Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-1169 | ||
Entity Registrant Name | TIMKEN CO | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-0577130 | ||
Entity Address, Address Line One | 4500 Mount Pleasant Street NW | ||
Entity Address, City or Town | North Canton | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44720-5450 | ||
City Area Code | 234 | ||
Local Phone Number | 262.3000 | ||
Title of 12(b) Security | Common Shares, without par value | ||
Trading Symbol | TKR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,763,964,821 | ||
Entity Common Stock, Shares Outstanding | 70,132,075 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Document Parts Into Which Incorporated Proxy Statement for the Annual Meeting of Shareholders to be held on or about May 3, 2024 (Proxy Statement) Part III | ||
Entity Central Index Key | 0000098362 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cleveland, Ohio |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 4,769 | $ 4,496.7 | $ 4,132.9 |
Cost of products sold | 3,259.9 | 3,164.7 | 2,983.6 |
Selling, general and administrative expenses | 740.8 | 637.1 | 580.5 |
Amortization of intangible assets | 65.7 | 43.9 | 46.8 |
Impairment and restructuring charges | 45.5 | 44.1 | 8.9 |
Operating Income | 657.1 | 606.9 | 513.1 |
Interest expense | (110.7) | (74.6) | (58.8) |
Interest income | 9.3 | 3.8 | 2.3 |
Non-service pension and other postretirement (expense) income | (24) | 9.3 | 18.3 |
Other (expense) income, net | (1.2) | 5.5 | 1.7 |
Income Before Income Taxes | 530.5 | 550.9 | 476.6 |
Provision for income taxes | 122.5 | 133.9 | 95.1 |
Net Income | 408 | 417 | 381.5 |
Less: Net income attributable to noncontrolling interest | 13.9 | 9.6 | 12.4 |
Net Income Attributable to The Timken Company | $ 394.1 | $ 407.4 | $ 369.1 |
Net Income per Common Share Attributable to The Timken Company Common Shareholders | |||
Basic earnings per share (in dollars per share) | $ 5.52 | $ 5.54 | $ 4.86 |
Diluted earnings per share (in dollars per share) | $ 5.47 | $ 5.48 | $ 4.79 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 408 | $ 417 | $ 381.5 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 33.5 | (162.7) | (63.7) |
Pension and postretirement liability adjustments | (6.1) | (5.8) | (6.8) |
Change in fair value of derivative financial instruments | (0.8) | 2.3 | 4.8 |
Other comprehensive income (loss), net of tax | 26.6 | (166.2) | (65.7) |
Comprehensive Income, net of tax | 434.6 | 250.8 | 315.8 |
Less: comprehensive income attributable to noncontrolling interest | 12.1 | 2.3 | 11 |
Comprehensive Income Attributable to The Timken Company | $ 422.5 | $ 248.5 | $ 304.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 418.9 | $ 331.6 |
Restricted cash | 0.4 | 9.1 |
Accounts receivable, less allowances: (2023 - $17.1 million; 2022 - $17.9 million) | 671.7 | 699.6 |
Unbilled receivables | 144.5 | 103.9 |
Inventories, net | 1,229.1 | 1,191.3 |
Deferred charges and prepaid expenses | 41.5 | 44.4 |
Other current assets | 128.8 | 124.1 |
Total Current Assets | 2,634.9 | 2,504 |
Property, Plant and Equipment, Net | 1,311.9 | 1,207.4 |
Other Assets | ||
Goodwill | 1,369.6 | 1,098.3 |
Other intangible assets, net | 1,031.4 | 765.3 |
Operating lease assets | 119.7 | 101.4 |
Deferred income taxes | 44.3 | 71 |
Other non-current assets | 29.9 | 25 |
Total Other Assets | 2,594.9 | 2,061 |
Total Assets | 6,541.7 | 5,772.4 |
Current Liabilities | ||
Accounts payable, trade | 367.2 | 403.9 |
Short-term debt, including current portion of long-term debt | 605.6 | 49 |
Salaries, wages and benefits | 161.5 | 155.3 |
Income taxes payable | 19.9 | 51.3 |
Other current liabilities | 317.1 | 352.9 |
Total Current Liabilities | 1,471.3 | 1,012.4 |
Non-Current Liabilities | ||
Long-term debt | 1,790.3 | 1,914.2 |
Accrued pension benefits | 172.3 | 160.3 |
Accrued postretirement benefits | 30.2 | 31.4 |
Long-term operating lease liabilities | 78.7 | 65.2 |
Deferred income taxes | 186.5 | 139.8 |
Other non-current liabilities | 110 | 96.2 |
Total Non-Current Liabilities | 2,368 | 2,407.1 |
Shareholders’ Equity | ||
Class I and II Serial Preferred Stock without par value: Authorized – 10,000,000 shares each class, none issued | 0 | 0 |
Common stock without par value: Authorized - 200,000,000 shares, Issued (including shares in treasury) (2023 – 78,680,164 shares; 2022 – 77,767,640 shares) | 40.7 | 40.7 |
Other paid-in capital | 1,076.5 | 829.6 |
Retained earnings | 2,232.2 | 1,932.1 |
Accumulated other comprehensive loss | (146.9) | (181.9) |
Treasury shares at cost (2023 – 8,553,272 shares; 2022 – 5,188,257 shares) | (620.1) | (352.2) |
Total Shareholders’ Equity | 2,582.4 | 2,268.3 |
Noncontrolling interest | 120 | 84.6 |
Total Equity | 2,702.4 | 2,352.9 |
Total Liabilities and Equity | $ 6,541.7 | $ 5,772.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Allowances for accounts receivable | $ 17.1 | $ 17.9 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 78,680,164 | 77,767,640 |
Treasury shares (in shares) | 8,553,272 | 5,188,257 |
Preferred Stock Class I | ||
Preferred stock, shares authorized (Class I & Class II Preferred stock) (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred Stock Class II | ||
Preferred stock, shares authorized (Class I & Class II Preferred stock) (in shares) | 10,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net income | $ 408 | $ 417 | $ 381.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 201.3 | 164 | 167.8 |
Impairment charges | 33.2 | 38.3 | 4.5 |
Loss (gain) on sale of assets | 1.3 | (1.9) | 1.3 |
(Gain) loss on acquisitions and divestitures | (2.9) | 3.5 | (0.9) |
Deferred income tax benefit | (11.6) | (3.6) | (15.1) |
Stock-based compensation expense | 30.6 | 30.4 | 20.2 |
Pension and other postretirement expense (income) | 26.5 | (0.6) | (6.6) |
Pension and other postretirement benefit contributions and payments | (29.8) | (14.6) | (24.5) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 71.6 | (73.5) | (55.8) |
Unbilled receivables | (40.4) | (26) | 6.2 |
Inventories | 72 | (145.6) | (215.8) |
Accounts payable, trade | (57.4) | (10.2) | 76.7 |
Other accrued expenses | (47.6) | 91.9 | 55.2 |
Income taxes | (108.4) | 16.3 | 8.5 |
Other, net | (1.2) | (21.6) | (15.9) |
Net Cash Provided by Operating Activities | 545.2 | 463.8 | 387.3 |
Investing Activities | |||
Capital expenditures | (187.8) | (178.4) | (148.3) |
Acquisitions, net of cash acquired of $30.0 million in 2023 and $19.4 million in 2022 | (638.8) | (453.7) | (7.5) |
Proceeds from disposals of property, plant and equipment | 1.8 | 9.6 | 0.6 |
Proceeds from divestitures, net of cash divested of $0.7 million in 2023 and $5.3 million in 2022 | 13.5 | 33.9 | 0 |
Investments in short-term marketable securities, net | 5.7 | 14.6 | (18) |
Other | (0.9) | 0.7 | (0.6) |
Net Cash Used in Investing Activities | (806.5) | (573.3) | (173.8) |
Financing Activities | |||
Cash dividends paid to shareholders | (94) | (91.7) | (92.2) |
Purchase of treasury shares | (250.9) | (211.6) | (93) |
Proceeds from exercise of stock options | 21.8 | 8.5 | 26 |
Payments related to tax withholding for stock-based compensation | (17) | (10.7) | (23.8) |
Proceeds from long-term debt | 1,564.9 | 1,399.5 | 325 |
Payments on long-term debt | (1,329) | (978.5) | (338.3) |
Deferred financing costs | (0.5) | (6.6) | 0 |
Accounts receivable facility financing borrowings | 104 | 297 | 310.9 |
Accounts receivable facility financing payments | (122) | (212) | (368.9) |
Short-term debt activity, net | 190 | 6.9 | (14.5) |
Noncontrolling interest dividends paid | (0.6) | (0.5) | (0.5) |
Proceeds from the sale of shares in Timken India Limited | 284.8 | 0 | 0 |
Other | (4.4) | 6.5 | 0 |
Net Cash Provided by (Used in) Financing Activities | 347.1 | 206.8 | (269.3) |
Effect of exchange rate changes on cash | (7.2) | (14.5) | (7.4) |
Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash | 78.6 | 82.8 | (63.2) |
Cash, cash equivalents and restricted cash at beginning of year | 340.7 | 257.9 | 321.1 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 419.3 | $ 340.7 | $ 257.9 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Acquisitions, net of cash acquired | $ 30 | $ 19.4 |
Net of cash divested | $ 0.7 | $ 5.3 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Stated Capital | Other Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Shares | Non- controlling Interest |
Beginning balance at Dec. 31, 2020 | $ 2,225.2 | $ 40.7 | $ 740.7 | $ 1,339.5 | $ 41.3 | $ (9.3) | $ 72.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 381.5 | 369.1 | 12.4 | ||||
Foreign currency translation adjustments | (63.7) | (62.3) | (1.4) | ||||
Pension and other postretirement liability adjustments | (6.8) | (6.8) | |||||
Change in fair value of derivative financial instruments, net of reclassifications | 4.8 | 4.8 | |||||
Dividends declared to noncontrolling interest | (0.5) | (0.5) | |||||
Dividends | (92.2) | (92.2) | |||||
Stock-based compensation expense | 20.2 | 20.2 | |||||
Purchase of treasury shares | (93) | (93) | |||||
Stock option exercise activity | 26 | 26 | |||||
Payments related to tax withholding for stock-based compensation | (23.8) | (23.8) | |||||
Ending balance at Dec. 31, 2021 | 2,377.7 | 40.7 | 786.9 | 1,616.4 | (23) | (126.1) | 82.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 417 | 407.4 | 9.6 | ||||
Foreign currency translation adjustments | (162.7) | (155.4) | (7.3) | ||||
Pension and other postretirement liability adjustments | (5.8) | (5.8) | |||||
Change in fair value of derivative financial instruments, net of reclassifications | 2.3 | 2.3 | |||||
Dividends declared to noncontrolling interest | (0.5) | (0.5) | |||||
Dividends | (91.7) | (91.7) | |||||
Stock-based compensation expense | 30.4 | 30.4 | |||||
Purchase of treasury shares | (211.6) | (211.6) | |||||
Shares surrendered for stock option activity | 0 | 3.8 | (3.8) | ||||
Stock option exercise activity | 8.5 | 8.5 | |||||
Payments related to tax withholding for stock-based compensation | (10.7) | (10.7) | |||||
Ending balance at Dec. 31, 2022 | 2,352.9 | 40.7 | 829.6 | 1,932.1 | (181.9) | (352.2) | 84.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 408 | 394.1 | 13.9 | ||||
Foreign currency translation adjustments | 33.5 | 35.3 | (1.8) | ||||
Pension and other postretirement liability adjustments | (6.1) | (6.1) | |||||
Change in fair value of derivative financial instruments, net of reclassifications | (0.8) | (0.8) | |||||
Dividends declared to noncontrolling interest | (0.6) | (0.6) | |||||
Dividends | (94) | (94) | |||||
Sale of shares of Timken India Limited | 229 | 194.5 | 8.1 | 26.4 | |||
Other ownership changes | (4) | (1.5) | (2.5) | ||||
Stock-based compensation expense | 30.6 | 30.6 | |||||
Purchase of treasury shares | (250.9) | (250.9) | |||||
Stock option exercise activity | 21.8 | 21.8 | |||||
Payments related to tax withholding for stock-based compensation | (17) | (17) | |||||
Ending balance at Dec. 31, 2023 | $ 2,702.4 | $ 40.7 | $ 1,076.5 | $ 2,232.2 | $ (146.9) | $ (620.1) | $ 120 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Pension and postretirement liability adjustment, tax | $ 2 | $ 1.9 | $ 2.3 |
Dividend per share (in dollars per shares) | $ 1.30 | $ 1.23 | $ 1.19 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 - Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts and operations of the Company in which a controlling interest is maintained. Investments in affiliated companies where the Company exercises significant influence, but does not control, and the activities of which it is not the primary beneficiary, are accounted for using the equity method. All intercompany accounts and transactions are eliminated upon consolidation. Revenue: A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is generally recognized as performance obligations under the terms of a contract with a customer of the Company are satisfied. Of the Company's revenue, approximately 88% to 92% is from fixed-price contracts and continues to be recognized as of a point in time when products are shipped from the Company's manufacturing or distribution facilities or at a later point in time when control of the products transfers to the customer. The Company recognizes approximately 8% to 12% of revenue over time for services and certain sales of customer-specific product as it satisfies the performance obligations because of the continuous transfer of control to the customer, supported as follows: • For certain service contracts, this continuous transfer of control to the customer occurs as the Company's service enhances assets that the customer owns and controls at all times, and the Company is contractually entitled to payment for work performed to date plus a reasonable margin. • For U.S. government contracts, the customer is allowed to unilaterally terminate the contract for convenience, and is required to pay the Company for costs incurred plus a reasonable margin and can take control of any work in process. • For certain non-U.S. government contracts involving customer-specific products, the customer controls the work in process based on contractual termination clauses or restrictions on the Company's use of the product, and the Company possesses a right to payment for work performed to date plus a reasonable margin. As a result of control transferring over time for these products and services, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company has elected to use the cost-to-cost input measure of progress for these contracts because it best depicts the transfer of goods or services to the customer based on incurring costs on the contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. The pricing and payment terms for non-U.S. government contracts are based on the Company's standard terms and conditions or the result of specific negotiations with each customer. The Company's standard terms and conditions require payment 45 to 75 days from the invoice date, but the timing of payment for specific negotiated terms may vary. The Company also has both prime and subcontracts in support of the provision of goods and services to the U.S. government. Certain of these contracts are subject to the Federal Acquisition Regulation ("FAR") and are priced based on competitive market prices. Under the payment terms of certain of those U.S. government fixed-price contracts, the customer pays the Company performance-based payments, which are interim payments of up to 90% of the costs incurred to date based on quantifiable measures of performance or on the achievement of specified events or milestones. Because the customer retains a portion of the contract price until completion of such contracts, certain of these U.S. government fixed-price contracts result in revenue recognized in excess of billings, which is presented within "Unbilled receivables" on the Consolidated Balance Sheets. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. Note 1 - Significant Accounting Policies (continued) Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value-added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. As a practical expedient, the Company may exclude an assessment of whether promised goods or services are performance obligations, if such promised goods and services are immaterial to the customer contract taken as a whole, and combine these with other performance obligations. The Company has also elected not to adjust the promised amount of consideration for the effects of any significant financing component where the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Finally, the Company's policy is to exclude performance obligations resulting from contracts with a duration of one year or less from its disclosures related to remaining performance obligations. The amount of consideration to which the Company expects to be entitled in exchange for the goods and services is not generally subject to significant variations. However, the Company does offer certain customers rebates, prompt payment discounts, end-user discounts, the right to return eligible products, and/or other forms of variable consideration. The Company estimates this variable consideration using the expected value amount, which is based on historical experience. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company adjusts the estimate of revenue at the earlier of when the amount of consideration the Company expects to receive changes or when the consideration becomes fixed. The Company recognizes the cost of freight and shipping when control of the products or services has transferred to the customer as an expense in "Cost of products sold" on the Consolidated Statement of Income, because those are costs incurred to fulfill the promise recognized, not a separate performance obligation. To the extent certain freight and shipping fees are charged to customers, the Company recognizes the amounts charged to customers as revenues and the related costs as an expense in "Cost of products sold" when control of the related products or services has transferred to the customer. Contracts are occasionally modified to account for changes in contract specifications, requirements, and pricing. The Company considers contract modifications to exist when the modification either creates new enforceable rights and obligations or changes existing ones. Substantially all of the Company's contract modifications are for goods or services that are distinct from the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is generally recognized on a prospective basis. Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Restricted Cash: Cash and cash equivalents of $0.4 million and $9.1 million were restricted at December 31, 2023 and 2022, respectively. The decrease in restricted cash was primarily due to the deconsolidation of the Company's Russian joint venture. Accounts Receivable, Less Allowances: Accounts receivable, less allowances on the Consolidated Balance Sheets include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts, which represents an estimate of the losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance is based upon historical trends in collections and write-offs, management's judgment of the probability of collecting accounts and management's evaluation of business risk. The Company extends credit to customers satisfying predefined credit criteria. The Company believes it has limited concentration of credit risk due to the diversity of its customer base. Unbilled Receivables: Unbilled receivables on the Consolidated Balance Sheets primarily include unbilled amounts typically resulting from sales under long-term contracts when the following conditions exist: (i) cost-to-cost method of revenue recognition is utilized; (ii) the revenue recognized exceeds the amount billed to the customer; and (iii) the right to payment is generally subject to the passage of time as milestones are achieved. The amounts recorded for unbilled receivables do not exceed their net realizable value. Note 1 - Significant Accounting Policies (continued) Inventories: Inventories are valued at the lower of cost or net realizable value, with approximately 62% valued by the FIFO method and the remaining 38% valued by the LIFO method. The majority of the Company’s domestic inventories are valued by the LIFO method, while substantially all of the Company’s international inventories are valued by the FIFO method. Investments: Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company held short-term investments as of December 31, 2023 and 2022 with a fair value and cost ba sis of $31.6 million an d $39.2 million, respectively, which were included in "Other current assets" on the Consolidated Balance Sheets. Property, Plant and Equipment: Property, plant and equipment, net on the Consolidated Balance Sheets is valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed by the straight-line method based upon the estimated useful lives of the assets. The useful lives are 10 to 30 years for buildings, three three The impairment of long-lived assets is evaluated when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value. Leases: The Company determines if any arrangement is a lease at the inception of a contract. For leases where the Company is the lessee, it recognizes lease assets and related lease liabilities at the lease commencement date based on the present value of lease payments over the lease term. Most of the Company’s leases do not provide an implicit interest rate. As a result, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease assets also consist of amounts for favorable or unfavorable lease terms related to acquisitions. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. A lease asset and lease liability are not recorded for leases with an initial term of 12 months or less, and the lease expense related to these leases is recognized as incurred over the lease term. Goodwill and Other Intangible Assets: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from one Purchase accounting and business combinations: Assets acquired and the liabilities assumed as part of a business combination are recognized at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company considers inputs to value the assets and liabilities by taking into account competitive trends, market comparisons, independent appraisals, and historical data, among other factors, as supplemented by current and anticipated market conditions. The valuation inputs in these analyses are based on market participant assumptions. The Company may refine these estimates and record adjustments to an asset or liability with the offset to goodwill during the measurement period, which may be up to one year from the acquisition date. Upon the conclusion of the measurement period or final determination of the values of the assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the Company’s Consolidated Statements of Income. Note 1 - Significant Accounting Policies (continued) Product Warranties: The Company provides limited warranties on certain of its products. The Company accrues liabilities for warranties generally based upon specific claims and in certain instances based on historical warranty claim experience in accordance with accounting rules relating to contingent liabilities. When the Company becomes aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim data and historical experience change. Income Taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. The Company recognizes valuation allowances against deferred tax assets by tax jurisdiction when it is more likely than not those assets will not be realized. Accruals for uncertain tax positions are provided for in accordance with ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The Company has elected to account for Global Intangible Low Tax Income ("GILTI") as a period cost. Foreign Currency: Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rates of exchange prevailing during the reporting period. Translation adjustments for assets and liabilities are reflected as a separate component of accumulated other comprehensive loss (income). Foreign currency gains and losses resulting from transactions are included in the Consolidated Statements of Income. Net of related derivative activity, the Company recognized a foreign currency exchange loss resulting from transactions of $14.8 million for the year ended December 31, 2023 and recognized a gain of $15.4 million and a loss of $9.4 million for the years ended December 31, 2022 and 2021, respectively. Pension and Other Postretirement Benefits: The Company recognizes actuarial gains and losses immediately through net periodic benefit cost upon the annual remeasurement in the fourth quarter, or on an interim basis if specific events trigger a remeasurement. Actuarial gains and losses are excluded from segment results, while all other components of net periodic benefit cost will continue to be included within segment results. Stock-Based Compensation: The Company recognizes stock-based compensation expense over the related vesting period of the awards based on the fair value on the grant date. Stock options are issued with an exercise price equal to the opening market price of Timken common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. The fair value of stock-based awards that will settle in Timken common shares, other than stock options, is based on the opening market price of Timken common shares on the grant date. The fair value of stock-based awards that will settle in cash are remeasured at each reporting period until settlement of the awards. The Company recognizes forfeitures on stock-based awards as they occur. In addition, the Company’s share grants provide for the payment of dividends to employees and the Board of Directors upon vesting; these dividends are charged to retained earnings when paid. Earnings Per Share: Certain unvested restricted share grants provide for the payment of non-forfeitable dividends. The Company considers these awards as participating securities. Earnings per share are computed using the two-class method. Basic earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding, adjusted for the dilutive impact of outstanding stock-based awards. As of December 31, 2023, there are no participating securities outstanding. Note 1 - Significant Accounting Policies (continued) Derivative Instruments: The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. Derivatives that are not designated as hedges are adjusted to fair value through earnings. If the derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in accumulated other comprehensive loss (income) until the hedged item is recognized in earnings. The Company’s holdings of forward foreign currency exchange contracts qualify as derivatives pursuant to the criteria established in derivative accounting guidance, and the Company has designated certain of those derivatives as hedges. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Because actual results could differ from these estimates, the Company reviews and updates these estimates and assumptions regularly to reflect recent experience. Income Statement Presentation: The Company previously classified intangible asset amortization expense within cost of products sold in the Company's Consolidated Statements of Income. Intangible asset amortization expense is now classified separately. The 2022 and 2021 presentation has been revised to conform to the 2023 presentation resulting in a reduction in the cost of products sold for the years ended December 31, 2022 and 2021. Recent Accounting Pronouncements: New Accounting Guidance Adopted: In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50)." ASU 2022-04 is intended to establish disclosures that enhance the transparency of a supplier finance program used by an entity in connection with the purchase of goods and services. Supplier finance programs, which also may be referred to as reverse factoring, payables finance or structured payables arrangements, allow a buyer to offer its suppliers the option for access to payment in advance of an invoice due date, which is paid by a third-party finance provider or intermediary. Under the guidance, a buyer in a supplier finance program would disclose qualitative and quantitative information about its supplier finance programs. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Refer to Note 13 - Supply Chain Financing in the Notes to the Consolidated Financial Statements for additional information. New Accounting Guidance Issued and Not Yet Adopted: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 40). ASU 2023-09 is intended to enhance the transparency and decision to improve the usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require that all entities disclose on an annual basis the amount of income taxes paid disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. For public business entities, the new guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. Note 1 - Significant Accounting Policies (continued) In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). ASU 2023-07 requires that a public entity disclose: (1) on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; (2) on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; and (3) the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The other segment items category is the difference between segment revenue less the segment expenses disclosed and each reported measure of segment profit or loss. For public business entities, the new guidance is effective for annual periods beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 2 - Acquisitions and Divestitures Acquisitions: During 2023, the Company completed six acquisitions, which enhance its product portfolio. On December 20, 2023, the Company completed the acquisition of 100% of the capital stock of Lagersmit, a Netherlands-based manufacturer of highly engineered sealing solutions for marine, dredging, water, tidal energy and other industrial applications, for $128.2 million, net of cash acquired of $6.5 million. Lagersmit employs approximately 90 people. Results for Lagersmit are reported in the Industrial Motion segment. On September 1, 2023, the Company acquired 100% of the capital stock of Des-Case, a Tennessee-based manufacturer of specialty filtration products for industrial lubricants, for $123.3 million, net of cash acquired of $1.8 million. Des-Case has manufacturing facilities in Tennessee and the Netherlands and employs approximately 120 people. Results for Des-Case are reported in the Industrial Motion segment. On April 4, 2023, the Company acquired 100% of the capital stock of Nadella, a leading European manufacturer of linear guides, telescopic rails, actuators and systems and other specialized industrial motion solutions, for $293.5 million, net of cash acquired of $21.0 million. Based in Italy, Nadella employs approximately 450 people and operates manufacturing facilities in Europe and China. Net sales for Nadella were $74.6 million in 2023 for the period subsequent to the completion of the acquisition. Results for Nadella are reported in the Industrial Motion segment. On November 1, 2023, the Company acquired iMECH. The Company acquired 100% of the capital stock in the U.S. and substantially all of the assets in Canada. iMECH manufactures thrust bearings, radial bearings, specialty coatings and other components primarily used in the energy industry. iMECH employs approximately 70 people and has facilities in Houston, Texas and Alberta, Canada. Results for iMECH are reported in the Engineered Bearings segment. On September 29, 2023, the Company acquired 100% of the capital stock of Rosa, a European designer and manufacturer of roller guideways, linear bearings, customized linear systems and actuators, commercialized ball guideways and precision ball screws. Rosa employs approximately 65 people and has its headquarters, R&D and high-precision manufacturing facility in Milan, Italy. Results for Rosa are reported in the Industrial Motion segment. On January 31, 2023, the Company acquired substantially all of the assets of ARB, a North Carolina-based manufacturer of industrial bearings. ARB, which boasts a large U.S. installed base and strong aftermarket business, operates manufacturing facilities in Hiddenite and Morganton, North Carolina. ARB employs approximately 190 people. Results for ARB are reported in the Engineered Bearings segment. The total purchase price for these three acquisitions was $96.0 million, net of cash acquired of $1.3 million. The Company incurred transaction costs of $6.3 million to complete 2023 acquisitions. During 2022, the Company completed two acquisitions. On November 4, 2022, the Company completed the acquisition of GGB, a global leader in premium engineered metal-polymer plain bearings, for $300.2 million, net of cash acquired of $18.6 million. GGB's products are used mainly in industrial applications, including pumps and compressors, HVAC, off-highway, energy, material handling and aerospace. With manufacturing facilities across the United States, Europe and China, GGB employs approximately 900 people and has a global engineering, distribution and sales footprint. Results for GGB are reported in the Engineered Bearings segment. On May 31, 2022, the Company completed the acquisition of Spinea, a European technology leader and manufacturer of highly engineered cycloidal reduction gears and actuators. Spinea’s solutions primarily serve high-precision automation and robotics applications in the factory automation sector. Spinea is located in Presov, Slovakia. The purchase price for this acquisition was $151.3 million, net of cash acquired of $0.2 million. Results for Spinea are reported in the Industrial Motion segment. The Company incurred transaction costs of $4.7 million to complete 2022 acquisitions. Note 2 - Acquisitions and Divestitures (continued) The purchase price allocations at fair value, net of cash acquired, for 2023 and 2022 acquisitions as of December 31, 2023 and 2022 are presented below: 2023 2022 Assets: Accounts receivable $ 44.7 $ 30.7 Inventories 111.8 52.1 Other current assets 5.0 