þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 34-0577130 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
1835 Dueber Avenue, S.W., Canton, Ohio | 44706 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common Stock, without par value | New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o |
Non-accelerated filer
o
(Do not check if a smaller reporting company) |
Smaller reporting company o |
Class | Outstanding at January 31, 2010 | |
Common Shares, without par value | 96,902,886 shares |
Document | Parts Into Which Incorporated | |
Proxy Statement for the Annual Meeting of
Shareholders to be held May 11, 2010 (Proxy
Statement)
|
Part III |
PAGE | ||||||||
I. | PART I. |
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Item 1. | 1 | |||||||
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Item 1A. | 8 | |||||||
Item 1B. | 13 | |||||||
Item 2. | 14 | |||||||
Item 3. | 14 | |||||||
Item 4. | 14 | |||||||
Item 4A. | 15 | |||||||
II. | PART II. |
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Item 5. | 16 | |||||||
Item 6. | 19 | |||||||
Item 7. | 20 | |||||||
Item 7A. | 51 | |||||||
Item 8. | 52 | |||||||
Item 9. | 93 | |||||||
Item 9A. | 93 | |||||||
Item 9B. | 95 | |||||||
III. | Part III. |
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Item 10. | 95 | |||||||
Item 11. | 95 | |||||||
Item 12. | 95 | |||||||
Item 13. | 95 | |||||||
Item 14. | 95 | |||||||
IV. | Part IV. |
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Item 15. | 96 | |||||||
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EX-4.9 | ||||||||
EX-10.1 | ||||||||
EX-10.2 | ||||||||
EX-10.3 | ||||||||
EX-10.4 | ||||||||
EX-10.6 | ||||||||
EX-10.21 | ||||||||
EX-12 | ||||||||
EX-21 | ||||||||
EX-23 | ||||||||
EX-24 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32 |
1
United States | Europe | Other Countries | Consolidated | |||||||||||||
2009
|
||||||||||||||||
Net sales
|
$ | 1,943,229 | $ | 536,182 | $ | 662,216 | $ | 3,141,627 | ||||||||
Long-lived assets
|
976,427 | 117,230 | 241,571 | 1,335,228 | ||||||||||||
|
||||||||||||||||
2008
|
||||||||||||||||
Net sales
|
$ | 3,339,381 | $ | 852,319 | $ | 849,100 | $ | 5,040,800 | ||||||||
Long-lived assets
|
1,140,289 | 149,481 | 227,202 | 1,516,972 | ||||||||||||
|
||||||||||||||||
2007
|
||||||||||||||||
Net sales
|
$ | 3,174,035 | $ | 736,424 | $ | 621,607 | $ | 4,532,066 | ||||||||
Long-lived assets
|
1,095,622 | 166,452 | 190,767 | 1,452,841 | ||||||||||||
2
3
4
5
6
7
8
9
10
11
12
13
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Table of Contents
changes in tariff regulations, which may make our products more costly to export or import;
difficulties establishing and maintaining relationships with local OEMs, distributors and dealers;
import and export licensing requirements;
compliance with a variety of foreign laws and regulations, including unexpected changes in
taxation and environmental or other regulatory requirements, which could increase our operating
and other expenses and limit our operations;
difficulty in staffing and managing geographically diverse operations; and
tax exposures related to cross-border intercompany transfer pricing and other tax risks unique to
international operations.
Table of Contents
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further reducing or delaying capital expenditures;
seeking additional debt financing or equity capital, possibly at a higher cost to us
or have other terms that are less attractive to us than would otherwise be the case;
selling assets;
restructuring or refinancing debt, which may increase further our financing costs; or
curtailing or eliminating certain activities.
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14
15
Table of Contents
Name
Age
Current Position and Previous Positions During Last Five Years
42
2005
Chairman of the Board
56
2002
President and Chief Executive Officer; Director
53
2000
President Industrial Group
2007
Executive Vice President and President Bearings & Power Transmission
44
2000
Senior Vice President and General Counsel
48
2002
Executive Vice President Finance and Administration
55
2000
Controller, Industrial Group
2006
Senior Vice President and Controller
59
2005
President Steel Group
Table of Contents
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
2009
2008
Stock prices
Dividends
Stock prices
Dividends
High
Low
per share
High
Low
per share
$
20.98
$
9.88
$
0.18
$
33.16
$
25.82
$
0.17
$
19.46
$
12.53
$
0.09
$
38.74
$
29.52
$
0.17
$
24.85
$
16.10
$
0.09
$
37.46
$
24.22
$
0.18
$
26.12
$
20.84
$
0.09
$
28.73
$
10.96
$
0.18
Table of Contents
2005
2006
2007
2008
2009
$
125.76
$
116.92
$
134.43
$
82.78
$
102.76
104.91
121.48
128.15
80.74
102.11
151.35
199.64
200.19
95.18
149.99
Table of Contents
Total number
Maximum
of shares
number of
purchased as
shares that
part of publicly
may yet
Total number
Average
announced
be purchased
of shares
price paid
plans or
under the plans
Period
purchased
(1)
per share
(2)
programs
or programs
(3)
376
$
23.17
4,000,000
1,554
23.19
4,000,000
177
24.91
4,000,000
2,107
$
23.33
4,000,000
(1)
Represents shares of the Companys common stock that are owned and tendered by
employees to satisfy tax withholding obligations in connection with the vesting of restricted
shares and the exercise of stock options.
(2)
For restricted shares, the average price paid per share is calculated using the
daily high and low of the Companys common stock as quoted on the New York Stock Exchange at
the time of vesting. For stock options, price paid is the real trading stock price at the
time the options are exercised.
(3)
Pursuant to the Companys 2006 common stock purchase plan, the Company may purchase
up to four million shares of common stock at an amount not to exceed $180 million in the
aggregate. The Company may purchase shares under its 2006 common stock purchase plan until
December 31, 2012. The Company may purchase shares from time to time in open market purchases or privately negotiated transactions. The Company may make all or part of the purchases pursuant to
accelerated share repurchases or Rule 1065-1 plans.
Table of Contents
2009
2008
2007
2006
2005
(Dollars in thousands, except per share data)
$
3,141,627
$
5,040,800
$
4,532,066
$
4,276,394
$
4,105,399
582,747
1,151,853
954,983
893,223
883,020
472,732
657,131
631,162
611,184
580,148
164,126
32,783
28,405
30,947
10,114
528
64,271
(54,111
)
461,939
294,888
186,821
292,758
(140
)
16,257
5,146
65,378
63,685
39,979
44,401
42,314
49,037
51,299
(66,037
)
282,525
210,714
146,157
208,639
(72,589
)
(11,273
)
12,942
79,712
51,642
$
(133,961
)
$
267,670
$
220,054
$
222,527
$
260,281
$
671,236
$
1,000,493
$
935,953
$
789,522
$
761,270
1,335,228
1,516,972
1,430,515
1,288,952
1,271,862
4,006,893
4,536,050
4,379,237
4,027,111
3,993,734
26,345
91,482
108,370
40,217
63,030
17,035
17,108
33,953
9,908
95,842
469,287
515,250
580,585
547,353
561,653
512,667
623,840
722,908
597,478
720,525
512,667
623,840
722,908
597,478
720,525
(755,545
)
(133,383
)
(42,884
)
(107,888
)
(65,417
)
(242,878
)
490,457
680,024
489,590
655,108
2,411,325
2,873,012
2,426,108
2,520,988
2,496,667
$
1,595,568
$
1,663,038
$
1,933,862
$
1,488,862
$
1,497,067
(242,878
)
490,457
680,024
489,590
655,108
1,595,568
1,663,038
1,933,862
1,488,862
1,497,067
1,352,690
2,153,495
2,613,886
1,978,452
2,152,175
(2.1
)%
5.6
%
4.6
%
3.4
%
5.1
%
(4.3
)%
5.3
%
4.9
%
5.2
%
6.3
%
(4.1
)%
17.0
%
10.9
%
9.8
%
13.9
%
$
168.8
$
244.3
$
216.0
$
191.6
$
350.8
$
114,150
$
258,147
$
289,784
$
247,806
$
201,459
$
201,486
$
200,799
$
187,918
$
149,709
$
186,795
3.6
%
5.1
%
6.4
%
5.8
%
4.9
%
$
0.45
$
0.70
$
0.66
$
0.62
$
0.60
$
(0.64
)
$
2.90
$
2.17
$
1.52
$
2.25
$
(0.64
)
$
2.89
$
2.16
$
1.51
$
2.22
$
(1.39
)
$
2.78
$
2.31
$
2.37
$
2.83
$
(1.39
)
$
2.77
$
2.29
$
2.35
$
2.81
(18.0
)%
22.8
%
26.0
%
24.7
%
30.4
%
16,667
20,550
20,720
21,235
23,408
27,127
47,742
49,012
42,608
54,514
(1)
The Company presents net debt because it believes net debt is more representative of the Companys indicative financial position
due to temporary changes in cash and cash equivalents.
(2)
Return on equity is defined as income from continuing operations divided by ending shareholders equity.
(3)
Based on average number of employees employed during the year.
(4)
Based on average number of shares outstanding during the year.
(5)
Based on average number of shares outstanding during the year and includes discontinued operations for all periods presented.
(6)
Adjusted to exclude NRB and Latrobe Steel for all periods.
(7)
Includes an estimated count of shareholders having common stock held for their accounts by banks, brokers and trustees for benefit plans.
