | $ | i 179.2 | |||||||||
Liabilities: | |||||||||||
Accounts payable, trade | $ | i 7.4 | |||||||||
Salaries, wages and benefits | i 1.4 | ||||||||||
Other current liabilities | i 1.2 | ||||||||||
Short-term debt | i 0.1 | ||||||||||
Long-term debt | i 0.2 | ||||||||||
Deferred income taxes | i 1.0 | ||||||||||
Other non-current liabilities | i 15.6 | ||||||||||
Total liabilities assumed | $ | i 26.9 | |||||||||
Net assets acquired | $ | i 152.3 |
Preliminary Purchase Price Allocation | ||||||||
Weighted - Average Life | ||||||||
Trade names | $ | i 8.2 | i 20 years | |||||
Technology and know-how | i 6.1 | i 6 years | ||||||
Customer relationships | i 17.2 | i 17 years | ||||||
Capitalized software | i 0.2 | i 2 years | ||||||
Total intangible assets | $ | i 31.7 |
Final Purchase Price Allocation | |||||
Total assets acquired | $ | i 9.8 | |||
Total liabilities assumed | i 2.1 | ||||
Net assets acquired | $ | i 7.7 |
Three Months Ended | Three Months Ended | |||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||
Mobile | Process | Total | Mobile | Process | Total | |||||||||||||||
United States | $ | i 270.3 | $ | i 229.9 | $ | i 500.2 | $ | i 237.4 | $ | i 201.6 | $ | i 439.0 | ||||||||
Americas excluding the United States | i 63.7 | i 64.6 | i 128.3 | i 52.3 | i 49.1 | i 101.4 | ||||||||||||||
Europe / Middle East / Africa | i 118.1 | i 141.8 | i 259.9 | i 124.3 | i 137.2 | i 261.5 | ||||||||||||||
China | i 31.2 | i 123.7 | i 154.9 | i 32.2 | i 138.4 | i 170.6 | ||||||||||||||
Asia-Pacific excluding China | i 60.3 | i 50.1 | i 110.4 | i 48.0 | i 42.4 | i 90.4 | ||||||||||||||
Net sales | $ | i 543.6 | $ | i 610.1 | $ | i 1,153.7 | $ | i 494.2 | $ | i 568.7 | $ | i 1,062.9 |
Six Months Ended | Six Months Ended | |||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||
Mobile | Process | Total | Mobile | Process | Total | |||||||||||||||
United States | $ | i 532.5 | $ | i 456.5 | $ | i 989.0 | $ | i 480.3 | $ | i 387.8 | $ | i 868.1 | ||||||||
Americas excluding the United States | i 121.8 | i 119.7 | i 241.5 | i 101.1 | i 92.3 | i 193.4 | ||||||||||||||
Europe / Middle East / Africa | i 247.5 | i 277.4 | i 524.9 | i 251.4 | i 264.4 | i 515.8 | ||||||||||||||
China | i 61.9 | i 244.4 | i 306.3 | i 66.6 | i 262.7 | i 329.3 | ||||||||||||||
Asia-Pacific excluding China | i 120.3 | i 96.3 | i 216.6 | i 99.3 | i 82.4 | i 181.7 | ||||||||||||||
Net sales | $ | i 1,084.0 | $ | i 1,194.3 | $ | i 2,278.3 | $ | i 998.7 | $ | i 1,089.6 | $ | i 2,088.3 |
Six Months Ended | Six Months Ended | |||||||
Revenue by sales channel | June 30, 2022 | June 30, 2021 | ||||||
Original equipment manufacturers | i 60% | i 61% | ||||||
Distribution/end users | i 40% | i 39% |
June 30, 2022 | December 31, 2021 | |||||||
Beginning balance, January 1 | $ | i 104.5 | $ | i 110.9 | ||||
Additional unbilled revenue recognized | i 201.5 | i 383.0 | ||||||
Less: amounts billed to customers | ( i 198.7) | ( i 389.4) | ||||||
Ending balance | $ | i 107.3 | $ | i 104.5 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Mobile Industries | $ | i 543.6 | $ | i 494.2 | $ | i 1,084.0 | $ | i 998.7 | |||||||||||||||
Process Industries | i 610.1 | i 568.7 | i 1,194.3 | i 1,089.6 | |||||||||||||||||||
Net sales | $ | i 1,153.7 | $ | i 1,062.9 | $ | i 2,278.3 | $ | i 2,088.3 | |||||||||||||||
Segment EBITDA: | |||||||||||||||||||||||
Mobile Industries | $ | i 69.1 | $ | i 67.3 | $ | i 144.2 | $ | i 146.9 | |||||||||||||||
Process Industries | i 163.5 | i 141.2 | i 319.1 | i 272.2 | |||||||||||||||||||
Total EBITDA, for reportable segments | $ | i 232.6 | $ | i 208.5 | $ | i 463.3 | $ | i 419.1 | |||||||||||||||
Unallocated corporate expense | ( i 13.4) | ( i 11.6) | ( i 26.3) | ( i 23.2) | |||||||||||||||||||
Corporate
pension and other postretirement benefit related expense (1) | ( i 11.6) | ( i 3.5) | ( i 14.2) | ( i 4.4) | |||||||||||||||||||
Acquisition-related
gain (2) | i — | i — | i — | i 0.6 | |||||||||||||||||||
Depreciation and amortization | ( i 40.7) | ( i 42.2) | ( i 82.1) | ( i 85.2) | |||||||||||||||||||
Interest expense | ( i 18.3) | ( i 15.3) | ( i 32.6) | ( i 30.2) | |||||||||||||||||||
Interest income | i 1.0 | i 0.7 | i 1.6 | i 1.2 | |||||||||||||||||||
Income before income taxes | $ | i 149.6 | $ | i 136.6 | $ | i 309.7 | $ | i 277.9 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Provision for income taxes | $ | i 44.0 | $ | i 29.4 | $ | i 82.2 | $ | i 54.7 | |||||||||
Effective tax rate | i 29.4 | % | i 21.5 | % | i 26.5 | % | i 19.7 | % |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to The Timken Company | $ | i 105.0 | $ | i 104.8 | $ | i 223.2 | $ | i 218.1 | |||||||||||||||
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 105.0 | $ | i 104.8 | $ | i 223.2 | $ | i 218.1 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average number of shares outstanding - basic | i 73,660,410 | i 76,122,257 | i 74,234,300 | i 75,969,569 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock options and awards - based on the treasury stock method | i 522,383 | i 1,131,900 | i 642,948 | i 1,288,192 | |||||||||||||||||||