8.0 Property, plant and equipment 47.7 148.7 Operating lease assets 7.3 4.9 Goodwill 285.6 107.9 Other intangible assets 306.7 182.0 Other non-current assets 6.7 2.4 Total assets acquired $ 815.5 $ 536.7 Liabilities: Accounts payable, trade $ 24.0 $ 16.2 Salaries, wages and benefits 16.9 12.0 Income taxes payable 5.5 3.2 Other current liabilities 10.7 6.0 Short-term debt 4.7 — Long-term debt 6.0 — Accrued pension cost 3.6 3.5 Long-term operating lease liabilities 7.0 0.8 Deferred income taxes 83.3 24.0 Other non-current liabilities 7.6 19.5 Total liabilities assumed $ 169.3 $ 85.2 Noncontrolling interest acquired 5.2 — Net assets acquired $ 641.0 $ 451.5 Cash flow reconciling items: Working capital adjustment related to 2022 acquisitions received in 2023 (2.2) 2.2 Cash paid for acquisitions, net of cash acquired $ 638.8 $ 453.7 The 2023 acquisitions presented above include goodwill of $58.5 million and intangible assets of $77.5 million for Lagersmit, goodwill of $78.9 million and intangible assets of $45.1 million for Des-Case, and goodwill of $128.5 million and intangible assets of $158.7 million, including customer relationships of $107.2 million, for Nadella. The 2022 acquisitions presented above include goodwill of $64.5 million and intangible assets of $151.4 million for GGB, and goodwill of $43.4 million and intangible assets of $30.6 million for Spinea. In determining the fair value of amounts above related to Lagersmit, iMECH and Rosa, the Company utilized a benchmarking approach based on the Company's prior acquisitions to determine the preliminary fair values for identified intangibles assets and the step-up of inventory. Upon completion of the final purchase price allocation, the final fair values of the assets acquired, liabilities assumed and resulting goodwill may differ materially from the preliminary assessment. Any changes to the initial estimates of the fair value of the assets acquired and liabilities assumed will be recorded to those assets and liabilities and residual amounts will be allocated to goodwill. In determining the fair value of amounts above related to Des-Case, Nadella and ARB, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being valued. The estimation of fair value required judgment related to future net cash flows, discount rates, customer attrition rates, competitive trends, market comparisons and other factors. As a result, the Company utilized third party valuation specialists to assist in determining the fair value of certain assets. Inputs were generally determined by taking into account independent appraisals and historical data, supplemented by current and anticipated market conditions. Note 2 - Acquisitions and Divestitures (continued) The amounts in the table above represent the preliminary purchase price allocation for the 2023 acquisitions. This purchase price allocation, including the residual amount allocated to goodwill, is based on preliminary information and is subject to change as additional information concerning final asset and liability valuations are obtained and management completes its reassessment of the measurement period procedures based on the results of the preliminary valuation. The purchase price allocations for Lagersmit, iMECH, Rosa and Des-Case are preliminary due to the proximity of the acquisition date to December 31, 2023, and as a result no elements of the purchase price allocation have been finalized. The purchase price allocation for Nadella is preliminary with respect to most assets acquired and liabilities assumed. The purchase price allocation for ARB is complete. During the applicable measurement period, the Company will adjust assets and liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments has been completed on the acquisition date. The following table summarizes the preliminary purchase price allocation at fair value for identifiable intangible assets acquired in 2023 and 2022: 2023 2022 Weighted- Weighted- Trade names (indefinite life) $ — Indefinite $ 30.0 Indefinite Trade names (finite life) 39.0 19 years 6.2 20 years Technology and know-how 67.6 15 years 36.0 13 years Customer relationships 199.5 15 years 107.6 15 years Capitalized software 0.6 2 years 2.2 2 years Total intangible assets $ 306.7 $ 182.0 Divestitures: During the third quarter of 2023, the Company made the decision to sell its TWB business, located in Jiangsu Province, China. The business met the held for sale criteria, and the Company reclassified its assets and liabilities accordingly. As a result of the carrying value of the business exceeding the estimated sales price less costs to sell, the Company recorded an impairment charge of $1.0 million in 2023. On October 16, 2023, the Company completed the divestiture of TWB. TWB had net sales of $22.7 million and $39.3 million in 2023 and 2022, respectively. The results of operations of TWB were reported in the Engineered Bearings segment. The Company recorded proceeds of $9.0 million, net of cash divested of $0.7 million, on the sale of the business and reported an additional loss of $0.6 million in the fourth quarter of 2023. On February 28, 2023, the Company completed the sale of all of its membership interests in SE Setco, a 50% owned joint venture. The Company had accounted for SE Setco as an equity method investment prior to the sale. The Company received $5.7 million in proceeds for SE Setco and recognized a pretax gain of $4.8 million on the sale. The gain was reflected in other (expense) income, net in the Consolidated Statement of Income. During the third quarter of 2022, the Company made the decision to sell its ADS business, located in Manchester, Connecticut. The business met the held for sale criteria, and the Company reclassified its assets and liabilities accordingly. As a result of the carrying value of the business exceeding the estimated sales price less costs to sell, the Company recorded an impairment charge of $29.3 million in 2022. On November 1, 2022, the Company completed the divestiture of ADS. ADS had net sales of $39.7 million and $48.8 million in 2022 and 2021, respectively. The results of operations of ADS were reported in the Industrial Motion segment. The Company recorded proceeds of $33.0 million on the sale of the business. During 2023, the Company recorded an additional loss of $1.2 million due to the payment of a working capital adjustment. On September 1, 2022, the Company completed the divestiture of Timken Russia, one of its two subsidiaries in Russia. Timken Russia had net sales of $4.8 million in 2022. The results of operations of Timken Russia were reported in the Engineered Bearings segment. The Company recorded proceeds of $1.0 million, net of cash divested of $5.3 million, and recognized a loss of $2.7 million on the sale of the business. The loss was reflected in other (expense) income, net in the Consolidated Statement of Income. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3 - Revenue The following table presents details deemed most relevant to the users of the financial statements about total revenue for the years ended December 31, 2023, 2022 and 2021: December 31, 2023 Engineered Bearings Industrial Motion Total United States $ 1,266.1 $ 789.8 $ 2,055.9 Americas excluding United States 375.6 106.1 481.7 Europe / Middle East / Africa 678.6 499.7 1,178.3 China 503.9 81.7 585.6 Asia-Pacific excluding China 433.5 34.0 467.5 Net sales $ 3,257.7 $ 1,511.3 $ 4,769.0 December 31, 2022 Engineered Bearings Industrial Motion Total United States $ 1,198.1 $ 793.9 $ 1,992.0 Americas excluding United States 383.2 93.0 476.2 Europe / Middle East / Africa 588.9 406.8 995.7 China 529.7 78.8 608.5 Asia-Pacific excluding China 392.7 31.6 424.3 Net sales $ 3,092.6 $ 1,404.1 $ 4,496.7 December 31, 2021 Engineered Bearings Industrial Motion Total United States $ 1,027.5 $ 706.1 $ 1,733.6 Americas excluding United States 318.3 77.4 395.7 Europe / Middle East / Africa 610.7 417.4 1,028.1 China 523.3 88.6 611.9 Asia-Pacific excluding China 335.3 28.3 363.6 Net sales $ 2,815.1 $ 1,317.8 $ 4,132.9 When reviewing revenues by sales channel, the Company separates net sales to OEMs from sales to distributors and end users. The following table presents the percent of revenues by sales channel for the years ended December 31, 2023, 2022 and 2021: Revenue by sales channel 2023 2022 2021 Original equipment manufacturers 60% 60% 60% Distribution/end users 40% 40% 40% In addition to disaggregating revenue by segment and geography and by sales channel as shown above, the Company believes information about the timing of transfer of goods or services, type of customer and distinguishing service revenue from product sales is also relevant. During the years ended December 31, 2023, 2022 and 2021, approximately 9% of total net sales were recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized as of a point in time. Service revenue represented approximately 4% of total net sales in 2023, 2022 and 2021. Finally, business with the U.S. government or its contractors represented approximately 6% of total net sales in 2023 and 7% of total net sales for 2022 and 2021. Note 3 - Revenue (continued) Remaining Performance Obligations: Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed and excludes unexercised contract options. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $182 million at December 31, 2023. Unbilled Receivables: The following table contains a rollforward of unbilled receivables for the years ended December 31, 2023 and 2022: 2023 2022 Beginning balance, January 1 $ 103.9 $ 104.5 Additional unbilled revenue recognized 424.1 396.2 Less: amounts billed to customers (383.5) (370.5) Less: unbilled receivables divested — (26.3) Ending balance $ 144.5 $ 103.9 There were no impairment losses recorded on unbilled receivables for the years ended December 31, 2023 and 2022. Deferred Revenue: The following table contains a rollforward of deferred revenue for the years ended December 31, 2023 and 2022: 2023 2022 Beginning balance, January 1 $ 54.3 $ 35.8 Acquisitions 1.4 — Revenue (cash) received in advance 165.2 54.8 Less: revenue recognized (175.5) (36.3) Ending balance $ 45.4 $ 54.3 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 4 - Segment Information Effective January 1, 2023, the Company began operating under new reportable segments. The Company operates under two reportable segments: (1) Engineered Bearings and (2) Industrial Motion. Segment results for 2022 and 2021 have been revised to conform to the 2023 presentation of segments. Description of types of products and services from which each reportable segment derives its revenues: The Company ' s reportable segments are business units that target different industry sectors. While the segments often operate using a shared infrastructure, each reportable segment is managed to address specific customer needs in these diverse market segments. The Engineered Bearings portfolio features bearings with precision tolerances, proprietary internal geometries and quality materials. Products include tapered, spherical, cylindrical, thrust, ball, plain, miniature, precision and housed unit bearings that deliver strong performance, consistency and reliability. The portfolio serves OEMs and end users in the following markets: industrial distribution, renewable energy, automotive, rail, aerospace, metals and mining, heavy truck, agriculture and turf, and construction. Beyond products 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. The Industrial Motion portfolio features products such as drives, breathers, seals, automatic lubrication systems, linear motion products, chain, belts, couplings, industrial clutches and brakes and gears and gearboxes. The portfolio products and services to OEMs and end users in markets that place heavy demands on operating equipment they make or use. This includes: industrial distribution, automation, agriculture and turf, services, marine, renewable energy, aerospace and construction. 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. In addition, the Company’s industrial drivetrain services offer end users a broad portfolio of maintenance support and capabilities that include repair and service for bearings and gearboxes as well as electric motor rewind, repair and services. Measurement of segment profit or loss and segment assets: The Company evaluates performance and allocates resources based on return on capital and profitable growth. The primary measurement used by management to measure the financial performance of each segment is EBITDA. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Factors used by management to identify the enterprise’s reportable segments: Net sales by geographic area are reported by the destination of net sales, which is reflective of how the Company operates its segments. Long-lived assets by geographic area are reported by the location of the subsidiary. Timken’s non-U.S. operations are subject to normal international business risks not generally applicable to a domestic business. These risks include currency fluctuation, changes in tariff restrictions, difficulties in establishing and maintaining relationships with local distributors and dealers, import and export licensing requirements, difficulties in staffing and managing geographically diverse operations and restrictive regulations by foreign governments, including price and exchange controls, compliance with a variety of foreign laws and regulations, including unexpected changes in taxation and environmental regulatory requirements, and disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the FCPA. Note 4 - Segment Information (continued) Business Segment Information: The following tables provide segment financial information and a reconciliation of segment results to consolidated results: 2023 2022 2021 Net sales to external customers: Engineered Bearings $ 3,257.7 $ 3,092.6 $ 2,815.1 Industrial Motion 1,511.3 1,404.1 1,317.8 $ 4,769.0 $ 4,496.7 $ 4,132.9 Segment EBITDA: Engineered Bearings $ 661.7 $ 615.8 $ 513.4 Industrial Motion 262.0 222.8 233.0 Total EBITDA, for reportable segments $ 923.7 $ 838.6 $ 746.4 Unallocated corporate expense (69.9) (50.0) (46.1) Corporate pension and other postretirement benefit related expense (1) (20.6) (2.9) (0.3) Acquisition-related gain (2) — — 0.9 Depreciation and amortization (201.3) (164.0) (167.8) Interest expense (110.7) (74.6) (58.8) Interest income 9.3 3.8 2.3 Income before income taxes $ 530.5 $ 550.9 $ 476.6 (1) Corporate pension and other postretirement benefit related expense represents curtailments, professional fees associated with pension de-risking and actuarial losses that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions. (2) The acquisition-related gain represents a bargain purchase price gain on the acquisition of Aurora, acquired on November 30, 2020. 2023 2022 Assets employed at year-end: Engineered Bearings $ 3,296.8 $ 3,270.3 Industrial Motion 2,744.5 2,070.1 Corporate (2) 500.4 432.0 $ 6,541.7 $ 5,772.4 (2) Corporate assets include corporate buildings and cash and cash equivalents. 2023 2022 2021 Capital expenditures: Engineered Bearings $ 140.7 $ 143.8 $ 118.6 Industrial Motion 46.2 33.2 29.1 Corporate 0.9 1.4 0.6 $ 187.8 $ 178.4 $ 148.3 Depreciation and amortization: Engineered Bearings $ 107.2 $ 87.6 $ 87.2 Industrial Motion 92.7 74.8 78.9 Corporate 1.4 1.6 1.7 $ 201.3 $ 164.0 $ 167.8 Note 4 - Segment Information (continued) Geographic Financial Information: 2023 2022 Property, Plant and Equipment, net: United States $ 446.3 $ 418.3 China 278.8 272.5 India 146.2 130.6 Romania 100.6 101.8 Rest of world 340.0 284.2 $ 1,311.9 $ 1,207.4 Refer to Note 3 - Revenue for further information pertaining to geographic net sales information. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 - Income Taxes Income before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below. As the Company has elected to treat certain foreign subsidiaries as branches for U.S. income tax purposes, pretax income attributable to the United States shown below may differ from the pretax income reported in the Company’s annual U.S. federal income tax return. Income before income taxes: 2023 2022 2021 United States $ 173.8 $ 86.0 $ 125.8 Non-United States 356.7 464.9 350.8 Income before income taxes $ 530.5 $ 550.9 $ 476.6 The provision for income taxes consisted of the following: 2023 2022 2021 Current: Federal $ 10.4 $ 11.2 $ 8.1 State and local 3.8 6.7 3.9 Foreign 119.9 119.6 98.2 $ 134.1 $ 137.5 $ 110.2 Deferred: Federal $ (12.1) $ (7.8) $ (5.2) State and local (1.5) (0.3) (3.4) Foreign 2.0 4.5 (6.5) $ (11.6) $ (3.6) $ (15.1) United States and foreign tax provision on income $ 122.5 $ 133.9 $ 95.1 The Company made net income tax payments of $240.3 million, $120.6 million and $100.7 million in 2023, 2022 and 2021, respectively. The following table is the reconciliation between the provision for income taxes and the amount computed by applying the U.S. federal income tax rate of 21% to income before taxes: 2023 2022 2021 Income tax at the U.S. federal statutory rate $ 111.4 $ 115.7 $ 100.1 Adjustments: State and local income taxes, net of federal tax benefit 5.3 5.3 4.0 Tax on foreign remittances and U.S. tax on foreign income 25.6 19.0 15.4 Tax expense related to undistributed earnings of foreign subsidiaries 15.0 1.0 0.1 Foreign losses without current tax benefits 7.7 3.1 2.6 Foreign earnings taxed at different rates including tax holidays 18.1 19.4 15.4 U.S. foreign tax credit (55.8) (15.2) (11.5) Effect of cross-border tax laws (10.3) (3.9) (3.6) Accruals and settlements related to tax audits (3.2) (9.5) (7.7) Valuation allowance changes (2.1) (0.9) (7.8) Stock based compensation (2.9) (1.2) (8.1) Other items, net 13.7 1.1 (3.8) Provision for income taxes $ 122.5 $ 133.9 $ 95.1 Effective income tax rate 23.1 % 24.3 % 20.0 % Note 5 - Income Taxes (continued) The Company recognized $55.8 million of tax benefits for U.S. foreign tax credit utilization primarily from acquisition integration structuring for the year ended December 31, 2023. The Company released $7.8 million of foreign valuation allowance for the year ended December 31, 2021, which was related to a valuation allowance that was recorded against certain net operating loss carryforwards in China. Once established, a valuation allowance is released when, based on the weight of all available evidence, management concludes that related deferred tax assets are more likely than not to be realized. Management concluded in the fourth quarter of 2021 that there was sufficient evidence to release the valuation allowance. There are no changes to the Company’s assertion about its permanent reinvestment in undistributed foreign earnings. The Company recorded $15.0 million and $1.0 million of income tax expense related to foreign withholding taxes on planned one-time distributions for the years ended December 31, 2023 and 2022, respectively. No additional deferred taxes have been recorded for any other outside basis differences as these amounts continue to be indefinitely reinvested in foreign operations. The amounts of undistributed foreign earnings were $1,608.8 million and $1,620.0 million at December 31, 2023 and December 31, 2022, respectively. It is not practicable to calculate the additional taxes that might be payable on such unremitted earnings due to the variety of circumstances and tax laws applicable at the time of distribution. The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2023 and 2022 was as follows: 2023 2022 Deferred tax assets: Accrued postretirement benefits cost $ 8.0 $ 8.4 Accrued pension cost 44.1 46.5 Other employee benefit accruals 14.3 16.1 Tax loss and credit carryforwards 84.9 80.7 Other, net 58.3 61.7 Valuation allowances (39.3) (31.3) $ 170.3 $ 182.1 Deferred tax liabilities - principally depreciation and amortization (312.5) (250.9) Net deferred tax liabilities $ (142.2) $ (68.8) The Company has U.S. federal and state tax credit and loss carryforwards with tax benefits totaling $14.3 million, portions of which will expire in 2024 and continue until 2042. In addition, the Company has loss carryforwards in various non-U.S. jurisdictions with tax benefits totaling $69.7 million, portions of which will expire in 2024 while others will be carried forward indefinitely. The Company has provided valuation allowances of $37.4 million against certain of these carryforwards and $1.9 million against other deferred tax assets. A majority of the non-U.S. loss carryforwards represent local country net operating losses for branches of the Company or entities treated as branches of the Company under U.S. tax law for which deferred taxes have been recorded. As of December 31, 2023, the Company had $34.2 million of total gross unrecognized tax benefits, $24.2 million of which would favorably impact the Company’s effective income tax rate in any future period if such benefits were recognized. As of December 31, 2023, the Company believes it is reasonably possible that the amount of unrecognized tax positions could decrease by approximately $5 million during the next 12 months. The potential decrease would primarily be driven by settlements with tax authorities and the expiration of various applicable statutes of limitation. As of December 31, 2023, the Company had accrued $11.8 million of interest and penalties related to uncertain tax positions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense. Note 5 - Income Taxes (continued) As of December 31, 2022, the Company had $26.0 million of total gross unrecognized tax benefits, $23.3 million of which would favorably impact the Company’s effective income tax rate in any future period if such benefits were recognized. As of December 31, 2022, the Company had accrued $8.8 million of interest and penalties related to uncertain tax positions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2021, the Company had $36.1 million of total gross unrecognized tax benefits, $30.7 million of which would favorably impact the Company’s effective income tax rate in any future period if such benefits were recognized. As of December 31, 2021, the Company had accrued $8.9 million of interest and penalties related to uncertain tax positions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense. The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 Beginning balance, January 1 $ 26.0 $ 36.1 $ 45.6 Tax positions related to the current year: Additions 7.0 0.6 1.6 Tax positions related to prior years: Additions 9.6 4.0 3.7 Reductions (4.7) (4.7) (8.1) Settlements with tax authorities (0.4) (1.9) (1.7) Lapses in statutes of limitation (3.3) (8.1) (5.0) Ending balance, December 31 $ 34.2 $ 26.0 $ 36.1 During 2023 , gross unrecognized tax benefits increased primarily for accruals related to prior year tax matters in multiple jurisdictions related to acquisitions and non-U.S. non-deductible expenses. These increases were partially offset by releases of accruals related to closing agreements and lapses in statute of limitations. During 2022 , gross unrecognized tax benefits decreased primarily for releases of accruals related to lapses in statute of limitations and reductions related to foreign currency for non-U.S. positions. These decreases were partially offset by accruals for uncertain tax positions related to prior year tax matters in multiple jurisdictions related to acquisitions. During 2021, gross unrecognized tax benefits decreased primarily for releases of accruals related to closing agreements and lapses in statute of limitations for the U.S. and a favorable non-U.S. transfer pricing settlement. These decreases were partially offset by accruals for uncertain tax positions related to non-U.S. non-deductible expenses. As of December 31, 2023, the Company is subject to examination by the IRS for tax years 2019 to the present. The Company also is subject to tax examination in various U.S. state and local tax jurisdictions for tax years 2016 to the present, as well as various foreign tax jurisdictions, including Mexico, China, Poland, France, India, Germany and Slovakia for tax years as early as 2003 to the present . The Company’s unrecognized tax benefits are presented on the Consolidated Balance Sheets as a component of other non-current liabilities, or in certain instances, as a reduction to deferred income taxes. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 - Earnings Per Share The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 Numerator: Net income attributable to The Timken Company $ 394.1 $ 407.4 $ 369.1 Denominator: Weighted average number of shares outstanding - basic 71,377,656 73,602,247 75,885,316 Effect of dilutive securities: Stock options and awards - based on the treasury stock method 704,228 721,592 1,121,273 Weighted average number of shares outstanding, assuming dilution of stock options and awards 72,081,884 74,323,839 77,006,589 Basic earnings per share $ 5.52 $ 5.54 $ 4.86 Diluted earnings per share $ 5.47 $ 5.48 $ 4.79 The dilutive effect of performance-based restricted stock units is taken into account once they have met minimum performance thresholds. The dilutive effect of stock options includes all outstanding stock options except stock options that are considered antidilutive. Stock options are antidilutive when the exercise price exceeds the average market price of the Company’s common shares during the periods presented. There were no antidilutive stock options outstanding during 2023, 2022 and 2021. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 7 - Inventories The components of inventories at December 31, 2023 and 2022 were as follows: 2023 2022 Manufacturing supplies $ 41.9 $ 41.7 Raw materials 145.6 132.0 Work in process 496.1 491.2 Finished products 619.2 584.8 Subtotal $ 1,302.8 $ 1,249.7 Allowance for surplus and obsolete inventory (73.7) (58.4) Total Inventories, net $ 1,229.1 $ 1,191.3 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 8 - Property, Plant and Equipment The components of property, plant and equipment, net at December 31, 2023 and 2022 were as follows: 2023 2022 Land and buildings $ 679.9 $ 628.4 Machinery and equipment 2,483.4 2,316.5 Subtotal $ 3,163.3 $ 2,944.9 Less: accumulated depreciation (1,851.4) (1,737.5) Property, Plant and Equipment, net $ 1,311.9 $ 1,207.4 Total depreciation expense was $129.0 million, $113.4 million and $113.3 million in 2023, 2022 and 2021, respectively. At December 31, 2023 and 2022, $22.9 million and $18.6 million of property, plant and equipment was included in accounts payable, trade and were paid subsequent to year-end. The Consolidated Statement of Cash Flows was adjusted accordingly. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9 - Goodwill and Other Intangible Assets Goodwill: The Company tests goodwill and indefinite-lived intangible assets for impairment at least annually, performing its annual impairment test as of October 1 st . Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In connection with the adoption of new reportable segments, goodwill was reallocated to new reporting units based on relative fair value at the reporting unit level. The Engineered Bearings segment has one reporting unit and the Industrial Motion segment has six reporting units. Changes in the carrying value of goodwill were as follows: Year ended December 31, 2023: Engineered Bearings Industrial Motion Total Beginning Balance $ 679.8 $ 418.5 $ 1,098.3 Acquisitions 13.2 272.4 285.6 Impairment loss — (28.3) (28.3) Foreign currency translation adjustments and other changes (0.7) 14.7 14.0 Ending Balance $ 692.3 $ 677.3 $ 1,369.6 During the first quarter of 2023, the Company reviewed goodwill for impairment for its reporting units due to the change in segment reporting that went into effect January 1, 2023. The Company utilizes both an income approach and a market approach in testing goodwill for impairment. The Company utilized updated forecasts for the income approach as part of the goodwill impairment review. Based on the earnings and cash flow forecasts for the Belts and Chain reporting unit within the Industrial Motion segment, the Company determined that the reporting unit could not support the carrying value of its goodwill. As a result, the Company recorded a pretax impairment loss of $28.3 million during the first quarter of 2023, which was reported in impairment and restructuring charges on the Consolidated Statement of Income. The acquisitions of Lagersmit, iMECH, Rosa, Des-Case, Nadella and ARB added goodwill of $58.5 million, $12.8 million, $6.5 million, $78.9 million, $128.5 million and $0.4 million, respectively, in 2023. Goodwill arising from these acquisitions is attributed to the expected synergies, including future cost savings, and other benefits expected to be generated by combining the companies. The goodwill related to iMECH and ARB is deductible for tax purposes and will be amortized over 15 years. For the other 2023 acquisitions, goodwill will not be deductible for tax purposes. Note 9 - Goodwill and Other Intangible Assets (continued) Year ended December 31, 2022: Engineered Bearings Industrial Motion Total Beginning Balance $ 610.8 $ 411.9 $ 1,022.7 Acquisitions 63.6 43.3 106.9 Foreign currency translation adjustments and other changes 5.4 (36.7) (31.3) Ending Balance $ 679.8 $ 418.5 $ 1,098.3 The acquisition of GGB added $63.6 million of goodwill, and the acquisition of Spinea added $43.3 million of goodwill in 2022. In 2023, measurement period adjustments of $0.9 million and $0.1 million, respectively, were recorded to adjust goodwill for GGB and Spinea. Approximately 40% of the goodwill for GGB is being deducted for tax purposes, and all of the goodwill for Spinea is being deducted for tax purposes. No material goodwill impairment losses were recorded in 2022 or 2021. Intangible Assets: The following table displays intangible assets as of December 31, 2023 and 2022: 2023 2022 Gross Accumulated Net Gross Accumulated Net Intangible assets subject Customer relationships $ 776.5 $ (222.8) $ 553.7 $ 561.5 $ (183.2) $ 378.3 Technology and know-how 343.3 (100.9) 242.4 273.1 (80.4) 192.7 Trade names 71.3 (11.2) 60.1 18.4 (8.7) 9.7 Capitalized Software 299.5 (272.8) 26.7 288.4 (266.3) 22.1 Other 10.8 (8.7) 2.1 3.3 (2.3) 1.0 $ 1,501.4 $ (616.4) $ 885.0 $ 1,144.7 $ (540.9) $ 603.8 Intangible assets not Trade names $ 137.7 $ 137.7 $ 152.8 $ 152.8 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 146.4 $ 146.4 $ 161.5 $ 161.5 Total intangible assets $ 1,647.8 $ (616.4) $ 1,031.4 $ 1,306.2 $ (540.9) $ 765.3 Intangible assets acquired in 2023 totaled $306.7 million. Intangible assets subject to amortization were assigned useful lives of one |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 10 - Other Current Liabilities The following table displays other current liabilities as of December 31, 2023 and 2022: (Dollars in millions) 2023 2022 Sales rebates $ 79.0 $ 82.9 Deferred revenue 45.4 54.3 Operating lease liabilities 25.9 24.1 Product warranty 15.2 23.5 Freight and duties 13.4 21.7 Current derivative liability 11.4 19.8 Taxes other than income and payroll taxes 17.8 18.7 Professional fees 12.5 17.4 Interest 16.4 15.0 Restructuring 5.8 3.1 Other 74.3 72.4 Total other current liabilities $ 317.1 $ 352.9 |
Leasing
Leasing | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leasing | Note 11 - Leasing The Company enters into operating and finance leases for manufacturing facilities, warehouses, sales offices, information technology equipment, plant equipment, vehicles and certain other equipment. Lease expense for the years ended December 31, 2023, 2022 and 2021 was as follows: 2023 2022 2021 Operating lease expense $ 33.5 $ 30.3 $ 34.1 Amortization of right-of-use assets on finance leases 2.2 1.7 2.3 Total lease expense $ 35.7 $ 32.0 $ 36.4 Cash flows from operating and financing leases for the years ended December 31, 2023, 2022 and 2021 was as follows: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33.6 $ 30.1 $ 32.9 Financing cash flows from finance leases 2.1 1.2 2.2 The following tables present the impact of leasing on the Consolidated Balance Sheets at December 31, 2023 and 2022: Operating Leases 2023 2022 Lease assets: Operating lease assets $ 119.7 $ 101.4 Lease liabilities: Short-term operating lease liabilities $ 25.9 $ 24.1 Long-term operating lease liabilities 78.7 65.2 Total operating lease liabilities $ 104.6 $ 89.3 Short-term operating lease liabilities at December 31, 2023 and 2022 are included in other current liabilities Finance Leases 2023 2022 Lease assets: Property, plant and equipment, net $ 8.9 $ 4.0 Lease liabilities: Current portion of long-term debt $ 2.4 $ 1.3 Long-term debt 6.1 1.9 Total finance lease liabilities $ 8.5 $ 3.2 Note 11 - Leasing (continued) Future minimum lease payments under non-cancellable leases at December 31, 2023 were as follows: Operating Leases Finance Leases Year Ending December 31, 2024 $ 29.8 $ 2.6 2025 25.5 2.1 2026 18.1 1.8 2027 13.9 1.0 2028 10.9 0.5 Thereafter 18.8 1.4 Total future minimum lease payments $ 117.0 $ 9.4 Less: imputed interest (12.4) (0.9) Total $ 104.6 $ 8.5 The following tables present lease assets added for the periods ended December 31, 2023 and 2022: 2023 2022 Lease assets added in the period: Operating leases $ 23.3 $ 22.1 Finance leases 7.9 0.9 The following tables present other information related to leases at December 31, 2023 and 2022: 2023 2022 Weighted-average remaining lease term: Operating leases 5.3 years 5.4 years Finance leases 5.1 years 2.8 years Weighted-average discount rate: Operating leases 4.20 % 3.55 % Finance leases 4.24 % 3.07 % |