Table of Contents
Table of Contents
2009
2008
$ Change
% Change
$
3,141.6
$
5,040.8
$
(1,899.2
)
(37.7
)%
(66.1
)
282.6
(348.7
)
(123.4
)%
(72.6
)
(11.3
)
(61.3
)
NM
(4.7
)
3.6
(8.3
)
(230.6
)%
(134.0
)
267.7
(401.7
)
(150.1
)%
$
(0.64
)
$
2.89
$
(3.53
)
(122.1
)%
(0.75
)
(0.12
)
(0.63
)
NM
$
(1.39
)
$
2.77
$
(4.16
)
(150.2
)%
96,135,783
95,947,643
0.2
%
Table of Contents
2009
2008
$ Change
% Change
$
1,245.0
$
1,771.8
$
(526.8
)
(29.7
)%
806.0
1,163.0
(357.0
)
(30.7
)%
417.7
412.0
5.7
1.4
%
672.9
1,694.0
(1,021.1
)
(60.3
)%
$
3,141.6
$
5,040.8
$
(1,899.2
)
(37.7
)%
2009
2008
$ Change
Change
$
582.7
$
1,151.9
$
(569.2
)
(49.4
)%
18.5
%
22.9
%
(440
) bps
$
8.2
$
3.4
$
4.8
141.2
%
2009
2008
$ Change
Change
$
472.7
$
657.1
$
(184.4
)
(28.1
)%
15.0
%
13.0
%
200
bps
$
2.9
$
1.5
$
1.4
93.3
%
Table of Contents
2009
2008
$ Change
$
107.6
$
20.1
$
87.5
52.8
8.7
44.1
3.7
4.0
(0.3
)
$
164.1
$
32.8
$
131.3
Table of Contents
Table of Contents
2009
2008
$
17.0
$
19.0
55.6
12.7
(38.6
)
(14.7
)
$
34.0
$
17.0
2009
2008
$ Change
% Change
$
41.9
$
44.4
$
(2.5
)
(5.6
)%
$
1.9
$
5.8
$
(3.9
)
(67.2
)%
2009
2008
$ Change
% Change
$
3.6
$
9.1
$
(5.5
)
(60.4
)%
$
0.5
$
19.5
$
(19.0
)
(97.4
)%
(6.1
)
(6.1
)
NM
(0.4
)
0.4
100.0
%
1.9
(11.9
)
13.8
116.0
%
$
(3.7
)
$
7.2
$
(10.9
)
(151.4
)%
Table of Contents
Table of Contents
2009
2008
$ Change
% Change
$
(4.7
)
$
3.6
$
(8.3
)
(230.6
)%
2009
2008
$ Change
Change
$
1,245.0
$
1,771.9
$
(526.9
)
(29.7
)%
$
30.5
$
35.8
$
(5.3
)
(14.8
)%
2.4
%
2.0
%
40
bps
2009
2008
$ Change
Change
$
1,245.0
$
1,771.9
$
(526.9
)
(29.7
)%
(56.8
)
(56.8
)
NM
$
1,301.8
$
1,771.9
$
(470.1
)
(26.5
)%
Table of Contents
2009
2008
$ Change
Change
$
808.7
$
1,166.2
$
(357.5
)
(30.7
)%
$
118.5
$
218.7
$
(100.2
)
(45.8
)%
14.7
%
18.8
%
(410
) bps
2009
2008
$ Change
Change
$
808.7
$
1,166.2
$
(357.5
)
(30.7
)%
(27.5
)
(27.5
)
NM
$
836.2
$
1,166.2
$
(330.0
)
(28.3
)%
Table of Contents
2009
2008
$ Change
Change
$
417.7
$
412.0
$
5.7
1.4
%
$
72.4
$
41.5
$
30.9
74.5
%
17.3
%
10.1
%
720
bps
2009
2008
$ Change
Change
$
417.7
$
412.0
$
5.7
1.4
%
10.0
10.0
NM
(2.6
)
(2.6
)
NM
$
410.3
$
412.0
$
(1.7
)
(0.4
)%
2009
2008
$ Change
Change
$
714.9
$
1,852.0
$
(1,137.1
)
(61.4
)%
$
(57.9
)
$
264.0
$
(321.9
)
(121.9
)%
(8.1
)%
14.3
%
(2,240
) bps
Table of Contents
2009
2008
$ Change
Change
$
714.9
$
1,852.0
$
(1,137.1
)
(61.4
)%
7.5
7.5
NM
(5.1
)
(5.1
)
NM
$
712.5
$
1,852.0
$
(1,139.5
)
(61.5
)%
2009
2008
$ Change
Change
$
48.7
$
68.4
$
(19.7
)
(28.8
)%
1.6
%
1.4
%
20
bps
Table of Contents
2008
2007
$ Change
% Change
$
5,040.8
$
4,532.1
$
508.7
11.2
%
282.6
210.7
71.9
34.1
%
(11.3
)
12.9
(24.2
)
(187.6
)%
3.6
3.6
0.0
%
267.7
220.0
47.7
21.7
%
$
2.89
$
2.16
$
0.73
33.8
%
(0.12
)
0.13
(0.25
)
(192.3
)%
$
2.77
$
2.29
$
0.48
21.0
%
95,947,643
95,612,235
0.4
%
2008
2007
$ Change
% Change
$
1,771.8
$
1,838.4
$
(66.6
)
(3.6
)%
1,163.0
980.9
182.1
18.6
%
412.0
297.7
114.3
38.4
%
1,694.0
1,415.1
278.9
19.7
%
$
5,040.8
$
4,532.1
$
508.7
11.2
%
Table of Contents
2008
2007
$ Change
Change
$
1,151.9
$
955.0
$
196.9
20.6
%
22.9
%
21.1
%
180
bps
$
3.4
$
18.5
$
(15.1
)
(81.6
)%
2008
2007
$ Change
Change
$
657.1
$
631.2
$
25.9
4.1
%
13.0
%
13.9
%
(90
) bps
$
1.5
$
2.5
$
(1.0
)
(40.0
)%
Table of Contents
2008
2007
$ Change
$
20.1
$
4.9
$
15.2
8.7
18.5
(9.8
)
4.0
5.0
(1.0
)
$
32.8
$
28.4
$
4.4
Table of Contents
2008
2007
$ Change
$
$
0.5
$
(0.5
)
2008
2007
$ Change
% Change
$
44.4
$
42.3
$
2.1
5.0
%
$
5.8
$
6.9
$
(1.1
)
(15.9
)%
2008
2007
$ Change
% Change
$
9.1
$
6.5
$
2.6
40.0
%
$
19.5
$
6.2
$
13.3
214.5
%
(0.4
)
0.4
(0.8
)
(200.0
)%
(11.9
)
(8.0
)
(3.9
)
(48.8
)%
$
7.2
$
(1.4
)
$
8.6
NM
Table of Contents
2008
2007
$ Change
Change
$
157.1
$
53.9
$
103.2
191.5
%
35.7
%
20.4
%
1,530
bps
2008
2007
$ Change
% Change
$
(11.3
)
$
12.2
$
(23.5
)
(192.6
)%
0.7
(0.7
)
(100.0
)%
$
(11.3
)
$
12.9
$
(24.2
)
(187.6
)%
2008
2007
$ Change
% Change
$
3.6
$
3.6
$
0.0
%
2008
2007
$ Change
Change
$
1,771.9
$
1,838.4
$
(66.5
)
(3.6
)%
$
35.8
$
28.0
$
7.8
27.9
%
2.0
%
1.5
%
50
bps
Table of Contents
2008
2007
$ Change
Change
$
1,771.9
$
1,838.4
$
(66.5
)
(3.6
)%
23.5
23.5
NM
$
1,748.4
$
1,838.4
$
(90.0
)
(4.9
)%
2008
2007
$ Change
Change
$
1,166.2
$
982.7
$
183.5
18.7
%
$
218.7
$
125.8
$
92.9
73.8
%
18.8
%
12.8
%
600
bps
2008
2007
$ Change
Change
$
1,166.2
$
982.7
$
183.5
18.7
%
19.2
19.2
NM
$
1,147.0
$
982.7
$
164.3
16.7
%
Table of Contents
2008
2007
$ Change
Change
$
412.0
$
297.7
$
114.3
38.4
%
$
41.5
$
18.0
$
23.5
130.6
%
10.1
%
6.0
%
410
bps
2008
2007
$ Change
Change
$
412.0
$
297.7
$
114.3
38.4
%
69.8
69.8
NM
0.8
0.8
NM
$
341.4
$
297.7
$
43.7
14.7
%
2008
2007
$ Change
Change
$
1,852.0
$
1,561.6
$
290.4
18.6
%
$
264.0
$
231.2
$
32.8
14.2
%
14.3
%
14.8
%
(50
) bps
Table of Contents
2008
2007
$ Change
Change
$
1,852.0
$
1,561.6
$
290.4
18.6
%
46.0
46.0
NM
(42.6
)
(42.6
)
NM
0.2
0.2
NM
$
1,848.4
$
1,561.6
$
286.8
18.4
%
2008
2007
$ Change
Change
$
68.4
$
65.9
$
2.5
3.8
%
1.4
%
1.5
%
(10
) bps
Table of Contents
December 31,
2009
2008
$ Change
% Change
$
755.5
$
133.4
$
622.1
NM
411.2
575.9
(164.7
)
(28.6
)%
671.2
1,000.5
(329.3
)
(32.9
)%
61.5
83.4
(21.9
)
(26.3
)%
11.8
9.7
2.1
21.6
%
182.9
(182.9
)
(100.0
)%
111.3
47.7
63.6
133.3
%
$
2,022.5
$
2,033.5
$
(11.0
)
(0.5
)%
December 31,
2009
2008
$ Change
% Change
$
3,398.1
$
3,592.1
$
(194.0
)
(5.4
)%
(2,062.9
)
(2,075.1
)
(12.2
)
0.6
%
$
1,335.2
$
1,517.0
$
(181.8
)
(12.0
)%
Table of Contents
December 31,
2009
2008
$ Change
% Change
$
221.7
$
221.4
$
0.3
0.1
%
132.1
140.9
(8.8
)
(6.2
)%
248.6
315.0
(66.4
)
(21.1
)%
269.6
(269.6
)
(100.0
)%
46.8
38.7
8.1
20.9
%
$
649.2
$
985.6
$
(336.4
)
(34.1
)%
December 31,
2009
2008
$ Change
% Change
$
26.3
$
91.5
$
(65.2
)
(71.3
)%
355.2
423.5
(68.3
)
(16.1
)%
132.6
217.1
(84.5
)
(38.9
)%
22.5
(22.5
)
(100.0
)%
9.2
5.1
4.1
80.4
%
21.5
(21.5
)
(100.0
)%
17.1
17.1
0.0
%
$
540.4
$
798.3
$
(257.9
)
(32.3
)%
December 31,
2009
2008
$ Change
% Change
$
469.3
$
515.3
$
(46.0
)
(8.9
)%
690.9
830.0
(139.1
)
(16.8
)%
604.2
613.0
(8.8
)
(1.4
)%
6.1
8.5
(2.4
)
(28.2
)%
23.9
(23.9
)
(100.0
)%
100.4
84.0
16.4
19.5
%
$
1,870.9
$
2,074.7
$
(203.8
)
(9.8
)%
Table of Contents
December 31,
2009
2008
$ Change
% Change
$
896.5
$
891.4
$
5.1
0.6
%
1,402.9
1,580.1
(177.2
)
(11.2
)%
(717.1
)
(819.6
)
102.5
12.5
%
(4.7
)
(11.6
)
6.9
59.5
%
18.0
22.8
(4.8
)
(21.1
)%
$
1,595.6
$
1,663.1
$
(67.5
)
(4.1
)%
December 31,
2009
2008
$ Change
$
587.7
$
577.6
$
10.1
194.3
(320.7
)
515.0
(178.1
)
(145.9
)
(32.2
)
18.3
(20.5
)
38.8
$
622.2
$
90.5
$
531.7
Table of Contents
December 31,
2009
2008
$
26.3
$
91.5
17.1
17.1
469.3
515.3
512.7
623.9
(755.5
)