Weighted
average number of shares outstanding assuming dilution of stock options and awards | i 74,182,793 | i 77,254,157 | i 74,877,248 | i 77,257,761 | |||||||||||||||||||
Basic earnings per share | $ | i 1.43 | $ | i 1.38 | $ | i 3.01 | $ | i 2.87 | |||||||||||||||
Diluted earnings per share | $ | i 1.42 | $ | i 1.36 | $ | i 2.98 | $ | i 2.82 |
June 30, 2022 | December 31, 2021 | ||||||||||
Manufacturing supplies | $ | i 39.6 | $ | i 38.0 | |||||||
Raw materials | i 121.9 | i 121.8 | |||||||||
Work in process | i 469.4 | i 418.4 | |||||||||
Finished products | i 594.9 | i 527.8 | |||||||||
Subtotal | i 1,225.8 | i 1,106.0 | |||||||||
Allowance for obsolete and surplus inventory | ( i 67.8) | ( i 63.3) | |||||||||
Total inventories, net | $ | i 1,158.0 | $ | i 1,042.7 |
Mobile Industries | Process Industries | Total | ||||||||||||
Beginning balance | $ | i 371.7 | $ | i 651.0 | $ | i 1,022.7 | ||||||||
Acquisitions | i — | i 39.0 | i 39.0 | |||||||||||
Foreign currency translation adjustments and other changes | ( i 19.4) | ( i 27.2) | ( i 46.6) | |||||||||||
Ending balance | $ | i 352.3 | $ | i 662.8 | $ | i 1,015.1 |
Balance at June 30, 2022 | Balance at December 31, 2021 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Intangible
assets subject to amortization: | ||||||||||||||||||||
Customer relationships | $ | i 514.9 | $ | ( i 197.7) | $ | i 317.2 | $ | i 518.1 | $ | ( i 189.3) | $ | i 328.8 | ||||||||
Technology and know-how | i 265.9 | ( i 92.0) | i 173.9 | i 270.7 | ( i 86.6) | i 184.1 | ||||||||||||||
Trade names | i 20.6 | ( i 8.6) | i 12.0 | i 14.3 | ( i 9.6) | i 4.7 | ||||||||||||||
Capitalized software | i 283.7 | ( i 264.1) | i 19.6 | i 280.0 | ( i 261.3) | i 18.7 | ||||||||||||||
Other | i 3.2 | ( i 2.5) | i 0.7 | i 4.7 | ( i 3.6) | i 1.1 | ||||||||||||||
$ | i 1,088.3 | $ | ( i 564.9) | $ | i 523.4 | $ | i 1,087.8 | $ | ( i 550.4) | $ | i 537.4 | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||||||||
Trade names | $ | i 116.0 | $ | i 116.0 | $ | i 122.7 | $ | i 122.7 | ||||||||||||
FAA air agency certificates | i 8.7 | i 8.7 | i 8.7 | i 8.7 | ||||||||||||||||
$ | i 124.7 | $ | i 124.7 | $ | i 131.4 | $ | i 131.4 | |||||||||||||
Total intangible assets | $ | i 1,213.0 | $ | ( i 564.9) | $ | i 648.1 | $ | i 1,219.2 | $ | ( i 550.4) | $ | i 668.8 |
June 30, | December 31, | |||||||
(Dollars in millions) | 2022 | 2021 | ||||||
Sales rebates | $ | i 56.1 | $ | i 70.3 | ||||
Freight and duties | i 25.5 | i 25.5 | ||||||
Operating lease liabilities | i 24.2 | i 26.2 | ||||||
Product warranty | i 17.2 | i 11.7 | ||||||
Professional fees | i 12.6 | i 10.8 | ||||||
Restructuring | i 5.5 | i 7.0 | ||||||
Taxes other than income and payroll taxes | i 19.2 | i 16.0 | ||||||
Interest | i 14.2 | i 10.8 | ||||||
Other | i 95.4 | i 72.3 | ||||||
Total other current liabilities | $ | i 269.9 | $ | i 250.6 |
June 30, 2022 | December 31, 2021 | |||||||
Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging
from i 0.50% to i 2.10% at June 30, 2022 and i 0.50%
to i 2.00% at December 31, 2021 | $ | i 70.3 | $ | i 42.6 | ||||
Short-term debt | $ | i 70.3 | $ | i 42.6 |
June
30, 2022 | December 31, 2021 | |||||||
Variable-rate Senior Credit Facility with an average interest rate on Euro of i 1.00% at June 30, 2022 and U.S. Dollar of i 1.09%
and Euro of i 1.00% at December 31, 2021 | $ | i 8.3 | $ | i 9.0 | ||||
Variable-rate
Term Loan(1), maturing on September 11, 2023, with an interest rate of i 2.79% at June 30, 2022 and i 1.23%
at December 31, 2021 | i 316.9 | i 321.1 | ||||||
Fixed-rate
Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of i i 3.875 / % | i 349.7 | i 349.5 | ||||||
Fixed-rate
Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of i i 2.02 / % | i 157.0 | i 170.3 | ||||||
Fixed-rate
Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of i i 4.50 / % | i 397.0 | i 396.9 | ||||||
Fixed-rate
Medium-Term Notes, Series A(1), maturing at various dates through May 2028, with interest rates ranging from i i 6.74 / %
to i i 7.76 / % | i 154.7 | i 154.7 | ||||||
Fixed-rate
Senior Unsecured Notes(1), maturing on April 1, 2032, with an interest rate of i i 4.125 / % | i 341.2 | i — | ||||||
Fixed-rate
Euro Bank Loan, maturing on June 30, 2033, with an interest rate of i i 2.15 / % | i 13.9 | i 15.8 | ||||||
Other | i 6.9 | i 5.0 | ||||||
Total debt | $ | i 1,745.6 | $ | i 1,422.3 | ||||
Less: Current maturities | i 11.3 | i 11.2 | ||||||
Long-term debt | $ | i 1,734.3 | $ | i 1,411.1 |
Year | |||||
2022 | $ | i 6.3 | |||
2023 | i 318.3 | ||||
2024 | i 360.0 | ||||
2025 | i 1.7 | ||||
2026 | i 11.5 | ||||
2027 | i 183.2 | ||||
Thereafter | i 864.6 |
June
30, 2022 | December 31, 2021 | ||||||||||
Beginning balance, January 1 | $ | i 11.7 | $ | i 9.4 | |||||||