Leasing | Note 11 - Leasing The Company enters into operating and finance leases for manufacturing facilities, warehouses, sales offices, information technology equipment, plant equipment, vehicles and certain other equipment. Lease expense for the years ended December 31, 2023, 2022 and 2021 was as follows: 2023 2022 2021 Operating lease expense $ 33.5 $ 30.3 $ 34.1 Amortization of right-of-use assets on finance leases 2.2 1.7 2.3 Total lease expense $ 35.7 $ 32.0 $ 36.4 Cash flows from operating and financing leases for the years ended December 31, 2023, 2022 and 2021 was as follows: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33.6 $ 30.1 $ 32.9 Financing cash flows from finance leases 2.1 1.2 2.2 The following tables present the impact of leasing on the Consolidated Balance Sheets at December 31, 2023 and 2022: Operating Leases 2023 2022 Lease assets: Operating lease assets $ 119.7 $ 101.4 Lease liabilities: Short-term operating lease liabilities $ 25.9 $ 24.1 Long-term operating lease liabilities 78.7 65.2 Total operating lease liabilities $ 104.6 $ 89.3 Short-term operating lease liabilities at December 31, 2023 and 2022 are included in other current liabilities Finance Leases 2023 2022 Lease assets: Property, plant and equipment, net $ 8.9 $ 4.0 Lease liabilities: Current portion of long-term debt $ 2.4 $ 1.3 Long-term debt 6.1 1.9 Total finance lease liabilities $ 8.5 $ 3.2 Note 11 - Leasing (continued) Future minimum lease payments under non-cancellable leases at December 31, 2023 were as follows: Operating Leases Finance Leases Year Ending December 31, 2024 $ 29.8 $ 2.6 2025 25.5 2.1 2026 18.1 1.8 2027 13.9 1.0 2028 10.9 0.5 Thereafter 18.8 1.4 Total future minimum lease payments $ 117.0 $ 9.4 Less: imputed interest (12.4) (0.9) Total $ 104.6 $ 8.5 The following tables present lease assets added for the periods ended December 31, 2023 and 2022: 2023 2022 Lease assets added in the period: Operating leases $ 23.3 $ 22.1 Finance leases 7.9 0.9 The following tables present other information related to leases at December 31, 2023 and 2022: 2023 2022 Weighted-average remaining lease term: Operating leases 5.3 years 5.4 years Finance leases 5.1 years 2.8 years Weighted-average discount rate: Operating leases 4.20 % 3.55 % Finance leases 4.24 % 3.07 % |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 12 - Financing Arrangements Short-term debt as of December 31, 2023 and 2022 was as follows: 2023 2022 Variable-rate Term Loan (1) maturing on August 16, 2024, with an interest rate of 5.112% at December 31, 2023 $ 220.8 $ — Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 4.35% to 7.33% at December 31, 2023 and 2.38% to 5.50% at December 31, 2022 25.4 46.3 Short-term debt $ 246.2 $ 46.3 On August 16, 2023, the Company entered into a €200 million variable-rate term loan ("2024 Term Loan"), maturing on August 16, 2024. Proceeds from the 2024 Term Loan were used to repay borrowings on the Senior Credit Facility and Accounts Receivable Facility, as well as for general corporate purposes. The Company currently intends to repay or replace the 2024 Term Loan prior to its maturity. The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings, with most of these lines of credit being uncommitted. At December 31, 2023, the Company’s foreign subsidiaries had borrowings outstanding of $25.4 million and bank guarantees of $2.1 million. The weighted-average interest rate on these lines of credit during the year were 4.24%, 1.4% and 0.8% in 2023 , 2022 and 2021, respectively. The increase in the weighted-average interest rate was primarily due to higher borrowing rates. The weighted-average interest rate on lines of credit outstanding at December 31, 2023 and 2022 was 4.81% and 2.62%, respectively. Long-term debt as of December 31, 2023 and 2022 was as follows: 2023 2022 Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 6.48% and Euro of 4.85% at December 31, 2023 and 5.10% and 2.21%, respectively, at December 31, 2022 $ 247.4 $ 8.5 Variable-rate Accounts Receivable Facility, with an interest rate of 6.42% at December 31, 2023 and of 5.01% at December 31, 2022 67.0 85.0 Variable-rate Term Loan (1) , maturing on December 5, 2027, with an interest rate of 6.58% at December 31, 2023 and of 5.55% at December 31, 2022 399.3 399.1 Fixed-rate Senior Unsecured Notes (1) , maturing on September 1, 2024, with an interest rate of 3.875% 350.0 349.8 Fixed-rate Euro Senior Unsecured Notes (1) , maturing on September 7, 2027, with an interest rate of 2.02% 165.5 160.4 Fixed-rate Senior Unsecured Notes (1) , maturing on December 15, 2028, with an interest rate of 4.50% 397.7 397.2 Fixed-rate Medium-Term Notes, Series A (1) , maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% 154.8 154.8 Fixed-rate Senior Unsecured Notes (1) , maturing on April 1, 2032, with an interest rate of 4.125% 343.7 342.1 Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% 12.7 13.6 Other 11.6 6.4 Total debt $ 2,149.7 $ 1,916.9 Less current maturities 359.4 2.7 Long-term debt $ 1,790.3 $ 1,914.2 (1) Net of discount and fees Note 12 - Financing Arrangements (continued) The Company renewed the Accounts Receivable Facility on December 6, 2023. The $100.0 million Accounts Receivable Facility matures on November 30, 2026. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited to certain borrowing base limitations. These limitations reduced the availability of the Accounts Receivable Facility to $79.1 million at December 31, 2023. As of December 31, 2023, there were $67.0 million outstanding borrowings under the Accounts Receivable Facility, which reduced the availability under this facility to $12.1 million. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The interest rate was 6.4%, 5.0% and 0.9% at December 31, 2023, 2022 and 2021, respectively. On December 5, 2022, the Company entered into the Credit Agreement, which is comprised of a $750.0 million Senior Credit Facility and $400.0 million 2027 Term Loan that each mature on December 5, 2027. The Credit Agreement amended and restated the Company's previous revolving credit agreement that was set to mature on June 25, 2024, and replaced the $350.0 million 2023 Term Loan that was set to mature on September 11, 2023. The Credit Agreement also replaced interest rates based on LIBOR with interest rates based SOFR. At December 31, 2023, the Senior Credit Facility had outstanding borrowings of $247.4 million and $1.3 million of letters of credit under the Senior Credit Facility, which reduced the availability under this facility to $501.3 million. The Credit Agreement has two financial covenants: a consolidated net leverage ratio and a consolidated interest coverage ratio. On March 28, 2022, the Company issued the 2032 Notes in the aggregate principal amount of $350.0 million with an interest rate of 4.125%, maturing on April 1, 2032. Proceeds from the 2032 Notes were used for general corporate purposes, which included the repayment of borrowings under the Company's previous senior credit facility and Accounts Receivable Facility at the time of issuance. The Company has the 2024 Notes in the aggregate principal amount of $350.0 million with an interest rate of 3.875%, maturing on September 1, 2024. The Company currently intends to refinance the 2024 Notes prior to their maturity. At December 31, 2023, the Company was in full compliance with all applicable covenants on its outstanding debt. In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to insurance contracts. At December 31, 2023, outstanding letters of credit totaled $59.6 million, primarily having expiration dates within 12 months. The maturities of long-term debt (including $8.5 million of finance leases) for the years subsequent to December 31, 2023 are as follows: Year 2024 $ 359.4 2025 29.1 2026 53.1 2027 837.6 2028 521.2 Thereafter 358.8 Interest paid was $108.8 million in 2023 , $72.5 million in 2022 and $56.5 million in 2021. This differs from interest expense due to the timing of payments, the amortization of deferred financing fees and interest capitalized of $0.2 million in 2023, $1.0 million in 2022 and $2.6 million in 2021. |
Supply Chain Financing
Supply Chain Financing | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supply Chain Financing | Note 13 - Supply Chain Financing The Company offers a supplier finance program with two different financial institutions where suppliers may receive early payment from the financial institutions on invoices issued to the Company. The Company and each financial institution entered into arrangements providing for the Company to pay the financial institution per the terms of any supplier invoice paid early under the program and to pay an annual fee for the supplier finance platform subscription and related support. The Company or the financial institutions may terminate participation in the program with 90 days’ written notice. The supplier finance programs are unsecured and are not guaranteed by the Company. The financial institutions enter into separate arrangements with suppliers directly to participate in the program. The Company does not determine the terms or conditions of such arrangements or participate in the transactions between the suppliers and the financial institutions. The supplier invoice terms under the program typically require payment in full within 90 days of the invoice date. The following table is a rollforward of the outstanding obligations for the Company’s supplier finance program for the twelve months ended December 31, 2023: December 31, Confirmed obligations outstanding, January 1 $ 14.4 Invoices confirmed 97.1 Confirmed invoices paid (90.2) Confirmed obligations outstanding, ending balance $ 21.3 The obligations outstanding at December 31, 2023 were included in accounts payable, trade on the Consolidated Balance Sheet. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 14 - Contingencies The Company is responsible for environmental remediation at various manufacturing facilities presently or formerly operated by the Company. In addition, the Company, through one of its subsidiaries, has currently been identified as a potentially responsible party for investigation and remediation under the Comprehensive Environmental Response, Compensation and Liability Act, known as the Superfund, or similar state laws with respect to one site. Claims for investigation and remediation have been asserted against numerous other unrelated entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation. On December 28, 2004, the United States Environmental Protection Agency (“USEPA”) sent Lovejoy, LLC ("Lovejoy") a Special Notice Letter that identified Lovejoy as a potentially responsible party, together with at least 14 unrelated parties, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”). The Company acquired Lovejoy in 2016. Lovejoy’s Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and the Illinois Environmental Protection Agency (“IEPA”) allege there have been one or more releases or threatened releases of hazardous substances, including, but not limited to, a release or threatened release on or from Lovejoy's property at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of response costs. Lovejoy’s allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. All previously pending property damage and personal injury lawsuits against Lovejoy related to the Site were settled or dismissed prior to our acquisition of Lovejoy. The Company had total environmental accruals of $4.7 million and $4.8 million for various known environmental matters that are probable and reasonably estimable as of December 31, 2023 and 2022, respectively, which includes the Lovejoy matter discussed above. These accruals were recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties. The ultimate resolution of these matters could result in actual costs that exceed amounts accrued. Product Warranties: In addition to the contingencies above, the Company provides limited warranties on certain of its products. The product warranty liability included in "Other current liabilities" on the Consolidated Balance Sheets for 2023 and 2022 was $15.2 million and $23.5 million, respectively. The balances at the end of each respective period represent the best estimates of costs for existing and future claims for products that are still under warranty. The liability primarily relates to accruals for products sold into the automotive and renewable energy sectors. Accrual estimates are based on actual claims and expected trends that continue to mature. The Company is currently evaluating claims raised by certain customers with respect to the performance of bearings sold into the automotive and wind energy sectors. Management believes that the outcome of these claims will not have a material effect on the Company's consolidated financial position; however, the effect of any such change may be material to the results of operations of any particular period in which such change occurs. The following is a rollforward of the consolidated product warranty accrual at December 31, 2023 and December 31, 2022, respectively: December 31, December 31, Beginning balance, January 1 $ 23.5 $ 11.7 Expense 5.9 14.7 Payments (14.2) (2.9) Ending balance $ 15.2 $ 23.5 |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation | Note 15 - Stock Compensation Under its long-term incentive plan, the Company's common shares have been made available for grant, at the discretion of the Compensation Committee of the Board of Directors or its designees, to officers, directors and other key employees. Grants can take the form of performance- or time-based restricted stock units, deferred shares and stock options. A summary of the awards granted in 2023 is presented below: Expected to be Settled in Equity Expected to be Settled in Cash Total Awards Granted Performance-based restricted stock units 174,915 6,800 181,715 Time-based restricted stock units 135,420 4,565 139,985 Deferred shares 31,900 — 31,900 Performance-based restricted stock units are calculated and awarded based on the achievement of specified performance objectives and cliff vest three years from the date of grant. Time-based restricted stock units generally vest in 25% increments annually beginning on the first anniversary of the grant. Deferred shares generally cliff vest in a range of two A summary of stock award activity, including performance-based restricted stock units, time-based restricted stock units and deferred shares that will settle in common shares for the year ended December 31, 2023 is as follows: Number of Shares Weighted-average Outstanding - beginning of year 937,971 $ 63.31 Granted - new awards 342,235 84.31 Adjusted for performance results achieved (1) (15,175) 55.37 Vested (376,261) 53.03 Canceled or expired (19,384) 72.04 Outstanding - end of year 869,386 $ 75.00 (1) Adjustments for the number of shares vested under the 2020 awards at the end of the three-year period ended December 31, 2022 being slightly lower than the target number of shares. The Company distributed shares totaling 376,261 in 2023 , 386,594 in 2022 and 577,948 in 2021 due to the vesting of stock awards. The grant date fair value of these vested shares was $20.8 million , $18.7 million and $25.5 million, respectively. The Company recognized compensation expense of $30.5 million, $29.3 million and $18.2 million for the years ended December 31, 2023, 2022 and 2021, respectively, relating to performance-based restricted stock units, time-based restricted stock units, deferred shares and restricted shares. In addition to performance-based restricted stock units, time-based restricted stock units and deferred shares, the Company has granted stock option awards to officers and key employees. Stock options typically have a ten-year term and generally vest in 25% increments beginning annually on the first anniversary date of grant. Note 15 - Stock Compensation (continued) During 2023, 2022 and 2021, the Company recognized stock-based compensation expense of $0.1 million, $1.1 million and $2.0 million, respectively, for stock option awards. Beginning in 2020, the Company discontinued the use of nonqualified stock options. As such, there were no stock option awards granted in 2023, 2022 or 2021. A summary of stock option award activity for the year ended December 31, 2023 is presented below: Number of Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term Aggregate Intrinsic Value (millions) Outstanding - beginning of year 921,310 $ 41.61 Exercised (534,218) 40.83 Canceled or expired (475) 42.60 Outstanding - end of year 386,617 $ 42.69 5 years $ 14.5 As of December 31, 2023, there were 386,617 stock options outstanding. All of these options are fully vested and are exercisable at December 31, 2023. The total intrinsic value of stock option awards exercised during the years ended December 31, 2023, 2022 and 2021 was $22.2 million, $7.3 million and $29.4 million, respectively. Net cash proceeds from the exercise of stock option awards were $21.8 million, $8.5 million and $26.0 million, respectively. As of December 31, 2023, the Company had unrecognized compensation expense of $37.4 million related to stock options and stock awards, which is expected to be recognized over a total weighted-average period of two years. There were 3.2 million shares available for future grants for all plans at December 31, 2023. |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Charges [Abstract] | |
Impairment and Restructuring Charges | Note 16 - Impairment and Restructuring Charges Impairment and restructuring charges by segment were as follows: Year ended December 31, 2023: Engineered Bearings Industrial Motion Total Impairment charges $ 4.9 $ 28.3 $ 33.2 Severance and related benefit costs 5.5 5.6 11.1 Exit costs 0.9 0.3 1.2 Total $ 11.3 $ 34.2 $ 45.5 Year ended December 31, 2022: Engineered Bearings Industrial Motion Total Impairment charges $ 9.0 $ 29.3 $ 38.3 Severance and related benefit costs 2.7 1.5 4.2 Exit costs 1.4 0.2 1.6 Total $ 13.1 $ 31.0 $ 44.1 Year ended December 31, 2021: Engineered Bearings Industrial Motion Total Impairment charges $ 4.4 $ 0.1 $ 4.5 Severance and related benefit costs 0.8 1.8 2.6 Exit costs 1.2 0.6 1.8 Total $ 6.4 $ 2.5 $ 8.9 The following discussion explains the major impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above. Engineered Bearings: On January 16, 2023, the Company announced the closure of its bearing plant in Gaffney, South Carolina. The facility ceased operations at the end of the fourth quarter of 2023 and affected approximately 225 employees. The Company transferred its operations to other bearing manufacturing facilities. The Company expects to incur approximately $12 million to $14 million of pretax costs in total related to this closure. During 2023, the Company recorded severance and related benefits of $3.6 million and exit costs of $0.6 million related to this closure. During 2022, the Company recorded severance and related benefits of $0.9 million related to this closure. The Company has incurred cumulative pretax costs related to this closure of $12.5 million as of December 31, 2023, including rationalization costs recorded in cost of products sold. As a result of Russia's invasion of Ukraine (and associated sanctions), the Company suspended its operations in Russia in 2022. During the year ended December 31, 2023, the Company recorded impairment charges of $3.9 million related to certain assets of its Russian JV. During the year ended December 31, 2022, the Company recorded impairment charges of $9.0 million related to certain assets of its Russian JV. During the fourth quarter of 2023, after evaluating various plans for the Russian JV and the Company's ability to control and influence the joint venture, the Company concluded it should deconsolidate its Russian JV and wrote-down the remaining investment of $4.7 million. During the year ended December 31, 2023, the Company classified TWB as assets held for sale and recorded impairment charges of $1.0 million. The Company subsequently completed the sale of TWB on October 16, 2023. Note 16 - Impairment and Restructuring Charges (continued) On July 19, 2021, the Company announced the closure of its bearing manufacturing facility in Villa Carcina, Italy. The Company transferred the manufacturing of its single-row tapered roller bearing production to other bearing facilities. The Company completed the closure of the facility on October 31, 2022, and it affected approximately 110 employees. During 2022, the Company recorded severance and related benefits of $1.4 million and exit costs of $1.6 million related to this closure. During 2021, the Company recorded impairment charges of $1.0 million, severance and related benefit costs of $1.8 million and exit costs of $1.1 million related to this closure. The exit costs recognized in 2022 and 2021 primarily related to environmental remediation. The Company incurred cumulative pretax costs related to this closure of $9.9 million as of December 31, 2022, including rationalization costs recorded in cost of products sold. On November 1, 2022, the Company completed the sale of this facility and recognized a pretax gain of $3.6 million. During the year ended December 31, 2021, the Company recorded impairment charges of $3.4 million related to certain engineering-related assets used in the business. Management concluded no further investment would be made in these assets and as a result, reduced the value to zero. Industrial Motion: During the third quarter of 2022, the Company announced certain organizational changes, which included the appointment of executive leaders for its Engineered Bearings and Industrial Motion product groups. After evaluating the impact from the organizational changes and related segmentation implications through the balance of 2022, the Company concluded that it would begin operating under two new reportable segments, Engineered Bearings and Industrial Motion, effective January 1, 2023. In conjunction with this change in segmented results, the Company reallocated its goodwill to new reporting units under these two segments. In addition, the Company was required to review goodwill for impairment under these new reporting units. As a result of this goodwill impairment review, the Company recognized a pretax goodwill impairment loss of $28.3 million during the three months ended March 31, 2023. In 2022, the Company classified the ADS business as assets held for sale and recorded impairment charges of $29.3 million. The Company subsequently completed the sale of the ADS business on November 1, 2022. On February 4, 2020, the Company announced the closure of its chain plant in Indianapolis, Indiana. This plant was part of the Diamond Chain acquisition completed on April 1, 2019. The Company transferred the majority of its Diamond Chain product line to its chain facility in Fulton, Illinois. The chain plant ceased operations on April 30, 2023 and affected approximately 240 employees. The Company hired approximately 130 full-time positions in Fulton, Illinois. During 2021, the Company recorded severance and related benefits costs of $1.2 million related to this closure. The Company incurred cumulative pretax costs related to this closure of $14.5 million as of December 31, 2023, including rationalization costs recorded in cost of products sold. During the year ended December 31, 2023, the Company recorded severance and related benefits of $2.2 million related to one of its automatic lubrication systems facilities in Europe and $1.5 million related to its gear drive manufacturing facility in Europe to align current employment levels with current demand. Consolidated Restructuring Accrual: The following is a rollforward of the consolidated restructuring accrual for the years ended December 31, 2023 and 2022: 2023 2022 Beginning balance, January 1 $ 3.1 $ 7.0 Expense 12.3 5.8 Payments (9.6) (9.7) Ending balance, December 31 $ 5.8 $ 3.1 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefit Plans | Note 17 - Retirement Benefit Plans The Company and its subsidiaries sponsor a number of defined benefit pension plans, which cover eligible employees, including certain employees in foreign countries. These plans generally are noncontributory. Pension benefits earned generally are based on years of service and compensation during active employment. The cash contributions and payments for the Company’s defined benefit pension plans were $27.1 million, $11.2 million and $20.4 million in 2023 , 2022 and 2021, respectively. The 2021 contributions and payments included a $10.0 million payout of deferred compensation to a former executive officer of the Company. The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: U.S. Plans International Plans 2023 2022 2021 2023 2022 2021 Components of net periodic Service cost $ 0.8 $ 6.9 $ 9.5 $ 1.6 $ 1.6 $ 2.0 Interest cost 17.9 17.7 17.6 10.4 5.7 4.4 Expected return on plan assets (8.5) (18.9) (23.2) (10.4) (9.3) (10.2) Amortization of prior service cost 0.2 1.2 1.2 0.2 0.1 0.2 Recognition of net actuarial 9.2 22.6 13.9 12.4 (6.6) (9.5) Net periodic benefit cost (credit) $ 19.6 $ 29.5 $ 19.0 $ 14.2 $ (8.5) $ (13.1) Assumptions 2023 2022 2021 U.S. Plans: Discount rate 5.62% to 5.74% 3.03% to 4.95% 2.71% to 2.91% Future compensation assumption 2.50% to 3.50% 2.50% to 3.50% 2.50 % Expected long-term return on plan assets 4.31% to 4.91% 4.35% to 5.65% 4.15% to 4.90% International Plans: Discount rate 3.70% to 10.70% 1.00% to 9.50% 0.25% to 7.75% Future compensation assumption 2.80% to 8.00% 2.10% to 8.00% 1.90% to 8.18% Expected long-term return on plan assets 2.50% to 8.90% 2.00% to 8.90% 2.00% to 9.00% The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: Assumptions 2023 2022 U.S. Plans: Discount rate 5.37% to 5.53% 5.62% to 5.74% Future compensation assumption 3.25% 2.50 % International Plans: Discount rate 3.15% to 11.70% 3.70% to 10.70% Future compensation assumption 3.00% to 8.00% 2.80% to 10.00% Note 17 - Retirement Benefit Plans (continued) The Company recognized actuarial losses of $21.6 million during 2023 primarily due to the impact of a net reduction in the discount rate used to measure its defined benefit pension obligations of $17.6 million and the impact of experience losses of $10.3 million, partially offset by changes in mortality of $6.0 million primarily related to the U.K. plan obligations and other actuarial gains of $0.3 million. The impact of the net reduction in the discount rate used to measure the Company's defined benefit pension obligations was primarily driven by a 24 basis point reduction in the weighted-average discount rate used to measure its U.S. plan obligations, which decreased from 5.64% in 2022 to 5.40% in 2023, and a 33 basis point decrease in the discount rate used to measure its U.K. plan obligations, which decreased from 4.81% in 2022 to 4.48% in 2023. Returns on plan assets had no impact on actuarial losses for 2023. The Company recognized actuarial losses of $16.0 million during 2022 primarily due to the impact of lower than expected returns on plan assets of $220.6 million, the impact of experience losses of $33.0 million, the impact of inflation of $5.4 million and other actuarial losses of $0.2 million, partially offset by the favorable impact of a net increase in the discount rate used to measure its defined benefit pension obligations of $243.2 million. The impact of the net increase in the discount rate used to measure the Company's defined benefit pension obligations was primarily driven by a 257 basis point increase in the weighted-average discount rate used to measure its U.S. plan obligations, which increased from 3.07% in 2021 to 5.64% in 2022, and a 301 basis point increase in the discount rate used to measure its U.K. plan obligations, which increased from 1.80% in 2021 to 4.81% in 2022. The Company recognized actuarial losses of $4.4 million during 2021 primarily due to the impact of lower than expected returns on plan assets of $28.4 million, the impact of experience losses of $9.3 million, the impact of inflation of $8.5 million and other changes in actuarial assumptions of $3.2 million, partially offset by the favorable impact of a net increase in the discount rate used to measure its defined benefit pension obligations of $45.0 million. The impact of the net increase in the discount rate used to measure the Company's defined benefit pension obligations was primarily driven by a 55 basis point increase in the discount rate used to measure its U.K. plan obligations, which increased from 1.25% in 2020 to 1.80% in 2021, and a 23 basis point increase in the weighted-average discount rate used to measure its U.S. plan obligations, which increased from 2.84% in 2020 to 3.07% in 2021. For expense purposes in 2023, the Company applied a weighted-average discount rate of 5.64% to its U.S. defined benefit pension plans. For expense purposes in 2024, the Company will apply a weighted-average discount rate of 5.40% to its U.S. defined benefit pension plans. For expense purposes in 2023, the Company applied a weighted-average expected rate of return of 4.47% for the Company’s U.S. pension plan assets. For expense purposes in 2024, the Company will apply a weighted-average expected rate of return on plan assets of 3.94%. Note 17 - Retirement Benefit Plans (continued) The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2023 and 2022: U.S. Plans International Plans 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 335.3 $ 566.3 $ 218.1 $ 343.1 Service cost 0.8 6.9 1.6 1.6 Interest cost 17.9 17.7 10.4 5.7 Actuarial losses (gains) 10.8 (116.4) 10.8 (88.2) International plan exchange rate change — — 10.4 (32.6) Benefits paid (31.6) (139.2) (14.7) (14.7) Acquisitions — — 3.9 3.2 Other — — 1.8 — Benefit obligation at end of year $ 333.2 $ 335.3 $ 242.3 $ 218.1 Change in plan assets: Fair value of plan assets at beginning of year $ 201.6 $ 455.7 $ 185.5 $ 296.8 Actual return on plan assets 10.1 (120.1) 8.8 (72.3) Company contributions / payments 19.1 5.2 8.0 6.0 International plan exchange rate change — — 9.2 (30.3) Benefits paid (31.6) (139.2) (14.7) (14.7) Fair value of plan assets at end of year 199.2 201.6 196.8 185.5 Funded status at end of year $ (134.0) $ (133.7) $ (45.5) $ (32.6) Amounts recognized on the Consolidated Balance Sheets: Non-current assets $ — $ — $ — $ 0.3 Current liabilities (4.8) (4.8) (2.4) (1.5) Non-current liabilities (129.2) (128.9) (43.1) (31.4) $ (134.0) $ (133.7) $ (45.5) $ (32.6) Amounts recognized in accumulated other comprehensive Net prior service cost $ 0.1 $ 0.3 $ 3.6 $ 3.6 Accumulated other comprehensive loss (income) $ 0.1 $ 0.3 $ 3.6 $ 3.6 Changes in prior service cost recognized in accumulated other comprehensive loss (income): Accumulated other comprehensive loss (income) at beginning $ 0.3 $ 1.5 $ 3.6 $ 4.2 Recognized prior service cost (0.2) (1.2) (0.2) (0.1) Foreign currency impact — — 0.2 (0.5) Total recognized in accumulated other comprehensive $ 0.1 $ 0.3 $ 3.6 $ 3.6 The presentation in the above tables for amounts recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets is before the effect of income taxes. Note 17 - Retirement Benefit Plans (continued) Certain of the Company’s defined benefit pension plans were overfunded The four largest defined benefit pension plans, covering certain employees in the United States and U.K., represent 83% and 84% of the Company's projected benefit obligation at December 31, 2023 and 2022, respectively. These defined benefit pension plans are closed to new entrants and benefits have been frozen for three of these plans. The accumulated benefit obligation at December 31, 2023 exceeded the market value of plan assets for several of the Company’s pension plans. For these plans, the projected benefit obligation was $566.7 million, the accumulated benefit obligation was $561.0 million and the fair value of plan assets was $387.7 million at December 31, 2023. The total accumulated benefit obligation for all plans was $567.0 million and $546.0 million at December 31, 2023 and 2022, respectively. Investment performance increased the value of the Company’s pension assets by 6.3% in 2023 largely due to decreases in bond rates. As of December 31, 2023 , 2022 and 2021, the Company’s defined benefit pension plans did not directly hold any of the Company’s common shares. Plan Assets: The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2023 and 2022, was as follows: Current Target Percentage of Pension Plan Asset Category 2023 2022 Equity securities 10% to 16% 13% 18% Fixed income securities 78% to 90% 84% 77% Other investments 2% to 4% 3% 5% Total 100% 100% The Company recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes, and are reviewed regularly by management. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. Note 17 - Retirement Benefit Plans (continued) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 - Unobservable inputs for the asset or liability. The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 28.0 $ — $ — $ 28.0 $ 22.9 $ — $ — $ 22.9 Government and agency securities 9.0 — — 9.0 10.7 0.9 — 11.6 Corporate bonds - investment grade — — — — — 31.5 — 31.5 Equity securities - U.S. companies 0.1 — — 0.1 0.1 — — 0.1 Common collective funds - fixed income 31.0 — — 31.0 29.9 — — 29.9 Mutual funds - fixed income 30.5 — — 30.5 31.6 — — 31.6 Mutual funds - international equity — — — — 21.5 — — 21.5 $ 98.6 $ — $ — $ 98.6 $ 116.7 $ 32.4 $ — $ 149.1 Investments measured at net asset value: Equity securities - international companies $ — $ 0.4 Common collective funds - domestic equities — 19.9 Common collective funds - international equities 45.8 17.5 Common collective funds - fixed income 166.1 82.6 Common collective funds - diversified growth — 12.1 Limited partnerships 5.4 6.8 Real estate partnerships 3.5 5.2 Other liability-driven investments 51.6 68.6 Other assets 25.0 24.9 Total Assets $ 396.0 $ 387.1 International investments measured at net asset value totaled $164.0 million and $155.0 million at December 31, 2023 and 2022, respectively. Cash and cash equivalents are valued at redemption value. Government and agency securities are valued at the closing price reported in the active market in which the individual securities are traded. Certain corporate bonds are valued at the closing price reported in the active market in which the bond is traded. Equity securities (both common and preferred stock) are valued at the closing price reported in the active market in which the individual security is traded. Common collective funds are valued based on a net asset value per share. Mutual funds classified as Level 1 assets include investments in fixed income and international equities. These investments are comprised of securities listed on exchange, market, or automated quotation systems, for which active, quoted prices are available. Mutual funds are valued based on a net asset value per share for shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. Asset-backed securities are valued based on quoted prices for similar assets in active markets. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. Note 17 - Retirement Benefit Plans (continued) Limited partnerships include investments in funds that invest primarily in private equity, venture capital and distressed debt. Limited partnerships are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value, per the underlying investment fund, which is based upon the general partner's own assumptions about the assumptions a market participant would use in pricing the assets and liabilities of the partnership. Real estate investments include funds that invest in companies that primarily invest in commercial and residential properties, commercial mortgage-backed securities, debt and equity securities of real estate operating companies, and real estate investment trusts. Other real estate investments are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value per the underlying investment fund, which is based on appraised values and current transaction prices. Other liability-driven investments mainly include investments in index-linked open-end swap funds. These funds invest in cash held deposits that reflect the index-linked deferred annuity with payment terms of specific years linked to UK inflation measures. The underlying assets in this investment are valued daily. Common collective funds - diversified growth investments are pooled funds that invest in a multiple underlying asset classes, such as equities, fixed income, commodities, alternative investments, and cash in an effort to achieve returns on investment through capital appreciation and income. The underlying assets in this investment are valued daily. Cash Flows: Employer Contributions to Defined Benefit Plans 2022 $ 11.2 2023 27.1 2024 (estimated) 25.0 Estimated future benefit payments, including estimated lump sum distributions, are expected to be as follows: Benefit Payments 2024 $ 49.9 2025 46.2 2026 47.3 2027 43.7 2028 43.1 2029-2033 204.4 Employee Savings Plans: |