(133.4
)
$
(242.8
)
$
490.5
December 31,
2009
2008
$
(242.8
)
$
490.5
1,595.6
1,663.1
$
1,352.8
$
2,153.6
(17.9
)%
22.8
%
Table of Contents
Table of Contents
Less than
More than
Contractual Obligations
Total
1 Year
1-3 Years
3-5 Years
5 Years
$
235.7
$
13.4
$
25.4
$
25.2
$
171.7
486.4
17.0
0.7
255.0
213.7
26.3
26.3
145.3
31.6
44.0
32.5
37.2
2,455.9
231.6
474.3
485.6
1,264.4
$
3,349.6
$
319.9
$
544.4
$
798.3
$
1,687.0
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
a)
continued weakness in world economic conditions, including additional
adverse effects from the global economic slowdown, terrorism or
hostilities. This includes, but is not limited to, political risks
associated with the potential instability of governments and legal
systems in countries in which the Company or its customers conduct
business, and changes in currency valuations;
b)
the effects of fluctuations in customer demand on sales, product mix and
prices in the industries in which the Company operates. This includes
the ability of the Company to respond to the rapid changes in customer
demand, the effects of customer bankruptcies or liquidations, the impact
of changes in industrial business cycles and whether conditions of fair
trade continue in the U.S. markets;
c)
competitive factors, including changes in market penetration, increasing
price competition by existing or new foreign and domestic competitors,
the introduction of new products by existing and new competitors and new
technology that may impact the way the Companys products are sold or
distributed;
d)
changes in operating costs. This includes: the effect of changes in the
Companys manufacturing processes; changes in costs associated with
varying levels of operations and manufacturing capacity; higher cost and
availability of raw materials and energy; the Companys ability to
mitigate the impact of fluctuations in raw materials and energy costs
and the operation of the Companys surcharge mechanism; changes in the
expected costs associated with product warranty claims; changes
resulting from inventory management and cost reduction initiatives and
different levels of customer demands; the effects of unplanned work
stoppages; and changes in the cost of labor and benefits;
e)
the success of the Companys operating plans, including its ability to
achieve the benefits from its ongoing continuous improvement and
rationalization programs; the ability of acquired companies to achieve
satisfactory operating results; and the Companys ability to maintain
appropriate relations with unions that represent Company employees in
certain locations in order to avoid disruptions of business;
f)
unanticipated litigation, claims or assessments. This includes, but is
not limited to, claims or problems related to intellectual property,
product liability or warranty, environmental issues, and taxes;
g)
changes in worldwide financial markets, including availability of
financing and interest rates to the extent they affect the Companys
ability to raise capital or increase the Companys cost of funds,
including the ability to refinance its unsecured notes, have an impact
on the overall performance of the Companys pension fund investments
and/or cause changes in the global economy and financial markets which
affect customer demand and the ability of customers to obtain financing
to purchase the Companys products or equipment which contains the
Companys products; and
h)
those items identified under Item 1A. Risk Factors on pages 8 through 13.
Table of Contents
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Table of Contents
Year Ended December 31,
(Dollars in thousands, except per share data)
2009
2008
2007
$
3,141,627
$
5,040,800
$
4,532,066
2,558,880
3,888,947
3,577,083
582,747
1,151,853
954,983
472,732
657,131
631,162
164,126
32,783
28,405
528
(54,111
)
461,939
294,888
(41,883
)
(44,401
)
(42,314
)
1,904
5,792
6,936
3,602
9,136
6,449
(3,742
)
7,121
(1,303
)
(94,230
)
439,587
264,656
(28,193
)
157,062
53,942
(66,037
)
282,525
210,714
(72,589
)
(11,273
)
12,942
(138,626
)
271,252
223,656
(4,665
)
3,582
3,602
$
(133,961
)
$
267,670
$
220,054
$
(61,372
)
$
278,943
$
207,112
(72,589
)
(11,273
)
12,942
$
(133,961
)
$
267,670
$
220,054
$
(0.64
)
$
2.90
$
2.17
(0.75
)
(0.12
)
0.14
$
(1.39
)
$
2.78
$
2.31
$
(0.64
)
$
2.89
$
2.16
(0.75
)
(0.12
)
0.13
$
(1.39
)
$
2.77
$
2.29
$
0.45
$
0.70
$
0.66
Table of Contents
Table of Contents
Year Ended December 31,
(Dollars in thousands)
2009
2008
2007
$
(133,961
)
$
267,670
$
220,054
72,589
11,273
(12,942
)
(4,665
)
3,582
3,602
201,486
200,799
187,918
113,671
20,081
11,738
6,765
(15,170
)
5,748
22,761
1,877
11,056
14,928
16,800
16,127
96,699
84,722
119,344
(113,463
)
(70,459
)
(151,356
)
174,481
107,601
(15,812
)
356,155
(97,679
)
(57,867
)
(204,700
)
(22,238
)
(20,374
)
(2,709
)
(8,004
)
(52,467
)
600,037
500,855
264,769
(12,379
)
76,764
77,144
587,658
577,619
341,913
(114,150
)
(258,147
)
(289,784
)
(353
)
(86,024
)
(204,422
)
2,605
36,427
20,581
303,617
698
4,905
517
(118
)
196,624
(307,227
)
(473,045
)
(2,353
)
(13,468
)
(23,526
)
194,271
(320,695
)
(496,571
)
(43,268
)
(67,462
)
(62,966
)
934
16,909
37,804
225,000
(225,000
)
254,950
810,353
286,403
(10,820
)
(305,661
)
(884,082
)
(240,643
)
(74,167
)
(21,639
)
58,481
(178,032
)
(145,921
)
79,079
18,265
(20,504
)
10,575
622,162
90,499
(65,004
)
133,383
42,884
107,888
$
755,545
$
133,383
$
42,884
Table of Contents
Common Stock
Earnings
Accumulated
Other
Invested
Other
Non-
Stated
Paid-In
in the
Comprehensive
Treasury
controlling
(Dollars in thousands, except per share data)
Total
Capital
Capital
Business
Loss
Stock
Interest
$
1,493,441
$
53,064
$
753,095
$
1,217,167
$
(544,562
)
$
(2,584
)
$
17,261
223,656
220,054
3,602
95,690
95,690
177,083
177,083
538
538
496,967
(1,596
)
(1,596
)
5,621
5,621
(62,966
)
(62,966
)
5,830
5,830
(8,160
)
35
(8,195
)
50,799
50,799
$
1,979,936
$
53,064
$
809,759
$
1,379,876
$
(271,251
)
$
(10,779
)
$
19,267
271,252
267,670
3,582
(149,873
)
(149,873
)
(397,577
)
(397,577
)
264
211
53
(1,143
)
(1,143
)
(277,077
)
1,600
1,600
(1,708
)
(1,708
)
(67,462
)
(67,462
)
4,466
4,466
(493
)
314
(807
)
23,776
23,776
$
1,663,038
$
53,064
$
838,315
$
1,580,084
$
(819,633
)
$
(11,586
)
$
22,794
(138,626
)
(133,961
)
(4,665
)
39,740
39,740
62,009
62,044
(35
)
9
7
2
729
729
(36,139
)
1,000
1,000
(1,112
)
(1,112
)
(43,268
)
(43,268
)
(1,577
)
(1,577
)
11,630
4,742
6,888
1,996
1,996
$
1,595,568
$
53,064
$
843,476
$
1,402,855
$
(717,113
)
$
(4,698
)
$
17,984
(1)
Share activity was in conjunction with employee benefit and stock option plans.