Expense | i 7.6 | i 10.1 | |||||||||
Payments | ( i 2.1) | ( i 7.8) | |||||||||
Ending balance | $ | i 17.2 | $ | i 11.7 |
The Timken Company Shareholders | |||||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non controlling Interest | |||||||||||||||||
Balance at March 31, 2022 | $ | i 2,355.0 | $ | i 40.7 | $ | i 795.4 | $ | i 1,711.1 | $ | ( i 42.5) | $ | ( i 233.6) | $ | i 83.9 | |||||||||
Net income | i 105.6 | i 105.0 | i 0.6 | ||||||||||||||||||||
Foreign currency translation adjustment | ( i 113.1) | ( i 114.2) | i 1.1 | ||||||||||||||||||||
Pension
and other postretirement liability adjustments (net of income tax benefit of $ i 0.5 million) | ( i 1.4) | ( i 1.4) | |||||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | i 2.2 | i 2.2 | |||||||||||||||||||||
Dividends
– $ i 0.31 per share | ( i 22.9) | ( i 22.9) | |||||||||||||||||||||
Stock-based compensation expense | i 8.5 | i 8.5 | |||||||||||||||||||||
Stock purchased at fair market value | ( i 44.3) | ( i 44.3) | |||||||||||||||||||||
Stock option exercise activity | i 0.2 | i 0.2 | |||||||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 0.6) | ( i 0.6) | |||||||||||||||||||||
Balance at June 30, 2022 | $ | i 2,289.2 | $ | i 40.7 | $ | i 804.1 | $ | i 1,793.2 | $ | ( i 155.9) | $ | ( i 278.5) | $ | i 85.6 |
The Timken Company Shareholders | |||||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non controlling Interest | |||||||||||||||||
Balance at December 31, 2021 | $ | i 2,377.7 | $ | i 40.7 | $ | i 786.9 | $ | i 1,616.4 | $ | ( i 23.0) | $ | ( i 126.1) | $ | i 82.8 | |||||||||
Net income | i 227.5 | i 223.2 | i 4.3 | ||||||||||||||||||||
Foreign currency translation adjustment | ( i 135.7) | ( i 134.2) | ( i 1.5) | ||||||||||||||||||||
Pension
and other postretirement liability adjustments (net of income tax benefit of $ i 1.0 million) | ( i 2.9) | ( i 2.9) | |||||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | i 4.2 | i 4.2 | |||||||||||||||||||||
Dividends
- $ i 0.61 per share | ( i 46.4) | ( i 46.4) | |||||||||||||||||||||
Stock-based compensation expense | i 15.6 | i 15.6 | |||||||||||||||||||||
Stock purchased at fair market value | ( i 144.3) | ( i 144.3) | |||||||||||||||||||||
Stock option exercise activity | i 1.6 | i 1.6 | |||||||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 8.1) | ( i 8.1) | |||||||||||||||||||||
Balance at June 30, 2022 | $ | i 2,289.2 | $ | i 40.7 | $ | i 804.1 | $ | i 1,793.2 | $ | ( i 155.9) | $ | ( i 278.5) | $ | i 85.6 |
The Timken Company Shareholders | |||||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non controlling Interest | |||||||||||||||||
Balance at March 31, 2021 | $ | i 2,250.1 | $ | i 40.7 | $ | i 761.3 | $ | i 1,429.0 | $ | ( i 2.1) | $ | ( i 53.4) | $ | i 74.6 | |||||||||
Net income | i 107.2 | i 104.8 | i 2.4 | ||||||||||||||||||||
Foreign currency translation adjustment | i 23.2 | i 23.8 | ( i 0.6) | ||||||||||||||||||||
Pension
and other postretirement liability adjustments (net of income tax benefit of $ i 0.5 million) | ( i 1.7) | ( i 1.7) | |||||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | ( i 0.2) | ( i 0.2) | |||||||||||||||||||||
Dividends
- $ i 0.30 per share | ( i 22.9) | ( i 22.9) | |||||||||||||||||||||
Stock-based compensation expense | i 6.0 | i 6.0 | |||||||||||||||||||||
Stock option exercise activity | i 11.3 | i 11.3 | |||||||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 5.7) | ( i 5.7) | |||||||||||||||||||||
Balance at June 30, 2021 | $ | i 2,367.3 | $ | i 40.7 | $ | i 778.6 | $ | i 1,510.9 | $ | i 19.8 | $ | ( i 59.1) | $ | i 76.4 |
The Timken Company Shareholders | |||||||||||||||||||||||
Total | Stated Capital | Other Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Non controlling Interest | |||||||||||||||||
Balance at December 31, 2020 | $ | i 2,225.2 | $ | i 40.7 | $ | i 740.7 | $ | i 1,339.5 | $ | i 41.3 | $ | ( i 9.3) | $ | i 72.3 | |||||||||
Net income | i 223.2 | i 218.1 | i 5.1 | ||||||||||||||||||||
Foreign currency translation adjustment | ( i 21.2) | ( i 20.2) | ( i 1.0) | ||||||||||||||||||||
Pension
and other postretirement liability adjustments (net of income tax benefit of $ i 1.1 million) | ( i 3.3) | ( i 3.3) | |||||||||||||||||||||
Change
in fair value of derivative financial instruments, net of reclassifications | i 2.0 | i 2.0 | |||||||||||||||||||||
Dividends
- $ i 0.59 per share | ( i 46.7) | ( i 46.7) | |||||||||||||||||||||
Stock-based compensation expense | i 12.5 | i 12.5 | |||||||||||||||||||||
Stock purchased at fair market value | ( i 26.3) | ( i 26.3) | |||||||||||||||||||||
Stock option exercise activity | i 25.4 | i 25.4 | |||||||||||||||||||||
Payments
related to tax withholding for stock-based compensation | ( i 23.5) | ( i 23.5) | |||||||||||||||||||||
Balance at June 30, 2021 | $ | i 2,367.3 | $ | i 40.7 | $ | i 778.6 | $ | i 1,510.9 | $ | i 19.8 | $ | ( i 59.1) | $ | i 76.4 |