Other Postretirement Benefit Pl
Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Postretirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Other Postretirement Benefit Plans | Note 18 - Other Postretirement Benefit Plans The Company and its subsidiaries sponsor several postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. Depending on retirement date and employee classification, certain health care plans contain contribution and cost-sharing features such as deductibles, coinsurance and limitations on employer-provided subsidies. The remaining health care and life insurance plans are noncontributory. The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: 2023 2022 2021 Components of net periodic credit: Service cost $ 0.1 $ 0.2 $ 0.2 Interest cost 1.9 1.4 1.5 Amortization of prior service credit (8.3) (10.1) (10.1) Recognition of net actuarial gains (1.0) (13.1) (4.1) Net periodic credit $ (7.3) $ (21.6) $ (12.5) Assumptions: 2023 2022 2021 Discount rate 5.75 % 2.99 % 2.62 % The following table summarizes assumptions used to measure the benefit obligation for the other postretirement benefit plans at December 31: Assumptions: 2023 2022 Discount rate 5.55 % 5.75 % The Company recognized actuarial gains of $1.0 million during 2023 primarily due to lower than expected benefit payments of $1.4 million and $0.1 million due to changes in other actuarial assumptions. These actuarial gains were partially offset a $0.5 million loss due to the impact of a 20 basis point decrease in the discount rate used to measure the Company's defined benefit postretirement obligations, which decreased from 5.75% in 2022 to 5.55% in 2023. The Company recognized actuarial gains of $13.1 million during 2022 primarily due to the impact of a 276 basis point increase in the discount rate used to measure the Company's defined benefit postretirement obligations, which increased from 2.99% in 2021 to 5.75% in 2022. The increase in the discount rate resulted in a $8.4 million gain. In addition to the gain from the discount rate increases, the Company recognized actuarial gains of $3.0 million due to the impact of a reduction in the rate for Medicare Advantage plans and $1.9 million due to lower than expected benefit payments. These actuarial gains were offset $0.2 million of changes to other assumptions. The Company recognized actuarial gains of $4.1 million during 2021 primarily due to the impact of a 37 basis point increase in the discount rate used to measure the Company's defined benefit postretirement obligations, which increased from 2.62% in 2020 to 2.99% in 2021. The increase in the discount rate resulted in a $1.6 million gain. In addition to the gain from the discount rate increases, the Company recognized actuarial gains of $1.1 million due to lower than expected benefit payments, $1.0 million due to the impact of a reduction in the rate for Medicare Advantage plans and $0.4 million due to changes in other actuarial assumptions . Note 18 - Other Postretirement Benefit Plans (continued) The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. For expense purposes in 2023, the Company applied a discount rate of 5.75% to its other postretirement benefit plans. For expense purposes in 2024, the Company will apply a discount rate of 5.55% to its other postretirement benefit plans. The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the other postretirement benefit plans as of December 31, 2023 and 2022: 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 35.5 $ 51.1 Service cost 0.1 0.2 Interest cost 1.9 1.4 Plan amendments — (0.6) Actuarial gains (1.0) (13.1) International plan exchange rate change (0.1) (0.1) Benefits paid (2.7) (3.4) Benefit obligation at end of year $ 33.7 $ 35.5 Funded status at end of year $ (33.7) $ (35.5) Amounts recognized on the Consolidated Balance Sheets: Current liabilities $ (3.5) $ (4.1) Non-current liabilities (30.2) (31.4) $ (33.7) $ (35.5) Amounts recognized in accumulated other comprehensive loss: Net prior service credit $ (63.6) $ (71.9) Accumulated other comprehensive loss $ (63.6) $ (71.9) Changes to prior service credit recognized in accumulated other Accumulated other comprehensive loss at beginning of year $ (71.9) $ (81.4) Prior service credit — (0.6) Recognized prior service credit 8.3 10.1 Total recognized in accumulated other comprehensive loss at December 31 $ (63.6) $ (71.9) The presentation in the above tables for amounts recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets is before the effect of income taxes. The current portion of accrued postretirement benefits, which was included in salaries, wages and benefits on the Consolidated Balance Sheets, was $3.5 million and $4.1 million at December 31, 2023 and 2022, respectively. In 2023, the current portion of accrued postretirement benefits related to unfunded plans and represented the actuarial present value of expected payments related to the plans to be made over the next 12 months. Note 18 - Other Postretirement Benefit Plans (continued) For measurement purposes, the Company assumed a weighted-average annual rate of increase in the per capita cost (health care cost trend rate) of 6.25% for 2024, declining gradually to 5.0% in 2029 and thereafter for medical and prescription drug benefits. For Medicare Advantage benefits, actual contract rates have been set for 2024 through 2026, and are assumed to increase by $5 per year for 2027 to 2028 and then 6.0% for 2028, declining gradually to 5.0% in 2032 and thereafter. Cash Flows: Estimated future benefit payments to be funded by the Company are expected to be as follows: Future Benefit Payments 2024 $ 3.6 2025 3.6 2026 3.6 2027 3.5 2028 3.4 2029-2033 13.8 |
Sale of Shares of Timken India
Sale of Shares of Timken India Limited | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Sale of Shares of Timken India Limited | Note 19 - Sale of Shares of Timken India Limited On June 20, 2023, the Company completed the sale of 7.6 million shares of TIL, a publicly traded subsidiary of the Company, generating net proceeds of $229 million after estimated income taxes of $55 million and transaction costs. The sale reduced the Company’s ownership in TIL from 67.8 percent to 57.7 percent. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Note 20 - Accumulated Other Comprehensive (Loss) Income The following tables present details about components of accumulated other comprehensive (loss) income for the years ended December 31, 2023 and December 31, 2022: Foreign currency Pension and postretirement Change in fair value of Total Balance at December 31, 2022 $ (235.7) $ 50.8 $ 3.0 $ (181.9) Ownership changes 6.6 — — 6.6 Other comprehensive income (loss) before reclassifications 33.5 (0.2) (2.0) 31.3 Amounts reclassified from accumulated other comprehensive — (7.9) 0.9 (7.0) Income tax benefit — 2.0 0.3 2.3 Net current period other comprehensive income (loss), 40.1 (6.1) (0.8) 33.2 Noncontrolling interest 1.8 — — 1.8 Net current period comprehensive income (loss), net 41.9 (6.1) (0.8) 35.0 Balance at December 31, 2023 $ (193.8) $ 44.7 $ 2.2 $ (146.9) Foreign currency Pension and postretirement Change in fair value of Total Balance at December 31, 2021 $ (80.3) $ 56.6 $ 0.7 $ (23.0) Other comprehensive (loss) income before reclassifications (162.7) 1.1 6.6 (155.0) Amounts reclassified from accumulated other comprehensive — (8.8) (3.7) (12.5) Income tax benefit (expense) — 1.9 (0.6) 1.3 Net current period other comprehensive (loss) income, (162.7) (5.8) 2.3 (166.2) Noncontrolling interest 7.3 — — 7.3 Net current period comprehensive (loss) income, net (155.4) (5.8) 2.3 (158.9) Balance at December 31, 2022 $ (235.7) $ 50.8 $ 3.0 $ (181.9) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 21 - Fair Value The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 384.4 $ 381.0 $ 3.4 $ — Cash and cash equivalents measured at net asset value 34.5 Restricted cash 0.4 0.4 — — Short-term investments 31.6 — 31.6 — Foreign currency forward contracts 3.3 — 3.3 — Total Assets $ 454.2 $ 381.4 $ 38.3 $ — Liabilities: Foreign currency forward contracts $ 11.4 $ — $ 11.4 $ — Total Liabilities $ 11.4 $ — $ 11.4 $ — December 31, 2022 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 292.1 $ 289.3 $ 2.8 $ — Cash and cash equivalents measured at net asset value 39.5 Restricted cash 9.1 9.1 — — Short-term investments 39.2 — 39.2 — Interest rate swap 3.1 — 3.1 — Foreign currency forward contracts 4.5 — 4.5 — Total Assets $ 387.5 $ 298.4 $ 49.6 $ — Liabilities: Foreign currency forward contracts $ 19.8 $ — $ 19.8 $ — Total Liabilities $ 19.8 $ — $ 19.8 $ — Cash and cash equivalents are highly liquid investments with maturities of 90 days or less when purchased and are valued at redemption value. Short-term investments are investments with maturities between 91 days and one year, and generally are valued at amortized cost, which approximates fair value. A portion of the cash and cash equivalents and short-term investments are valued based on net asset value. The Company uses publicly available market interest rates to measure the fair value of its interest rate swap contracts. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts. In addition, the Company remeasures certain assets to fair value, using Level 3 measurements, as a result of the occurrence of triggering events such as purchase accounting for acquisitions or goodwill impairment. During the third quarter of 2023, TWB was reclassified to assets held for sale. In conjunction with this reclassification, the legal entity, with a carrying value of $10.3 million, was written down to $9.3 million, which represented its estimated fair value less the cost to sell, resulting in an impairment charge of $1.0 million. The fair value for these net assets was determined based on an estimate of the value expected to be received upon the sale of this business. See Note 2 - Acquisitions and Divestitures for further discussion. During the third quarter of 2023, property, plant and equipment and leased assets at the Company's joint venture in Russia, with a carrying value of $3.9 million, were written down to their estimated fair value, resulting in an impairment charge of $3.9 million. The fair value for these assets was determined based on the best estimate of the price that would be realized in a current transaction to sell the business and related assets to a third party. Note 21 - Fair Value (continued) During the third quarter of 2022, the Company's ADS business, located in Manchester, Connecticut, was reclassified to assets held for sale. In conjunction with this reclassification, the ADS business, with a carrying value of $62.1 million, was written down to its estimated fair value less cost to sell of $32.8 million, resulting in an impairment charge of $29.3 million. The Company subsequently sold ADS on November 1, 2022. The fair value for these net assets was determined based on an estimate of the value expected to be received upon the sale of this business. See Note 2 - Acquisitions and Divestitures for further discussion. In 2022, property, plant and equipment at the Russian JV, with a carrying value of $16.1 million, were written down to their fair value of $7.1 million, resulting in an impairment charge of $9.0 million. The fair value for these assets was determined based on an estimate of the best price that would be received in a current transaction to sell the assets to a third party. No other material assets were measured at fair value on a nonrecurring basis during the years ended December 31, 2023 and 2022. Financial Instruments: The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, net accounts receivable, trade accounts payable, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable, and short-term borrowings are a reasonable estimate of their fair value. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company's long-term variable-rate debt is a reasonable estimate of its fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $1,387.7 million and $1,353.5 million at December 31, 2023 and 2022, respectively. The carrying value of this debt was $1,424.3 million and $1,417.9 million at December 31, 2023 and 2022, respectively. The fair value of long-term fixed-rate debt was measured using Level 2 inputs. The Company does not believe it has significant concentrations of risk associated with the counterparts to its financial instruments. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 22 - Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts on various foreign currencies are entered into in order to manage the foreign currency exchange rate risk associated with certain of the Company's commitments denominated in foreign currencies. From time to time, interest rate swaps are used to manage interest rate risk associated with the Company’s fixed, and floating-rate borrowings. The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as cash flow hedges of fixed-rate borrowings. On September 8, 2020, the Company entered into a $100 million floating-to-fixed rate swap on the 2023 Term Loan, which hedges the change in the 1-month LIBOR rate October 30, 2020 through September 11, 2023 to a fixed rate. The Company repaid the LIBOR based 2023 Term Loan on December 5, 2022 and replaced it with the SOFR based 2027 Term Loan. The Company amended the interest rate for the swap from LIBOR to SOFR commencing January 2023. The Company’s risk management objective is to hedge the risk of changes in the monthly interest expense attributable to changes in the benchmark interest rate. The swap matured on September 11, 2023. On September 15, 2020, the Company designated €54.5 million of its €150.0 million fixed-rate senior unsecured notes, maturing on September 7, 2027 (the "2027 Notes") as a hedge against its net investment in one of its European affiliates. The objective of the hedge transaction is to protect the net investment in the foreign operations against changes in the exchange rate between the U.S. dollar and the Euro. The net impact for the twelve months ended December 31, 2023 was to record a loss of $1.8 million to accumulated comprehensive loss (income) with a corresponding offset to other (expense) income, which partially offsets the impact of the foreign currency adjustment on the 2027 Notes. The Company entered into $350 million of floating-to-fixed 10-year Treasury rate locks during the first quarter of 2022, prior to issuing the 2032 Notes. This fixed the 10-year Treasury yield and settled at pricing of the 2032 Notes, resulting in $6.5 million of cash proceeds received by the Company. This amount was recorded to accumulated comprehensive income and will be amortized as a reduction in interest expense over the 10-year tenor of the 2032 Notes. The Company does not purchase or hold any derivative financial instruments for trading purposes. As of December 31, 2023 and 2022, the Compan y had $591.8 million and $635.6 million, respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 21 - Fair Value for the fair value disclosure of derivative financial instruments. Cash Flow Hedging Strategy: For certain derivative instruments that are designated and qualify as cash flow hedges ( i.e ., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any ( i.e ., the ineffective portion), or hedge components excluded from the assessment of effectiveness, are recognized in the Consolidated Statement of Income during the current period. To protect against a reduction in the value of forecasted foreign currency cash flows resulting from export sales, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted cash flows denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. As of December 31, 2023 and 2022, the Company had $73.8 million and $82.3 million, respectively, of outstanding foreign currency forward contracts at notional value that were classified as cash flow hedges. The maximum length of time over which the Company hedges it exposure to the variability in future cash flows for forecast transactions is generally eighteen months or less. Note 22 - Derivative Instruments (continued) Derivative Instruments not designated as Hedging Instruments: For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies typically are hedged with a forward contract at the inception of loan with a maturity date at the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility. As of December 31, 2023 and 2022 , the Company had $518.0 million and $553.3 million, respectively, of outstanding foreign currency forward contracts at notional value that were not designated as hedging instruments. The following table presents the impact of derivative instruments not designated as hedging instruments for the years ended December 31, 2023, 2022 and 2021, and the related location within the Consolidated Statements of Income. Amount of gain or (loss) Year Ended December 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2023 2022 2021 Foreign currency forward contracts Other income (expense), net $ (15.0) $ (25.2) $ 3.6 |
Research and Development
Research and Development | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development [Abstract] | |
Research and Development | Note 23 - Research and Development The Company leverages its technical knowledge, research expertise, and production and engineering capabilities across all of its products and end markets to deliver high-performance products and services to its customers. Costs included in "Research and Development Expense" primarily relate to new product innovation. Costs included in "Engineering Expense" primarily relate to the technological enhancement of existing products and services as we align with our customers evolving needs. Expenditures may fluctuate from year-to-year depending on special projects and needs. Year Ended December 31, Expenditures as a percentage of sales 2023 2022 2021 Research and Development Expense 0.8 % 0.8 % 0.9 % Engineering Expense 1.9 % 1.5 % 1.4 % Total 2.7 % 2.3 % 2.3 % |
Government Assistance
Government Assistance | 12 Months Ended |
Dec. 31, 2023 | |
Government Assistance [Abstract] | |
Government Assistance | Note 24 - Government Assistance From time to time, the Company receives government assistance in the form of grants and other incentives from various governments to support capital projects and other business development. The amount received is typically based on the amount of qualifying capital expenditures or business development costs in the countries providing the government assistance. The Company typically has to meet certain requirements, such as adding or maintaining a specified number of qualifying positions, to retain the government assistance or the funds can be clawed back by the government. Once the Company determines that it will meet the requirements of the government assistance, the funds are recognized over the life of the related assets or as the costs are incurred. For amounts that are expected to be paid back, the Company recognizes applicable interest expense. As of December 31, 2023, the Company has $1.6 million and $36.0 million of government assistance in other current liabilities other non-current liabilities cost of products sold SG&A interest expense In 2022, the Company acquired Spinea. Prior to the acquisition, Spinea received incentives totaling $18.0 million from the Slovakian Government to invest in a new production facility and related machinery and equipment. As a result, Spinea is required to create 450 new jobs. If Spinea is unable to meet these commitments, all or a portion of the incentive could be recaptured with interest by October 2027. The Company is currently accounting for a potential shortfall of $16.7 million, including interest. The remaining amount is being amortized over the period the costs are being incurred. The Company recorded amortization expense of $2.1 million as a reduction to cost of products sold interest expense In 2017 and 2018, the Company received grants from the Romanian Government for the reimbursement of capital investments for its new production facility, totaling $16.5 million. While the original grants were based on capital investments, the Company needs to pay various taxes, including corporate income tax, payroll taxes and building tax, totaling $16.5 million between 2019 through 2024. If the total tax obligation is not met, any shortfall could result in a recapture of the grant with interest as early as December 2024. The Company is currently accounting for a potential shortfall of $8.4 million, including interest. The incentive is being amortized over the useful life of the assets. Cumulatively as of December 31, 2023, the Company recorded amortization expense of $1.6 million as a reduction to cost of products sold interest expense The Company may have receive other government assistance that is not described above; however, the total amount of the government assistance is immaterial to the Company’s Consolidated Financial Statements. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Note 25 - Quarterly Financial Data (Unaudited ) 2023 1st 2nd 3rd 4th Total Net sales $ 1,262.8 $ 1,272.3 $ 1,142.7 $ 1,091.2 $ 4,769.0 Cost of products sold 846.0 866.9 787.1 759.9 3,259.9 Selling, general and administrative expenses 186.8 184.9 179.6 189.5 740.8 Amortization of intangible assets 13.5 17.3 17.5 17.4 65.7 Impairment and restructuring charges 28.9 2.5 8.9 5.2 45.5 Operating income 187.6 200.7 149.6 119.2 657.1 Net income (1) 125.7 129.5 90.9 61.9 408.0 Net income attributable to noncontrolling interests 3.4 4.3 3.0 3.2 13.9 Net income attributable to The Timken Company 122.3 125.2 87.9 58.7 394.1 Net income per share - Basic: $ 1.69 $ 1.74 $ 1.24 $ 0.84 $ 5.52 Net income per share - Diluted: $ 1.67 $ 1.73 $ 1.23 $ 0.83 $ 5.47 Dividends per share $ 0.31 $ 0.33 $ 0.33 $ 0.33 $ 1.30 2022 1st 2nd 3rd 4th Total Net sales $ 1,124.6 $ 1,153.7 $ 1,136.4 $ 1,082.0 $ 4,496.7 Cost of products sold 786.3 801.3 802.9 774.2 3,164.7 Selling, general and administrative expenses 154.1 155.9 159.8 167.3 637.1 Amortization of intangible assets 10.9 10.6 10.7 11.7 43.9 Impairment and restructuring charges 1.0 10.0 31.3 1.8 44.1 Operating income 172.3 175.9 131.7 127.0 606.9 Net income (2) 121.9 105.6 90.4 99.1 417.0 Net income attributable to noncontrolling interests 3.7 0.6 3.4 1.9 9.6 Net income attributable to The Timken Company 118.2 105.0 87.0 97.2 407.4 Net income per share - Basic: $ 1.58 $ 1.43 $ 1.19 $ 1.34 $ 5.54 Net income per share - Diluted: $ 1.56 $ 1.42 $ 1.18 $ 1.32 $ 5.48 Dividends per share $ 0.30 $ 0.31 $ 0.31 $ 0.31 $ 1.23 Earnings per share are computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. (1) Net income for the first quarter of 2023 included goodwill impairment charges of $28.3 million. Net income for the fourth quarter of 2023 included net actuarial losses of $22.3 million. (2) Net income for the second quarter of 2022 included net actuarial losses of $11.6 million. Net income for the third quarter of 2022 included impairment charges of $29.3 million. Net income for the fourth quarter of 2022 included net actuarial gains of $12.3 million. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II—Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts The Timken Company and Subsidiaries Allowance for uncollectible accounts: 2023 2022 2021 Balance at beginning of period $ 17.9 $ 16.9 $ 16.5 Additions: Charged to costs and expenses (1) (1.0) 3.7 3.5 Deductions: Charged to costs and expenses (3) 0.2 0.4 2.5 Charged to other accounts (2) (0.4) 2.3 0.6 Balance at end of period $ 17.1 $ 17.9 $ 16.9 Allowance for surplus and obsolete inventory: 2023 2022 2021 Balance at beginning of period $ 58.4 $ 63.3 $ 54.5 Additions: Charged to costs and expenses (4) 25.0 12.9 13.4 Charged to other accounts (2) 7.9 1.2 (0.7) Deductions (5) 17.6 19.0 3.9 Balance at end of period $ 73.7 $ 58.4 $ 63.3 Valuation allowance on deferred tax assets: 2023 2022 2021 Balance at beginning of period $ 31.3 $ 31.0 $ 36.7 Additions: Charged to costs and expenses (6) 10.6 3.1 3.1 Deductions Charged to costs and expenses (7) 2.1 0.9 7.8 Charged to other accounts (2) 0.5 1.9 1.0 Balance at end of period $ 39.3 $ 31.3 $ 31.0 (1) Provision for uncollectible accounts included in expenses. (2) Currency translation and change in reserves due to acquisitions, net of divestitures. (3) Actual accounts written off against the allowance, net of recoveries. (4) Provision for surplus and obsolete inventory included in expenses. (5) Inventory items written off against the allowance. (6) Increase in valuation allowance is recorded as a component of the provision for income taxes. (7) Amount relates to the reversal of valuation allowances and was recorded as a component of the provision for income taxes. The Company released $2.1 million of foreign valuation allowances for the year ended December 31, 2023. Refer to Note 5 - Income Taxes |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: |
Revenue | Revenue: A contract exists when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is generally recognized as performance obligations under the terms of a contract with a customer of the Company are satisfied. Of the Company's revenue, approximately 88% to 92% is from fixed-price contracts and continues to be recognized as of a point in time when products are shipped from the Company's manufacturing or distribution facilities or at a later point in time when control of the products transfers to the customer. The Company recognizes approximately 8% to 12% of revenue over time for services and certain sales of customer-specific product as it satisfies the performance obligations because of the continuous transfer of control to the customer, supported as follows: • For certain service contracts, this continuous transfer of control to the customer occurs as the Company's service enhances assets that the customer owns and controls at all times, and the Company is contractually entitled to payment for work performed to date plus a reasonable margin. • For U.S. government contracts, the customer is allowed to unilaterally terminate the contract for convenience, and is required to pay the Company for costs incurred plus a reasonable margin and can take control of any work in process. • For certain non-U.S. government contracts involving customer-specific products, the customer controls the work in process based on contractual termination clauses or restrictions on the Company's use of the product, and the Company possesses a right to payment for work performed to date plus a reasonable margin. As a result of control transferring over time for these products and services, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company has elected to use the cost-to-cost input measure of progress for these contracts because it best depicts the transfer of goods or services to the customer based on incurring costs on the contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. The pricing and payment terms for non-U.S. government contracts are based on the Company's standard terms and conditions or the result of specific negotiations with each customer. The Company's standard terms and conditions require payment 45 to 75 days from the invoice date, but the timing of payment for specific negotiated terms may vary. The Company also has both prime and subcontracts in support of the provision of goods and services to the U.S. government. Certain of these contracts are subject to the Federal Acquisition Regulation ("FAR") and are priced based on competitive market prices. Under the payment terms of certain of those U.S. government fixed-price contracts, the customer pays the Company performance-based payments, which are interim payments of up to 90% of the costs incurred to date based on quantifiable measures of performance or on the achievement of specified events or milestones. Because the customer retains a portion of the contract price until completion of such contracts, certain of these U.S. government fixed-price contracts result in revenue recognized in excess of billings, which is presented within "Unbilled receivables" on the Consolidated Balance Sheets. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. Note 1 - Significant Accounting Policies (continued) Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value-added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. As a practical expedient, the Company may exclude an assessment of whether promised goods or services are performance obligations, if such promised goods and services are immaterial to the customer contract taken as a whole, and combine these with other performance obligations. The Company has also elected not to adjust the promised amount of consideration for the effects of any significant financing component where the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Finally, the Company's policy is to exclude performance obligations resulting from contracts with a duration of one year or less from its disclosures related to remaining performance obligations. The amount of consideration to which the Company expects to be entitled in exchange for the goods and services is not generally subject to significant variations. However, the Company does offer certain customers rebates, prompt payment discounts, end-user discounts, the right to return eligible products, and/or other forms of variable consideration. The Company estimates this variable consideration using the expected value amount, which is based on historical experience. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company adjusts the estimate of revenue at the earlier of when the amount of consideration the Company expects to receive changes or when the consideration becomes fixed. The Company recognizes the cost of freight and shipping when control of the products or services has transferred to the customer as an expense in "Cost of products sold" on the Consolidated Statement of Income, because those are costs incurred to fulfill the promise recognized, not a separate performance obligation. To the extent certain freight and shipping fees are charged to customers, the Company recognizes the amounts charged to customers as revenues and the related costs as an expense in "Cost of products sold" when control of the related products or services has transferred to the customer. Contracts are occasionally modified to account for changes in contract specifications, requirements, and pricing. The Company considers contract modifications to exist when the modification either creates new enforceable rights and obligations or changes existing ones. Substantially all of the Company's contract modifications are for goods or services that are distinct from the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is generally recognized on a prospective basis. |
Cash Equivalents | Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Restricted Cash | Restricted Cash: Cash and cash equivalents of $0.4 million and $9.1 million were restricted at December 31, 2023 and 2022, respectively. The decrease in restricted cash was primarily due to the deconsolidation of the Company's Russian joint venture. |
Accounts Receivable, Less Allowance | Accounts Receivable, Less Allowances: Accounts receivable, less allowances on the Consolidated Balance Sheets include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts, which represents an estimate of the losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance is based upon historical trends in collections and write-offs, management's judgment of the probability of collecting accounts and management's evaluation of business risk. The Company extends credit to customers satisfying predefined credit criteria. The Company believes it has limited concentration of credit risk due to the diversity of its customer base. |
Unbilled Receivables | Unbilled Receivables: Unbilled receivables on the Consolidated Balance Sheets primarily include unbilled amounts typically resulting from sales under long-term contracts when the following conditions exist: (i) cost-to-cost method of revenue recognition is utilized; (ii) the revenue recognized exceeds the amount billed to the customer; and (iii) the right to payment is generally subject to the passage of time as milestones are achieved. The amounts recorded for unbilled receivables do not exceed their net realizable value. |
Inventories | Inventories: Inventories are valued at the lower of cost or net realizable value, with approximately 62% valued by the FIFO method and the remaining 38% valued by the LIFO method. The majority of the Company’s domestic inventories are valued by the LIFO method, while substantially all of the Company’s international inventories are valued by the FIFO method. |
Investments | Investments: Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company held short-term investments as of December 31, 2023 and 2022 with a fair value and cost ba sis of $31.6 million an d $39.2 million, respectively, which were included in "Other current assets" on the Consolidated Balance Sheets. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment, net on the Consolidated Balance Sheets is valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed by the straight-line method based upon the estimated useful lives of the assets. The useful lives are 10 to 30 years for buildings, three three The impairment of long-lived assets is evaluated when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value. |
Leases | Leases: The Company determines if any arrangement is a lease at the inception of a contract. For leases where the Company is the lessee, it recognizes lease assets and related lease liabilities at the lease commencement date based on the present value of lease payments over the lease term. Most of the Company’s leases do not provide an implicit interest rate. As a result, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease assets also consist of amounts for favorable or unfavorable lease terms related to acquisitions. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. A lease asset and lease liability are not recorded for leases with an initial term of 12 months or less, and the lease expense related to these leases is recognized as incurred over the lease term. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: one |
Purchase accounting and business combinations | Purchase accounting and business combinations: |
Product Warranties | Product Warranties: The Company provides limited warranties on certain of its products. The Company accrues liabilities for warranties generally based upon specific claims and in certain instances based on historical warranty claim experience in accordance with accounting rules relating to contingent liabilities. When the Company becomes aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim data and historical experience change. |
Income Taxes | Income Taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. The Company recognizes valuation allowances against deferred tax assets by tax jurisdiction when it is more likely than not those assets will not be realized. Accruals for uncertain tax positions are provided for in accordance with ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The Company has elected to account for Global Intangible Low Tax Income ("GILTI") as a period cost. |
Foreign Currency | Foreign Currency: |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits: |
Stock-Based Compensation | Stock-Based Compensation: |
Earnings Per Share | Earnings Per Share: Certain unvested restricted share grants provide for the payment of non-forfeitable dividends. The Company considers these awards as participating securities. Earnings per share are computed using the two-class method. Basic earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding, adjusted for the dilutive impact of outstanding stock-based awards. As of December 31, 2023, there are no participating securities outstanding. |
Derivative Instruments | Derivative Instruments: The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. Derivatives that are not designated as hedges are adjusted to fair value through earnings. If the derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in accumulated other comprehensive loss (income) until the hedged item is recognized in earnings. The Company’s holdings of forward foreign currency exchange contracts qualify as derivatives pursuant to the criteria established in derivative accounting guidance, and the Company has designated certain of those derivatives as hedges. |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Because actual results could differ from these estimates, the Company reviews and updates these estimates and assumptions regularly to reflect recent experience. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: New Accounting Guidance Adopted: In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50)." ASU 2022-04 is intended to establish disclosures that enhance the transparency of a supplier finance program used by an entity in connection with the purchase of goods and services. Supplier finance programs, which also may be referred to as reverse factoring, payables finance or structured payables arrangements, allow a buyer to offer its suppliers the option for access to payment in advance of an invoice due date, which is paid by a third-party finance provider or intermediary. Under the guidance, a buyer in a supplier finance program would disclose qualitative and quantitative information about its supplier finance programs. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Refer to Note 13 - Supply Chain Financing in the Notes to the Consolidated Financial Statements for additional information. New Accounting Guidance Issued and Not Yet Adopted: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 40). ASU 2023-09 is intended to enhance the transparency and decision to improve the usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require that all entities disclose on an annual basis the amount of income taxes paid disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. For public business entities, the new guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. Note 1 - Significant Accounting Policies (continued) In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). ASU 2023-07 requires that a public entity disclose: (1) on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; (2) on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; and (3) the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The other segment items category is the difference between segment revenue less the segment expenses disclosed and each reported measure of segment profit or loss. For public business entities, the new guidance is effective for annual periods beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. |
Government Assistance | From time to time, the Company receives government assistance in the form of grants and other incentives from various governments to support capital projects and other business development. The amount received is typically based on the amount of qualifying capital expenditures or business development costs in the countries providing the government assistance. The Company typically has to meet certain requirements, such as adding or maintaining a specified number of qualifying positions, to retain the government assistance or the funds can be clawed back by the government. Once the Company determines that it will meet the requirements of the government assistance, the funds are recognized over the life of the related assets or as the costs are incurred. For amounts that are expected to be paid back, the Company recognizes applicable interest expense. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocations at Fair Value, Net of Cash Acquired | The purchase price allocations at fair value, net of cash acquired, for 2023 and 2022 acquisitions as of December 31, 2023 and 2022 are presented below: 2023 2022 Assets: Accounts receivable $ 44.7 $ 30.7 Inventories 111.8 52.1 Other current assets 5.0 8.0 Property, plant and equipment 47.7 148.7 Operating lease assets 7.3 4.9 Goodwill 285.6 107.9 Other intangible assets 306.7 182.0 Other non-current assets 6.7 2.4 Total assets acquired $ 815.5 $ 536.7 Liabilities: Accounts payable, trade $ 24.0 $ 16.2 Salaries, wages and benefits 16.9 12.0 Income taxes payable 5.5 3.2 Other current liabilities 10.7 6.0 Short-term debt 4.7 — Long-term debt 6.0 — Accrued pension cost 3.6 3.5 Long-term operating lease liabilities 7.0 0.8 Deferred income taxes 83.3 24.0 Other non-current liabilities 7.6 19.5 Total liabilities assumed $ 169.3 $ 85.2 Noncontrolling interest acquired 5.2 — Net assets acquired $ 641.0 $ 451.5 Cash flow reconciling items: Working capital adjustment related to 2022 acquisitions received in 2023 (2.2) 2.2 Cash paid for acquisitions, net of cash acquired $ 638.8 $ 453.7 |
Schedule of Preliminary Purchase Price Allocation at Fair Value for Identifiable Intangible Assets Acquired | The following table summarizes the preliminary purchase price allocation at fair value for identifiable intangible assets acquired in 2023 and 2022: 2023 2022 Weighted- Weighted- Trade names (indefinite life) $ — Indefinite $ 30.0 Indefinite Trade names (finite life) 39.0 19 years 6.2 20 years Technology and know-how 67.6 15 years 36.0 13 years Customer relationships 199.5 15 years 107.6 15 years Capitalized software 0.6 2 years 2.2 2 years Total intangible assets $ 306.7 $ 182.0 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents details deemed most relevant to the users of the financial statements about total revenue for the years ended December 31, 2023, 2022 and 2021: December 31, 2023 Engineered Bearings Industrial Motion Total United States $ 1,266.1 $ 789.8 $ 2,055.9 Americas excluding United States 375.6 106.1 481.7 Europe / Middle East / Africa 678.6 499.7 1,178.3 China 503.9 81.7 585.6 Asia-Pacific excluding China 433.5 34.0 467.5 Net sales $ 3,257.7 $ 1,511.3 $ 4,769.0 December 31, 2022 Engineered Bearings Industrial Motion Total United States $ 1,198.1 $ 793.9 $ 1,992.0 Americas excluding United States 383.2 93.0 476.2 Europe / Middle East / Africa 588.9 406.8 995.7 China 529.7 78.8 608.5 Asia-Pacific excluding China 392.7 31.6 424.3 Net sales $ 3,092.6 $ 1,404.1 $ 4,496.7 December 31, 2021 Engineered Bearings Industrial Motion Total United States $ 1,027.5 $ 706.1 $ 1,733.6 Americas excluding United States 318.3 77.4 395.7 Europe / Middle East / Africa 610.7 417.4 1,028.1 China 523.3 88.6 611.9 Asia-Pacific excluding China 335.3 28.3 363.6 Net sales $ 2,815.1 $ 1,317.8 $ 4,132.9 Revenue by sales channel 2023 2022 2021 Original equipment manufacturers 60% 60% 60% Distribution/end users 40% 40% 40% |
Schedule of Rollforward of Unbilled Receivables and Deferred Revenue | The following table contains a rollforward of unbilled receivables for the years ended December 31, 2023 and 2022: 2023 2022 Beginning balance, January 1 $ 103.9 $ 104.5 Additional unbilled revenue recognized 424.1 396.2 Less: amounts billed to customers (383.5) (370.5) Less: unbilled receivables divested — (26.3) Ending balance $ 144.5 $ 103.9 The following table contains a rollforward of deferred revenue for the years ended December 31, 2023 and 2022: 2023 2022 Beginning balance, January 1 $ 54.3 $ 35.8 Acquisitions 1.4 — Revenue (cash) received in advance 165.2 54.8 Less: revenue recognized (175.5) (36.3) Ending balance $ 45.4 $ 54.3 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information and a Reconciliation of Segment | The following tables provide segment financial information and a reconciliation of segment results to consolidated results: 2023 2022 2021 Net sales to external customers: Engineered Bearings $ 3,257.7 $ 3,092.6 $ 2,815.1 Industrial Motion 1,511.3 1,404.1 1,317.8 $ 4,769.0 $ 4,496.7 $ 4,132.9 Segment EBITDA: Engineered Bearings $ 661.7 $ 615.8 $ 513.4 Industrial Motion 262.0 222.8 233.0 Total EBITDA, for reportable segments $ 923.7 $ 838.6 $ 746.4 Unallocated corporate expense (69.9) (50.0) (46.1) Corporate pension and other postretirement benefit related expense (1) (20.6) (2.9) (0.3) Acquisition-related gain (2) — — 0.9 Depreciation and amortization (201.3) (164.0) (167.8) Interest expense (110.7) (74.6) (58.8) Interest income 9.3 3.8 2.3 Income before income taxes $ 530.5 $ 550.9 $ 476.6 (1) Corporate pension and other postretirement benefit related expense represents curtailments, professional fees associated with pension de-risking and actuarial losses that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions. (2) The acquisition-related gain represents a bargain purchase price gain on the acquisition of Aurora, acquired on November 30, 2020. 2023 2022 Assets employed at year-end: Engineered Bearings $ 3,296.8 $ 3,270.3 Industrial Motion 2,744.5 2,070.1 Corporate (2) 500.4 432.0 $ 6,541.7 $ 5,772.4 (2) Corporate assets include corporate buildings and cash and cash equivalents. 2023 2022 2021 Capital expenditures: Engineered Bearings $ 140.7 $ 143.8 $ 118.6 Industrial Motion 46.2 33.2 29.1 Corporate 0.9 1.4 0.6 $ 187.8 $ 178.4 $ 148.3 Depreciation and amortization: Engineered Bearings $ 107.2 $ 87.6 $ 87.2 Industrial Motion 92.7 74.8 78.9 Corporate 1.4 1.6 1.7 $ 201.3 $ 164.0 $ 167.8 |
Schedule of Geographic Financial Information | Geographic Financial Information: 2023 2022 Property, Plant and Equipment, net: United States $ 446.3 $ 418.3 China 278.8 272.5 India 146.2 130.6 Romania 100.6 101.8 Rest of world 340.0 284.2 $ 1,311.9 $ 1,207.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes, Domestic and Foreign | Income before income taxes: 2023 2022 2021 United States $ 173.8 $ 86.0 $ 125.8 Non-United States 356.7 464.9 350.8 Income before income taxes $ 530.5 $ 550.9 $ 476.6 |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following: 2023 2022 2021 Current: Federal $ 10.4 $ 11.2 $ 8.1 State and local 3.8 6.7 3.9 Foreign 119.9 119.6 98.2 $ 134.1 $ 137.5 $ 110.2 Deferred: Federal $ (12.1) $ (7.8) $ (5.2) State and local (1.5) (0.3) (3.4) Foreign 2.0 4.5 (6.5) $ (11.6) $ (3.6) $ (15.1) United States and foreign tax provision on income $ 122.5 $ 133.9 $ 95.1 |
Schedule of Provision for Income Taxes and Effective Income Tax Rate | The following table is the reconciliation between the provision for income taxes and the amount computed by applying the U.S. federal income tax rate of 21% to income before taxes: 2023 2022 2021 Income tax at the U.S. federal statutory rate $ 111.4 $ 115.7 $ 100.1 Adjustments: State and local income taxes, net of federal tax benefit 5.3 5.3 4.0 Tax on foreign remittances and U.S. tax on foreign income 25.6 19.0 15.4 Tax expense related to undistributed earnings of foreign subsidiaries 15.0 1.0 0.1 Foreign losses without current tax benefits 7.7 3.1 2.6 Foreign earnings taxed at different rates including tax holidays 18.1 19.4 15.4 U.S. foreign tax credit (55.8) (15.2) (11.5) Effect of cross-border tax laws (10.3) (3.9) (3.6) Accruals and settlements related to tax audits (3.2) (9.5) (7.7) Valuation allowance changes (2.1) (0.9) (7.8) Stock based compensation (2.9) (1.2) (8.1) Other items, net 13.7 1.1 (3.8) Provision for income taxes $ 122.5 $ 133.9 $ 95.1 Effective income tax rate 23.1 % 24.3 % 20.0 % |
Schedule of Effect of Temporary Differences Giving Rise to Deferred Tax Assets and Liabilities | The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2023 and 2022 was as follows: 2023 2022 Deferred tax assets: Accrued postretirement benefits cost $ 8.0 $ 8.4 Accrued pension cost 44.1 46.5 Other employee benefit accruals 14.3 16.1 Tax loss and credit carryforwards 84.9 80.7 Other, net 58.3 61.7 Valuation allowances (39.3) (31.3) $ 170.3 $ 182.1 Deferred tax liabilities - principally depreciation and amortization (312.5) (250.9) Net deferred tax liabilities $ (142.2) $ (68.8) |
Schedule of Total Gross Unrecognized Tax Benefits | The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 Beginning balance, January 1 $ 26.0 $ 36.1 $ 45.6 Tax positions related to the current year: Additions 7.0 0.6 1.6 Tax positions related to prior years: Additions 9.6 4.0 3.7 Reductions (4.7) (4.7) (8.1) Settlements with tax authorities (0.4) (1.9) (1.7) Lapses in statutes of limitation (3.3) (8.1) (5.0) Ending balance, December 31 $ 34.2 $ 26.0 $ 36.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerator and the Denominator of Basic Earnings Per Share and Diluted Earnings Per Share | The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 Numerator: Net income attributable to The Timken Company $ 394.1 $ 407.4 $ 369.1 Denominator: Weighted average number of shares outstanding - basic 71,377,656 73,602,247 75,885,316 Effect of dilutive securities: Stock options and awards - based on the treasury stock method 704,228 721,592 1,121,273 Weighted average number of shares outstanding, assuming dilution of stock options and awards 72,081,884 74,323,839 77,006,589 Basic earnings per share $ 5.52 $ 5.54 $ 4.86 Diluted earnings per share $ 5.47 $ 5.48 $ 4.79 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | The components of inventories at December 31, 2023 and 2022 were as follows: 2023 2022 Manufacturing supplies $ 41.9 $ 41.7 Raw materials 145.6 132.0 Work in process 496.1 491.2 Finished products 619.2 584.8 Subtotal $ 1,302.8 $ 1,249.7 Allowance for surplus and obsolete inventory (73.7) (58.4) Total Inventories, net $ 1,229.1 $ 1,191.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | The components of property, plant and equipment, net at December 31, 2023 and 2022 were as follows: 2023 2022 Land and buildings $ 679.9 $ 628.4 Machinery and equipment 2,483.4 2,316.5 Subtotal $ 3,163.3 $ 2,944.9 Less: accumulated depreciation (1,851.4) (1,737.5) Property, Plant and Equipment, net $ 1,311.9 $ 1,207.4 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Value of Goodwill | Year ended December 31, 2023: Engineered Bearings Industrial Motion Total Beginning Balance $ 679.8 $ 418.5 $ 1,098.3 Acquisitions 13.2 272.4 285.6 Impairment loss — (28.3) (28.3) Foreign currency translation adjustments and other changes (0.7) 14.7 14.0 Ending Balance $ 692.3 $ 677.3 $ 1,369.6 Year ended December 31, 2022: Engineered Bearings Industrial Motion Total Beginning Balance $ 610.8 $ 411.9 $ 1,022.7 Acquisitions 63.6 43.3 106.9 Foreign currency translation adjustments and other changes 5.4 (36.7) (31.3) Ending Balance $ 679.8 $ 418.5 $ 1,098.3 |
Schedule of Finite-Lived Intangible Assets | The following table displays intangible assets as of December 31, 2023 and 2022: 2023 2022 Gross Accumulated Net Gross Accumulated Net Intangible assets subject Customer relationships $ 776.5 $ (222.8) $ 553.7 $ 561.5 $ (183.2) $ 378.3 Technology and know-how 343.3 (100.9) 242.4 273.1 (80.4) 192.7 Trade names 71.3 (11.2) 60.1 18.4 (8.7) 9.7 Capitalized Software 299.5 (272.8) 26.7 288.4 (266.3) 22.1 Other 10.8 (8.7) 2.1 3.3 (2.3) 1.0 $ 1,501.4 $ (616.4) $ 885.0 $ 1,144.7 $ (540.9) $ 603.8 Intangible assets not Trade names $ 137.7 $ 137.7 $ 152.8 $ 152.8 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 146.4 $ 146.4 $ 161.5 $ 161.5 Total intangible assets $ 1,647.8 $ (616.4) $ 1,031.4 $ 1,306.2 $ (540.9) $ 765.3 |
Schedule of Indefinite-Lived Intangible Assets | The following table displays intangible assets as of December 31, 2023 and 2022: 2023 2022 Gross Accumulated Net Gross Accumulated Net Intangible assets subject Customer relationships $ 776.5 $ (222.8) $ 553.7 $ 561.5 $ (183.2) $ 378.3 Technology and know-how 343.3 (100.9) 242.4 273.1 (80.4) 192.7 Trade names 71.3 (11.2) 60.1 18.4 (8.7) 9.7 Capitalized Software 299.5 (272.8) 26.7 288.4 (266.3) 22.1 Other 10.8 (8.7) 2.1 3.3 (2.3) 1.0 $ 1,501.4 $ (616.4) $ 885.0 $ 1,144.7 $ (540.9) $ 603.8 Intangible assets not Trade names $ 137.7 $ 137.7 $ 152.8 $ 152.8 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 146.4 $ 146.4 $ 161.5 $ 161.5 Total intangible assets $ 1,647.8 $ (616.4) $ 1,031.4 $ 1,306.2 $ (540.9) $ 765.3 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | The following table displays other current liabilities as of December 31, 2023 and 2022: (Dollars in millions) 2023 2022 Sales rebates $ 79.0 $ 82.9 Deferred revenue 45.4 54.3 Operating lease liabilities 25.9 24.1 Product warranty 15.2 23.5 Freight and duties 13.4 21.7 Current derivative liability 11.4 19.8 Taxes other than income and payroll taxes 17.8 18.7 Professional fees 12.5 17.4 Interest 16.4 15.0 Restructuring 5.8 3.1 Other 74.3 72.4 Total other current liabilities $ 317.1 $ 352.9 |
Leasing (Tables)
Leasing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense and Cash Flows from Operating and Financing Leases | Lease expense for the years ended December 31, 2023, 2022 and 2021 was as follows: 2023 2022 2021 Operating lease expense $ 33.5 $ 30.3 $ 34.1 Amortization of right-of-use assets on finance leases 2.2 1.7 2.3 Total lease expense $ 35.7 $ 32.0 $ 36.4 Cash flows from operating and financing leases for the years ended December 31, 2023, 2022 and 2021 was as follows: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33.6 $ 30.1 $ 32.9 Financing cash flows from finance leases 2.1 1.2 2.2 |
Schedule of Impact of Leasing on Consolidated Balance Sheets | The following tables present the impact of leasing on the Consolidated Balance Sheets at December 31, 2023 and 2022: Operating Leases 2023 2022 Lease assets: Operating lease assets $ 119.7 $ 101.4 Lease liabilities: Short-term operating lease liabilities $ 25.9 $ 24.1 Long-term operating lease liabilities 78.7 65.2 Total operating lease liabilities $ 104.6 $ 89.3 |
Schedule of Finance Leases | Finance Leases 2023 2022 Lease assets: Property, plant and equipment, net $ 8.9 $ 4.0 Lease liabilities: Current portion of long-term debt $ 2.4 $ 1.3 Long-term debt 6.1 1.9 Total finance lease liabilities $ 8.5 $ 3.2 |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases at December 31, 2023 were as follows: Operating Leases Finance Leases Year Ending December 31, 2024 $ 29.8 $ 2.6 2025 25.5 2.1 2026 18.1 1.8 2027 13.9 1.0 2028 10.9 0.5 Thereafter 18.8 1.4 Total future minimum lease payments $ 117.0 $ 9.4 Less: imputed interest (12.4) (0.9) Total $ 104.6 $ 8.5 |
Schedule of Lease Assets and Other Information Related to Leases | The following tables present lease assets added for the periods ended December 31, 2023 and 2022: 2023 2022 Lease assets added in the period: Operating leases $ 23.3 $ 22.1 Finance leases 7.9 0.9 The following tables present other information related to leases at December 31, 2023 and 2022: 2023 2022 Weighted-average remaining lease term: Operating leases 5.3 years 5.4 years Finance leases 5.1 years 2.8 years Weighted-average discount rate: Operating leases 4.20 % 3.55 % Finance leases 4.24 % 3.07 % |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | Short-term debt as of December 31, 2023 and 2022 was as follows: 2023 2022 Variable-rate Term Loan (1) maturing on August 16, 2024, with an interest rate of 5.112% at December 31, 2023 $ 220.8 $ — Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 4.35% to 7.33% at December 31, 2023 and 2.38% to 5.50% at December 31, 2022 25.4 46.3 Short-term debt $ 246.2 $ 46.3 |
Schedule of Long-Term Debt | Long-term debt as of December 31, 2023 and 2022 was as follows: 2023 2022 Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 6.48% and Euro of 4.85% at December 31, 2023 and 5.10% and 2.21%, respectively, at December 31, 2022 $ 247.4 $ 8.5 Variable-rate Accounts Receivable Facility, with an interest rate of 6.42% at December 31, 2023 and of 5.01% at December 31, 2022 67.0 85.0 Variable-rate Term Loan (1) , maturing on December 5, 2027, with an interest rate of 6.58% at December 31, 2023 and of 5.55% at December 31, 2022 399.3 399.1 Fixed-rate Senior Unsecured Notes (1) , maturing on September 1, 2024, with an interest rate of 3.875% 350.0 349.8 Fixed-rate Euro Senior Unsecured Notes (1) , maturing on September 7, 2027, with an interest rate of 2.02% 165.5 160.4 Fixed-rate Senior Unsecured Notes (1) , maturing on December 15, 2028, with an interest rate of 4.50% 397.7 397.2 Fixed-rate Medium-Term Notes, Series A (1) , maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% 154.8 154.8 Fixed-rate Senior Unsecured Notes (1) , maturing on April 1, 2032, with an interest rate of 4.125% 343.7 342.1 Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% 12.7 13.6 Other 11.6 6.4 Total debt $ 2,149.7 $ 1,916.9 Less current maturities 359.4 2.7 Long-term debt $ 1,790.3 $ 1,914.2 (1) Net of discount and fees |
Schedule of Maturities of Long-term Debt | The maturities of long-term debt (including $8.5 million of finance leases) for the years subsequent to December 31, 2023 are as follows: Year 2024 $ 359.4 2025 29.1 2026 53.1 2027 837.6 2028 521.2 Thereafter 358.8 |
Supply Chain Financing (Tables)
Supply Chain Financing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Obligation | The following table is a rollforward of the outstanding obligations for the Company’s supplier finance program for the twelve months ended December 31, 2023: December 31, Confirmed obligations outstanding, January 1 $ 14.4 Invoices confirmed 97.1 Confirmed invoices paid (90.2) Confirmed obligations outstanding, ending balance $ 21.3 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rollforward of the Consolidated Product Warranty Accrual | The following is a rollforward of the consolidated product warranty accrual at December 31, 2023 and December 31, 2022, respectively: December 31, December 31, Beginning balance, January 1 $ 23.5 $ 11.7 Expense 5.9 14.7 Payments (14.2) (2.9) Ending balance $ 15.2 $ 23.5 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Awards Granted | A summary of the awards granted in 2023 is presented below: Expected to be Settled in Equity Expected to be Settled in Cash Total Awards Granted Performance-based restricted stock units 174,915 6,800 181,715 Time-based restricted stock units 135,420 4,565 139,985 Deferred shares 31,900 — 31,900 |
Schedule of Stock Award Activity, Including Performance-based Restricted Stock Units, Time-based Restricted Stock Units and Deferred Shares | A summary of stock award activity, including performance-based restricted stock units, time-based restricted stock units and deferred shares that will settle in common shares for the year ended December 31, 2023 is as follows: Number of Shares Weighted-average Outstanding - beginning of year 937,971 $ 63.31 Granted - new awards 342,235 84.31 Adjusted for performance results achieved (1) (15,175) 55.37 Vested (376,261) 53.03 Canceled or expired (19,384) 72.04 Outstanding - end of year 869,386 $ 75.00 (1) Adjustments for the number of shares vested under the 2020 awards at the end of the three-year period ended December 31, 2022 being slightly lower than the target number of shares. |
Schedule of Stock Option Award Activity | A summary of stock option award activity for the year ended December 31, 2023 is presented below: Number of Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term Aggregate Intrinsic Value (millions) Outstanding - beginning of year 921,310 $ 41.61 Exercised (534,218) 40.83 Canceled or expired (475) 42.60 Outstanding - end of year 386,617 $ 42.69 5 years $ 14.5 |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Charges [Abstract] | |
Schedule of Impairment and Restructuring Charges by Segment and Rollforward of the Consolidated Restructuring Accrual | Impairment and restructuring charges by segment were as follows: Year ended December 31, 2023: Engineered Bearings Industrial Motion Total Impairment charges $ 4.9 $ 28.3 $ 33.2 Severance and related benefit costs 5.5 5.6 11.1 Exit costs 0.9 0.3 1.2 Total $ 11.3 $ 34.2 $ 45.5 Year ended December 31, 2022: Engineered Bearings Industrial Motion Total Impairment charges $ 9.0 $ 29.3 $ 38.3 Severance and related benefit costs 2.7 1.5 4.2 Exit costs 1.4 0.2 1.6 Total $ 13.1 $ 31.0 $ 44.1 Year ended December 31, 2021: Engineered Bearings Industrial Motion Total Impairment charges $ 4.4 $ 0.1 $ 4.5 Severance and related benefit costs 0.8 1.8 2.6 Exit costs 1.2 0.6 1.8 Total $ 6.4 $ 2.5 $ 8.9 The following is a rollforward of the consolidated restructuring accrual for the years ended December 31, 2023 and 2022: 2023 2022 Beginning balance, January 1 $ 3.1 $ 7.0 Expense 12.3 5.8 Payments (9.6) (9.7) Ending balance, December 31 $ 5.8 $ 3.1 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) - Pension Plan | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Cost Information and the Related Assumptions Used to Measure the Net Periodic Benefit Cost | The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: U.S. Plans International Plans 2023 2022 2021 2023 2022 2021 Components of net periodic Service cost $ 0.8 $ 6.9 $ 9.5 $ 1.6 $ 1.6 $ 2.0 Interest cost 17.9 17.7 17.6 10.4 5.7 4.4 Expected return on plan assets (8.5) (18.9) (23.2) (10.4) (9.3) (10.2) Amortization of prior service cost 0.2 1.2 1.2 0.2 0.1 0.2 Recognition of net actuarial 9.2 22.6 13.9 12.4 (6.6) (9.5) Net periodic benefit cost (credit) $ 19.6 $ 29.5 $ 19.0 $ 14.2 $ (8.5) $ (13.1) |
Schedule of Assumptions Used to Measure the Benefit Obligation for the Defined Benefit Pension Plans | Assumptions 2023 2022 2021 U.S. Plans: Discount rate 5.62% to 5.74% 3.03% to 4.95% 2.71% to 2.91% Future compensation assumption 2.50% to 3.50% 2.50% to 3.50% 2.50 % Expected long-term return on plan assets 4.31% to 4.91% 4.35% to 5.65% 4.15% to 4.90% International Plans: Discount rate 3.70% to 10.70% 1.00% to 9.50% 0.25% to 7.75% Future compensation assumption 2.80% to 8.00% 2.10% to 8.00% 1.90% to 8.18% Expected long-term return on plan assets 2.50% to 8.90% 2.00% to 8.90% 2.00% to 9.00% The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: Assumptions 2023 2022 U.S. Plans: Discount rate 5.37% to 5.53% 5.62% to 5.74% Future compensation assumption 3.25% 2.50 % International Plans: Discount rate 3.15% to 11.70% 3.70% to 10.70% Future compensation assumption 3.00% to 8.00% 2.80% to 10.00% |
Schedule of Change in Benefit Obligations | The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2023 and 2022: U.S. Plans International Plans 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 335.3 $ 566.3 $ 218.1 $ 343.1 Service cost 0.8 6.9 1.6 1.6 Interest cost 17.9 17.7 10.4 5.7 Actuarial losses (gains) 10.8 (116.4) 10.8 (88.2) International plan exchange rate change — — 10.4 (32.6) Benefits paid (31.6) (139.2) (14.7) (14.7) Acquisitions — — 3.9 3.2 Other — — 1.8 — Benefit obligation at end of year $ 333.2 $ 335.3 $ 242.3 $ 218.1 |
Schedule of Change in Plan Assets | Change in plan assets: Fair value of plan assets at beginning of year $ 201.6 $ 455.7 $ 185.5 $ 296.8 Actual return on plan assets 10.1 (120.1) 8.8 (72.3) Company contributions / payments 19.1 5.2 8.0 6.0 International plan exchange rate change — — 9.2 (30.3) Benefits paid (31.6) (139.2) (14.7) (14.7) Fair value of plan assets at end of year 199.2 201.6 196.8 185.5 Funded status at end of year $ (134.0) $ (133.7) $ (45.5) $ (32.6) |
Schedule of Amounts Recognized on the Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets: Non-current assets $ — $ — $ — $ 0.3 Current liabilities (4.8) (4.8) (2.4) (1.5) Non-current liabilities (129.2) (128.9) (43.1) (31.4) $ (134.0) $ (133.7) $ (45.5) $ (32.6) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Income) and Changes in Prior Service Cost Recognized in Accumulated Other Comprehensive Loss (Income) | Amounts recognized in accumulated other comprehensive Net prior service cost $ 0.1 $ 0.3 $ 3.6 $ 3.6 Accumulated other comprehensive loss (income) $ 0.1 $ 0.3 $ 3.6 $ 3.6 Changes in prior service cost recognized in accumulated other comprehensive loss (income): Accumulated other comprehensive loss (income) at beginning $ 0.3 $ 1.5 $ 3.6 $ 4.2 Recognized prior service cost (0.2) (1.2) (0.2) (0.1) Foreign currency impact — — 0.2 (0.5) Total recognized in accumulated other comprehensive $ 0.1 $ 0.3 $ 3.6 $ 3.6 |
Schedule of Target Allocation for Pension Plan Assets and Actual Pension Plan Asset Allocations | The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2023 and 2022, was as follows: Current Target Percentage of Pension Plan Asset Category 2023 2022 Equity securities 10% to 16% 13% 18% Fixed income securities 78% to 90% 84% 77% Other investments 2% to 4% 3% 5% Total 100% 100% |
Schedule of Fair Value Hierarchy for Investments of Pension Assets Measured at Fair Value on a Recurring Basis | The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 28.0 $ — $ — $ 28.0 $ 22.9 $ — $ — $ 22.9 Government and agency securities 9.0 — — 9.0 10.7 0.9 — 11.6 Corporate bonds - investment grade — — — — — 31.5 — 31.5 Equity securities - U.S. companies 0.1 — — 0.1 0.1 — — 0.1 Common collective funds - fixed income 31.0 — — 31.0 29.9 — — 29.9 Mutual funds - fixed income 30.5 — — 30.5 31.6 — — 31.6 Mutual funds - international equity — — — — 21.5 — — 21.5 $ 98.6 $ — $ — $ 98.6 $ 116.7 $ 32.4 $ — $ 149.1 Investments measured at net asset value: Equity securities - international companies $ — $ 0.4 Common collective funds - domestic equities — 19.9 Common collective funds - international equities 45.8 17.5 Common collective funds - fixed income 166.1 82.6 Common collective funds - diversified growth — 12.1 Limited partnerships 5.4 6.8 Real estate partnerships 3.5 5.2 Other liability-driven investments 51.6 68.6 Other assets 25.0 24.9 Total Assets $ 396.0 $ 387.1 |
Schedule of Employer Contributions to Defined Benefit Plans | Employer Contributions to Defined Benefit Plans 2022 $ 11.2 2023 27.1 2024 (estimated) 25.0 |
Schedule of Estimated Future Benefit Payments | Estimated future benefit payments, including estimated lump sum distributions, are expected to be as follows: Benefit Payments 2024 $ 49.9 2025 46.2 2026 47.3 2027 43.7 2028 43.1 2029-2033 204.4 |
Other Postretirement Benefit _2
Other Postretirement Benefit Plans (Tables) - Postretirement Plan | 12 Months Ended |
Dec. 31, 2023 | |
Post Retirement Benefit Plans | |
Schedule of Net Periodic Benefit Cost Information and the Related Assumptions Used to Measure the Net Periodic Benefit Cost | The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: 2023 2022 2021 Components of net periodic credit: Service cost $ 0.1 $ 0.2 $ 0.2 Interest cost 1.9 1.4 1.5 Amortization of prior service credit (8.3) (10.1) (10.1) Recognition of net actuarial gains (1.0) (13.1) (4.1) Net periodic credit $ (7.3) $ (21.6) $ (12.5) |
Schedule of Assumptions Used to Measure the Benefit Obligation for Other Postretirement Benefit Pension Plans | Assumptions: 2023 2022 2021 Discount rate 5.75 % 2.99 % 2.62 % The following table summarizes assumptions used to measure the benefit obligation for the other postretirement benefit plans at December 31: Assumptions: 2023 2022 Discount rate 5.55 % 5.75 % |
Schedule of Change in Benefit Obligations | 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 35.5 $ 51.1 Service cost 0.1 0.2 Interest cost 1.9 1.4 Plan amendments — (0.6) Actuarial gains (1.0) (13.1) International plan exchange rate change (0.1) (0.1) Benefits paid (2.7) (3.4) Benefit obligation at end of year $ 33.7 $ 35.5 Funded status at end of year $ (33.7) $ (35.5) |
Schedule of Amounts Recognized on the Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets: Current liabilities $ (3.5) $ (4.1) Non-current liabilities (30.2) (31.4) $ (33.7) $ (35.5) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Income) and Changes in Prior Service Cost Recognized in Accumulated Other Comprehensive Loss (Income) | Amounts recognized in accumulated other comprehensive loss: Net prior service credit $ (63.6) $ (71.9) Accumulated other comprehensive loss $ (63.6) $ (71.9) Changes to prior service credit recognized in accumulated other Accumulated other comprehensive loss at beginning of year $ (71.9) $ (81.4) Prior service credit — (0.6) Recognized prior service credit 8.3 10.1 Total recognized in accumulated other comprehensive loss at December 31 $ (63.6) $ (71.9) |
Schedule of Estimated Future Benefit Payments | Estimated future benefit payments to be funded by the Company are expected to be as follows: Future Benefit Payments 2024 $ 3.6 2025 3.6 2026 3.6 2027 3.5 2028 3.4 2029-2033 13.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive (Loss) Income | The following tables present details about components of accumulated other comprehensive (loss) income for the years ended December 31, 2023 and December 31, 2022: Foreign currency Pension and postretirement Change in fair value of Total Balance at December 31, 2022 $ (235.7) $ 50.8 $ 3.0 $ (181.9) Ownership changes 6.6 — — 6.6 Other comprehensive income (loss) before reclassifications 33.5 (0.2) (2.0) 31.3 Amounts reclassified from accumulated other comprehensive — (7.9) 0.9 (7.0) Income tax benefit — 2.0 0.3 2.3 Net current period other comprehensive income (loss), 40.1 (6.1) (0.8) 33.2 Noncontrolling interest 1.8 — — 1.8 Net current period comprehensive income (loss), net 41.9 (6.1) (0.8) 35.0 Balance at December 31, 2023 $ (193.8) $ 44.7 $ 2.2 $ (146.9) Foreign currency Pension and postretirement Change in fair value of Total Balance at December 31, 2021 $ (80.3) $ 56.6 $ 0.7 $ (23.0) Other comprehensive (loss) income before reclassifications (162.7) 1.1 6.6 (155.0) Amounts reclassified from accumulated other comprehensive — (8.8) (3.7) (12.5) Income tax benefit (expense) — 1.9 (0.6) 1.3 Net current period other comprehensive (loss) income, (162.7) (5.8) 2.3 (166.2) Noncontrolling interest 7.3 — — 7.3 Net current period comprehensive (loss) income, net (155.4) (5.8) 2.3 (158.9) Balance at December 31, 2022 $ (235.7) $ 50.8 $ 3.0 $ (181.9) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Those Assets and Liabilities on the Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 384.4 $ 381.0 $ 3.4 $ — Cash and cash equivalents measured at net asset value 34.5 Restricted cash 0.4 0.4 — — Short-term investments 31.6 — 31.6 — Foreign currency forward contracts 3.3 — 3.3 — Total Assets $ 454.2 $ 381.4 $ 38.3 $ — Liabilities: Foreign currency forward contracts $ 11.4 $ — $ 11.4 $ — Total Liabilities $ 11.4 $ — $ 11.4 $ — December 31, 2022 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 292.1 $ 289.3 $ 2.8 $ — Cash and cash equivalents measured at net asset value 39.5 Restricted cash 9.1 9.1 — — Short-term investments 39.2 — 39.2 — Interest rate swap 3.1 — 3.1 — Foreign currency forward contracts 4.5 — 4.5 — Total Assets $ 387.5 $ 298.4 $ 49.6 $ — Liabilities: Foreign currency forward contracts $ 19.8 $ — $ 19.8 $ — Total Liabilities $ 19.8 $ — $ 19.8 $ — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Not Designated as Hedging Instruments | The following table presents the impact of derivative instruments not designated as hedging instruments for the years ended December 31, 2023, 2022 and 2021, and the related location within the Consolidated Statements of Income. Amount of gain or (loss) Year Ended December 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2023 2022 2021 Foreign currency forward contracts Other income (expense), net $ (15.0) $ (25.2) $ 3.6 |
Research and Development (Table
Research and Development (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development [Abstract] | |
Schedule of Expenditures as a Percentage of Sales | Year Ended December 31, Expenditures as a percentage of sales 2023 2022 2021 Research and Development Expense 0.8 % 0.8 % 0.9 % Engineering Expense 1.9 % 1.5 % 1.4 % Total 2.7 % 2.3 % 2.3 % |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2023 1st 2nd 3rd 4th Total Net sales $ 1,262.8 $ 1,272.3 $ 1,142.7 $ 1,091.2 $ 4,769.0 Cost of products sold 846.0 866.9 787.1 759.9 3,259.9 Selling, general and administrative expenses 186.8 184.9 179.6 189.5 740.8 Amortization of intangible assets 13.5 17.3 17.5 17.4 65.7 Impairment and restructuring charges 28.9 2.5 8.9 5.2 45.5 Operating income 187.6 200.7 149.6 119.2 657.1 Net income (1) 125.7 129.5 90.9 61.9 408.0 Net income attributable to noncontrolling interests 3.4 4.3 3.0 3.2 13.9 Net income attributable to The Timken Company 122.3 125.2 87.9 58.7 394.1 Net income per share - Basic: $ 1.69 $ 1.74 $ 1.24 $ 0.84 $ 5.52 Net income per share - Diluted: $ 1.67 $ 1.73 $ 1.23 $ 0.83 $ 5.47 Dividends per share $ 0.31 $ 0.33 $ 0.33 $ 0.33 $ 1.30 2022 1st 2nd 3rd 4th Total Net sales $ 1,124.6 $ 1,153.7 $ 1,136.4 $ 1,082.0 $ 4,496.7 Cost of products sold 786.3 801.3 802.9 774.2 3,164.7 Selling, general and administrative expenses 154.1 155.9 159.8 167.3 637.1 Amortization of intangible assets 10.9 10.6 10.7 11.7 43.9 Impairment and restructuring charges 1.0 10.0 31.3 1.8 44.1 Operating income 172.3 175.9 131.7 127.0 606.9 Net income (2) 121.9 105.6 90.4 99.1 417.0 Net income attributable to noncontrolling interests 3.7 0.6 3.4 1.9 9.6 Net income attributable to The Timken Company 118.2 105.0 87.0 97.2 407.4 Net income per share - Basic: $ 1.58 $ 1.43 $ 1.19 $ 1.34 $ 5.54 Net income per share - Diluted: $ 1.56 $ 1.42 $ 1.18 $ 1.32 $ 5.48 Dividends per share $ 0.30 $ 0.31 $ 0.31 $ 0.31 $ 1.23 Earnings per share are computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. (1) Net income for the first quarter of 2023 included goodwill impairment charges of $28.3 million. Net income for the fourth quarter of 2023 included net actuarial losses of $22.3 million. (2) Net income for the second quarter of 2022 included net actuarial losses of $11.6 million. Net income for the third quarter of 2022 included impairment charges of $29.3 million. Net income for the fourth quarter of 2022 included net actuarial gains of $12.3 million. |
Significant Accounting Polici_3
Significant Accounting Policies - Revenue (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Change in Accounting Estimate [Line Items] | |
Payment term | 45 days |
Maximum | |
Change in Accounting Estimate [Line Items] | |
Payment term | 75 days |
Transferred at Point in Time | Minimum | |
Change in Accounting Estimate [Line Items] | |
Revenue remaining performance obligation (up to) (as a percent) | 88% |
Transferred at Point in Time | Maximum | |
Change in Accounting Estimate [Line Items] | |
Revenue remaining performance obligation (up to) (as a percent) | 92% |
Transferred over Time | Minimum | |
Change in Accounting Estimate [Line Items] | |
Revenue remaining performance obligation (up to) (as a percent) | 8% |
Transferred over Time | Maximum | |
Change in Accounting Estimate [Line Items] | |
Revenue remaining performance obligation (up to) (as a percent) | 12% |
Contracts Accounted for under Percentage of Completion | |
Change in Accounting Estimate [Line Items] | |
Revenue remaining performance obligation (up to) (as a percent) | 90% |
Significant Accounting Polici_4
Significant Accounting Policies - Restricted Cash (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 0.4 | $ 9.1 |
Significant Accounting Polici_5
Significant Accounting Policies - Inventories (Narrative) (Details) | Dec. 31, 2023 |
Accounting Policies [Abstract] | |
Percentage of inventories valued by FIFO method (as a Percent) | 62% |
Percentage of inventories valued by LIFO method (as a Percent) | 38% |
Significant Accounting Polici_6
Significant Accounting Policies - Investments (Narrative) (Details) - Fair Value, Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Change in Accounting Estimate [Line Items] | ||
Short-term investments | $ 31.6 | $ 39.2 |
Level 2 | ||
Change in Accounting Estimate [Line Items] | ||
Short-term investments | $ 31.6 | $ 39.2 |
Significant Accounting Polici_7
Significant Accounting Policies - Property, Plant and Equipment (Narrative) (Details) | Dec. 31, 2023 |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life for property, plant and equipment (in years) | 10 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life for property, plant and equipment (in years) | 30 years |
Computer Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life for property, plant and equipment (in years) | 3 years |
Computer Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life for property, plant and equipment (in years) | 10 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life for property, plant and equipment (in years) | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life for property, plant and equipment (in years) | 20 years |
Significant Accounting Polici_8
Significant Accounting Policies - Goodwill and Other Intangible Assets (Narrative) (Details) | Dec. 31, 2023 |
Minimum | |
Goodwill [Line Items] | |
Useful life for intangible assets (in years) | 1 year |
Maximum | |
Goodwill [Line Items] | |
Useful life for intangible assets (in years) | 20 years |
Significant Accounting Polici_9
Significant Accounting Policies - Foreign Currency (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Foreign currency transaction gain (loss), before tax | $ (14.8) | $ 15.4 | $ (9.4) |
Significant Accounting Polic_10
Significant Accounting Policies - Derivative Instruments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Derivative Asset, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | Consolidated Balance Sheets |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Narrative) (Details) $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 21, 2023 USD ($) employee | Sep. 01, 2023 USD ($) employee | Apr. 04, 2023 USD ($) employee | Jan. 31, 2023 USD ($) employee | Nov. 04, 2022 USD ($) employee | May 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) acquisition | Dec. 31, 2022 USD ($) acquisition | Dec. 31, 2021 USD ($) | Nov. 01, 2023 employee | Sep. 29, 2023 employee | |
Business Acquisition [Line Items] | ||||||||||||
Number of acquisitions completed | acquisition | 6 | 2 | ||||||||||
Cash paid for acquisitions, net of cash acquired | $ 638.8 | $ 453.7 | $ 7.5 | |||||||||
Cash acquired from acquisition | 30 | 19.4 | ||||||||||
Goodwill | $ 1,369.6 | 1,369.6 | 1,098.3 | $ 1,022.7 | ||||||||
Lagersmit | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 90 | |||||||||||
Des-Case | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 120 | |||||||||||
Nadella | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 450 | |||||||||||
iMECH | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 70 | |||||||||||
Rosa Sistemi S.p.A | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 65 | |||||||||||
ARB | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 190 | |||||||||||
GGB Bearing Technology | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of employees | employee | 900 | |||||||||||
2023 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisitions, net of cash acquired | 638.8 | |||||||||||
Transaction costs | 6.3 | 6.3 | ||||||||||
Goodwill | 285.6 | 285.6 | ||||||||||
Other intangible assets | 306.7 | 306.7 | ||||||||||
Lagersmit | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interests acquired | 100% | |||||||||||
Cash paid for acquisitions, net of cash acquired | $ 128.2 | |||||||||||
Cash acquired from acquisition | $ 6.5 | |||||||||||
Goodwill | 58.5 | 58.5 | ||||||||||
Other intangible assets | 77.5 | 77.5 | ||||||||||
Des-Case | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interests acquired | 100% | |||||||||||
Cash paid for acquisitions, net of cash acquired | $ 123.3 | |||||||||||
Cash acquired from acquisition | $ 1.8 | |||||||||||
Goodwill | 78.9 | 78.9 | ||||||||||
Other intangible assets | 45.1 | 45.1 | ||||||||||
Nadella | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interests acquired | 100% | |||||||||||
Cash paid for acquisitions, net of cash acquired | $ 293.5 | |||||||||||
Cash acquired from acquisition | $ 21 | |||||||||||
Revenue since acquisition | 74.6 | |||||||||||
Goodwill | 128.5 | 128.5 | ||||||||||
Other intangible assets | 158.7 | 158.7 | ||||||||||
Nadella | Customer relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | $ 107.2 | $ 107.2 | ||||||||||
iMECH | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interests acquired | 100% | |||||||||||
Rosa Sistemi S.p.A | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interests acquired | 100% | |||||||||||
ARB | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 96 | |||||||||||
Cash acquired from acquisition | $ 1.3 | |||||||||||
2022 Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisitions, net of cash acquired | 453.7 | |||||||||||
Transaction costs | 4.7 | |||||||||||
Goodwill | 107.9 | |||||||||||
Other intangible assets | 182 | |||||||||||
GGB Bearing Technology | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash acquired from acquisition | $ 18.6 | |||||||||||
Consideration transferred, gross | $ 300.2 | |||||||||||
Goodwill | 64.5 | |||||||||||
Other intangible assets | 151.4 | |||||||||||
Spinea | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 151.3 | |||||||||||
Cash acquired from acquisition | $ 0.2 | |||||||||||
Goodwill | 43.4 | |||||||||||
Other intangible assets | $ 30.6 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Purchase Price Allocations at Fair Value, Net of Cash Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets: | |||
Goodwill | $ 1,369.6 | $ 1,098.3 | $ 1,022.7 |
Liabilities: | |||
Cash paid for acquisitions, net of cash acquired | 638.8 | 453.7 | $ 7.5 |
2023 Acquisitions | |||
Assets: | |||
Accounts receivable | 44.7 | ||
Inventories | 111.8 | ||
Other current assets | 5 | ||
Property, plant and equipment | 47.7 | ||
Operating lease assets | 7.3 | ||
Goodwill | 285.6 | ||
Other intangible assets | 306.7 | ||
Other non-current assets | 6.7 | ||
Total assets acquired | 815.5 | ||
Liabilities: | |||
Accounts payable, trade | 24 | ||
Salaries, wages and benefits | 16.9 | ||
Income taxes payable | 5.5 | ||
Other current liabilities | 10.7 | ||
Short-term debt | 4.7 | ||
Long-term debt | 6 | ||
Accrued pension cost | 3.6 | ||
Long-term operating lease liabilities | 7 | ||
Deferred income taxes | 83.3 | ||
Other non-current liabilities | 7.6 | ||
Total liabilities assumed | 169.3 | ||
Noncontrolling interest acquired | 5.2 | ||
Net assets acquired | 641 | ||
Working capital adjustment related to 2021 acquisition received in 2022 | (2.2) | ||
Cash paid for acquisitions, net of cash acquired | $ 638.8 | ||
2022 Acquisitions | |||
Assets: | |||
Accounts receivable | 30.7 | ||
Inventories | 52.1 | ||
Other current assets | 8 | ||
Property, plant and equipment | 148.7 | ||
Operating lease assets | 4.9 | ||
Goodwill | 107.9 | ||
Other intangible assets | 182 | ||
Other non-current assets | 2.4 | ||
Total assets acquired | 536.7 | ||
Liabilities: | |||
Accounts payable, trade | 16.2 | ||
Salaries, wages and benefits | 12 | ||
Income taxes payable | 3.2 | ||
Other current liabilities | 6 | ||
Short-term debt | 0 | ||
Long-term debt | 0 | ||
Accrued pension cost | 3.5 | ||
Long-term operating lease liabilities | 0.8 | ||
Deferred income taxes | 24 | ||
Other non-current liabilities | 19.5 | ||
Total liabilities assumed | 85.2 | ||
Noncontrolling interest acquired | 0 | ||
Net assets acquired | 451.5 | ||
Working capital adjustment related to 2021 acquisition received in 2022 | 2.2 | ||
Cash paid for acquisitions, net of cash acquired | $ 453.7 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Preliminary Purchase Price Allocation at Fair Value for Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Weighted average useful life (in years) | 15 years 1 month 6 days | |
Total intangible assets | $ 306.7 | |
2023 Acquisitions | ||
Business Acquisition [Line Items] | ||
Total intangible assets | 306.7 | |
2023 Acquisitions | Trade names | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 39 | |
Weighted average useful life (in years) | 19 years | |
2023 Acquisitions | Technology and know-how | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 67.6 | |
Weighted average useful life (in years) | 15 years | |
2023 Acquisitions | Customer relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 199.5 | |
Weighted average useful life (in years) | 15 years | |
2023 Acquisitions | Capitalized Software | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 0.6 | |
Weighted average useful life (in years) | 2 years | |
2022 Acquisitions | ||
Business Acquisition [Line Items] | ||
Total intangible assets | $ 182 | |
2022 Acquisitions | Trade names | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 6.2 | |
Weighted average useful life (in years) | 20 years | |
2022 Acquisitions | Technology and know-how | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 36 | |
Weighted average useful life (in years) | 13 years | |
2022 Acquisitions | Customer relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 107.6 | |
Weighted average useful life (in years) | 15 years | |
2022 Acquisitions | Capitalized Software | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 2.2 | |
Weighted average useful life (in years) | 2 years | |
2022 Acquisitions | Trade names | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 30 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Divestitures (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2023 USD ($) | Nov. 01, 2022 USD ($) | Sep. 01, 2022 USD ($) subsidiary | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds | $ 13.5 | $ 33.9 | $ 0 | ||||
Net of cash divested | 0.7 | 5.3 | |||||
Recognized gain (loss) | 2.9 | (3.5) | 0.9 | ||||
Russia | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of subsidiaries sold | subsidiary | 1 | ||||||
Number of subsidiaries | subsidiary | 2 | ||||||
Held-for-Sale | Jiangsu TWB Bearings Co., Ltd | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | $ 1 | 1 | |||||
Net sales | 22.7 | 39.3 | |||||
Proceeds | 9 | ||||||
Net of cash divested | 0.7 | ||||||
Recognized gain (loss) | $ (0.6) | ||||||
Disposed of by Sale | S.E. Setco Services Company, LLC | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds | $ 5.7 | ||||||
Recognized gain (loss) | $ 4.8 | ||||||
Ownership percentage sold | 50% | ||||||
Disposed of by Sale | ADS | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | 29.3 | ||||||
Net sales | 39.7 | $ 48.8 | |||||
Proceeds | $ 33 | ||||||
Recognized gain (loss) | $ (1.2) | ||||||
Disposed of by Sale | Timken Russia | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net sales | $ 4.8 | ||||||
Proceeds | $ 1 | ||||||
Net of cash divested | 5.3 | ||||||
Recognized gain (loss) | $ (2.7) |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,091.2 | $ 1,142.7 | $ 1,272.3 | $ 1,262.8 | $ 1,082 | $ 1,136.4 | $ 1,153.7 | $ 1,124.6 | $ 4,769 | $ 4,496.7 | $ 4,132.9 |
Revenue Benchmark | Customer Concentration Risk | Original equipment manufacturers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage (as a percent) | 60% | 60% | 60% | ||||||||
Revenue Benchmark | Customer Concentration Risk | Distribution/end users | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Concentration risk percentage (as a percent) | 40% | 40% | 40% | ||||||||
Engineered Bearings | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 3,257.7 | $ 3,092.6 | $ 2,815.1 | ||||||||
Industrial Motion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,511.3 | 1,404.1 | 1,317.8 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,055.9 | 1,992 | 1,733.6 | ||||||||
United States | Engineered Bearings | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,266.1 | 1,198.1 | 1,027.5 | ||||||||
United States | Industrial Motion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 789.8 | 793.9 | 706.1 | ||||||||
Americas excluding United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 481.7 | 476.2 | 395.7 | ||||||||
Americas excluding United States | Engineered Bearings | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 375.6 | 383.2 | 318.3 | ||||||||
Americas excluding United States | Industrial Motion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 106.1 | 93 | 77.4 | ||||||||
Europe / Middle East / Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,178.3 | 995.7 | 1,028.1 | ||||||||
Europe / Middle East / Africa | Engineered Bearings | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 678.6 | 588.9 | 610.7 | ||||||||
Europe / Middle East / Africa | Industrial Motion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 499.7 | 406.8 | 417.4 | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 585.6 | 608.5 | 611.9 | ||||||||
China | Engineered Bearings | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 503.9 | 529.7 | 523.3 | ||||||||
China | Industrial Motion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 81.7 | 78.8 | 88.6 | ||||||||
Asia-Pacific excluding China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 467.5 | 424.3 | 363.6 | ||||||||
Asia-Pacific excluding China | Engineered Bearings | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 433.5 | 392.7 | 335.3 | ||||||||
Asia-Pacific excluding China | Industrial Motion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 34 | $ 31.6 | $ 28.3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Amount of revenue for remaining performance obligations | $ 182,000,000 | ||
Impairment losses | $ 0 | $ 0 | |
Revenue Benchmark | Customer Concentration Risk | U.S. Government | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage (as a percent) | 6% | 7% | 7% |
Revenue Benchmark | Customer Concentration Risk | Service Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage (as a percent) | 4% | 4% | 4% |
Revenue Benchmark | Customer Concentration Risk | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage (as a percent) | 9% | 9% | 9% |
Revenue - Schedule of Rollforwa
Revenue - Schedule of Rollforward of Unbilled Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 103.9 | $ 104.5 |
Additional unbilled revenue recognized | 424.1 | 396.2 |
Less: amounts billed to customers | (383.5) | (370.5) |
Less: unbilled receivables divested | 0 | (26.3) |
Ending balance | $ 144.5 | $ 103.9 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 54.3 | $ 35.8 |
Acquisitions | 1.4 | 0 |
Revenue (cash) received in advance | 165.2 | 54.8 |
Less: revenue recognized | (175.5) | (36.3) |
Ending balance | $ 45.4 | $ 54.3 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Financial Information and a Reconciliation of Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,091.2 | $ 1,142.7 | $ 1,272.3 | $ 1,262.8 | $ 1,082 | $ 1,136.4 | $ 1,153.7 | $ 1,124.6 | $ 4,769 | $ 4,496.7 | $ 4,132.9 |
Total EBITDA, for reportable segments | 923.7 | 838.6 | 746.4 | ||||||||
Unallocated corporate expense | 530.5 | 550.9 | 476.6 | ||||||||
Corporate pension and other postretirement benefit related expense | (26.5) | 0.6 | 6.6 | ||||||||
Acquisition-related gain | 0 | 0 | 0.9 | ||||||||
Depreciation and amortization | (201.3) | (164) | (167.8) | ||||||||
Interest expense | (110.7) | (74.6) | (58.8) | ||||||||
Interest income | 9.3 | 3.8 | 2.3 | ||||||||
Assets employed at year-end: | |||||||||||
Total assets | 6,541.7 | 5,772.4 | 6,541.7 | 5,772.4 | |||||||
Capital expenditures: | |||||||||||
Capital expenditures | 187.8 | 178.4 | 148.3 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 201.3 | 164 | 167.8 | ||||||||
Engineered Bearings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,257.7 | 3,092.6 | 2,815.1 | ||||||||
Total EBITDA, for reportable segments | 661.7 | 615.8 | 513.4 | ||||||||
Depreciation and amortization | (107.2) | (87.6) | (87.2) | ||||||||
Assets employed at year-end: | |||||||||||
Total assets | 3,296.8 | 3,270.3 | 3,296.8 | 3,270.3 | |||||||
Capital expenditures: | |||||||||||
Capital expenditures | 140.7 | 143.8 | 118.6 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 107.2 | 87.6 | 87.2 | ||||||||
Industrial Motion | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,511.3 | 1,404.1 | 1,317.8 | ||||||||
Total EBITDA, for reportable segments | 262 | 222.8 | 233 | ||||||||
Depreciation and amortization | (92.7) | (74.8) | (78.9) | ||||||||
Assets employed at year-end: | |||||||||||
Total assets | 2,744.5 | 2,070.1 | 2,744.5 | 2,070.1 | |||||||
Capital expenditures: | |||||||||||
Capital expenditures | 46.2 | 33.2 | 29.1 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 92.7 | 74.8 | 78.9 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate expense | (69.9) | (50) | (46.1) | ||||||||
Corporate pension and other postretirement benefit related expense | (20.6) | (2.9) | (0.3) | ||||||||
Depreciation and amortization | (1.4) | (1.6) | (1.7) | ||||||||
Assets employed at year-end: | |||||||||||
Total assets | $ 500.4 | $ 432 | 500.4 | 432 | |||||||
Capital expenditures: | |||||||||||
Capital expenditures | 0.9 | 1.4 | 0.6 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | $ 1.4 | $ 1.6 | $ 1.7 |
Segment Information - Schedul_2
Segment Information - Schedule of Geographic Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 1,311.9 | $ 1,207.4 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 446.3 | 418.3 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 278.8 | 272.5 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 146.2 | 130.6 |
Romania | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 100.6 | 101.8 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 340 | $ 284.2 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Before Income Taxes [Abstract] | |||
United States | $ 173.8 | $ 86 | $ 125.8 |
Non-United States | 356.7 | 464.9 | 350.8 |
Income Before Income Taxes | 530.5 | 550.9 | 476.6 |
Current: | |||
Federal | 10.4 | 11.2 | 8.1 |
State and local | 3.8 | 6.7 | 3.9 |
Foreign | 119.9 | 119.6 | 98.2 |
Total current income tax expense (benefit) | 134.1 | 137.5 | 110.2 |
Deferred: | |||
Federal | (12.1) | (7.8) | (5.2) |
State and local | (1.5) | (0.3) | (3.4) |
Foreign | 2 | 4.5 | (6.5) |
Total deferred income tax expense (benefit) | (11.6) | (3.6) | (15.1) |
United States and foreign tax provision on income | $ 122.5 | $ 133.9 | $ 95.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes (Textual) [Abstract] | ||||
Income taxes paid | $ 240.3 | $ 120.6 | $ 100.7 | |
U.S. foreign tax credit | (55.8) | (15.2) | (11.5) | |
Valuation allowance released | 2.1 | 0.9 | 7.8 | |
Tax expense related to undistributed earnings of foreign subsidiaries | 15 | 1 | 0.1 | |
Amounts of undistributed foreign earnings | 1,608.8 | 1,620 | ||
Tax loss and credit carryforwards | 84.9 | 80.7 | ||
Valuation allowances | 39.3 | 31.3 | ||
Total gross unrecognized tax benefits | 34.2 | 26 | 36.1 | $ 45.6 |
Decrease in unrecognized tax benefits | 5 | |||
Penalties and interest accrued | 11.8 | 8.8 | 8.9 | |
Loss Carryforwards | ||||
Income Taxes (Textual) [Abstract] | ||||
Valuation allowances | 37.4 | |||
Other Deferred Tax Assets | ||||
Income Taxes (Textual) [Abstract] | ||||
Valuation allowances | 1.9 | |||
Domestic Country | ||||
Income Taxes (Textual) [Abstract] | ||||
Tax loss and credit carryforwards | 14.3 | |||
Foreign Country | ||||
Income Taxes (Textual) [Abstract] | ||||
Tax loss and credit carryforwards | 69.7 | |||
Favorable Impact Tax Benefits | ||||
Income Taxes (Textual) [Abstract] | ||||
Total gross unrecognized tax benefits | $ 24.2 | $ 23.3 | $ 30.7 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Variation of Effective Income Tax Rate From Continuing Operations Statutory Federal Income Tax Rate [Abstract] | |||
Income tax at the U.S. federal statutory rate | $ 111.4 | $ 115.7 | $ 100.1 |
Adjustments: | |||
State and local income taxes, net of federal tax benefit | 5.3 | 5.3 | 4 |
Tax on foreign remittances and U.S. tax on foreign income | 25.6 | 19 | 15.4 |
Tax expense related to undistributed earnings of foreign subsidiaries | 15 | 1 | 0.1 |
Foreign losses without current tax benefits | 7.7 | 3.1 | 2.6 |
Foreign earnings taxed at different rates including tax holidays | 18.1 | 19.4 | 15.4 |
U.S. foreign tax credit | 55.8 | 15.2 | 11.5 |
Effect of cross-border tax laws | (10.3) | (3.9) | (3.6) |
Accruals and settlements related to tax audits | (3.2) | (9.5) | (7.7) |
Valuation allowance changes | (2.1) | (0.9) | (7.8) |
Stock based compensation | (2.9) | (1.2) | (8.1) |
Other items, net | 13.7 | 1.1 | (3.8) |
United States and foreign tax provision on income | $ 122.5 | $ 133.9 | $ 95.1 |
Effective income tax rate (as a percent) | 23.10% | 24.30% | 20% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effect of Temporary Differences Giving Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued postretirement benefits cost | $ 8 | $ 8.4 |
Accrued pension cost | 44.1 | 46.5 |
Other employee benefit accruals | 14.3 | 16.1 |
Tax loss and credit carryforwards | 84.9 | 80.7 |
Other, net | 58.3 | 61.7 |
Valuation allowances | (39.3) | (31.3) |
Total deferred tax assets | 170.3 | 182.1 |
Deferred tax liabilities - principally depreciation and amortization | (312.5) | (250.9) |
Net deferred tax liabilities | $ (142.2) | $ (68.8) |
Income Taxes - Schedule of Tota
Income Taxes - Schedule of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of unrecognized tax benefits for the years ended | |||
Beginning balance | $ 26 | $ 36.1 | $ 45.6 |
Tax positions related to the current year: | |||
Additions | 7 | 0.6 | 1.6 |
Tax positions related to prior years: | |||
Additions | 9.6 | 4 | 3.7 |
Reductions | (4.7) | (4.7) | (8.1) |
Settlements with tax authorities | (0.4) | (1.9) | (1.7) |
Lapses in statutes of limitation | (3.3) | (8.1) | (5) |
Ending balance | $ 34.2 | $ 26 | $ 36.1 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of the Numerator and the Denominator of Basic Earnings Per Share and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||||||||||
Net income attributable to The Timken Company | $ 58.7 | $ 87.9 | $ 125.2 | $ 122.3 | $ 97.2 | $ 87 | $ 105 | $ 118.2 | $ 394.1 | $ 407.4 | $ 369.1 |
Denominator: | |||||||||||
Weighted average number of shares outstanding - basic (in shares) | 71,377,656 | 73,602,247 | 75,885,316 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and awards - based on the treasury stock method (in shares) | 704,228 | 721,592 | 1,121,273 | ||||||||
Weighted average number of shares outstanding, assuming dilution of stock options and awards (in shares) | 72,081,884 | 74,323,839 | 77,006,589 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.84 | $ 1.24 | $ 1.74 | $ 1.69 | $ 1.34 | $ 1.19 | $ 1.43 | $ 1.58 | $ 5.52 | $ 5.54 | $ 4.86 |
Diluted earnings per share (in dollars per share) | $ 0.83 | $ 1.23 | $ 1.73 | $ 1.67 | $ 1.32 | $ 1.18 | $ 1.42 | $ 1.56 | $ 5.47 | $ 5.48 | $ 4.79 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive stock options outstanding (in shares) | 0 | 0 | 0 |
Inventories - Schedule of Compo
Inventories - Schedule of Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories: | ||
Manufacturing supplies | $ 41.9 | $ 41.7 |
Raw materials | 145.6 | 132 |
Work in process | 496.1 | 491.2 |
Finished products | 619.2 | 584.8 |
Subtotal | 1,302.8 | 1,249.7 |
Allowance for surplus and obsolete inventory | (73.7) | (58.4) |
Total Inventories, net | $ 1,229.1 | $ 1,191.3 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Percentage of inventories valued by FIFO method (as a Percent) | 62% | |
Percentage of inventories valued by LIFO method (as a Percent) | 38% | |
FIFO inventory amount | $ 232.1 | $ 235.4 |
Inventory, LIFO reserve | $ (3.3) | $ 36 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 3,163.3 | $ 2,944.9 |
Less: accumulated depreciation | (1,851.4) | (1,737.5) |
Property, Plant and Equipment, net | 1,311.9 | 1,207.4 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 679.9 | 628.4 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 2,483.4 | $ 2,316.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 129 | $ 113.4 | $ 113.3 |
Capital expenditures incurred but not yet paid | $ 22.9 | $ 18.6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) reporting_unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Goodwill [Line Items] | ||||
Impairment loss | $ 28,300,000 | $ 28,300,000 | $ 0 | $ 0 |
Acquisitions | 285,600,000 | 106,900,000 | ||
Intangible assets acquired | $ 306,700,000 | |||
Weighted average useful life (in years) | 15 years 1 month 6 days | |||
Amortization expense for intangible assets excluding assets acquired | $ 72,300,000 | 50,600,000 | $ 54,500,000 | |
Future amortization expense year 2024 | 77,000,000 | |||
Future amortization expense year 2025 | 72,000,000 | |||
Future amortization expense year 2026 | 70,000,000 | |||
Future amortization expense year 2027 | 68,000,000 | |||
Future amortization expense year 2028 | $ 67,000,000 | |||
Minimum | ||||
Goodwill [Line Items] | ||||
Useful life for intangible assets (in years) | 1 year | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Useful life for intangible assets (in years) | 20 years | |||
Lagersmit | ||||
Goodwill [Line Items] | ||||
Acquisitions | $ 58,500,000 | |||
iMECH | ||||
Goodwill [Line Items] | ||||
Acquisitions | 12,800,000 | |||
Rosa Sistemi S.p.A | ||||
Goodwill [Line Items] | ||||
Acquisitions | 6,500,000 | |||
Des-Case | ||||
Goodwill [Line Items] | ||||
Acquisitions | 78,900,000 | |||
Nadella | ||||
Goodwill [Line Items] | ||||
Acquisitions | 128,500,000 | |||
ARB | ||||
Goodwill [Line Items] | ||||
Acquisitions | 400,000 | |||
GGB Bearing Technology | ||||
Goodwill [Line Items] | ||||
Acquisitions | $ 63,600,000 | |||
Goodwill, purchase accounting adjustments | 900,000 | |||
Goodwill, expected tax deductible percent (as a percent) | 40% | |||
Spinea | ||||
Goodwill [Line Items] | ||||
Acquisitions | $ 43,300,000 | |||
Goodwill, purchase accounting adjustments | $ 100,000 | |||
Engineered Bearings | ||||
Goodwill [Line Items] | ||||
Number of reporting units | reporting_unit | 1 | |||
Impairment loss | $ 0 | |||
Acquisitions | $ 13,200,000 | 63,600,000 | ||
Industrial Motion | ||||
Goodwill [Line Items] | ||||
Number of reporting units | reporting_unit | 6 | |||
Impairment loss | $ 28,300,000 | |||
Acquisitions | $ 272,400,000 | $ 43,300,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in the Carrying Value of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 1,098,300,000 | $ 1,098,300,000 | $ 1,022,700,000 | |
Acquisitions | 285,600,000 | 106,900,000 | ||
Impairment loss | (28,300,000) | (28,300,000) | 0 | $ 0 |
Foreign currency translation adjustments and other changes | 14,000,000 | (31,300,000) | ||
Ending Balance | 1,369,600,000 | 1,098,300,000 | 1,022,700,000 | |
Engineered Bearings | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 679,800,000 | 679,800,000 | 610,800,000 | |
Acquisitions | 13,200,000 | 63,600,000 | ||
Impairment loss | 0 | |||
Foreign currency translation adjustments and other changes | (700,000) | 5,400,000 | ||
Ending Balance | 692,300,000 | 679,800,000 | 610,800,000 | |
Industrial Motion | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 418,500,000 | 418,500,000 | 411,900,000 | |
Acquisitions | 272,400,000 | 43,300,000 | ||
Impairment loss | (28,300,000) | |||
Foreign currency translation adjustments and other changes | 14,700,000 | (36,700,000) | ||
Ending Balance | $ 677,300,000 | $ 418,500,000 | $ 411,900,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets subject to amortization: | ||
Gross Carrying Amount | $ 1,501.4 | $ 1,144.7 |
Accumulated Amortization | (616.4) | (540.9) |
Net Carrying Amount | 885 | 603.8 |
Intangible assets not subject to amortization: | ||
Intangible assets not subject to amortization | 146.4 | 161.5 |
Gross intangible assets (excluding goodwill) | 1,647.8 | 1,306.2 |
Accumulated Amortization | (616.4) | (540.9) |
Total intangible assets, net carrying amount | 1,031.4 | 765.3 |
Trade names | ||
Intangible assets not subject to amortization: | ||
Intangible assets not subject to amortization | 137.7 | 152.8 |
FAA air agency certificates | ||
Intangible assets not subject to amortization: | ||
Intangible assets not subject to amortization | 8.7 | 8.7 |
Customer relationships | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 776.5 | 561.5 |
Accumulated Amortization | (222.8) | (183.2) |
Net Carrying Amount | 553.7 | 378.3 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (222.8) | (183.2) |
Technology and know-how | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 343.3 | 273.1 |
Accumulated Amortization | (100.9) | (80.4) |
Net Carrying Amount | 242.4 | 192.7 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (100.9) | (80.4) |
Trade names | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 71.3 | 18.4 |
Accumulated Amortization | (11.2) | (8.7) |
Net Carrying Amount | 60.1 | 9.7 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (11.2) | (8.7) |
Capitalized Software | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 299.5 | 288.4 |
Accumulated Amortization | (272.8) | (266.3) |
Net Carrying Amount | 26.7 | 22.1 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | (272.8) | (266.3) |
Other | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 10.8 | 3.3 |
Accumulated Amortization | (8.7) | (2.3) |
Net Carrying Amount | 2.1 | 1 |
Intangible assets not subject to amortization: | ||
Accumulated Amortization | $ (8.7) | $ (2.3) |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | |||
Sales rebates | $ 79 | $ 82.9 | |
Deferred revenue | 45.4 | 54.3 | |
Operating lease liabilities | 25.9 | 24.1 | |
Product warranty | 15.2 | 23.5 | |
Freight and duties | 13.4 | 21.7 | |
Current derivative liability | 11.4 | 19.8 | |
Taxes other than income and payroll taxes | 17.8 | 18.7 | |
Professional fees | 12.5 | 17.4 | |
Interest | 16.4 | 15 | |
Restructuring | 5.8 | 3.1 | $ 7 |
Other | 74.3 | 72.4 | |
Total other current liabilities | $ 317.1 | $ 352.9 |
Leasing - Schedule of Lease Exp
Leasing - Schedule of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 33.5 | $ 30.3 | $ 34.1 |
Amortization of right-of-use assets on finance leases | 2.2 | 1.7 | 2.3 |
Total lease expense | $ 35.7 | $ 32 | $ 36.4 |
Leasing - Schedule of Cash Flow
Leasing - Schedule of Cash Flows from Operating and Financing Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 33.6 | $ 30.1 | $ 32.9 |
Financing cash flows from finance leases | $ 2.1 | $ 1.2 | $ 2.2 |
Leasing - Schedule of Impact of
Leasing - Schedule of Impact of Leasing on Consolidated Balance Sheets and Finance Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease assets | $ 119.7 | $ 101.4 |
Short-term operating lease liabilities | 25.9 | 24.1 |
Long-term operating lease liabilities | 78.7 | 65.2 |
Total operating lease liabilities | $ 104.6 | $ 89.3 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Finance Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Property, plant and equipment, net | $ 8.9 | $ 4 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Debt, Current | Debt, Current |
Current portion of long-term debt | $ 2.4 | $ 1.3 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Long-term debt | $ 6.1 | $ 1.9 |
Total finance lease liabilities | $ 8.5 | $ 3.2 |
Leasing - Schedule of Future Mi
Leasing - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 29.8 | |
2025 | 25.5 | |
2026 | 18.1 | |
2027 | 13.9 | |
2028 | 10.9 | |
Thereafter | 18.8 | |
Total future minimum lease payments | 117 | |
Less: imputed interest | (12.4) | |
Total | 104.6 | $ 89.3 |
Finance Leases | ||
2024 | 2.6 | |
2025 | 2.1 | |
2026 | 1.8 | |
2027 | 1 | |
2028 | 0.5 | |
Thereafter | 1.4 | |
Total future minimum lease payments | 9.4 | |
Less: imputed interest | (0.9) | |
Total | $ 8.5 | $ 3.2 |
Leasing - Schedule of Lease Ass
Leasing - Schedule of Lease Assets and Other Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease assets added in the period: | ||
Operating leases | $ 23.3 | $ 22.1 |
Finance leases | $ 7.9 | $ 0.9 |
Weighted-average remaining lease term: | ||
Operating leases (in years) | 5 years 3 months 18 days | 5 years 4 months 24 days |
Finance leases (in years) | 5 years 1 month 6 days | 2 years 9 months 18 days |
Weighted-average discount rate: | ||
Operating leases (as a percent) | 4.20% | 3.55% |
Finance leases (as a percent) | 4.24% | 3.07% |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 246.2 | $ 46.3 |
Term Loan - Variable Rate Maturing 2024 | ||
Short-term Debt [Line Items] | ||
Short-term debt, percentage bearing variable interest, percentage rate (as a percent) | 5.112% | |
Short-term debt | $ 220.8 | 0 |
Foreign Subsidiary | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 25.4 | $ 46.3 |
Line of credit stated variable interest rate low range (as a percent) | 4.35% | 2.38% |
Line of credit stated variable interest rate, high range (as a percent) | 7.33% | 5.50% |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 05, 2022 USD ($) | Mar. 31, 2022 EUR (€) | Dec. 31, 2023 USD ($) covenant | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 06, 2023 USD ($) | Aug. 16, 2023 EUR (€) | Mar. 28, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Short-term debt | $ 246,200,000 | $ 46,300,000 | ||||||
Borrowings guarantees | $ 59,600,000 | |||||||
Weighted average interest rate, at point in time (as a percent) | 4.81% | 2.62% | ||||||
Debt instrument yield rate (as a percent) | 6.40% | 5% | 0.90% | |||||
Proceeds from long-term debt | $ 1,564,900,000 | $ 1,399,500,000 | $ 325,000,000 | |||||
Long-term debt | 2,149,700,000 | 1,916,900,000 | ||||||
Interest paid | 108,800,000 | 72,500,000 | 56,500,000 | |||||
Interest capitalized | 200,000 | 1,000,000 | $ 2,600,000 | |||||
Term Loan - Variable Rate Maturing 2024 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Short-term debt | 220,800,000 | 0 | ||||||
Term Loan - Variable Rate Maturing 2024 | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Principal amount | € | € 200,000,000 | |||||||
Foreign Subsidiary | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Short-term debt | 25,400,000 | $ 46,300,000 | ||||||
Borrowings guarantees | $ 2,100,000 | |||||||
Debt instrument, interest rate during period (as a percent) | 4.24% | 1.40% | 0.80% | |||||
Variable-rate Accounts Receivable Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 79,100,000 | $ 100,000,000 | ||||||
Outstanding borrowings under credit facility | 67,000,000 | |||||||
Remaining borrowing capacity | 12,100,000 | |||||||
Long-term debt | 67,000,000 | $ 85,000,000 | ||||||
Variable-rate Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||
Remaining borrowing capacity | 501,300,000 | |||||||
Long-term debt | $ 247,400,000 | 8,500,000 | ||||||
Number of financial covenant | covenant | 2 | |||||||
Variable-rate Senior Credit Facility | Letter of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings under credit facility | $ 1,300,000 | |||||||
Variable-rate Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from long-term debt | 400,000,000 | |||||||
Extinguishment of debt | $ 350,000,000 | |||||||
Long-term debt | 399,300,000 | 399,100,000 | ||||||
Fixed-rate Senior Unsecured Notes - 4.125% | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Principal amount | $ 350,000,000 | |||||||
Proceeds from long-term debt | € | € 6,500,000 | |||||||
Long-term debt | $ 343,700,000 | $ 342,100,000 | ||||||
Debt instrument, interest rate, stated percentage (as a percent) | 4.125% | 4.125% | 4.125% | |||||
Fixed-rate Senior Unsecured Notes - 3.875% | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Long-term debt | $ 350,000,000 | $ 349,800,000 | ||||||
Debt instrument, interest rate, stated percentage (as a percent) | 3.875% |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 28, 2022 |
Debt Instrument [Line Items] | |||
Total debt | $ 2,149.7 | $ 1,916.9 | |
Less current maturities | 359.4 | 2.7 | |
Long-term debt | $ 1,790.3 | $ 1,914.2 | |
Fixed-rate Senior Unsecured Notes - 3.875% | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 3.875% | 3.875% | |
Fixed-rate Euro Senior Unsecured Notes - 2.02% | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 2.02% | 2.02% | |
Fixed-rate Medium-Term Notes, Series A | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 6.74% | 6.74% | |
Fixed-rate Medium-Term Notes, Series A | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 7.76% | 7.76% | |
Variable-rate Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 6.48% | 5.10% | |
Total debt | $ 247.4 | $ 8.5 | |
Variable-rate Senior Credit Facility | Euro Member Countries, Euro | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 4.85% | 2.21% | |
Variable-rate Accounts Receivable Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, percentage bearing variable interest (as a percent) | 6.42% | 5.01% | |
Total debt | $ 67 | $ 85 | |
Variable-rate Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, percentage bearing variable interest (as a percent) | 6.58% | 5.55% | |
Total debt | $ 399.3 | $ 399.1 | |
Fixed-rate Senior Unsecured Notes - 3.875% | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 3.875% | ||
Total debt | $ 350 | 349.8 | |
Fixed-rate Euro Senior Unsecured Notes - 2.02% | |||
Debt Instrument [Line Items] | |||
Total debt | $ 165.5 | $ 160.4 | |
Fixed-rate Senior Unsecured Notes - 4.50% | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 4.50% | 4.50% | |
Total debt | $ 397.7 | $ 397.2 | |
Fixed-rate Medium-Term Notes, Series A | |||
Debt Instrument [Line Items] | |||
Total debt | $ 154.8 | $ 154.8 | |
Fixed-rate Senior Unsecured Notes - 4.125% | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 4.125% | 4.125% | 4.125% |
Total debt | $ 343.7 | $ 342.1 | |
Fixed-rate Euro Bank Loan - 2.15% | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage (as a percent) | 2.15% | 2.15% | |
Total debt | $ 12.7 | $ 13.6 | |
Other | |||
Debt Instrument [Line Items] | |||
Total debt | $ 11.6 | $ 6.4 |
Financing Arrangements - Sche_3
Financing Arrangements - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Total finance lease liabilities | $ 8.5 | $ 3.2 |
2024 | 359.4 | |
2025 | 29.1 | |
2026 | 53.1 | |
2027 | 837.6 | |
2028 | 521.2 | |
Thereafter | $ 358.8 |
Supply Chain Financing (Details
Supply Chain Financing (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Termination written notice period | 90 days |
Payment term | 90 days |
Purchase Obligation [Roll Forward] | |
Confirmed obligations outstanding, January 1 | $ 14.4 |
Invoices confirmed | 97.1 |
Confirmed invoices paid | (90.2) |
Confirmed obligations outstanding, ending balance | $ 21.3 |
Contingencies - Narratives (Det
Contingencies - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | environmental accruals | environmental accruals | |
Accrual for environmental loss contingencies | $ 4.7 | $ 4.8 | |
Standard product warranty accrual | $ 15.2 | $ 23.5 | $ 11.7 |
Contingencies - Schedule of Rol
Contingencies - Schedule of Rollforward of the Consolidated Product Warranty Accrual (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 23.5 | $ 11.7 |
Expense | 5.9 | 14.7 |
Payments | (14.2) | (2.9) |
Ending balance | $ 15.2 | $ 23.5 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Awards Granted (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred shares (in shares) | 31,900 |
Expected to be Settled in Equity | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred shares (in shares) | 31,900 |
Expected to be Settled in Cash | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred shares (in shares) | 0 |
Performance-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares expected to settle in equity (in shares) | 174,915 |
Shares expected to settle in cash (in shares) | 6,800 |
Total awards granted (in shares) | 181,715 |
Time-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares expected to settle in equity (in shares) | 135,420 |
Shares expected to settle in cash (in shares) | 4,565 |
Total awards granted (in shares) | 139,985 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Amount accrued for shares settling in cash | $ 2 | $ 2.9 | |
Grant date fair value of vested shares | 20.8 | 18.7 | $ 25.5 |
Recognized stock-based compensation expense before tax | $ 0.1 | $ 1.1 | $ 2 |
Stock options granted (in shares) | 0 | 0 | 0 |
Number of stock options outstanding (in shares) | 921,310 | ||
Total intrinsic value of options exercised | $ 22.2 | $ 7.3 | $ 29.4 |
Net cash proceeds from the exercise of stock options | 21.8 | $ 8.5 | $ 26 |
Unrecognized compensation expense related to stock options | $ 37.4 | ||
Unrecognized compensation expense is expected to be recognized over a total weighted average period (in years) | 2 years | ||
Number of shares available for future grants for all plans (in shares) | 3,200,000 | ||
Performance-based restricted stock units | |||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Vesting period (in years) | 3 years | ||
Time-based restricted stock units | |||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Increments for vesting (as a percent) | 25% | ||
Time-based restricted stock units | Minimum | |||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Vesting period (in years) | 2 years | ||
Time-based restricted stock units | Maximum | |||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Vesting period (in years) | 5 years | ||
Restricted Stock | |||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Stock distributed from vesting (in shares) | 376,261 | 386,594 | 577,948 |
Recognized stock-based compensation expense before tax | $ 30.5 | $ 29.3 | $ 18.2 |
Stock Options | |||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||
Vesting period (in years) | 10 years | ||
Increments for vesting (as a percent) | 25% | ||
Number of stock options outstanding (in shares) | 386,617 |
Stock Compensation - Schedule_2
Stock Compensation - Schedule of Stock Award Activity, Including Performance-based Restricted Stock Units, Time-based Restricted Stock Units and Deferred Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Canceled or expired number of shares (in shares) | (475) | ||
Restricted Stock | |||
Number of Shares | |||
Outstanding - beginning of year, number of shares (in shares) | 937,971 | ||
Granted - new awards, number of shares (in shares) | 342,235 | ||
Adjusted for performance results achieved, number of shares (in shares) | (15,175) | ||
Vested, number of shares (in shares) | (376,261) | (386,594) | (577,948) |
Canceled or expired number of shares (in shares) | (19,384) | ||
Outstanding - end of year, number of shares (in shares) | 869,386 | 937,971 | |
Weighted-average Grant Date Fair Value | |||
Outstanding - beginning of year, weighted-average grant date fair value (in dollars per share) | $ 63.31 | ||
Granted - new awards, weighted-average grant date fair value (in dollars per share) | 84.31 | ||
Adjusted for performance results achieved, weighted-average grant date fair value (in dollars per share) | 55.37 | ||
Vested, weighted-average grant date fair value (in dollars per share) | 53.03 | ||
Canceled or expired, weighted-average grant date fair value (in dollars per share) | 72.04 | ||
Outstanding - end of year, weighted-average grant date fair value (in dollars per share) | $ 75 | $ 63.31 |
Stock Compensation - Schedule_3
Stock Compensation - Schedule of Stock Option Award Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding - beginning of year, number of shares (in shares) | shares | 921,310 |
Exercised, number of shares (in shares) | shares | (534,218) |
Canceled or expired number of shares (in shares) | shares | (475) |
Weighted-average Exercise Price | |
Outstanding - beginning of year, weighted-average exercise price (in dollars per share) | $ 41.61 |
Exercised, weighted-average exercise price (in dollars per share) | 40.83 |
Canceled or expired, weighted-average exercise price (in dollars per share) | 42.60 |
Outstanding - end of year, weighted-average exercise price (in dollars per share) | $ 42.69 |
Outstanding - end of year, weighted-average remaining contractual term (in years) | 5 years |
Outstanding - end of year, aggregate intrinsic value | $ | $ 14.5 |
Impairment and Restructuring _3
Impairment and Restructuring Charges - Schedule of Impairment and Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment charges | $ 33.2 | $ 38.3 | $ 4.5 | ||||||||
Severance and related benefit costs | 11.1 | 4.2 | 2.6 | ||||||||
Exit costs | 1.2 | 1.6 | 1.8 | ||||||||
Total | $ 5.2 | $ 8.9 | $ 2.5 | $ 28.9 | $ 1.8 | $ 31.3 | $ 10 | $ 1 | 45.5 | 44.1 | 8.9 |
Engineered Bearings | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment charges | 4.9 | 9 | 4.4 | ||||||||
Severance and related benefit costs | 5.5 | 2.7 | 0.8 | ||||||||
Exit costs | 0.9 | 1.4 | 1.2 | ||||||||
Total | 11.3 | 13.1 | 6.4 | ||||||||
Industrial Motion | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment charges | 28.3 | 29.3 | 0.1 | ||||||||
Severance and related benefit costs | 5.6 | 1.5 | 1.8 | ||||||||
Exit costs | 0.3 | 0.2 | 0.6 | ||||||||
Total | $ 34.2 | $ 31 | $ 2.5 |
Impairment and Restructuring _4
Impairment and Restructuring Charges - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||
Jan. 16, 2023 USD ($) employee | Nov. 01, 2022 USD ($) | Oct. 31, 2022 employee | Feb. 04, 2020 employee | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Severance and related benefit costs | $ 11,100,000 | $ 4,200,000 | $ 2,600,000 | ||||||
Exit costs | 1,200,000 | 1,600,000 | 1,800,000 | ||||||
Impairment charges | 33,200,000 | 38,300,000 | 4,500,000 | ||||||
Pretax gain (loss) | $ 2,900,000 | (3,500,000) | 900,000 | ||||||
Number of reporting segments | segment | 2 | ||||||||
Impairment loss | $ 28,300,000 | $ 28,300,000 | 0 | 0 | |||||
Held-for-Sale | Jiangsu TWB Bearings Co., Ltd | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Pretax gain (loss) | $ (600,000) | ||||||||
Held-for-Sale | ADS | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Impairment charge on reclassified assets | 29,300,000 | ||||||||
Engineered Bearings | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Severance and related benefit costs | 5,500,000 | 2,700,000 | 800,000 | ||||||
Exit costs | 900,000 | 1,400,000 | 1,200,000 | ||||||
Impairment charges | 4,900,000 | 9,000,000 | 4,400,000 | ||||||
Impairment loss | 0 | ||||||||
Engineered Bearings | Held-for-Sale | Jiangsu TWB Bearings Co., Ltd | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Impairment charge on reclassified assets | 1,000,000 | ||||||||
Industrial Motion | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Severance and related benefit costs | 5,600,000 | 1,500,000 | 1,800,000 | ||||||
Exit costs | 300,000 | 200,000 | 600,000 | ||||||
Impairment charges | 28,300,000 | 29,300,000 | 100,000 | ||||||
Impairment loss | 28,300,000 | ||||||||
Industrial Motion | Indianapolis, Indiana | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | 14,500,000 | ||||||||
Industrial Motion | Fulton, Illinois | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees expected to be hired | employee | 130 | ||||||||
Facility Closing | Engineered Bearings | Gaffney, South Carolina | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees expected to be affected | employee | 225 | ||||||||
Severance and related benefit costs | 3,600,000 | 900,000 | |||||||
Exit costs | 600,000 | ||||||||
Restructuring charges | 12,500,000 | ||||||||
Facility Closing | Engineered Bearings | Russia | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Impairment charges | 3,900,000 | 9,000,000 | |||||||
Facility Closing | Engineered Bearings | Villa Carcina, Italy | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees expected to be affected | employee | 110 | ||||||||
Severance and related benefit costs | 1,400,000 | 1,800,000 | |||||||
Exit costs | 1,600,000 | 1,100,000 | |||||||
Restructuring charges | $ 9,900,000 | ||||||||
Impairment charges | 1,000,000 | ||||||||
Pretax gain (loss) | $ 3,600,000 | ||||||||
Facility Closing | Engineered Bearings | Minimum | Gaffney, South Carolina | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Pretax costs | $ 12,000,000 | ||||||||
Facility Closing | Engineered Bearings | Maximum | Gaffney, South Carolina | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Pretax costs | $ 14,000,000 | ||||||||
Facility Closing | Industrial Motion | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Impairment charges | 3,400,000 | ||||||||
Facility Closing | Industrial Motion | Indianapolis, Indiana | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of employees expected to be affected | employee | 240 | ||||||||
Severance and related benefit costs | $ 1,200,000 | ||||||||
Deconsolidation | Engineered Bearings | Russia | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Impairment charges | $ 4,700,000 | ||||||||
Employee Severance, Automatic Lubrication Systems Facilities | Industrial Motion | Europe | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Severance and related benefit costs | 2,200,000 | ||||||||
Employee Severance, Gear Manufacturing Facility | Industrial Motion | Europe | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Severance and related benefit costs | $ 1,500,000 |
Impairment and Restructuring _5
Impairment and Restructuring Charges - Schedule of Rollforward of the Consolidated Restructuring Accrual (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 3.1 | $ 7 |
Expense | 12.3 | 5.8 |
Payments | (9.6) | (9.7) |
Ending balance | $ 5.8 | $ 3.1 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2024 | Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Cash contributions and payments | $ 27.1 | $ 11.2 | $ 20.4 | |||||
Actuarial losses | $ 22.3 | $ (12.3) | $ 11.6 | |||||
Percentage of employees covered by four largest plans | 83% | 84% | 83% | 84% | ||||
Number of plans frozen | plan | 3 | 3 | ||||||
Return on plan assets | $ 35.6 | $ 29.4 | 27.3 | |||||
Pension Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Cash contributions and payments | 27.1 | 11.2 | ||||||
Actuarial losses | 21.6 | $ 16 | 4.4 | |||||
Defined Benefit Plan, Funding Status [Extensible Enumeration] | Defined Benefit Plan, Overfunded Plan [Member] | |||||||
Accumulated benefit obligations | $ 561 | $ 0.3 | 561 | $ 0.3 | ||||
Current liabilities | 7.2 | 6.3 | 7.2 | 6.3 | ||||
Projected benefit obligation | 566.7 | 566.7 | ||||||
Fair value of plan assets | 387.7 | 387.7 | ||||||
Pension accumulated benefit obligation | 567 | 546 | $ 567 | 546 | ||||
Percentage increase in value (as a percent) | 6.30% | |||||||
Defined benefit plan, plan assets, amount | $ 396 | $ 387.1 | $ 396 | 387.1 | ||||
Pension Plan | Discount Rate Increase | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Recognition of net actuarial gains | 17.6 | 243.2 | 45 | |||||
Pension Plan | Experience Losses Impact | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Recognition of net actuarial gains | 10.3 | 33 | 9.3 | |||||
Pension Plan | Changes in Mortality | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Recognition of net actuarial gains | 6 | |||||||
Pension Plan | Other Actuarial Assumptions | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Recognition of net actuarial gains | 0.3 | (0.2) | 3.2 | |||||
Pension Plan | Return on Plan Assets vs. Expectation | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Recognition of net actuarial gains | 220.6 | 28.4 | ||||||
Pension Plan | Inflation Impact | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Recognition of net actuarial gains | 5.4 | 8.5 | ||||||
Pension Plan | U.S. Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Cash contributions and payments | 19.1 | 5.2 | ||||||
Deferred compensation | 10 | |||||||
Actuarial losses | 10.8 | (116.4) | ||||||
Recognition of net actuarial gains | $ (9.2) | $ (22.6) | $ (13.9) | |||||
Benefit obligation, discount rate (as a percent) | 5.40% | 5.64% | 5.40% | 5.64% | 3.07% | 2.84% | ||
Benefit cost, discount rate (as a percent) | 5.64% | |||||||
Expected long-term return on plan assets (as a percent) | 4.47% | |||||||
Current liabilities | $ 4.8 | $ 4.8 | $ 4.8 | $ 4.8 | ||||
Defined benefit plan, plan assets, amount | $ 199.2 | $ 201.6 | $ 199.2 | $ 201.6 | $ 455.7 | |||
Pension Plan | U.S. Plans | Forecast | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Benefit cost, discount rate (as a percent) | 5.40% | |||||||
Expected long-term return on plan assets (as a percent) | 3.94% | |||||||
Pension Plan | U.S. Plans | Discount Rate in Basis Points | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Increase (decrease) to discount rate (basis points) | 0.0024 | 0.0257 | 0.0023 | |||||
Pension Plan | International Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Cash contributions and payments | $ 8 | $ 6 | ||||||
Actuarial losses | 10.8 | (88.2) | ||||||
Recognition of net actuarial gains | $ (12.4) | $ 6.6 | $ 9.5 | |||||
Benefit obligation, discount rate (as a percent) | 4.48% | 4.81% | 4.48% | 4.81% | 1.80% | 1.25% | ||
Current liabilities | $ 2.4 | $ 1.5 | $ 2.4 | $ 1.5 | ||||
Defined benefit plan, plan assets, amount | 196.8 | 185.5 | $ 196.8 | $ 185.5 | $ 296.8 | |||
Pension Plan | International Plans | Discount Rate in Basis Points | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Increase (decrease) to discount rate (basis points) | 0.0033 | 0.0301 | 0.0055 | |||||
Pension Plan | International Plans | Fair Value, Recurring | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, plan assets, amount | $ 164 | $ 155 | $ 164 | $ 155 |