Table of Contents
December 31,
2009
2008
$
53,022
$
71,756
269,075
413,273
349,139
515,464
$
671,236
$
1,000,493
Table of Contents
December 31,
2009
2008
$
611,670
$
606,255
2,786,444
2,985,799
3,398,114
3,592,054
(2,062,886
)
(2,075,082
)
$
1,335,228
$
1,516,972
Table of Contents
Table of Contents
Table of Contents
2009
2008
2007
$
$
11,447
$
13,167
13,083
48,304
1,266
120
317
12,766
19,709
353
24,669
57,636
28,502
66,310
$
353
$
90,587
$
206,709
$
$
4,563
$
1,648
415
219
5
4,563
2,287
$
353
$
86,024
$
204,422
Table of Contents
2009
2008
2007
$
406,731
$
622,860
$
703,954
376,356
533,244
605,103
30,375
89,616
98,851
59,304
67,856
64,121
52,568
31,593
11,973
154
353
261
(1,743
)
(222
)
(1,293
)
(83,394
)
(10,408
)
21,203
23,456
(865
)
(8,927
)
(19,894
)
1,098
7,243
(432
)
$
(72,589
)
$
(11,273
)
$
12,942
Table of Contents
2008
$
27,943
145,201
1,396
2,782
226,895
8,614
32,806
6,849
$
452,486
$
19,907
1,605
14,026
1,848
7,986
$
45,372
2009
2008
2007
$
(61,372
)
$
278,943
$
207,112
(1,910
)
(1,491
)
$
(61,372
)
$
277,033
$
205,621
96,135,783
95,650,104
94,639,065
297,539
642,734
96,135,783
95,947,643
95,281,799
$
(0.64
)
$
2.90
$
2.17
$
(0.64
)
$
2.89
$
2.16
Table of Contents
2009
2008
$
92,188
$
52,448
(808,760
)
(870,804
)
218
211
(759
)
(1,488
)
$
(717,113
)
$
(819,633
)
2009
2008
$
26,345
$
91,482
$
26,345
$
91,482
Table of Contents
2009
2008
$
175,000
$
175,000
249,680
252,357
12,200
12,200
9,500
9,500
17,000
17,000
47,104
6,120
6,120
5,620
6,120
11,202
6,957
486,322
532,358
17,035
17,108
$
469,287
$
515,250
Table of Contents
2009
2008
2007
$
107,586
$
20,081
$
4,842
52,798
8,742
18,527
3,742
3,960
5,036
$
164,126
$
32,783
$
28,405
Table of Contents
Table of Contents
Mobile
Process
Aerospace &
Industries
Industries
Defense
Steel
Corporate
Total
$
75,246
$
30,356
$
1,984
$
$
$
107,586
31,116
13,314
3,030
3,297
2,041
52,798
2,133
1,607
1
1
3,742
$
108,495
$
45,277
$
5,015
$
3,298
$
2,041
$
164,126
Mobile
Process
Aerospace &
Industries
Industries
Defense
Steel
Corporate
Total
$
18,789
$
1,292
$
$
$
$
20,081
6,711
624
1,087
320
8,742
1,724
1,845
391
3,960
$
27,224
$
3,761
$
$
1,478
$
320
$
32,783
Mobile
Process
Aerospace &
Industries
Industries
Defense
Steel
Corporate
Total
$
(66
)
$
4,908
$
$
$
$
4,842
9,357
1,602
7,568
18,527
2,079
571
2,386
5,036
$
11,370
$
7,081
$
$
9,954
$
$
28,405
2009
2008
$
17,021
$
19,062
55,599
12,702
(38,638
)
(14,743
)
$
33,982
$
17,021
Table of Contents
2009
2008
$
13,515
$
12,571
4,699
7,525
(12,794
)
(6,581
)
$
5,420
$
13,515
Table of Contents
Beginning
Ending
Balance
Acquisitions
Impairment
Other
Balance
$
49,810
$
$
$
(305
)
$
49,505
161,990
347
251
162,588
9,635
6
9,641
$
221,435
$
353
$
$
(54
)
$
221,734
Beginning
Ending
Balance
Acquisitions
Impairment
Other
Balance
$
22,112
$
$
(18,385
)
$
(3,727
)
$
49,933
(123
)
49,810
149,633
15,034
(2,677
)
161,990
9,635
9,635
$
221,678
$
24,669
$
(18,385
)
$
(6,527
)
$
221,435
Table of Contents
2009
2008
Gross
Net
Gross
Net
Carrying
Accumulated
Carrying
Carrying
Accumulated
Carrying
Amount
Amortization
Amount
Amount
Amortization
Amount
$
79,139
$
14,321
$
64,818
$
79,139
$
10,020
$
69,119
2,000
2,000
2,000
2,000
2,110
917
1,193
2,123
785
1,338
7,948
2,964
4,984
7,060
2,462
4,598
4,432
2,936
1,496
4,432
2,459
1,973
35,000
3,944
31,056
35,000
2,048
32,952
6,597
5,023
1,574
6,632
4,670
1,962
8,792
2,207
6,585
8,792
1,753
7,039
2,710
1,200
1,510
2,710
493
2,217
7,625
5,339
2,286
7,625
4,655
2,970
$
156,353
$
40,851
$
115,502
$
155,513
$
31,345
$
124,168
$
221,734
$
$
221,734
$
221,435
$
$
221,435
1,400
1,400
1,400
1,400
146
146
965
965
964
964
14,220
14,220
14,220
14,220
$
238,319
$
$
238,319
$
238,165
$
$
238,165
Table of Contents
2009
2008
2007
$
4.44
$
9.89
$
9.99
2.04
%
3.68
%
4.71
%
2.65
%
2.08
%
2.06
%
0.430
0.351
0.351
6
6
6
Weighted
Weighted
Average
Aggregate
Average
Remaining
Intrinsic
Number of
Exercise
Contractual
Value
Shares
Price
Term
(000s)
4,347,466
$
26.97
1,266,000
14.73
(50,238
)
16.32
(214,956
)
22.08
5,348,272
$
24.37
6 years
$
13,262
3,090,228
$
25.81
5 years
$
3,234
Table of Contents
Weighted
Number of
Average Grant
Shares
Date Fair Value
838,935
$
29.49
372,398
14.98
(388,076
)
27.73
(54,733
)
24.50
768,524
$
23.80
Table of Contents
Defined Benefit Pension Plans
Postretirement Benefit Plans
2009
2008
2007
2009
2008
2007
$
39,690
$
36,705
$
41,642
$
2,630
$
3,138
$
4,874
158,860
161,413
155,076
39,474
41,252
41,927
(192,915
)
(200,922
)
(189,500
)
11,333
12,563
11,340
(2,182
)
(2,114
)
(1,814
)
35,789
29,634
47,338
3,641
5,630
11,008
3,038
266
227
(87
)
(92
)
(178
)
$
55,708
$
39,567
$
65,945
$
43,563
$
47,906
$
55,995
6.3
%
6.3
%
5.875
%
6.3
%
6.3
%
5.875
%
1.5% to 3
%
3% to 4
%
3% to 4
%
8.75
%
8.75
%
8.75
%
5.75% to 9
%
5.25% to 8.49
%
4.5% to 9
%
2.75% to 6.31
%
2.75% to 5.19
%
2.75% to 5.75
%
4.5% to 9.2
%
4.5% to 8.68
%
4% to 9.2
%
Table of Contents
Defined Benefit
Postretirement
Pension Plans
Benefit Plans
2009
2008
2009
2008
$
2,600,932
$
2,686,001
$
671,122
$
720,359
39,690
36,705
2,630
3,138
158,860
161,413
39,474
41,252
5,427
(142
)
(429
)
(2,520
)
120,764
(19,624
)
8,498
(39,956
)
274
407
32,981
(94,079
)
592
(1,082
)
(17,572
)
(6,708
)
(170,975
)
(169,677
)
(52,452
)
(50,069
)
(2,813
)
(72
)
$
2,767,568
$
2,600,932
$
662,727
$
671,122
Table of Contents
Defined Benefit
Postretirement
Pension Plans
Benefit Plans
2009
2008
2009
2008
$
1,757,836
$
2,546,846
$
$
402,860
(564,186
)
274
407
62,614
22,149
52,452
50,069
27,174
(77,699
)
(170,975
)
(169,677
)
(52,452
)
(50,069
)
(4
)
$
2,079,783
$
1,757,836
$
$
$
(687,785
)
$
(843,096
)
$
(662,727
)
$
(671,122
)
$
8,744
$
6,451
$
$
(5,640
)
(5,502
)
(58,477
)
(58,077
)
(690,889
)
(844,045
)
(604,250
)
(613,045
)
$
(687,785
)
$
(843,096
)
$
(662,727
)
$
(671,122
)
$
1,072,324
$
1,188,922
$
113,463
$
115,314
41,371
51,364
3,103
1,350
(20
)
(107
)
$
1,113,675
$
1,240,179
$
116,566
$
116,664
$
1,240,179
$
563,954
$
116,664
$
162,656
(90,689
)
743,471
1,790
(39,956
)
1,340
(142
)
(429
)
(2,520
)
87
92
(35,789
)
(29,634
)
(3,641
)
(5,630
)
(11,333
)
(12,563
)
2,182
2,114
9,880
(24,999
)
$
1,113,675
$
1,240,179
$
116,566
$
116,664
Table of Contents
Defined Benefit Pension Plans
Postretirement Benefit Plans
2009
2008
2009
2008
6
%
6.3
%
5.75
%
6.3
%
1.5% to 3
%
3% to 4
%
5.25% to 8.5
%
5.75% to 9
%
2.66% to 6.12
%
2.75% to 6.31
%
Table of Contents
Percentage of Pension Plan Assets at
Current Target
December 31,
Asset Category
Allocation
2009
2008
55% to 65
%
61
%
55
%
35% to 45
%
39
%
45
%
100
%
100
%
100
%
Table of Contents
Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2
Unadjusted quoted prices in active markets for similar assets or liabilities, or
unadjusted quoted prices for identical or similar assets or liabilities in markets that are not
active, or inputs other than quoted prices that are observable for the asset or liability.
Level 3
Unobservable inputs for the asset or liability.
Total
Level 1
Level 2
Level 3
$
72,273
$
72,273
$
$
109,491
80,289
29,202
399,546
399,546
777,571
777,571
22,468
22,468
311,217
291,967
19,250
276,328
276,328
22,577
22,577
87,576
87,576
736
736
$
2,079,783
$
930,133
$
1,042,824
$
106,826
$
73,742
34,621
5,626
(7,163
)
$
106,826
Table of Contents
Employer Contributions to Defined Benefit Plans
$
22,149
$
62,614
$
135,000
Postretirement Benefits
Expected
Net Including
Medicare
Medicare
Benefit Payments
Pension Benefits
Gross
Subsidies
Subsidies
$
171,410
$
62,856
$
2,698
$
60,158
$
174,215
$
64,352
$
2,985
$
61,367
$
178,069
$
63,985
$
3,324
$
60,661
$
182,021
$
63,056
$
3,657
$
59,399
$
185,245
$
62,128
$
3,197
$
58,931
$
993,340
$
284,686
$
13,675
$
271,011
Table of Contents
2009
2008
2007
$
1,245,012
$
1,771,863
1,838,427
806,000
1,163,012
980,899
417,696
411,954
297,649
672,919
1,693,971
1,415,091
$
3,141,627
$
5,040,800
4,532,066
$
$
$
2,719
3,154
1,809
41,993
157,982
146,515
$
44,712
$
161,136
$
148,324
Table of Contents
2009
2008
2007
$
30,496
$
35,764
$
28,030
118,504
218,667
125,779
72,444
41,459
18,003
(57,880
)
264,006
231,167
$
163,564
$
559,896
$
402,979
(48,715
)
(68,357
)
(65,849
)
(164,126
)
(32,783
)
(28,404
)
(528
)
(11,097
)
(4,928
)
(21,053
)
536
19,109
6,634
3,602
9,136
6,449
(6,085
)
(62
)
2
279
(40,802
)
(44,401
)
(42,314
)
823
5,792
6,936
8,132
(3,879
)
(473
)
$
(94,230
)
$
439,587
$
264,656
$
1,226,627
$
1,325,365
$
1,446,057
682,904
910,542
836,641
531,531
603,899
560,742
633,649
901,015
756,205
932,182
342,743
208,607
452,486
570,985
$
4,006,893
$
4,536,050
$
4,379,237
$
23,781
$
55,901
$
78,796
51,161
82,595
100,675
8,523
19,155
23,075
29,889
98,459
83,534
796
2,037
3,704
$
114,150
$
258,147
$
289,784
$
86,367
$
88,246
$
88,770
41,636
40,486
37,007
25,234
22,677
15,987
45,867
48,471
45,419
2,382
919
735
$
201,486
$
200,799
$
187,918
Table of Contents
(Loss) income from continuing
operations before income taxes
2009
2008
2007
$
(51,443
)
$
279,578
$
215,681
(42,787
)
160,009
48,975
$
(94,230
)
$
439,587
$
264,656
2009
2008
2007
$
(51,780
)
$
93,268
$
20,304
2,431
14,166
1,924
(1,605
)
47,751
20,658
(50,954
)
155,185
42,886
33,170
(169
)
19,206
(6,402
)
957
(5,888
)
(4,007
)
1,089
(2,262
)
22,761
1,877
11,056
$
(28,193
)
$
157,062
$
53,942
Table of Contents
2009
2008
2007
$
(32,980
)
$
153,855
$
92,630
(2,581
)
9,830
(2,577
)
4,351
5,368
6,613
13,254
7,705
14,681
(3,712
)
(21,140
)
(16,354
)
1,275
(2,531
)
(4,576
)
(3,004
)
(1,937
)
(2,689
)
(1,654
)
4,393
(27,827
)
(3,142
)
1,519
(5,959
)
$
(28,193
)
$
157,062
$
53,942
29.9
%
35.7
%
20.4
%
2009
2008
$
213,810
$
212,658
278,464
379,611
30,069
34,780
4,590
7,366
194,399
130,144
28,976
57,378
(222,457
)
(159,576
)
527,851
662,361
(233,116
)
(277,634
)
$
294,735
$
384,727
Table of Contents
2009
2008
$
71,800
$
113,100
5,500
8,400
27,400
9,100
(17,100
)
(4,800
)
(53,300
)
(9,800
)
(700
)
$
77,800
$
71,800
Table of Contents
Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2
Unadjusted quoted prices in active markets for similar assets or
liabilities, or unadjusted quoted prices for identical or similar assets or liabilities
in markets that are not active, or inputs other than quoted prices that are observable
for the asset or liability.
