Continued Dumping and Subsidy Act (Notes)

12 Months Ended

Dec. 31, 2016

CDSOA [Abstract]

Continued Dumping And Subsidy Offset Act [Text Block]

Note 21 - Continued Dumping and Subsidy Offset Act

CDSOA provides for distribution of monies collected by U.S. Customs and Border Protection on entries of merchandise subject to antidumping orders that entered the U.S. prior to October 1, 2007, to qualifying domestic producers where the domestic producers have continued to invest in their technology, equipment and people. During the twelve months ended December 31 2016, the Company recognized pretax CDSOA income, net of related expenses of $59.6 million.

In September 2002, the World Trade Organization ruled that CDSOA payments are not consistent with international trade rules. In February 2006, U.S. legislation was enacted that ended CDSOA distributions for imports covered by antidumping duty orders entering the United States after September 30, 2007. Instead, any such antidumping duties collected would remain with the U.S. Treasury.

CDSOA has been the subject of significant litigation since 2002, and U.S. Customs has withheld CDSOA distributions in recent years while litigation was ongoing. In recent months, much of the CDSOA litigation that involves antidumping orders where Timken is a qualifying domestic producer has concluded.

During 2016, the Company received CDSOA distributions of $60.6 million, representing funds that would have been distributed to the Company at the end of calendar years 2011 through 2016.

While some of the challenges to CDSOA have been resolved, others are still in litigation. Since there continue to be legal challenges to CDSOA, U.S. Customs has advised all affected domestic producers that it is possible that CDSOA distributions could be subject to clawback. Management of the Company believes that the likelihood of any clawback is remote.