Spinoff Spinoff Balance Sheet (Tables)

12 Months Ended

Dec. 31, 2016

Spinoff Balance Sheet [Line Items]

Spinoff Balance Sheet [Table Text Block]

Note 2 - Discontinued Operations

On June 30, 2014, the Company completed the separation of its steel business through the Spinoff. The Company's Board of Directors declared a distribution of all outstanding common shares of TimkenSteel through a dividend. At the close of business on June 30, 2014, the Company's shareholders received one common share of TimkenSteel for every two common shares of the Company they held as of the close of business on June 23, 2014.

At the time of the Spinoff, the Company and TimkenSteel entered into certain transitional relationships, including an 18-month commercial supply agreement for TimkenSteel to supply the Company with certain steel products and other relationships.

The operating results, net of tax, included a one-time transaction cost of approximately $57.1 million for 2014 in connection with the separation of the two companies. The cost primarily consisted of consulting and professional fees associated with preparing for and executing the Spinoff, as well as lease cancellation fees. In addition to the one time transaction costs, the Company incurred approximately $15 million of capital expenditures related to the Spinoff in 2014.

The following table presents the results of operations for TimkenSteel that have been reclassified to discontinued operations for all periods presented:

	Year Ended December 31, 2014
Net sales	$	786.2
Cost of goods sold	642.0
Gross profit	144.2
Selling, administrative and general expenses	46.4
Separation costs	57.1
Interest expense, net	0.8
Other (income) expense, net	(0.1		)
Income before income taxes	40.0
Income tax expense	16.0
Income from discontinued operations	$	24.0