☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 34-0577130 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
4500 Mount Pleasant Street NW | |||||||||||
North Canton | Ohio | 44720-5450 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Shares, without par value | TKR | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Class | Outstanding at January 31, 2022 | |||||||
Common Shares, without par value | 74,930,589 shares |
Document | Parts Into Which Incorporated | |||||||
Proxy Statement for the Annual Meeting of Shareholders to be held on or about May 6, 2022 (Proxy Statement) | Part III |
PAGE | |||||||||||
I. | PART I. | ||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 1B. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 4A. | |||||||||||
II. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
Item 7. | |||||||||||
Item 7A. | |||||||||||
Item 8. | |||||||||||
Item 9. | |||||||||||
Item 9A. | |||||||||||
Item 9B. | |||||||||||
Item 9C. | |||||||||||
III. | PART III. | ||||||||||
Item 10. | |||||||||||
Item 11. | |||||||||||
Item 12. | |||||||||||
Item 13. | |||||||||||
Item 14. | |||||||||||
IV. | |||||||||||
Item 15. | |||||||||||
Item 16. |
December 31, | ||||||||
(Dollars in millions) | 2021 | 2020 | ||||||
Segment: | ||||||||
Mobile Industries | $ | 1,354.9 | $ | 1,012.6 | ||||
Process Industries | 1,095.0 | 1,016.2 | ||||||
Total Company | $ | 2,449.9 | $ | 2,028.8 |
Name | Age | Current Position and Previous Positions During Last Five Years | ||||||||||||
Christopher A. Coughlin | 61 | 2014 Executive Vice President, Group President | ||||||||||||
Philip D. Fracassa | 53 | 2014 Executive Vice President and Chief Financial Officer | ||||||||||||
Richard G. Kyle | 56 | 2014 President and Chief Executive Officer | ||||||||||||
Hans Landin | 49 | 2018 Group Vice President | ||||||||||||
2017 Vice President - Mechanical Power Transmission | ||||||||||||||
2014 Vice President - Power Transmission and Engineering Systems | ||||||||||||||
Hansal N. Patel | 41 | 2019 Vice President, General Counsel and Secretary | ||||||||||||
2019 Vice President - Legal and Corporate Secretary | ||||||||||||||
2018 Director - Legal and Corporate Secretary | ||||||||||||||
2016 Managing Attorney - M&A, Securities and Assistant Corporate Secretary | ||||||||||||||
Andreas Roellgen | 54 | 2016 Vice President - Europe, Asia and Africa |
Period | Total number of shares purchased (1) | Average price paid per share (2) | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs (3) | ||||||||||
10/1/2021 - 10/31/2021 | — | $ | — | — | 9,550,000 | |||||||||
11/1/2021 - 11/30/2021 | 402,262 | 73.99 | 400,000 | 9,150,000 | ||||||||||
12/1/2021 - 12/31/2021 | 101,959 | 68.49 | 100,000 | 9,050,000 | ||||||||||
Total | 504,221 | $ | 72.88 | 500,000 | — |
*Total return assumes reinvestment of dividends. Fiscal years ending December 31. |
2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||
Timken | $ | 127 | $ | 99 | $ | 153 | $ | 214 | $ | 195 | |||||||
S&P 500 | 122 | 116 | 153 | 181 | 233 | ||||||||||||
S&P 400 Industrials | 124 | 105 | 140 | 164 | 210 |
(Dollars in millions, except per share, shareholder and per employee data) | 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||
Statements of Income | |||||||||||||||||
Net sales | $ | 4,132.9 | $ | 3,513.2 | $ | 3,789.9 | $ | 3,580.8 | $ | 3,003.8 | |||||||
Gross profit | 1,102.5 | 1,009.9 | 1,141.8 | 1,040.1 | 812.1 | ||||||||||||
Operating income | 513.1 | 454.9 | 516.4 | 454.5 | 299.5 | ||||||||||||
Net income | 381.5 | 292.4 | 374.7 | 305.5 | 202.3 | ||||||||||||
Net income attributable to The Timken Company | $ | 369.1 | $ | 284.5 | $ | 362.1 | $ | 302.8 | $ | 203.4 | |||||||
Basic earnings per share (1) | 4.86 | 3.78 | 4.78 | 3.93 | 2.62 | ||||||||||||
Diluted earnings per share (2) | 4.79 | 3.72 | 4.71 | 3.86 | 2.58 | ||||||||||||
Weighted average number of shares outstanding - basic | 75,885,316 | 75,354,280 | 75,758,123 | 77,119,602 | 77,736,398 | ||||||||||||
Weighted average number of shares outstanding - diluted | 77,006,589 | 76,401,366 | 76,896,565 | 78,337,481 | 78,911,149 | ||||||||||||
Other Comparative Data | |||||||||||||||||
Total assets | $ | 5,170.7 | $ | 5,041.6 | $ | 4,859.9 | $ | 4,445.2 | $ | 3,402.4 | |||||||
Total liabilities | 2,793.0 | 2,816.4 | 2,905.1 | 2,802.5 | 1,927.5 | ||||||||||||
Total equity | 2,377.7 | 2,225.2 | 1,954.8 | 1,642.7 | 1,474.9 | ||||||||||||
Net income attributable to The Timken Company / net sales | 8.9 | % | 8.1 | % | 9.6 | % | 8.5 | % | 6.8 | % | |||||||
Net cash provided from operating activities | 387.3 | 577.6 | 550.1 | 332.5 | 236.8 | ||||||||||||
Capital expenditures | 148.3 | 121.6 | 140.6 | 112.6 | 104.7 | ||||||||||||
Capital expenditures / net sales | 3.6 | % | 3.5 | % | 3.7 | % | 3.1 | % | 3.5 | % | |||||||
Depreciation and amortization | 167.8 | 167.1 | 160.6 | 146.0 | 137.7 | ||||||||||||
Dividends per share | $ | 1.19 | $ | 1.13 | $ | 1.12 | $ | 1.11 | $ | 1.07 | |||||||
Number of employees at year-end | 18,029 | 17,430 | 18,829 | 17,477 | 15,006 | ||||||||||||
Non-GAAP Financial Information (3) | |||||||||||||||||
Adjusted earnings per share | $ | 4.72 | $ | 4.10 | $ | 4.60 | $ | 4.18 | $ | 2.63 | |||||||
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) | $ | 718.0 | $ | 658.9 | $ | 726.3 | $ | 646.5 | $ | 464.8 | |||||||
Adjusted EBITDA Margin (% of net sales) | 17.4 | % | 18.8 | % | 19.2 | % | 18.1 | % | 15.5 | % | |||||||
Free cash flow | 239.0 | 456.0 | 409.5 | 219.9 | 132.1 | ||||||||||||
Adjusted return on invested capital (ROIC) | 11.0 | % | 9.9 | % | 11.9 | % | 12.8 | % | 10.5 | % |
2021 | 2020 | $ Change | % Change | |||||||||||
Net sales | $ | 4,132.9 | $ | 3,513.2 | $ | 619.7 | 17.6 | % | ||||||
Net income | 381.5 | 292.4 | 89.1 | 30.5 | % | |||||||||
Net income attributable to noncontrolling interest | 12.4 | 7.9 | 4.5 | 57.0 | % | |||||||||
Net income attributable to The Timken Company | $ | 369.1 | $ | 284.5 | $ | 84.6 | 29.7 | % | ||||||
Diluted earnings per share | $ | 4.79 | $ | 3.72 | $ | 1.07 | 28.8 | % | ||||||
Average number of diluted shares | 77,006,589 | 76,401,366 | — | 0.8 | % |
2021 | 2020 | $ Change | Change | |||||||||||
Net sales | $ | 4,132.9 | $ | 3,513.2 | $ | 619.7 | 17.6 | % |
2021 | 2020 | $ Change | Change | |||||||||||
Gross profit | $ | 1,102.5 | $ | 1,009.9 | $ | 92.6 | 9.2 | % | ||||||
Gross profit % to net sales | 26.7 | % | 28.7 | % | — | (200) | bps |
2021 | 2020 | $ Change | Change | |||||||||||
Selling, general and administrative expenses | $ | 580.5 | $ | 533.8 | $ | 46.7 | 8.7% | |||||||
Selling, general and administrative expenses % to net sales | 14.0 | % | 15.2 | % | — | (120) bps |
2021 | 2020 | $ Change | |||||||||
Impairment charges | $ | 4.5 | $ | 0.4 | $ | 4.1 | |||||
Severance and related benefit costs | 2.6 | 19.6 | (17.0) | ||||||||
Exit costs | 1.8 | 1.2 | 0.6 | ||||||||
Total | $ | 8.9 | $ | 21.2 | $ | (12.3) |
2021 | 2020 | $ Change | % Change | |||||||||||
Interest expense | $ | (58.8) | $ | (67.6) | $ | 8.8 | (13.0 | %) | ||||||
Interest income | 2.3 | 3.7 | (1.4) | (37.8 | %) |
2021 | 2020 | $ Change | % Change | |||||||||||
Non-service pension and other postretirement income (expense) | $ | 18.3 | $ | (4.7) | $ | 23.0 | (489.4 | %) | ||||||
Other income, net | 0.8 | 10.0 | (9.2) | (92.0 | %) |
2021 | 2020 | $ Change | Change | |||||||||||
Income tax expense | $ | 95.1 | $ | 103.9 | $ | (8.8) | (8.5 | %) | ||||||
Effective tax rate | 20.0 | % | 26.2 | % | — | (620) | bps |
2021 | 2020 | $ Change | Change | |||||||||||
Net sales | $ | 1,965.7 | $ | 1,671.6 | $ | 294.1 | 17.6 | % | ||||||
EBITDA | $ | 240.1 | $ | 232.5 | $ | 7.6 | 3.3 | % | ||||||
EBITDA margin | 12.2 | % | 13.9 | % | — | (170) | bps | |||||||
2021 | 2020 | $ Change | % Change | |||||||||||
Net sales | $ | 1,965.7 | $ | 1,671.6 | $ | 294.1 | 17.6 | % | ||||||
Less: Acquisitions | 15.0 | — | 15.0 | NM | ||||||||||
Currency | 23.3 | — | 23.3 | NM | ||||||||||
Net sales, excluding the impact of acquisitions and currency | $ | 1,927.4 | $ | 1,671.6 | $ | 255.8 | 15.3 | % |
2021 | 2020 | $ Change | Change | |||||||||||
Net sales | $ | 2,167.2 | $ | 1,841.6 | $ | 325.6 | 17.7 | % | ||||||
EBITDA | $ | 506.3 | $ | 442.9 | $ | 63.4 | 14.3 | % | ||||||
EBITDA margin | 23.4 | % | 24.0 | % | — | (60) | bps | |||||||
2021 | 2020 | $ Change | % Change | |||||||||||
Net sales | $ | 2,167.2 | $ | 1,841.6 | $ | 325.6 | 17.7 | % | ||||||
Less: Acquisitions | 13.9 | — | 13.9 | NM | ||||||||||
Currency | 54.1 | — | 54.1 | NM | ||||||||||
Net sales, excluding the impact of acquisitions and currency | $ | 2,099.2 | $ | 1,841.6 | $ | 257.6 | 14.0 | % |
2021 | 2020 | $ Change | Change | |||||||||||
Unallocated corporate expense | $ | (46.1) | $ | (40.7) | $ | (5.4) | 13.3 | % | ||||||
Unallocated corporate expense % to net sales | (1.1 | %) | (1.2 | %) | — | 10 | bps |
2021 | 2020 | $ Change | |||||||||
Net cash provided by operating activities | $ | 387.3 | $ | 577.6 | $ | (190.3) | |||||
Net cash used in investing activities | (173.8) | (153.5) | (20.3) | ||||||||
Net cash used in financing activities | (269.3) | (331.1) | 61.8 | ||||||||
Effect of exchange rate changes on cash | (7.4) | 11.9 | (19.3) | ||||||||
(Decrease) increase in cash and cash equivalents | $ | (63.2) | $ | 104.9 | $ | (168.1) |
2021 | 2020 | $ Change | |||||||||
Cash (used in) provided by: | |||||||||||
Accounts receivable | $ | (55.8) | $ | (20.7) | $ | (35.1) | |||||
Unbilled receivables | 6.2 | 18.5 | (12.3) | ||||||||
Inventories | (215.8) | 27.4 | (243.2) | ||||||||
Trade accounts payable | 76.7 | 22.6 | 54.1 | ||||||||
Other accrued expenses | 55.2 | 55.1 | 0.1 | ||||||||
Cash (used in) provided by working capital items | $ | (133.5) | $ | 102.9 | $ | (236.4) |
2021 | 2020 | $ Change | |||||||||
Accrued income tax expense | $ | 95.1 | $ | 103.9 | $ | (8.8) | |||||
Income tax payments | (100.7) | (119.3) | 18.6 | ||||||||
Other miscellaneous | (1.0) | 0.7 | (1.7) | ||||||||
Change in income taxes | $ | (6.6) | $ | (14.7) | $ | 8.1 |
December 31, | ||||||||
2021 | 2020 | |||||||
Short-term debt, including current portion of long-term debt | $ | 53.8 | $ | 130.7 | ||||
Long-term debt | 1,411.1 | 1,433.9 | ||||||
Total debt | $ | 1,464.9 | $ | 1,564.6 | ||||
Less: Cash and cash equivalents | 257.1 | 320.3 | ||||||
Net debt | $ | 1,207.8 | $ | 1,244.3 |
December 31, | ||||||||
2021 | 2020 | |||||||
Net debt | $ | 1,207.8 | $ | 1,244.3 | ||||
Total equity | 2,377.7 | 2,225.2 | ||||||
Capital (net debt + total equity) | $ | 3,585.5 | $ | 3,469.5 | ||||
Ratio of net debt to capital | 33.7 | % | 35.9 | % |
Future Contractual Payments | Total | Less than 1 Year | 1-5 Years | More than 5 Years | ||||||||||
Interest payments | $ | 294.9 | $ | 50.2 | $ | 169.8 | $ | 74.9 | ||||||
Long-term debt | 1,411.1 | — | 675.4 | 735.7 | ||||||||||
Short-term debt, including current portion of long-term debt | 53.8 | 53.8 | — | — | ||||||||||
Purchase commitments | 79.3 | 65.0 | 14.3 | — | ||||||||||
Operating leases | 116.6 | 29.2 | 61.9 | 25.5 | ||||||||||
Retirement benefit plans | 134.7 | 14.8 | 57.2 | 62.7 | ||||||||||