Mobile Industries | Process Industries | Total | ||||||||||||
Impairment charges | $ | i 8.8 | $ | i — | $ | i 8.8 | ||||||||
Severance and related benefit costs | i 0.7 | i 0.4 | i 1.1 | |||||||||||
Exit costs | i 0.1 | i — | i 0.1 | |||||||||||
Total | $ | i 9.6 | $ | i 0.4 | $ | i 10.0 |
Mobile Industries | Process Industries | Total | ||||||||||||
Impairment charges | $ | i 8.8 | $ | i — | $ | i 8.8 | ||||||||
Severance and related benefit costs | i 1.1 | i 0.3 | i 1.4 | |||||||||||
Exit costs | i 0.8 | i — | i 0.8 | |||||||||||
Total | $ | i 10.7 | $ | i 0.3 | $ | i 11.0 |
Mobile Industries | Process Industries | Total | ||||||||||||
Impairment charges | $ | i 1.0 | $ | i 0.1 | $ | i 1.1 | ||||||||
Severance and related benefit costs | i — | i 0.1 | i 0.1 | |||||||||||
Exit costs | i 0.1 | i — | i 0.1 | |||||||||||
Total | $ | i 1.1 | $ | i 0.2 | $ | i 1.3 |
Mobile Industries | Process Industries | Total | ||||||||||||
Impairment charges | $ | i 1.1 | $ | i 3.4 | $ | i 4.5 | ||||||||
Severance and related benefit costs | i — | i 0.6 | i 0.6 | |||||||||||
Exit costs | i 0.2 | i — | i 0.2 | |||||||||||
Total | $ | i 1.3 | $ | i 4.0 | $ | i 5.3 |
June
30, 2022 | December 31, 2021 | ||||||||||
Beginning balance, January 1 | $ | i 7.0 | $ | i 8.0 | |||||||
Expense | i 2.2 | i 4.4 | |||||||||
Payments | ( i 3.7) | ( i 5.4) | |||||||||
Ending balance | $ | i 5.5 | $ | i 7.0 |
U.S. Plans | International Plans | Total | ||||||||||||||||||
Three
Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
Components of net periodic benefit cost (credit): | ||||||||||||||||||||
Service cost | $ | i 1.8 | $ | i 2.3 | $ | i 0.4 | $ | i 0.5 | $ | i 2.2 | $ | i 2.8 | ||||||||
Interest cost | i 4.1 | i 4.5 | i 1.4 | i 1.1 | i 5.5 | i 5.6 | ||||||||||||||
Expected return on plan assets | ( i 5.0) | ( i 6.1) | ( i 2.4) | ( i 2.6) | ( i 7.4) | ( i 8.7) | ||||||||||||||
Amortization of prior service cost | i 0.3 | i 0.3 | i 0.1 | i 0.1 | i 0.4 | i 0.4 | ||||||||||||||
Recognition of net actuarial losses | i 11.6 | i 3.5 | i — | i — | i 11.6 | i 3.5 | ||||||||||||||
Net periodic benefit cost (credit) | $ | i 12.8 | $ | i 4.5 | $ | ( i 0.5) | $ | ( i 0.9) | $ | i 12.3 | $ | i 3.6 |
U.S. Plans | International Plans | Total | ||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
Components of net periodic benefit cost (credit): | ||||||||||||||||||||
Service cost | $ | i 3.7 | $ | i 4.8 | $ | i 0.8 | $ | i 1.0 | $ | i 4.5 | $ | i 5.8 | ||||||||
Interest cost | i 8.2 | i 8.9 | i 2.9 | i 2.2 | i 11.1 | i 11.1 | ||||||||||||||
Expected return on plan assets | ( i 10.2) | ( i 12.2) | ( i 4.9) | ( i 5.1) | ( i 15.1) | ( i 17.3) | ||||||||||||||
Amortization of prior service cost | i 0.6 | i 0.6 | i 0.1 | i 0.1 | i 0.7 | i 0.7 | ||||||||||||||
Recognition of net actuarial losses | i 14.2 | i 4.4 | i — | i — | i 14.2 | i 4.4 | ||||||||||||||
Net periodic benefit cost (credit) | $ | i 16.5 | $ | i 6.5 | $ | ( i 1.1) | $ | ( i 1.8) | $ | i 15.4 | $ | i 4.7 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net periodic benefit credit: | |||||||||||||||||||||||
Service cost | $ | i 0.1 | $ | i 0.1 | $ | i 0.1 | $ | i 0.1 | |||||||||||||||
Interest cost | i 0.3 | i 0.3 | i 0.7 | i 0.7 | |||||||||||||||||||
Amortization of prior service credit | ( i 2.5) | ( i 2.5) | ( i 5.0) | ( i 5.0) | |||||||||||||||||||
Net periodic benefit credit | $ | ( i 2.1) | $ | ( i 2.1) | $ | ( i 4.2) | $ | ( i 4.2) |
Foreign currency translation adjustments | Pension and other postretirement liability adjustments | Change in fair value of derivative financial instruments | Total | ||||||||||||||
Balance at March 31, 2022 | $ | ( i 100.3) | $ | i 55.1 | $ | i 2.7 | $ | ( i 42.5) | |||||||||
Other
comprehensive (loss) income before reclassifications and income taxes | ( i 113.1) | i 0.2 | i 3.9 | ( i 109.0) | |||||||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 2.1) | ( i 0.7) | ( i 2.8) | |||||||||||||
Income tax (expense) benefit | i — | i 0.5 | ( i 1.0) | ( i 0.5) | |||||||||||||
Net
current period other comprehensive (loss) income, net of income taxes | ( i 113.1) | ( i 1.4) | i 2.2 | ( i 112.3) | |||||||||||||
Noncontrolling interest | ( i 1.1) | i — | i — | ( i 1.1) | |||||||||||||
Net
current period other comprehensive (loss) income, net of income taxes and noncontrolling interest | ( i 114.2) | ( i 1.4) | i 2.2 | ( i 113.4) | |||||||||||||
Balance at June 30, 2022 | $ | ( i 214.5) | $ | i 53.7 | $ | i 4.9 | $ | ( i 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 | $ | ( i 80.3) | $ | i 56.6 | $ | i 0.7 | $ | ( i 23.0) | |||||||||
Other
comprehensive (loss) income before reclassifications and income taxes | ( i 135.7) | i 0.4 | i 7.1 | ( i 128.2) | |||||||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 4.3) | ( i 1.6) | ( i 5.9) | |||||||||||||
Income tax (expense) benefit | i — | i 1.0 | ( i 1.3) | ( i 0.3) | |||||||||||||
Net
current period other comprehensive (loss) income, net of income taxes | ( i 135.7) | ( i 2.9) | i 4.2 | ( i 134.4) | |||||||||||||
Noncontrolling interest | i 1.5 | i — | i — | i 1.5 | |||||||||||||
Net
current period other comprehensive (loss) income, net of income taxes and noncontrolling interest | ( i 134.2) | ( i 2.9) | i 4.2 | ( i 132.9) | |||||||||||||
Balance at June 30, 2022 | $ | ( i 214.5) | $ | i 53.7 | $ | i 4.9 | $ | ( i 155.9) |
Foreign currency translation adjustments | Pension and other postretirement liability adjustments | Change in fair value of derivative financial instruments | Total | ||||||||||||||
Balance at March 31, 2021 | $ | ( i 62.0) | $ | i 61.8 | $ | ( i 1.9) | $ | ( i 2.1) | |||||||||
Other
comprehensive income (loss) before reclassifications and income taxes | i 23.2 | ( i 0.1) | ( i 2.1) | i 21.0 | |||||||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 2.1) | i 1.7 | ( i 0.4) | |||||||||||||
Income tax benefit | i — | i 0.5 | i 0.2 | i 0.7 | |||||||||||||
Net
current period other comprehensive income (loss), net of income taxes | i 23.2 | ( i 1.7) | ( i 0.2) | i 21.3 | |||||||||||||
Noncontrolling interest | i 0.6 | i — | i — | i 0.6 | |||||||||||||
Net
current period comprehensive income (loss), net of income taxes and noncontrolling interest | i 23.8 | ( i 1.7) | ( i 0.2) | i 21.9 | |||||||||||||
Balance at June 30, 2021 | $ | ( i 38.2) | $ | i 60.1 | $ | ( i 2.1) | $ | i 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 | $ | ( i 18.0) | $ | i 63.4 | $ | ( i 4.1) | $ | i 41.3 | |||||||||
Other
comprehensive (loss) income before reclassifications and income taxes | ( i 21.2) | ( i 0.1) | ( i 0.7) | ( i 22.0) | |||||||||||||
Amounts
reclassified from accumulated other comprehensive (loss) income before income taxes | i — | ( i 4.3) | i 3.4 | ( i 0.9) | |||||||||||||
Income tax benefit (expense) | i — | i 1.1 | ( i 0.7) | i 0.4 | |||||||||||||
Net
current period other comprehensive (loss) income, net of income taxes | ( i 21.2) | ( i 3.3) | i 2.0 | ( i 22.5) | |||||||||||||
Noncontrolling interest | i 1.0 | i — | i — | i 1.0 | |||||||||||||
Net
current period comprehensive (loss) income, net of income taxes and noncontrolling interest | ( i 20.2) | ( i 3.3) | i 2.0 | ( i 21.5) | |||||||||||||
Balance at June 30, 2021 | $ | ( i 38.2) | $ | i 60.1 | $ | ( i 2.1) | $ | i 19.8 |
June 30, 2022 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | i 283.3 | $ | i 281.5 | $ | i 1.8 | $ | i — | ||||||
Cash and cash equivalents measured at net asset value | i 22.0 | — | — | — | ||||||||||
Restricted cash | i 0.7 | i 0.7 | i — | i — | ||||||||||
Short-term investments | i 30.6 | i — | i 30.6 | i — | ||||||||||
Interest rate swap contract | i 3.3 | i — | i 3.3 | i — | ||||||||||
Foreign currency forward contracts | i 3.4 | i — | i 3.4 | i — | ||||||||||
Total assets | $ | i 343.3 | $ | i 282.2 | $ | i 39.1 | $ | i — | ||||||
Liabilities: | ||||||||||||||
Foreign currency forward contracts | $ | i 2.5 | $ | i — | $ | i 2.5 | $ | i — | ||||||
Total liabilities | $ | i 2.5 | $ | i — | $ | i 2.5 | $ | i — |
December 31, 2021 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | i 257.1 | $ | i 244.8 | $ | i 12.3 | $ | i — | ||||||
Restricted cash | i 0.8 | i 0.8 | i — | i — | ||||||||||
Short-term investments | i 56.9 | i — | i 56.9 | i — | ||||||||||
Foreign currency forward contracts | i 5.6 | i — | i 5.6 | i — | ||||||||||
Total assets | $ | i 320.4 | $ | i 245.6 | $ | i 74.8 | $ | i — | ||||||
Liabilities: | ||||||||||||||
Foreign currency forward contracts | $ | i 1.0 | $ | i — | $ | i 1.0 | $ | i — | ||||||
Total liabilities | $ | i 1.0 | $ | i — | $ | i 1.0 | $ | 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 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Foreign currency forward contracts | Other expense, net | $ | ( i 6.0) | $ | ( i 0.9) | $ | ( i 7.0) | $ | ( i 0.7) | |||||||||||||||||
Three
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 1,153.7 | $ | 1,062.9 | $ | 90.8 | 8.5 | % | ||||||
Net income | 105.6 | 107.2 | (1.6) | (1.5) | % | |||||||||
Net income attributable to noncontrolling interest | 0.6 | 2.4 | (1.8) | (75.0) | % | |||||||||
Net income attributable to The Timken Company | $ | 105.0 | $ | 104.8 | $ | 0.2 | 0.2 | % | ||||||
Diluted earnings per share | $ | 1.42 | $ | 1.36 | $ | 0.06 | 4.4 | % | ||||||
Average number of shares – diluted | 74,182,793 | 77,254,157 | — | (4.0) | % |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 2,278.3 | $ | 2,088.3 | $ | 190.0 | 9.1 | % | ||||||
Net income | 227.5 | 223.2 | 4.3 | 1.9 | % | |||||||||
Net income attributable to noncontrolling interest | 4.3 | 5.1 | (0.8) | (15.7) | % | |||||||||
Net income attributable to The Timken Company | $ | 223.2 | $ | 218.1 | $ | 5.1 | 2.3 | % | ||||||
Diluted earnings per share | $ | 2.98 | $ | 2.82 | $ | 0.16 | 5.7 | % | ||||||
Average number of shares – diluted | 74,877,248 | 77,257,761 | — | (3.1) | % |
Three