Level 3
Unobservable inputs for the asset or liability.
Fair Value at December 31, 2009
Total
Level 1
Level 2
Level 3
$
6,948
$
6,948
$
$
2,651
2,651
$
9,599
$
6,948
$
2,651
$
$
5,853
$
$
5,853
$
$
5,853
$
$
5,853
$
Fair Value for the year ended December 31, 2009
Total
Total
Level 1
Level 2
Level 3
Losses
$
$
$
$
$
(4,392
)
71,546
71,546
(110,043
)
$
71,546
$
$
$
71,546
$
(114,435
)
Table of Contents
Carrying
Fair Value
Value
Adjustment
Fair Value
$
4,392
$
(4,392
)
$
$
4,392
$
(4,392
)
$
$
29,757
$
(27,713
)
$
2,044
1,984
(1,984
)
86,717
(43,453
)
43,264
9,572
(7,869
)
1,703
13,334
(11,001
)
2,333
3,289
(2,320
)
969
20,155
(5,944
)
14,211
12,633
(6,085
)
6,548
4,148
(3,674
)
474
$
181,589
$
(110,043
)
$
71,546
Table of Contents
Table of Contents
Asset Derivatives
Liability Derivatives
Balance Sheet
Fair Value
Fair Value
Fair Value
Fair Value
Location
at 12/31/09
at 12/31/08
at 12/31/09
at 12/31/08
Other non-current liabilities
$
675
$
4,398
$
1,849
$
7,635
Other non-current assets
2,357
Other current assets
1,559
$
675
$
8,314
$
1,849
$
7,635
Other non-current assets/liabilities
$
1,976
$
1,786
$
4,004
$
3,218
$
2,651
$
10,100
$
5,853
$
10,853
Table of Contents
Amount of gain or (loss) recognized
in income on derivative
Derivatives in fair value hedging
Location of gain or (loss)
December 31,
December 31,
relationships
recognized in income on derivative
2009
2008
Interest expense
$
(1,300
)
$
2,050
Other (expense) income, net
(1,559
)
(1,559
)
$
(2,859
)
$
491
Amount of gain or (loss) recognized
in income on derivative
Hedged items in fair value hedge
Location of gain or (loss)
December 31,
December 31,
relationships
recognized in income on derivative
2009
2008
Interest expense
$
1,300
$
(2,050
)
Other (expense) income, net
1,185
1,559
$
2,485
$
(491
)
Amount of gain or
Amount of gain or
(loss) reclassified from
(loss) recognized in
AOCI into income
OCI on derivative
(effective portion)
Derivatives in cash flow hedging
December 31,
December 31,
relationships
2009
2008
2009
2008
$
(34
)
$
(62
)
$
(3,297
)
$
1,876
$
(34
)
$
(62
)
$
(3,297
)
$
1,876
Amount of gain or (loss)
recognized in income on
derivative
Derivatives not designated as hedging
Location of gain or (loss) recognized in
December 31,
instruments
income on derivative
2009
2008
Cost of sales
$
80
$
(4
)
Other (expense) income, net
(677
)
(1,348
)
$
(597
)
$
(1,352
)
Table of Contents
Table of Contents
2009
1st
2nd
3rd
4th
Total
(Dollars in thousands, except per share data)
$
866,616
$
736,761
$
763,644
$
774,606
$
3,141,627
154,614
125,372
129,562
173,199
582,747
13,755
50,706
19,613
80,052
164,126
(1,435
)
(38,404
)
(18,901
)
(7,297
)
(66,037
)
(3,643
)
(25,466
)
(30,803
)
(12,677
)
(72,589
)
(5,078
)
(63,870
)
(49,704
)
(19,974
)
(138,626
)
(5,948
)
647
424
212
(4,665
)
870
(64,517
)
(50,128
)
(20,186
)
(133,961
)
0.05
(0.41
)
(0.20
)
(0.08
)
(0.64
)
(0.04
)
(0.26
)
(0.32
)
(0.13
)
(0.75
)
0.01
(0.67
)
(0.52
)
(0.21
)
(1.39
)
0.05
(0.41
)
(0.20
)
(0.08
)
(0.64
)
(0.04
)
(0.26
)
(0.32
)
(0.13
)
(0.75
)
0.01
(0.67
)
(0.52
)
(0.21
)
(1.39
)
0.18
0.09
0.09
0.09
0.45
2008
1st
2nd
3rd
4th
Total
$
1,246,684
$
1,359,812
$
1,336,352
$
1,097,952
$
5,040,800
278,118
314,373
381,540
177,822
1,151,853
2,558
2,505
2,379
25,341
32,783
76,088
79,623
124,971
1,843
282,525
9,262
10,298
6,539
(37,372
)
(11,273
)
85,350
89,921
131,510
(35,529
)
271,252
885
978
1,097
622
3,582
84,465
88,943
130,413
(36,151
)
267,670
0.78
0.82
1.28
0.01
2.90
0.10
0.10
0.07
(0.38
)
(0.12
)
0.88
0.92
1.35
(0.37
)
2.78
0.78
0.81
1.28
0.01
2.89
0.10
0.11
0.07
(0.38
)
(0.12
)
0.88
0.92
1.35
(0.37
)
2.77
0.17
0.17
0.18
0.18
0.70
(1)
Impairment and restructuring charges for the second quarter of 2009 include fixed asset
impairments of $31.1 million, severance and related benefit costs of $18.1 million and exit
costs of $1.5 million. Impairment and restructuring charges for the fourth quarter of 2009
include fixed asset impairments of $72.8 million, severance and related benefit costs of $6.5
million and exit costs of $0.8 million.
(2)
Discontinued operations for 2009 reflects the operating results and loss on sale of NRB,
net of tax. Discontinued operations for 2008 reflects the operating results of NRB, net of
tax.
(3)
Net loss for the first quarter of 2009 includes two prior period adjustments totalling
$4.1 million related to the fourth quarter of 2008.
(4)
Impairment and restructuring charges for the fourth quarter of 2008 include a goodwill
impairment charge of $18.4 million, fixed asset impairments of $1.9 million, severance and
related benefits of $4.2 million and exist costs of $0.4 million.
(5)
Income from continuing operations for the first quarter of 2008 includes a pretax gain of
$20.4 million on the sale of the Companys former seamless steel tube manufacturing facility
located in Desford, England. Income from continuing operations for the fourth quarter includes
$10.2 million, resulting from the CDSOA.
Table of Contents
Table of Contents
Table of Contents
February 25, 2010
Table of Contents
Table of Contents
Exhibit
Sale and Purchase Agreement, dated as of July 29, 2009, by and between The
Timken Company and JTEKT Corporation, was filed on July 29, 2009 with Form 8-K
(Commission File No. 1-1169) and is incorporated herein by reference.
Amended Articles of Incorporation of The Timken Company, (effective April 16, 1996)
were filed with Form S-8 dated April 16, 1996 (Registration No. 333-02553) and are
incorporated herein by reference.
Amended Regulations of The Timken Company effective April 21, 1987, were filed on
March 29, 1993 with Form 10-K (Commission File No. 1-1169), and are incorporated herein
by reference.
Amended and Restated Credit Agreement, dated as of July 10, 2009, by and
among: The Timken Company; Bank of America, N.A. and KeyBank National Association as
Co-Administrative Agents; Wells Fargo Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ,
Ltd. and Suntrust Bank, as Co-Syndication Agents; JPMorgan Chase Bank, N.A., Deutsche
Bank AG New York Branch and The Bank of New York Mellon, as Co-Documentation Agents;
KeyBank National Association, as Paying Agent, L/C Issuer and Swing Line Lender; and
the other Lenders party thereto, was filed July 15, 2009 with Form 8-K (Commission File
No. 1-1169), and is incorporated herein by reference.
Indenture dated as of July 1, 1990, between Timken and Ameritrust Company of
New York, which was filed with Timkens Form S-3 registration statement dated July 12,
1990 (Registration No. 333-35773) 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.
First Supplemental Indenture, dated as of September 14, 2009, by and between
The Timken Company and The Bank of New York Mellon Trust Company, N.A. (successor to
The Bank of New York Mellon (formerly known as The Bank of New York)), was filed on
November 11, 2009 with Form 10-Q (Commission File No. 1-1169), and is incorporated
herein by reference.
Indenture, dated as of February 18, 2003, between The Timken Company and The
Bank of New York, as Trustee, providing for Issuance of Notes in Series was filed on
March 27, 2003 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 registrants consolidated total assets. The
registrant agrees to furnish a copy of such agreements upon request.
Amended and Restated Receivables Purchase Agreement, dated as of December 30,
2005, by and among: Timken Receivables Corporation; The Timken Corporation; Jupiter
Securitization Corporation; and JP Morgan Chase Bank, N.A. was filed on January 6, 2006
with Form 8-K (Commission File no. 1-1169) and is incorporated herein by reference;
The Amended and
Restated Receivables Sales Agreement, dated as of December 30, 2005, by and between
Timken Corporation and Timken Receivables Corporation was filed on January 6, 2006 with
Form 8-K (Commission File no. 1-1169) and is incorporated herein by reference.
Amendments to the Amended and Restated Receivables Purchase Agreement and Amendments
to the Amended and Restated Receivables Sales Agreement up through November 16, 2009.
Table of Contents
The Timken Company 1996 Deferred Compensation Plan for officers and other key
employees, amended and restated effective December 31, 2008.
The Timken Company Director Deferred Compensation Plan, amended and restated
effective December 31, 2008.
Form of The Timken Company 1996 Deferred Compensation Plan Election Agreement,
amended and restated as of January 1, 2008.
Form of The Timken Company Director Deferred Compensation Plan Election Agreement,
amended and restated as of January 1, 2008.
The Timken Company Long-Term Incentive Plan for directors, officers and other key
employees as amended and restated as of February 5, 2008 and approved by shareholders
on May 1, 2008 was filed as Appendix A to Proxy Statement filed on March 15, 2008
(Commission File No. 1-1169) and is incorporated herein by reference.
The Timken Company Supplemental Pension Plan, as amended and restated effective
January 1, 2009.
The Timken Company Senior Executive Management Performance Plan, as amended and
restated as of February 1, 2005 and approved by shareholders April 19, 2005, was filed
as Appendix A to Proxy Statement filed on March 14, 2005 (Commission File No. 1-1169)
and is incorporated herein by reference.
Form of Amended and Restated Severance Agreement for officers was filed on December
18, 2009 with Form 8-K (Commission File No. 1-1169) and is incorporated herein by
reference.
Form of Indemnification Agreements entered into with all Directors who are not
Executive Officers of the Company was filed on April 1, 1991 with Form 10-K (Commission
File No. 1-1169) and is incorporated herein by reference.
Form of Indemnification Agreements entered into with all Executive Officers of the
Company who are not Directors of the Company was filed on April 1, 1991 with Form 10-K
(Commission File No. 1-1169) and is incorporated herein by reference.
Form of Indemnification Agreements entered into with all Executive Officers of the
Company who are also Directors of the Company was filed on April 1, 1991 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 and the President of Steel, was filed on February 26, 2009
with Form 10-K (Commission File No. 1-1169), and is incorporated herein by reference.
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 Nonqualified Stock Option Agreement for special award options (performance
vesting), as adopted on April 18, 2000, was filed on May 12, 2000 with Form 10-Q
(Commission File No. 1-1169) and is incorporated herein by reference.
Form of Nonqualified Stock Option Agreement for nontransferable options without
dividend credit, as adopted on April 17, 2001, was filed on May 14, 2001 with Form 10-Q
(Commission File No. 1-1169) and is incorporated herein by reference.
Form of Non-Qualified Stock Option Agreement for Officers, as adopted on January 31,
2005, was filed on February 4, 2005 with Form 8-K (Commission File No. 1-1169) and is
incorporated herein by reference. (10.23).
Table of Contents
Form of Non-Qualified Stock Option Agreement for Non-Employee Directors, as adopted
on January 31, 2005, was filed on March 15, 2005 with Form 10-K (Commission File No.
1-1169) and is incorporated herein by reference.
Form of Non-Qualified Stock Option Agreement for Officers, as adopted on February 6,
2006, was filed on February 10, 2006 with Form 8-K (Commission File No. 1-1169) and is
incorporated herein by reference.
Form of Nonqualified Stock Option Agreement for Officers, was filed on February 26,
2009 with Form 10-K (Commission File No. 1-1169), and is incorporated herein by
reference.
Form of Nonqualified Stock Option Agreement for Officers, as adopted on December 10,
2009.
Form of Restricted Share Agreement for Non-Employee Directors, as adopted on January
31, 2005, was filed on March 15, 2005 with Form 10-K (Commission File No. 1-1169) and
is incorporated herein by reference.
Form of Restricted Share Agreement, as adopted on February 6, 2006, was filed on
February 10, 2006 with Form 8-K (Commission File No. 1-1169) and is incorporated herein
by reference.
Form of Performance Vested Restricted Share Agreement for Executive Officers, as
adopted on February 4, 2008, was filed on February 7, 2008 with Form 8-K (Commission
File No. 1-1169) and is incorporated herein by reference.
Form of Performance Unit Agreement, as adopted on February 4, 2008, was filed on
February 7, 2008 with Form 8-K (Commission File No. 1-1169) and is incorporated herein
by reference.
Form of Performance Shares Agreement was filed on February 11, 2010 with Form 8-K
(Commission File No. 1-1169) and is incorporated herein by reference.
Table of Contents
Computation of Ratio of Earnings to Fixed Charges.
A list of subsidiaries of the registrant.
Consent of Independent Registered Public Accounting Firm.
Power of Attorney.
Principal Executive Officers Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
Principal Financial Officers 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.
Table of Contents
THE TIMKEN COMPANY
By /s/ Glenn A. Eisenberg
Executive Vice President Finance
and Administration (Principal Financial Officer)
Date: February 25, 2010
By /s/ J. Ted Mihaila
Senior Vice President and Controller
(Principal Accounting Officer)
Date: February 25, 2010
By /s/ John P. Reilly *
Date: February 25, 2010
By /s/ Frank C. Sullivan *
Date: February 25, 2010
By /s/ John M. Timken, Jr. *
Date: February 25, 2010
By /s/ Ward J. Timken *
Date: February 25, 2010
By /s/ Ward J. Timken, Jr.*
Date: February 25, 2010
By /s/ Jacqueline F. Woods*
Date: February 25, 2010
* By /s/ Glenn A. Eisenberg
By authority of Power of Attorney
filed as Exhibit 24 hereto
Date: February 25, 2010
Table of Contents
COL. A
COL. B
COL. C
Col. D
COL. E
Additions
Balance at
Charged to
Charged
Balance at
Beginning of
Costs and
to Other
End of
Description
Period
Expenses
Accounts
Deductions
Period
$
55,043
38,225
(1)
533
(4)
52,196
(6)
$
41,605
$
40,740
22,155
(1)
(770
)(4)
7,082
(6)
$
55,043
$
35,315
14,632
(1)
516
(4)
9,723
(6)
$
40,740
$
24,732
31,349
(2)
1,690
(4)
26,972
(7)
$
30,799
$
24,859
30,937
(2)
(1,358
)(4)
29,706
(7)
$
24,732
$
14,044
13,458
(2)
1,540
(4)
4,183
(7)
$
24,859
$
159,576
57,792
(3)
16,330
(5)
11,241
$
222,457
$
186,704
18,946
(3)
(21,697
)(5)
24,377
$
159,576
$
190,721
21,518
(3)
(116
)(5)
25,419
$
186,704
(1)
Provision for uncollectible accounts included in expenses.
(2)
Provisions for surplus and obsolete inventory included in expenses.
(3)
Increase in valuation allowance is recorded as a component of the provision for
income taxes.
(4)
Currency translation and change in reserves due to acquisitions,
net of divestitures.
(5)
Includes valuation allowances recorded against other comprehensive income/loss
or goodwill.
(6)
Actual accounts written off against the allowance net of
recoveries.
(7)
Inventory items written off against the allowance
-2-
(a) | counterparts of this Amendment executed by the Seller, the Servicer, the Originator, each Purchaser and the L/C Issuer; | ||
(b) | a certificate of the secretary or assistant secretary of the Seller certifying as to the names and true signatures of the officers of the Seller that are authorized to execute this Amendment and other Transaction Documents; | ||
(c) | such amendments to the Collection Account Agreements as the Agent may reasonably request; and | ||
(d) | a Reaffirmation of Performance Undertaking in substantially the form attached hereto as Exhibit A hereto, executed by the Performance Guarantor in respect of the Performance Undertaking. |
-3-
-4-
TIMKEN RECEIVABLES CORPORATION,
as Seller |
||||
By: | ||||
Name: | ||||
Title: | ||||
THE TIMKEN CORPORATION,
as Servicer and as Originator |
||||
By: | ||||
Name: | ||||
Title: | ||||
JUPITER SECURITIZATION
COMPANY LLC
By: JPMorgan Chase Bank, N.A., its attorney-in-fact |
||||
By: | ||||
Name: | ||||
Title: | ||||
JPMORGAN CHASE BANK, N.A., as a Financial
Institution and as Agent |
||||
By: | ||||
Name: | ||||
Title: | ||||
THE TIMKEN COMPANY
|
||||
By: | ||||
Name: | ||||
Title: |
Corresponding Account
Collection Bank Name/Address
Post Office Box Address
Number
50 South LaSalle Street
Chicago, IL 60675
P.O. Box 91073
Chicago, IL 60675
69698
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
P.O. Box 751580
Charlotte, NC 28288-0013
8737080994
Collection Bank Name/ Address
Account Numbers
300 South Riverside Drive, 18th Floor
Mail Code IL1-0196
Chicago, IL 60670-0196
622991479
One Mellon Center
Pittsburgh, PA 15258-0001
172-1301
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
820944
300 South Riverside Drive, 18th Floor
Mail Code IL1-0196
Chicago, IL 60670-0196
628063
Corresponding Account
Collection Bank Name/Address
Post Office Box Address
Number
50 South LaSalle Street
Chicago, IL 60675
P.O. Box 91073
Chicago, IL 60675
69698
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
P.O. Box 751580
Charlotte, NC 28288-0013
8737080994
Collection Bank Name/ Address
Account Numbers
300 South Riverside Drive, 18th Floor
Mail Code IL1-0196
Chicago, IL 60670-0196
622991479
One Mellon Center
Pittsburgh, PA 15258-0001
172-1301
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
820944
300 South Riverside Drive, 18th Floor
Mail Code IL1-0196
Chicago, IL 60670-0196
628063
-2-
-3-
(a) | counterparts of this Amendment executed by the Seller, the Servicer, the Originator and each Purchaser; and | ||
(b) | a Reaffirmation of Performance Undertaking in substantially the form attached hereto as Exhibit A hereto, executed by the Performance Guarantor in respect of the Performance Undertaking. |
-4-
-5-
TIMKEN RECEIVABLES CORPORATION,
as Seller |
||||
By: | ||||
Name: | ||||
Title: | ||||
THE TIMKEN CORPORATION,
as Servicer and as Originator |
||||
By: | ||||
Name: | ||||
Title: | ||||
JUPITER SECURITIZATION COMPANY LLC
By: JPMorgan Chase Bank, N.A., its attorney-in-fact |
||||
By: | ||||
Name: | ||||
Title: | ||||
JPMORGAN CHASE BANK, N.A., as a