Total | $ | 2,090.4 | $ | 213.0 | $ | 978.6 | $ | 898.8 |
+ / - Change at December 31, 2021 | ||||||||||||||
Change | PBO | |||||||||||||
Assumption: | ||||||||||||||
Discount rate | .25% | $ | 17.6 | |||||||||||
+ / - Change at December 31, 2021 | ||||||||||||||
Change | APBO | |||||||||||||
Assumption: | ||||||||||||||
Discount rate | .25% | $ | 1.1 | |||||||||||
Twelve Months Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||
Diluted earnings per share (EPS) | $ | 4.79 | $ | 3.72 | $ | 4.71 | $ | 3.86 | $ | 2.58 | |||||||
Adjusted EPS | $ | 4.72 | $ | 4.10 | $ | 4.60 | $ | 4.18 | $ | 2.63 | |||||||
Diluted Shares | 77,006,589 | 76,401,366 | 76,896,565 | 78,337,481 | 78,911,149 |
Twelve Months Ended December 31, 2021 | ||||||||||||||
Mobile | Process | Unallocated Corporate | Total | |||||||||||
Net Sales | $ | 1,965.7 | $ | 2,167.2 | $ | — | $ | 4,132.9 | ||||||
EBITDA | 240.1 | 506.3 | (45.5) | 700.9 | ||||||||||
Impairment, restructuring and reorganization charges (1) | 7.3 | 7.0 | — | 14.3 | ||||||||||
Corporate pension and other postretirement benefit related expense (2) | — | — | 0.3 | 0.3 | ||||||||||
Acquisition-related charges (3) | 0.7 | 0.6 | 1.9 | 3.2 | ||||||||||
Acquisition-related gain (4) | — | — | (0.9) | (0.9) | ||||||||||
Tax indemnification and related items | 0.2 | — | — | 0.2 | ||||||||||
Adjusted EBITDA | $ | 248.3 | $ | 513.9 | $ | (44.2) | $ | 718.0 | ||||||
Adjusted EBITDA Margin (% of net sales) | 12.6 | % | 23.7 | % | NM | 17.4 | % |
Twelve Months Ended December 31, 2020 | ||||||||||||||
Mobile | Process | Unallocated Corporate | Total | |||||||||||
Net Sales | $ | 1,671.6 | $ | 1,841.6 | $ | — | $ | 3,513.2 | ||||||
EBITDA | 232.5 | 442.9 | (48.1) | 627.3 | ||||||||||
Impairment, restructuring and reorganization charges (1) | 11.3 | 14.0 | 0.6 | 25.9 | ||||||||||
Corporate pension and other postretirement benefit related expense (2) | — | — | 18.5 | 18.5 | ||||||||||
Acquisition-related charges (3) | 2.1 | 1.0 | 0.6 | 3.7 | ||||||||||
Acquisition-related gain (4) | — | — | (11.1) | (11.1) | ||||||||||
Property losses (recoveries) and related expenses (5) | (5.5) | — | — | (5.5) | ||||||||||
Gain on sale of real estate | (0.4) | — | — | (0.4) | ||||||||||
Tax indemnification and related items | 0.3 | — | 0.2 | 0.5 | ||||||||||
Adjusted EBITDA | $ | 240.3 | $ | 457.9 | $ | (39.3) | $ | 658.9 | ||||||
Adjusted EBITDA Margin (% of net sales) | 14.4 | % | 24.9 | % | NM | 18.8 | % |
Twelve Months Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||
Net cash provided by operating activities | $ | 387.3 | $ | 577.6 | $ | 550.1 | $ | 332.5 | $ | 236.8 | |||||||
Capital expenditures | (148.3) | (121.6) | (140.6) | (112.6) | (104.7) | ||||||||||||
Free cash flow | $ | 239.0 | $ | 456.0 | $ | 409.5 | $ | 219.9 | $ | 132.1 |
Twelve Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Net income | $ | 381.5 | $ | 292.4 | ||||
Provision for income taxes | 95.1 | 103.9 | ||||||
Interest expense | 58.8 | 67.6 | ||||||
Interest income | (2.3) | (3.7) | ||||||
Depreciation and amortization | 167.8 | 167.1 | ||||||
Consolidated EBITDA | 700.9 | 627.3 | ||||||
Adjustments: | ||||||||
Impairment, restructuring and reorganization charges (1) | $ | 14.3 | $ | 25.9 | ||||
Corporate pension and other postretirement benefit related (expense) income (2) | 0.3 | 18.5 | ||||||
Acquisition-related charges (3) | 3.2 | 3.7 | ||||||
Acquisition-related gain (4) | (0.9) | (11.1) | ||||||
Property recoveries and related expenses (5) | — | (5.5) | ||||||
Gain (loss) on sale of real estate | — | (0.4) | ||||||
Tax indemnification and related items | 0.2 | 0.5 | ||||||
Total Adjustments | 17.1 | 31.6 | ||||||
Adjusted EBITDA | $ | 718.0 | $ | 658.9 | ||||
Net Debt | $ | 1,207.8 | $ | 1,244.3 | ||||
Ratio of Net Debt to Adjusted EBITDA | 1.7 | 1.9 |
Adjusted Invested Capital: | ||||||||||||||||||||
Twelve Months Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Total debt | $ | 1,464.9 | $ | 1,564.6 | $ | 1,730.1 | $ | 1,681.6 | $ | 962.3 | $ | 659.2 | ||||||||
Total equity | 2,377.7 | 2,225.2 | 1,954.8 | 1,642.7 | 1,474.9 | 1,310.9 | ||||||||||||||
Invested capital (total debt + total equity) | 3,842.6 | 3,789.8 | 3,684.9 | 3,324.3 | 2,437.2 | 1,970.1 | ||||||||||||||
Invested capital (two-point average) | $ | 3,816.2 | $ | 3,737.4 | $ | 3,504.6 | $ | 2,880.8 | $ | 2,203.7 |
Return on Invested Capital: | |||||||||||||||||
Twelve Months Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||
ANOPAT | $ | 418.8 | $ | 368.7 | $ | 416.3 | $ | 367.9 | $ | 230.3 | |||||||
Invested capital (two-point average) | 3,816.2 | 3,737.4 | 3,504.6 | 2,880.8 | 2,203.7 | ||||||||||||
Return on invested capital | 11.0 | % | 9.9 | % | 11.9 | % | 12.8 | % | 10.5 | % |
Financial Statements | Page | ||||
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
(Dollars in millions, except per share data) | |||||||||||
Net sales | $ | 4,132.9 | $ | 3,513.2 | $ | 3,789.9 | |||||
Cost of products sold | 3,030.4 | 2,503.3 | 2,648.1 | ||||||||
Gross Profit | 1,102.5 | 1,009.9 | 1,141.8 | ||||||||
Selling, general and administrative expenses | 580.5 | 533.8 | 618.6 | ||||||||
Impairment and restructuring charges | 8.9 | 21.2 | 6.8 | ||||||||
Operating Income | 513.1 | 454.9 | 516.4 | ||||||||
Interest expense | (58.8) | (67.6) | (72.1) | ||||||||
Interest income | 2.3 | 3.7 | 4.9 | ||||||||
Non-service pension and other postretirement income (expense) | 18.3 | (4.7) | 10.2 | ||||||||
Other income (expense), net | 0.8 | (1.1) | 13.0 | ||||||||
Acquisition-related gain | 0.9 | 11.1 | — | ||||||||
Income Before Income Taxes | 476.6 | 396.3 | 472.4 | ||||||||
Provision for income taxes | 95.1 | 103.9 | 97.7 | ||||||||
Net Income | 381.5 | 292.4 | 374.7 | ||||||||
Less: Net income attributable to noncontrolling interest | 12.4 | 7.9 | 12.6 | ||||||||
Net Income Attributable to The Timken Company | $ | 369.1 | $ | 284.5 | $ | 362.1 | |||||
Net Income per Common Share Attributable to The Timken Company Common Shareholders | |||||||||||
Basic earnings per share | $ | 4.86 | $ | 3.78 | $ | 4.78 | |||||
Diluted earnings per share | $ | 4.79 | $ | 3.72 | $ | 4.71 |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
(Dollars in millions) | |||||||||||
Net Income | $ | 381.5 | $ | 292.4 | $ | 374.7 | |||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments | (63.7) | 92.7 | (19.9) | ||||||||
Pension and postretirement liability adjustments | (6.8) | (3.5) | 66.9 | ||||||||
Change in fair value of derivative financial instruments | 4.8 | (2.4) | (2.0) | ||||||||
Other comprehensive (loss) income, net of tax | (65.7) | 86.8 | 45.0 | ||||||||
Comprehensive Income, net of tax | 315.8 | 379.2 | 419.7 | ||||||||
Less: comprehensive income attributable to noncontrolling interest | 11.0 | 3.3 | 12.4 | ||||||||
Comprehensive Income Attributable to The Timken Company | $ | 304.8 | $ | 375.9 | $ | 407.3 |
December 31, | ||||||||
2021 | 2020 | |||||||
(Dollars in millions) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 257.1 | $ | 320.3 | ||||
Restricted cash | 0.8 | 0.8 | ||||||
Accounts receivable, less allowances: (2021 - $16.9 million; 2020 - $16.5 million) | 626.4 | 581.1 | ||||||
Unbilled receivables | 104.5 | 110.9 | ||||||
Inventories, net | 1,042.7 | 841.3 | ||||||
Deferred charges and prepaid expenses | 32.2 | 39.9 | ||||||
Other current assets | 149.8 | 106.0 | ||||||
Total Current Assets | 2,213.5 | 2,000.3 | ||||||
Property, Plant and Equipment, Net | 1,055.3 | 1,035.6 | ||||||
Other Assets | ||||||||
Goodwill | 1,022.7 | 1,047.6 | ||||||
Other intangible assets, net | 668.8 | 741.4 | ||||||
Operating lease assets | 118.9 | 118.2 | ||||||
Deferred income taxes | 67.6 | 77.0 | ||||||
Other non-current assets | 23.9 | 21.5 | ||||||
Total Other Assets | 1,901.9 | 2,005.7 | ||||||
Total Assets | $ | 5,170.7 | $ | 5,041.6 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable, trade | $ | 430.0 | $ | 351.4 | ||||
Short-term debt, including current portion of long-term debt | 53.8 | 130.7 | ||||||
Salaries, wages and benefits | 136.0 | 135.7 | ||||||
Income taxes payable | 26.2 | 16.1 | ||||||
Other current liabilities | 250.6 | 214.1 | ||||||
Total Current Liabilities | 896.6 | 848.0 | ||||||
Non-Current Liabilities | ||||||||
Long-term debt | 1,411.1 | 1,433.9 | ||||||
Accrued pension benefits | 155.6 | 163.0 | ||||||
Accrued postretirement benefits | 45.8 | 41.3 | ||||||
Long-term operating lease liabilities | 77.6 | 75.5 | ||||||
Deferred income taxes | 121.4 | 148.7 | ||||||
Other non-current liabilities | 84.9 | 106.0 | ||||||
Total Non-Current Liabilities | 1,896.4 | 1,968.4 | ||||||
Shareholders’ Equity | ||||||||
Class I and II Serial Preferred Stock without par value: | ||||||||
Authorized - 10,000,000 shares each class, none issued | — | — | ||||||
Common stock without par value: | ||||||||
Authorized - 200,000,000 shares | ||||||||
Issued (including shares in treasury) (2021 – 77,090,104 shares; 2020 – 75,834,668 shares) | ||||||||
Stated capital | 40.7 | 40.7 | ||||||
Other paid-in capital | 786.9 | 740.7 | ||||||
Retained earnings | 1,616.4 | 1,339.5 | ||||||
Accumulated other comprehensive (loss) income | (23.0) | 41.3 | ||||||
Treasury shares at cost (2021 – 1,715,282 shares; 2020 – 158,836 shares) | (126.1) | (9.3) | ||||||
Total Shareholders’ Equity | 2,294.9 | 2,152.9 | ||||||
Noncontrolling interest | 82.8 | 72.3 | ||||||
Total Equity | 2,377.7 | 2,225.2 | ||||||
Total Liabilities and Equity | $ | 5,170.7 | $ | 5,041.6 |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
(Dollars in millions) | |||||||||||
CASH PROVIDED (USED) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 381.5 | $ | 292.4 | $ | 374.7 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 167.8 | 167.1 | 160.6 | ||||||||
Impairment charges | 4.5 | 0.4 | 2.6 | ||||||||
Loss (gain) on sale of assets | 1.3 | 0.9 | (4.0) | ||||||||
Acquisition-related gain | (0.9) | (11.1) | — | ||||||||
Deferred income tax benefit | (15.1) | (23.2) | (8.9) | ||||||||
Stock-based compensation expense | 20.2 | 23.2 | 27.1 | ||||||||
Pension and other postretirement (income) expense | (6.6) | 17.4 | 2.2 | ||||||||
Pension and other postretirement benefit contributions and payments | (24.5) | (20.6) | (43.4) | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (55.8) | (20.7) | 24.1 | ||||||||
Unbilled receivables | 6.2 | 18.5 | (12.6) | ||||||||
Inventories | (215.8) | 27.4 | 50.7 | ||||||||
Accounts payable, trade | 76.7 | 22.6 | 19.9 | ||||||||
Other accrued expenses | 55.2 | 55.1 | (26.8) | ||||||||
Income taxes | 8.5 | 8.5 | (14.2) | ||||||||
Other, net | (15.9) | 19.7 | (1.9) | ||||||||
Net Cash Provided by Operating Activities | 387.3 | 577.6 | 550.1 | ||||||||
Investing Activities | |||||||||||
Capital expenditures | (148.3) | (121.6) | (140.6) | ||||||||
Acquisitions, net of cash acquired of $5.9 million in 2019 | (7.5) | (24.0) | (226.5) | ||||||||
Proceeds from disposals of property, plant and equipment | 0.6 | 1.5 | 6.3 | ||||||||
Investments in short-term marketable securities, net | (18.0) | (9.4) | (4.1) | ||||||||
Other | (0.6) | — | — | ||||||||
