Retirement Benefit Plans

3 Months Ended

Mar. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Retirement Benefit Plans

Note 12 - Retirement Benefit Plans

The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans. The amounts for the three months ended March 31, 2016 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2015 and represent the Company’s best estimate of the period’s proportionate share of the amounts to be recorded for the year ending December 31, 2016.

	U.S. Plans						International Plans						Total
	Three Months Ended March 31,						Three Months Ended March 31,						Three Months Ended March 31,
	2016			2015			2016			2015			2016			2015
Components of net periodic benefit cost:
Service cost	$	3.3		$	3.9		$	0.4		$	0.7		$	3.7		$	4.6
Interest cost	6.7			13.0			2.8			3.1			9.5			16.1
Expected return on plan assets	(7.5		)	(17.9		)	(2.7		)	(4.2		)	(10.2		)	(22.1		)
Amortization of prior service cost	0.4			0.8			—			—			0.4			0.8
Amortization of net actuarial loss	3.7			9.6			0.8			1.3			4.5			10.9
Pension settlements	—			213.6			—			—			—			213.6
Net periodic benefit cost	$	6.6		$	223.0		$	1.3		$	0.9		$	7.9		$	223.9

On November 30, 2015, The Timken Company Pension Plan (the Plan) purchased a group annuity contract from Prudential Insurance Company of America (Prudential) to pay and administer future pension benefits for approximately 3,400 U.S. Timken retirees. Pension settlement charges of $1.2 million incurred for the three months ended March 31, 2016 were due to professional fees associated with the implementation of this group annuity contract.

On January 23, 2015, the Timken-Latrobe-MPB-Torrington Retirement Plan purchased a group annuity contract from Prudential to pay and administer future pension benefits for approximately 5,000 U.S. Timken retirees. The Company transferred approximately $575 million of the Company's pension obligations and $635 million of pension assets to Prudential in this transaction. In addition to the purchase of the group annuity contract, the Company made lump sum distributions to new retirees of $11 million in 2015. As a result of the purchase of the group annuity contract and the lump sum distributions, the Company incurred pension settlement charges of $215.2 million, including professional fees of $1.6 million, for the three months ended March 31, 2015.

The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three months ended March 31, 2016 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2015 and represent the Company’s best estimate of the period's proportionate share of the amounts to be recorded for the year ending December 31, 2016.

	Three Months Ended March 31,
	2016			2015
Components of net periodic benefit cost:
Service cost	$	0.1		$	0.1
Interest cost	2.7			2.7
Expected return on plan assets	(1.6		)	(1.8		)
Amortization of prior service cost	0.2			0.2
Net periodic benefit cost	$	1.4		$	1.2