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 1,153.7 | $ | 1,062.9 | $ | 90.8 | 8.5 | % |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 2,278.3 | $ | 2,088.3 | $ | 190.0 | 9.1 | % |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Gross profit | $ | 341.8 | $ | 302.3 | $ | 39.5 | 13.1% | |||||||
Gross profit % to net sales | 29.6 | % | 28.4 | % | 120 | bps |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Gross profit | $ | 669.2 | $ | 601.5 | $ | 67.7 | 11.3% | |||||||
Gross profit % to net sales | 29.4 | % | 28.8 | % | 60 | bps |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Selling, general and administrative expenses | $ | 155.9 | $ | 149.0 | $ | 6.9 | 4.6 | % | ||||||
Selling, general and administrative expenses % to net sales | 13.5 | % | 14.0 | % | (50) | bps |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Selling, general and administrative expenses | $ | 310.0 | $ | 293.5 | $ | 16.5 | 5.6 | % | ||||||
Selling, general and administrative expenses % to net sales | 13.6 | % | 14.1 | % | (50) | bps |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Impairment charges | $ | 8.8 | $ | 1.1 | $ | 7.7 | NM | |||||||
Severance and related benefit costs | 1.1 | 0.1 | 1.0 | NM | ||||||||||
Exit costs | 0.1 | 0.1 | — | — | % | |||||||||
Total | $ | 10.0 | $ | 1.3 | $ | 8.7 | NM |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Impairment charges | $ | 8.8 | $ | 4.5 | $ | 4.3 | 95.6 | % | ||||||
Severance and related benefit costs | 1.4 | 0.6 | 0.8 | 133.3 | % | |||||||||
Exit costs | 0.8 | 0.2 | 0.6 | 300.0 | % | |||||||||
Total | $ | 11.0 | $ | 5.3 | $ | 5.7 | 107.5 | % |
Three
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Interest expense | $ | (18.3) | $ | (15.3) | $ | (3.0) | 19.6 | % | ||||||
Interest income | 1.0 | 0.7 | $ | 0.3 | 42.9 | % |
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Interest expense | $ | (32.6) | $ | (30.2) | $ | (2.4) | 7.9 | % | ||||||
Interest income | 1.6 | 1.2 | $ | 0.4 | 33.3 | % |
Three
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Non-service pension and other postretirement (expense) income | $ | (7.9) | $ | 1.4 | $ | (9.3) | NM | |||||||
Other expense, net | (1.1) | (2.2) | 1.1 | (50.0) | % | |||||||||
Total other expense | $ | (9.0) | $ | (0.8) | $ | (8.2) | NM |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Non-service pension and other postretirement (expense) income | $ | (6.6) | $ | 5.4 | $ | (12.0) | (222.2) | % | ||||||
Other expense, net | (0.9) | (1.2) | 0.3 | (25.0) | % | |||||||||
Total other (expense) income | $ | (7.5) | $ | 4.2 | $ | (11.7) | (278.6) | % |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Provision for income taxes | $ | 44.0 | $ | 29.4 | $ | 14.6 | 49.7 | % | ||||||
Effective tax rate | 29.4 | % | 21.5 | % | 790 | bps |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Provision for income taxes | $ | 82.2 | $ | 54.7 | $ | 27.5 | 50.3 | % | ||||||
Effective tax rate | 26.5 | % | 19.7 | % | 680 | bps |
Three
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Net sales | $ | 543.6 | $ | 494.2 | $ | 49.4 | 10.0% | |||||||
EBITDA | $ | 69.1 | $ | 67.3 | $ | 1.8 | 2.7% | |||||||
EBITDA margin | 12.7 | % | 13.6 | % | (90) | bps |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 543.6 | $ | 494.2 | $ | 49.4 | 10.0 | % | ||||||
Less: Currency | (15.7) | — | (15.7) | NM | ||||||||||
Net sales, excluding the impact of currency | $ | 559.3 | $ | 494.2 | $ | 65.1 | 13.2 | % |
Six Months
Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Net sales | $ | 1,084.0 | $ | 998.7 | $ | 85.3 | 8.5% | |||||||
EBITDA | $ | 144.2 | $ | 146.9 | $ | (2.7) | (1.8%) | |||||||
EBITDA margin | 13.3 | % | 14.7 | % | (90) | bps |
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 1,084.0 | $ | 998.7 | $ | 85.3 | 8.5 | % | ||||||
Less: Currency | (24.9) | — | (24.9) | NM | ||||||||||
Net sales, excluding the impact of currency | $ | 1,108.9 | $ | 998.7 | $ | 110.2 | 11.0 | % |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Net sales | $ | 610.1 | $ | 568.7 | $ | 41.4 | 7.3% | |||||||
EBITDA | $ | 163.5 | $ | 141.2 | $ | 22.3 | 15.8% | |||||||
EBITDA margin | 26.8 | % | 24.8 | % | 200 | bps |
Three
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 610.1 | $ | 568.7 | $ | 41.4 | 7.3 | % | ||||||
Less: Acquisitions | 3.9 | — | 3.9 | NM | ||||||||||
Currency | (19.0) | — | (19.0) | NM | ||||||||||
Net sales, excluding the impact of acquisitions and currency | $ | 625.2 | $ | 568.7 | $ | 56.5 | 9.9 | % |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Net sales | $ | 1,194.3 | $ | 1,089.6 | $ | 104.7 | 9.6% | |||||||
EBITDA | $ | 319.1 | $ | 272.2 | $ | 46.9 | 17.2% | |||||||
EBITDA margin | 26.7 | % | 25.0 | % | 170 | bps |
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||
Net sales | $ | 1,194.3 | $ | 1,089.6 | $ | 104.7 | 9.6 | % | ||||||
Less: Acquisitions | 5.1 | — | 5.1 | NM | ||||||||||