Net Cash Used in Investing Activities | (173.8) | (153.5) | (364.9) | ||||||||
Financing Activities | |||||||||||
Cash dividends paid to shareholders | (92.2) | (87.0) | (84.9) | ||||||||
Purchase of treasury shares | (93.0) | (49.3) | (62.7) | ||||||||
Proceeds from exercise of stock options | 26.0 | 37.4 | 27.5 | ||||||||
Payments related to tax withholding for stock-based compensation | (23.8) | (16.0) | (15.4) | ||||||||
Proceeds from long-term debt | 325.0 | 562.0 | 662.8 | ||||||||
Payments on long-term debt | (338.3) | (757.7) | (633.8) | ||||||||
Deferred financing costs | — | (1.7) | (1.9) | ||||||||
Accounts receivable facility financing borrowings | 310.9 | 144.0 | 25.0 | ||||||||
Accounts receivable facility financing payments | (368.9) | (186.0) | — | ||||||||
Short-term debt activity, net | (14.5) | 40.1 | (17.0) | ||||||||
Noncontrolling interest dividends paid | (0.5) | (16.9) | (0.3) | ||||||||
Net Cash Used in Financing Activities | (269.3) | (331.1) | (100.7) | ||||||||
Effect of exchange rate changes on cash | (7.4) | 11.9 | (1.4) | ||||||||
(Decrease) Increase In Cash, Cash Equivalents and Restricted Cash | (63.2) | 104.9 | 83.1 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 321.1 | 216.2 | 133.1 | ||||||||
Cash, Cash Equivalents and Restricted Cash at End of Year | $ | 257.9 | $ | 321.1 | $ | 216.2 |
The Timken Company Shareholders | |||||||||||||||||||||||
(Dollars in millions, except per share data) | Total | Stated Capital | Other Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Shares | Non- controlling Interest | ||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Balance at January 1, 2019 | $ | 1,642.7 | $ | 53.1 | $ | 951.9 | $ | 1,630.2 | $ | (95.3) | $ | (960.3) | $ | 63.1 | |||||||||
Net income | 374.7 | 362.1 | 12.6 | ||||||||||||||||||||
Foreign currency translation adjustments | (19.9) | (19.7) | (0.2) | ||||||||||||||||||||
Pension and other postretirement liability adjustments (net of $22.2 million income tax expense) | 66.9 | 66.9 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of reclassifications | (2.0) | (2.0) | |||||||||||||||||||||
Change in ownership of noncontrolling interest | (0.5) | (10.3) | 9.8 | ||||||||||||||||||||
Noncontrolling interest acquired | 1.8 | 1.8 | |||||||||||||||||||||
Dividends declared to noncontrolling interest | (0.5) | (0.5) | |||||||||||||||||||||
Dividends – $1.12 per share | (84.9) | (84.9) | |||||||||||||||||||||
Stock-based compensation expense | 27.1 | 27.1 | |||||||||||||||||||||
Purchase of treasury shares | (62.7) | (62.7) | |||||||||||||||||||||
Stock option exercise activity | 27.5 | (7.8) | 35.3 | ||||||||||||||||||||
Restricted share activity | — | (23.3) | 23.3 | ||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | (15.4) | (15.4) | |||||||||||||||||||||
Balance at December 31, 2019 | $ | 1,954.8 | $ | 53.1 | $ | 937.6 | $ | 1,907.4 | $ | (50.1) | $ | (979.8) | $ | 86.6 | |||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Cumulative effect of (net of $0.2 million income tax benefit) | (0.5) | (0.5) | |||||||||||||||||||||
Net income | 292.4 | 284.5 | 7.9 | ||||||||||||||||||||
Foreign currency translation adjustments | 92.7 | 97.3 | (4.6) | ||||||||||||||||||||
Pension and other postretirement liability adjustments (net of $1.1 million income tax benefit) | (3.5) | (3.5) | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of reclassifications | (2.4) | (2.4) | |||||||||||||||||||||
Change in ownership of noncontrolling interest | 0.5 | 0.5 | |||||||||||||||||||||
Noncontrolling interest acquired | (1.0) | 1.0 | (2.0) | ||||||||||||||||||||
Dividends declared to noncontrolling interest | (16.1) | (16.1) | |||||||||||||||||||||
Treasury stock retirement | — | (12.4) | (213.3) | (764.9) | 990.6 | ||||||||||||||||||
Dividends – $1.13 per share | (87.0) | (87.0) | |||||||||||||||||||||
Stock-based compensation expense | 23.2 | 23.2 | |||||||||||||||||||||
Purchase of treasury shares | (49.3) | (49.3) | |||||||||||||||||||||
Stock option exercise activity | 37.4 | 16.1 | 21.3 | ||||||||||||||||||||
Restricted share activity | — | (23.9) | 23.9 | ||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | (16.0) | (16.0) | |||||||||||||||||||||
Balance at December 31, 2020 | $ | 2,225.2 | $ | 40.7 | $ | 740.7 | $ | 1,339.5 | $ | 41.3 | $ | (9.3) | $ | 72.3 | |||||||||
Year Ended December 31, 2021 | |||||||||||||||||||||||
Net income | 381.5 | 369.1 | 12.4 | ||||||||||||||||||||
Foreign currency translation adjustments | (63.7) | (62.3) | (1.4) | ||||||||||||||||||||
Pension and other postretirement liability adjustments (net of $2.3 million income tax benefit) | (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 – $1.19 per share | (92.2) | (92.2) | |||||||||||||||||||||
Stock-based compensation expense | 20.2 | 20.2 | |||||||||||||||||||||
Purchase of treasury shares | (93.0) | (93.0) | |||||||||||||||||||||
Stock option exercise activity | 26.0 | 26.0 | |||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | (23.8) | (23.8) | |||||||||||||||||||||
Balance at December 31, 2021 | $ | 2,377.7 | $ | 40.7 | $ | 786.9 | $ | 1,616.4 | $ | (23.0) | $ | (126.1) | $ | 82.8 |
2021 | 2020 | |||||||
Assets: | ||||||||
Accounts receivable | $ | 0.2 | $ | 2.7 | ||||
Inventories | 1.1 | 16.9 | ||||||
Other current assets | — | 0.1 | ||||||
Property, plant and equipment | 0.6 | 10.9 | ||||||
Operating lease assets | 0.2 | — | ||||||
Goodwill | 5.4 | — | ||||||
Other intangible assets | 2.2 | — | ||||||
Total assets acquired | $ | 9.7 | $ | 30.6 | ||||
Liabilities: | ||||||||
Accounts payable, trade | $ | 0.3 | $ | 0.8 | ||||
Other current liabilities | — | 0.5 | ||||||
Accrued postretirement liability | 1.5 | — | ||||||
Long-term operating lease liabilities | 0.2 | — | ||||||
Total liabilities assumed | $ | 2.0 | $ | 1.3 | ||||
Net assets acquired | $ | 7.7 | $ | 29.3 | ||||
Cash flow reconciling items: | ||||||||
Working capital adjustment related to 2019 acquisitions paid in 2020 | — | 6.7 | ||||||
Working capital adjustment related to 2020 acquisition received in 2021 | (0.2) | — | ||||||
Bargain purchase price gain | — | (12.0) | ||||||
Cash paid for acquisitions, net of cash acquired | $ | 7.5 | $ | 24.0 |
2021 | ||||||||
Weighted- Average Life | ||||||||
Technology and know-how | $ | 1.5 | 19 years | |||||
Customer Relationships | 0.5 | 2 years | ||||||
Non-Competes | 0.2 | 5 years | ||||||
Total intangible assets | $ | 2.2 |
December 31, 2021 | |||||||||||
Mobile | Process | Total | |||||||||
United States | $ | 950.9 | $ | 782.7 | $ | 1,733.6 | |||||
Americas excluding United States | 207.3 | 188.4 | 395.7 | ||||||||
Europe / Middle East / Africa | 487.8 | 540.3 | 1,028.1 | ||||||||
China | 125.8 | 486.1 | 611.9 | ||||||||
Asia-Pacific excluding China | 193.9 | 169.7 | 363.6 | ||||||||
Net sales | $ | 1,965.7 | $ | 2,167.2 | $ | 4,132.9 | |||||
December 31, 2020 | |||||||||||
Mobile | Process | Total | |||||||||
United States | $ | 853.8 | $ | 699.6 | $ | 1,553.4 | |||||
Americas excluding United States | 168.1 | 138.0 | 306.1 | ||||||||
Europe / Middle East / Africa | 389.9 | 457.0 | 846.9 | ||||||||
China | 102.2 | 421.0 | 523.2 | ||||||||
Asia-Pacific excluding China | 157.6 | 126.0 | 283.6 | ||||||||
Net sales | $ | 1,671.6 | $ | 1,841.6 | $ | 3,513.2 | |||||
December 31, 2019 | |||||||||||
Mobile | Process | Total | |||||||||
United States | $ | 1,007.1 | $ | 821.0 | $ | 1,828.1 | |||||
Americas excluding United States | 209.6 | 167.7 | 377.3 | ||||||||
Europe / Middle East / Africa | 390.8 | 489.2 | 880.0 | ||||||||
China | 92.1 | 268.5 | 360.6 | ||||||||
Asia-Pacific excluding China | 194.3 | 149.6 | 343.9 | ||||||||
Net sales | $ | 1,893.9 | $ | 1,896.0 | $ | 3,789.9 |
Revenue by sales channel | December 31, 2021 | December 31, 2020 | ||||||
Original equipment manufacturers | 60% | 60% | ||||||
Distribution/end users | 40% | 40% |
December 31, 2021 | |||||
Beginning balance, January 1 | $ | 110.9 | |||
Additional unbilled revenue recognized | 383.0 | ||||
Less: amounts billed to customers | (389.4) | ||||
Ending balance | $ | 104.5 |
2021 | 2020 | 2019 | |||||||||
Net sales to external customers: | |||||||||||
Mobile Industries | $ | 1,965.7 | $ | 1,671.6 | $ | 1,893.9 | |||||
Process Industries | 2,167.2 | 1,841.6 | 1,896.0 | ||||||||
$ | 4,132.9 | $ | 3,513.2 | $ | 3,789.9 | ||||||
Segment EBITDA: | |||||||||||
Mobile Industries | $ | 240.1 | $ | 232.5 | $ | 284.9 | |||||
Process Industries | 506.3 | 442.9 | 466.6 | ||||||||
Total EBITDA, for reportable segments | $ | 746.4 | $ | 675.4 | $ | 751.5 | |||||
Unallocated corporate expense | (46.1) | (40.7) | (55.4) | ||||||||
Corporate pension and other postretirement benefit related (expense) income (1) | (0.3) | (18.5) | 4.1 | ||||||||
Acquisition-related gain (2) | 0.9 | 11.1 | — | ||||||||
Depreciation and amortization | (167.8) | (167.1) | (160.6) | ||||||||
Interest expense | (58.8) | (67.6) | (72.1) | ||||||||
Interest income | 2.3 | 3.7 | 4.9 | ||||||||
Income before income taxes | $ | 476.6 | $ | 396.3 | $ | 472.4 |
2021 | 2020 | |||||||
Assets employed at year-end: | ||||||||
Mobile Industries | $ | 2,216.4 | $ | 2,082.2 | ||||
Process Industries | 2,548.3 | 2,482.6 | ||||||
Corporate (2) | 406.0 | 476.8 | ||||||
$ | 5,170.7 | $ | 5,041.6 |
2021 | 2020 | 2019 | |||||||||
Capital expenditures: | |||||||||||
Mobile Industries | $ | 52.3 | $ | 70.5 | $ | 74.2 | |||||
Process Industries | 95.4 | 50.1 | 65.3 | ||||||||
Corporate | 0.6 | 1.0 | 1.1 | ||||||||
$ | 148.3 | $ | 121.6 | $ | 140.6 | ||||||
Depreciation and amortization: | |||||||||||
Mobile Industries | $ | 80.1 | $ | 79.7 | $ | 73.6 | |||||
Process Industries | 86.6 | 86.6 | 86.2 | ||||||||
Corporate | 1.1 | 0.8 | 0.8 | ||||||||
$ | 167.8 | $ | 167.1 | $ | 160.6 |
2021 | 2020 | |||||||
Property, Plant and Equipment, net: | ||||||||
United States | $ | 398.2 | $ | 401.8 | ||||
China | 235.3 | 196.4 | ||||||
India | 142.9 | 140.0 | ||||||
Romania | 112.1 | 118.0 | ||||||
Rest of world | 166.8 | 179.4 | ||||||
$ | 1,055.3 | $ | 1,035.6 |
2021 | 2020 | 2019 | |||||||||
United States | $ | 125.8 | $ | 144.1 | $ | 190.7 | |||||
Non-United States | 350.8 | 252.2 | 281.7 | ||||||||
Income before income taxes | $ | 476.6 | $ | 396.3 | $ | 472.4 |
2021 | 2020 | 2019 | |||||||||
Current: | |||||||||||
Federal | $ | 8.1 | $ | 40.3 | $ | 20.8 | |||||
State and local | 3.9 | 7.9 | 4.8 | ||||||||
Foreign | 98.2 | 78.9 | 81.0 | ||||||||
$ | 110.2 | $ | 127.1 | $ | 106.6 | ||||||
Deferred: | |||||||||||
Federal | $ | (5.2) | $ | (19.5) | $ | 39.8 | |||||
State and local | (3.4) | (1.3) | 6.5 | ||||||||
Foreign | (6.5) | (2.4) | (55.2) | ||||||||
$ | (15.1) | $ | (23.2) | $ | (8.9) | ||||||
United States and foreign tax provision on income | $ | 95.1 | $ | 103.9 | $ | 97.7 |
2021 | 2020 | 2019 | |||||||||
Income tax at the U.S. federal statutory rate | $ | 100.1 | $ | 83.2 | $ | 99.2 | |||||
Adjustments: | |||||||||||
State and local income taxes, net of federal tax benefit | 4.0 | 4.8 | 7.4 | ||||||||
Tax on foreign remittances and U.S. tax on foreign income | 15.4 | 22.5 | 26.4 | ||||||||
