10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q  

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to                          

Commission file number: 1-1169

THE TIMKEN COMPANY

(Exact name of registrant as specified in its charter)

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)

234.262.3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Shares, without par value	TKR	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   

 Yes  ☐    No   ☒

Indicate the number of shares outstanding of each of the issuer's classes of common shares, as of the latest practicable date.

Class	Outstanding at June 30, 2021
Common Shares, without par value	76,258,559 shares

Table of Contents

THE TIMKEN COMPANY

INDEX TO FORM 10-Q REPORT

			PAGE
I.	PART I.
	Item 1.	Financial Statements	1
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	44
	Item 4.	Controls and Procedures	44
II.	PART II.
	Item 1.	Legal Proceedings	45
	Item1A.	Risk Factors	45
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
	Item 6.	Exhibits	46

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE TIMKEN COMPANY AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
(Dollars in millions, except per share data)
Net sales	$	1,062.9	$	803.5	$	2,088.3	$	1,726.9
Cost of products sold	760.6		573.2		1,486.8		1,217.7
Gross Profit	302.3		230.3		601.5		509.2
Selling, general and administrative expenses	149.0		111.8		293.5		265.4
Impairment and restructuring charges	1.3		3.1		5.3		6.7
Operating Income	152.0		115.4		302.7		237.1
Interest expense	(15.3)		(18.9)		(30.2)		(36.0)
Interest income	0.7		0.6		1.2		2.1
Non-service pension and other postretirement income (expense)	1.4		(5.3)		5.4		(1.9)
Other (expense) income, net	(2.2)		(2.0)		(1.2)		2.1
Income Before Income Taxes	136.6		89.8		277.9		203.4
Provision for income taxes	29.4		28.0		54.7		57.6
Net Income	107.2		61.8		223.2		145.8
Less: Net income (loss) attributable to noncontrolling interest	2.4		(0.1)		5.1		3.2
Net Income Attributable to The Timken Company	$	104.8	$	61.9	$	218.1	$	142.6
Net Income per Common Share Attributable to The Timken Company   Common Shareholders
Basic earnings per share	$	1.38	$	0.82	$	2.87	$	1.89
Diluted earnings per share	$	1.36	$	0.82	$	2.82	$	1.88

See accompanying Notes to the Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income

(Unaudited) 

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
(Dollars in millions)
Net Income	$	107.2	$	61.8	$	223.2	$	145.8
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	23.2		24.5		(21.2)		(54.3)
Pension and postretirement liability adjustments	(1.7)		(1.5)		(3.3)		(2.8)
Change in fair value of marketable securities	—		0.5		—		0.1
Change in fair value of derivative financial instruments	(0.2)		(2.6)		2.0		1.6
Other comprehensive income (loss), net of tax	21.3		20.9		(22.5)		(55.4)
Comprehensive Income, net of tax	128.5		82.7		200.7		90.4
Less: comprehensive income (loss) attributable to noncontrolling interest	1.8		1.1		4.1		(3.1)
Comprehensive Income Attributable to The Timken Company	$	126.7	$	81.6	$	196.6	$	93.5

See accompanying Notes to the Consolidated Financial Statements.

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Table of Contents

Consolidated Balance Sheets

	(Unaudited)
(Dollars in millions)	June 30, 2021		December 31, 2020
ASSETS
Current Assets
Cash and cash equivalents	$	305.5	$	320.3
Restricted cash	0.8		0.8
Accounts receivable, less allowances (2021 – $16.9 million; 2020 – $16.5 million)	704.4		581.1
Unbilled receivables	100.4		110.9
Inventories, net	919.5		841.3
Deferred charges and prepaid expenses	34.2		39.9
Other current assets	130.2		106.0
Total Current Assets	2,195.0		2,000.3
Property, Plant and Equipment, net	1,025.1		1,035.6
Other Assets
Goodwill	1,034.8		1,047.6
Other intangible assets	704.2		741.4
Operating lease assets	115.3		118.2
Non-current pension assets	3.2		2.0
Deferred income taxes	70.9		77.0
Other non-current assets	17.7		19.5
Total Other Assets	1,946.1		2,005.7
Total Assets	$	5,166.2	$	5,041.6
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt	$	76.0	$	119.8
Current portion of long-term debt	11.1		10.9
Short-term operating lease liabilities	27.0		27.2
Accounts payable, trade	385.1		351.4
Salaries, wages and benefits	131.9		135.7
Income taxes payable	24.8		16.1
Other current liabilities	201.4		186.9
Total Current Liabilities	857.3		848.0
Non-Current Liabilities
Long-term debt	1,424.3		1,433.9
Accrued pension benefits	160.6		163.0
Accrued postretirement benefits	51.4		41.3
Long-term operating lease liabilities	72.5		75.5
Deferred income taxes	135.0		148.7
Other non-current liabilities	97.8		106.0
Total Non-Current Liabilities	1,941.6		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 shares, without par value:
Authorized – 200,000,000 shares
Issued (including shares in treasury) (2021 – 77,069,551 shares; 2020 – 75,834,668 shares)
Stated capital	40.7		40.7
Other paid-in capital	778.6		740.7
Retained earnings	1,510.9		1,339.5
Accumulated other comprehensive income	19.8		41.3
Treasury shares at cost (2021 – 810,992 shares; 2020 – 158,836 shares)	(59.1)		(9.3)
Total Shareholders’ Equity	2,290.9		2,152.9
Noncontrolling Interest	76.4		72.3
Total Equity	2,367.3		2,225.2
Total Liabilities and Equity	$	5,166.2	$	5,041.6

See accompanying Notes to the Consolidated Financial Statements.

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Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
	2021		2020
(Dollars in millions)
CASH PROVIDED (USED)
Operating Activities
Net income	$	223.2	$	145.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	85.2		84.0
Impairment charges	4.5		0.1
Loss on sale of assets	0.7		1.6
Acquisition-related gain	(0.6)		—
Deferred income tax benefit	(5.8)		(7.1)
Stock-based compensation expense	12.5		11.4
Pension and other postretirement benefit expense	0.5		8.2
Pension and other postretirement benefit contributions and payments	(15.0)		(8.6)
Changes in operating assets and liabilities:
Accounts receivable	(125.8)		(8.4)
Unbilled receivables	10.4		3.0
Inventories	(81.4)		41.3
Accounts payable, trade	41.2		(28.9)
Other accrued expenses	30.8		5.3
Income taxes	(1.6)		30.9
Other, net	—		25.0
Net Cash Provided by Operating Activities	178.8		303.6
Investing Activities
Capital expenditures	(60.5)		(56.5)
Acquisitions, net of cash received	0.1		(6.7)
Investments in short-term marketable securities, net	(13.8)		(1.6)
Other	0.3		0.1
Net Cash Used in Investing Activities	(73.9)		(64.7)
Financing Activities
Cash dividends paid to shareholders	(46.7)		(43.9)
Purchase of treasury shares	(26.3)		(42.3)
Proceeds from exercise of stock options	25.4		7.5
Payments related to tax withholding for stock-based compensation	(23.5)		(10.4)
Accounts receivable facility borrowings	66.1		10.0
Accounts receivable facility payments	(124.1)		(110.0)
Proceeds from long-term debt	135.0		550.0
Payments on long-term debt	(141.4)		(417.1)
Deferred financing costs	—		(1.6)
Short-term debt activity, net	16.6		26.5
Net Cash Used in Financing Activities	(118.9)		(31.3)
Effect of exchange rate changes on cash	(0.8)		(7.7)
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(14.8)		199.9
Cash, cash equivalents and restricted cash at beginning of year	321.1		216.2
Cash, Cash Equivalents and Restricted Cash at End of Period	$	306.3	$	416.1

See accompanying Notes to the Consolidated Financial Statements.

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Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions, except per share data)

Note 1 - Basis of Presentation

The accompanying Consolidated Financial Statements (unaudited) for The Timken Company (the "Company" or "Timken") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by the accounting principles generally accepted in the United States ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Note 2 - Significant Accounting Policies

The Company's significant accounting policies are detailed in "Note 1 - Significant Accounting Policies" of the Annual Report on Form 10-K for the year ended December 31, 2020.

Recent Accounting Pronouncements:

New Accounting Guidance Adopted:

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, “Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes,” which is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. This standard is effective for public companies in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted ASU 2019-12 effective January 1, 2021, and the impact of the adoption was not material to the Company's results of operations and financial condition.

New Accounting Guidance Issued and Not Yet Adopted:

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently assessing which of its various contracts will require an update for a new reference rate and will determine the timing for implementation of this guidance after completing that analysis.

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Table of Contents

Note 3 - Acquisitions

The Company completed one acquisition in 2020. On November 30, 2020, the Company completed the acquisition of the assets of Aurora Bearing Company ("Aurora"). With annual sales of approximately $30 million, Aurora serves a diverse range of industrial sectors, including aerospace and defense, racing, off-highway equipment and packaging. Aurora is headquartered in Montgomery, Illinois. The total purchase price for this acquisition was $17.2 million, including a post-closing net working capital adjustment. Based on markets and customers served, results for Aurora are reported in both the Mobile Industries segment and the Process Industries segment.

The following table presents the purchase price allocation at fair value, net of cash acquired, for the Aurora acquisition as of June 30, 2021: 

	Initial Purchase Price Allocation		Adjustments		Purchase Price Allocation
Assets:
Accounts receivable, net	$	2.7	$	—	$	2.7
Inventories, net	16.4		—		16.4
Other current assets	0.1		0.1		0.2
Property, plant and equipment, net	10.9		—		10.9
Total assets acquired	$	30.1	$	0.1	$	30.2
Liabilities:
Accounts payable, trade	$	0.8	$	—	$	0.8
Other current liabilities	0.9		(0.4)		0.5
Total liabilities assumed	1.7		(0.4)		1.3
Net assets acquired	$	28.4	$	0.5	$	28.9

As a result of applying the accounting rules on business combinations, the Company recognized a bargain purchase gain of $11.7 million on the acquisition of Aurora. The Company recognized $0.6 million of the bargain purchase price gain during the first three months of 2021 primarily due to the net working capital adjustment. The Company believes it was able to negotiate a bargain purchase price for the business due to some historic operational performance challenges, as well as the seller's desire to exit the business in an expedited manner in an exclusive process with the Company.

In determining the fair value of the amounts above, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being valued. The estimation of fair value required significant judgment related to future net cash flows, discount rates, competitive trends, market comparisons and other factors. Inputs were generally determined by taking into account independent appraisals and historical data, supplemented by current and anticipated market conditions.

During the applicable measurement period, the Company will adjust assets and liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments had been completed on the acquisition date. The above purchase price allocation is subject to change as additional information concerning final asset and liability valuations is obtained. The primary area of the Aurora purchase price allocation that has not been finalized relates to the fair value of inventory. Any changes in fair value could affect the bargain purchase price gain recognized.

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Table of Contents

Note 4 - Revenue

The following table presents details deemed most relevant to the users of the financial statements about total revenue for the three and six months ended June 30, 2021 and 2020, respectively:

	Three Months Ended						Three Months Ended
	June 30, 2021						June 30, 2020
	Mobile		Process		Total		Mobile		Process		Total
United States	$	237.4	$	201.6	$	439.0	$	186.6	$	173.7	$	360.3
Americas, excluding the United States	52.3		49.1		101.4		26.8		29.3		56.1
Europe / Middle East / Africa	124.3		137.2		261.5		78.8		112.9		191.7
China	32.2		138.4		170.6		26.4		122.0		148.4
Asia-Pacific, excluding China	48.0		42.4		90.4		24.0		23.0		47.0
Net sales	$	494.2	$	568.7	$	1,062.9	$	342.6	$	460.9	$	803.5

	Six Months Ended						Six Months Ended
	June 30, 2021						June 30, 2020
	Mobile		Process		Total		Mobile		Process		Total
United States	$	480.3	$	387.8	$	868.1	$	424.8	$	366.3	$	791.1
Americas, excluding the United States	101.1		92.3		193.4		75.6		64.3		139.9
Europe / Middle East / Africa	251.4		264.4		515.8		187.5		228.5		416.0
China	66.6		262.7		329.3		48.2		203.0		251.2
Asia-Pacific, excluding China	99.3		82.4		181.7		73.2		55.5		128.7
Net sales	$	998.7	$	1,089.6	$	2,088.3	$	809.3	$	917.6	$	1,726.9

When reviewing revenue by sales channel, the Company separates net sales to original equipment manufacturers ("OEMs") from sales to distributors and end users. The following table presents the percent of revenue by sales channel for the six months ended June 30, 2021 and 2020, respectively:

	Six Months Ended
Revenue by sales channel	June 30, 2021	June 30, 2020
Original equipment manufacturers	61%	59%
Distribution/end users	39%	41%

In addition to disaggregating revenue by segment, geography and by sales channel as shown above, the Company believes information about the timing of transfer of goods or services, type of customer and distinguishing service revenue from product sales is also relevant. During the six months ended June 30, 2021 and June 30, 2020, approximately 9% and 13%, respectively, of total net sales were recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized as of a point in time. Approximately 4% and 5% of total net sales represented service revenue during each of the six months ended June 30, 2021 and June 30, 2020, respectively. Finally, the United States ("U.S.") government or its contractors represented approximately 7% and 9% of total net sales during the six months ended June 30, 2021 and June 30, 2020, respectively.

Remaining Performance Obligations:

Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed and excludes unexercised contract options. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $456.9 million at June 30, 2021.

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Note 4 - Revenue (continued)

Unbilled Receivables:

The following table contains a rollforward of unbilled receivables for the six months ended June 30, 2021 and the twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	110.9	$	129.2
Additional unbilled revenue recognized	179.4		393.6
Less: amounts billed to customers	(189.9)		(411.9)
Ending balance	$	100.4	$	110.9

There were no impairment losses recorded on unbilled receivables for the six months ended June 30, 2021 and June 30, 2020, respectively.

Note 5 - Segment Information

The primary measurement used by management to measure the financial performance of each segment is earnings before interest, taxes, depreciation and amortization ("EBITDA").

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales:
Mobile Industries	$	494.2	$	342.6	$	998.7	$	809.3
Process Industries	568.7		460.9		1,089.6		917.6
Net sales	$	1,062.9	$	803.5	$	2,088.3	$	1,726.9
Segment EBITDA:
Mobile Industries	$	67.3	$	38.8	$	146.9	$	113.9
Process Industries	141.2		126.3		272.2		233.8
Total EBITDA, for reportable segments	$	208.5	$	165.1	$	419.1	$	347.7
Unallocated corporate expense	(11.6)		(6.5)		(23.2)		(17.6)
Corporate pension and other postretirement benefit    related expense (1)	(3.5)		(8.8)		(4.4)		(8.8)
Acquisition-related gain (2)	—		—		0.6		—
Depreciation and amortization	(42.2)		(41.7)		(85.2)		(84.0)
Interest expense	(15.3)		(18.9)		(30.2)		(36.0)
Interest income	0.7		0.6		1.2		2.1
Income before income taxes	$	136.6	$	89.8	$	277.9	$	203.4

(1) Corporate pension and other postretirement benefit related expense represents actuarial gains and (losses) that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions or experience.

(2) The acquisition-related gain represents measurement period adjustments to the bargain purchase gain on the acquisition of Aurora, which closed on November 30, 2020. See Note 3 - Acquisitions for additional information.

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Note 6 - Income Taxes

The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur.

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Provision for income taxes	$	29.4		$	28.0		$	54.7		$	57.6
Effective tax rate	21.5		%	31.2		%	19.7		%	28.3		%

Income tax expense for the three and six months ended June 30, 2021 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the release of accruals for uncertain tax positions from the settlement of the 2017 and 2018 U.S. federal tax years and other foreign jurisdictions, and favorable U.S. permanent book-tax differences. These items were partially offset by the unfavorable impact of earnings in foreign jurisdictions with higher tax rates.

The effective tax rate of 21.5% for the three months ended June 30, 2021 was lower than the rate for the three months ended June 30, 2020 primarily due to the release of accruals for uncertain tax positions, discrete benefits on tax rate changes in foreign jurisdictions and a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the new elective Global Intangible Low Tax Income ("GILTI") high tax exemption rules.

The effective tax rate of 19.7% for the six months ended June 30, 2021 was lower than the rate for the six months ended June 30, 2020 primarily due to the release of accruals for uncertain tax positions, a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the tax impact from stock-based compensation awards and the new elective GILTI high tax exemption rules.

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Note 7 - Earnings Per Share

The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2021 and 2020, respectively:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net income attributable to The Timken Company	$	104.8	$	61.9	$	218.1	$	142.6
Less: undistributed earnings allocated to nonvested stock	—		—		—		—
Net income available to common shareholders for basic and diluted earnings per share	$	104.8	$	61.9	$	218.1	$	142.6
Denominator:
Weighted average number of shares outstanding - basic	76,122,257		75,078,207		75,969,569		75,298,356
Effect of dilutive securities:
Stock options and awards - based on the treasury stock method	1,131,900		620,082		1,288,192		733,693
Weighted average number of shares outstanding assuming dilution of stock options and awards	77,254,157		75,698,289		77,257,761		76,032,049
Basic earnings per share	$	1.38	$	0.82	$	2.87	$	1.89
Diluted earnings per share	$	1.36	$	0.82	$	2.82	$	1.88

The exercise prices for certain stock options that the Company has awarded exceeded the average market price of the Company’s common shares during certain periods presented. Such stock options are antidilutive and were not included in the computation of diluted earnings per share. The antidilutive stock options outstanding during the three months ended June 30, 2021 and 2020 were zero and 1,338,686, respectively. The antidilutive stock options outstanding during the six months ended June 30, 2021 and 2020 were zero and 1,353,254, respectively.

Note 8 - Inventories

The components of inventories at June 30, 2021 and December 31, 2020 were as follows:

	June 30, 2021		December 31, 2020
Manufacturing supplies	$	36.2	$	34.8
Raw materials	122.0		99.5
Work in process	352.6		320.3
Finished products	466.9		441.2
Subtotal	977.7		895.8
Allowance for obsolete and surplus inventory	(58.2)		(54.5)
Total Inventories, net	$	919.5	$	841.3

Inventories are valued at net realizable value, with approximately 61% valued on the first-in, first-out ("FIFO") method and the remaining 39% valued on the last-in, first-out ("LIFO") method. The majority of the Company's domestic inventories are valued on the LIFO method, and all the Company's international inventories are valued on the FIFO method.

The LIFO reserve at June 30, 2021 and December 31, 2020 was $185.1 million and $172.1 million, respectively. An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation.

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Note 9 - Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2021 were as follows:

	Mobile Industries		Process Industries		Total
Beginning balance	$	384.6	$	663.0	$	1,047.6
Foreign currency translation adjustments and other changes	(5.9)		(6.9)		(12.8)
Ending balance	$	378.7	$	656.1	$	1,034.8

The following table displays intangible assets as of June 30, 2021 and December 31, 2020:

	Balance at June 30, 2021						Balance at December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Customer relationships	$	526.4	$	(176.7)	$	349.7	$	532.2	$	(161.9)	$	370.3
Technology and know-how	273.9		(79.7)		194.2		277.2		(72.0)		205.2
Trade names	14.3		(9.2)		5.1		14.2		(8.8)		5.4
Capitalized software	277.5		(258.2)		19.3		276.4		(254.6)		21.8
Other	4.7		(3.9)		0.8		4.7		(3.7)		1.0
	$	1,096.8	$	(527.7)	$	569.1	$	1,104.7	$	(501.0)	$	603.7
Intangible assets not subject to amortization:
Trade names	$	126.4			$	126.4	$	129.0			$	129.0
FAA air agency certificates	8.7				8.7		8.7				8.7
	$	135.1			$	135.1	$	137.7			$	137.7
Total intangible assets	$	1,231.9	$	(527.7)	$	704.2	$	1,242.4	$	(501.0)	$	741.4

Amortization expense for intangible assets was $28.2 million and $28.1 million for the six months ended June 30, 2021 and 2020, respectively. Amortization expense for intangible assets is projected to be $57.5 million in 2021; $49.4 million in 2022; $46.3 million in 2023; $44.3 million in 2024; and $43.2 million in 2025.

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Note 10 - Financing Arrangements

Short-term debt at June 30, 2021 and December 31, 2020 was as follows:

	June 30, 2021		December 31, 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 2.10% at June 30, 2021 and 0.24% to 1.75% at December 31, 2020	76.0		61.8
Short-term debt	$	76.0	$	119.8

The Company has a $100 million Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"), which matures on November 30, 2021. The Company currently intends to renew or replace the Accounts Receivable Facility prior to its maturity. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited to certain borrowing base limitations; however, availability under the Accounts Receivable Facility was not reduced by any such borrowing base limitations at June 30, 2021. As of June 30, 2021, there were no outstanding borrowings under the Accounts Receivable Facility. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income.

The lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings up to $286.1 million in the aggregate. Most of these lines of credit are uncommitted. At June 30, 2021, the Company’s foreign subsidiaries had borrowings outstanding of $76.0 million and bank guarantees of $0.5 million, which reduced the aggregate availability under these facilities to $209.6 million.

Long-term debt at June 30, 2021 and December 31, 2020 was as follows:

	June 30, 2021		December 31, 2020
Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 1.46% and Euro of 1.48% at June 30, 2021 and U.S. Dollar of 2.01% and Euro of 1.48% at December 31, 2020	$	9.4	$	9.7
Variable-rate Term Loan(1), maturing on September 11, 2023, with an interest rate of 1.35% at June 30, 2021 and 1.63% at December 31, 2020	325.4		329.6
Fixed-rate Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875%	349.3		349.0
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02%	177.6		182.9
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50%	396.7		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%	17.5		18.8
Other	4.8		3.6
Total debt	$	1,435.4	$	1,444.8
Less: Current maturities	11.1		10.9
Long-term debt	$	1,424.3	$	1,433.9

(1) Net of discounts and fees

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Note 10 - Financing Arrangements (continued)

The Company entered into the Fourth Amended and Restated Credit Agreement ("Senior Credit Facility") on June 25, 2019. The Senior Credit Facility is a $650.0 million unsecured revolving credit facility, which matures on June 25, 2024. At June 30, 2021, the Company had $9.4 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $640.6 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. On May 27, 2020, the Senior Credit Facility was amended to, among other things, effectively increase the limit with respect to the consolidated leverage ratio. As amended, the consolidated leverage ratio is calculated using a net debt construct, netting unrestricted cash in excess of $25 million, instead of total debt. The change to the consolidated leverage ratio calculation was effective through June 30, 2021. In the third quarter of 2021, the calculation of the consolidated leverage ratio under the Senior Credit Facility will revert back to a total debt construct.

On September 11, 2018, the Company entered into a $350 million variable-rate term loan that matures on September 11, 2023 (the "2023 Term Loan"). Proceeds from the 2023 Term Loan were used to fund the acquisitions of Apiary Investments Holding Limited and Rollon S.p.A., which closed on September 1, 2018 and September 18, 2018, respectively. On July 12, 2019, the Company amended the 2023 Term Loan agreement to, among other things, align covenants and other terms with the Senior Credit Facility. On May 27, 2020, the 2023 Term Loan agreement was further amended to align the calculation of the consolidated leverage ratio and other terms with the Senior Credit Facility. The change to the consolidated leverage ratio calculation was effective through June 30, 2021. In the third quarter of 2021, the calculation of the consolidated leverage ratio under the 2023 Term Loan will revert back to a total debt construct.

At June 30, 2021, the Company was in full compliance with all applicable covenants on its outstanding debt.

In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to insurance contracts. At June 30, 2021, outstanding letters of credit totaled $41.9 million, most with expiration dates within 12 months.

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Note 11 - Contingencies

The Company and certain of its subsidiaries have been identified as potentially responsible parties for investigation and remediation under the Comprehensive Environmental Response, Compensation and Liability Act, known as the Superfund, or similar state laws with respect to certain sites. Claims for investigation and remediation have been asserted against numerous other entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation.

On December 28, 2004, the United States Environmental Protection Agency (“USEPA”) sent Lovejoy, Inc. ("Lovejoy") a Special Notice Letter that identified Lovejoy as a potentially responsible party, together with at least 14 other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”). The Company acquired Lovejoy in 2016. Lovejoy’s Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and the Illinois Environmental Protection Agency (“IEPA”) allege there have been one or more releases or threatened releases of hazardous substances, allegedly including, but not limited to, a release or threatened release on or from Lovejoy's property, at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of response costs. Lovejoy’s allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. All previously pending property damage and personal injury lawsuits against Lovejoy related to the Site were settled or dismissed prior to our acquisition of Lovejoy.

The Company had total environmental accruals of $5.2 million and $5.3 million for various known environmental matters that are probable and reasonably estimable at June 30, 2021 and December 31, 2020, respectively, which includes the Lovejoy matter described above. These accruals were recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties.

Product Warranties:

In addition to the contingencies above, the Company provides limited warranties on certain of its products. The product warranty liability included in "Other current liabilities" on the Consolidated Balance Sheets was $10.9 million and $9.4 million at June 30, 2021 and December 31, 2020, respectively. The increase in the liability since year end primarily relates to accruals that are based on the best estimate of costs for future claims based on products sold that are still under warranty. The estimate of these accruals is based on historical claims and expected trends that continue to mature.  Any significant change to these assumptions may be material to the results of operations in any particular period in which that change occurs.

The following is a rollforward of the consolidated product warranty accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	9.4	$	7.5
Expense	5.0		9.4
Payments	(3.5)		(7.5)
Ending balance	$	10.9	$	9.4

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Note 12 - Equity

The following tables present the changes in the components of equity for the three and six months ended June 30, 2021 and 2020, respectively:

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Non controlling Interest
Balance at March 31, 2021	$	2,250.1	$	40.7	$	761.3	$	1,429.0	$	(2.1)	$	(53.4)	$	74.6
Net income	107.2						104.8						2.4
Foreign currency translation adjustment	23.2								23.8				(0.6)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $0.5 million)	(1.7)								(1.7)
Change in fair value of derivative financial    instruments, net of reclassifications	(0.2)								(0.2)
Dividends – $0.30 per share	(22.9)						(22.9)
Stock-based compensation expense	6.0				6.0
Stock option exercise activity	11.3				11.3
Payments related to tax withholding for    stock-based compensation	(5.7)										(5.7)
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Non controlling Interest
Balance at December 31, 2020	$	2,225.2	$	40.7	$	740.7	$	1,339.5	$	41.3	$	(9.3)	$	72.3
Net income	223.2						218.1						5.1
Foreign currency translation adjustment	(21.2)								(20.2)				(1.0)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $1.1 million)	(3.3)								(3.3)
Change in fair value of derivative financial    instruments, net of reclassifications	2.0								2.0
Dividends – $0.59 per share	(46.7)						(46.7)
Stock-based compensation expense	12.5				12.5
Stock purchased at fair market value	(26.3)										(26.3)
Stock option exercise activity	25.4				25.4
Payments related to tax withholding for    stock-based compensation	(23.5)										(23.5)
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4

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Note 12 - Equity (continued)

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Non controlling Interest
Balance at March 31, 2020	$	1,900.3	$	53.1	$	920.1	$	1,964.8	$	(118.9)	$	(1,001.7)	$	82.9
Net income (loss)	61.8						61.9						(0.1)
Foreign currency translation adjustment	24.5								23.3				1.2
Pension and other postretirement liability    adjustments (net of income tax benefit    of $0.5 million)	(1.5)								(1.5)
Unrealized loss on marketable securities	0.5								0.5
Change in fair value of derivative financial    instruments, net of reclassifications	(2.6)								(2.6)
Dividends – $0.28 per share	(21.0)						(21.0)
Stock-based compensation expense	5.8				5.8
Restricted share activity	—				(1.5)						1.5
Payments related to tax withholding for    stock-based compensation	(0.2)										(0.2)
Balance at June 30, 2020	$	1,967.6	$	53.1	$	924.4	$	2,005.7	$	(99.2)	$	(1,000.4)	$	84.0

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Non controlling Interest
Balance at December 31, 2019	$	1,954.8	$	53.1	$	937.6	$	1,907.4	$	(50.1)	$	(979.8)	$	86.6
Cumulative effect of ASU 2016-13    (net of income tax benefit of $0.2 million)	(0.4)						(0.4)
Net income	145.8						142.6						3.2
Foreign currency translation adjustment	(54.3)								(48.0)				(6.3)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $1.0 million)	(2.8)								(2.8)
Unrealized loss on marketable securities	0.1								0.1
Change in fair value of derivative financial    instruments, net of reclassifications	1.6								1.6
Change in ownership of noncontrolling    interest	0.5												0.5
Dividends – $0.56 per share	(43.9)						(43.9)
Stock-based compensation expense	11.4				11.4
Stock purchased at fair market value	(42.3)										(42.3)
Stock option exercise activity	7.5				(0.9)						8.4
Restricted share activity	—				(23.7)						23.7
Payments related to tax withholding for    stock-based compensation	(10.4)										(10.4)
Balance at June 30, 2020	$	1,967.6	$	53.1	$	924.4	$	2,005.7	$	(99.2)	$	(1,000.4)	$	84.0

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Note 13 - Impairment and Restructuring Charges

Impairment and restructuring charges by segment are comprised of the following:

For the three months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.0	$	0.1	$	—	$	1.1
Severance and related benefit costs	—		0.1		—		0.1
Exit costs	0.1		—		—		0.1
Total	$	1.1	$	0.2	$	—	$	1.3

For the six months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.1	$	3.4	$	—	$	4.5
Severance and related benefit costs	—		0.6		—		0.6
Exit costs	0.2		—		—		0.2
Total	$	1.3	$	4.0	$	—	$	5.3

For the three months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Severance and related benefit costs	$	1.5	$	1.7	$	—	$	3.2
Exit costs	(0.3)		0.2		—		(0.1)
Total	$	1.2	$	1.9	$	—	$	3.1

For the six months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	—	$	0.1	$	—	$	0.1
Severance and related benefit costs	1.6		4.2		0.1		5.9
Exit costs	0.3		0.4		—		0.7
Total	$	1.9	$	4.7	$	0.1	$	6.7

The following discussion explains the impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above.

Coronavirus ("COVID-19") Pandemic Cost Reduction Initiatives:

During the three months ended June 30, 2020, the Company recorded $2.0 million in severance and related benefit costs to eliminate approximately 20 salaried positions. Of the $2.0 million charge, $0.6 million related to the Mobile Industries segment and $1.4 million related to the Process Industries segment.

Mobile Industries:

On July 19, 2021, the Company announced the closure of its bearing manufacturing facility in Villa Carcina, Italy. The Company will be transferring the manufacturing of its single-row tapered roller bearing production to other bearing facilities in Europe, Asia and the United States. The plant is expected to close by the end of 2021 and is expected to affect approximately 110 employees. The Company expects to incur approximately $7 million to $10 million of expenses related to this closure. Ahead of this announcement, the Company reviewed assets for impairment. As a result, the Company recorded impairment charges of $1.0 million during the three months ended June 30, 2021.

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Note 13 - Impairment and Restructuring Charges (continued)

On October 16, 2019, the Company announced the reorganization of its bearing manufacturing facility in Gaffney, South Carolina. The Company transferred its high-volume bearing production and roller production to other Timken manufacturing facilities in the United States. The transfer of these operations was substantially completed by the end of the third quarter of 2020 and affected approximately 150 employees. The Company expected to incur approximately $8 million to $10 million of pretax costs in total related to this reorganization. During the six months ended June 30, 2020, the Company recognized severance and related benefits of $0.3 million and exit costs of $0.3 million related to this reorganization. The Company incurred cumulative pretax costs related to this reorganization of $7.8 million as of June 30, 2021, including rationalization costs recorded in cost of products sold.

Process Industries:

On February 4, 2020, the Company announced the closure of its chain manufacturing facility in Indianapolis, Indiana. This facility was part of the Diamond Chain Company ("Diamond Chain") acquisition completed on April 1, 2019. The Company will be transferring the manufacturing of its Diamond Chain product line to its chain facility in Fulton, Illinois. The chain plant is expected to close by the end of the fourth quarter of 2021 and is expected to affect approximately 240 employees. The Company expects to hire approximately 130 full-time positions in Fulton, Illinois and expects to incur approximately $10 million to $12 million of expenses related to this closure. During the three months ended June 30, 2021 and June 30, 2020, the Company recorded severance and related benefit costs of $0.3 million and $0.3 million, respectively, related to this closure. During the six months ended June 30, 2021 and June 30, 2020, the Company recorded severance and related benefit costs of $0.6 million and $2.2 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $8.5 million as of June 30, 2021, including rationalization costs recorded in cost of products sold.

In addition, the Company recorded impairment charges of $3.3 million related to certain engineering-related assets used in the business during the three months ended March 31, 2021. Management concluded no further investment would be made in these assets and as a result, reduced the value to zero.

Consolidated Restructuring Accrual:

The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	8.0	$	2.7
Expense	0.8		20.8
Payments	(2.5)		(15.5)
Ending balance	$	6.3	$	8.0

The restructuring accrual at June 30, 2021 was included in other current liabilities on the Consolidated Balance Sheets.

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Note 14 - 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 and six months ended June 30, 2021 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2021.

	U.S. Plans				International Plans				Total
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2021		2020		2021		2020		2021		2020
Components of net periodic benefit    cost (credit):
Service cost	$	2.3	$	2.7	$	0.5	$	0.4	$	2.8	$	3.1
Interest cost	4.5		5.3		1.1		1.3		5.6		6.6
Expected return on plan assets	(6.1)		(6.4)		(2.6)		(2.1)		(8.7)		(8.5)
Amortization of prior service cost	0.3		0.4		0.1		0.1		0.4		0.5
Recognition of net actuarial losses	3.5		8.8		—		—		3.5		8.8
Net periodic benefit cost (credit)	$	4.5	$	10.8	$	(0.9)	$	(0.3)	$	3.6	$	10.5

	U.S. Plans				International Plans				Total
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020		2021		2020
Components of net periodic benefit    cost (credit):
Service cost	$	4.8	$	5.4	$	1.0	$	0.8	$	5.8	$	6.2
Interest cost	8.9		10.5		2.2		2.8		11.1		13.3
Expected return on plan assets	(12.2)		(12.7)		(5.1)		(4.3)		(17.3)		(17.0)
Amortization of prior service cost	0.6		0.8		0.1		0.1		0.7		0.9
Recognition of net actuarial losses	4.4		8.8		—		—		4.4		8.8
Net periodic benefit cost (credit)	$	6.5	$	12.8	$	(1.8)	$	(0.6)	$	4.7	$	12.2

The Company currently expects to make contributions and payments related to its global defined benefit pension plans totaling approximately $15 million in 2021. Approximately $9.6 million of this amount related to the 2021 payout of deferred compensation in June 2021 to a former executive officer of the Company. The payment triggered a remeasurement of the pension obligation for one of the Company's U.S. defined benefit pension plans during the six months ended June 30, 2021. In addition, the Company made lump sum payments to new retirees in 2021 in excess of annual interest and service costs for two of its other U.S. defined benefit pension plans as of June 30, 2021. These payments triggered a remeasurement of assets and obligations for these U.S. defined benefit pension plans during the six months ended June 30, 2021. As a result of these remeasurements, the Company recognized net actuarial losses of $3.5 million and $4.4 million during the three and six months ended June 30, 2021, respectively.

During the three and six months ended June 30, 2020, the Company recognized actuarial losses of $8.8 million. The remeasurement was a result of expected lump sum payments to new retirees exceeding service and interest costs for one of the Company's U.S. defined benefit pension plans.

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Note 15 - Other Postretirement Benefit Plans

The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and six months ended June 30, 2021 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2021.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Components of net periodic benefit credit:
Service cost	$	0.1	$	0.1	$	0.1	$	0.1
Interest cost	0.3		0.5		0.7		1.0
Expected return on plan assets	—		(0.1)		—		(0.2)
Amortization of prior service credit	(2.5)		(2.5)		(5.0)		(4.9)
Net periodic benefit credit	$	(2.1)	$	(2.0)	$	(4.2)	$	(4.0)

In January 2021, the Company transferred the remaining $11.1 million in an existing Voluntary Employee Beneficiary Association ("VEBA") trust for certain retiree medical benefits to a second VEBA trust for the payment of certain active employees’ medical benefits. The Company utilized all of the assets in the second trust during the six months ended June 30, 2021.

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Note 16 - Accumulated Other Comprehensive Income (Loss)

The following tables present details about components of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, respectively:

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at March 31, 2021	$	(62.0)	$	61.8	$	—	$	(1.9)	$	(2.1)
Other comprehensive income (loss) before    reclassifications and income taxes	23.2		(0.1)		—		(2.1)		21.0
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(2.1)		—		1.7		(0.4)
Income tax benefit	—		0.5		—		0.2		0.7
Net current period other comprehensive    income (loss), net of income taxes	23.2		(1.7)		—		(0.2)		21.3
Noncontrolling interest	0.6		—		—		—		0.6
Net current period comprehensive income (loss),    net of income taxes and noncontrolling    interest	23.8		(1.7)		—		(0.2)		21.9
Balance at June 30, 2021	$	(38.2)	$	60.1	$	—	$	(2.1)	$	19.8

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		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	(21.2)		(0.1)		—		(0.7)		(22.0)
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(4.3)		—		3.4		(0.9)
Income tax benefit (expense)	—		1.1		—		(0.7)		0.4
Net current period other comprehensive    (loss) income, net of income taxes	(21.2)		(3.3)		—		2.0		(22.5)
Noncontrolling interest	1.0		—		—		—		1.0
Net current period comprehensive (loss) income,    net of income taxes and noncontrolling    interest	(20.2)		(3.3)		—		2.0		(21.5)
Balance at June 30, 2021	$	(38.2)	$	60.1	$	—	$	(2.1)	$	19.8

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Note 16 - Accumulated Other Comprehensive Income (Loss) (continued)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at March 31, 2020	$	(186.6)	$	65.6	$	(0.4)	$	2.5	$	(118.9)
Other comprehensive income (loss) before    reclassifications and income taxes	24.5		—		0.7		(2.2)		23.0
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(2.0)		—		(1.3)		(3.3)
Income tax benefit (expense)	—		0.5		(0.2)		0.9		1.2
Net current period other comprehensive    income (loss), net of income taxes	24.5		(1.5)		0.5		(2.6)		20.9
Noncontrolling interest	(1.2)		—		—		—		(1.2)
Net current period comprehensive income (loss),    net of income taxes and noncontrolling    interest	23.3		(1.5)		0.5		(2.6)		19.7
Balance at June 30, 2020	$	(163.3)	$	64.1	$	0.1	$	(0.1)	$	(99.2)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at December 31, 2019	$	(115.3)	$	66.9	$	—	$	(1.7)	$	(50.1)
Other comprehensive (loss) income before    reclassifications and income taxes	(54.3)		0.2		0.2		4.2		(49.7)
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(4.0)		—		(1.9)		(5.9)
Income tax benefit (expense)	—		1.0		(0.1)		(0.7)		0.2
Net current period other comprehensive    (loss) income, net of income taxes	(54.3)		(2.8)		0.1		1.6		(55.4)
Noncontrolling interest	6.3		—		—		—		6.3
Net current period comprehensive (loss) income,    net of income taxes and noncontrolling    interest	(48.0)		(2.8)		0.1		1.6		(49.1)
Balance at June 30, 2020	$	(163.3)	$	64.1	$	0.1	$	(0.1)	$	(99.2)

Other comprehensive income (loss) before reclassifications and income taxes includes the effect of foreign currency.

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Note 17 - Fair Value

Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy:

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.

The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	305.5	$	303.5	$	2.0	$	—
Restricted cash	0.8		0.8		—		—
Short-term investments	52.0		—		52.0		—
Foreign currency forward contracts	0.9		—		0.9		—
Total Assets	$	359.2	$	304.3	$	54.9	$	—
Liabilities:
Foreign currency forward contracts	$	3.4	$	—	$	3.4	$	—
Total Liabilities	$	3.4	$	—	$	3.4	$	—

	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 forward contracts	1.1		—		1.1		—
Total Assets	$	359.8	$	319.4	$	40.4	$	—
Liabilities:
Foreign currency forward contracts	$	8.1	$	—	$	8.1	$	—
Total Liabilities	$	8.1	$	—	$	8.1	$	—

Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at the redemption value. Short-term investments are investments with maturities between four months and one year, and generally are valued at amortized cost, which approximates fair value. A portion of the cash and cash equivalents and short-term investments are valued based on net asset value. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts.

In addition, the Company remeasures certain assets at fair value, using Level 3 inputs, as a result of the occurrence of triggering events such as purchase accounting for acquisitions. See Note 3 - Acquisitions for further discussion.

No other material assets were measured at fair value on a nonrecurring basis during the six months ended June 30, 2021 and 2020, respectively.

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Note 17 - Fair Value (continued)

Financial Instruments:

The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable and short-term borrowings are a reasonable estimate of their fair value. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company's long-term variable-rate debt is a reasonable estimate of its fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $1,204.0 million and $1,220.7 million at June 30, 2021 and December 31, 2020, respectively. The carrying value of this debt was $1,095.7 million and $1,103.2 million at June 30, 2021 and December 31, 2020, respectively. The fair value of long-term fixed-rate debt was measured using Level 2 inputs.

The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments.

Note 18 - Derivative Instruments and Hedging Activities

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts on various foreign currencies are entered into in order to manage the foreign currency exchange rate risk associated with certain of the Company's commitments denominated in foreign currencies. From time to time, interest rate swaps are used to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings.

The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as cash flow hedges of fixed-rate borrowings.

On September 8, 2020, the Company entered into a $100 million floating-to-fixed rate swap on the 2023 Term Loan, which hedges the change in the 1-month LIBOR rate between October 30, 2020 and September 11, 2023 to a fixed rate. The Company’s risk management objective is to hedge the risk of changes in the monthly interest expense attributable to changes in the benchmark interest rate.

On September 15, 2020, the Company designated €54.5 million of its €150.0 million fixed-rate senior unsecured notes, maturing on September 7, 2027 (the "2027 Notes"), as a hedge against its net investment in one of its European affiliates. The objective of the hedge transaction is to protect the net investment in the foreign operations against changes in the exchange rate between the U.S. dollar and the Euro. The net impact for the three and six months ended June 30, 2021, respectively, was a loss of $0.7 million and a gain of $1.9 million to accumulated comprehensive loss with a corresponding offset to other (expense) income, which partially offsets the impact of the foreign currency adjustment on the 2027 Notes.

The Company does not purchase or hold any derivative financial instruments for trading purposes. As of June 30, 2021 and December 31, 2020, the Company had $187.8 million and $173.2 million, respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 17 - Fair Value for the fair value disclosure of derivative financial instruments.

Cash Flow Hedging Strategy:

For certain derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings.

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Note 18 - Derivative Instruments and Hedging Activities (continued)

To protect against a reduction in the value of forecasted foreign currency cash flows resulting from export sales, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted cash flows denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. As of June 30, 2021 and December 31, 2020, the Company had $88.7 million and $86.9 million, respectively, of outstanding foreign currency forward contracts at notional value that were classified as cash flow hedges.

The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecast transactions is generally eighteen months or less.

Purpose for Derivative Instruments not designated as Hedging Instruments:

For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies typically are hedged with a forward contract at the inception of the loan with a maturity date corresponding to the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility.

As of June 30, 2021 and December 31, 2020, the Company had $99.1 million and $86.3 million, respectively, of outstanding foreign currency forward contracts at notional value that were not designated as hedging instruments. The following table presents the impact of derivative instruments not designated as hedging instruments for the three and six months ended June 30, 2021 and 2020, respectively, and the related location within the Consolidated Statements of Income:

		Amount of gain or (loss) recognized in income
		Three Months Ended June 30,				Six Months Ended June 30,
Derivatives not designated as hedging instruments:	Location of gain or (loss) recognized in income	2021		2020		2021		2020
Foreign currency forward contracts	Other income (expense), net	$	(0.9)	$	(3.7)	$	(0.7)	$	1.8

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Dollars in millions, except per share data)

OVERVIEW

Introduction:

The Timken Company designs and manages a growing portfolio of engineered bearings and power transmission products. With more than a century of innovation and increasing knowledge, the Company continuously improves the reliability and efficiency of global machinery and equipment to move the world forward. The Company’s growing product and services portfolio features many strong industrial brands, such as Timken®, Philadelphia Gear®, Drives®, Cone Drive®, Rollon®, Lovejoy®, Diamond®, BEKA® and Groeneveld®. Timken employs more than 17,000 people globally in 42 countries. The Company operates under two reportable segments: (1) Mobile Industries and (2) Process Industries. The following further describes these business segments:

•Mobile Industries serves OEM customers that manufacture off-highway equipment for the agricultural, mining and construction markets; on-highway vehicles including passenger cars, light trucks, and medium- and heavy-duty trucks; rail cars and locomotives; outdoor power equipment; rotorcraft and fixed-wing aircraft; and other mobile equipment. Beyond service parts sold to OEMs, aftermarket sales and services to individual end users, equipment owners, operators and maintenance shops are handled directly or through the Company's extensive network of authorized automotive and heavy-truck distributors.

•Process Industries serves OEM and end-user customers in industries that place heavy demands on the fixed operating equipment they make or use in heavy and other general industrial sectors. This includes metals, cement and aggregate production; power generation and renewable energy sources; oil and gas extraction and refining; pulp and paper and food processing; automation and robotics; and health and critical motion control equipment. Other applications include marine equipment, gear drives, cranes, hoists and conveyors. This segment also supports aftermarket sales and service needs through its global network of authorized industrial distributors and through the provision of services directly to end users.

Timken creates value by understanding customer needs and applying its know-how to serve a broad range of customers in attractive markets and industries across the globe. The Company’s business strengths include its product technology, end-market diversity, geographic reach and aftermarket mix. Timken collaborates with OEMs to improve equipment efficiency with its engineered products and captures subsequent equipment replacement cycles by selling largely through independent channels in the aftermarket. Timken focuses its international efforts and footprint in regions of the world where strong macroeconomic factors such as urbanization, infrastructure development and sustainability create demand for its products and services.

The Company's strategy has three primary elements:

Profitable Growth. The Company intends to expand into new and existing markets by leveraging its collective knowledge of metallurgy, friction management and power transmission to create value for Timken customers. Using a highly collaborative technical selling approach, the Company places particular emphasis on creating unique solutions for challenging and/or demanding applications. The Company intends to grow in attractive market sectors around the world, emphasizing those spaces that are highly fragmented, demand high service and value the reliability and efficiency offered by Timken products. The Company also targets applications that offer significant aftermarket demand, thereby providing product and services revenue throughout the equipment’s lifetime.

Operating With Excellence. Timken operates with a relentless drive for exceptional results and a passion for superior execution. The Company embraces a continuous improvement culture that is charged with increasing efficiency, lowering costs, eliminating waste, encouraging organizational agility and building greater brand equity to fuel growth. This requires the Company’s ongoing commitment to attract, retain and develop the best talent across the world.

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Capital Deployment to Drive Shareholder Value. The Company is intently focused on providing the highest returns for shareholders through its capital allocation framework, which includes: (1) investing in the core business through capital expenditures, research and development and other organic growth initiatives; (2) pursuing strategic acquisitions to broaden its portfolio and capabilities across diverse markets, with a focus on bearings, adjacent power transmission products and related services; (3) returning capital to shareholders through dividends and share repurchases; and (4) maintaining a strong balance sheet and sufficient liquidity. As part of this framework, the Company may also restructure, reposition or divest underperforming product lines or assets.

Overview:

	Three Months Ended June 30,
	2021		2020		$ Change		% Change
Net sales	$	1,062.9	$	803.5	$	259.4	32.3	%
Net income	107.2		61.8		45.4		73.5	%
Net income (loss) attributable to noncontrolling interest	2.4		(0.1)		2.5		NM
Net income attributable to The Timken Company	$	104.8	$	61.9	$	42.9	69.3	%
Diluted earnings per share	$	1.36	$	0.82	$	0.54	65.9	%
Average number of shares – diluted	77,254,157		75,698,289		—		2.1	%

	Six Months Ended June 30,
	2021		2020		$ Change		% Change
Net sales	$	2,088.3	$	1,726.9	$	361.4	20.9	%
Net income	223.2		145.8		77.4		53.1	%
Net income attributable to noncontrolling interest	5.1		3.2		1.9		59.4	%
Net income attributable to The Timken Company	$	218.1	$	142.6	$	75.5	52.9	%
Diluted earnings per share	$	2.82	$	1.88	$	0.94	50.0	%
Average number of shares – diluted	77,257,761		76,032,049		—		1.6	%

The increase in net sales for the three months ended June 30, 2021 compared with the three months ended June 30, 2020 was primarily driven by higher organic revenue across most market sectors, as well as the favorable impact of foreign currency exchange rate changes and the Aurora acquisition. The increase in net income for the three months ended June 30, 2021 compared with the three months ended June 30, 2020 was primarily due to the impact of higher volume, favorable manufacturing performance and the favorable impact of foreign currency exchange rate changes, partially offset by higher selling, general and administrative ("SG&A") expenses, higher material and logistics costs and unfavorable mix. In addition, there was lower restructuring and pension remeasurement charges and the tax rate was favorable in 2021 compared to 2020.

The increase in net sales for the six months ended June 30, 2021 compared with the six months ended June 30, 2020 was primarily driven by higher organic revenue across most market sectors, as well as the favorable impact of foreign currency exchange rate changes and the Aurora acquisition. The increase in net income for the six months ended June 30, 2021 compared with the six months ended June 30, 2020 was primarily due to the impact of higher volume and related manufacturing performance and the favorable impact of foreign currency exchange rate changes, partially offset by higher material and logistics costs, unfavorable mix, and higher SG&A expenses. In addition, there was lower restructuring and pension remeasurement charges and the tax rate was favorable in 2021 compared to 2020.

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Outlook:

The world continues to be impacted by the COVID-19 pandemic. The Company is adhering to mandates and other guidance from local governments and health authorities, including the World Health Organization and the Centers for Disease Control and Prevention. Timken has implemented risk mitigation plans across the enterprise to protect employees and reduce the risk of spreading the virus, while continuing to operate where permitted and to the extent practicable. The Company’s main priority continues to be the health of its employees and others in the communities where it does business.

The Company’s operations and financial results were adversely impacted during 2020 due to the COVID-19 pandemic. With vaccines now being administered around the world, conditions are improving. During the first half of 2021, the Company operated are near-normal levels. While Timken continued to experience some COVID-19 related supply chain disruptions and staffing issues, the Company was able to adequately serve customers and meet robust demand levels across most markets. The Company will continue to monitor, assess and seek to manage the uncertainty surrounding the COVID-19 pandemic. Timken’s outlook for 2021 assumes that COVID-19 conditions around the world will continue to improve as the year progresses.

The Company expects 2021 full-year revenue to be up approximately 19% compared to 2020, primarily due to higher organic revenue across both the Mobile Industries and Process Industries segments, as well as the favorable impact of foreign currency exchange rates, acquisitions and positive pricing. The Company's earnings are expected to be up significantly in 2021 compared with 2020, primarily due to the impact of higher volume and related manufacturing performance, the favorable impact of foreign currency exchange rate changes and lower restructuring expenses and a lower tax rate, partially offset by higher material and logistics costs, higher SG&A expenses and unfavorable mix.

The Company expects to generate cash from operating activities in the range of $450 million to $475 million in 2021, down from $577.6 million in 2020, as the impact of higher earnings is expected to be more than offset by the changes in working capital (i.e., a use of cash in 2021 versus a source of cash in 2020). The Company expects capital expenditures to be approximately $150 million (approximately 3.6% of sales) in 2021, compared with $122 million in 2020.

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THE STATEMENT OF INCOME

Sales:

	Three Months Ended June 30,
	2021		2020		$ Change		% Change
Net Sales	$	1,062.9	$	803.5	$	259.4	32.3	%

	Six Months Ended June 30,
	2021		2020		$ Change		% Change
Net Sales	$	2,088.3	$	1,726.9	$	361.4	20.9	%

Net sales increased for the three months ended June 30, 2021 compared with the three months ended June 30, 2020. The increase was primarily due to higher organic revenue of $213 million, the favorable impact of foreign currency exchange rate changes of $39 million and the benefit of the Aurora acquisition of $8 million. The higher organic revenue was driven by higher demand across both the Mobile Industries and Process Industries segments, as most end markets were up year-over-year, with the distribution, off-highway and automotive sectors posting the largest increases.

Net sales increased for the six months ended June 30, 2021 compared with the six months ended June 30, 2020. The increase was primarily due to higher organic revenue of $282 million, the favorable impact of foreign currency exchange rate changes of $64 million and the benefit of the Aurora acquisition of $16 million. The higher organic revenue was driven by higher demand across both the Mobile Industries and Process Industries segments, as most end markets were up year-over-year, with the off-highway, distribution, automotive and renewable energy sectors posting the largest increases.

Gross Profit:

	Three Months Ended June 30,
	2021			2020			$ Change		Change
Gross profit	$	302.3		$	230.3		$	72.0	31.3%
Gross profit % to net sales	28.4		%	28.7		%			(30)	bps

	Six Months Ended June 30,
	2021			2020			$ Change		Change
Gross profit	$	601.5		$	509.2		$	92.3	18.1%
Gross profit % to net sales	28.8		%	29.5		%			(70)	bps

Gross profit increased for the three months ended June 30, 2021 compared with the three months ended June 30, 2020, primarily due to the impact of higher volume of $87 million, the favorable impact of foreign currency exchange rate changes of $11 million, favorable manufacturing performance of $5 million and the favorable impact of acquisitions of $3 million. These increases were partially offset by higher materials and logistics costs of $27 million and unfavorable price/mix of $9 million.

Gross profit increased for the six months ended June 30, 2021 compared with the six months ended June 30, 2020, primarily due to the impact of higher volume of $115 million, the favorable impact of foreign currency exchange rate changes of $17 million, favorable manufacturing performance of $15 million and the favorable impact of acquisitions of $5 million. These increases were partially offset by higher materials and logistics costs of $39 million and unfavorable price/mix of $27 million.

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Selling, General and Administrative Expenses:

	Three Months Ended June 30,
	2021			2020			$ Change		Change
Selling, general and administrative expenses	$	149.0		$	111.8		$	37.2	33.3	%
Selling, general and administrative expenses % to net sales	14.0		%	13.9		%			10	bps

	Six Months Ended June 30,
	2021			2020			$ Change		Change
Selling, general and administrative expenses	$	293.5		$	265.4		$	28.1	10.6	%
Selling, general and administrative expenses % to net sales	14.1		%	15.4		%			(130)	bps

SG&A expenses increased in the three and six months ended June 30, 2021 compared with the three and six months ended June 30, 2020. The increase was primarily due to the favorable impact of 2020 cost reduction initiatives, including temporary salary reductions and work furloughs, that the Company implemented in the three and six months ended June 30, 2020 to reduce costs to combat the impact of the COVID-19 pandemic, which did not repeat in the current year. The increase was also due to the unfavorable impact of foreign currency exchange rate changes for the three and six months ended June 30, 2021.

Impairment and Restructuring:

	Three Months Ended June 30,
	2021		2020		$ Change		% Change
Impairment charges	$	1.1	$	—	$	1.1	NM
Severance and related benefit costs	0.1		3.2		(3.1)		(96.9)	%
Exit costs	0.1		(0.1)		0.2		(200.0)	%
Total	$	1.3	$	3.1	$	(1.8)	(58.1)	%

	Six Months Ended June 30,
	2021		2020		$ Change		% Change
Impairment charges	$	4.5	$	0.1	$	4.4	NM
Severance and related benefit costs	0.6		5.9		(5.3)		(89.8)	%
Exit costs	0.2		0.7		(0.5)		(71.4)	%
Total	$	5.3	$	6.7	$	(1.4)	(20.9)	%

Impairment and restructuring charges of $1.3 million and $5.3 million during the three and six months ended June 30, 2021 were comprised primarily of impairment charges related to the planned closure of the Company's Villa Carcina, Italy facility, as well as severance and related benefits associated with the planned closure of the Company's Indianapolis, Indiana chain plant. These initiatives reduced headcount and right-sized the Company's manufacturing footprint. In addition, impairment and restructuring during the six months ended June 30, 2021 included impairment charges related to certain engineering-related assets used in the business, Management concluded no further investment would be made in the engineered-related assets and as a result, reduced the value to zero.

Impairment and restructuring charges of $3.1 million and $6.7 million during the three and six months ended June 30, 2020 were comprised primarily of severance and related benefits associated with initiatives to reduce headcount and right-size the Company's manufacturing footprint, including planned closures of the Company's Indianapolis, Indiana chain plant and the reorganization of the Company's Gaffney, South Carolina bearing facility.

Refer to Note 13 - Impairment and Restructuring Charges in the Notes to the Consolidated Financial Statements for additional information.

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Other Income (Expense):

	Three Months Ended June 30,
	2021		2020		$ Change		% Change
Non-service pension and other postretirement income      (expense)	$	1.4	$	(5.3)	$	6.7	(126.4)	%
Other expense	(2.2)		(2.0)		(0.2)		10.0	%
Total other expense	$	(0.8)	$	(7.3)	$	6.5	(89.0)	%

	Six Months Ended June 30,
	2021		2020		$ Change		% Change
Non-service pension and other postretirement income     (expense)	$	5.4	$	(1.9)	$	7.3	(384.2)	%
Other (expense) income, net	(1.2)		2.1		(3.3)		(157.1)	%
Total other income	$	4.2	$	0.2	$	4.0	NM

Non-service pension and other postretirement income (expense) increased for the three and six months ended June 30, 2021 compared with the three and six months ended June 30, 2020. The increase was primarily due to lower actuarial losses due to remeasurement of pension plan assets and obligations in the three and six months ended June 30, 2021. The remeasurement was triggered by lump sum payments to new retirees exceeding annual service and interest costs for three of the Company's U.S. defined benefit pension plans. As a result of the remeasurements, the Company recognized net actuarial losses of $3.5 million and $4.4 million during the three and six months ended June 30, 2021, respectively. Actuarial losses of $8.8 million were realized in the second quarter of 2020 due to the remeasurement of pension plan assets and obligations for one of the Company's U.S. defined benefit pension plans. The remeasurement was required in the second quarter of 2020 as a result of lump sum payments to new retirees in 2020 that are expected to exceed annual service and interest costs. The remaining increase was due to lower interest costs for the Company's defined benefit pension plans. Refer to Note 14 - Retirement Benefit Plans and Note 15 - Other Postretirement Benefit Plans in the Notes to the Consolidated Financial Statements for additional information.

Other (expense) income, net decreased for the six months ended June 30, 2021 compared with the six months ended June 30, 2020, primarily due to lower insurance recoveries. In addition, there were foreign currency exchange losses recognized in the six months ended June 30, 2021, compared to foreign currency exchange gains in the six months ended June 30, 2020.

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Income Tax Expense:

	Three Months Ended June 30,
	2021			2020			$ Change		% Change
Provision for income taxes	$	29.4		$	28.0		$	1.4	5.0	%
Effective tax rate	21.5		%	31.2		%			(970)	bps

	Six Months Ended June 30,
	2021			2020			$ Change		% Change
Provision for income taxes	$	54.7		$	57.6		$	(2.9)	(5.0)	%
Effective tax rate	19.7		%	28.3		%			(860)	bps

Income tax expense increased $1.4 million for the three months ended June 30, 2021 compared with the three months ended June 30, 2020, primarily due to higher earnings. The impact was partially offset by discrete benefits on tax rate changes in foreign jurisdictions and a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the new elective GILTI high tax exemption rules.

Income tax expense decreased $2.9 million for the six months ended June 30, 2021 compared with the six months ended June 30, 2020, primarily due to the release of accruals for uncertain tax positions from the settlement of the 2017 and 2018 U.S. federal tax years and a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the tax impact from stock-based compensation awards and the new elective GILTI high tax exemption rules. This impact was partially offset by increased income taxes due to higher pre-tax earnings.

Refer to Note 6 - Income Taxes for more information on the computation of the income tax expense in interim periods.

BUSINESS SEGMENTS

The Company's reportable segments are business units that serve different industry sectors. While the segments operate using shared infrastructure, each reportable segment is managed to address specific customer needs in these diverse market sectors. The primary measurement used by management to measure the financial performance of each segment is EBITDA. Refer to Note 5 - Segment Information in the Notes to the Consolidated Financial Statements for the reconciliation of EBITDA by segment to consolidated income before income taxes.

The presentation of segment results below includes a reconciliation of the changes in net sales for each segment reported in accordance with U.S. GAAP to net sales adjusted to remove the effects of acquisitions completed in 2021 and 2020 and foreign currency exchange rate changes. The effects of acquisitions and foreign currency exchange rate changes on net sales are removed to allow investors and the Company to meaningfully evaluate the percentage change in net sales on a comparable basis from period to period.

The following item highlights the Company's only acquisition completed in 2020:

•The Company acquired Aurora during the fourth quarter of 2020. Results for Aurora are reported in the Mobile Industries and Process Industries segments based on customers and underlying market sectors served.

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Mobile Industries Segment:

	Three Months Ended June 30,
	2021			2020			$ Change		Change
Net sales	$	494.2		$	342.6		$	151.6	44.2%
EBITDA	$	67.3		$	38.8		$	28.5	73.5%
EBITDA margin	13.6		%	11.3		%			230	bps

	Three Months Ended June 30,
	2021		2020		$ Change		% Change
Net sales	$	494.2	$	342.6	$	151.6	44.2	%
Less: Acquisitions	4.6		—		4.6		NM
Currency	12.5		—		12.5		NM
Net sales, excluding the impact of acquisitions and currency	$	477.1	$	342.6	$	134.5	39.3	%

	Six Months Ended June 30,
	2021			2020			$ Change		Change
Net sales	$	998.7		$	809.3		$	189.4	23.4%
EBITDA	$	146.9		$	113.9		$	33.0	29.0%
EBITDA margin	14.7		%	14.1		%	$	—	60	bps

	Six Months Ended June 30,
	2021		2020		$ Change		% Change
Net sales	$	998.7	$	809.3	$	189.4	23.4	%
Less: Acquisitions	8.8		—		8.8		NM
Currency	21.8		—		21.8		NM
Net sales, excluding the impact of acquisitions and currency	$	968.1	$	809.3	$	158.8	19.6	%

The Mobile Industries segment's net sales, excluding the effects of acquisitions and foreign currency exchange rate changes, increased $134.5 million or 39.3% in the three months ended June 30, 2021 compared with the three months ended June 30, 2020, reflecting organic growth in the off-highway, automotive, heavy truck and rail sectors. These increases were partially offset by lower shipments in the aerospace sector. EBITDA increased by $28.5 million or 73.5% in the three months ended June 30, 2021 compared with the three months ended June 30, 2020, primarily due to the impact of higher volume, favorable manufacturing performance and the favorable impact of foreign currency exchange rate changes, partially offset by higher material and logistics costs, higher SG&A expenses and unfavorable mix.

The Mobile Industries segment's net sales, excluding the effects of acquisitions and foreign currency exchange rate changes, increased $158.8 million or 19.6% in the six months ended June 30, 2021 compared with the six months ended June 30, 2020, reflecting organic growth in the off-highway, automotive and heavy truck sectors. These increases were partially offset by lower shipments in the rail and aerospace sector. EBITDA increased by $33.0 million or 29.0% in the six months ended June 30, 2021 compared with the six months ended June 30, 2020, primarily due to the impact of higher volume, favorable manufacturing performance and the favorable impact of foreign currency exchange rate changes, partially offset by higher material and logistics costs and unfavorable mix.

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Process Industries Segment:

	Three Months Ended June 30,
	2021			2020			$ Change		Change
Net sales	$	568.7		$	460.9		$	107.8	23.4%
EBITDA	$	141.2		$	126.3		$	14.9	11.8%
EBITDA margin	24.8		%	27.4		%			(260)	bps

	Three Months Ended June 30,
	2021		2020		$ Change		% Change
Net sales	$	568.7	$	460.9	$	107.8	23.4	%
Less: Acquisitions	3.5		—		3.5		NM
Currency	26.1		—		26.1		NM
Net sales, excluding the impact of acquisitions and currency	$	539.1	$	460.9	$	78.2	17.0	%

	Six Months Ended June 30,
	2021			2020			$ Change		Change
Net sales	$	1,089.6		$	917.6		$	172.0	18.7%
EBITDA	$	272.2		$	233.8		$	38.4	16.4%
EBITDA margin	25.0		%	25.5		%			(50)	bps

	Six Months Ended June 30,
	2021		2020		$ Change		% Change
Net sales	$	1,089.6	$	917.6	$	172.0	18.7	%
Less: Acquisitions	7.2		—		7.2		NM
Currency	42.0		—		42.0		NM
Net sales, excluding the impact of acquisitions and currency	$	1,040.4	$	917.6	$	122.8	13.4	%

The Process Industries segment's net sales, excluding the effects of acquisitions and foreign currency exchange rate changes, increased $78.2 million or 17.0% in the three months ended June 30, 2021 compared with the three months ended June 30, 2020. The increase was primarily driven by increased demand in the distribution, renewable energy, general industrial, marine and heavy industries sectors. These increases were partially offset by lower services revenue. EBITDA increased $14.9 million or 11.8% in the three months ended June 30, 2021 compared with the three months ended June 30, 2020 primarily due to higher volume and the favorable impact of foreign currency exchange rate changes, partially offset by higher SG&A expenses and higher material and logistics costs.

The Process Industries segment's net sales, excluding the effects of acquisitions and foreign currency exchange rate changes, increased $122.8 million or 13.4% in the six months ended June 30, 2021 compared with the six months ended June 30, 2020. The increase was primarily driven by increased demand in the distribution, renewable energy and general industrial sectors, partially offset by lower marine and services revenue. EBITDA increased $38.4 million or 16.4% in the six months ended June 30, 2021 compared with the six months ended June 30, 2020 primarily due to higher volume, the favorable impact of foreign currency exchange rate changes and favorable manufacturing performance, partially offset by higher material and logistics costs, unfavorable mix and higher SG&A expenses.

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Unallocated Corporate:

	Three Months Ended June 30,
	2021			2020			$ Change		Change
Unallocated corporate expense	$	(11.6)		$	(6.5)		$	(5.1)	78.5	%
Unallocated corporate expense % to net sales	(1.1)		%	(0.8)		%			(30)	bps

	Six Months Ended June 30,
	2021			2020			$ Change		Change
Unallocated corporate expense	$	(23.2)		$	(17.6)		$	(5.6)	31.8	%
Unallocated corporate expense % to net sales	(1.1)		%	(1.0)		%			(10)	bps

Unallocated corporate expense increased in the three and six months ended June 30, 2021 compared with the three and six months ended June 30, 2020, primarily due to the favorable impact of COVID-19 related temporary cost reduction initiatives in 2020, which did not repeat in 2021.

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CASH FLOW

	Six Months Ended June 30,
	2021		2020		$ Change
Net cash provided by operating activities	$	178.8	$	303.6	$	(124.8)
Net cash used in investing activities	(73.9)		(64.7)		(9.2)
Net cash used in financing activities	(118.9)		(31.3)		(87.6)
Effect of exchange rate changes on cash	(0.8)		(7.7)		6.9
(Decrease) increase in cash, cash equivalents and restricted cash	$	(14.8)	$	199.9	$	(214.7)

Operating Activities:

The decrease in net cash provided by operating activities for the first six months of 2021 compared with the first six months of 2020 was primarily due to an increase in cash used for working capital items of $137.1 million, a reduction in the benefit of income taxes on cash of $31.2 million, an increase in pension and other postretirement benefit contributions and payments of $6.4 million and a decrease in other items. The decrease was partially offset by higher net income of $77.4 million. Refer to the tables below for additional detail of the impact of each line item on net cash provided by operating activities.

The following table displays the impact of working capital items on cash during the six months of 2021 and 2020, respectively:

	Six Months Ended June 30,
	2021		2020		$ Change
Cash (Used) Provided:
Accounts receivable	$	(125.8)	$	(8.4)	$	(117.4)
Unbilled receivables	10.4		3.0		7.4
Inventories	(81.4)		41.3		(122.7)
Trade accounts payable	41.2		(28.9)		70.1
Other accrued expenses	30.8		5.3		25.5
Cash (used in) provided by working capital items	$	(124.8)	$	12.3	$	(137.1)

The following table displays the impact of income taxes on cash during the six months of 2021 and 2020, respectively:

	Six Months Ended June 30,
	2021		2020		$ Change
Accrued income tax expense	$	54.7	$	57.6	$	(2.9)
Income tax payments	(53.1)		(32.5)		(20.6)
Other miscellaneous items	(9.0)		(1.3)		(7.7)
Cash (expense) benefit from income taxes	$	(7.4)	$	23.8	$	(31.2)

Investing Activities:

The increase in net cash used in investing activities for the first six months of 2021 compared with the first six months of 2020 was primarily due to an increase in cash used for investments in short-term marketable securities of $12.2 million and an increase in capital expenditures of $4.0 million, partially offset by a decrease in cash used for acquisitions of $6.8 million.

Financing Activities:

The change in net cash used in financing activities increased for the first six months of 2021 compared with the first six months of 2020 was primarily due to a decrease in net borrowings of $107.2 million. This change was partially offset by a decrease in the purchase of treasury shares of $16.0 million.

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LIQUIDITY AND CAPITAL RESOURCES

Reconciliation of total debt to net debt and the ratio of net debt to capital:

Net Debt:

	June 30, 2021		December 31, 2020
Short-term debt	$	76.0	$	119.8
Current portion of long-term debt	11.1		10.9
Long-term debt	1,424.3		1,433.9
Total debt	$	1,511.4	$	1,564.6
Less: Cash and cash equivalents	305.5		320.3
Net debt	$	1,205.9	$	1,244.3

Ratio of Net Debt to Capital:

	June 30, 2021			December 31, 2020
Net debt	$	1,205.9		$	1,244.3
Total equity	2,367.3			2,225.2
Net debt plus total equity (capital)	$	3,573.2		$	3,469.5
Ratio of net debt to capital	33.7		%	35.9		%

The Company presents net debt because it believes net debt is more representative of the Company's financial position than total debt due to the amount of cash and cash equivalents held by the Company and the ability to utilize such cash and cash equivalents to reduce debt if needed.

At June 30, 2021, the Company had strong liquidity with $305.5 million of cash and cash equivalents on the Consolidated Balance Sheet. $267.4 million of its $305.5 million of cash and cash equivalents resided in jurisdictions outside the United States. Repatriation of non-U.S. cash could be subject to taxes and some portion may be subject to governmental restrictions. Part of the Company's strategy is to grow in attractive market sectors, many of which are outside the United States. This strategy includes making investments in facilities, equipment and potential new acquisitions. The Company plans to fund these investments, as well as meet working capital requirements, with cash and cash equivalents and unused lines of credit within the geographic location of these investments where feasible.

On June 25, 2019, the Company entered into the Senior Credit Facility, which is a $650.0 million unsecured revolving credit facility that matures on June 25, 2024. At June 30, 2021, the Senior Credit Facility had outstanding borrowings of $9.4 million, which reduced the availability to $640.6 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. The maximum consolidated leverage ratio permitted under the Senior Credit Facility is 3.5 to 1.0. As of June 30, 2021, the Company's consolidated leverage ratio was 1.68 to 1.0 (based on the net debt construct described further below). The minimum consolidated interest coverage ratio permitted under the Senior Credit Facility is 3.0 to 1.0. As of June 30, 2021, the Company's consolidated interest coverage ratio was 12.08 to 1.0.

On May 27, 2020, both the Senior Credit Facility and the 2023 Term Loan were amended to, among other things, effectively increase the limit with respect to the consolidated leverage ratio.  As amended, the consolidated leverage ratio under both the Senior Credit Facility and the 2023 Term Loan was calculated using a net debt construct, netting unrestricted cash in excess of $25 million, instead of total debt. This change to the consolidated leverage ratio calculation was effective through June 30, 2021. In the third quarter of 2021, the calculation of the consolidated leverage ratio under the Senior Credit Facility and the 2023 Term Loan will revert back to a total debt construct.  

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The interest rate under the Senior Credit Facility is variable with a spread based on the Company's debt rating. The average rate on outstanding U.S. dollar borrowings was 1.46% and the average rate on outstanding Euro borrowings was 1.48% as of June 30, 2021. In addition, the Company pays a facility fee based on the applicable rate, which is variable with a spread based on the Company's debt rating, multiplied by the aggregate commitments of all of the lenders under the Senior Credit Facility. As of June 30, 2021, the Company carried investment-grade credit ratings with Moody's (Baa3), S&P Global (BBB-), and Fitch (BBB-).

The Company has a $100 million Accounts Receivable Facility, which matures on November 30, 2021. The Accounts Receivable Facility is subject to certain borrowing base limitations and is secured by certain domestic trade accounts receivable of the Company. Borrowings under the Accounts Receivable Facility were not reduced by any such borrowing base limitations at June 30, 2021. As of June 30, 2021, the Company had no outstanding borrowings under the Accounts Receivable Facility. The Company currently intends to renew or replace the Accounts Receivable Facility prior to its maturity.

Other sources of liquidity include uncommitted short-term lines of credit for certain of the Company's foreign subsidiaries, which provide for borrowings of up to approximately $286.1 million. At June 30, 2021, the Company had borrowings outstanding of $76.0 million and bank guarantees of $0.5 million, which reduced the aggregate availability under these facilities to approximately $209.6 million.

At June 30, 2021, the Company was in full compliance with all applicable covenants on its outstanding debt, and expects to remain in full compliance with its debt covenants.

The Company expects to generate cash from operating activities in the range of $450 million to $475 million in 2021, down from $577.6 million in 2020, as the impact of higher earnings is expected to be more than offset by the changes in working capital (i.e., a use of cash in 2021 versus a source of cash in 2020). The Company expects capital expenditures to be approximately $150 million (approximately 3.6% of sales) in 2021, compared with $122 million in 2020.

Financing Obligations and Other Commitments:

During the first six months of 2021, the Company made cash contributions and payments of $13.1 million to its global defined benefit pension plans and $1.9 million to its other postretirement benefit plans. The Company expects to make contributions to its global defined benefit plans of approximately $15 million in 2021. The Company expects to make payments of approximately $6 million to its other postretirement benefit plans in 2021. Excluding mark-to-market charges, the Company expects lower pension and other postretirement benefits expense in 2021.

The Company does not have any off-balance sheet arrangements with unconsolidated entities or other persons.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. The Company reviews its critical accounting policies throughout the year. The Company has concluded that there have been no significant changes to its critical accounting policies or estimates, as described in its Annual Report on Form 10-K for the year ended December 31, 2020, during the six months ended June 30, 2021.

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OTHER MATTERS

Foreign Currency:

Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rates of exchange prevailing during the reporting period. Related translation adjustments are reflected as a separate component of accumulated other comprehensive loss. Foreign currency gains and losses resulting from transactions, and the related hedging activity, are included in the Consolidated Statements of Income.

For the six months ended June 30, 2021, the Company recorded negative foreign currency translation adjustments of $20.2 million that decreased shareholders' equity, compared with negative foreign currency translation adjustments of $48.0 million that decreased shareholders' equity for the six months ended June 30, 2020. The foreign currency translation adjustments for the six months ended June 30, 2021 were negatively impacted by the strengthening of the U.S. dollar relative to other foreign currencies, including the Euro.

Foreign currency exchange gains and losses, net of hedging activity, resulting from transactions included in the Company's operating results for the three months ended June 30, 2021 totaled $3.5 million of net losses, compared with $0.6 million of net gains during the three months ended June 30, 2020. Foreign currency exchange gains and losses, net of hedging activity, resulting from transactions included in the Company's operating results for the six months ended June 30, 2021 totaled $5.6 million of net losses, compared with $0.7 million of net gains during the six months ended June 30, 2020.

Supplemental Non-GAAP Measures

In addition to results reported in accordance with U.S. GAAP, the Company provides information on non-GAAP financial measures. These non-GAAP financial measures include adjusted net income, adjusted earnings per share, adjusted EBITDA and adjusted EBITDA margins, segment adjusted EBITDA and segment adjusted EBITDA margins, ratio of net debt to adjusted EBITDA (for the trailing 12 months), net debt, ratio of net debt to capital and free cash flow. This information is intended to supplement GAAP financial measures and is not intended to replace GAAP financial measures. Net debt and the ratio of net debt to capital is disclosed in the "Liquidity and Capital Resources" section of Management's Discussion and Analysis of Financial Condition and Results of Operations.

Adjusted Net Income and Adjusted EBITDA:

Adjusted net income and adjusted earnings per share represent net income attributable to The Timken Company and diluted earnings per share, respectively, adjusted for impairment, restructuring and reorganization charges, acquisition costs, including transaction costs and the amortization of the inventory step-up, property losses and recoveries, actuarial gains and losses associated with the remeasurement of the Company's defined benefit pension and other postretirement benefit plans, gains and losses on the sale of real estate, gains and losses on divestitures, the income tax impact of these adjustments, as well as other income tax discrete items, and other items from time to time that are not part of the Company's core operations. Management believes adjusted net income and adjusted earnings per share are useful to investors as they are representative of the Company's core operations and are used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for items that are not part of the Company's core operations. These items include impairment, restructuring and reorganization charges, acquisition costs, including transaction costs and the amortization of the inventory step-up, property losses and recoveries, actuarial gains and losses associated with the remeasurement of the Company's defined benefit pension and other postretirement benefit plans, gains and losses on the sale of real estate, gains and losses on divestitures, and other items from time to time that are not part of the Company's core operations. Management believes adjusted EBITDA is useful to investors as it is representative of the Company's core operations and is used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.

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Reconciliation of net income to net income attributable to The Timken Company to adjusted net income, adjusted EBITDA and adjusted EBITDA Margin:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net Sales	$	1,062.9		$	803.5		$	2,088.3		$	1,726.9
Net Income Attributable to The Timken Company	104.8			61.9			218.1			142.6
Impairment, restructuring and reorganization        charges (1)	2.2			5.8			7.4			11.6
Corporate pension and other postretirement benefit        related expense (2)	3.5			8.8			4.4			8.8
Acquisition-related charges (3)	1.4			0.9			1.2			4.2
Acquisition-related gain (3)	—			—			(0.6)			—
Property (recoveries) losses and related expenses (4)	—			0.1			—			(2.1)
Noncontrolling interest of above adjustments	—			—			0.2			—
Provision for income taxes (5)	(5.8)			(0.5)			(17.9)			(3.4)
Adjusted Net Income	$	106.1		$	77.0		$	212.8		$	161.7
Net income (loss) attributable to noncontrolling      interest	2.4			(0.1)			5.1			3.2
Provision for income taxes (as reported)	29.4			28.0			54.7			57.6
Interest expense	15.3			18.9			30.2			36.0
Interest income	(0.7)			(0.6)			(1.2)			(2.1)
Depreciation and amortization expense (6)	42.0			40.5			84.7			81.4
Less: Noncontrolling interest	—			—			0.2			—
Less: Provision for income taxes (5)	(5.8)			(0.5)			(17.9)			(3.4)
Adjusted EBITDA	$	200.3		$	164.2		$	404.0		$	341.2
Adjusted EBITDA Margin (% of net sales)	18.8		%	20.4		%	19.3		%	19.8		%

Diluted earnings and adjusted earnings per share in the table below are based on net income attributable to The Timken Company and adjusted net income, respectively, in the table above.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Diluted earnings per share (EPS)	$	1.36	$	0.82	$	2.82	$	1.88
Adjusted EPS	$	1.37	$	1.02	$	2.75	$	2.13
Diluted Shares	77,254,157		75,698,289		77,257,761		76,032,049

Reconciliation of segment EBITDA to segment adjusted EBITDA and segment adjusted EBITDA margin:

	Three Months Ended June 30, 2021
	Mobile			Process			Unallocated Corporate			Total
Net Sales	$	494.2		$	568.7		$	—		$	1,062.9
EBITDA	67.3			141.2			(15.1)			193.4
Impairment, restructuring and reorganization      charges (1)	1.2			0.8			—			2.0
Corporate pension and other postretirement benefit      related expense (2)	—			—			3.5			3.5
Acquisition-related charges (3)	0.2			0.2			1.0			1.4
Adjusted EBITDA	$	68.7		$	142.2		$	(10.6)		$	200.3
Adjusted EBITDA Margin (% of net sales)	13.9		%	25.0		%	—		%	18.8		%

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	Six Months Ended June 30, 2021
	Mobile			Process			Unallocated Corporate			Total
Net Sales	$	998.7		$	1,089.6		$	—		$	2,088.3
EBITDA	146.9			272.2			(27.0)			392.1
Impairment, restructuring and reorganization      charges (1)	1.5			5.4			—			6.9
Corporate pension and other postretirement      benefit related expense (2)	—			—			4.4			4.4
Acquisition-related charges (3)	0.4			0.3			0.5			1.2
Acquisition-related gain (3)	—			—			(0.6)			(0.6)
Adjusted EBITDA	$	148.8		$	277.9		$	(22.7)		$	404.0
Adjusted EBITDA Margin (% of net sales)	14.9		%	25.5		%	—		%	19.3		%

	Three Months Ended June 30, 2020
	Mobile			Process			Unallocated Corporate		Total
Net Sales	$	342.6		$	460.9		$	—	$	803.5
EBITDA	38.8			126.3			(15.3)		149.8
Impairment, restructuring and reorganization      charges (1)	2.4			2.2			—		4.6
Corporate pension and other postretirement benefit    related expense (2)	—			—			8.8		8.8
Acquisition-related charges (3)	0.7			0.3			(0.1)		0.9
Property (recoveries) losses and related expenses (4)	0.1			—			—		0.1
Adjusted EBITDA	$	42.0		$	128.8		$	(6.6)	$	164.2
Adjusted EBITDA Margin (% of net sales)	12.3		%	27.9		%	NM		20.4		%

	Six Months Ended June 30, 2020
	Mobile			Process			Unallocated Corporate		Total
Net Sales	$	809.3		$	917.6		$	—	$	1,726.9
EBITDA	113.9			233.8			(26.4)		321.3
Impairment, restructuring and reorganization      charges (1)	3.6			5.3			0.1		9.0
Corporate pension and other postretirement benefit related expense (2)	—			—			8.8		8.8
Acquisition-related charges (3)	2.6			1.2			0.4		4.2
Property (recoveries) losses and related expenses (4)	(2.1)			—			—		(2.1)
Adjusted EBITDA	$	118.0		$	240.3		$	(17.1)	$	341.2
Adjusted EBITDA Margin (% of net sales)	14.6		%	26.2		%	NM		19.8		%

(1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; and (iii) severance related to cost reduction initiatives. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company’s core operations. 

(2) Corporate pension and other postretirement benefit related expense represents actuarial (gains) and losses that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial (gains) and losses in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement. Refer to Note 14 - Retirement Benefit Plans and Note 15 - Other Postretirement Benefit Plans for additional discussion.

(3) Acquisition-related charges represent measurement period adjustments to the bargain purchase gain on the acquisition of the assets of Aurora that closed on November 30, 2020 and deal-related expenses associated with completed and potential transactions, as well as any resulting inventory step-up impact.

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(4) Represents property loss and related expenses during the periods presented (net of insurance recoveries received in 2020) resulting from property loss that occurred during the first quarter of 2019 at one of the Company's warehouses in Knoxville, Tennessee and during the third quarter of 2019 at one of the Company's warehouses in Yantai, China.

(5) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods.

(6) Depreciation and amortization shown excludes depreciation recognized in reorganization charges, if any.

Free Cash Flow:

Free cash flow represents net cash provided by operating activities less capital expenditures. Management believes free cash flow is useful to investors because it is a meaningful indicator of cash generated from operating activities available for the execution of its business strategy.

Reconciliation of net cash provided by operating activities to free cash flow:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net cash provided by operating activities	$	147.1	$	247.4	$	178.8	$	303.6
Capital expenditures	(31.1)		(24.7)		(60.5)		(56.5)
Free cash flow	$	116.0	$	222.7	$	118.3	$	247.1

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Ratio of Net Debt to Adjusted EBITDA:

The ratio of net debt to adjusted EBITDA for the trailing twelve months represents total debt less cash and cash equivalents divided by adjusted EBITDA for the trailing twelve months. The Company presents net debt to adjusted EBITDA because it believes it is more representative of the Company's financial position as it is reflective of the Company's ability to cover its net debt obligations with results from its core operations. Net income for the trailing twelve months ended June 30, 2021 and December 31, 2020 was $369.8 million and $292.4 million, respectively. Net debt to adjusted EBITDA for the trailing twelve months was 1.7 at June 30, 2021, compared with 1.9 at December 31, 2020.

Reconciliation of Net income to Adjusted EBITDA for the trailing twelve months:

	Twelve Months Ended
	June 30, 2021		December 31, 2020
Net income	$	369.8	$	292.4
Provision for income taxes	101.0		103.9
Interest expense	61.8		67.6
Interest income	(2.8)		(3.7)
Depreciation and amortization	168.3		167.1
Consolidated EBITDA	698.1		627.3
Adjustments:
Impairment, restructuring and reorganization charges (1)	$	23.8	$	25.9
Corporate pension and other postretirement benefit related expense (2)	14.1		18.5
Acquisition-related charges (3)	0.7		3.7
Acquisition-related gain (4)	(11.7)		(11.1)
Gain on sale of real estate	(0.4)		(0.4)
Property losses (recoveries) and related expenses (5)	(3.4)		(5.5)
Tax indemnification and related items	0.5		0.5
Total Adjustments	23.6		31.6
Adjusted EBITDA	$	721.7	$	658.9
Net Debt	$	1,205.9	$	1,244.3
Ratio of Net Debt to Adjusted EBITDA	1.7		1.9

(1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants and (iii) severance related to cost reduction initiatives. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges.  However, management believes these actions are not representative of the Company’s core operations.

(2) Corporate pension and other postretirement benefit related expense represents actuarial (gains) and losses that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial (gains) and losses in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement.

(3) Acquisition-related charges represent deal-related expenses associated with completed and potential transactions, as well as any resulting inventory step-up impact.

(4) The acquisition-related gain represents a bargain purchase gain on the acquisition of the assets of Aurora that closed on November 30, 2020.

(5) Represents property loss and related expenses during the periods presented (net of insurance recoveries received in 2020) resulting from property loss that occurred during the first quarter of 2019 at one of the Company's warehouses in Knoxville, Tennessee and during the third quarter of 2019 at one of the Company's warehouses in Yantai, China.

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FORWARD-LOOKING STATEMENTS

Certain statements set forth in this Form 10-Q and in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 that are not historical in nature (including the Company's forecasts, beliefs and expectations) are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, Management's Discussion and Analysis contains numerous forward-looking statements. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “outlook,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Form 10-Q. The Company cautions readers that actual results may differ materially from those expressed or implied in forward-looking statements made by or on behalf of the Company due to a variety of factors, such as:

•deterioration in world economic conditions, or in economic conditions in any of the geographic regions in which the Company or its customers or suppliers conduct business, including adverse effects from a global economic slowdown, terrorism, or hostilities. This includes: political risks associated with the potential instability of governments and legal systems in countries in which the Company or its customers or suppliers conduct business, changes in currency valuations and recent world events that have increased the risks posed by international trade disputes, tariffs and sanctions;

•negative impacts to the Company's business, results of operations, financial position or liquidity, disruption to the Company's supply chains, negative impacts to customer demand or operations, and availability and health of employees, as a result of COVID-19 or other pandemics and associated governmental measures such as restrictions on travel and manufacturing operations;

•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 rapid changes in customer demand, disruptions to the Company's supply chain, logistical issues associated with port closures or congestion, delays or increased costs, the effects of customer or supplier bankruptcies or liquidations, the impact of changes in industrial business cycles, the effects of distributor inventory corrections reflecting de-stocking of the supply chain and whether conditions of fair trade continue in the Company's markets;

•competitive factors, including changes in market penetration, increasing price competition by existing or new foreign and domestic competitors, the introduction of new products or services by existing and new competitors, and new technology that may impact the way the Company’s products are produced, sold or distributed;

•changes in operating costs. This includes: the effect of changes in the Company’s manufacturing processes; changes in costs associated with varying levels of operations and manufacturing capacity; availability and cost of raw materials and energy; changes in the expected costs associated with product warranty claims; changes resulting from inventory management and cost reduction initiatives; the effects of unplanned plant shutdowns; the effects of government-imposed restrictions meant to address climate change; and changes in the cost of labor and benefits;

•the success of the Company’s operating plans, announced programs, initiatives and capital investments; the ability to integrate acquired companies and to address material issues not uncovered during the Company's due diligence review; and the ability of acquired companies to achieve satisfactory operating results, including results being accretive to earnings, realization of synergies and expected cash flow generation;

•the Company’s ability to maintain appropriate relations with unions or works councils that represent Company associates in certain locations in order to avoid disruptions of business and to maintain the continued service of our management and other key employees;

•unanticipated litigation, claims, investigations or assessments. This includes: claims, investigations or problems related to intellectual property, product liability or warranty, foreign export and trade laws, competition and anti-bribery laws, environmental or health and safety issues, data privacy and taxes;

•changes in worldwide financial and capital markets, including availability of financing and interest rates on satisfactory terms, which affect the Company’s cost of funds and/or ability to raise capital, as well as customer demand and the ability of customers to obtain financing to purchase the Company’s products or equipment that contain the Company’s products;

•the Company's ability to satisfy its obligations and comply with covenants under its debt agreements, maintain favorable credit ratings and its ability to renew or refinance borrowings on favorable terms;

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•the impact on the Company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; and

•those items identified under Item 1A. "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 or this Form 10-Q.

Additional risks relating to the Company's business, the industries in which the Company operates, or the Company's common shares may be described from time to time in the Company's filings with the Securities and Exchange Commission. All of these risk factors are difficult to predict, are subject to material uncertainties that may affect actual results and may be beyond the Company's control.

Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered to be a complete list. Except as required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Refer to information appearing under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q. Furthermore, a discussion of market risk exposures is included in Part II, Item 7A. Quantitative and Qualitative Disclosure about Market Risk, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. There have been no material changes in reported market risk since the inclusion of this discussion in the Company’s Annual Report on Form 10-K referenced above.

ITEM 4. CONTROLS AND PROCEDURES

(a)Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)). Based upon that evaluation, the principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b)Changes in Internal Control Over Financial Reporting

During the Company’s fiscal quarter ended June 30, 2021, there have been no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in various claims and legal actions arising in the ordinary course of business. SEC regulations require us to disclose certain information about environmental proceedings when a governmental authority is a party to the proceedings if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to such regulations, the Company uses a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required as we believe matters under this threshold are not material to the Company. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

Item 1A. Risk Factors

The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, included a detailed discussion of our risk factors. There have been no material changes to the risk factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Investors should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Common Shares

The following table provides information about purchases by the Company of its common shares during the quarter ended June 30, 2021.

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)
4/1/2021 - 4/30/2021	2,552	$	85.36	—	9,950,000
5/1/2021 - 5/31/2021	61,126	88.09		—	9,950,000
6/1/2021 - 6/30/2021	638	86.35		—	9,950,000
Total	64,316	$	87.96	—

(1)Of the shares purchased in April, May, and June, 2,552, 61,126, and 638, respectively, represent common shares of the Company that were owned and tendered by employees to exercise stock options and to satisfy withholding obligations in connection with the exercise of stock options or vesting of restricted shares.

(2)For shares tendered in connection with the vesting of restricted shares, the average price paid per share is an average calculated using the daily high and low of the Company's common shares as quoted on the New York Stock Exchange at the time of vesting. For shares tendered in connection with the exercise of stock options, the price paid is the real-time trading stock price at the time the options are exercised.

(3)On February 12, 2021, the Company's Board of Directors approved a new share purchase plan, effective March 1, 2021, pursuant to which the Company may purchase up to ten million of its common shares, in the aggregate. This share purchase plan expires on February 28, 2026. Under this plan, the Company may purchase shares from time to time in open market purchases or privately negotiated transactions, and it may make all or part of the purchases pursuant to accelerated share repurchases or Rule 10b5-1 plans. The previous share purchase plan expired on February 28, 2021.

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Item 6. Exhibits

31.1	Certification of Richard G. Kyle, President and Chief Executive Officer (principal executive officer) of The Timken Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Philip D. Fracassa, Executive Vice President and Chief Financial Officer (principal financial officer and principal accounting officer) of The Timken Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certifications of Richard G. Kyle, President and Chief Executive Officer (principal executive officer) and Philip D. Fracassa, Executive Vice President and Chief Financial Officer (principal financial officer and principal accounting officer) of The Timken Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Financial statements from the quarterly report on Form 10-Q of The Timken Company for the quarter ended June 30, 2021 filed on August 2, 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 and (v) the Notes to the Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	THE TIMKEN COMPANY
Date: August 2, 2021	By: /s/ Richard G. Kyle
	Richard G. Kyle President and Chief Executive Officer (Principal Executive Officer)
Date: August 2, 2021	By: /s/ Philip D. Fracassa
	Philip D. Fracassa Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

47

EX-31.1

Exhibit 31.1

Principal Executive Officer’s Certifications

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Richard G. Kyle, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of The Timken Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2021

By: /s/ Richard G. Kyle

Richard G. Kyle
President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Principal Financial Officer’s Certifications

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Philip D. Fracassa, certify that:

1.I have reviewed this quarterly report on Form 10-Q of The Timken Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2021

By: /s/ Philip D. Fracassa

Philip D. Fracassa
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

EX-32

Exhibit 32

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of The Timken Company (the “Company”) on Form 10-Q for the period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(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: August 2, 2021

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)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Cover Document	6 Months Ended
	Jun. 30, 2021 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000098362
Amendment Flag	false
Entity File Number	1-1169
Entity Registrant Name	TIMKEN CO
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-0577130
Entity Address, Address Line One	4500 Mount Pleasant Street NW
Entity Address, City or Town	North Canton
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44720-5450
City Area Code	234
Local Phone Number	262.3000
Title of 12(b) Security	Common Shares, without par value
Trading Symbol	TKR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	76,258,559

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Cost of products sold	$ 760.6	$ 573.2	$ 1,486.8	$ 1,217.7
Gross Profit	302.3	230.3	601.5	509.2
Selling, general and administrative expenses	149.0	111.8	293.5	265.4
Impairment and restructuring charges	1.3	3.1	5.3	6.7
Operating Income	152.0	115.4	302.7	237.1
Interest expense	(15.3)	(18.9)	(30.2)	(36.0)
Interest income	0.7	0.6	1.2	2.1
Non-service pension and other postretirement income (expense)	1.4	(5.3)	5.4	(1.9)
Other (expense) income, net	(2.2)	(2.0)	(1.2)	2.1
Income Before Income Taxes	136.6	89.8	277.9	203.4
Provision for income taxes	29.4	28.0	54.7	57.6
Net Income	107.2	61.8	223.2	145.8
Less: Net income (loss) attributable to noncontrolling interest	2.4	(0.1)	5.1	3.2
Net Income Attributable to The Timken Company	$ 104.8	$ 61.9	$ 218.1	$ 142.6
Net Income per Common Share Attributable to The Timken Company Common Shareholders
Basic earnings per share (in dollars per share)	$ 1.38	$ 0.82	$ 2.87	$ 1.89
Diluted earnings per share (in dollars per share)	$ 1.36	$ 0.82	$ 2.82	$ 1.88
Net sales	$ 1,062.9	$ 803.5	$ 2,088.3	$ 1,726.9

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income	$ 107.2	$ 61.8	$ 223.2	$ 145.8
Other comprehensive income, net of tax:
Foreign currency translation adjustments	23.2	24.5	(21.2)	(54.3)
Pension and postretirement liability adjustments	(1.7)	(1.5)	(3.3)	(2.8)
Change in fair value of marketable securities		0.5		0.1
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(0.2)	(2.6)	2.0	1.6
Other comprehensive income (loss), net of tax	21.3	20.9	(22.5)	(55.4)
Comprehensive Income, net of tax	128.5	82.7	200.7	90.4
Less: comprehensive income (loss) attributable to noncontrolling interest	1.8	1.1	4.1	(3.1)
Comprehensive Income Attributable to The Timken Company	$ 126.7	$ 81.6	$ 196.6	$ 93.5

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 305.5	$ 320.3
Restricted cash	0.8	0.8
Accounts receivable, less allowances (2021 – $16.9 million; 2020 – $16.5 million)	704.4	581.1
Unbilled receivables	100.4	110.9
Inventories, net	919.5	841.3
Deferred charges and prepaid expenses	34.2	39.9
Other current assets	130.2	106.0
Total Current Assets	2,195.0	2,000.3
Property, Plant and Equipment, net	1,025.1	1,035.6
Other Assets
Goodwill	1,034.8	1,047.6
Other intangible assets	704.2	741.4
Operating lease assets	115.3	118.2
Non-current pension assets	3.2	2.0
Deferred income taxes	70.9	77.0
Other non-current assets	17.7	19.5
Total Other Assets	1,946.1	2,005.7
Assets, Total	5,166.2	5,041.6
Current Liabilities
Short-term debt	76.0	119.8
Current portion of long-term debt	11.1	10.9
Short-term operating lease liabilities	27.0	27.2
Accounts payable, trade	385.1	351.4
Salaries, wages and benefits	131.9	135.7
Income taxes payable	24.8	16.1
Other current liabilities	201.4	186.9
Total Current Liabilities	857.3	848.0
Non-Current Liabilities
Long-term debt	1,424.3	1,433.9
Accrued pension benefits	160.6	163.0
Accrued postretirement benefits	51.4	41.3
Long-term operating lease liabilities	72.5	75.5
Deferred income taxes	135.0	148.7
Other non-current liabilities	97.8	106.0
Total Non-Current Liabilities	1,941.6	1,968.4
Shareholders' Equity
Class I and II Serial Preferred Stock, without par value: Authorized – 10,000,000 shares each class, none issued	0.0	0.0
Stated capital	40.7	40.7
Other paid-in capital	778.6	740.7
Retained earnings	1,510.9	1,339.5
Accumulated other comprehensive income	19.8	41.3
Treasury shares at cost (2021 – 810,992 shares; 2020 – 158,836 shares)	59.1	9.3
Total Shareholders’ Equity	2,290.9	2,152.9
Noncontrolling Interest	76.4	72.3
Total Equity	2,367.3	2,225.2
Total Liabilities and Equity	$ 5,166.2	$ 5,041.6

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Allowances for accounts receivable	$ 16.9	$ 16.5
Company common shares shares authorized (in shares)	200,000,000	200,000,000
Common shares, shares issued (in shares)	77,069,551	75,834,668
Treasury shares (in shares)	810,992	158,836
Preferred Class A
Preferred stock, shares authorized (Class I & Class II Preferred stock) (in shares)	10,000,000	10,000,000
Preferred Class B
Preferred stock, shares authorized (Class I & Class II Preferred stock) (in shares)	10,000,000	10,000,000

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating Activities
Net Income	$ 223.2	$ 145.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	85.2	84.0
Impairment charges	4.5	0.1
Loss on sale of assets	0.7	1.6
Deferred income tax benefit	(5.8)	(7.1)
Stock-based compensation expense	12.5	11.4
Pension and other postretirement benefit expense	0.5	8.2
Pension and other postretirement benefit contributions and payments	15.0	8.6
Changes in operating assets and liabilities:
Accounts receivable	(125.8)	(8.4)
Unbilled receivables	10.4	3.0
Inventories	(81.4)	41.3
Accounts payable, trade	41.2	(28.9)
Other accrued expenses	30.8	5.3
Income taxes	(1.6)	30.9
Other, net	0.0	25.0
Net Cash Provided by Operating Activities	178.8	303.6
Investing Activities
Capital expenditures	(60.5)	(56.5)
Other	0.3	0.1
Net Cash Used in Investing Activities	(73.9)	(64.7)
Financing Activities
Cash dividends paid to shareholders	(46.7)	(43.9)
Purchase of treasury shares	(26.3)	(42.3)
Proceeds from exercise of stock options	25.4	7.5
Payments related to tax withholding for stock-based compensation	(23.5)	(10.4)
Accounts receivable facility borrowings	66.1	10.0
Accounts receivable facility payments	(124.1)	(110.0)
Proceeds from long-term debt	135.0	550.0
Payments on long-term debt	(141.4)	(417.1)
Short-term debt activity, net	16.6	26.5
Net Cash Used in Financing Activities	(118.9)	(31.3)
Effect of exchange rate changes on cash	(0.8)	(7.7)
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(14.8)	199.9
Cash, cash equivalents and restricted cash at beginning of year	321.1	216.2
Cash, Cash Equivalents and Restricted Cash at End of Period	306.3	416.1
Payments for (Proceeds from) Investments	13.8	1.6
Bargain purchase price gain	(0.6)	0.0
Payments to Acquire Businesses, Net of Cash Acquired	0.1	(6.7)
Payments of Financing Costs	0.0	(1.6)
Noncontrolling Interest [Member]
Operating Activities
Net Income	$ 5.1	$ 3.2

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Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 - Basis of Presentation The accompanying Consolidated Financial Statements (unaudited) for The Timken Company (the "Company" or "Timken") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by the accounting principles generally accepted in the United States ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2 - Significant Accounting Policies

The Company's significant accounting policies are detailed in "Note 1 - Significant Accounting Policies" of the Annual Report on Form 10-K for the year ended December 31, 2020.

Recent Accounting Pronouncements:

New Accounting Guidance Adopted:

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, “Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes,” which is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. This standard is effective for public companies in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted ASU 2019-12 effective January 1, 2021, and the impact of the adoption was not material to the Company's results of operations and financial condition.

New Accounting Guidance Issued and Not Yet Adopted:

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently assessing which of its various contracts will require an update for a new reference rate and will determine the timing for implementation of this guidance after completing that analysis.

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Acquisitions

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Acquisitions

Note 3 - Acquisitions

The Company completed one acquisition in 2020. On November 30, 2020, the Company completed the acquisition of the assets of Aurora Bearing Company ("Aurora"). With annual sales of approximately $30 million, Aurora serves a diverse range of industrial sectors, including aerospace and defense, racing, off-highway equipment and packaging. Aurora is headquartered in Montgomery, Illinois. The total purchase price for this acquisition was $17.2 million, including a post-closing net working capital adjustment. Based on markets and customers served, results for Aurora are reported in both the Mobile Industries segment and the Process Industries segment.

The following table presents the purchase price allocation at fair value, net of cash acquired, for the Aurora acquisition as of June 30, 2021: 

	Initial Purchase Price Allocation		Adjustments		Purchase Price Allocation
Assets:
Accounts receivable, net	$	2.7	$	—	$	2.7
Inventories, net	16.4		—		16.4
Other current assets	0.1		0.1		0.2
Property, plant and equipment, net	10.9		—		10.9
Total assets acquired	$	30.1	$	0.1	$	30.2
Liabilities:
Accounts payable, trade	$	0.8	$	—	$	0.8
Other current liabilities	0.9		(0.4)		0.5
Total liabilities assumed	1.7		(0.4)		1.3
Net assets acquired	$	28.4	$	0.5	$	28.9

As a result of applying the accounting rules on business combinations, the Company recognized a bargain purchase gain of $11.7 million on the acquisition of Aurora. The Company recognized $0.6 million of the bargain purchase price gain during the first three months of 2021 primarily due to the net working capital adjustment. The Company believes it was able to negotiate a bargain purchase price for the business due to some historic operational performance challenges, as well as the seller's desire to exit the business in an expedited manner in an exclusive process with the Company.

In determining the fair value of the amounts above, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being valued. The estimation of fair value required significant judgment related to future net cash flows, discount rates, competitive trends, market comparisons and other factors. Inputs were generally determined by taking into account independent appraisals and historical data, supplemented by current and anticipated market conditions.

During the applicable measurement period, the Company will adjust assets and liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments had been completed on the acquisition date. The above purchase price allocation is subject to change as additional information concerning final asset and liability valuations is obtained. The primary area of the Aurora purchase price allocation that has not been finalized relates to the fair value of inventory. Any changes in fair value could affect the bargain purchase price gain recognized.

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Revenue

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Note 4 - Revenue

The following table presents details deemed most relevant to the users of the financial statements about total revenue for the three and six months ended June 30, 2021 and 2020, respectively:

	Three Months Ended						Three Months Ended
	June 30, 2021						June 30, 2020
	Mobile		Process		Total		Mobile		Process		Total
United States	$	237.4	$	201.6	$	439.0	$	186.6	$	173.7	$	360.3
Americas, excluding the United States	52.3		49.1		101.4		26.8		29.3		56.1
Europe / Middle East / Africa	124.3		137.2		261.5		78.8		112.9		191.7
China	32.2		138.4		170.6		26.4		122.0		148.4
Asia-Pacific, excluding China	48.0		42.4		90.4		24.0		23.0		47.0
Net sales	$	494.2	$	568.7	$	1,062.9	$	342.6	$	460.9	$	803.5

	Six Months Ended						Six Months Ended
	June 30, 2021						June 30, 2020
	Mobile		Process		Total		Mobile		Process		Total
United States	$	480.3	$	387.8	$	868.1	$	424.8	$	366.3	$	791.1
Americas, excluding the United States	101.1		92.3		193.4		75.6		64.3		139.9
Europe / Middle East / Africa	251.4		264.4		515.8		187.5		228.5		416.0
China	66.6		262.7		329.3		48.2		203.0		251.2
Asia-Pacific, excluding China	99.3		82.4		181.7		73.2		55.5		128.7
Net sales	$	998.7	$	1,089.6	$	2,088.3	$	809.3	$	917.6	$	1,726.9

When reviewing revenue by sales channel, the Company separates net sales to original equipment manufacturers ("OEMs") from sales to distributors and end users. The following table presents the percent of revenue by sales channel for the six months ended June 30, 2021 and 2020, respectively:

	Six Months Ended
Revenue by sales channel	June 30, 2021	June 30, 2020
Original equipment manufacturers	61%	59%
Distribution/end users	39%	41%

In addition to disaggregating revenue by segment, geography and by sales channel as shown above, the Company believes information about the timing of transfer of goods or services, type of customer and distinguishing service revenue from product sales is also relevant. During the six months ended June 30, 2021 and June 30, 2020, approximately 9% and 13%, respectively, of total net sales were recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized as of a point in time. Approximately 4% and 5% of total net sales represented service revenue during each of the six months ended June 30, 2021 and June 30, 2020, respectively. Finally, the United States ("U.S.") government or its contractors represented approximately 7% and 9% of total net sales during the six months ended June 30, 2021 and June 30, 2020, respectively.

Remaining Performance Obligations:

Remaining performance obligations represent the transaction price of orders meeting the definition of a contract for which work has not been performed and excludes unexercised contract options. Performance obligations having a duration of more than one year are concentrated in contracts for certain products and services provided to the U.S. government or its contractors. The aggregate amount of the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was approximately $456.9 million at June 30, 2021.

Note 4 - Revenue (continued)

Unbilled Receivables:

The following table contains a rollforward of unbilled receivables for the six months ended June 30, 2021 and the twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	110.9	$	129.2
Additional unbilled revenue recognized	179.4		393.6
Less: amounts billed to customers	(189.9)		(411.9)
Ending balance	$	100.4	$	110.9

There were no impairment losses recorded on unbilled receivables for the six months ended June 30, 2021 and June 30, 2020, respectively.

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 5 - Segment Information

The primary measurement used by management to measure the financial performance of each segment is earnings before interest, taxes, depreciation and amortization ("EBITDA").

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales:
Mobile Industries	$	494.2	$	342.6	$	998.7	$	809.3
Process Industries	568.7		460.9		1,089.6		917.6
Net sales	$	1,062.9	$	803.5	$	2,088.3	$	1,726.9
Segment EBITDA:
Mobile Industries	$	67.3	$	38.8	$	146.9	$	113.9
Process Industries	141.2		126.3		272.2		233.8
Total EBITDA, for reportable segments	$	208.5	$	165.1	$	419.1	$	347.7
Unallocated corporate expense	(11.6)		(6.5)		(23.2)		(17.6)
Corporate pension and other postretirement benefit    related expense (1)	(3.5)		(8.8)		(4.4)		(8.8)
Acquisition-related gain (2)	—		—		0.6		—
Depreciation and amortization	(42.2)		(41.7)		(85.2)		(84.0)
Interest expense	(15.3)		(18.9)		(30.2)		(36.0)
Interest income	0.7		0.6		1.2		2.1
Income before income taxes	$	136.6	$	89.8	$	277.9	$	203.4

(1) Corporate pension and other postretirement benefit related expense represents actuarial gains and (losses) that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions or experience.

(2) The acquisition-related gain represents measurement period adjustments to the bargain purchase gain on the acquisition of Aurora, which closed on November 30, 2020. See Note 3 - Acquisitions for additional information.

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur.

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Provision for income taxes	$	29.4		$	28.0		$	54.7		$	57.6
Effective tax rate	21.5		%	31.2		%	19.7		%	28.3		%

Income tax expense for the three and six months ended June 30, 2021 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the release of accruals for uncertain tax positions from the settlement of the 2017 and 2018 U.S. federal tax years and other foreign jurisdictions, and favorable U.S. permanent book-tax differences. These items were partially offset by the unfavorable impact of earnings in foreign jurisdictions with higher tax rates.

The effective tax rate of 21.5% for the three months ended June 30, 2021 was lower than the rate for the three months ended June 30, 2020 primarily due to the release of accruals for uncertain tax positions, discrete benefits on tax rate changes in foreign jurisdictions and a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the new elective Global Intangible Low Tax Income ("GILTI") high tax exemption rules.

The effective tax rate of 19.7% for the six months ended June 30, 2021 was lower than the rate for the six months ended June 30, 2020 primarily due to the release of accruals for uncertain tax positions, a more favorable mix of earnings in lower tax rate jurisdictions, including the United States. Income taxes in the United States were favorably impacted by permanent book-tax differences, including the tax impact from stock-based compensation awards and the new elective GILTI high tax exemption rules.

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Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Note 7 - Earnings Per Share

The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2021 and 2020, respectively:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net income attributable to The Timken Company	$	104.8	$	61.9	$	218.1	$	142.6
Less: undistributed earnings allocated to nonvested stock	—		—		—		—
Net income available to common shareholders for basic and diluted earnings per share	$	104.8	$	61.9	$	218.1	$	142.6
Denominator:
Weighted average number of shares outstanding - basic	76,122,257		75,078,207		75,969,569		75,298,356
Effect of dilutive securities:
Stock options and awards - based on the treasury stock method	1,131,900		620,082		1,288,192		733,693
Weighted average number of shares outstanding assuming dilution of stock options and awards	77,254,157		75,698,289		77,257,761		76,032,049
Basic earnings per share	$	1.38	$	0.82	$	2.87	$	1.89
Diluted earnings per share	$	1.36	$	0.82	$	2.82	$	1.88

The exercise prices for certain stock options that the Company has awarded exceeded the average market price of the Company’s common shares during certain periods presented. Such stock options are antidilutive and were not included in the computation of diluted earnings per share. The antidilutive stock options outstanding during the three months ended June 30, 2021 and 2020 were zero and 1,338,686, respectively. The antidilutive stock options outstanding during the six months ended June 30, 2021 and 2020 were zero and 1,353,254, respectively.

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Inventories

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Note 8 - Inventories

The components of inventories at June 30, 2021 and December 31, 2020 were as follows:

	June 30, 2021		December 31, 2020
Manufacturing supplies	$	36.2	$	34.8
Raw materials	122.0		99.5
Work in process	352.6		320.3
Finished products	466.9		441.2
Subtotal	977.7		895.8
Allowance for obsolete and surplus inventory	(58.2)		(54.5)
Total Inventories, net	$	919.5	$	841.3

Inventories are valued at net realizable value, with approximately 61% valued on the first-in, first-out ("FIFO") method and the remaining 39% valued on the last-in, first-out ("LIFO") method. The majority of the Company's domestic inventories are valued on the LIFO method, and all the Company's international inventories are valued on the FIFO method.

The LIFO reserve at June 30, 2021 and December 31, 2020 was $185.1 million and $172.1 million, respectively. An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation.

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Financing Arrangements

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Financing Arrangements

Note 10 - Financing Arrangements

Short-term debt at June 30, 2021 and December 31, 2020 was as follows:

	June 30, 2021		December 31, 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 2.10% at June 30, 2021 and 0.24% to 1.75% at December 31, 2020	76.0		61.8
Short-term debt	$	76.0	$	119.8

The Company has a $100 million Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"), which matures on November 30, 2021. The Company currently intends to renew or replace the Accounts Receivable Facility prior to its maturity. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited to certain borrowing base limitations; however, availability under the Accounts Receivable Facility was not reduced by any such borrowing base limitations at June 30, 2021. As of June 30, 2021, there were no outstanding borrowings under the Accounts Receivable Facility. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income.

The lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings up to $286.1 million in the aggregate. Most of these lines of credit are uncommitted. At June 30, 2021, the Company’s foreign subsidiaries had borrowings outstanding of $76.0 million and bank guarantees of $0.5 million, which reduced the aggregate availability under these facilities to $209.6 million.

Long-term debt at June 30, 2021 and December 31, 2020 was as follows:

	June 30, 2021		December 31, 2020
Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 1.46% and Euro of 1.48% at June 30, 2021 and U.S. Dollar of 2.01% and Euro of 1.48% at December 31, 2020	$	9.4	$	9.7
Variable-rate Term Loan(1), maturing on September 11, 2023, with an interest rate of 1.35% at June 30, 2021 and 1.63% at December 31, 2020	325.4		329.6
Fixed-rate Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875%	349.3		349.0
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02%	177.6		182.9
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50%	396.7		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%	17.5		18.8
Other	4.8		3.6
Total debt	$	1,435.4	$	1,444.8
Less: Current maturities	11.1		10.9
Long-term debt	$	1,424.3	$	1,433.9

(1) Net of discounts and fees

Note 10 - Financing Arrangements (continued)

The Company entered into the Fourth Amended and Restated Credit Agreement ("Senior Credit Facility") on June 25, 2019. The Senior Credit Facility is a $650.0 million unsecured revolving credit facility, which matures on June 25, 2024. At June 30, 2021, the Company had $9.4 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $640.6 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. On May 27, 2020, the Senior Credit Facility was amended to, among other things, effectively increase the limit with respect to the consolidated leverage ratio. As amended, the consolidated leverage ratio is calculated using a net debt construct, netting unrestricted cash in excess of $25 million, instead of total debt. The change to the consolidated leverage ratio calculation was effective through June 30, 2021. In the third quarter of 2021, the calculation of the consolidated leverage ratio under the Senior Credit Facility will revert back to a total debt construct.

On September 11, 2018, the Company entered into a $350 million variable-rate term loan that matures on September 11, 2023 (the "2023 Term Loan"). Proceeds from the 2023 Term Loan were used to fund the acquisitions of Apiary Investments Holding Limited and Rollon S.p.A., which closed on September 1, 2018 and September 18, 2018, respectively. On July 12, 2019, the Company amended the 2023 Term Loan agreement to, among other things, align covenants and other terms with the Senior Credit Facility. On May 27, 2020, the 2023 Term Loan agreement was further amended to align the calculation of the consolidated leverage ratio and other terms with the Senior Credit Facility. The change to the consolidated leverage ratio calculation was effective through June 30, 2021. In the third quarter of 2021, the calculation of the consolidated leverage ratio under the 2023 Term Loan will revert back to a total debt construct.

At June 30, 2021, the Company was in full compliance with all applicable covenants on its outstanding debt.

In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to insurance contracts. At June 30, 2021, outstanding letters of credit totaled $41.9 million, most with expiration dates within 12 months.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 9 - Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2021 were as follows:

	Mobile Industries		Process Industries		Total
Beginning balance	$	384.6	$	663.0	$	1,047.6
Foreign currency translation adjustments and other changes	(5.9)		(6.9)		(12.8)
Ending balance	$	378.7	$	656.1	$	1,034.8

The following table displays intangible assets as of June 30, 2021 and December 31, 2020:

	Balance at June 30, 2021						Balance at December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Customer relationships	$	526.4	$	(176.7)	$	349.7	$	532.2	$	(161.9)	$	370.3
Technology and know-how	273.9		(79.7)		194.2		277.2		(72.0)		205.2
Trade names	14.3		(9.2)		5.1		14.2		(8.8)		5.4
Capitalized software	277.5		(258.2)		19.3		276.4		(254.6)		21.8
Other	4.7		(3.9)		0.8		4.7		(3.7)		1.0
	$	1,096.8	$	(527.7)	$	569.1	$	1,104.7	$	(501.0)	$	603.7
Intangible assets not subject to amortization:
Trade names	$	126.4			$	126.4	$	129.0			$	129.0
FAA air agency certificates	8.7				8.7		8.7				8.7
	$	135.1			$	135.1	$	137.7			$	137.7
Total intangible assets	$	1,231.9	$	(527.7)	$	704.2	$	1,242.4	$	(501.0)	$	741.4

Amortization expense for intangible assets was $28.2 million and $28.1 million for the six months ended June 30, 2021 and 2020, respectively. Amortization expense for intangible assets is projected to be $57.5 million in 2021; $49.4 million in 2022; $46.3 million in 2023; $44.3 million in 2024; and $43.2 million in 2025.

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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Note 11 - Contingencies

The Company and certain of its subsidiaries have been identified as potentially responsible parties for investigation and remediation under the Comprehensive Environmental Response, Compensation and Liability Act, known as the Superfund, or similar state laws with respect to certain sites. Claims for investigation and remediation have been asserted against numerous other entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation.

On December 28, 2004, the United States Environmental Protection Agency (“USEPA”) sent Lovejoy, Inc. ("Lovejoy") a Special Notice Letter that identified Lovejoy as a potentially responsible party, together with at least 14 other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”). The Company acquired Lovejoy in 2016. Lovejoy’s Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and the Illinois Environmental Protection Agency (“IEPA”) allege there have been one or more releases or threatened releases of hazardous substances, allegedly including, but not limited to, a release or threatened release on or from Lovejoy's property, at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of response costs. Lovejoy’s allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. All previously pending property damage and personal injury lawsuits against Lovejoy related to the Site were settled or dismissed prior to our acquisition of Lovejoy.

The Company had total environmental accruals of $5.2 million and $5.3 million for various known environmental matters that are probable and reasonably estimable at June 30, 2021 and December 31, 2020, respectively, which includes the Lovejoy matter described above. These accruals were recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties.

Product Warranties:

In addition to the contingencies above, the Company provides limited warranties on certain of its products. The product warranty liability included in "Other current liabilities" on the Consolidated Balance Sheets was $10.9 million and $9.4 million at June 30, 2021 and December 31, 2020, respectively. The increase in the liability since year end primarily relates to accruals that are based on the best estimate of costs for future claims based on products sold that are still under warranty. The estimate of these accruals is based on historical claims and expected trends that continue to mature.  Any significant change to these assumptions may be material to the results of operations in any particular period in which that change occurs.

The following is a rollforward of the consolidated product warranty accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	9.4	$	7.5
Expense	5.0		9.4
Payments	(3.5)		(7.5)
Ending balance	$	10.9	$	9.4

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Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Equity

Note 12 - Equity

The following tables present the changes in the components of equity for the three and six months ended June 30, 2021 and 2020, respectively:

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Non controlling Interest
Balance at March 31, 2021	$	2,250.1	$	40.7	$	761.3	$	1,429.0	$	(2.1)	$	(53.4)	$	74.6
Net income	107.2						104.8						2.4
Foreign currency translation adjustment	23.2								23.8				(0.6)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $0.5 million)	(1.7)								(1.7)
Change in fair value of derivative financial    instruments, net of reclassifications	(0.2)								(0.2)
Dividends – $0.30 per share	(22.9)						(22.9)
Stock-based compensation expense	6.0				6.0
Stock option exercise activity	11.3				11.3
Payments related to tax withholding for    stock-based compensation	(5.7)										(5.7)
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Non controlling Interest
Balance at December 31, 2020	$	2,225.2	$	40.7	$	740.7	$	1,339.5	$	41.3	$	(9.3)	$	72.3
Net income	223.2						218.1						5.1
Foreign currency translation adjustment	(21.2)								(20.2)				(1.0)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $1.1 million)	(3.3)								(3.3)
Change in fair value of derivative financial    instruments, net of reclassifications	2.0								2.0
Dividends – $0.59 per share	(46.7)						(46.7)
Stock-based compensation expense	12.5				12.5
Stock purchased at fair market value	(26.3)										(26.3)
Stock option exercise activity	25.4				25.4
Payments related to tax withholding for    stock-based compensation	(23.5)										(23.5)
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4

Note 12 - Equity (continued)

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Non controlling Interest
Balance at March 31, 2020	$	1,900.3	$	53.1	$	920.1	$	1,964.8	$	(118.9)	$	(1,001.7)	$	82.9
Net income (loss)	61.8						61.9						(0.1)
Foreign currency translation adjustment	24.5								23.3				1.2
Pension and other postretirement liability    adjustments (net of income tax benefit    of $0.5 million)	(1.5)								(1.5)
Unrealized loss on marketable securities	0.5								0.5
Change in fair value of derivative financial    instruments, net of reclassifications	(2.6)								(2.6)
Dividends – $0.28 per share	(21.0)						(21.0)
Stock-based compensation expense	5.8				5.8
Restricted share activity	—				(1.5)						1.5
Payments related to tax withholding for    stock-based compensation	(0.2)										(0.2)
Balance at June 30, 2020	$	1,967.6	$	53.1	$	924.4	$	2,005.7	$	(99.2)	$	(1,000.4)	$	84.0

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Non controlling Interest
Balance at December 31, 2019	$	1,954.8	$	53.1	$	937.6	$	1,907.4	$	(50.1)	$	(979.8)	$	86.6
Cumulative effect of ASU 2016-13    (net of income tax benefit of $0.2 million)	(0.4)						(0.4)
Net income	145.8						142.6						3.2
Foreign currency translation adjustment	(54.3)								(48.0)				(6.3)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $1.0 million)	(2.8)								(2.8)
Unrealized loss on marketable securities	0.1								0.1
Change in fair value of derivative financial    instruments, net of reclassifications	1.6								1.6
Change in ownership of noncontrolling    interest	0.5												0.5
Dividends – $0.56 per share	(43.9)						(43.9)
Stock-based compensation expense	11.4				11.4
Stock purchased at fair market value	(42.3)										(42.3)
Stock option exercise activity	7.5				(0.9)						8.4
Restricted share activity	—				(23.7)						23.7
Payments related to tax withholding for    stock-based compensation	(10.4)										(10.4)
Balance at June 30, 2020	$	1,967.6	$	53.1	$	924.4	$	2,005.7	$	(99.2)	$	(1,000.4)	$	84.0

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Impairment and Restructuring Charges

3 Months Ended

Jun. 30, 2021

Restructuring Charges [Abstract]

Impairment and Restructuring Charges

Note 13 - Impairment and Restructuring Charges

Impairment and restructuring charges by segment are comprised of the following:

For the three months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.0	$	0.1	$	—	$	1.1
Severance and related benefit costs	—		0.1		—		0.1
Exit costs	0.1		—		—		0.1
Total	$	1.1	$	0.2	$	—	$	1.3

For the six months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.1	$	3.4	$	—	$	4.5
Severance and related benefit costs	—		0.6		—		0.6
Exit costs	0.2		—		—		0.2
Total	$	1.3	$	4.0	$	—	$	5.3

For the three months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Severance and related benefit costs	$	1.5	$	1.7	$	—	$	3.2
Exit costs	(0.3)		0.2		—		(0.1)
Total	$	1.2	$	1.9	$	—	$	3.1

For the six months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	—	$	0.1	$	—	$	0.1
Severance and related benefit costs	1.6		4.2		0.1		5.9
Exit costs	0.3		0.4		—		0.7
Total	$	1.9	$	4.7	$	0.1	$	6.7

The following discussion explains the impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above.

Coronavirus ("COVID-19") Pandemic Cost Reduction Initiatives:

During the three months ended June 30, 2020, the Company recorded $2.0 million in severance and related benefit costs to eliminate approximately 20 salaried positions. Of the $2.0 million charge, $0.6 million related to the Mobile Industries segment and $1.4 million related to the Process Industries segment.

Mobile Industries:

On July 19, 2021, the Company announced the closure of its bearing manufacturing facility in Villa Carcina, Italy. The Company will be transferring the manufacturing of its single-row tapered roller bearing production to other bearing facilities in Europe, Asia and the United States. The plant is expected to close by the end of 2021 and is expected to affect approximately 110 employees. The Company expects to incur approximately $7 million to $10 million of expenses related to this closure. Ahead of this announcement, the Company reviewed assets for impairment. As a result, the Company recorded impairment charges of $1.0 million during the three months ended June 30, 2021.

Note 13 - Impairment and Restructuring Charges (continued)

On October 16, 2019, the Company announced the reorganization of its bearing manufacturing facility in Gaffney, South Carolina. The Company transferred its high-volume bearing production and roller production to other Timken manufacturing facilities in the United States. The transfer of these operations was substantially completed by the end of the third quarter of 2020 and affected approximately 150 employees. The Company expected to incur approximately $8 million to $10 million of pretax costs in total related to this reorganization. During the six months ended June 30, 2020, the Company recognized severance and related benefits of $0.3 million and exit costs of $0.3 million related to this reorganization. The Company incurred cumulative pretax costs related to this reorganization of $7.8 million as of June 30, 2021, including rationalization costs recorded in cost of products sold.

Process Industries:

On February 4, 2020, the Company announced the closure of its chain manufacturing facility in Indianapolis, Indiana. This facility was part of the Diamond Chain Company ("Diamond Chain") acquisition completed on April 1, 2019. The Company will be transferring the manufacturing of its Diamond Chain product line to its chain facility in Fulton, Illinois. The chain plant is expected to close by the end of the fourth quarter of 2021 and is expected to affect approximately 240 employees. The Company expects to hire approximately 130 full-time positions in Fulton, Illinois and expects to incur approximately $10 million to $12 million of expenses related to this closure. During the three months ended June 30, 2021 and June 30, 2020, the Company recorded severance and related benefit costs of $0.3 million and $0.3 million, respectively, related to this closure. During the six months ended June 30, 2021 and June 30, 2020, the Company recorded severance and related benefit costs of $0.6 million and $2.2 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $8.5 million as of June 30, 2021, including rationalization costs recorded in cost of products sold.

In addition, the Company recorded impairment charges of $3.3 million related to certain engineering-related assets used in the business during the three months ended March 31, 2021. Management concluded no further investment would be made in these assets and as a result, reduced the value to zero.

Consolidated Restructuring Accrual:

The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	8.0	$	2.7
Expense	0.8		20.8
Payments	(2.5)		(15.5)
Ending balance	$	6.3	$	8.0

The restructuring accrual at June 30, 2021 was included in other current liabilities on the Consolidated Balance Sheets.

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Retirement Benefit Plans

6 Months Ended

Jun. 30, 2021

Pension Plan

Defined Benefit Plan Disclosure [Line Items]

Retirement Benefit Plans

Note 14 - 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 and six months ended June 30, 2021 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2021.

	U.S. Plans				International Plans				Total
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2021		2020		2021		2020		2021		2020
Components of net periodic benefit    cost (credit):
Service cost	$	2.3	$	2.7	$	0.5	$	0.4	$	2.8	$	3.1
Interest cost	4.5		5.3		1.1		1.3		5.6		6.6
Expected return on plan assets	(6.1)		(6.4)		(2.6)		(2.1)		(8.7)		(8.5)
Amortization of prior service cost	0.3		0.4		0.1		0.1		0.4		0.5
Recognition of net actuarial losses	3.5		8.8		—		—		3.5		8.8
Net periodic benefit cost (credit)	$	4.5	$	10.8	$	(0.9)	$	(0.3)	$	3.6	$	10.5

	U.S. Plans				International Plans				Total
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020		2021		2020
Components of net periodic benefit    cost (credit):
Service cost	$	4.8	$	5.4	$	1.0	$	0.8	$	5.8	$	6.2
Interest cost	8.9		10.5		2.2		2.8		11.1		13.3
Expected return on plan assets	(12.2)		(12.7)		(5.1)		(4.3)		(17.3)		(17.0)
Amortization of prior service cost	0.6		0.8		0.1		0.1		0.7		0.9
Recognition of net actuarial losses	4.4		8.8		—		—		4.4		8.8
Net periodic benefit cost (credit)	$	6.5	$	12.8	$	(1.8)	$	(0.6)	$	4.7	$	12.2

The Company currently expects to make contributions and payments related to its global defined benefit pension plans totaling approximately $15 million in 2021. Approximately $9.6 million of this amount related to the 2021 payout of deferred compensation in June 2021 to a former executive officer of the Company. The payment triggered a remeasurement of the pension obligation for one of the Company's U.S. defined benefit pension plans during the six months ended June 30, 2021. In addition, the Company made lump sum payments to new retirees in 2021 in excess of annual interest and service costs for two of its other U.S. defined benefit pension plans as of June 30, 2021. These payments triggered a remeasurement of assets and obligations for these U.S. defined benefit pension plans during the six months ended June 30, 2021. As a result of these remeasurements, the Company recognized net actuarial losses of $3.5 million and $4.4 million during the three and six months ended June 30, 2021, respectively.

During the three and six months ended June 30, 2020, the Company recognized actuarial losses of $8.8 million. The remeasurement was a result of expected lump sum payments to new retirees exceeding service and interest costs for one of the Company's U.S. defined benefit pension plans.

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Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2021

Postretirement Plan

Defined Benefit Plan Disclosure [Line Items]

Other Postretirement Benefit Plans

Note 15 - Other Postretirement Benefit Plans

The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and six months ended June 30, 2021 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2021.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Components of net periodic benefit credit:
Service cost	$	0.1	$	0.1	$	0.1	$	0.1
Interest cost	0.3		0.5		0.7		1.0
Expected return on plan assets	—		(0.1)		—		(0.2)
Amortization of prior service credit	(2.5)		(2.5)		(5.0)		(4.9)
Net periodic benefit credit	$	(2.1)	$	(2.0)	$	(4.2)	$	(4.0)

In January 2021, the Company transferred the remaining $11.1 million in an existing Voluntary Employee Beneficiary Association ("VEBA") trust for certain retiree medical benefits to a second VEBA trust for the payment of certain active employees’ medical benefits. The Company utilized all of the assets in the second trust during the six months ended June 30, 2021.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

The following tables present details about components of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, respectively:

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at March 31, 2021	$	(62.0)	$	61.8	$	—	$	(1.9)	$	(2.1)
Other comprehensive income (loss) before    reclassifications and income taxes	23.2		(0.1)		—		(2.1)		21.0
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(2.1)		—		1.7		(0.4)
Income tax benefit	—		0.5		—		0.2		0.7
Net current period other comprehensive    income (loss), net of income taxes	23.2		(1.7)		—		(0.2)		21.3
Noncontrolling interest	0.6		—		—		—		0.6
Net current period comprehensive income (loss),    net of income taxes and noncontrolling    interest	23.8		(1.7)		—		(0.2)		21.9
Balance at June 30, 2021	$	(38.2)	$	60.1	$	—	$	(2.1)	$	19.8

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		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	(21.2)		(0.1)		—		(0.7)		(22.0)
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(4.3)		—		3.4		(0.9)
Income tax benefit (expense)	—		1.1		—		(0.7)		0.4
Net current period other comprehensive    (loss) income, net of income taxes	(21.2)		(3.3)		—		2.0		(22.5)
Noncontrolling interest	1.0		—		—		—		1.0
Net current period comprehensive (loss) income,    net of income taxes and noncontrolling    interest	(20.2)		(3.3)		—		2.0		(21.5)
Balance at June 30, 2021	$	(38.2)	$	60.1	$	—	$	(2.1)	$	19.8

Note 16 - Accumulated Other Comprehensive Income (Loss) (continued)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at March 31, 2020	$	(186.6)	$	65.6	$	(0.4)	$	2.5	$	(118.9)
Other comprehensive income (loss) before    reclassifications and income taxes	24.5		—		0.7		(2.2)		23.0
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(2.0)		—		(1.3)		(3.3)
Income tax benefit (expense)	—		0.5		(0.2)		0.9		1.2
Net current period other comprehensive    income (loss), net of income taxes	24.5		(1.5)		0.5		(2.6)		20.9
Noncontrolling interest	(1.2)		—		—		—		(1.2)
Net current period comprehensive income (loss),    net of income taxes and noncontrolling    interest	23.3		(1.5)		0.5		(2.6)		19.7
Balance at June 30, 2020	$	(163.3)	$	64.1	$	0.1	$	(0.1)	$	(99.2)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at December 31, 2019	$	(115.3)	$	66.9	$	—	$	(1.7)	$	(50.1)
Other comprehensive (loss) income before    reclassifications and income taxes	(54.3)		0.2		0.2		4.2		(49.7)
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(4.0)		—		(1.9)		(5.9)
Income tax benefit (expense)	—		1.0		(0.1)		(0.7)		0.2
Net current period other comprehensive    (loss) income, net of income taxes	(54.3)		(2.8)		0.1		1.6		(55.4)
Noncontrolling interest	6.3		—		—		—		6.3
Net current period comprehensive (loss) income,    net of income taxes and noncontrolling    interest	(48.0)		(2.8)		0.1		1.6		(49.1)
Balance at June 30, 2020	$	(163.3)	$	64.1	$	0.1	$	(0.1)	$	(99.2)

Other comprehensive income (loss) before reclassifications and income taxes includes the effect of foreign currency.

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Fair Value

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value

Note 17 - Fair Value

Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy:

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.

The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	305.5	$	303.5	$	2.0	$	—
Restricted cash	0.8		0.8		—		—
Short-term investments	52.0		—		52.0		—
Foreign currency forward contracts	0.9		—		0.9		—
Total Assets	$	359.2	$	304.3	$	54.9	$	—
Liabilities:
Foreign currency forward contracts	$	3.4	$	—	$	3.4	$	—
Total Liabilities	$	3.4	$	—	$	3.4	$	—

	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 forward contracts	1.1		—		1.1		—
Total Assets	$	359.8	$	319.4	$	40.4	$	—
Liabilities:
Foreign currency forward contracts	$	8.1	$	—	$	8.1	$	—
Total Liabilities	$	8.1	$	—	$	8.1	$	—

Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at the redemption value. Short-term investments are investments with maturities between four months and one year, and generally are valued at amortized cost, which approximates fair value. A portion of the cash and cash equivalents and short-term investments are valued based on net asset value. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts.

In addition, the Company remeasures certain assets at fair value, using Level 3 inputs, as a result of the occurrence of triggering events such as purchase accounting for acquisitions. See Note 3 - Acquisitions for further discussion.

No other material assets were measured at fair value on a nonrecurring basis during the six months ended June 30, 2021 and 2020, respectively.

Note 17 - Fair Value (continued)

Financial Instruments:

The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, trade accounts payable and short-term borrowings are a reasonable estimate of their fair value. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company's long-term variable-rate debt is a reasonable estimate of its fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $1,204.0 million and $1,220.7 million at June 30, 2021 and December 31, 2020, respectively. The carrying value of this debt was $1,095.7 million and $1,103.2 million at June 30, 2021 and December 31, 2020, respectively. The fair value of long-term fixed-rate debt was measured using Level 2 inputs.

The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments.

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Derivatives Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Note 18 - Derivative Instruments and Hedging Activities

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk and interest rate risk. Forward contracts on various foreign currencies are entered into in order to manage the foreign currency exchange rate risk associated with certain of the Company's commitments denominated in foreign currencies. From time to time, interest rate swaps are used to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings.

The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as cash flow hedges of fixed-rate borrowings.

On September 8, 2020, the Company entered into a $100 million floating-to-fixed rate swap on the 2023 Term Loan, which hedges the change in the 1-month LIBOR rate between October 30, 2020 and September 11, 2023 to a fixed rate. The Company’s risk management objective is to hedge the risk of changes in the monthly interest expense attributable to changes in the benchmark interest rate.

On September 15, 2020, the Company designated €54.5 million of its €150.0 million fixed-rate senior unsecured notes, maturing on September 7, 2027 (the "2027 Notes"), as a hedge against its net investment in one of its European affiliates. The objective of the hedge transaction is to protect the net investment in the foreign operations against changes in the exchange rate between the U.S. dollar and the Euro. The net impact for the three and six months ended June 30, 2021, respectively, was a loss of $0.7 million and a gain of $1.9 million to accumulated comprehensive loss with a corresponding offset to other (expense) income, which partially offsets the impact of the foreign currency adjustment on the 2027 Notes.

The Company does not purchase or hold any derivative financial instruments for trading purposes. As of June 30, 2021 and December 31, 2020, the Company had $187.8 million and $173.2 million, respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 17 - Fair Value for the fair value disclosure of derivative financial instruments.

Cash Flow Hedging Strategy:

For certain derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings.

Note 18 - Derivative Instruments and Hedging Activities (continued)

To protect against a reduction in the value of forecasted foreign currency cash flows resulting from export sales, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted cash flows denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. As of June 30, 2021 and December 31, 2020, the Company had $88.7 million and $86.9 million, respectively, of outstanding foreign currency forward contracts at notional value that were classified as cash flow hedges.

The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecast transactions is generally eighteen months or less.

Purpose for Derivative Instruments not designated as Hedging Instruments:

For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies typically are hedged with a forward contract at the inception of the loan with a maturity date corresponding to the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility.

As of June 30, 2021 and December 31, 2020, the Company had $99.1 million and $86.3 million, respectively, of outstanding foreign currency forward contracts at notional value that were not designated as hedging instruments. The following table presents the impact of derivative instruments not designated as hedging instruments for the three and six months ended June 30, 2021 and 2020, respectively, and the related location within the Consolidated Statements of Income:

		Amount of gain or (loss) recognized in income
		Three Months Ended June 30,				Six Months Ended June 30,
Derivatives not designated as hedging instruments:	Location of gain or (loss) recognized in income	2021		2020		2021		2020
Foreign currency forward contracts	Other income (expense), net	$	(0.9)	$	(3.7)	$	(0.7)	$	1.8

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

New Accounting Pronouncements

New Accounting Guidance Adopted:

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, “Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes,” which is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. This standard is effective for public companies in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted ASU 2019-12 effective January 1, 2021, and the impact of the adoption was not material to the Company's results of operations and financial condition.

New Accounting Guidance Issued and Not Yet Adopted:

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This guidance is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently assessing which of its various contracts will require an update for a new reference rate and will determine the timing for implementation of this guidance after completing that analysis.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the purchase price allocation at fair value, net of cash acquired, for the Aurora acquisition as of June 30, 2021: 

	Initial Purchase Price Allocation		Adjustments		Purchase Price Allocation
Assets:
Accounts receivable, net	$	2.7	$	—	$	2.7
Inventories, net	16.4		—		16.4
Other current assets	0.1		0.1		0.2
Property, plant and equipment, net	10.9		—		10.9
Total assets acquired	$	30.1	$	0.1	$	30.2
Liabilities:
Accounts payable, trade	$	0.8	$	—	$	0.8
Other current liabilities	0.9		(0.4)		0.5
Total liabilities assumed	1.7		(0.4)		1.3
Net assets acquired	$	28.4	$	0.5	$	28.9

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Revenue (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents details deemed most relevant to the users of the financial statements about total revenue for the three and six months ended June 30, 2021 and 2020, respectively:

	Three Months Ended						Three Months Ended
	June 30, 2021						June 30, 2020
	Mobile		Process		Total		Mobile		Process		Total
United States	$	237.4	$	201.6	$	439.0	$	186.6	$	173.7	$	360.3
Americas, excluding the United States	52.3		49.1		101.4		26.8		29.3		56.1
Europe / Middle East / Africa	124.3		137.2		261.5		78.8		112.9		191.7
China	32.2		138.4		170.6		26.4		122.0		148.4
Asia-Pacific, excluding China	48.0		42.4		90.4		24.0		23.0		47.0
Net sales	$	494.2	$	568.7	$	1,062.9	$	342.6	$	460.9	$	803.5

	Six Months Ended						Six Months Ended
	June 30, 2021						June 30, 2020
	Mobile		Process		Total		Mobile		Process		Total
United States	$	480.3	$	387.8	$	868.1	$	424.8	$	366.3	$	791.1
Americas, excluding the United States	101.1		92.3		193.4		75.6		64.3		139.9
Europe / Middle East / Africa	251.4		264.4		515.8		187.5		228.5		416.0
China	66.6		262.7		329.3		48.2		203.0		251.2
Asia-Pacific, excluding China	99.3		82.4		181.7		73.2		55.5		128.7
Net sales	$	998.7	$	1,089.6	$	2,088.3	$	809.3	$	917.6	$	1,726.9

When reviewing revenue by sales channel, the Company separates net sales to original equipment manufacturers ("OEMs") from sales to distributors and end users. The following table presents the percent of revenue by sales channel for the six months ended June 30, 2021 and 2020, respectively:

	Six Months Ended
Revenue by sales channel	June 30, 2021	June 30, 2020
Original equipment manufacturers	61%	59%
Distribution/end users	39%	41%

Contract with Customer, Asset and Liability

The following table contains a rollforward of unbilled receivables for the six months ended June 30, 2021 and the twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	110.9	$	129.2
Additional unbilled revenue recognized	179.4		393.6
Less: amounts billed to customers	(189.9)		(411.9)
Ending balance	$	100.4	$	110.9

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment wise financial performance

The primary measurement used by management to measure the financial performance of each segment is earnings before interest, taxes, depreciation and amortization ("EBITDA").

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales:
Mobile Industries	$	494.2	$	342.6	$	998.7	$	809.3
Process Industries	568.7		460.9		1,089.6		917.6
Net sales	$	1,062.9	$	803.5	$	2,088.3	$	1,726.9
Segment EBITDA:
Mobile Industries	$	67.3	$	38.8	$	146.9	$	113.9
Process Industries	141.2		126.3		272.2		233.8
Total EBITDA, for reportable segments	$	208.5	$	165.1	$	419.1	$	347.7
Unallocated corporate expense	(11.6)		(6.5)		(23.2)		(17.6)
Corporate pension and other postretirement benefit    related expense (1)	(3.5)		(8.8)		(4.4)		(8.8)
Acquisition-related gain (2)	—		—		0.6		—
Depreciation and amortization	(42.2)		(41.7)		(85.2)		(84.0)
Interest expense	(15.3)		(18.9)		(30.2)		(36.0)
Interest income	0.7		0.6		1.2		2.1
Income before income taxes	$	136.6	$	89.8	$	277.9	$	203.4

(1) Corporate pension and other postretirement benefit related expense represents actuarial gains and (losses) that resulted from the remeasurement of pension and other postretirement plan assets and obligations as a result of changes in assumptions or experience.

(2) The acquisition-related gain represents measurement period adjustments to the bargain purchase gain on the acquisition of Aurora, which closed on November 30, 2020. See Note 3 - Acquisitions for additional information.

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period(s) in which they occur.

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Provision for income taxes	$	29.4		$	28.0		$	54.7		$	57.6
Effective tax rate	21.5		%	31.2		%	19.7		%	28.3		%

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share

The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2021 and 2020, respectively:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net income attributable to The Timken Company	$	104.8	$	61.9	$	218.1	$	142.6
Less: undistributed earnings allocated to nonvested stock	—		—		—		—
Net income available to common shareholders for basic and diluted earnings per share	$	104.8	$	61.9	$	218.1	$	142.6
Denominator:
Weighted average number of shares outstanding - basic	76,122,257		75,078,207		75,969,569		75,298,356
Effect of dilutive securities:
Stock options and awards - based on the treasury stock method	1,131,900		620,082		1,288,192		733,693
Weighted average number of shares outstanding assuming dilution of stock options and awards	77,254,157		75,698,289		77,257,761		76,032,049
Basic earnings per share	$	1.38	$	0.82	$	2.87	$	1.89
Diluted earnings per share	$	1.36	$	0.82	$	2.82	$	1.88

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Components of inventories

The components of inventories at June 30, 2021 and December 31, 2020 were as follows:

	June 30, 2021		December 31, 2020
Manufacturing supplies	$	36.2	$	34.8
Raw materials	122.0		99.5
Work in process	352.6		320.3
Finished products	466.9		441.2
Subtotal	977.7		895.8
Allowance for obsolete and surplus inventory	(58.2)		(54.5)
Total Inventories, net	$	919.5	$	841.3

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Financing Arrangements (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Short-term debt

Short-term debt at June 30, 2021 and December 31, 2020 was as follows:

	June 30, 2021		December 31, 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 2.10% at June 30, 2021 and 0.24% to 1.75% at December 31, 2020	76.0		61.8
Short-term debt	$	76.0	$	119.8

Long-term debt

Long-term debt at June 30, 2021 and December 31, 2020 was as follows:

	June 30, 2021		December 31, 2020
Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 1.46% and Euro of 1.48% at June 30, 2021 and U.S. Dollar of 2.01% and Euro of 1.48% at December 31, 2020	$	9.4	$	9.7
Variable-rate Term Loan(1), maturing on September 11, 2023, with an interest rate of 1.35% at June 30, 2021 and 1.63% at December 31, 2020	325.4		329.6
Fixed-rate Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875%	349.3		349.0
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02%	177.6		182.9
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50%	396.7		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%	17.5		18.8
Other	4.8		3.6
Total debt	$	1,435.4	$	1,444.8
Less: Current maturities	11.1		10.9
Long-term debt	$	1,424.3	$	1,433.9

(1) Net of discounts and fees

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Change in the carrying amount of goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2021 were as follows:

	Mobile Industries		Process Industries		Total
Beginning balance	$	384.6	$	663.0	$	1,047.6
Foreign currency translation adjustments and other changes	(5.9)		(6.9)		(12.8)
Ending balance	$	378.7	$	656.1	$	1,034.8

Intangible assets

The following table displays intangible assets as of June 30, 2021 and December 31, 2020:

	Balance at June 30, 2021						Balance at December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Customer relationships	$	526.4	$	(176.7)	$	349.7	$	532.2	$	(161.9)	$	370.3
Technology and know-how	273.9		(79.7)		194.2		277.2		(72.0)		205.2
Trade names	14.3		(9.2)		5.1		14.2		(8.8)		5.4
Capitalized software	277.5		(258.2)		19.3		276.4		(254.6)		21.8
Other	4.7		(3.9)		0.8		4.7		(3.7)		1.0
	$	1,096.8	$	(527.7)	$	569.1	$	1,104.7	$	(501.0)	$	603.7
Intangible assets not subject to amortization:
Trade names	$	126.4			$	126.4	$	129.0			$	129.0
FAA air agency certificates	8.7				8.7		8.7				8.7
	$	135.1			$	135.1	$	137.7			$	137.7
Total intangible assets	$	1,231.9	$	(527.7)	$	704.2	$	1,242.4	$	(501.0)	$	741.4

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Commitment and Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liability

The following is a rollforward of the consolidated product warranty accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	9.4	$	7.5
Expense	5.0		9.4
Payments	(3.5)		(7.5)
Ending balance	$	10.9	$	9.4

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Equity (Tables)

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Equity [Abstract]

Equity

The following tables present the changes in the components of equity for the three and six months ended June 30, 2021 and 2020, respectively:

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Non controlling Interest
Balance at March 31, 2021	$	2,250.1	$	40.7	$	761.3	$	1,429.0	$	(2.1)	$	(53.4)	$	74.6
Net income	107.2						104.8						2.4
Foreign currency translation adjustment	23.2								23.8				(0.6)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $0.5 million)	(1.7)								(1.7)
Change in fair value of derivative financial    instruments, net of reclassifications	(0.2)								(0.2)
Dividends – $0.30 per share	(22.9)						(22.9)
Stock-based compensation expense	6.0				6.0
Stock option exercise activity	11.3				11.3
Payments related to tax withholding for    stock-based compensation	(5.7)										(5.7)
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Non controlling Interest
Balance at December 31, 2020	$	2,225.2	$	40.7	$	740.7	$	1,339.5	$	41.3	$	(9.3)	$	72.3
Net income	223.2						218.1						5.1
Foreign currency translation adjustment	(21.2)								(20.2)				(1.0)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $1.1 million)	(3.3)								(3.3)
Change in fair value of derivative financial    instruments, net of reclassifications	2.0								2.0
Dividends – $0.59 per share	(46.7)						(46.7)
Stock-based compensation expense	12.5				12.5
Stock purchased at fair market value	(26.3)										(26.3)
Stock option exercise activity	25.4				25.4
Payments related to tax withholding for    stock-based compensation	(23.5)										(23.5)
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Non controlling Interest
Balance at March 31, 2020	$	1,900.3	$	53.1	$	920.1	$	1,964.8	$	(118.9)	$	(1,001.7)	$	82.9
Net income (loss)	61.8						61.9						(0.1)
Foreign currency translation adjustment	24.5								23.3				1.2
Pension and other postretirement liability    adjustments (net of income tax benefit    of $0.5 million)	(1.5)								(1.5)
Unrealized loss on marketable securities	0.5								0.5
Change in fair value of derivative financial    instruments, net of reclassifications	(2.6)								(2.6)
Dividends – $0.28 per share	(21.0)						(21.0)
Stock-based compensation expense	5.8				5.8
Restricted share activity	—				(1.5)						1.5
Payments related to tax withholding for    stock-based compensation	(0.2)										(0.2)
Balance at June 30, 2020	$	1,967.6	$	53.1	$	924.4	$	2,005.7	$	(99.2)	$	(1,000.4)	$	84.0

			The Timken Company Shareholders
	Total		Stated Capital		Other Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Non controlling Interest
Balance at December 31, 2019	$	1,954.8	$	53.1	$	937.6	$	1,907.4	$	(50.1)	$	(979.8)	$	86.6
Cumulative effect of ASU 2016-13    (net of income tax benefit of $0.2 million)	(0.4)						(0.4)
Net income	145.8						142.6						3.2
Foreign currency translation adjustment	(54.3)								(48.0)				(6.3)
Pension and other postretirement liability    adjustments (net of income tax benefit    of $1.0 million)	(2.8)								(2.8)
Unrealized loss on marketable securities	0.1								0.1
Change in fair value of derivative financial    instruments, net of reclassifications	1.6								1.6
Change in ownership of noncontrolling    interest	0.5												0.5
Dividends – $0.56 per share	(43.9)						(43.9)
Stock-based compensation expense	11.4				11.4
Stock purchased at fair market value	(42.3)										(42.3)
Stock option exercise activity	7.5				(0.9)						8.4
Restricted share activity	—				(23.7)						23.7
Payments related to tax withholding for    stock-based compensation	(10.4)										(10.4)
Balance at June 30, 2020	$	1,967.6	$	53.1	$	924.4	$	2,005.7	$	(99.2)	$	(1,000.4)	$	84.0

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Impairment and Restructuring Charges (Tables)

6 Months Ended

Jun. 30, 2021

Restructuring Charges [Abstract]

Restructuring and Related Costs

For the three months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.0	$	0.1	$	—	$	1.1
Severance and related benefit costs	—		0.1		—		0.1
Exit costs	0.1		—		—		0.1
Total	$	1.1	$	0.2	$	—	$	1.3

For the six months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.1	$	3.4	$	—	$	4.5
Severance and related benefit costs	—		0.6		—		0.6
Exit costs	0.2		—		—		0.2
Total	$	1.3	$	4.0	$	—	$	5.3

For the three months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Severance and related benefit costs	$	1.5	$	1.7	$	—	$	3.2
Exit costs	(0.3)		0.2		—		(0.1)
Total	$	1.2	$	1.9	$	—	$	3.1

For the six months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	—	$	0.1	$	—	$	0.1
Severance and related benefit costs	1.6		4.2		0.1		5.9
Exit costs	0.3		0.4		—		0.7
Total	$	1.9	$	4.7	$	0.1	$	6.7

The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	8.0	$	2.7
Expense	0.8		20.8
Payments	(2.5)		(15.5)
Ending balance	$	6.3	$	8.0

The restructuring accrual at June 30, 2021 was included in other current liabilities on the Consolidated Balance Sheets.

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Retirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2021

Pension Plan

Defined Benefit Plan Disclosure [Line Items]

Net periodic benefit cost for the Company's 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 and six months ended June 30, 2021 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2021.

	U.S. Plans				International Plans				Total
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2021		2020		2021		2020		2021		2020
Components of net periodic benefit    cost (credit):
Service cost	$	2.3	$	2.7	$	0.5	$	0.4	$	2.8	$	3.1
Interest cost	4.5		5.3		1.1		1.3		5.6		6.6
Expected return on plan assets	(6.1)		(6.4)		(2.6)		(2.1)		(8.7)		(8.5)
Amortization of prior service cost	0.3		0.4		0.1		0.1		0.4		0.5
Recognition of net actuarial losses	3.5		8.8		—		—		3.5		8.8
Net periodic benefit cost (credit)	$	4.5	$	10.8	$	(0.9)	$	(0.3)	$	3.6	$	10.5

	U.S. Plans				International Plans				Total
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020		2021		2020
Components of net periodic benefit    cost (credit):
Service cost	$	4.8	$	5.4	$	1.0	$	0.8	$	5.8	$	6.2
Interest cost	8.9		10.5		2.2		2.8		11.1		13.3
Expected return on plan assets	(12.2)		(12.7)		(5.1)		(4.3)		(17.3)		(17.0)
Amortization of prior service cost	0.6		0.8		0.1		0.1		0.7		0.9
Recognition of net actuarial losses	4.4		8.8		—		—		4.4		8.8
Net periodic benefit cost (credit)	$	6.5	$	12.8	$	(1.8)	$	(0.6)	$	4.7	$	12.2

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Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2021

Postretirement Plan

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Defined Benefit Plans Disclosures

The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and six months ended June 30, 2021 are based on calculations prepared by the Company's actuaries and represent the Company’s best estimate of that period’s proportionate share of the amounts to be recorded for the year ending December 31, 2021.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Components of net periodic benefit credit:
Service cost	$	0.1	$	0.1	$	0.1	$	0.1
Interest cost	0.3		0.5		0.7		1.0
Expected return on plan assets	—		(0.1)		—		(0.2)
Amortization of prior service credit	(2.5)		(2.5)		(5.0)		(4.9)
Net periodic benefit credit	$	(2.1)	$	(2.0)	$	(4.2)	$	(4.0)

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables present details about components of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, respectively:

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at March 31, 2021	$	(62.0)	$	61.8	$	—	$	(1.9)	$	(2.1)
Other comprehensive income (loss) before    reclassifications and income taxes	23.2		(0.1)		—		(2.1)		21.0
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(2.1)		—		1.7		(0.4)
Income tax benefit	—		0.5		—		0.2		0.7
Net current period other comprehensive    income (loss), net of income taxes	23.2		(1.7)		—		(0.2)		21.3
Noncontrolling interest	0.6		—		—		—		0.6
Net current period comprehensive income (loss),    net of income taxes and noncontrolling    interest	23.8		(1.7)		—		(0.2)		21.9
Balance at June 30, 2021	$	(38.2)	$	60.1	$	—	$	(2.1)	$	19.8

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		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	(21.2)		(0.1)		—		(0.7)		(22.0)
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(4.3)		—		3.4		(0.9)
Income tax benefit (expense)	—		1.1		—		(0.7)		0.4
Net current period other comprehensive    (loss) income, net of income taxes	(21.2)		(3.3)		—		2.0		(22.5)
Noncontrolling interest	1.0		—		—		—		1.0
Net current period comprehensive (loss) income,    net of income taxes and noncontrolling    interest	(20.2)		(3.3)		—		2.0		(21.5)
Balance at June 30, 2021	$	(38.2)	$	60.1	$	—	$	(2.1)	$	19.8

Note 16 - Accumulated Other Comprehensive Income (Loss) (continued)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at March 31, 2020	$	(186.6)	$	65.6	$	(0.4)	$	2.5	$	(118.9)
Other comprehensive income (loss) before    reclassifications and income taxes	24.5		—		0.7		(2.2)		23.0
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(2.0)		—		(1.3)		(3.3)
Income tax benefit (expense)	—		0.5		(0.2)		0.9		1.2
Net current period other comprehensive    income (loss), net of income taxes	24.5		(1.5)		0.5		(2.6)		20.9
Noncontrolling interest	(1.2)		—		—		—		(1.2)
Net current period comprehensive income (loss),    net of income taxes and noncontrolling    interest	23.3		(1.5)		0.5		(2.6)		19.7
Balance at June 30, 2020	$	(163.3)	$	64.1	$	0.1	$	(0.1)	$	(99.2)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Unrealized gain (loss) on marketable securities		Change in fair value of derivative financial instruments		Total
Balance at December 31, 2019	$	(115.3)	$	66.9	$	—	$	(1.7)	$	(50.1)
Other comprehensive (loss) income before    reclassifications and income taxes	(54.3)		0.2		0.2		4.2		(49.7)
Amounts reclassified from accumulated other    comprehensive (loss) income before income    taxes	—		(4.0)		—		(1.9)		(5.9)
Income tax benefit (expense)	—		1.0		(0.1)		(0.7)		0.2
Net current period other comprehensive    (loss) income, net of income taxes	(54.3)		(2.8)		0.1		1.6		(55.4)
Noncontrolling interest	6.3		—		—		—		6.3
Net current period comprehensive (loss) income,    net of income taxes and noncontrolling    interest	(48.0)		(2.8)		0.1		1.6		(49.1)
Balance at June 30, 2020	$	(163.3)	$	64.1	$	0.1	$	(0.1)	$	(99.2)

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	June 30, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	305.5	$	303.5	$	2.0	$	—
Restricted cash	0.8		0.8		—		—
Short-term investments	52.0		—		52.0		—
Foreign currency forward contracts	0.9		—		0.9		—
Total Assets	$	359.2	$	304.3	$	54.9	$	—
Liabilities:
Foreign currency forward contracts	$	3.4	$	—	$	3.4	$	—
Total Liabilities	$	3.4	$	—	$	3.4	$	—

	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 forward contracts	1.1		—		1.1		—
Total Assets	$	359.8	$	319.4	$	40.4	$	—
Liabilities:
Foreign currency forward contracts	$	8.1	$	—	$	8.1	$	—
Total Liabilities	$	8.1	$	—	$	8.1	$	—

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Derivatives Instruments and Hedging Activities (Table)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Not Designated as Hedging Instruments

The following table presents the impact of derivative instruments not designated as hedging instruments for the three and six months ended June 30, 2021 and 2020, respectively, and the related location within the Consolidated Statements of Income:

		Amount of gain or (loss) recognized in income
		Three Months Ended June 30,				Six Months Ended June 30,
Derivatives not designated as hedging instruments:	Location of gain or (loss) recognized in income	2021		2020		2021		2020
Foreign currency forward contracts	Other income (expense), net	$	(0.9)	$	(3.7)	$	(0.7)	$	1.8

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Acquisitions (Details) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) acquisition
Business Acquisition [Line Items]
Bargain purchase price gain	$ 0.0		$ 0.0	$ 0.6	$ 0.0
Operating lease assets	115.3			115.3		$ 118.2
Goodwill	1,034.8			1,034.8		$ 1,047.6
Aurora
Business Acquisition [Line Items]
Revenue reported by acquired entity		$ 30.0
2020 Acquisitions
Business Acquisition [Line Items]
Number of acquisitions | acquisition						1
Consideration transferred		17.2
Bargain purchase price gain				11.7
Accounts receivable, net	2.7			2.7
Inventories, net	16.4			16.4
Other current assets	0.2			0.2
Property, plant and equipment, net	10.9			10.9
Total assets acquired	30.2			30.2
Accounts payable, trade	0.8			0.8
Total liabilities assumed	1.3			1.3
Net assets acquired	28.9			28.9
2020 Acquisitions | Previously Reported
Business Acquisition [Line Items]
Accounts receivable, net	2.7			2.7
Inventories, net	16.4			16.4
Other current assets	0.1			0.1
Property, plant and equipment, net	10.9			10.9
Total assets acquired	30.1			30.1
Accounts payable, trade	0.8			0.8
Total liabilities assumed	1.7			1.7
Net assets acquired	28.4			28.4
2020 Acquisitions | Revision of Prior Period, Adjustment
Business Acquisition [Line Items]
Accounts receivable, net	0.0			0.0
Inventories, net	0.0			0.0
Other current assets	0.1			0.1
Property, plant and equipment, net	0.0			0.0
Total assets acquired	0.1			0.1
Accounts payable, trade	0.0			0.0
Total liabilities assumed	(0.4)			(0.4)
Net assets acquired	0.5	$ 0.6		0.5
2020 Acquisitions | Other current liabilities
Business Acquisition [Line Items]
Other current liabilities	0.5			0.5
2020 Acquisitions | Other current liabilities | Previously Reported
Business Acquisition [Line Items]
Other current liabilities	0.9			0.9
2020 Acquisitions | Other current liabilities | Revision of Prior Period, Adjustment
Business Acquisition [Line Items]
Other current liabilities	$ (0.4)			$ (0.4)

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Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 1,062.9	$ 803.5	$ 2,088.3	$ 1,726.9
Amount of revenue for remaining performance obligations	456.9		456.9
Unbilled receivables			110.9	$ 129.2	$ 129.2
Additional unbilled revenue recognized			179.4		393.6
Less: amounts billed to customers			189.9		411.9
Unbilled receivables	100.4		$ 100.4		$ 110.9
U.S. Government | Customer Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenues			7.00%	9.00%
Original equipment manufacturers | Customer Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenues			61.00%	59.00%
Distribution/end users | Customer Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenues			39.00%	41.00%
Transferred over Time | Customer Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenues			9.00%	13.00%
United States
Disaggregation of Revenue [Line Items]
Net sales	439.0	360.3	$ 868.1	$ 791.1
Americas, excluding the United States
Disaggregation of Revenue [Line Items]
Net sales	101.4	56.1	193.4	139.9
Europe / Middle East / Africa
Disaggregation of Revenue [Line Items]
Net sales	261.5	191.7	515.8	416.0
China
Disaggregation of Revenue [Line Items]
Net sales	170.6	148.4	329.3	251.2
Asia-Pacific, excluding China
Disaggregation of Revenue [Line Items]
Net sales	90.4	47.0	181.7	128.7
Mobile Industries
Disaggregation of Revenue [Line Items]
Net sales	494.2	342.6	998.7	809.3
Mobile Industries | United States
Disaggregation of Revenue [Line Items]
Net sales	237.4	186.6	480.3	424.8
Mobile Industries | Americas, excluding the United States
Disaggregation of Revenue [Line Items]
Net sales	52.3	26.8	101.1	75.6
Mobile Industries | Europe / Middle East / Africa
Disaggregation of Revenue [Line Items]
Net sales	124.3	78.8	251.4	187.5
Mobile Industries | China
Disaggregation of Revenue [Line Items]
Net sales	32.2	26.4	66.6	48.2
Mobile Industries | Asia-Pacific, excluding China
Disaggregation of Revenue [Line Items]
Net sales	48.0	24.0	99.3	73.2
Process Industries
Disaggregation of Revenue [Line Items]
Net sales	568.7	460.9	1,089.6	917.6
Process Industries | United States
Disaggregation of Revenue [Line Items]
Net sales	201.6	173.7	387.8	366.3
Process Industries | Americas, excluding the United States
Disaggregation of Revenue [Line Items]
Net sales	49.1	29.3	92.3	64.3
Process Industries | Europe / Middle East / Africa
Disaggregation of Revenue [Line Items]
Net sales	137.2	112.9	264.4	228.5
Process Industries | China
Disaggregation of Revenue [Line Items]
Net sales	138.4	122.0	262.7	203.0
Process Industries | Asia-Pacific, excluding China
Disaggregation of Revenue [Line Items]
Net sales	$ 42.4	$ 23.0	$ 82.4	$ 55.5
Service Revenue | Customer Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Revenues	4.00%			5.00%

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net sales	$ 1,062.9	$ 803.5	$ 2,088.3	$ 1,726.9
Segment EBIT:
Segment EBITDA	208.5	165.1	419.1	347.7
Recognition of net actuarial losses (gains)	(3.5)	(8.8)	(4.4)	(8.8)
Depreciation and amortization	(42.2)	(41.7)	(85.2)	(84.0)
Interest expense	(15.3)	(18.9)	(30.2)	(36.0)
Interest income	0.7	0.6	1.2	2.1
Income before income taxes	136.6	89.8	277.9	203.4
Bargain purchase price gain	0.0	0.0	0.6	0.0
Mobile Industries
Segment Reporting Information [Line Items]
Net sales	494.2	342.6	998.7	809.3
Segment EBIT:
Segment EBITDA	67.3	38.8	146.9	113.9
Process Industries
Segment Reporting Information [Line Items]
Net sales	568.7	460.9	1,089.6	917.6
Segment EBIT:
Segment EBITDA	141.2	126.3	272.2	233.8
Corporate Segment
Segment EBIT:
Corporate EBITDA	$ (11.6)	$ (6.5)	$ (23.2)	$ (17.6)

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 29.4	$ 28.0	$ 54.7	$ 57.6
Effective tax rate	21.50%	31.20%	19.70%	28.30%
Federal statutory rate, percent			21.00%

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income attributable to The Timken Company	$ 104.8	$ 61.9	$ 218.1	$ 142.6
Less: undistributed earnings allocated to nonvested stock	0.0	0.0	0.0	0.0
Net income available to common shareholders for basic and diluted earnings per share	$ 104.8	$ 61.9	$ 218.1	$ 142.6
Denominator:
Weighted-average number of shares outstanding - basic (in shares)	76,122,257	75,078,207	75,969,569	75,298,356
Stock options and awards - based on the treasury stock method (in shares)	1,131,900	620,082	1,288,192	733,693
Weighted-average number of shares outstanding, assuming dilution of stock options and awards (in shares)	77,254,157	75,698,289	77,257,761	76,032,049
Basic earnings per share (in dollars per share)	$ 1.38	$ 0.82	$ 2.87	$ 1.89
Diluted earnings per share (in dollars per share)	$ 1.36	$ 0.82	$ 2.82	$ 1.88
Antidilutive stock options outstanding	0	1,338,686	0	1,353,254

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Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Inventories, net:
Manufacturing supplies	$ 36.2	$ 34.8
Raw materials	122.0	99.5
Work in process	352.6	320.3
Inventory, Finished Goods, Gross	466.9	441.2
Subtotal	977.7	895.8
Allowance for obsolete and surplus inventory	(58.2)	(54.5)
Total Inventories, net	$ 919.5	$ 841.3

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Inventories - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Percentage of FIFO inventory	61.00%
Percentage of LIFO inventory	39.00%
Inventory reserve (LIFO)	$ 185.1	$ 172.1

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Financing Arrangements - Short Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Short-term debt	$ 76.0	$ 119.8
Line of Credit Accounts Receivable
Short-term Debt [Line Items]
Line of credit facility, interest rate at period end		0.96%
Short-term debt	0.0	$ 58.0
Current borrowing capacity	0.0
Foreign Subsidiary
Short-term Debt [Line Items]
Short-term debt	$ 76.0	$ 61.8
Line of credit stated variable interest rate, low range	0.50%	0.24%
Line of credit stated variable interest rate, high range	2.10%	1.75%

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Financing Arrangements - Narrative (Details) - USD ($) $ in Millions						3 Months Ended	6 Months Ended
	May 27, 2020	Jun. 25, 2019	Sep. 18, 2018	Sep. 11, 2018	Sep. 01, 2018	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Short-term Debt [Line Items]
Short-term debt						$ 76.0	$ 76.0		$ 119.8
Borrowings guarantees						41.9	41.9
Fair value of amount outstanding						1,435.4	1,435.4		1,444.8
Cash and cash equivalents						305.5	305.5		320.3
Proceeds from long-term debt							135.0	$ 550.0
Cone Drive
Short-term Debt [Line Items]
Effective date of acquisition					Sep. 01, 2018
Rollon
Short-term Debt [Line Items]
Effective date of acquisition			Sep. 18, 2018
Net Debt Construct
Short-term Debt [Line Items]
Cash and cash equivalents						$ 25.0	$ 25.0
Senior Unsecured Notes - Variable Rate
Short-term Debt [Line Items]
Line of credit expiration date							Jun. 30, 2021
Debt instrument, issuance date	May 27, 2020
Senior Unsecured Notes - 4.5%
Short-term Debt [Line Items]
Debt instrument, issuance date	May 27, 2020
Line of Credit Accounts Receivable
Short-term Debt [Line Items]
Line of credit expiration date						Nov. 30, 2021
Line of Credit Accounts Receivable
Short-term Debt [Line Items]
Maximum borrowing capacity under line of credit						$ 100.0	$ 100.0
Current borrowing capacity						0.0	0.0
Short-term debt						0.0	0.0		58.0
Foreign Subsidiary
Short-term Debt [Line Items]
Maximum borrowing capacity under line of credit						286.1	286.1
Line of credit facility, remaining borrowing capacity						209.6	209.6
Short-term debt						76.0	76.0		61.8
Borrowings guarantees						0.5	0.5
Senior Unsecured Notes - Variable Rate
Short-term Debt [Line Items]
Maximum borrowing capacity under line of credit						650.0	$ 650.0
Line of credit expiration date							Jun. 25, 2024
Line of credit facility, remaining borrowing capacity						640.6	$ 640.6
Debt instrument, issuance date		Jun. 25, 2019
Fair value of amount outstanding						9.4	9.4		9.7
Fixed Rate Bank Loan (BEKA)
Short-term Debt [Line Items]
Fair value of amount outstanding						17.5	$ 17.5		18.8
Maturity date							Jun. 30, 2033
Term Loan - Variable Rate
Short-term Debt [Line Items]
Debt instrument, issuance date				Sep. 11, 2018
Fair value of amount outstanding						$ 325.4	$ 325.4		$ 329.6
Maturity date				Sep. 11, 2023			Sep. 11, 2023
Proceeds from long-term debt				$ 350.0
Repurchase date							Jul. 12, 2019

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Financing Arrangements - Long Term Debt (Details) - USD ($) $ in Millions		6 Months Ended
	Sep. 11, 2018	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total long-term debt		$ 1,435.4	$ 1,444.8
Less: Current maturities		11.1	10.9
Long-term debt		$ 1,424.3	$ 1,433.9
Senior Unsecured Notes - 3.875%
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		3.875%	3.875%
Maturity date		Sep. 01, 2024
Euro Senior Unsecured Notes - 2.02%
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		2.02%	2.02%
Series A Medium Term Note | Minimum
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		6.74%	6.74%
Series A Medium Term Note | Maximum
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		7.76%	7.76%
Senior Unsecured Notes - Variable Rate
Debt Instrument [Line Items]
Total long-term debt		$ 9.4	$ 9.7
Debt instrument, interest rate, stated percentage		1.46%	2.01%
Term Loan - Variable Rate
Debt Instrument [Line Items]
Total long-term debt		$ 325.4	$ 329.6
Long-term debt, percentage bearing variable interest, percentage rate		1.35%	1.63%
Maturity date	Sep. 11, 2023	Sep. 11, 2023
Senior Unsecured Notes - 3.875%
Debt Instrument [Line Items]
Total long-term debt		$ 349.3	$ 349.0
Euro Senior Unsecured Notes - 2.02%
Debt Instrument [Line Items]
Total long-term debt		$ 177.6	182.9
Maturity date		Sep. 07, 2027
Senior Unsecured Notes - 4.5%
Debt Instrument [Line Items]
Total long-term debt		$ 396.7	$ 396.5
Debt instrument, interest rate, stated percentage		4.50%	4.50%
Maturity date		Dec. 15, 2028
Series A Medium Term Note
Debt Instrument [Line Items]
Total long-term debt		$ 154.7	$ 154.7
Fixed Rate Bank Loan (BEKA)
Debt Instrument [Line Items]
Total long-term debt		$ 17.5	$ 18.8
Debt instrument, interest rate, stated percentage		2.15%	2.15%
Maturity date		Jun. 30, 2033
Other Long Term Debt
Debt Instrument [Line Items]
Total long-term debt		$ 4.8	$ 3.6
Euro Member Countries, Euro | Senior Unsecured Notes - Variable Rate
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage		1.48%	1.48%