Currency | (25.0) | — | (25.0) | NM | ||||||||||
Net sales, excluding the impact of acquisitions and currency | $ | 1,214.2 | $ | 1,089.6 | $ | 124.6 | 11.4 | % |
Three Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Unallocated corporate expense | $ | (13.4) | $ | (11.6) | $ | (1.8) | 15.5 | % | ||||||
Unallocated corporate expense % to net sales | (1.2) | % | (1.1) | % | (10) | bps |
Six
Months Ended June 30, | ||||||||||||||
2022 | 2021 | $ Change | Change | |||||||||||
Unallocated corporate expense | $ | (26.3) | $ | (23.2) | $ | (3.1) | 13.4 | % | ||||||
Unallocated corporate expense % to net sales | (1.2) | % | (1.1) | % | (10) | bps |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | $ Change | |||||||||
Net cash provided by operating activities | $ | 77.1 | $ | 178.8 | $ | (101.7) | |||||
Net cash used in investing activities | (198.7) | (73.9) | (124.8) | ||||||||
Net cash provided by (used in) financing activities | 177.4 | (118.9) | 296.3 | ||||||||
Effect of exchange rate changes on cash | (7.7) | (0.8) | (6.9) | ||||||||
Increase (Decrease) in cash and cash equivalents and restricted cash | $ | 48.1 | $ | (14.8) | $ | 62.9 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | $ Change | |||||||||
Cash (used in) provided by: | |||||||||||
Accounts receivable | $ | (149.3) | $ | (125.8) | $ | (23.5) | |||||
Unbilled receivables | (2.9) | 10.4 | (13.3) | ||||||||
Inventories | (126.1) | (81.4) | (44.7) | ||||||||
Trade accounts payable | (6.1) | 41.2 | (47.3) | ||||||||
Other accrued expenses | 16.6 | 30.8 | (14.2) | ||||||||
Cash used in working capital items | $ | (267.8) | $ | (124.8) | $ | (143.0) |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | $ Change | |||||||||
Accrued income tax expense | $ | 82.2 | $ | 54.7 | $ | 27.5 | |||||
Income tax payments | (68.3) | (53.1) | (15.2) | ||||||||
Other items | (0.1) | (9.0) | 8.9 | ||||||||
Change in income taxes | $ | 13.8 | $ | (7.4) | $ | 21.2 |
June 30, 2022 | December 31, 2021 | |||||||
Short-term debt, including current portion of long-term debt | $ | 81.6 | $ | 53.8 | ||||
Long-term debt | 1,734.3 | 1,411.1 | ||||||
Total debt | $ | 1,815.9 | $ | 1,464.9 | ||||
Less: Cash and cash equivalents | 305.3 | 257.1 | ||||||
Net debt | $ | 1,510.6 | $ | 1,207.8 |
June 30, 2022 | December 31, 2021 | |||||||
Net debt | $ | 1,510.6 | $ | 1,207.8 | ||||
Total equity | 2,289.2 | 2,377.7 | ||||||
Net debt plus total equity (capital) | $ | 3,799.8 | $ | 3,585.5 | ||||
Ratio of net debt to capital | 39.8 | % | 33.7 | % |
Three
Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Net Sales | $ | 1,153.7 | $ | 1,062.9 | $ | 2,278.3 | $ | 2,088.3 | ||||||
Net Income Attributable to The Timken Company | 105.0 | 104.8 | 223.2 | 218.1 | ||||||||||
Impairment, restructuring and reorganization charges (1) | 2.0 | 2.2 | 3.6 | 7.4 | ||||||||||
Corporate pension and other postretirement benefit related expense (2) | 11.6 | 3.5 | 14.2 | 4.4 | ||||||||||
Russia-related
charges (3) | 8.4 | — | 13.0 | — | ||||||||||
Acquisition-related charges (4) | 1.6 | 1.4 | 2.7 | 0.6 | ||||||||||
Noncontrolling interest of above adjustments | (4.5) | — | (5.8) | 0.2 | ||||||||||
Provision for income taxes (5) | (0.2) | (5.8) | (5.3) | (17.9) | ||||||||||
Adjusted Net Income | $ | 123.9 | $ | 106.1 | $ | 245.6 | $ | 212.8 | ||||||
Net income attributable to noncontrolling interest | 0.6 | 2.4 | 4.3 | 5.1 | ||||||||||
Provision for income taxes (as reported) | 44.0 | 29.4 | 82.2 | 54.7 | ||||||||||
Interest expense | 18.3 | 15.3 | 32.6 | 30.2 | ||||||||||
Interest income | (1.0) | (0.7) | (1.6) | (1.2) | ||||||||||
Depreciation and amortization expense (6) | 40.7 | 42.0 | 82.1 | 84.7 | ||||||||||
Less: Noncontrolling interest | (4.5) | — | (5.8) | 0.2 | ||||||||||
Less:
Provision for income taxes (5) | (0.2) | (5.8) | (5.3) | (17.9) | ||||||||||
Adjusted EBITDA | $ | 231.2 | $ | 200.3 | $ | 456.3 | $ | 404.0 | ||||||
Adjusted EBITDA Margin (% of net sales) | 20.0 | % | 18.8 | % | 20.0 | % | 19.3 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Diluted earnings per share (EPS) | $ | 1.42 | $ | 1.36 | $ | 2.98 | $ | 2.82 | ||||||
Adjusted EPS | $ | 1.67 | $ | 1.37 | $ | 3.28 | $ | 2.75 | ||||||
Diluted Shares | 74,182,793 | 77,254,157 | 74,877,248 | 77,257,761 |
Three Months Ended June 30, 2022 | ||||||||||||||
Mobile | Process | Unallocated Corporate | Total | |||||||||||
Net Sales | $ | 543.6 | $ | 610.1 | $ | — | $ | 1,153.7 | ||||||
EBITDA | 69.1 | 163.5 | (25.0) | 207.6 | ||||||||||
Impairment,
restructuring and reorganization charges (1) | 1.0 | 1.0 | — | 2.0 | ||||||||||
Corporate pension and other postretirement benefit related expense (2) | — | — | 11.6 | 11.6 | ||||||||||
Russia-related charges (3) | 9.4 | (1.0) | — | 8.4 | ||||||||||
Acquisition-related
charges (4) | — | 1.0 | 0.6 | 1.6 | ||||||||||
Adjusted EBITDA | $ | 79.5 | $ | 164.5 | $ | (12.8) | $ | 231.2 | ||||||
Adjusted EBITDA Margin (% of net sales) | 14.6 | % | 27.0 | % | NM | 20.0 | % |