Tax expense related to undistributed earnings of foreign subsidiaries | 0.1 | 0.1 | 6.0 | ||||||||
Foreign losses without current tax benefits | 2.6 | 2.5 | 3.2 | ||||||||
Foreign earnings taxed at different rates including tax holidays | 15.4 | 11.1 | 12.6 | ||||||||
U.S. foreign tax credit | (11.5) | (13.8) | (18.3) | ||||||||
Accruals and settlements related to tax audits | (7.7) | 3.4 | 11.1 | ||||||||
Valuation allowance changes | (7.8) | (0.7) | (44.5) | ||||||||
Deferred taxes related to branch operations | — | — | 5.3 | ||||||||
Stock based compensation | (8.1) | (3.1) | (1.8) | ||||||||
Other tax rate change | (1.7) | 0.8 | (5.0) | ||||||||
Other items, net | (5.7) | (6.9) | (3.9) | ||||||||
Provision for income taxes | $ | 95.1 | $ | 103.9 | $ | 97.7 | |||||
Effective income tax rate | 20.0 | % | 26.2 | % | 20.7 | % |
2021 | 2020 | |||||||
Deferred tax assets: | ||||||||
Accrued postretirement benefits cost | $ | 12.4 | $ | 15.4 | ||||
Accrued pension cost | 49.9 | 57.4 | ||||||
Other employee benefit accruals | 15.7 | 11.0 | ||||||
Tax loss and credit carryforwards | 83.2 | 90.2 | ||||||
Other, net | 63.9 | 46.7 | ||||||
Valuation allowances | (31.0) | (36.7) | ||||||
$ | 194.1 | $ | 184.0 | |||||
Deferred tax liabilities - principally depreciation and amortization | (247.9) | (255.7) | ||||||
Net deferred tax liabilities | $ | (53.8) | $ | (71.7) |
2021 | 2020 | 2019 | |||||||||
Beginning balance, January 1 | $ | 45.6 | $ | 38.9 | $ | 26.0 | |||||
Tax positions related to the current year: | |||||||||||
Additions | 1.6 | 2.2 | 3.6 | ||||||||
Tax positions related to prior years: | |||||||||||
Additions | 3.7 | 8.7 | 11.7 | ||||||||
Reductions | (8.1) | (1.0) | (1.1) | ||||||||
Settlements with tax authorities | (1.7) | (0.3) | (1.2) | ||||||||
Lapses in statutes of limitation | (5.0) | (2.9) | (0.1) | ||||||||
Ending balance, December 31 | $ | 36.1 | $ | 45.6 | $ | 38.9 |
2021 | 2020 | 2019 | |||||||||
Numerator: | |||||||||||
Net income attributable to The Timken Company | $ | 369.1 | $ | 284.5 | $ | 362.1 | |||||
Less: undistributed earnings allocated to nonvested stock | — | — | — | ||||||||
Net income available to common shareholders for basic and diluted earnings per share | $ | 369.1 | $ | 284.5 | $ | 362.1 | |||||
Denominator: | |||||||||||
Weighted average number of shares outstanding - basic | 75,885,316 | 75,354,280 | 75,758,123 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and awards - based on the treasury stock method | 1,121,273 | 1,047,086 | 1,138,442 | ||||||||
Weighted average number of shares outstanding, assuming dilution of stock options and awards | 77,006,589 | 76,401,366 | 76,896,565 | ||||||||
Basic earnings per share | $ | 4.86 | $ | 3.78 | $ | 4.78 | |||||
Diluted earnings per share | $ | 4.79 | $ | 3.72 | $ | 4.71 |
2021 | 2020 | |||||||
Manufacturing supplies | $ | 38.0 | $ | 34.8 | ||||
Raw materials | 121.8 | 99.5 | ||||||
Work in process | 418.4 | 320.3 | ||||||
Finished products | 527.8 | 441.2 | ||||||
Subtotal | $ | 1,106.0 | $ | 895.8 | ||||
Allowance for surplus and obsolete inventory | (63.3) | (54.5) | ||||||
Total Inventories, net | $ | 1,042.7 | $ | 841.3 |
2021 | 2020 | |||||||
Land and buildings | $ | 554.1 | $ | 535.3 | ||||
Machinery and equipment | 2,252.4 | 2,206.2 | ||||||
Subtotal | $ | 2,806.5 | $ | 2,741.5 | ||||
Less: accumulated depreciation | (1,751.2) | (1,705.9) | ||||||
Property, Plant and Equipment, net | $ | 1,055.3 | $ | 1,035.6 |
Mobile Industries | Process Industries | Total | |||||||||
Beginning Balance | $ | 384.6 | $ | 663.0 | $ | 1,047.6 | |||||
Acquisitions | — | 5.4 | 5.4 | ||||||||
Foreign currency translation adjustments | (12.9) | (17.4) | (30.3) | ||||||||
Ending Balance | $ | 371.7 | $ | 651.0 | $ | 1,022.7 |
Mobile Industries | Process Industries | Total | |||||||||
Beginning Balance | $ | 361.3 | $ | 632.4 | $ | 993.7 | |||||
Acquisitions | 5.6 | 2.8 | 8.4 | ||||||||
Foreign currency translation adjustments and other changes | 17.7 | 27.8 | 45.5 | ||||||||
Ending Balance | $ | 384.6 | $ | 663.0 | $ | 1,047.6 |
2021 | 2020 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||
Customer relationships | $ | 518.1 | $ | (189.3) | $ | 328.8 | $ | 532.2 | $ | (161.9) | $ | 370.3 | ||||||||
Technology and know-how | 270.7 | (86.6) | 184.1 | 277.2 | (72.0) | 205.2 | ||||||||||||||
Trade names | 14.3 | (9.6) | 4.7 | 14.2 | (8.8) | 5.4 | ||||||||||||||
Capitalized Software | 280.0 | (261.3) | 18.7 | 276.4 | (254.6) | 21.8 | ||||||||||||||
Other | 4.7 | (3.6) | 1.1 | 4.7 | (3.7) | 1.0 | ||||||||||||||
$ | 1,087.8 | $ | (550.4) | $ | 537.4 | $ | 1,104.7 | $ | (501.0) | $ | 603.7 | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||||||||
Trade names | $ | 122.7 | $ | 122.7 | $ | 129.0 | $ | 129.0 | ||||||||||||
FAA air agency certificates | 8.7 | 8.7 | 8.7 | 8.7 | ||||||||||||||||
$ | 131.4 | $ | 131.4 | $ | 137.7 | $ | 137.7 | |||||||||||||
Total intangible assets | $ | 1,219.2 | $ | (550.4) | $ | 668.8 | $ | 1,242.4 | $ | (501.0) | $ | 741.4 |
(Dollars in millions) | December 31, | |||||||
2021 | 2020 | |||||||
Sales rebates | $ | 70.3 | $ | 41.1 | ||||
Product warranty | 11.7 | 9.4 | ||||||
Operating lease liabilities | 26.2 | 27.2 | ||||||
Professional fees | 10.8 | 9.6 | ||||||
Restructuring | 7.0 | 8.0 | ||||||
Taxes other than income and payroll taxes | 16.0 | 15.7 | ||||||
Interest | 10.8 | 10.8 | ||||||
Other | 97.8 | 92.3 | ||||||
Total Current Liabilities | $ | 250.6 | $ | 214.1 |
December 31, 2021 | December 31, 2020 | |||||||
Operating lease expense | $ | 34.1 | $ | 36.0 | ||||
Amortization of right-of-use assets on finance leases | 2.3 | 1.5 | ||||||
Total lease expense | $ | 36.4 | $ | 37.5 |
Operating Leases | December 31, 2021 | December 31, 2020 | ||||||
Lease assets: | ||||||||
Operating lease assets | $ | 118.9 | $ | 118.2 | ||||
Lease liabilities: | ||||||||
$ | 26.2 | $ | 27.2 | |||||
Long-term operating lease liabilities | 77.6 | 75.5 | ||||||
Total operating lease liabilities | $ | 103.8 | $ | 102.7 |
Finance Leases | December 31, 2021 | December 31, 2020 | ||||||
Lease assets: | ||||||||
$ | 5.3 | $ | 5.3 | |||||
Lease liabilities: | ||||||||
$ | 1.4 | $ | 0.8 | |||||
2.9 | 2.9 | |||||||
Total finance lease liabilities | $ | 4.3 | $ | 3.7 |
Operating Leases | Finance Leases | |||||||
Year Ending December 31, | ||||||||
2022 | $ | 29.2 | $ | 2.0 | ||||
2023 | 22.1 | 1.2 | ||||||
2024 | 16.1 | 0.7 | ||||||
2025 | 13.2 | 0.4 | ||||||
2026 | 10.5 | 0.1 | ||||||
Thereafter | 25.5 | — | ||||||
Total future minimum lease payments | $ | 116.6 | $ | 4.4 | ||||
Less: imputed interest | (12.8) | (0.1) | ||||||
Total | $ | 103.8 | $ | 4.3 |
December 31, 2021 | December 31, 2020 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 32.9 | $ | 35.7 | ||||
Financing cash flows from finance leases | 2.2 | 1.2 | ||||||
Lease assets added in the period: | ||||||||
Operating leases | $ | 22.9 | $ | 39.9 | ||||
Finance leases | 1.2 | 0.9 |
December 31, 2021 | December 31, 2020 | |||||||
Weighted-average remaining lease term: | ||||||||
Operating leases | 5.4 years | 5.1 years | ||||||
Finance leases | 2.9 years | 2.9 years | ||||||
Weighted-average discount rate: | ||||||||
Operating leases | 3.30 | % | 3.69 | % | ||||
Finance leases | 2.71 | % | 2.55 | % |
2021 | 2020 | |||||||
Variable-rate Accounts Receivable Facility with an interest rate of 0.96% at December 31, 2020 | $ | — | $ | 58.0 | ||||
Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.50% to 2.00% at December 31, 2021 and 0.24% to 1.75% at December 31, 2020 | 42.6 | 61.8 | ||||||
Short-term debt | $ | 42.6 | $ | 119.8 |
2021 | 2020 | |||||||
Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 1.09% and Euro of 1.00% at December 31, 2021 and 2.01% and 1.48%, respectively, at December 31, 2020 | $ | 9.0 | $ | 9.7 | ||||
Variable-rate Term Loan(1), maturing on September 11, 2023, with an interest rate of 1.23% at December 31, 2021 and of 1.63% at December 31, 2020. | 321.1 | 329.6 | ||||||
Fixed-rate Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875% | 349.5 | 349.0 | ||||||
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02% | 170.3 | 182.9 | ||||||
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50% | 396.9 | 396.5 | ||||||
Fixed-rate Medium-Term Notes, Series A(1), maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% | 154.7 | 154.7 | ||||||
Fixed-rate Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% | 15.8 | 18.8 | ||||||
Other | 5.0 | 3.6 | ||||||
Total debt | $ | 1,422.3 | $ | 1,444.8 | ||||
Less current maturities | 11.2 | 10.9 | ||||||
Long-term debt | $ | 1,411.1 | $ | 1,433.9 |
Year | |||||
2022 | $ | 11.2 | |||
2023 | 9.8 | ||||
2024 | 305.3 | ||||
2025 | 359.3 | ||||
2026 | 1.0 | ||||
Thereafter | 735.7 |
December 31, 2021 | December 31, 2020 | |||||||
Beginning balance, January 1 | $ | 9.4 | $ | 7.5 | ||||
Expense | 10.1 | 9.4 | ||||||
Payments | (7.8) | (7.5) | ||||||
Ending balance | $ | 11.7 | $ | 9.4 |
Expected to be Settled in Equity | Expected to be Settled in Cash | Total Awards Granted | |||||||||
Performance-based restricted stock units | 171,615 | 6,390 | 178,005 | ||||||||
Time-based restricted stock units | 131,115 | 4,320 | 135,435 | ||||||||
Deferred shares | 4,100 | 1,250 | 5,350 |
Number of Shares | Weighted-average Grant Date Fair Value | |||||||
Outstanding - beginning of year | 1,125,472 | $ | 46.50 | |||||
Granted - new awards | 306,830 | 75.57 | ||||||
Adjusted for performance results achieved (1) | 181,933 | 44.65 | ||||||
Vested | (577,948) | 44.18 | ||||||
Canceled or expired | (42,316) | 56.55 | ||||||
Outstanding - end of year | 993,971 | $ | 56.06 |
2019 | |||||
Weighted-average fair value per option | $ | 9.58 | |||
Risk-free interest rate | 2.46 | % | |||
Dividend yield | 2.52 | % | |||
Expected stock volatility | 28.29 | % | |||
Expected life | 5 years |
Number of Shares | Weighted-average Exercise Price | Weighted-average Remaining Contractual Term | Aggregate Intrinsic Value (millions) | |||||||||||
Outstanding - beginning of year | 1,904,749 | $ | 40.53 | |||||||||||
Exercised | (674,705) | 38.55 | ||||||||||||
Canceled or expired | (12,099) | 43.16 | ||||||||||||
Outstanding - end of year | 1,217,945 | $ | 41.59 | 7 years | $ | 33.7 | ||||||||
Options expected to vest | 1,217,945 | 41.59 | 7 years | 33.7 | ||||||||||
Options exercisable | 890,855 | 41.00 | 6 years | 25.2 |
Mobile Industries | Process Industries | Unallocated Corporate | Total | |||||||||||
Impairment charges | $ | 1.1 | $ | 3.4 | $ | — | $ | 4.5 | ||||||
Severance and related benefit costs | 1.7 | 0.9 | — | 2.6 | ||||||||||
Exit costs | 1.4 | 0.4 | — | 1.8 | ||||||||||
Total | $ | 4.2 | $ | 4.7 | $ | — | $ | 8.9 |
Mobile Industries | Process Industries | Unallocated Corporate | Total | |||||||||||
Impairment charges | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.4 | ||||||
Severance and related benefit costs | 8.2 | 11.0 | 0.4 | 19.6 | ||||||||||
Exit costs | 0.6 | 0.6 | — | 1.2 | ||||||||||
Total | $ | 9.0 | $ | 11.8 | $ | 0.4 | $ | 21.2 |
Mobile Industries | Process Industries | Unallocated Corporate | Total | |||||||||||
Impairment charges | $ | 1.8 | $ | 0.8 | $ | — | $ | 2.6 | ||||||