Financial Institution and as Agent |
||||
By: | ||||
Name: | ||||
Title: | ||||
THE TIMKEN COMPANY
|
||||
By: | ||||
Name: | ||||
Title: | ||||
Outstanding | ||||||||||||
Capital | Ratable | |||||||||||
(prior to giving | Outstanding Capital | Share (upon giving | ||||||||||
effect to | (upon giving effect | effect to | ||||||||||
Assignor | Assignment) | to Assignment) | Assignment) | |||||||||
Jupiter
Securitization
Company LLC
|
$ | [_________] | $ | [_________] | 0 | % | ||||||
|
||||||||||||
Assignee
|
||||||||||||
Park Avenue
Receivables
Company, LLC
|
$ | 0.00 | $ | [_________] | 100 | % | ||||||
Total:
|
$ | [_________] | $ | [_________] | 100.0 | % |
Facility Fees:
|
$ | [________] | ||
|
||||
Usage Fees:
|
$ | [________] | ||
|
||||
CP Costs:
|
$ | [________] | ||
|
||||
Total:
|
$ | [________] |
-2-
(a) | counterparts of this Amendment executed by the Seller, the Servicer, the Originator, each Purchaser and the L/C Issuer; and | ||
(b) | a Reaffirmation of Performance Undertaking in substantially the form attached hereto as Exhibit A hereto, executed by the Performance Guarantor in respect of the Performance Undertaking. |
-3-
-4-
TIMKEN RECEIVABLES CORPORATION, as Seller
|
||||
By: | ||||
Name: | ||||
Title: | ||||
THE TIMKEN CORPORATION,
as Servicer and as Originator |
||||
By: | ||||
Name: | ||||
Title: | ||||
PARK AVENUE RECEIVABLES COMPANY LLC
By: JPMorgan Chase Bank, N.A., its attorney-in-fact |
||||
By: | ||||
Name: | ||||
Title: | ||||
JPMORGAN CHASE BANK, N.A., as a Financial
Institution and as Agent |
||||
By: | ||||
Name: | ||||
Title: | ||||
THE TIMKEN COMPANY
|
||||
By: | ||||
Name: | ||||
Title: |
NAMES OF COLLECTION BANKS; COLLECTION ACCOUNTS
Corresponding Account
Collection Bank Name/Address
Post Office Box Address
Number
50 South LaSalle Street
Chicago, IL 60675
P.O. Box 91073
Chicago, IL 60675
69698
50 South LaSalle Street
Chicago, IL 60675
P.O. Box 91821
[ADDRESS]
45381
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
P.O. Box 751580
Charlotte, NC 28288-0013
2087370809949
Collection Bank Name/ Address
Account Numbers
One Mellon Center
Pittsburgh, PA 15258-0001
172-1301
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
2018640820944
300 South Riverside Drive, 18th Floor
Mail Code IL1-0196
Chicago, IL 60670-0196
628063
Corresponding Account
Collection Bank Name/Address
Post Office Box Address
Number
50 South LaSalle Street
Chicago, IL 60675
P.O. Box 91073
Chicago, IL 60675
69698
50 South LaSalle Street
Chicago, IL 60675
P.O. Box 91821
[ADDRESS]
45381
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
P.O. Box 751580
Charlotte, NC 28288-0013
2087370809949
Collection Bank Name/ Address
Account Numbers
One Mellon Center
Pittsburgh, PA 15258-0001
172-1301
301 South College Street
One Wachovia Center
Charlotte, NC 28288-0013
2018640820944
300 South Riverside Drive, 18th Floor
Mail Code IL1-0196
Chicago, IL 60670-0196
628063
-2-
THE TIMKEN COMPANY
|
||||
By: | ||||
Name: | ||||
Title: | ||||
-2-
THE TIMKEN COMPANY
|
||||
By: | ||||
Name: | ||||
Title: | ||||
(i) | Default Trigger; | ||
(ii) | Delinquency Ratio; | ||
(iii) | Dilution Ratio; | ||
(iv) | Dilution Reserve; | ||
(v) | Disputed Ratio; |
(vi) | Loss Reserve; | ||
(vii) | Net Receivables Balance; and | ||
(viii) | Yield and Servicer Reserve. |
-2-
-3-
-4-
-5-
Rating Level | Applicable Stress Factor | |||
Rating Level I
|
2.0 | |||
Rating Level II
|
2.25 | |||
Rating Level III
|
2.5 |
-6-
(ii)
|
[
|
(ASF x ED) | + |
{
|
(DS ED) | x | DS |
}
|
]
|
x | DHR | ||||||||||||
|
|||||||||||||||||||||||
|
ED |
where:
|
||||
ASF
|
= | the Applicable Stress Factor; | ||
ED
|
= | the Expected Dilution Ratio at such time; | ||
DS
|
= | the Dilution Spike Ratio at such time; and | ||
DHR
|
= | the Dilution Horizon Ratio at such time. |
-7-
Rating Level | Rating by S&P/Moodys | |
|
||
Rating Level I
|
Greater than or equal to BBB- and Baa3 | |
|
||
Rating Level II
|
Less than BBB- and Baa3, but greater than or equal to BB/Ba2 | |
|
||
Rating Level III
|
Less than BB and Ba2 or unrated |
-8-
-9-
-10-
THE TIMKEN COMPANY
|
||||
By: | ||||
Name: | ||||
Title: | ||||
-2-
-3-
-2-
-3-
-4-
-5-
-6-
-7-
-8-
-9-
Financial Institution
Commitment
$
175,000,000
TIMKEN RECEIVABLES CORPORATION, as Seller
By:
/s/ Glenn A. Eisenberg
Name:
Glenn A. Eisenberg
Title:
President
THE TIMKEN CORPORATION, as
Servicer and as Originator
By:
/s/ Glenn A. Eisenberg
Name:
Glenn A. Eisenberg
Title:
Executive Vice
President Finance and Administration
PARK AVENUE RECEIVABLES COMPANY, LLC
By: JPMorgan Chase Bank, N.A., its
attorney-in-fact
By:
Name:
Title:
JPMORGAN CHASE BANK, N.A., as a
Financial Institution and as Agent
By:
Name:
Title:
Omnibus Amendment No. 4
TIMKEN RECEIVABLES CORPORATION, as Seller
By:
Name:
Title:
THE TIMKEN CORPORATION, as
Servicer and as Originator
By:
Name:
Title:
PARK AVENUE RECEIVABLES COMPANY,
LLC
By: JPMorgan Chase Bank, N.A., its
attorney-in-fact
By:
/s/ Trisha Lesch
Name:
Trisha Lesch
Title:
Vice President
JPMORGAN CHASE BANK, N.A., as a
Financial Institution and as Agent
By:
/s/ Trisha Lesch
Name:
Trisha Lesch
Title:
Vice President
Omnibus Amendment No. 4
c/o
J.P. Morgan Securities Inc.
270 Park
Avenue, 10th Floor
New York, New York 10017
THE TIMKEN COMPANY
By:
Name:
Title:
Obligor
Special Concentration Limit
Technologies
6% of the Outstanding Balance of Eligible Receivables
Obligor
Special Concentration Limit
6% of the Outstanding Balance of Eligible
Receivables; provided, that if, at any time,
Caterpillar Inc.s senior unsecured long-term
non-credit enhanced debt is not (x) rated A or
better by S&P and (y) rated A2 or better by Moodys,
the Concentration Limit in respect of Caterpillar
Inc. shall mean 3.5% of the aggregate Outstanding
Balance of Eligible Receivables at such time
8% of the Outstanding Balance of Eligible Receivables
8% of the Outstanding Balance of Eligible Receivables
Waiver and Amendment No. 7 to Amended and Restated Receivables Purchase Agreement
AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT
Financial Institution
Commitment
$
100,000,000
AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT
Fiscal Year (or portion thereof)
Amount
$
175,000,000
for balance of 2009
$
200,000,000
$
200,000,000
$
200,000,000
AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT
Name:
AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT
Name:
RESTATED RECEIVABLES PURCHASE AGREEMENT
c/o J.P. Morgan Securities Inc.
270 Park Avenue, 10th Floor
New York, New York 10017
THE TIMKEN COMPANY
By:
Name:
Title:
25% [ ] | 50% [ ] | ___% [ ] | $ [ ] per month |
25% [ ] | 50% [ ] | 100% [ ] | ___% [ ] | $ [ ] |
25% [ ] | 50% [ ] | 100% [ ] | ___% [ ] | $ [ ] |
25% [ ] | 50% [ ] | 100% [ ] | ___% [ ] | # of shares [ ] |
25% [ ] | 50% [ ] | ___% [ ] | ___% [ ] | $ [ ] |
25% [ ] | 50% [ ] | ___% [ ] | ___% [ ] | $ [ ] per contribution |
25% [ ] | 50% [ ] | ___% [ ] | $ [ ] per contribution |
1 | Note that with respect to any Unvested Excess Core Contributions, the period of deferral can end no sooner than the date on which the Eligible Associate has achieved three Years of Service (as defined in and determined under the Savings and Investment Pension Plan). |
(Signature) | (Print or type name) |
25% [ ] | 100% [ ] | |
50% [ ] | % [ ] |
a. | Common Shares fund ___% | |
b. | Cash fund ___% |
a. | Common Shares fund ___% | |
b. | Cash fund ___% |
a. | Pay in lump sum [ ] | |
b. | Pay in ___ (not to exceed 40) approximately equal quarterly installments (based on initial value) [ ] |
a. | Defer until my Termination of Service [ ] | |
b. | Defer until [ ] (specify date or number of years following my Termination of Service) |
25% [ ] | 100% [ ] | |
50% [ ] | ___% [ ] |
___shares[ ] | $ [ ] |
a. | Common Shares fund ___% | |
b. | Cash fund ___% |
a. | Pay in lump sum [ ] | |
b. | Pay in ___ (not to exceed 40) approximately equal quarterly installments (based on initial value) [ ] |
a. | Defer until my Termination of Service [ ] | |
b. | Defer until [ ] (specify date or number of years following my Termination of Service) | |
|
||
(Signature)
|
(Print or type name) |
THE TIMKEN COMPANY
|
||||
By | ||||
William R. Burkhart | ||||
Sr. Vice President & General Counsel | ||||
Optionee | ||||||
|
Date: | |||||
|
|
Years Ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(Loss) income from continuing operations before tax
|
$ | (94,230 | ) | $ | 439,587 | $ | 264,656 | $ | 208,633 | $ | 308,197 | |||||||||
Share of undistributed losses from
50%-or-less-owned affiliates, excluding
affiliates with guaranteed debt
|
907 | (1,418 | ) | 1,321 | 5,696 | 4,762 | ||||||||||||||
Amortization of capitalized interest
|
4,096 | 1,839 | 1,406 | 1,229 | 1,204 | |||||||||||||||
Interest expense
|
41,883 | 44,401 | 42,314 | 49,037 | 51,299 | |||||||||||||||
Interest portion of rental expense
|
8,527 | 8,687 | 7,516 | 4,950 | 3,384 | |||||||||||||||
(Loss) earnings
|
$ | (38,817 | ) | $ | 493,096 | $ | 317,213 | $ | 269,545 | $ | 368,846 | |||||||||
|
||||||||||||||||||||
Interest
|
$ | 43,360 | $ | 47,354 | $ | 48,014 | $ | 52,318 | $ | 51,919 | ||||||||||
Interest portion of rental expense
|
8,527 | 8,687 | 7,516 | 4,950 | 3,384 | |||||||||||||||
Fixed Charges
|
$ | 52,187 | $ | 56,041 | $ | 55,530 | $ | 57,268 | $ | 55,303 | ||||||||||
|
||||||||||||||||||||
Ratio of Earnings to Fixed Charges
|
(0.74 | ) | 8.80 | 5.71 | 4.71 | 6.67 | ||||||||||||||
Percentage of | ||||||
voting securities | ||||||
State or sovereign | owned directly | |||||
power under laws | or indirectly | |||||
Name | of which organized | by Company | ||||
MPB Corporation
|
Delaware | 100 | % | |||
Timken Super Precision Europa B.V.