Three Months Ended June 30, 2021 | ||||||||||||||
Mobile | Process | Unallocated Corporate | Total | |||||||||||
Net Sales | $ | 494.2 | $ | 568.7 | $ | — | $ | 1,062.9 | ||||||
EBITDA | 67.3 | 141.2 | (15.1) | 193.4 | ||||||||||
Impairment,
restructuring and reorganization charges (1) | 1.2 | 0.8 | — | 2.0 | ||||||||||
Corporate pension and other postretirement benefit related expense (2) | — | — | 3.5 | 3.5 | ||||||||||
Acquisition-related charges (3) | 0.2 | 0.2 | 1.0 | 1.4 | ||||||||||
Adjusted EBITDA | $ | 68.7 | $ | 142.2 | $ | (10.6) | $ | 200.3 | ||||||
Adjusted EBITDA Margin (% of net sales) | 13.9 | % | 25.0 | % | NM | 18.8 | % |
Six Months Ended June 30, 2022 | ||||||||||||||
Mobile | Process | Unallocated Corporate | Total | |||||||||||
Net Sales | $ | 1,084.0 | $ | 1,194.3 | $ | — | $ | 2,278.3 | ||||||
EBITDA | 144.2 | 319.1 | (40.5) | 422.8 | ||||||||||
Impairment,
restructuring and reorganization charges (1) | 2.0 | 1.6 | — | 3.6 | ||||||||||
Corporate pension and other postretirement benefit related expense (2) | — | — | 14.2 | 14.2 | ||||||||||
Russia-related charges (3) | 12.5 | 0.5 | — | 13.0 | ||||||||||
Acquisition-related
charges (4) | — | 1.4 | 1.3 | 2.7 | ||||||||||
Adjusted EBITDA | $ | 158.7 | $ | 322.6 | $ | (25.0) | $ | 456.3 | ||||||
Adjusted EBITDA Margin (% of net sales) | 14.6 | % | 27.0 | % | NM | 20.0 | % |
Six Months Ended June 30, 2021 | ||||||||||||||
Mobile | Process | Unallocated Corporate | Total | |||||||||||
Net Sales | $ | 998.7 | $ | 1,089.6 | $ | — | $ | 2,088.3 | ||||||
EBITDA | 146.9 | 272.2 | (27.0) | 392.1 | ||||||||||
Impairment, restructuring and reorganization charges (1) | 1.5 | 5.4 | — | 6.9 | ||||||||||
Corporate
pension and other postretirement benefit related expense (2) | — | — | 4.4 | 4.4 | ||||||||||
Acquisition-related charges (3) | 0.4 | 0.3 | (0.1) | 0.6 | ||||||||||
Adjusted EBITDA | $ | 148.8 | $ | 277.9 | $ | (22.7) | $ | 404.0 | ||||||
Adjusted EBITDA Margin (% of net sales) | 14.9 | % | 25.5 | % | NM | 19.3 | % |
Three
Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Net cash provided by operating activities | $ | 78.3 | $ | 147.1 | $ | 77.1 | $ | 178.8 | ||||||
Capital expenditures | (40.9) | (31.1) | (75.2) | (60.5) | ||||||||||
Free cash flow | $ | 37.4 | $ | 116.0 | $ | 1.9 | $ | 118.3 |
Twelve Months Ended | ||||||||
June 30, 2022 | December
31, 2021 | |||||||
Net income | $ | 385.8 | $ | 381.5 | ||||
Provision for income taxes | 122.6 | 95.1 | ||||||
Interest expense | 61.2 | 58.8 | ||||||
Interest income | (2.7) | (2.3) | ||||||
Depreciation and amortization | 164.7 | 167.8 | ||||||
Consolidated EBITDA | 731.6 | 700.9 | ||||||
Adjustments: | ||||||||
Impairment, restructuring and reorganization charges (1) | $ | 11.0 | $ | 14.3 | ||||
Corporate
pension and other postretirement benefit related expense (2) | 10.1 | 0.3 | ||||||
Acquisition-related charges (3) | 4.4 | 2.3 | ||||||
Russia-related charges
(4) | 13.0 | — | ||||||
Tax indemnification and related items | 0.2 | 0.2 | ||||||
Total adjustments | 38.7 | 17.1 | ||||||
Adjusted EBITDA | $ | 770.3 | $ | 718.0 | ||||
Net Debt | $ | 1,510.6 | $ | 1,207.8 | ||||
Ratio of Net Debt to Adjusted EBITDA | 2.0 | 1.7 |
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) | ||||||||||
4/1/2022 - 4/30/2022 | 500,150 | $ | 58.81 | 500,000 | 7,050,000 | |||||||||
5/1/2022 - 5/31/2022 | 247,044 | 59.59 | 245,000 | 6,805,000 | ||||||||||
6/1/2022 - 6/30/2022 | 11,516 | 60.62 | 5,000 | 6,800,000 | ||||||||||
Total | 758,710 | $ | 59.09 | 750,000 | — |
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 and principal accounting 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 and principal accounting 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, 2022 filed on July 28,
2022, 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: July 28, 2022 | By: /s/ Richard G. Kyle | |||||||
Richard G. Kyle President and Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: July 28, 2022 | By: /s/ Philip D. Fracassa | |||||||
Philip
D. Fracassa Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/30/33 | ||||
4/1/32 | ||||
12/15/28 | ||||
9/7/27 | ||||
2/28/26 | ||||
11/30/24 | ||||
9/1/24 | ||||
6/30/24 | ||||
6/25/24 | ||||
9/11/23 | ||||
12/31/22 | ||||
12/15/22 | ||||
Filed on: | 7/28/22 | 8-K | ||
For Period end: | 6/30/22 | |||
5/31/22 | 4, SD | |||
3/31/22 | 10-Q | |||
3/28/22 | 8-K | |||
1/31/22 | SC 13G/A | |||
1/1/22 | ||||
12/31/21 | 10-K, 11-K, SD | |||
12/15/21 | ||||
8/20/21 | ||||
7/19/21 | ||||
6/30/21 | 10-Q | |||
3/31/21 | 10-Q | |||
3/1/21 | ||||
2/12/21 | 4, 8-K, SC 13G/A | |||
12/31/20 | 10-K, 11-K, 5, SD | |||
11/30/20 | ||||
10/30/20 | ||||
9/15/20 | ||||
9/8/20 | 4 | |||
2/4/20 | ||||
7/12/19 | 8-K | |||
6/25/19 | 11-K, 8-K | |||
4/1/19 | 8-K | |||
9/18/18 | ||||
9/11/18 | ||||
9/1/18 | ||||
12/28/04 | ||||
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