Severance and related benefit costs | 1.6 | 0.9 | 0.5 | 3.0 | ||||||||||
Exit costs | 0.2 | 1.0 | — | 1.2 | ||||||||||
Total | $ | 3.6 | $ | 2.7 | $ | 0.5 | $ | 6.8 |
2021 | 2020 | |||||||
Beginning balance, January 1 | $ | 8.0 | $ | 2.7 | ||||
Expense | 4.4 | 20.8 | ||||||
Payments | (5.4) | (15.5) | ||||||
Ending balance, December 31 | $ | 7.0 | $ | 8.0 |
U.S. Plans | International Plans | |||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||
Service cost | $ | 9.5 | $ | 10.7 | $ | 10.7 | $ | 2.0 | $ | 1.8 | $ | 1.5 | ||||||||
Interest cost | 17.6 | 21.0 | 23.5 | 4.4 | 5.5 | 7.3 | ||||||||||||||
Expected return on plan assets | (23.2) | (25.3) | (25.8) | (10.2) | (8.7) | (10.2) | ||||||||||||||
Amortization of prior service cost | 1.2 | 1.6 | 1.6 | 0.2 | 0.2 | 0.2 | ||||||||||||||
Recognition of net actuarial losses (gains) | 13.9 | (3.9) | (3.5) | (9.5) | 20.1 | 17.4 | ||||||||||||||
Curtailment losses | — | 0.9 | — | — | — | — | ||||||||||||||
Net periodic benefit cost (credit) | $ | 19.0 | $ | 5.0 | $ | 6.5 | $ | (13.1) | $ | 18.9 | $ | 16.2 |
Assumptions | 2021 | 2020 | 2019 | ||||||||
U.S. Plans: | |||||||||||
Discount rate | 2.71% to 2.91% | 3.04% to 3.55% | 3.67% to 4.43% | ||||||||
Future compensation assumption | 2.50 | % | 2.50 | % | 2.50 | % | |||||
Expected long-term return on plan assets | 4.15% to 4.90% | 4.50% to 6.25% | 5.35% to 6.25% | ||||||||
International Plans: | |||||||||||
Discount rate | 0.25% to 7.75% | 0.75% to 9.00% | 1.50% to 11.00% | ||||||||
Future compensation assumption | 1.90% to 8.18% | 2.00% to 8.20% | 2.00% to 8.23% | ||||||||
Expected long-term return on plan assets | 2.00% to 9.00% | 1.75% to 9.00% | 2.50% to 9.00% |
Assumptions | 2021 | 2020 | ||||||
U.S. Plans: | ||||||||
Discount rate | 3.03% to 3.09% | 2.71% to 2.91% | ||||||
Future compensation assumption | 2.50% to 3.50% | 2.50 | % | |||||
International Plans: | ||||||||
Discount rate | 1.00% to 9.50% | 0.25% to 7.75% | ||||||
Future compensation assumption | 2.10% to 8.00% | 1.90% to 8.18% |
U.S. Plans | International Plans | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Change in benefit obligation: | ||||||||||||||
Benefit obligation at beginning of year | $ | 663.1 | $ | 634.7 | $ | 379.7 | $ | 328.8 | ||||||
Service cost | 9.5 | 10.7 | 2.0 | 1.8 | ||||||||||
Interest cost | 17.6 | 21.0 | 4.4 | 5.5 | ||||||||||
Plan amendments | — | 0.1 | 0.5 | — | ||||||||||
Actuarial (gains) losses | (4.4) | 56.6 | (19.6) | 43.9 | ||||||||||
International plan exchange rate change | — | — | (8.7) | 14.1 | ||||||||||
Curtailments | — | 0.3 | — | — | ||||||||||
Benefits paid | (119.5) | (60.3) | (15.2) | (14.4) | ||||||||||
Benefit obligation at end of year | $ | 566.3 | $ | 663.1 | $ | 343.1 | $ | 379.7 |
Change in plan assets: | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 553.3 | $ | 520.2 | $ | 312.8 | $ | 274.7 | ||||||
Actual return on plan assets | 4.9 | 85.8 | 0.1 | 32.5 | ||||||||||
Company contributions / payments | 17.0 | 7.6 | 3.4 | 10.3 | ||||||||||
International plan exchange rate change | — | — | (4.3) | 9.7 | ||||||||||
Benefits paid | (119.5) | (60.3) | (15.2) | (14.4) | ||||||||||
Fair value of plan assets at end of year | 455.7 | 553.3 | 296.8 | 312.8 | ||||||||||
Funded status at end of year | $ | (110.6) | $ | (109.8) | $ | (46.3) | $ | (66.9) |
Amounts recognized in accumulated other comprehensive loss (income): | ||||||||||||||
Net prior service cost | $ | 1.5 | $ | 2.7 | $ | 4.2 | $ | 3.9 | ||||||
Accumulated other comprehensive loss (income) | $ | 1.5 | $ | 2.7 | $ | 4.2 | $ | 3.9 |
Changes in prior service cost recognized in accumulated other comprehensive loss (income): | ||||||||||||||
Accumulated other comprehensive loss (income) at beginning of year | $ | 2.7 | $ | 4.8 | $ | 3.9 | $ | 3.9 | ||||||
Prior service cost | — | 0.1 | 0.5 | — | ||||||||||
Recognized prior service cost | (1.2) | (1.6) | (0.2) | (0.2) | ||||||||||
Loss recognized due to curtailment | — | (0.6) | — | — | ||||||||||
Foreign currency impact | — | — | — | 0.2 | ||||||||||
Total recognized in accumulated other comprehensive loss (income) at December 31 | $ | 1.5 | $ | 2.7 | $ | 4.2 | $ | 3.9 |
Current Target Allocation | Percentage of Pension Plan Assets at December 31, | ||||||||||||||||
Asset Category | 2021 | 2020 | |||||||||||||||
Equity securities | 17% | to | 23% | 19% | 22% | ||||||||||||
Fixed income securities | 71% | to | 83% | 78% | 75% | ||||||||||||
Other investments | 2% | to | 4% | 3% | 3% | ||||||||||||
Total | 100% | 100% |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 13.8 | $ | — | $ | — | $ | 13.8 | $ | 37.1 | $ | — | $ | — | $ | 37.1 | ||||||||||
Government and agency securities | 22.7 | 2.7 | — | 25.4 | 45.1 | 3.0 | — | 48.1 | ||||||||||||||||||
Corporate bonds - investment grade | — | 82.7 | — | 82.7 | — | 99.5 | — | 99.5 | ||||||||||||||||||
Common collective funds - fixed income | 42.5 | — | — | 42.5 | 44.5 | — | — | 44.5 | ||||||||||||||||||
Mutual funds - fixed income | 51.8 | — | — | 51.8 | 55.4 | — | — | 55.4 | ||||||||||||||||||
Mutual funds - international equity | 41.0 | — | — | 41.0 | 60.4 | — | — | 60.4 | ||||||||||||||||||
$ | 171.8 | $ | 85.4 | $ | — | $ | 257.2 | $ | 242.5 | $ | 102.5 | $ | — | $ | 345.0 | |||||||||||
Investments measured at net asset value: | ||||||||||||||||||||||||||
Equity securities - international companies | $ | 0.3 | $ | 0.3 | ||||||||||||||||||||||
Common collective funds - domestic equities | 45.9 | 63.2 | ||||||||||||||||||||||||
Common collective funds - international equities | 33.6 | 42.6 | ||||||||||||||||||||||||
Common collective funds - fixed income | 216.6 | 203.8 | ||||||||||||||||||||||||
Common collective funds - diversified growth | 18.5 | 20.1 | ||||||||||||||||||||||||
Limited partnerships | 10.4 | 13.2 | ||||||||||||||||||||||||
Real estate partnerships | 6.6 | 7.7 | ||||||||||||||||||||||||
Other liability-driven investments | 138.1 | 144.4 | ||||||||||||||||||||||||
Other assets | 25.3 | 25.8 | ||||||||||||||||||||||||
Total Assets | $ | 752.5 | $ | 866.1 |
Employer Contributions to Defined Benefit Plans | |||||
2020 | $ | 17.9 | |||
2021 | 20.4 | ||||
2022 (estimated) | 9.5 |
2021 | 2020 | 2019 | |||||||||
Components of net periodic credit: | |||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.2 | |||||
Interest cost | 1.5 | 2.1 | 5.9 | ||||||||
Expected return on plan assets | — | (0.4) | (3.2) | ||||||||
Amortization of prior service credit | (10.1) | (9.8) | (5.4) | ||||||||
Recognition of net actuarial (gains) losses | (4.1) | 1.4 | (18.0) | ||||||||
Net periodic credit: | $ | (12.5) | $ | (6.5) | $ | (20.5) |
Assumptions: | 2021 | 2020 | 2019 | ||||||||
Discount rate | 2.62 | % | 3.43 | % | 3.48% to 4.30% | ||||||
Rate of return | — | % | 3.00 | % | 4.85 | % |
Assumptions: | 2021 | 2020 | ||||||
Discount rate | 2.99 | % | 2.62 | % |
2021 | 2020 | |||||||
Change in benefit obligation: | ||||||||
Benefit obligation at beginning of year | $ | 57.6 | $ | 63.4 | ||||
Service cost | 0.2 | 0.2 | ||||||
Interest cost | 1.5 | 2.1 | ||||||
Plan amendments | — | (3.1) | ||||||
Actuarial (gains) losses | (4.1) | 1.8 | ||||||
Benefits paid | (4.1) | (6.8) | ||||||
Benefit obligation at end of year | $ | 51.1 | $ | 57.6 |
Change in plan assets: | ||||||||
Fair value of plan assets at beginning of year | $ | 11.1 | $ | 64.4 | ||||
Company contributions / payments | — | 2.7 | ||||||
Transfer to VEBA trust for certain active employees' medical benefits | (11.1) | (50.0) | ||||||
Return on plan assets | — | 0.8 | ||||||
Benefits paid | — | (6.8) | ||||||
Fair value of plan assets at end of year | — | 11.1 | ||||||
Funded status at end of year | $ | (51.1) | $ | (46.5) |
Amounts recognized on the Consolidated Balance Sheets: | ||||||||
Current liabilities | (5.3) | (5.2) | ||||||
Non-current liabilities | (45.8) | (41.3) | ||||||
$ | (51.1) | $ | (46.5) |
Amounts recognized in accumulated other comprehensive loss (income): | ||||||||
Net prior service credit | $ | (81.4) | $ | (91.5) | ||||
Accumulated other comprehensive loss (income) | $ | (81.4) | $ | (91.5) |
Changes to prior service credit recognized in accumulated other comprehensive loss (income): | ||||||||
Accumulated other comprehensive income at beginning of year | $ | (91.5) | $ | (98.2) | ||||
Prior service credit | — | (3.1) | ||||||
Recognized prior service credit | 10.1 | 9.8 | ||||||
Total recognized in accumulated other comprehensive loss (income) at December 31 | $ | (81.4) | $ | (91.5) |
Balance at December 31, 2020 | ||||||||||||||
Assets: | NAV | Level 1 | Level 2 | Level 3 | ||||||||||
Cash and cash equivalents | $ | 0.5 | $ | — | $ | — | $ | — | ||||||
Mutual fund - fixed income | — | 10.6 | — | — | ||||||||||
Total Assets | $ | 0.5 | $ | 10.6 | $ | — | $ | — |
Future Benefit Payments | |||||
2022 | $ | 5 | |||
2023 | 4 | ||||
2024 | 4 | ||||
2025 | 4 | ||||
2026 | 4 | ||||
2027-2031 | 17 |
Foreign currency translation adjustments | Pension and postretirement liability adjustments | Change in fair value of derivative financial instruments | Total | |||||||||||
Balance at December 31, 2020 | $ | (18.0) | $ | 63.4 | $ | (4.1) | $ | 41.3 | ||||||
Other comprehensive (loss) income before reclassifications and income taxes | (63.7) | (0.4) | 2.4 | (61.7) | ||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income, before income tax | — | (8.7) | 4.2 | (4.5) | ||||||||||
Income tax benefit (expense) | — | 2.3 | (1.8) | 0.5 | ||||||||||
Net current period other comprehensive (loss) income, net of income taxes | (63.7) | (6.8) | 4.8 | (65.7) | ||||||||||
Noncontrolling interest | 1.4 | — | — | 1.4 | ||||||||||
Net current period comprehensive (loss) income, net of income taxes and noncontrolling interest | (62.3) | (6.8) | 4.8 | (64.3) | ||||||||||
Balance at December 31, 2021 | $ | (80.3) | $ | 56.6 | $ | 0.7 | $ | (23.0) |
Foreign currency translation adjustments | Pension and postretirement liability adjustments | Change in fair value of derivative financial instruments | Total | |||||||||||
Balance at December 31, 2019 | $ | (115.3) | $ | 66.9 | $ | (1.7) | $ | (50.1) | ||||||
Other comprehensive income (loss) before reclassifications and income taxes | 92.7 | 2.8 | (1.2) | 94.3 | ||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income, before income tax | — | (7.4) | (2.3) | (9.7) | ||||||||||
Income tax benefit | — | 1.1 | 1.1 | 2.2 | ||||||||||
Net current period other comprehensive income (loss), net of income taxes | 92.7 | (3.5) | (2.4) | 86.8 | ||||||||||
Noncontrolling interest | 4.6 | — | — | 4.6 | ||||||||||
Net current period comprehensive income (loss), net of income taxes and noncontrolling interest | 97.3 | (3.5) | (2.4) | 91.4 | ||||||||||
Balance at December 31, 2020 | $ | (18.0) | $ | 63.4 | $ | (4.1) | $ | 41.3 |
December 31, 2021 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 257.1 | $ | 244.8 | $ | 12.3 | $ | — | ||||||
Restricted cash | 0.8 | 0.8 | — | — | ||||||||||
Short-term investments | 56.9 | — | 56.9 | — | ||||||||||
Foreign currency hedges | 5.6 | — | 5.6 | — | ||||||||||