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Goodwill and Other Intangible Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Change in the carrying amount of Goodwill
Beginning balance	$ 1,047.6
Foreign currency translation adjustments and other changes	12.8
Ending balance	1,034.8
Mobile Industries
Change in the carrying amount of Goodwill
Beginning balance	384.6
Foreign currency translation adjustments and other changes	(5.9)
Ending balance	378.7
Process Industries
Change in the carrying amount of Goodwill
Beginning balance	663.0
Foreign currency translation adjustments and other changes	(6.9)
Ending balance	$ 656.1

XML

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	$ 1,096.8	$ 1,104.7
Intangible assets, Accumulated Amortization	(527.7)	(501.0)
Intangible assets, Net Carrying Amount	569.1	603.7
Intangible assets not subject to amortization:
Trade name	126.4	129.0
FAA air agency certificates	8.7	8.7
Indefinite Lived Intangible Assets Net	135.1	137.7
Total intangible assets, Gross Carrying Amount	1,231.9	1,242.4
Total intangible assets, Net Carrying Amount	704.2	741.4
Customer relationships
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	526.4	532.2
Intangible assets, Accumulated Amortization	(176.7)	(161.9)
Intangible assets, Net Carrying Amount	349.7	370.3
Technology and know-how
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	273.9	277.2
Intangible assets, Accumulated Amortization	(79.7)	(72.0)
Intangible assets, Net Carrying Amount	194.2	205.2
Trade names
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	14.3	14.2
Intangible assets, Accumulated Amortization	(9.2)	(8.8)
Intangible assets, Net Carrying Amount	5.1	5.4
Capitalized software
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	277.5	276.4
Intangible assets, Accumulated Amortization	(258.2)	(254.6)
Intangible assets, Net Carrying Amount	19.3	21.8
Other
Intangible assets subject to amortization:
Intangible assets, Gross Carrying Amount	4.7	4.7
Intangible assets, Accumulated Amortization	(3.9)	(3.7)
Intangible assets, Net Carrying Amount	$ 0.8	$ 1.0

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Goodwill [Line Items]
Goodwill	$ 1,034.8		$ 1,047.6
Amortization expense for intangible assets	28.2	$ 28.1
Future amortization expense 2021	57.5
Future amortization expense 2022	49.4
Future amortization expense 2023	46.3
Future amortization expense 2024	44.3
Future amortization expense 2025	$ 43.2

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Contingencies (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Accrual for environmental loss contingencies	$ 5.2	$ 5.3
Standard product warranty accrual	10.9	9.4	$ 7.5
Product Warranty Expense	5.0	9.4
Standard Product Warranty Accrual, Decrease for Payments	$ (3.5)	$ (7.5)

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Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Beginning Balance	$ 2,250.1	$ 1,900.3	$ 2,225.2	$ 1,954.8
Stated capital	40.7	53.1	40.7	53.1	$ 40.7	$ 40.7	$ 53.1	$ 53.1
Additional Paid in Capital, Common Stock	778.6	924.4	778.6	924.4	761.3	740.7	920.1	937.6
Retained Earnings (Accumulated Deficit)	1,510.9	2,005.7	1,510.9	2,005.7	1,429.0	1,339.5	1,964.8	1,907.4
Accumulated Other Comprehensive Income (Loss), Net of Tax	19.8	(99.2)	19.8	(99.2)	(2.1)	41.3	(118.9)	(50.1)
Treasury Stock, Value	(59.1)	(1,000.4)	(59.1)	(1,000.4)	(53.4)	(9.3)	(1,001.7)	(979.8)
Stockholders' Equity Attributable to Noncontrolling Interest	76.4	84.0	76.4	84.0	74.6	72.3	82.9	86.6
Stockholders' Equity Roll Forward
Net Income	107.2	61.8	223.2	145.8
Foreign currency translation adjustment	23.2	24.5	(21.2)	(54.3)
Pension and postretirement liability adjustments	(1.7)	(1.5)	(3.3)	(2.8)
Change in fair value of marketable securities		0.5		0.1
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(0.2)	(2.6)	2.0	1.6
Dividends	$ (22.9)	$ (21.0)	$ (46.7)	$ (43.9)
Dividend per share	$ 0.30	$ 0.28	$ 0.59	$ 0.56
Stock-based compensation expense	$ 6.0	$ 5.8	$ 12.5	$ 11.4
Purchase of treasury shares			(26.3)	(42.3)
Stock option exercise activity	11.3		25.4	7.5
Restricted shares surrendered (issued)		0.0		0.0
Payment, Tax Withholding, Share-based Payment Arrangement	(5.7)	(0.2)	(23.5)	(10.4)
Ending Balance	2,367.3	1,967.6	2,367.3	1,967.6
Income tax benefit	0.7	1.2	0.4	0.2
Other Comprehensive Income (Loss), Net of Tax, Change in Noncontrolling Interest				(0.5)
Cumulative Effect, Period of Adoption, Adjustment
Stockholders' Equity Roll Forward
Ending Balance		(0.4)		(0.4)
Other Paid-In Capital
Stockholders' Equity Roll Forward
Stock-based compensation expense	6.0	5.8	12.5	11.4
Stock option exercise activity	11.3		25.4	0.9
Restricted shares surrendered (issued)		(1.5)		(23.7)
Retained Earnings
Stockholders' Equity Roll Forward
Net Income	104.8	61.9	218.1	142.6
Dividends	(22.9)	(21.0)	(46.7)	(43.9)
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment
Stockholders' Equity Roll Forward
Ending Balance		(0.4)		(0.4)
Accumulated Other Comprehensive Income (Loss)
Stockholders' Equity Roll Forward
Foreign currency translation adjustment	23.8	23.3	(20.2)	(48.0)
Pension and postretirement liability adjustments	(1.7)	(1.5)	(3.3)	(2.8)
Change in fair value of marketable securities		0.5		0.1
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(0.2)	(2.6)	2.0	1.6
Treasury Stock
Stockholders' Equity Roll Forward
Purchase of treasury shares			26.3	42.3
Stock option exercise activity				8.4
Restricted shares surrendered (issued)		1.5		23.7
Payment, Tax Withholding, Share-based Payment Arrangement	(5.7)	(0.2)	(23.5)	(10.4)
Non controlling Interest
Stockholders' Equity Roll Forward
Net Income	2.4	(0.1)	5.1	3.2
Foreign currency translation adjustment	(0.6)	1.2	(1.0)	(6.3)
Other Comprehensive Income (Loss), Net of Tax, Change in Noncontrolling Interest				(0.5)
Pension and other postretirement liability adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax	60.1	64.1	60.1	64.1	$ 61.8	$ 63.4	$ 65.6	$ 66.9
Stockholders' Equity Roll Forward
Income tax benefit	$ 0.5	0.5	$ 1.1	$ 1.0
Accounting Standards Update 2016-13
Stockholders' Equity Roll Forward
Cumulative effect of change in accounting		$ 0.2

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Impairment and Restructuring Charges - Restructuring Charges by Segment (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
Impairment charges	$ 1.1			$ 4.5	$ 0.1
Severance and related benefit costs	0.1		$ 3.2	0.6	5.9
Exit costs	0.1		(0.1)	0.2	0.7
Total	1.3		3.1	5.3	6.7
Mobile Industries
Restructuring Cost and Reserve [Line Items]
Impairment charges	1.0			1.1	0.0
Severance and related benefit costs	0.0		1.5	0.0	1.6
Exit costs	0.1		(0.3)	0.2	0.3
Total	1.1		1.2	1.3	1.9
Process Industries
Restructuring Cost and Reserve [Line Items]
Impairment charges	0.1	$ 3.3		3.4	0.1
Severance and related benefit costs	0.1		1.7	0.6	4.2
Exit costs	0.0		0.2	0.0	0.4
Total	0.2		1.9	4.0	4.7
Corporate Segment
Restructuring Cost and Reserve [Line Items]
Impairment charges	0.0			0.0	0.0
Severance and related benefit costs	0.0		0.0	0.0	0.1
Exit costs	0.0		0.0	0.0	0.0
Total	$ 0.0		$ 0.0	$ 0.0	$ 0.1

XML

Impairment and Restructuring Charges - Narrative (Details)

3 Months Ended

6 Months Ended

Jun. 30, 2021

USD ($)

employee

Mar. 31, 2021

USD ($)

Jun. 30, 2020

USD ($)

employee

Jun. 30, 2021

USD ($)

employee

Jun. 30, 2020

USD ($)

employee

Dec. 31, 2021

employee

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

$ 100,000

$ 3,200,000

$ 600,000

$ 5,900,000

Total

1,300,000

3,100,000

5,300,000

6,700,000

Exit costs

$ 100,000

(100,000)

$ 200,000

700,000

Number of Employees Expected to be Hired | employee

130

130

Impairment charges

$ 1,100,000

$ 4,500,000

100,000

Impairment and Restructuring Charges

Note 13 - Impairment and Restructuring Charges

Impairment and restructuring charges by segment are comprised of the following:

For the three months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.0	$	0.1	$	—	$	1.1
Severance and related benefit costs	—		0.1		—		0.1
Exit costs	0.1		—		—		0.1
Total	$	1.1	$	0.2	$	—	$	1.3

For the six months ended June 30, 2021:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	1.1	$	3.4	$	—	$	4.5
Severance and related benefit costs	—		0.6		—		0.6
Exit costs	0.2		—		—		0.2
Total	$	1.3	$	4.0	$	—	$	5.3

For the three months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Severance and related benefit costs	$	1.5	$	1.7	$	—	$	3.2
Exit costs	(0.3)		0.2		—		(0.1)
Total	$	1.2	$	1.9	$	—	$	3.1

For the six months ended June 30, 2020:

	Mobile Industries		Process Industries		Unallocated Corporate		Total
Impairment charges	$	—	$	0.1	$	—	$	0.1
Severance and related benefit costs	1.6		4.2		0.1		5.9
Exit costs	0.3		0.4		—		0.7
Total	$	1.9	$	4.7	$	0.1	$	6.7

The following discussion explains the impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above.

Coronavirus ("COVID-19") Pandemic Cost Reduction Initiatives:

During the three months ended June 30, 2020, the Company recorded $2.0 million in severance and related benefit costs to eliminate approximately 20 salaried positions. Of the $2.0 million charge, $0.6 million related to the Mobile Industries segment and $1.4 million related to the Process Industries segment.

Mobile Industries:

On July 19, 2021, the Company announced the closure of its bearing manufacturing facility in Villa Carcina, Italy. The Company will be transferring the manufacturing of its single-row tapered roller bearing production to other bearing facilities in Europe, Asia and the United States. The plant is expected to close by the end of 2021 and is expected to affect approximately 110 employees. The Company expects to incur approximately $7 million to $10 million of expenses related to this closure. Ahead of this announcement, the Company reviewed assets for impairment. As a result, the Company recorded impairment charges of $1.0 million during the three months ended June 30, 2021.

Note 13 - Impairment and Restructuring Charges (continued)

On October 16, 2019, the Company announced the reorganization of its bearing manufacturing facility in Gaffney, South Carolina. The Company transferred its high-volume bearing production and roller production to other Timken manufacturing facilities in the United States. The transfer of these operations was substantially completed by the end of the third quarter of 2020 and affected approximately 150 employees. The Company expected to incur approximately $8 million to $10 million of pretax costs in total related to this reorganization. During the six months ended June 30, 2020, the Company recognized severance and related benefits of $0.3 million and exit costs of $0.3 million related to this reorganization. The Company incurred cumulative pretax costs related to this reorganization of $7.8 million as of June 30, 2021, including rationalization costs recorded in cost of products sold.

Process Industries:

On February 4, 2020, the Company announced the closure of its chain manufacturing facility in Indianapolis, Indiana. This facility was part of the Diamond Chain Company ("Diamond Chain") acquisition completed on April 1, 2019. The Company will be transferring the manufacturing of its Diamond Chain product line to its chain facility in Fulton, Illinois. The chain plant is expected to close by the end of the fourth quarter of 2021 and is expected to affect approximately 240 employees. The Company expects to hire approximately 130 full-time positions in Fulton, Illinois and expects to incur approximately $10 million to $12 million of expenses related to this closure. During the three months ended June 30, 2021 and June 30, 2020, the Company recorded severance and related benefit costs of $0.3 million and $0.3 million, respectively, related to this closure. During the six months ended June 30, 2021 and June 30, 2020, the Company recorded severance and related benefit costs of $0.6 million and $2.2 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $8.5 million as of June 30, 2021, including rationalization costs recorded in cost of products sold.

In addition, the Company recorded impairment charges of $3.3 million related to certain engineering-related assets used in the business during the three months ended March 31, 2021. Management concluded no further investment would be made in these assets and as a result, reduced the value to zero.

Consolidated Restructuring Accrual:

The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2021 and twelve months ended December 31, 2020:

	June 30, 2021		December 31, 2020
Beginning balance, January 1	$	8.0	$	2.7
Expense	0.8		20.8
Payments	(2.5)		(15.5)
Ending balance	$	6.3	$	8.0

The restructuring accrual at June 30, 2021 was included in other current liabilities on the Consolidated Balance Sheets.

Gaffney

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

300,000

Exit costs

300,000

Restructuring charges

7,800,000

Diamond Chain

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

$ 300,000

300,000

600,000

2,200,000

Restructuring charges

8,500,000

Mobile Industries

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

0

1,500,000

0

1,600,000

Total

1,100,000

1,200,000

1,300,000

1,900,000

Exit costs

100,000

(300,000)

200,000

300,000

Impairment charges

1,000,000.0

1,100,000

0

Mobile Industries | Villa Carcina

Restructuring Cost and Reserve [Line Items]

Impairment charges

1,000,000.0

Process Industries

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

100,000

1,700,000

600,000

4,200,000

Total

200,000

1,900,000

4,000,000.0

4,700,000

Exit costs

0

200,000

0

400,000

Impairment charges

100,000

$ 3,300,000

3,400,000

100,000

Corporate Segment

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

0

0

0

100,000

Total

0

0

0

100,000

Exit costs

0

0

0

0

Impairment charges

$ 0

$ 0

$ 0

Restructuring Charges | Gaffney

Restructuring Cost and Reserve [Line Items]

Number of employees affected | employee

150

150

Restructuring Charges | Diamond Chain | Forecast

Restructuring Cost and Reserve [Line Items]

Number of employees affected | employee

240

Restructuring Charges | Villa Carcina

Restructuring Cost and Reserve [Line Items]

Number of employees affected | employee

110

110

Restructuring Charges | Minimum | Gaffney

Restructuring Cost and Reserve [Line Items]

Total

$ 8,000,000

Restructuring Charges | Minimum | Diamond Chain

Restructuring Cost and Reserve [Line Items]

Total

10,000,000

Restructuring Charges | Minimum | Villa Carcina

Restructuring Cost and Reserve [Line Items]

Total

7,000,000

Restructuring Charges | Maximum | Gaffney

Restructuring Cost and Reserve [Line Items]

Total

10,000,000

Restructuring Charges | Maximum | Diamond Chain

Restructuring Cost and Reserve [Line Items]

Total

12,000,000

Restructuring Charges | Maximum | Villa Carcina

Restructuring Cost and Reserve [Line Items]

Total

$ 10,000,000

COVID-19 Cost Reductions

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

$ 2,000,000.0

Number of employees eliminated | employee

20

20

Number of employees eliminated | employee

20

20

COVID-19 Cost Reductions | Mobile Industries

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

$ 600,000

COVID-19 Cost Reductions | Process Industries

Restructuring Cost and Reserve [Line Items]

Severance and related benefit costs

$ 1,400,000

XML

Impairment and Restructuring Charges - Consolidated Restructuring Accrual (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Restructuring Reserve	$ 8.0	$ 6.3	$ 8.0	$ 2.7
Expense	20.8	0.8
Payments	$ (15.5)	$ (2.5)

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Retirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2021
Components of net periodic benefit cost:
Recognition of net actuarial losses	$ 3.5	$ 8.8	$ 4.4	$ 8.8
Pension Plan
Components of net periodic benefit cost:
Service cost	2.8	3.1	5.8	6.2
Interest cost	5.6	6.6	11.1	13.3
Expected return on plan assets	(8.7)	(8.5)	(17.3)	(17.0)
Amortization of prior service cost	0.4	0.5	0.7	0.9
Recognition of net actuarial losses	3.5	8.8	4.4	8.8
Net periodic benefit cost (credit)	3.6	10.5	4.7	12.2
Pension Plan | Subsequent Event
Components of net periodic benefit cost:
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year					$ 15.0
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year					$ 15.0
Pension Plan | United States
Components of net periodic benefit cost:
Service cost	2.3	2.7	4.8	5.4
Interest cost	4.5	5.3	8.9	10.5
Expected return on plan assets	(6.1)	(6.4)	(12.2)	(12.7)
Amortization of prior service cost	0.3	0.4	0.6	0.8
Recognition of net actuarial losses	3.5	8.8	4.4	8.8
Net periodic benefit cost (credit)	4.5	10.8	6.5	12.8
Deferred Compensation Arrangement with Individual, Compensation Expense			9.6
Deferred Compensation Arrangement with Individual, Compensation Expense			9.6
Pension Plan | Foreign Plan
Components of net periodic benefit cost:
Service cost	0.5	0.4	1.0	0.8
Interest cost	1.1	1.3	2.2	2.8
Expected return on plan assets	(2.6)	(2.1)	(5.1)	(4.3)
Amortization of prior service cost	0.1	0.1	0.1	0.1
Recognition of net actuarial losses	0.0		0.0	0.0
Net periodic benefit cost (credit)	$ (0.9)	$ (0.3)	$ (1.8)	$ (0.6)

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Postretirement Benefit Plans (Details) - Postretirement Plan - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Interest cost		$ 0.3	$ 0.5	$ 0.7	$ 1.0
Expected return on plan assets		0.0	(0.1)	0.0	(0.2)
Amortization of prior service credit		(2.5)	(2.5)	(5.0)	(4.9)
Net periodic benefit credit		(2.1)	(2.0)	(4.2)	(4.0)
Net periodic benefit cost	$ 11.1
Service cost		$ 0.1	$ 0.1	$ 0.1	$ 0.1

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	$ (2.1)	$ (118.9)	$ 41.3	$ (50.1)
Other comprehensive income (loss) before reclassifications and income taxes	21.0	23.0	(22.0)	(49.7)
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes	(0.4)	(3.3)	(0.9)	(5.9)
Income tax benefit	0.7	1.2	0.4	0.2
Net current period other comprehensive income (loss), net of income taxes	21.3	20.9	(22.5)	(55.4)
Noncontrolling interest	0.6	(1.2)	1.0	6.3
Net current period comprehensive income (loss), net of income taxes and noncontrolling interest	21.9	19.7	(21.5)	(49.1)
Ending Balance	19.8	(99.2)	19.8	(99.2)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(62.0)	(186.6)	(18.0)	(115.3)
Other comprehensive income (loss) before reclassifications and income taxes	23.2	24.5	(21.2)	(54.3)
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes	0.0	0.0	0.0	0.0
Income tax benefit	0.0	0.0	0.0	0.0
Net current period other comprehensive income (loss), net of income taxes	23.2	24.5	(21.2)	(54.3)
Noncontrolling interest	0.6	(1.2)	1.0	6.3
Net current period comprehensive income (loss), net of income taxes and noncontrolling interest	23.8	23.3	(20.2)	(48.0)
Ending Balance	(38.2)	(163.3)	(38.2)	(163.3)
Pension and other postretirement liability adjustments
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	61.8	65.6	63.4	66.9
Other comprehensive income (loss) before reclassifications and income taxes	(0.1)	0.0	(0.1)	0.2
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes	(2.1)	(2.0)	(4.3)	(4.0)
Income tax benefit	0.5	0.5	1.1	1.0
Net current period other comprehensive income (loss), net of income taxes	(1.7)	(1.5)	(3.3)	(2.8)
Noncontrolling interest	0.0	0.0	0.0	0.0
Net current period comprehensive income (loss), net of income taxes and noncontrolling interest	(1.7)	(1.5)	(3.3)	(2.8)
Ending Balance	60.1	64.1	60.1	64.1
Unrealized gain (loss) on marketable securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	0.0	(0.4)	0.0	0.0
Other comprehensive income (loss) before reclassifications and income taxes	0.0	0.7	0.0	0.2
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes	0.0	0.0	0.0	0.0
Income tax benefit	0.0	(0.2)	0.0	(0.1)
Net current period other comprehensive income (loss), net of income taxes	0.0	0.5	0.0	0.1
Noncontrolling interest	0.0	0.0	0.0	0.0
Net current period comprehensive income (loss), net of income taxes and noncontrolling interest	0.0	0.5	0.0	0.1
Ending Balance	0.0	0.1	0.0	0.1
Change in fair value of derivative financial instruments
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(1.9)	2.5	(4.1)	(1.7)
Other comprehensive income (loss) before reclassifications and income taxes	(2.1)	(2.2)	(0.7)	4.2
Amounts reclassified from accumulated other comprehensive (loss) income before income taxes	1.7	(1.3)	3.4	(1.9)
Income tax benefit	0.2	0.9	(0.7)	(0.7)
Net current period other comprehensive income (loss), net of income taxes	(0.2)	(2.6)	2.0	1.6
Noncontrolling interest	0.0	0.0	0.0	0.0
Net current period comprehensive income (loss), net of income taxes and noncontrolling interest	(0.2)	(2.6)	2.0	1.6
Ending Balance	$ (2.1)	$ (0.1)	$ (2.1)	$ (0.1)

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Fair Value - Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets and Liabilities Measured at fair value on a recurring basis
Restricted cash	$ 0.8	$ 0.8
Fair Value, Recurring
Assets and Liabilities Measured at fair value on a recurring basis
Cash and cash equivalents	305.5	320.3
Restricted cash	0.8	0.8
Short-term investments	52.0	37.6
Foreign currency forward contracts	0.9	1.1
Total Assets	359.2	359.8
Foreign currency forward contracts	3.4	8.1
Total Liabilities	3.4	8.1
Fair Value, Recurring | Level 1
Assets and Liabilities Measured at fair value on a recurring basis
Cash and cash equivalents	303.5	318.6
Restricted cash	0.8	0.8
Short-term investments	0.0	0.0
Foreign currency forward contracts	0.0	0.0
Total Assets	304.3	319.4
Foreign currency forward contracts	0.0	0.0
Total Liabilities	0.0	0.0
Fair Value, Recurring | Level 2
Assets and Liabilities Measured at fair value on a recurring basis
Cash and cash equivalents	2.0	1.7
Restricted cash	0.0	0.0
Short-term investments	52.0	37.6
Foreign currency forward contracts	0.9	1.1
Total Assets	54.9	40.4
Foreign currency forward contracts	3.4	8.1
Total Liabilities	3.4	8.1
Fair Value, Recurring | Level 3
Assets and Liabilities Measured at fair value on a recurring basis
Cash and cash equivalents	0.0	0.0
Restricted cash	0.0	0.0
Short-term investments	0.0	0.0
Foreign currency forward contracts	0.0	0.0
Total Assets	0.0	0.0
Foreign currency forward contracts	0.0	0.0
Total Liabilities	$ 0.0	$ 0.0

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Fair Value - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Long-term fixed-rate debt, fair value	$ 1,204.0	$ 1,220.7
Long-term fixed-rate debt, carrying value	$ 1,095.7	$ 1,103.2

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Derivatives Instruments and Hedging Activities - Narrative (Details) € in Millions		3 Months Ended		6 Months Ended
	Sep. 15, 2020 EUR (€)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Sep. 08, 2020 USD ($)
Derivative [Line Items]
Derivative, amount of hedged item							$ 100,000,000
Proceeds from long-term debt				$ 135,000,000.0	$ 550,000,000.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		$ 400,000	$ 3,300,000	900,000	$ 5,900,000
Derivative, notional amount		187,800,000		187,800,000		$ 173,200,000
Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount		88,700,000		88,700,000		86,900,000
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount		99,100,000		99,100,000		$ 86,300,000
2027 Notes
Derivative [Line Items]
Proceeds from long-term debt | €	€ 150.0
Net Investment Hedging
Derivative [Line Items]
Derivative, amount of hedged item | €	€ 54.5
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		$ 700,000		$ 1,900,000

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Derivatives Instruments and Hedging Activities - Cash Flow Hedging Strategy (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives not designated as hedging instruments:	$ (0.9)	$ (3.7)	$ (0.7)	$ 1.8