|
Netherlands | 100 | % | |||
Timken Super Precision Singapore Pte. Ltd.
|
Singapore | 100 | % | |||
Timken UK, Ltd.
|
England | 100 | % | |||
Australian Timken Proprietary, Limited
|
Australia | 100 | % | |||
Timken do Brasil Comercio e Industria, Ltda.
|
Brazil | 100 | % | |||
Timken Communications Company
|
Ohio | 100 | % | |||
British Timken Limited
|
England | 100 | % | |||
Timken Alloy Steel Europe Limited
|
England | 100 | % | |||
EDC, Inc.
|
Ohio | 100 | % | |||
Timken Engineering and Research India Private Limited
|
India | 100 | % | |||
Timken Espana, S.L.
|
Spain | 100 | % | |||
Timken Germany GmbH
|
Germany | 100 | % | |||
Timken Europe B.V.
|
Netherlands | 100 | % | |||
Timken India Limited
|
India | 80 | % | |||
Timken Industrial Services, LLC
|
Delaware | 100 | % | |||
Timken Italia, S.R.L.
|
Italy | 100 | % | |||
Timken Korea Limited Liability Corporation
|
Korea | 100 | % | |||
Timken de Mexico S.A. de C.V.
|
Mexico | 100 | % | |||
Nihon Timken K.K.
|
Japan | 100 | % | |||
Timken Polska Sp.z.o.o.
|
Poland | 100 | % | |||
Rail Bearing Service Corporation
|
Virginia | 100 | % | |||
Timken Alcor Aerospace Technologies, Inc.
|
Delaware | 100 | % | |||
Timken (China) Investment Co., Ltd.
|
China | 100 | % | |||
Timken Bearing Services South
Africa (Proprietary) Limited
|
South Africa | 74 | % | |||
Timken Canada GP Inc.
|
Canada | 100 | % | |||
Timken Canada LP
|
Canada | 100 | % | |||
Timken Rail Service Company
|
Russia | 100 | % | |||
Timken Receivables Corporation
|
Delaware | 100 | % | |||
Timken Romania S.A.
|
Romania | 98.9 | % | |||
The Timken Corporation
|
Ohio | 100 | % | |||
The Timken Service & Sales Co.
|
Ohio | 100 | % | |||
Timken Servicios Administrativos
S.A. de C.V.
|
Mexico | 100 | % | |||
Timken Singapore Pte. Ltd.
|
Singapore | 100 | % | |||
Timken South Africa (Pty.) Ltd.
|
South Africa | 100 | % | |||
Timken de Venezuela C.A.
|
Venezuela | 100 | % | |||
Yantai Timken Company Limited
|
China | 100 | % |
Percentage of | ||||||
voting securities | ||||||
State or sovereign | owned directly | |||||
power under laws | or indirectly | |||||
Name | of which organized | by Company | ||||
Timken Argentina Sociedad De
Responsabilidad Limitada
|
Argentina | 100 | % | |||
Timken (Shanghai) Distribution & Sales Co., Ltd.
|
China | 100 | % | |||
Timken France SAS
|
France | 100 | % | |||
Timken Industries SAS
|
France | 100 | % | |||
Timken GmbH
|
Germany | 100 | % | |||
Timken Coventry Limited
|
England | 100 | % | |||
Timken Luxembourg Holdings SARL
|
Luxembourg | 100 | % | |||
Timken Canada Holdings ULC
|
Canada | 100 | % | |||
Timken Holdings, LLC
|
Delaware | 100 | % | |||
Timken SH Holdings ULC
|
Canada | 100 | % | |||
Timken U.S. Holdings LLC
|
Delaware | 100 | % | |||
Timken (Wuxi) Bearings Company Limited
|
China | 100 | % | |||
TTC Asia Limited
|
Cayman Islands | 100 | % | |||
Bearing Inspection, Inc.
|
California | 100 | % | |||
Timken (Mauritius) Limited
|
Mauritius | 100 | % | |||
Timken India Manufacturing Private Limited
|
India | 100 | % | |||
Timken (Chengdu) Aerospace and Precision
Products Co., Ltd
|
China | 100 | % | |||
Timken Aerospace Transmissions, LLC
|
Connecticut | 100 | % | |||
Timken (Gibraltar) Limited
|
Gibraltar | 100 | % | |||
Timken Australia Holdings ULC
|
Canada | 100 | % | |||
Timken (Hong Kong) Holding Limited
|
China | 100 | % | |||
Timken Mexico Holdings LLC
|
Delaware | 100 | % | |||
FirstBridge (Shanghai) Trading Co.
|
China | 100 | % | |||
Jiangsu TWB Bearing Co., Ltd.
|
China | 100 | % | |||
PTBridge (Hong Kong) Investment Limited
|
Hong Kong | 100 | % | |||
Timken (Bermuda) L.P.
|
Bermuda | 100 | % | |||
Timken (Gibraltar) 2 Limited
|
Gibraltar | 100 | % | |||
Timken Boring Specialties, LLC
|
Delaware | 100 | % | |||
Timken Europe (2) B.V.
|
Netherlands | 100 | % | |||
Timken Global Treasury SARL
|
Luxembourg | 100 | % | |||
Timken LLC
|
Delaware | 100 | % | |||
Timken US LLC
|
Delaware | 100 | % |
(1) | Registration Statement (Form S-3 No. 333-17503) pertaining to The Timken Company Dividend Reinvestment Plan | |
(2) | Registration Statements (Form S-8 No. 333-441155; Form S-8 No. 333-157722) pertaining to the OH&R Investment Plan | |
(3) | Registration Statement (Form S-8 No. 333-43847) pertaining to The Timken Company International Stock Ownership Plan | |
(4) | Registration Statement (Form S-8 No. 333-103753) pertaining to The Timken Company Savings and Stock Investment Plan for Torrington Non-Bargaining Associates | |
(5) | Registration Statement (Form S-8 No. 333-103754) pertaining to The Timken Company Savings Plan for Torrington Bargaining Associates | |
(6) | Registration Statement (Form S-8 No. 333-105333) pertaining to The Timken Share Incentive Plan | |
(7) | Registration Statements (Form S-8 No. 333-108840; Form S-8 No. 333-157720) pertaining to The Hourly Pension Investment Plan | |
(8) | Registration Statement (Form S-8 No. 333-108841) pertaining to the Voluntary Investment Program for Hourly Employees of Latrobe Steel Company | |
(9) | Registration Statements (Form S-8 No. 333-113390; Form S-8 No 333-157721) pertaining to The Voluntary Investment Pension Plan for Hourly Employees of The Timken Company | |
(10) | Registration Statement (Form S-8 No. 333-113391) pertaining to The Timken Company Latrobe Steel Company Savings and Investment Pension Plan | |
(11) | Registration Statements (Form S-8 No. 333-141067; Form S-8 No. 333-157718) pertaining to The Timken Company Employee Savings Plan | |
(12) | Registration Statement (Form S-8 No. 333-141068) pertaining to the MPB Employees Savings Plan | |
(13) | Registration Statements (Form S-8 No. 333-150846; Form S-8 No. 333-157719) pertaining to the Company Savings Plan for the Employees of Timken France | |
(14) | Registration Statement (Form S-8 No. 333-150847) pertaining to The Timken Company Long-Term Incentive Plan (as amended and restated as of February 5, 2008) | |
(15) | Registration Statement (Form S-8 No. 333-157717) pertaining to the MPB Corporation Employees Savings Plan | |
(16) | Registration Statement (Form S-3 No. 333-161798) pertaining to $250,000,000 in Senior Notes |
/s/ John M. Ballbach
|
/s/ Joseph W. Ralston | |||
|
|
|||
|
||||
/s/ Phillip R. Cox
|
/s/ John P. Reilly | |||
|
||||
Phillip R. Cox
|
John P. Reilly | |||
|
||||
/s/ Glenn A. Eisenberg
|
/s/ Frank C. Sullivan | |||
|
||||
Glenn A. Eisenberg
|
Frank C. Sullivan | |||
(Principal Financial Officer)
|
||||
|
||||
/s/ James W. Griffith
|
/s/ John M. Timken, Jr. | |||
|
||||
James W. Griffith
|
John M. Timken, Jr. | |||
(Principal Executive Officer)
|
||||
|
||||
/s/ Jerry J. Jasinowski
|
/s/ Ward J. Timken | |||
|
||||
Jerry J. Jasinowski
|
Ward J. Timken | |||
|
||||
/s/ John A. Luke, Jr.
|
/s/ Ward J. Timken, Jr. | |||
|
||||
John A. Luke, Jr.
|
Ward J. Timken, Jr. | |||
|
||||
/s/ J. Ted Mihaila
|
/s/ Jacqueline F. Woods | |||
|
||||
J. Ted Mihaila
|
Jacqueline F. Woods | |||
(Principal Accounting Officer)
|
Date:
|
February 25, 2010 | |||
|
||||
By
|
/s/ James W. Griffith
|
|||
James W. Griffith, | ||||
President and Chief Executive Officer | ||||
(Principal Executive Officer) |
Date:
|
February 25, 2010 | |||
|
||||
By
|
/s/ Glenn A. Eisenberg
|
|||
Glenn A. Eisenberg | ||||
Executive Vice President | ||||
Finance and Administration | ||||
(Principal Financial Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report. |
Date:
|
February 25, 2010 | |||
|
||||
By
|
/s/ James W. Griffith | |||
|
|
|||
James W. Griffith | ||||
President and Chief Executive Officer | ||||
(Principal Executive Officer) | ||||
|
||||
By
|
/s/ Glenn A. Eisenberg
|
|||
Glenn A. Eisenberg | ||||
Executive Vice President- | ||||
Finance and Administration | ||||
(Principal Financial Officer) |