Total Assets | $ | 320.4 | $ | 245.6 | $ | 74.8 | $ | — | ||||||
Liabilities: | ||||||||||||||
Foreign currency hedges | $ | 1.0 | $ | — | $ | 1.0 | $ | — | ||||||
Total Liabilities | $ | 1.0 | $ | — | $ | 1.0 | $ | — |
December 31, 2020 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 320.3 | $ | 318.6 | $ | 1.7 | $ | — | ||||||
Restricted cash | 0.8 | 0.8 | — | — | ||||||||||
Short-term investments | 37.6 | — | 37.6 | — | ||||||||||
Foreign currency hedges | 1.1 | — | 1.1 | — | ||||||||||
Total Assets | $ | 359.8 | $ | 319.4 | $ | 40.4 | $ | — | ||||||
Liabilities: | ||||||||||||||
Foreign currency hedges | $ | 8.1 | $ | — | $ | 8.1 | $ | — | ||||||
Total Liabilities | $ | 8.1 | $ | — | $ | 8.1 | $ | — |
Amount of gain or (loss) recognized in income | ||||||||||||||
Year Ended December 31, | ||||||||||||||
Derivatives not designated as hedging instruments | Location of gain or (loss) recognized in income | 2021 | 2020 | 2019 | ||||||||||
Foreign currency forward contracts | Other income (expense), net | $ | 3.6 | $ | (3.7) | $ | 5.9 |
Year Ended December 31, | |||||||||||
Expenditures as a percentage of sales | 2021 | 2020 | 2019 | ||||||||
Research and Development Expense | 0.9 | % | 1.2 | % | 1.1 | % | |||||
Engineering Expense | 1.4 | % | 1.0 | % | 1.3 | % | |||||
Total | 2.3 | % | 2.2 | % | 2.4 | % |
2021 | |||||||||||||||||
1st | 2nd | 3rd | 4th | Total | |||||||||||||
Net sales | $ | 1,025.4 | $ | 1,062.9 | $ | 1,037.3 | $ | 1,007.3 | $ | 4,132.9 | |||||||
Gross profit | 299.2 | 302.3 | 267.9 | 233.1 | 1,102.5 | ||||||||||||
Selling, general and administrative expenses | 144.5 | 149.0 | 140.7 | 146.3 | 580.5 | ||||||||||||
Impairment and restructuring charges | 4.0 | 1.3 | 2.9 | 0.7 | 8.9 | ||||||||||||
Net income (1) | 116.0 | 107.2 | 91.6 | 66.7 | 381.5 | ||||||||||||
Net income attributable to noncontrolling interests | 2.7 | 2.4 | 3.5 | 3.8 | 12.4 | ||||||||||||
Net income attributable to The Timken Company | 113.3 | 104.8 | 88.1 | 62.9 | 369.1 | ||||||||||||
Net income per share - Basic: | $ | 1.49 | $ | 1.38 | $ | 1.16 | $ | 0.83 | $ | 4.86 | |||||||
Net income per share - Diluted: | $ | 1.47 | $ | 1.36 | $ | 1.14 | $ | 0.82 | $ | 4.79 | |||||||
Dividends per share | $ | 0.29 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 1.19 | |||||||
2020 | |||||||||||||||||
1st | 2nd | 3rd | 4th | Total | |||||||||||||
Net sales | $ | 923.4 | $ | 803.5 | $ | 894.6 | $ | 891.7 | $ | 3,513.2 | |||||||
Gross profit | 278.9 | 230.3 | 263.7 | 237.0 | 1,009.9 | ||||||||||||
Selling, general and administrative expenses | 153.6 | 111.8 | 132.7 | 135.7 | 533.8 | ||||||||||||
Impairment and restructuring charges | 3.6 | 3.1 | 12.0 | 2.5 | 21.2 | ||||||||||||
Net income (2) | 84.0 | 61.8 | 91.3 | 55.3 | 292.4 | ||||||||||||
Net income attributable to noncontrolling interests | 3.3 | (0.1) | 2.5 | 2.2 | 7.9 | ||||||||||||
Net income attributable to The Timken Company | 80.7 | 61.9 | 88.8 | 53.1 | 284.5 | ||||||||||||
Net income per share - Basic: | $ | 1.07 | $ | 0.82 | $ | 1.18 | $ | 0.70 | $ | 3.78 | |||||||
Net income per share - Diluted: | $ | 1.06 | $ | 0.82 | $ | 1.16 | $ | 0.69 | $ | 3.72 | |||||||
Dividends per share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.29 | $ | 1.13 |
Pension Benefit Obligation | |||||
Description of the Matter | At December 31, 2021, the Company’s pension benefit obligation was $909.4 million and exceeded the fair value of pension plan assets of $752.5 million, resulting in an unfunded pension benefit obligation of $156.9 million. As explained in Note 1, Significant Accounting Policies and Note 16, Retirement Benefit Plans, to the consolidated financial statements, 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, through updating the estimates used to measure the pension benefit obligation and plan assets to reflect the actual return on plan assets and updated actuarial assumptions. Auditing the pension benefit obligation is complex and required the involvement of specialists due to the highly judgmental nature of certain of the actuarial assumptions (e.g., discount rate) used in the measurement process. These assumptions had a significant effect on the projected benefit obligation and net periodic benefit costs recognized. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting for the measurement of the pension benefit obligation. For example, we tested controls over management’s review of the pension benefit obligation calculations, the relevant data inputs and the significant actuarial assumptions used in the calculations. To test the pension benefit obligation, our audit procedures included, among others, evaluating the methodology used, the significant actuarial assumptions discussed above, and the underlying data used by the Company. We compared the actuarial assumptions used by management to historical trends and evaluated the change in the pension benefit obligation from prior year due to the change in service cost, interest cost, actuarial losses (gains), benefits paid and other activities. In addition, we involved actuarial specialists to assist with our procedures. For example, we evaluated management’s methodology for determining the discount rate that reflects the maturity and duration of the benefit payments and is used to measure the pension benefit obligation. In certain instances, as part of this assessment, we compared the projected cash flows to prior year and compared the current year benefits paid to the prior year projected cash flows. We also tested the completeness and accuracy of the underlying data, including the participant data used in the determination of the projected benefit obligation. |
Exhibit | ||||||||
Amended Articles of Incorporation of Registrant, (effective May 7, 2013) were filed on July 31, 2013 with Form 10-Q (Commission File No. 1-1169) and are incorporated herein by reference. | ||||||||
Amended Regulations of the Registrant adopted on May 10, 2016, were filed on July 28, 2016 with Form 10-Q (Commission File No. 1-1169) and are incorporated herein by reference. | ||||||||
Fourth Amended and Restated Credit Agreement, dated as of June 25, 2019, among The Timken Company, Bank of America, N.A. and KeyBank National Association, as Co-Administrative Agent, and the Lenders party thereto, was filed on June 25, 2019 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
First Amendment to Credit Agreement, dated as of May 27, 2020, among the Timken Company, Bank of America, N.A. and KeyBank National Association, as Co-Administrative Agents, KeyBank National Association as Paying Agent, L/C Issuer and Swing Line Lender, and the other lenders party thereto was filed on May 27, 2020 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference.* | ||||||||
Credit Agreement, dated as of September 11, 2018, among The Timken Company, KeyBank National Association, as Administrative Agent, and the Lenders party thereto, was filed on September 14, 2018 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
First Amendment to Credit Agreement, dated as of July 12, 2019, among The Timken Company, KeyBank National Association, as Administrative Agent, and the Lenders party thereto was filed on July 12, 2019 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Second Amendment to Credit Agreement, dated as of May 27, 2020, among The Timken Company KeyBank National Association, as Administrative Agent, and the other lenders party thereto was filed on May 27, 2020 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference.* | ||||||||
First Supplemental Indenture, dated as of July 24, 1996, by and between The Timken Company and Mellon Bank, N.A. was filed on November 13, 1996 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Indenture, dated as of August 20, 2014, by and between The Timken Company and The Bank of New York Mellon Trust Company, N.A., was filed on August 20, 2014 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Indenture, dated as of September 6, 2018, by and between The Timken Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, was filed on September 6, 2018 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
First Supplemental Indenture, dated as of September 6, 2018, by and between The Timken Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (including Form of Note), was filed on September 6, 2018 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Description of The Timken Company Common Shares was filed on February 14, 2020 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
The Company is also a party to agreements with respect to other long-term debt in total amount less than 10% of the Registrant's consolidated total assets. The Registrant agrees to furnish a copy of such agreements upon request.* |
The Timken Company 1996 Deferred Compensation Plan for officers and other key employees, amended and restated effective as of January 1, 2019 was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
. | ||||||||
The Timken Company Director Deferred Compensation Plan, amended and restated effective December 31, 2008, was filed on February 25, 2010 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of The Timken Company 1996 Deferred Compensation Plan Election Agreement, amended and restated as of January 1, 2008, was filed on February 25, 2010 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of The Timken Company Director Deferred Compensation Plan Election Agreement, amended and restated as of January 1, 2008, was filed on February 25, 2010 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
The Timken Company 2011 Long-Term Incentive Plan, as amended and restated as of February 13, 2015 for directors, officers and other key employees as approved by the shareholders on May 7, 2015 was filed on March 27, 2015 with Definitive Proxy Statement on Schedule 14A (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
The Timken Company 2019 Equity and Incentive Compensation Plan for directors, officers and other key employees as approved by the shareholders on May 10, 2019 was filed on March 22, 2019 as Appendix B to Definitive Proxy Statement on Schedule 14A (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amended and Restated Supplemental Pension Plan of The Timken Company, amended and restated effective as of January 1, 2011, was filed on February 17, 2012 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amended and Restated Supplemental Pension Plan of The Timken Company, effective as of June 30, 2014, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amendment No. 1 to the Amended and Restated Supplemental Pension Plan of The Timken Company, effective as of June 30, 2014, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amended and Restated Supplemental Pension Plan of The Timken Company, effective as of October 1, 2018, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
The Timken Company Senior Executive Management Performance Plan, as amended and restated as of February 13, 2015 and approved by shareholders on May 7, 2015, was filed on March 27, 2015 with Definitive Proxy Statement on Schedule 14A (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