Retirement Benefit Plans - Sche
Retirement Benefit Plans - Schedule of Net Periodic Benefit Cost Information and the Related Assumptions Used to Measure the Net Periodic Benefit Cost (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | |||
Components of net periodic benefit cost: | |||
Service cost | $ 0.8 | $ 6.9 | $ 9.5 |
Interest cost | 17.9 | 17.7 | 17.6 |
Expected return on plan assets | (8.5) | (18.9) | (23.2) |
Amortization of prior service cost | 0.2 | 1.2 | 1.2 |
Recognition of net actuarial losses (gains) | 9.2 | 22.6 | 13.9 |
Net periodic benefit cost (credit) | 19.6 | 29.5 | 19 |
International Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 1.6 | 1.6 | 2 |
Interest cost | 10.4 | 5.7 | 4.4 |
Expected return on plan assets | (10.4) | (9.3) | (10.2) |
Amortization of prior service cost | 0.2 | 0.1 | 0.2 |
Recognition of net actuarial losses (gains) | 12.4 | (6.6) | (9.5) |
Net periodic benefit cost (credit) | $ 14.2 | $ (8.5) | $ (13.1) |
Retirement Benefit Plans - Sc_2
Retirement Benefit Plans - Schedule of Assumptions Used to Measure the Benefit Obligation for the Defined Benefit Pension Plans (Details) - Pension Plan | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit cost, discount rate (as a percent) | 5.64% | |||
Future compensation assumption (as a percent) | 2.50% | |||
Expected long-term return on plan assets (as a percent) | 4.47% | |||
Benefit obligation, discount rate (as a percent) | 5.40% | 5.64% | 3.07% | 2.84% |
Future compensation assumption (as a percent) | 3.25% | 2.50% | ||
U.S. Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit cost, discount rate (as a percent) | 5.62% | 3.03% | 2.71% | |
Future compensation assumption (as a percent) | 2.50% | 2.50% | ||
Expected long-term return on plan assets (as a percent) | 4.31% | 4.35% | 4.15% | |
Benefit obligation, discount rate (as a percent) | 5.37% | 5.62% | ||
U.S. Plans | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit cost, discount rate (as a percent) | 5.74% | 4.95% | 2.91% | |
Future compensation assumption (as a percent) | 3.50% | 3.50% | ||
Expected long-term return on plan assets (as a percent) | 4.91% | 5.65% | 4.90% | |
Benefit obligation, discount rate (as a percent) | 5.53% | 5.74% | ||
International Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, discount rate (as a percent) | 4.48% | 4.81% | 1.80% | 1.25% |
International Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit cost, discount rate (as a percent) | 3.70% | 1% | 0.25% | |
Future compensation assumption (as a percent) | 2.80% | 2.10% | 1.90% | |
Expected long-term return on plan assets (as a percent) | 2.50% | 2% | 2% | |
Benefit obligation, discount rate (as a percent) | 3.15% | 3.70% | ||
Future compensation assumption (as a percent) | 3% | 2.80% | ||
International Plans | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit cost, discount rate (as a percent) | 10.70% | 9.50% | 7.75% | |
Future compensation assumption (as a percent) | 8% | 8% | 8.18% | |
Expected long-term return on plan assets (as a percent) | 8.90% | 8.90% | 9% | |
Benefit obligation, discount rate (as a percent) | 11.70% | 10.70% | ||
Future compensation assumption (as a percent) | 8% | 10% |
Retirement Benefit Plans - Sc_3
Retirement Benefit Plans - Schedule of Change in Benefit Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligation: | ||||||
Actuarial losses (gains) | $ 22.3 | $ (12.3) | $ 11.6 | |||
Pension Plan | ||||||
Change in benefit obligation: | ||||||
Actuarial losses (gains) | $ 21.6 | $ 16 | $ 4.4 | |||
U.S. Plans | Pension Plan | ||||||
Change in benefit obligation: | ||||||
Benefit obligation at beginning of year | 335.3 | 566.3 | ||||
Service cost | 0.8 | 6.9 | 9.5 | |||
Interest cost | 17.9 | 17.7 | 17.6 | |||
Actuarial losses (gains) | 10.8 | (116.4) | ||||
International plan exchange rate change | 0 | 0 | ||||
Benefits paid | (31.6) | (139.2) | ||||
Acquisitions | 0 | 0 | ||||
Other | 0 | 0 | ||||
Benefit obligation at end of year | 333.2 | 335.3 | 333.2 | 335.3 | 566.3 | |
International Plans | Pension Plan | ||||||
Change in benefit obligation: | ||||||
Benefit obligation at beginning of year | 218.1 | 343.1 | ||||
Service cost | 1.6 | 1.6 | 2 | |||
Interest cost | 10.4 | 5.7 | 4.4 | |||
Actuarial losses (gains) | 10.8 | (88.2) | ||||
International plan exchange rate change | 10.4 | (32.6) | ||||
Benefits paid | (14.7) | (14.7) | ||||
Acquisitions | 3.9 | 3.2 | ||||
Other | 1.8 | 0 | ||||
Benefit obligation at end of year | $ 242.3 | $ 218.1 | $ 242.3 | $ 218.1 | $ 343.1 |
Retirement Benefit Plans - Sc_4
Retirement Benefit Plans - Schedule of Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Company contributions / payments | $ 27.1 | $ 11.2 | $ 20.4 |
Pension Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 387.1 | ||
Company contributions / payments | 27.1 | 11.2 | |
Fair value of plan assets at end of year | 396 | 387.1 | |
U.S. Plans | Pension Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 201.6 | 455.7 | |
Actual return on plan assets | 10.1 | (120.1) | |
Company contributions / payments | 19.1 | 5.2 | |
International plan exchange rate change | 0 | 0 | |
Benefits paid | (31.6) | (139.2) | |
Fair value of plan assets at end of year | 199.2 | 201.6 | 455.7 |
Funded status at end of year | (134) | (133.7) | |
International Plans | Pension Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 185.5 | 296.8 | |
Actual return on plan assets | 8.8 | (72.3) | |
Company contributions / payments | 8 | 6 | |
International plan exchange rate change | 9.2 | (30.3) | |
Benefits paid | (14.7) | (14.7) | |
Fair value of plan assets at end of year | 196.8 | 185.5 | $ 296.8 |
Funded status at end of year | $ (45.5) | $ (32.6) |
Retirement Benefit Plans - Sc_5
Retirement Benefit Plans - Schedule of Amounts Recognized on the Consolidated Balance Sheets (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amounts recognized on the Consolidated Balance Sheets: | ||
Current liabilities | $ (7.2) | $ (6.3) |
U.S. Plans | ||
Amounts recognized on the Consolidated Balance Sheets: | ||
Non-current assets | 0 | 0 |
Current liabilities | (4.8) | (4.8) |
Non-current liabilities | (129.2) | (128.9) |
Total | (134) | (133.7) |
International Plans | ||
Amounts recognized on the Consolidated Balance Sheets: | ||
Non-current assets | 0 | 0.3 |
Current liabilities | (2.4) | (1.5) |
Non-current liabilities | (43.1) | (31.4) |
Total | $ (45.5) | $ (32.6) |
Retirement Benefit Plans - Sc_6
Retirement Benefit Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Income) (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net prior service cost | $ 0.1 | $ 0.3 | |
Accumulated other comprehensive loss (income) | 0.1 | 0.3 | $ 1.5 |
International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net prior service cost | 3.6 | 3.6 | |
Accumulated other comprehensive loss (income) | $ 3.6 | $ 3.6 | $ 4.2 |
Retirement Benefit Plans - Sc_7
Retirement Benefit Plans - Schedule Changes in Prior Service Cost Recognized in Accumulated Other Comprehensive Loss (Income) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
U.S. Plans | ||
Changes in prior service cost recognized in accumulated other comprehensive loss (income): | ||
Accumulated other comprehensive loss (income) at beginning of year | $ 0.3 | $ 1.5 |
Recognized prior service cost | (0.2) | (1.2) |
Foreign currency impact | 0 | 0 |
Accumulated other comprehensive loss (income) at end of year | 0.1 | 0.3 |
International Plans | ||
Changes in prior service cost recognized in accumulated other comprehensive loss (income): | ||
Accumulated other comprehensive loss (income) at beginning of year | 3.6 | 4.2 |
Recognized prior service cost | (0.2) | (0.1) |
Foreign currency impact | 0.2 | (0.5) |
Accumulated other comprehensive loss (income) at end of year | $ 3.6 | $ 3.6 |
Retirement Benefit Plans - Sc_8
Retirement Benefit Plans - Schedule of Target Allocation for Pension Plan Assets and Actual Pension Plan Asset Allocations (Details) - Pension Plan | Dec. 31, 2023 | Dec. 31, 2022 |
Target assets allocation and actual asset allocations for US pension plan assets | ||
Percentage of Pension Plan Assets | 100% | 100% |
Equity securities | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Percentage of Pension Plan Assets | 13% | 18% |
Fixed income securities | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Percentage of Pension Plan Assets | 84% | 77% |
Other investments | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Percentage of Pension Plan Assets | 3% | 5% |
Minimum | Equity securities | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 10% | |
Minimum | Fixed income securities | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 78% | |
Minimum | Other investments | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 2% | |
Maximum | Equity securities | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 16% | |
Maximum | Fixed income securities | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 90% | |
Maximum | Other investments | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 4% |
Retirement Benefit Plans - Sc_9
Retirement Benefit Plans - Schedule of Fair Value Hierarchy for Investments of Pension Assets Measured at Fair Value on a Recurring Basis (Details) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | $ 396 | $ 387.1 |
Level 1, 2 and 3 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 98.6 | 149.1 |
Level 1, 2 and 3 | Fair Value, Recurring | Cash and cash equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 28 | 22.9 |
Level 1, 2 and 3 | Fair Value, Recurring | Government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 9 | 11.6 |
Level 1, 2 and 3 | Fair Value, Recurring | Corporate bonds - investment grade | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 31.5 |
Level 1, 2 and 3 | Fair Value, Recurring | Equity securities - U.S. companies | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0.1 | 0.1 |
Level 1, 2 and 3 | Fair Value, Recurring | Common collective funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 31 | 29.9 |
Level 1, 2 and 3 | Fair Value, Recurring | Mutual funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 30.5 | 31.6 |
Level 1, 2 and 3 | Fair Value, Recurring | Mutual funds - international equity | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 21.5 |
Level 1 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 98.6 | 116.7 |
Level 1 | Fair Value, Recurring | Cash and cash equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 28 | 22.9 |
Level 1 | Fair Value, Recurring | Government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 9 | 10.7 |
Level 1 | Fair Value, Recurring | Corporate bonds - investment grade | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 1 | Fair Value, Recurring | Equity securities - U.S. companies | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0.1 | 0.1 |
Level 1 | Fair Value, Recurring | Common collective funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 31 | 29.9 |
Level 1 | Fair Value, Recurring | Mutual funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 30.5 | 31.6 |
Level 1 | Fair Value, Recurring | Mutual funds - international equity | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 21.5 |
Level 2 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 32.4 |
Level 2 | Fair Value, Recurring | Cash and cash equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 2 | Fair Value, Recurring | Government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0.9 |
Level 2 | Fair Value, Recurring | Corporate bonds - investment grade | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 31.5 |
Level 2 | Fair Value, Recurring | Equity securities - U.S. companies | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 2 | Fair Value, Recurring | Common collective funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 2 | Fair Value, Recurring | Mutual funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 2 | Fair Value, Recurring | Mutual funds - international equity | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Cash and cash equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate bonds - investment grade | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Equity securities - U.S. companies | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Common collective funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Mutual funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Level 3 | Fair Value, Recurring | Mutual funds - international equity | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share | Common collective funds - fixed income | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 166.1 | 82.6 |
Fair Value Measured at Net Asset Value Per Share | Equity securities - international companies | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 0.4 |
Fair Value Measured at Net Asset Value Per Share | Common collective funds - domestic equities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 19.9 |
Fair Value Measured at Net Asset Value Per Share | Common collective funds - international equities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 45.8 | 17.5 |
Fair Value Measured at Net Asset Value Per Share | Common collective funds - diversified growth | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 0 | 12.1 |
Fair Value Measured at Net Asset Value Per Share | Limited partnerships | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 5.4 | 6.8 |
Fair Value Measured at Net Asset Value Per Share | Real estate partnerships | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 3.5 | 5.2 |
Fair Value Measured at Net Asset Value Per Share | Other liability-driven investments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | 51.6 | 68.6 |
Fair Value Measured at Net Asset Value Per Share | Other assets | ||
Assets, Fair Value Disclosure [Abstract] | ||
Fair value of plan assets at end of year | $ 25 | $ 24.9 |
Retirement Benefit Plans - S_10
Retirement Benefit Plans - Schedule of Employer Contributions to Defined Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employer Contributions [Abstract] | |||
2022 and 2023 | $ 27.1 | $ 11.2 | $ 20.4 |
Pension Plan | |||
Employer Contributions [Abstract] | |||
2022 and 2023 | 27.1 | $ 11.2 | |
2024 (estimated) | $ 25 |
Retirement Benefit Plans - S_11
Retirement Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) - Pension Plan $ in Millions | Dec. 31, 2023 USD ($) |
Benefit Payments | |
2024 | $ 49.9 |
2025 | 46.2 |
2026 | 47.3 |
2027 | 43.7 |
2028 | 43.1 |
2029-2033 | $ 204.4 |
Other Postretirement Benefit _3
Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Cost Information and the Related Assumptions Used to Measure the Net Periodic Benefit Cost (Details) - Postretirement Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.1 | $ 0.2 | $ 0.2 |
Interest cost | 1.9 | 1.4 | 1.5 |
Amortization of prior service credit | (8.3) | (10.1) | (10.1) |
Recognition of net actuarial gains | (1) | (13.1) | (4.1) |
Net periodic benefit cost (credit) | $ (7.3) | $ (21.6) | $ (12.5) |
Other Postretirement Benefit _4
Other Postretirement Benefit Plans - Schedule of Assumptions Used to Measure the Benefit Obligation for the Defined Benefit Pension Plans (Details) - Other Postretirement Benefits Plan | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assumptions: | ||||
Benefit cost, discount rate (as a percent) | 5.75% | 2.99% | 2.62% | |
Benefit obligation, discount rate (as a percent) | 5.55% | 5.75% | 2.99% | 2.62% |
Other Postretirement Benefit _5
Other Postretirement Benefit Plans - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Actuarial gains | $ (22,300,000) | $ 12,300,000 | $ (11,600,000) | ||||
Postretirement Plan | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Recognition of net actuarial gains | $ 1,000,000 | $ 13,100,000 | $ 4,100,000 | ||||
Benefit obligation, discount rate (as a percent) | 5.55% | 5.75% | 5.55% | 5.75% | 2.99% | 2.62% | |
Actuarial gains | $ 1,000,000 | $ 13,100,000 | |||||
Benefit cost, discount rate (as a percent) | 5.75% | 2.99% | 2.62% | ||||
Current liabilities | $ 3,500,000 | $ 4,100,000 | $ 3,500,000 | $ 4,100,000 | |||
Weighted average annual rate of increase in per capita cost for medical benefits (as a percent) | 6.25% | ||||||
Weighted average annual rate of increase in per capita cost for medical benefits declining gradually (as a percent) | 5% | ||||||
Annual initial increase for prescription drug benefits and HMO benefits per year | $ 5 | ||||||
Weighted average annual rate of secondary increase for prescription drug benefits and HMO benefits (as a percent) | 6% | ||||||
Weighted average annual rate of increase in per capita for prescription drug benefits and HMO benefits declining (as a percent) | 5% | ||||||
Postretirement Plan | Lower Than Expected Benefit Payments | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Recognition of net actuarial gains | $ 1,400,000 | ||||||
Postretirement Plan | Other Valuation Assumptions | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Recognition of net actuarial gains | 100,000 | 200,000 | $ 400,000 | ||||
Postretirement Plan | Discount Rate in Dollars | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Recognition of net actuarial gains | $ 500,000 | $ 8,400,000 | $ 1,600,000 | ||||
Postretirement Plan | Discount Rate in Basis Points | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Increase (decrease) to discount rate (basis points) | 0.0020 | 0.0276 | 0.0037 | ||||
Postretirement Plan | Return on Plan Assets vs. Expectation | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Recognition of net actuarial gains | $ 1,900,000 | $ 1,000,000 | |||||
Actuarial gains | $ 3,000,000 | $ 1,100,000 |
Other Postretirement Benefit _6
Other Postretirement Benefit Plans - Schedule of Change in Benefit Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligation: | ||||||
Actuarial losses (gains) | $ 22.3 | $ (12.3) | $ 11.6 | |||
Postretirement Plan | ||||||
Change in benefit obligation: | ||||||
Benefit obligation at beginning of year | $ 35.5 | $ 51.1 | ||||
Service cost | 0.1 | 0.2 | $ 0.2 | |||
Interest cost | 1.9 | 1.4 | 1.5 | |||
Plan amendments | 0 | (0.6) | ||||
Actuarial losses (gains) | (1) | (13.1) | ||||
International plan exchange rate change | (0.1) | (0.1) | ||||
Benefits paid | (2.7) | (3.4) | ||||
Benefit obligation at end of year | 33.7 | 35.5 | 33.7 | 35.5 | $ 51.1 | |
Funded status at end of year | $ (33.7) | $ (35.5) | $ (33.7) | $ (35.5) |
Other Postretirement Benefit _7
Other Postretirement Benefit Plans - Schedule of Amounts Recognized on the Consolidated Balance Sheets (Details) - Postretirement Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amounts recognized on the Consolidated Balance Sheets: | ||
Current liabilities | $ (3.5) | $ (4.1) |
Non-current liabilities | (30.2) | (31.4) |
Total | $ (33.7) | $ (35.5) |
Other Postretirement Benefit _8
Other Postretirement Benefit Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Income) (Details) - Postretirement Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Amounts recognized in accumulated other comprehensive loss: | |||
Net prior service credit | $ (63.6) | $ (71.9) | |
Accumulated other comprehensive loss | $ (63.6) | $ (71.9) | $ (81.4) |
Other Postretirement Benefit _9
Other Postretirement Benefit Plans - Schedule of Changes in Prior Service Cost Recognized in Accumulated Other Comprehensive Loss (Income) (Details) - Postretirement Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes to prior service credit recognized in accumulated other comprehensive loss: | ||
Accumulated other comprehensive loss (income) at beginning of year | $ (71.9) | $ (81.4) |
Prior service credit | 0 | (0.6) |
Recognized prior service credit | 8.3 | 10.1 |
Accumulated other comprehensive loss (income) at end of year | $ (63.6) | $ (71.9) |
Other Postretirement Benefit_10
Other Postretirement Benefit Plans - Schedule of Estimated Future Benefit Payments (Details) - Postretirement Plan $ in Millions | Dec. 31, 2023 USD ($) |
Benefit Payments | |
2024 | $ 3.6 |
2025 | 3.6 |
2026 | 3.6 |
2027 | 3.5 |
2028 | 3.4 |
2029-2033 | $ 13.8 |
Sale of Shares of Timken Indi_2
Sale of Shares of Timken India Limited (Details) - Timken India Limited - USD ($) shares in Millions, $ in Millions | Jun. 20, 2023 | Jun. 19, 2023 |
Subsidiary or Equity Method Investee [Line Items] | ||
Number of shares sold (in shares) | 7.6 | |
Amount received on transaction | $ 229 | |
Estimated income taxes and transaction costs | $ 55 | |
Ownership percentage | 5,770% | 6,780% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,352.9 | $ 2,377.7 | $ 2,225.2 |
Ownership changes | 6.6 | ||
Other comprehensive income (loss) before reclassifications and income taxes | 31.3 | (155) | |
Amounts reclassified from accumulated other comprehensive (loss) income, before income tax | (7) | (12.5) | |
Income tax benefit | 2.3 | 1.3 | |
Net current period other comprehensive income (loss), net of income taxes and ownership changes | 33.2 | ||
Other comprehensive income (loss), net of tax | 26.6 | (166.2) | (65.7) |
Noncontrolling interest | 1.8 | 7.3 | |
Net current period comprehensive income (loss), net of income taxes, noncontrolling interest and ownership changes | 35 | (158.9) | |
Ending balance | 2,702.4 | 2,352.9 | 2,377.7 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (181.9) | (23) | 41.3 |
Ending balance | (146.9) | (181.9) | (23) |
Foreign currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (235.7) | (80.3) | |
Ownership changes | 6.6 | ||
Other comprehensive income (loss) before reclassifications and income taxes | 33.5 | (162.7) | |
Amounts reclassified from accumulated other comprehensive (loss) income, before income tax | 0 | 0 | |
Income tax benefit | 0 | 0 | |
Net current period other comprehensive income (loss), net of income taxes and ownership changes | 40.1 | ||
Other comprehensive income (loss), net of tax | (162.7) | ||
Noncontrolling interest | 1.8 | 7.3 | |
Net current period comprehensive income (loss), net of income taxes, noncontrolling interest and ownership changes | 41.9 | (155.4) | |
Ending balance | (193.8) | (235.7) | (80.3) |
Pension and postretirement liability adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 50.8 | 56.6 | |
Ownership changes | 0 | ||
Other comprehensive income (loss) before reclassifications and income taxes | (0.2) | 1.1 | |
Amounts reclassified from accumulated other comprehensive (loss) income, before income tax | (7.9) | (8.8) | |
Income tax benefit | 2 | 1.9 | |
Net current period other comprehensive income (loss), net of income taxes and ownership changes | (6.1) | ||
Other comprehensive income (loss), net of tax | (5.8) | ||
Noncontrolling interest | 0 | 0 | |
Net current period comprehensive income (loss), net of income taxes, noncontrolling interest and ownership changes | (6.1) | (5.8) | |
Ending balance | 44.7 | 50.8 | 56.6 |
Change in fair value of derivative financial instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 3 | 0.7 | |
Ownership changes | 0 | ||
Other comprehensive income (loss) before reclassifications and income taxes | (2) | 6.6 | |
Amounts reclassified from accumulated other comprehensive (loss) income, before income tax | 0.9 | (3.7) | |
Income tax benefit | 0.3 | (0.6) | |
Net current period other comprehensive income (loss), net of income taxes and ownership changes | (0.8) | ||
Other comprehensive income (loss), net of tax | 2.3 | ||
Noncontrolling interest | 0 | 0 | |
Net current period comprehensive income (loss), net of income taxes, noncontrolling interest and ownership changes | (0.8) | 2.3 | |
Ending balance | $ 2.2 | $ 3 | $ 0.7 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Hierarchy for Those Assets and Liabilities on the Consolidated Balance Sheets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Restricted cash | $ 0.4 | $ 9.1 |
Fair Value, Recurring | ||
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Restricted cash | 0.4 | 9.1 |
Short-term investments | 31.6 | 39.2 |
Foreign currency forward contracts | 3.3 | 4.5 |
Interest rate swap contract | 3.1 | |
Total Assets | 454.2 | 387.5 |
Foreign currency forward contracts | 11.4 | 19.8 |
Total Liabilities | 11.4 | 19.8 |
Fair Value, Recurring | Level 1, 2 and 3 | ||
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Cash and cash equivalents | 384.4 | 292.1 |
Fair Value, Recurring | Level 1 | ||
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Cash and cash equivalents | 381 | 289.3 |
Restricted cash | 0.4 | 9.1 |
Short-term investments | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Interest rate swap contract | 0 | |
Total Assets | 381.4 | 298.4 |
Foreign currency forward contracts | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Cash and cash equivalents | 3.4 | 2.8 |
Restricted cash | 0 | 0 |
Short-term investments | 31.6 | 39.2 |
Foreign currency forward contracts | 3.3 | 4.5 |
Interest rate swap contract | 3.1 | |
Total Assets | 38.3 | 49.6 |
Foreign currency forward contracts | 11.4 | 19.8 |
Total Liabilities | 11.4 | 19.8 |
Fair Value, Recurring | Level 3 | ||
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Interest rate swap contract | 0 | |
Total Assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets and Liabilities Measured at Fair Value on a recurring basis | ||
Cash and cash equivalents | $ 34.5 | $ 39.5 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment charges | $ 33.2 | $ 38.3 | $ 4.5 | ||
Long-term fixed-rate debt, fair value | 1,387.7 | 1,353.5 | |||
Long-term fixed rate debt, carrying value | $ 1,424.3 | 1,417.9 | |||
Russia | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment charges | $ 3.9 | 9 | |||
Impairment charge on reclassified assets | 3.9 | 16.1 | |||
Property, plant and equipment, carrying value | $ 7.1 | ||||
Held-for-Sale | Jiangsu TWB Bearings Co., Ltd | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Carrying value | 10.3 | ||||
Business fair value | 9.3 | ||||
Impairment charges | $ 1 | ||||
Held-for-Sale | ADS | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Carrying value | $ 62.1 | ||||
Business fair value | 32.8 | ||||
Impairment charges | $ 29.3 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 15, 2020 EUR (€) | Mar. 31, 2022 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | Sep. 08, 2020 USD ($) | |
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | $ 350 | $ 100 | |||||
Proceeds from long-term debt | $ 1,564.9 | $ 1,399.5 | $ 325 | ||||
Amount of loss reclassified to accumulated comprehensive loss (income) | (7) | (12.5) | |||||
Maximum length of time over which the Company hedges (in months) | 10 years | ||||||
Derivative, notional amount | 591.8 | 635.6 | |||||
2027 Notes | |||||||
Derivative [Line Items] | |||||||
Proceeds from long-term debt | € | € 150 | ||||||
Fixed-rate Senior Unsecured Notes - 4.125% | |||||||
Derivative [Line Items] | |||||||
Proceeds from long-term debt | € | € 6.5 | ||||||
Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Derivative, amount of hedged item | € | € 54.5 | ||||||
Amount of loss reclassified to accumulated comprehensive loss (income) | $ 1.8 | ||||||
Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Maximum length of time over which the Company hedges (in months) | 18 months | ||||||
Derivative, notional amount | $ 73.8 | 82.3 | |||||
Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 518 | $ 553.3 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivatives not designated as hedging instruments | $ (15) | $ (25.2) | $ 3.6 |
Research and Development (Detai
Research and Development (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Expenditures as a percentage of sales (as a percent) | 2.70% | 2.30% | 2.30% |
Research and Development Expense | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Expenditures as a percentage of sales (as a percent) | 0.80% | 0.80% | 0.90% |
Engineering Expense | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Expenditures as a percentage of sales (as a percent) | 1.90% | 1.50% | 1.40% |
Government Assistance (Details)
Government Assistance (Details) $ in Millions | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) job | Dec. 31, 2018 USD ($) | |
Government Assistance [Line Items] | |||
Number of additional new jobs | job | 450 | ||
Business Development | Cost of Sales | |||
Government Assistance [Line Items] | |||
Government assistance | $ 7.5 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | ||
Business Development | Selling, General and Administrative Expenses | |||
Government Assistance [Line Items] | |||
Government assistance | $ 0.2 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | ||
Business Development | Interest Expense | |||
Government Assistance [Line Items] | |||
Government assistance | $ 1.6 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | ||
Business Development | Other current liabilities | |||
Government Assistance [Line Items] | |||
Cumulative government assistance | $ 1.6 | ||
Government Assistance, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | ||
Business Development | Other non-current liabilities | |||
Government Assistance [Line Items] | |||
Cumulative government assistance | $ 36 | ||
Government Assistance, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||
New Production Facility Construction | |||
Government Assistance [Line Items] | |||
Expected deficit including interest, amount | $ 16.7 | ||
New Production Facility Construction | Cost of Sales | |||
Government Assistance [Line Items] | |||
Government assistance | $ 2.1 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | ||
New Production Facility Construction | Interest Expense | |||
Government Assistance [Line Items] | |||
Government assistance | $ 0.5 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | ||
New Production Facility Construction | Spinea | |||
Government Assistance [Line Items] | |||
Government assistance | $ 18 | ||
Reimbursement of Capital Investments | |||
Government Assistance [Line Items] | |||
Expected deficit including interest, amount | $ 8.4 | ||
Taxes payable | $ 16.5 | ||
Reimbursement of Capital Investments | Cost of Sales | |||
Government Assistance [Line Items] | |||
Government assistance | $ 1.6 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | ||
Reimbursement of Capital Investments | Interest Expense | |||
Government Assistance [Line Items] | |||
Government assistance | $ 1.1 | ||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | ||
Reimbursement of Capital Investments | Spinea | |||
Government Assistance [Line Items] | |||
Government assistance | $ 16.5 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 1,091.2 | $ 1,142.7 | $ 1,272.3 | $ 1,262.8 | $ 1,082 | $ 1,136.4 | $ 1,153.7 | $ 1,124.6 | $ 4,769 | $ 4,496.7 | $ 4,132.9 |
Cost of products sold | 759.9 | 787.1 | 866.9 | 846 | 774.2 | 802.9 | 801.3 | 786.3 | 3,259.9 | 3,164.7 | 2,983.6 |
Selling, general and administrative expenses | 189.5 | 179.6 | 184.9 | 186.8 | 167.3 | 159.8 | 155.9 | 154.1 | 740.8 | 637.1 | 580.5 |
Amortization of intangible assets | 17.4 | 17.5 | 17.3 | 13.5 | 11.7 | 10.7 | 10.6 | 10.9 | 65.7 | 43.9 | 46.8 |
Impairment and restructuring charges | 5.2 | 8.9 | 2.5 | 28.9 | 1.8 | 31.3 | 10 | 1 | 45.5 | 44.1 | 8.9 |
Operating Income | 119.2 | 149.6 | 200.7 | 187.6 | 127 | 131.7 | 175.9 | 172.3 | 657.1 | 606.9 | 513.1 |
Net income | 61.9 | 90.9 | 129.5 | 125.7 | 99.1 | 90.4 | 105.6 | 121.9 | 408 | 417 | 381.5 |
Net income attributable to noncontrolling interests | 3.2 | 3 | 4.3 | 3.4 | 1.9 | 3.4 | 0.6 | 3.7 | 13.9 | 9.6 | 12.4 |
Net Income Attributable to The Timken Company | $ 58.7 | $ 87.9 | $ 125.2 | $ 122.3 | $ 97.2 | $ 87 | $ 105 | $ 118.2 | $ 394.1 | $ 407.4 | $ 369.1 |
Net income per share - Basic (in dollars per share) | $ 0.84 | $ 1.24 | $ 1.74 | $ 1.69 | $ 1.34 | $ 1.19 | $ 1.43 | $ 1.58 | $ 5.52 | $ 5.54 | $ 4.86 |
Net income per share - Diluted (in dollars per share) | 0.83 | 1.23 | 1.73 | 1.67 | 1.32 | 1.18 | 1.42 | 1.56 | 5.47 | 5.48 | $ 4.79 |
Dividends per share (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.30 | $ 1.30 | $ 1.23 | |
Impairment charges | $ 28.3 | $ 29.3 | |||||||||
Actuarial gain (loss) | $ (22.3) | $ 12.3 | $ (11.6) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Allowance, Notes Receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 17.9 | $ 16.9 | $ 16.5 |
Additions, charged to costs and expenses | (1) | 3.7 | 3.5 |
Deductions, charged to costs and expenses | 0.2 | 0.4 | 2.5 |
Deductions, charged to other accounts | (0.4) | 2.3 | 0.6 |
Balance at end of period | 17.1 | 17.9 | 16.9 |
SEC Schedule, 12-09, Reserve, Inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 58.4 | 63.3 | 54.5 |
Additions, charged to costs and expenses | 25 | 12.9 | 13.4 |
Additions, charged to other accounts | 7.9 | 1.2 | (0.7) |
Deductions | 17.6 | 19 | 3.9 |
Balance at end of period | 73.7 | 58.4 | 63.3 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 31.3 | 31 | 36.7 |
Additions, charged to costs and expenses | 10.6 | 3.1 | 3.1 |
Deductions, charged to costs and expenses | 2.1 | 0.9 | 7.8 |
Deductions, charged to other accounts | 0.5 | 1.9 | 1 |
Balance at end of period | $ 39.3 | $ 31.3 | $ 31 |