The Timken Company Short-Term Incentive Plan Global Plan Document for officers and other key employees, amended and restated effective as of January 1, 2021 and pursuant to The Timken Company 2019 Equity and Incentive Compensation Plan, as attached hereto as Exhibit 10.1. | ||||||||
Form of Severance Agreement (for Executive Officers appointed on or after November 12, 2015), as adopted on November 12, 2015, was filed on February 24, 2016 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Severance Agreement as adopted on December 9, 2010 was filed on February 22, 2011 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Severance Agreement with Andreas Roellgen, dated as of July 18, 2016, was filed on July 31, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Indemnification Agreement for Directors was filed on February 14, 2020 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Indemnification Agreement for Executive Officers was filed on February 14, 2020 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Amended and Restated Employee Excess Benefits Agreement entered into with certain Executive Officers and certain key employees of the Company, was filed on February 26, 2009 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference | ||||||||
Form of Amended and Restated Employee Excess Benefits Agreement entered into with the Chief Executive Officer, was filed on February 26, 2009 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Employee Excess Benefits Agreement, entered into with all Executive Officers after January 1, 2011, was filed on August 4, 2011 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amendment No. 1 to the Employee Excess Benefits Agreement, dated January 1, 2011, entered into with Richard G. Kyle, approved as of November 8, 2018 was filed on February 15, 2019 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Amendment No. 1 to The Amended and Restated Employee Excess Benefit Agreement, entered into with certain Executive Officers and certain key employees of the Company, was filed on September 2, 2009 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Amendment No. 1 to The Amended and Restated Employee Excess Benefits Agreement with all Executive Officers after January 1, 2011 and Form of Amendment No. 2 to the Amended and Restated Excess Benefits Agreement with certain Executive Officers and certain key employees of the Company, as adopted December 8, 2011, was filed on February 17, 2012 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amendment No. 2 to the Amended and Restated Employee Excess Benefits Agreement, dated December 17, 2008, entered into with Christopher A. Coughlin, approved as of November 8, 2018 was filed on February 15, 2019 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Amendment No. 3 to the Amended and Restated Employee Excess Benefits Agreement, dated December 18, 2008, entered into with Philip D. Fracassa, approved as of November 8, 2018 was filed on February 15, 2019 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference | ||||||||
Form of Amendment No. 1 to The Amended and Restated Employee Excess Benefits Agreement entered into with the Chief Executive Officer, as adopted December 8, 2011, was filed on February 17, 2012 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Amendment No. 2 to The Amended and Restated Employee Excess Benefits Agreement entered into with the Chief Executive Officer, as adopted December 8, 2011, was filed on February 17, 2012 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement for transferable options for Officers, as adopted on August 12, 2015, was filed on February 24, 2016 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement for transferable options for Officers, as adopted on December 8, 2011, was filed on February 17, 2012 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement for non-transferable options for Non-Officer Employees, as adopted on December 8, 2011, was filed on February 17, 2012 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement, as adopted on February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (U.S), as adopted on September 24, 2018, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (Non-U.S), as adopted on September 24, 2018, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (U.S.), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (non-U.S.), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (U.S., retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (non-U.S., retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (U.S.) as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (non-U.S.) as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (U.S., retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Nonqualified Stock Option Agreement (non-U.S., retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Restricted Share Agreement for Non-Employee Directors (ratable vesting over five years), as adopted on August 12, 2015, was filed on February 24, 2016 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting) entered into with employees after August 12, 2015, as adopted on August 12, 2015, was filed on February 24, 2016 with Form 10-K (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (three year cliff vesting), as adopted on February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting), as adopted on February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (three year cliff vesting), as adopted on September 24, 2018, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting), as adopted on September 24, 2018, was filed on October 30, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (three year cliff vesting), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (three year cliff vesting, retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting, retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (three year cliff vesting), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement five year cliff vesting), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (three year cliff vesting, retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (five year cliff vesting, retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (three year cliff vesting), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (three year cliff vesting, retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Shares Agreement (five year cliff vesting, retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (three year cliff vesting), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (five year cliff vesting, as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (three year cliff vesting, retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Deferred Share Equivalents Agreement (five year cliff vesting, retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Deferred Shares Agreement with Ronald J. Myers, effective as of February 6, 2020 and granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan was filed on May 1, 2020 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Performance-Based Restricted Stock Unit Agreement, as adopted on February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Performance-Based Restricted Stock Unit Agreement, as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Performance-Based Restricted Stock Unit Agreement (retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Performance-Based Restricted Stock Unit Agreement, as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Performance-Based Restricted Stock Unit Agreement (retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement entered into with key employees was filed on May 2, 2012 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement, as adopted on February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement for Nonemployee Directors (annual grant), as adopted February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement for Nonemployee Directors (new member grant), as adopted February 8, 2018, was filed on May 1, 2018 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement, as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement (retirement age 62), as adopted February 7, 2019 and pursuant to the Timken Company 2011 Long-Term Incentive Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement, as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement (retirement age 62), as adopted February 7, 2019 and to be granted pursuant to the Timken Company 2019 Equity and Incentive Compensation Plan, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement for Nonemployee Directors (new member grant), as adopted February 7, 2019, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Time-Based Restricted Stock Unit Agreement for Nonemployee Directors (annual grant), as adopted February 7, 2019, was filed on May 1, 2019 with Form 10-Q (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
Form of Associate Non-Compete Agreement entered into with key employees was filed on December 3, 2012 with Form 10-Q/A (Commission File No. 1-1169) and is incorporated herein by reference. | ||||||||
*Portions of this exhibit have been omitted, which portions will be furnished to the Securities and Exchange Commission upon request. |
Listing of Exhibits (continued) | ||||||||
The Timken Company Short-Term Incentive Plan Global Plan Document for officers and other key employees, amended and restated effective as of January 1, 2021 and pursuant to The Timken Company 2019 Equity and Incentive Compensation Plan. | ||||||||
A list of subsidiaries of the Registrant. | ||||||||
Consent of Independent Registered Public Accounting Firm. | ||||||||
Power of Attorney. | ||||||||
Principal Executive Officer's Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Principal Financial Officer's Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Financial statements from the Annual Report on Form 10-K of The Timken Company for the year ended December 31, 2021, formatted in Inline XBRL: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders' Equity and (vi) the Notes to the Consolidated Financial Statements. | ||||||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
By: /s/ Richard G. Kyle | By: /s/ Philip D. Fracassa | |||||||
Richard G. Kyle | Philip D. Fracassa | |||||||
President, Chief Executive Officer and Director | Executive Vice President and Chief Financial Officer | |||||||
(Principal Executive Officer) | (Principal Financial Officer and Principal Accounting Officer) | |||||||
Date: February 15, 2022 | Date: February 15, 2022 | |||||||
By: /s/ Maria A. Crowe * | By: /s/ Ajita G. Rajendra * | |||||||
Maria A. Crowe, Director | Ajita G. Rajendra, Director | |||||||
Date: February 15, 2022 | Date: February 15, 2022 | |||||||
By: /s/ Elizabeth A. Harrell * | By: /s/ Frank C. Sullivan * | |||||||
Elizabeth A. Harrell | Frank C. Sullivan, Director | |||||||
Date: February 15, 2022 | Date: February 15, 2022 | |||||||
By: /s/ Richard G. Kyle * | By: /s/ John M. Timken, Jr.* | |||||||
Richard G. Kyle, Director | John M. Timken, Jr., Director | |||||||
Date: February 15, 2022 | Date: February 15, 2022 | |||||||
* By: /s/ Sarah C. Lauber | By: /s/ Ward J. Timken, Jr.* | |||||||
Sarah C Lauber | Ward J. Timken, Jr., Director | |||||||
Date: February 15, 2022 | Date: February 15, 2022 | |||||||
By: /s/ Jacqueline F. Woods * | ||||||||
John A. Luke, Jr., Director | Jacqueline F. Woods, Director | |||||||
Date: February 15, 2022 | ||||||||
By: /s/ Christopher L. Mapes * | * By: /s/ Philip D. Fracassa | |||||||
Christopher L. Mapes, Director | Philip D. Fracassa, attorney-in-fact | |||||||
Date: February 15, 2022 | By authority of Power of Attorney | |||||||
filed as Exhibit 24 hereto | ||||||||
By: /s/ James F. Palmer * | Date: February 15, 2022 | |||||||
James F. Palmer, Director | ||||||||
Date: February 15, 2022 | ||||||||
Allowance for uncollectible accounts: | 2021 | 2020 | 2019 | ||||||||
Balance at beginning of period | $ | 16.5 | $ | 18.1 | $ | 21.9 | |||||
Additions: | |||||||||||
Charged to costs and expenses (1) | 3.5 | 2.8 | 1.8 | ||||||||
Deductions: | |||||||||||
Charged to costs and expenses (3) | 2.5 | 3.4 | 4.9 | ||||||||
Charged to other accounts (2) | 0.6 | 1.0 | 0.7 | ||||||||
Balance at end of period | $ | 16.9 | $ | 16.5 | $ | 18.1 | |||||
Allowance for surplus and obsolete inventory: | 2021 | 2020 | 2019 | ||||||||
Balance at beginning of period | $ | 54.5 | $ | 40.1 | $ | 43.2 | |||||
Additions: | |||||||||||
Charged to costs and expenses (4) | 13.4 | 11.6 | 5.2 | ||||||||
Charged to other accounts (2) | (0.7) | 11.8 | 1.9 | ||||||||
Deductions (5) | 3.9 | 9.0 | 10.2 | ||||||||
Balance at end of period | $ | 63.3 | $ | 54.5 | $ | 40.1 | |||||
Valuation allowance on deferred tax assets: | 2021 | 2020 | 2019 | ||||||||
Balance at beginning of period | $ | 36.7 | $ | 33.7 | $ | 77.5 | |||||
Additions: | |||||||||||
Charged to costs and expenses (6) | 3.1 | 2.7 | 1.1 | ||||||||
Charged to other accounts (2) | — | 1.0 | — | ||||||||
Deductions | |||||||||||
Charged to costs and expenses (7) | 7.8 | 0.7 | 44.5 | ||||||||
Charged to other accounts (2) | 1.0 | — | 0.4 | ||||||||
Balance at end of period | $ | 31.0 | $ | 36.7 | $ | 33.7 |
Exhibit 21. Subsidiaries of the Registrant |
Name | State or sovereign power under laws of which organized | Percentage of voting securities owned directly or indirectly by Company | ||||||
United States | ||||||||
AIPCF V Feeder CTP Belt, LLC | Delaware | 100.0% | ||||||
Bearing Inspection, Inc. | California | 100.0% | ||||||
Cone Drive Operations Inc. | Delaware | 100.0% | ||||||
Diamond Chain Company, Inc. | Delaware | 100.0% | ||||||
Diamond Chain China Company Inc. | Delaware | 100.0% | ||||||
Drives Brazil Holdings I, LLC | Delaware | 100.0% | ||||||
Drives Brazil Holdings II, LLC | Delaware | 100.0% | ||||||
Groeneveld Lubrication Solutions Inc. | Ohio | 100.0% | ||||||
Groeneveld USA, Inc. | Ohio | 100.0% | ||||||
Lovejoy, LLC. | Illinois | 100.0% | ||||||
MPB Corporation | Delaware | 100.0% | ||||||
PT Tech, LLC | Ohio | 100.0% | ||||||
Rail Bearing Service LLC | Virginia | 100.0% | ||||||
Rollon Corporation | New Jersey | 100.0% | ||||||
S.E. Setco Service Company, LLC | Georgia | 50.0% | ||||||
The Timken Corporation | Ohio | 100.0% | ||||||
Timken Aerospace Drive Systems, LLC | Delaware | 100.0% | ||||||
Timken Aurora Bearing Company | Illinois | 100.0% | ||||||
Timken Drives LLC | Delaware | 100.0% | ||||||
Timken Gears & Services Inc. | Ohio | 100.0% | ||||||
Timken Holdings LLC | Delaware | 100.0% | ||||||
Timken Industrial Services, LLC | Delaware | 100.0% | ||||||
Timken Mex I LLC | Delaware | 100.0% | ||||||
Timken Mex II LLC | Delaware | 100.0% | ||||||
Timken Motor & Crane Services LLC | Delaware | 100.0% | ||||||
Timken Newco I, LLC | Delaware | 100.0% | ||||||
Timken Newco Corp. | Delaware | 100.0% | ||||||
Timken Receivables Corporation | Delaware | 100.0% | ||||||
Timken Service and Sales, LLC | Ohio | 100.0% | ||||||
Timken SMO LLC | Delaware | 100.0% | ||||||
Timken U.S. Holdings LLC | Delaware | 100.0% | ||||||
Timken US LLC | Delaware | 100.0% | ||||||
Torsion Control Products, Inc. | Michigan | 100.0% | ||||||
International | ||||||||
Apiary Investments Holdings Limited | United Kingdom | 100.0% | ||||||
Australian Timken Proprietary Limited | Australia | 100.0% | ||||||
BEKA – Beteiligungs GmbH | Germany | 100.0% | ||||||
Beka-Lube GmbH | Austria | 100.0% | ||||||
BEKALUBE Czech | Czech Republic | 90.0% | ||||||
Bekalube S.R.L. | Italy | 100.0% |
BEKAWORLD Singapore Pte. Ltd. | Singapore | 100.0% | ||||||
BEKA Japan Co., Ltd. | Japan | 100.0% | ||||||
BEKA Lubrication Systems (Kunshan) Co., Ltd. | China | 100.0% | ||||||
British Timken Limited | United Kingdom | 100.0% | ||||||
Cone Drives Operations Ltd. | United Kingdom | 100.0% | ||||||
Diamond Chain Technology (Suzhou) Co., Ltd. | China | 100.0% | ||||||
Diamond (Weifang) Power Transmission Co., Ltd. | China | 100.0% | ||||||
Diamond Chain (UK) Limited | United Kingdom | 100.0% | ||||||
Gintec Active Safety Ltd. | Israel | 100.0% | ||||||
Greencat GmbH | Germany | 100.0% | ||||||
Greencat Sp. Z.o.o. | Poland | 100.0% | ||||||
Groeneveld-BEKA Belgie NV | Belgium | 100.0% | ||||||
Groeneveld-BEKA Canada Inc. | Canada | 100.0% | ||||||
Groeneveld-BEKA France S.A.R.L. | France | 100.0% | ||||||
Groeneveld-BEKA GmbH | Germany | 100.0% | ||||||
Groeneveld-BEKA Iberica S.A. | Spain | 100.0% | ||||||
Groeneveld-Beka Limited | New Zealand | 100.0% | ||||||
Groeneveld-Beka Pty Ltd. | Australia | 100.0% | ||||||
Groeneveld Groep B.V. | Netherlands | 100.0% | ||||||
Groeneveld Groep Nederland B.V. | Netherlands | 100.0% | ||||||
Groeneveld Immobiliare S.r.l. | Italy | 100.0% | ||||||
Groeneveld Italia S.r.l. | Italy | 100.0% | ||||||
Groeneveld Latin America Ltda | Chile | 100.0% | ||||||
Groeneveld Lubrication Solutions Ltd. | United Kingdom | 100.0% | ||||||
Groeneveld Polska Sp Z.o.o. | Poland | 100.0% | ||||||
Groeneveld Pte. Ltd. | Singapore | 100.0% | ||||||
Groeneveld Solucoes Em Lubrificacao Ltd. | Brazil | 100.0% | ||||||
Groeneveld South Africa Pty Ltd. | South Africa | 100.0% | ||||||
Groeneveld s.r.o | Czech Republic | 100.0% | ||||||
Groeneveld Trading (Shanghai) Co. Ltd. | China | 100.0% | ||||||
Groeneveld Transport Efficiency B.V. | Netherlands | 100.0% | ||||||
Groeneveld Transport Efficiency International Holding B.V. | Netherlands | 100.0% | ||||||
Groeneveld UK Limited | United Kingdom | 100.0% | ||||||
Interlube UK Limited | United Kingdom | 100.0% | ||||||
Jiangsu TWB Bearings Co., Ltd. | China | 100.0% | ||||||
Jiangyin Huafang New Energy Hi-Tech Equipment Co., Ltd. | China | 100.0% | ||||||
MAW-Maschinenfabrik Wannberg GmbH | Germany | 100.0% | ||||||
PT Tech Europe, Ltd. | Northern Ireland | 100.0% | ||||||
R+L Hydraulics GmbH | Germany | 100.0% | ||||||
Rollon GmbH | Germany | 100.0% | ||||||
Rollon India Pvt. Ltd. | India | 100.0% | ||||||
Rollon Japan KK | Japan | 100.0% | ||||||
Rollon S.a.r.l. | France | 100.0% | ||||||
Rollon S.p.A. | Italy | 100.0% | ||||||
Rollon (Suzhou) Manufacturing Co., Ltd. | China | 100.0% | ||||||
Rollon Ltd. UK Limited | United Kingdom | 100.0% | ||||||
Timken (Canada) Holdings II ULC | Canada | 100.0% | ||||||
Timken (Canada) Holdings III ULC | Canada | 100.0% | ||||||
Timken (Chengdu) Aerospace and Precision Products Co., Ltd. | China | 100.0% | ||||||
Timken (China) Investment Co., Ltd. | China | 100.0% | ||||||
Timken (Hong Kong) Holding Limited | Hong Kong | 100.0% | ||||||
Timken (Hunan) Bearing Co., Ltd. | China | 100.0% | ||||||
Timken (Shanghai) Distribution and Sales Co., Ltd. | China | 100.0% | ||||||
Timken (Wuxi) Bearings Co., Ltd. | China | 100.0% | ||||||
Timken Argentina Sociedad De Responsabilidad Limitada | Argentina | 100.0% |
Timken Australia Holdings ULC | Canada | 100.0% | ||||||
Timken Canada GP ULC | Canada | 100.0% | ||||||
Timken Canada LP | Canada | 100.0% | ||||||
Timken Chile S.p.A. | Chile | 100.0% | ||||||
Timken Colombia SAS | Columbia | 100.0% | ||||||
Timken De Mexico, S.A. De C.V. | Mexico | 100.0% | ||||||
Timken Do Brasil Comercial Importadora LTDA. | Brazil | 100.0% | ||||||
Timken Egypt LLC | Egypt | 100.0% | ||||||
Timken Engineering and Research - India Private Limited | India | 100.0% | ||||||
Timken Espana, S.L. | Spain | 100.0% | ||||||
Timken Europe B.V. | Netherlands | 100.0% | ||||||
Timken Global Treasury SARL | Luxembourg | 100.0% | ||||||
Timken GmbH | Germany | 100.0% | ||||||
Timken India Limited | India | 67.8% | ||||||
Timken Italia S.r.l. | Italy | 100.0% | ||||||
Timken Italy Holding S.r.l. | Italy | 100.0% | ||||||
Timken Korea Limited Liability Corporation | South Korea | 100.0% | ||||||
Timken Lux Holdings II S.A R.L. | Luxembourg | 100.0% | ||||||
Timken Luxembourg Holdings SARL | Luxembourg | 100.0% | ||||||
Timken Mex Holdings SARL | Luxembourg | 100.0% | ||||||
Timken Mexico Rodamientos S. de R.L. de C.V. | Mexico | 100.0% | ||||||
Timken Middle East FZE | Dubai | 100.0% | ||||||
Timken Netherlands B.V. | Netherlands | 100.0% | ||||||
Timken Netherlands Holdings B.V. | Netherlands | 100.0% | ||||||
Timken Polska SP z.o.o. | Poland | 100.0% | ||||||
Timken PWP S.R.L. | Romania | 100.0% | ||||||
Timken Representative Office Nigeria Limited | Nigeria | 100.0% | ||||||
Timken Romania SA | Romania | 98.9% | ||||||
Timken Rulman ve Guc Aktarma Sistemleri Ticaret Limited Sirketi | Turkey | 100.0% | ||||||
Timken-Rus Service Company, ooo | Russia | 100.0% | ||||||
Timken Singapore PTE Ltd. | Singapore | 100.0% | ||||||
Timken South Africa Holdings Pty Ltd. | South Africa | 100.0% | ||||||
Timken South Africa (PTY) Limited | South Africa | 100.0% | ||||||
Timken UK Limited | United Kingdom | 100.0% | ||||||
Timken UWC LLC | Russia | 51.0% | ||||||
TUBC Limited | Cyprus | 51.0% | ||||||
TTC Asia Limited | Cayman Islands | 100.0% | ||||||
Yantai Timken Co., Ltd. | China | 100.0% |
/s/ Phillip D. Fracassa | /s/ James F. Palmer | |||||||
Phillip D. Fracassa | James F. Palmer | |||||||
(Principal Financial Officer and Principal Accounting Officer) | ||||||||
/s/ Richard G. Kyle | /s/ Ajita G. Rajendra | |||||||
Richard G. Kyle | Ajita G. Rajendra | |||||||
(Principal Executive Officer) | ||||||||
/s/ Maria A. Crowe | /s/ Frank C. Sullivan | |||||||
Maria A. Crowe | Frank C. Sullivan | |||||||
/s/ Elizabeth A. Harrell | /s/ John M. Timken, Jr. | |||||||
Elizabeth A. Harrell | John M. Timken, Jr. | |||||||
/s/ Sarah C. Lauber | /s/ Ward J. Timken, Jr. | |||||||
Sarah C. Lauber | Ward J. Timken, Jr. | |||||||
/s/ Jacqueline F. Woods | ||||||||
John A. Luke, Jr. | Jacqueline F. Woods | |||||||
/s/ Christopher L. Mapes | ||||||||
Christopher L. Mapes | ||||||||
By: /s/ Richard G. Kyle | |||||
Richard G. Kyle President and Chief Executive Officer (Principal Executive Officer) |
By: /s/ Philip D. Fracassa | |||||
Philip D. Fracassa Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
By: /s/ Richard G. Kyle | |||||
Richard G. Kyle President and Chief Executive Officer (Principal Executive Officer) |
By: /s/ Philip D. Fracassa | |||||
Philip D. Fracassa Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |