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 September 30, 2022

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<br>incorporation or organization)		(I.R.S. Employer<br>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 September 30, 2022
Common Shares, without par value	72,743,592 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	28
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
	Item 4.	Controls and Procedures	47
II.	PART II.
	Item 1.	Legal Proceedings	48
	Item1A.	Risk Factors	48
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
	Item 6.	Exhibits	49

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE TIMKEN COMPANY AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

	Three Months Ended <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
(Dollars in millions, except per share data)
Net sales	$	1,136.4	$	1,037.3	$	3,414.7	$	3,125.6
Cost of products sold	813.6		769.4		2,422.7		2,256.2
Gross Profit	322.8		267.9		992.0		869.4
Selling, general and administrative expenses	159.8		140.7		469.8		434.2
Impairment and restructuring charges	31.3		2.9		42.3		8.2
Operating Income	131.7		124.3		479.9		427.0
Interest expense	(19.3)		(14.8)		(51.9)		(45.0)
Interest income	1.1		0.5		2.7		1.7
Non-service pension and other postretirement income (expense)	1.3		0.5		(5.3)		5.9
Other income, net	2.3		1.5		1.4		0.3
Income Before Income Taxes	117.1		112.0		426.8		389.9
Provision for income taxes	26.7		20.4		108.9		75.1
Net Income	90.4		91.6		317.9		314.8
Less: Net income attributable to noncontrolling interest	3.4		3.5		7.7		8.6
Net Income Attributable to The Timken Company	$	87.0	$	88.1	$	310.2	$	306.2
Net Income per Common Share Attributable to The Timken <br>    Company Common Shareholders
Basic earnings per share	$	1.19	$	1.16	$	4.20	$	4.03
Diluted earnings per share	$	1.18	$	1.14	$	4.16	$	3.97

See accompanying Notes to the Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
(Dollars in millions)
Net Income	$	90.4	$	91.6	$	317.9	$	314.8
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(136.8)		(32.9)		(272.5)		(54.1)
Pension and postretirement liability adjustments	(1.4)		(1.5)		(4.3)		(4.8)
Change in fair value of derivative financial instruments	1.8		2.5		6.0		4.5
Other comprehensive loss, net of tax	(136.4)		(31.9)		(270.8)		(54.4)
Comprehensive income (loss), net of tax	(46.0)		59.7		47.1		260.4
Less: comprehensive income attributable to noncontrolling interest	0.1		3.7		2.9		7.8
Comprehensive income (loss) attributable to<br>     The Timken Company	$	(46.1)	$	56.0	$	44.2	$	252.6

See accompanying Notes to the Consolidated Financial Statements.

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Consolidated Balance Sheets

	(Unaudited)
(Dollars in millions)	September 30,<br>2022		December 31,<br>2021
ASSETS
Current Assets
Cash and cash equivalents	$	300.9	$	257.1
Restricted cash	0.7		0.8
Accounts receivable, less allowances (2022 – $16.1 million; 2021 – $16.9 million)	735.5		626.4
Unbilled receivables	83.6		104.5
Inventories, net	1,132.6		1,042.7
Deferred charges and prepaid expenses	40.1		32.2
Other current assets	160.1		149.8
Total Current Assets	2,453.5		2,213.5
Property, Plant and Equipment, net	1,069.0		1,055.3
Other Assets
Goodwill	979.1		1,022.7
Other intangible assets	594.7		668.8
Operating lease assets	102.4		118.9
Deferred income taxes	56.7		67.6
Other non-current assets	26.5		23.9
Total Other Assets	1,759.4		1,901.9
Total Assets	$	5,281.9	$	5,170.7
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable, trade	373.4		430.0
Short-term debt, including current portion of long-term debt	371.8		53.8
Salaries, wages and benefits	142.8		136.0
Income taxes payable	27.6		26.2
Other current liabilities	293.4		250.6
Total Current Liabilities	1,209.0		896.6
Non-Current Liabilities
Long-term debt	1,411.3		1,411.1
Accrued pension benefits	162.0		155.6
Accrued postretirement benefits	44.2		45.8
Long-term operating lease liabilities	67.1		77.6
Deferred income taxes	114.0		121.4
Other non-current liabilities	95.5		84.9
Total Non-Current Liabilities	1,894.1		1,896.4
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) (2022 – 77,665,364 shares;<br><br>2021 – 77,090,104 shares)
Stated capital	40.7		40.7
Other paid-in capital	817.2		786.9
Retained earnings	1,857.4		1,616.4
Accumulated other comprehensive loss	(289.0)		(23.0)
Treasury shares at cost (2022 – 4,921,772 shares; 2021 – 1,715,282 shares)	(332.7)		(126.1)
Total Shareholders’ Equity	2,093.6		2,294.9
Noncontrolling Interest	85.2		82.8
Total Equity	2,178.8		2,377.7
Total Liabilities and Equity	$	5,281.9	$	5,170.7

See accompanying Notes to the Consolidated Financial Statements.

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Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended <br>September 30,
	2022		2021
(Dollars in millions)
CASH PROVIDED (USED)
Operating Activities
Net income	$	317.9	$	314.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	122.0		126.5
Impairment charges	38.3		4.5
Loss on sale of assets	1.0		1.0
Loss on divestiture	2.1		—
Acquisition-related gain	—		(0.9)
Deferred income tax provision (benefit)	4.1		(6.4)
Stock-based compensation expense	22.3		15.6
Pension and other postretirement expense	11.9		2.9
Pension and other postretirement benefit contributions and payments	(11.5)		(18.2)
Changes in operating assets and liabilities:
Accounts receivable	(157.0)		(127.5)
Unbilled receivables	(5.2)		25.1
Inventories	(147.1)		(144.2)
Accounts payable, trade	(12.6)		60.5
Other accrued expenses	45.8		50.2
Income taxes	3.2		(0.3)
Other, net	(12.9)		(19.0)
Net Cash Provided by Operating Activities	222.3		284.6
Investing Activities
Capital expenditures	(122.5)		(103.6)
Acquisitions, net of cash acquired of $0.2 million	(152.4)		(7.2)
Proceeds from disposal of property, plant and equipment	3.3		—
Proceeds from divestitures, net of cash divested	1.0		—
Investments in short-term marketable securities, net	27.8		(5.4)
Other, net	0.8		0.3
Net Cash Used in Investing Activities	(242.0)		(115.9)
Financing Activities
Cash dividends paid to shareholders	(69.2)		(69.5)
Purchase of treasury shares	(193.3)		(56.6)
Proceeds from exercise of stock options	4.2		25.4
Payments related to tax withholding for stock-based compensation	(9.5)		(23.5)
Borrowings on accounts receivable facility	197.0		186.1
Payments on accounts receivable facility	(197.0)		(244.1)
Proceeds from long-term debt	684.5		215.0
Payments on long-term debt	(347.7)		(224.4)
Deferred financing costs	(3.5)		—
Short-term debt activity, net	17.0		(30.3)
Noncontrolling interest dividends paid	(0.5)		(0.5)
Other	6.5		—
Net Cash Provided by (Used in) Financing Activities	88.5		(222.4)
Effect of exchange rate changes on cash	(25.1)		(4.8)
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	43.7		(58.5)
Cash, cash equivalents and restricted cash at beginning of year	257.9		321.1
Cash, Cash Equivalents and Restricted Cash at End of Period	$	301.6	$	262.6

See accompanying Notes to the Consolidated Financial Statements.

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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, 2021.

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, 2021.

Recent Accounting Pronouncements:

New Accounting Guidance Adopted:

In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with ASC Topic 606 as if the acquirer had originated the contracts. This new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2021-08 effective January 1, 2022, 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 September 2022, the FASB issued ASU 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50)." ASU 2022-04 is intended to establish disclosures that enhance the transparency of a supplier finance program used by an entity in connection with the purchase of goods and services. Supplier finance programs, which also may be referred to as reverse factoring, payables finance or structured payables arrangements, allow a buyer to offer its suppliers the option for access to payment in advance of an invoice due date, which is paid by a third-party finance provider or intermediary. Under the guidance, a buyer in a supplier finance program would disclose qualitative and quantitative information about its supplier finance programs. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance.

In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832)." ASU 2021-10 is intended to increase transparency of government assistance by requiring entities to disclose the types of government assistance, the entity's accounting for government assistance, and the effect of the government assistance on an entity's financial statements. This new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance.

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Note 2 - Significant Accounting Policies (continued)

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." ASU 2020-04 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. The Company continues to monitor future amendments, such as the current proposal by the FASB to defer the sunset date of reference rate reform relief by two years to December 31, 2024, after which entities would no longer be permitted to apply the relief in Topic 848.

Note 3 - Acquisitions and Divestitures

Acquisitions:

On May 31, 2022, the Company completed the acquisition of Spinea, s.r.o. ("Spinea"), a European technology leader and manufacturer of highly engineered cycloidal reduction gears and actuators, with estimated 2022 full year sales of approximately $40.0 million. Spinea’s solutions primarily serve high-precision automation and robotics applications in the factory automation sector. Spinea is located in Presov, Slovakia. The purchase price for this acquisition was $152.4 million, net of cash acquired of $0.2 million, subject to customary post-closing adjustments. Based on markets and customers served, results for Spinea are reported in the Process Industries segment.

The following table presents the purchase price allocation at fair value, for the Spinea acquisition as of September 30, 2022.

	Initial Purchase <br>Price Allocation
Assets:
Accounts receivable	$	2.1
Inventories	20.9
Other current assets	2.9
Property, plant and equipment	82.0
Goodwill	39.2
Other intangible assets	32.1
Total assets acquired	$	179.2
Liabilities:
Accounts payable, trade	$	7.4
Salaries, wages and benefits	1.5
Other current liabilities	1.2
Long-term debt	0.2
Deferred income taxes	1.0
Other non-current liabilities	15.5
Total liabilities assumed	$	26.8
Net assets acquired	$	152.4

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Note 3 - Acquisitions and Divestitures (continued)

The following table summarizes the preliminary purchase price allocation for identifiable intangible assets acquired in 2022:

	Preliminary Purchase Price Allocation
			Weighted - Average Life
Trade names	$	8.2	20 years
Technology and know-how	6.1		6 years
Customer relationships	17.2		17 years
Capitalized software	0.6		2 years
Total intangible assets	$	32.1

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 judgement 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.

The amounts in the table above represent the preliminary purchase price allocation for Spinea. This purchase price allocation, including the residual amount allocated to goodwill, is based on preliminary information and is subject to change as additional information concerning final asset and liability valuations are obtained. As of September 30, 2022, no elements of the purchase price allocation have been finalized. 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 has been completed on the acquisition date.

On August 20, 2021, the Company completed the acquisition of the assets of Intelligent Machine Solutions ("iMS"), a manufacturer of industrial robotics and automation solutions, with annual sales of approximately $6.0 million. iMS is headquartered in Norton Shores, Michigan. The total purchase price for this acquisition was $7.7 million, including post-closing adjustments. In addition, the seller has the opportunity to earn $3.0 million of contingent performance-based consideration between January 1, 2022 and June 30, 2024. This additional component will be accounted for as compensation expense over that period. Based on markets and customers served, results for iMS are primarily reported in the Process Industries segment.

The following table presents the final purchase price allocation at fair value for the iMS acquisition:

	Final Purchase Price Allocation
Total assets acquired	$	9.8
Total liabilities assumed	2.1
Net assets acquired	$	7.7

On September 6, 2022, the Company entered into an agreement to acquire GGB Bearing Technology ("GGB Bearings"), a division of Enpro, Industries and a global technology and market leader of premium engineered metal-polymer plain bearings for $305 million subject to customary post-closing adjustments. GGB Bearings revenue is estimated to be $200 million for the full year 2022. GGB Bearings' products are used mainly in industrial applications, and the acquisition has manufacturing facilities across the United States, Europe and China. The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2022 and will be funded with cash on hand and borrowings from existing credit facilities.

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Note 3 - Acquisitions and Divestitures (continued)

Divestitures:

On September 1, 2022, the Company completed the divestiture of Timken-Rus Service Company ooo ("Timken Russia"), one of its two subsidiaries in Russia. Timken Russia had net sales of $4.8 million and $19.6 million in 2022 and 2021, respectively. The results of operations of Timken Russia were reported in the Mobile Industries and Process Industries segments based on customers and underlying market sectors served. The Company recorded proceeds of $1.0 million, net of cash divested of $5.3 million, and recognized a loss of $2.1 million on the sale of the business. The loss was reflected in other income, net in the Consolidated Statement of Income.

The Company made the decision to sell its Timken Aerospace Drive Systems, LLC ("ADS") business, located in Manchester, Connecticut. On October 7, 2022, the Company entered into a definitive agreement to sell the ADS business. During the third quarter of 2022, the business met the held for sale criteria, and the Company reclassified its assets and liabilities accordingly. Assets held for sale of $40.1 million are included in other current assets, and liabilities held for sale of $7.3 million are included in other current liabilities on the Consolidated Balance Sheet. As a result of the carrying value of the business exceeding the estimated sales price less costs to sell, the Company recorded an impairment charge of $29.3 million. The impairment charge is included in the impairment and restructuring line on the Consolidated Statement of Income. The Company expects to complete the sale during the fourth quarter of 2022, subject to customary closing conditions. Operating results of the ADS business are included the Mobile Industries segment.

The following table provides the major captions of assets and liabilities held for sale at September 30, 2022:

Assets:
Accounts receivable, net	$	6.0
Unbilled receivables	25.4
Inventories, net	13.4
Property, plant and equipment, net	4.4
Operating lease assets	3.7
Intangible assets, net	16.2
Other assets	0.3
Total assets	69.4
Less: impairment charge	(29.3)
Assets held for sale	$	40.1
Liabilities:
Accounts payable, trade	$	2.1
Salaries, wages and benefits	1.1
Other current liabilities	1.0
Long-term operating lease liabilities	3.1
Liabilities held for sale	$	7.3

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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 nine months ended September 30, 2022 and 2021, respectively:

	Three Months Ended						Three Months Ended
	September 30, 2022						September 30, 2021
	Mobile		Process		Total		Mobile		Process		Total
United States	$	276.3	$	238.7	$	515.0	$	235.3	$	194.2	$	429.5
Americas excluding the United States	59.2		65.1		124.3		54.9		47.4		102.3
Europe / Middle East / Africa	105.2		124.7		229.9		118.2		137.5		255.7
China	30.4		129.5		159.9		27.7		125.9		153.6
Asia-Pacific excluding China	55.8		51.5		107.3		51.2		45.0		96.2
Net sales	$	526.9	$	609.5	$	1,136.4	$	487.3	$	550.0	$	1,037.3			Nine Months Ended						Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022						September 30, 2021
	Mobile		Process		Total		Mobile		Process		Total
United States	$	808.8	$	695.2	$	1,504.0	$	715.6	$	582.0	$	1,297.6
Americas excluding the United States	181.0		184.8		365.8		156.0		139.7		295.7
Europe / Middle East / Africa	352.7		402.1		754.8		369.6		401.9		771.5
China	92.3		373.9		466.2		94.3		388.6		482.9
Asia-Pacific excluding China	176.1		147.8		323.9		150.5		127.4		277.9
Net sales	$	1,610.9	$	1,803.8	$	3,414.7	$	1,486.0	$	1,639.6	$	3,125.6

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 nine months ended September 30, 2022 and 2021, respectively:

	Nine Months Ended	Nine Months Ended
Revenue by sales channel	September 30, 2022	September 30, 2021
Original equipment manufacturers	60%	61%
Distribution/end users	40%	39%

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 nine months ended September 30, 2022 and September 30, 2021, approximately 9% and 8%, 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 4% of total net sales represented service revenue during the nine months ended September 30, 2022 and September 30, 2021, respectively. Finally, business with the United States ("U.S.") government or its contractors represented approximately 7% of total net sales during each of the nine months ended September 30, 2022 and September 30, 2021.

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 $170.7 million at September 30, 2022.

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Note 4 - Revenue (continued)

Unbilled Receivables:

The following table contains a rollforward of unbilled receivables for the nine months ended September 30, 2022 and the twelve months ended December 31, 2021:

	September 30,<br>2022		December 31,<br>2021
Beginning balance, January 1	$	104.5	$	110.9
Additional unbilled revenue recognized	301.9		383.0
Less: amounts billed to customers	(297.4)		(389.4)
Less: unbilled receivables reclassified to assets held for sale	(25.4)		—
Ending balance	$	83.6	$	104.5

There were no impairment losses recorded on unbilled receivables for the nine months ended September 30, 2022 and September 30, 2021.

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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 <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
Net sales:
Mobile Industries	$	526.9	$	487.3	$	1,610.9	$	1,486.0
Process Industries	609.5		550.0		1,803.8		1,639.6
Net sales	$	1,136.4	$	1,037.3	$	3,414.7	$	3,125.6
Segment EBITDA:
Mobile Industries	$	20.0	$	53.2	$	164.2	$	200.1
Process Industries	165.3		129.7		484.4		401.9
Total EBITDA, for reportable segments	$	185.3	$	182.9	$	648.6	$	602.0
Unallocated corporate expense	(9.1)		(11.7)		(35.4)		(34.9)
Corporate pension and other postretirement benefit related expense (1)	(1.0)		(3.9)		(15.2)		(8.3)
Acquisition-related gain (2)	—		0.3		—		0.9
Depreciation and amortization	(39.9)		(41.3)		(122.0)		(126.5)
Interest expense	(19.3)		(14.8)		(51.9)		(45.0)
Interest income	1.1		0.5		2.7		1.7
Income before income taxes	$	117.1	$	112.0	$	426.8	$	389.9

(1) Corporate pension and other postretirement benefit related expense represents actuarial (losses) and gains 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 Bearing Company ("Aurora"), which closed on November 30, 2020.

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 <br>September 30,						Nine Months Ended <br>September 30,
	2022			2021			2022			2021
Provision for income taxes	$	26.7		$	20.4		$	108.9		$	75.1
Effective tax rate	22.8		%	18.2		%	25.5		%	19.3		%

Income tax expense for the three and nine months ended September 30, 2022 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 projected mix of earnings in international jurisdictions with relatively higher tax rates.

The effective tax rate of 22.8% for the three months ended September 30, 2022 was higher than the rate for the three months ended September 30, 2021 primarily due to the net unfavorable impact of discrete tax items in comparison to the year ago period.

The effective tax rate of 25.5% for the nine months ended September 30, 2022 was higher than the rate for the nine months ended September 30, 2021 primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions, the net unfavorable impact of discrete tax items, including a discrete tax benefits in the year ago period in connection with the settlement of the 2017 and 2018 U.S. federal tax years during the nine months ended September 30, 2021, and lower deductions for stock-based compensation.

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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 nine months ended September 30, 2022 and 2021, respectively:

	Three Months Ended <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
Numerator:
Net income attributable to The Timken Company	$	87.0	$	88.1	$	310.2	$	306.2
Less: undistributed earnings allocated to nonvested stock	—		—		—		—
Net income available to common shareholders for basic<br>   and diluted earnings per share	$	87.0	$	88.1	$	310.2	$	306.2
Denominator:
Weighted average number of shares outstanding - basic	73,177,956		76,068,582		73,890,483		75,980,355
Effect of dilutive securities:
Stock options and awards - based on the treasury<br>   stock method	688,787		955,391		658,228		1,177,259
Weighted average number of shares outstanding assuming<br>   dilution of stock options and awards	73,866,743		77,023,973		74,548,711		77,157,614
Basic earnings per share	$	1.19	$	1.16	$	4.20	$	4.03
Diluted earnings per share	$	1.18	$	1.14	$	4.16	$	3.97

The dilutive effect of stock options and awards includes all outstanding stock options and awards except stock options that are considered antidilutive. Stock options are antidilutive when the exercise price exceeds the average market price of the Company’s common shares during the periods presented. There were no antidilutive stock options outstanding during the three and nine months ended September 30, 2022 and 2021.

Note 8 - Inventories

The components of inventories at September 30, 2022 and December 31, 2021 were as follows:

	September 30,<br>2022		December 31,<br>2021
Manufacturing supplies	$	39.7	$	38.0
Raw materials	115.9		121.8
Work in process	454.8		418.4
Finished products	588.2		527.8
Subtotal	1,198.6		1,106.0
Allowance for obsolete and surplus inventory	(66.0)		(63.3)
Total inventories, net	$	1,132.6	$	1,042.7

Inventories are valued at net realizable value, with approximately 56% valued on the first-in, first-out ("FIFO") method and the remaining 44% 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 September 30, 2022 and December 31, 2021 was $229.1 million and $199.4 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 are 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 nine months ended September 30, 2022 were as follows:

	Mobile<br>Industries		Process<br>Industries		Total
Beginning balance	$	371.7	$	651.0	$	1,022.7
Acquisitions	—		39.2		39.2
Foreign currency translation adjustments and other changes	(33.8)		(49.0)		(82.8)
Ending balance	$	337.9	$	641.2	$	979.1

The acquisition of Spinea added $39.2 million of goodwill. The goodwill is expected to be 100% tax deductible.

The following table displays intangible assets as of September 30, 2022 and December 31, 2021:

	Balance at September 30, 2022						Balance at December 31, 2021
	Gross<br>Carrying<br>Amount		Accumulated<br>Amortization		Net<br>Carrying<br>Amount		Gross<br>Carrying<br>Amount		Accumulated<br>Amortization		Net<br>Carrying<br>Amount
Intangible assets <br>subject to amortization:
Customer relationships	$	459.4	$	(172.0)	$	287.4	$	518.1	$	(189.3)	$	328.8
Technology and know-how	230.7		(74.2)		156.5		270.7		(86.6)		184.1
Trade names	18.5		(7.3)		11.2		14.3		(9.6)		4.7
Capitalized software	283.6		(264.3)		19.3		280.0		(261.3)		18.7
Other	3.1		(2.4)		0.7		4.7		(3.6)		1.1
	$	995.3	$	(520.2)	$	475.1	$	1,087.8	$	(550.4)	$	537.4
Intangible assets not subject to amortization:
Trade names	$	110.9			$	110.9	$	122.7			$	122.7
FAA air agency certificates	8.7				8.7		8.7				8.7
	$	119.6			$	119.6	$	131.4			$	131.4
Total intangible assets	$	1,114.9	$	(520.2)	$	594.7	$	1,219.2	$	(550.4)	$	668.8

Amortization expense for intangible assets was $37.4 million and $41.7 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense included $32.2 million and $35.8 million related to intangible assets acquired as part of a business combination for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense for intangible assets is projected to be $49.7 million in 2022; $42.2 million in 2023; $40.3 million in 2024; $38.3 million in 2025; and $36.9 million in 2026. Substantially all amortization expense for intangible assets is recorded in Cost of product sold on the Consolidated Statement of Income.

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Note 10 - Other Current Liabilities

The following table displays other current liabilities as of September 30, 2022 and December 31, 2021:

(Dollars in millions)	September 30,<br>2022		December 31,<br>2021
Sales rebates	$	67.7	$	70.3
Freight and duties	24.5		25.5
Operating lease liabilities	22.2		26.2
Product warranty	19.6		11.7
Professional fees	16.4		10.8
Restructuring	4.1		7.0
Taxes other than income and payroll taxes	18.0		16.0
Interest	15.8		10.8
Other	105.1		72.3
Total other current liabilities	$	293.4	$	250.6

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Note 11 - Financing Arrangements

Short-term debt at September 30, 2022 and December 31, 2021 was as follows:

	September 30,<br>2022		December 31,<br>2021
Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 1.18% to 2.75% at September 30, 2022 and 0.50% to 2.00% at December 31, 2021	$	50.9	$	42.6
Short-term debt	$	50.9	$	42.6

The lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings up to $235.8 million in the aggregate. Most of these lines of credit are uncommitted. At September 30, 2022, the Company’s foreign subsidiaries had borrowings outstanding of $50.9 million and bank guarantees of $2.6 million, which reduced the aggregate availability under these facilities to $182.3 million.

Long-term debt at September 30, 2022 and December 31, 2021 was as follows:

	September 30,<br>2022		December 31,<br>2021
Variable-rate Senior Credit Facility with an average interest rate on Euro of 1.00% at September 30, 2022 and U.S. Dollar of 1.09% and Euro of 1.00% at December 31, 2021	$	7.8	$	9.0
Variable-rate Accounts Receivable Facility	—		—
Variable-rate Term Loan(1), maturing on September 11, 2023, with an interest rate of 4.24% at September 30, 2022 and 1.23% at December 31, 2021	314.8		321.1
Fixed-rate Senior Unsecured Notes(1), maturing on September 1, 2024, with an interest rate of 3.875%	349.7		349.5
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02%	146.8		170.3
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50%	397.1		396.9
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 Senior Unsecured Notes(1), maturing on April 1, 2032, with an interest rate of 4.125%	341.7		—
Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15%	12.7		15.8
Other	6.9		5.0
Total debt	$	1,732.2	$	1,422.3
Less: Current maturities	320.9		11.2
Long-term debt	$	1,411.3	$	1,411.1

(1) Net of discounts and fees

The Company has a $100 million Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"), which matures on November 30, 2024. 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 September 30, 2022. As of September 30, 2022, there were no outstanding borrowings under the Accounts Receivable Facility, and the entire $100 million was available. 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.

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Note 11 - 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 September 30, 2022, the Company had $7.8 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $642.2 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio.

On March 28, 2022, the Company issued fixed-rate unsecured senior notes ("2032 Notes") in the aggregate principal amount of $350 million with an interest rate of 4.125%, maturing on April 1, 2032. Proceeds from the 2032 Notes were used to for general corporate purposes, which included repayment of borrowings under the Senior Credit Facility and the Accounts Receivable Facility outstanding at the time of issuance.

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.

At September 30, 2022, 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 September 30, 2022, outstanding letters of credit totaled $43.5 million, most with expiration dates within 12 months.

The maturities of long-term debt (including $3.1 million of finance leases) subsequent to September 30, 2022 are as follows:

Year
2022	$	3.7
2023	318.6
2024	359.4
2025	1.5
2026	11.3
2027	172.6
Thereafter	865.1

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Note 12 - 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 $5.0 million and $6.0 million for various known environmental matters that are probable and reasonably estimable at September 30, 2022 and December 31, 2021, 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 $19.6 million and $11.7 million at September 30, 2022 and December 31, 2021, respectively. The balances at the end of each respective period represent the best estimates of costs for future claims for products that are still under warranty. The increase in the liability for the first nine months of 2022 primarily relates to additional accruals for certain products sold into the automotive and renewable energy sectors. Accrual estimates are based on actual 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 such change occurs.

The following is a rollforward of the consolidated product warranty accrual for the nine months ended September 30, 2022 and twelve months ended December 31, 2021:

	September 30,<br>2022		December 31,<br>2021
Beginning balance, January 1	$	11.7	$	9.4
Expense	10.5		10.1
Payments	(2.6)		(7.8)
Ending balance	$	19.6	$	11.7

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Note 13 - Equity

The following tables present the changes in the components of equity for the three and nine months ended September 30, 2022 and 2021, respectively:

			The Timken Company Shareholders
	Total		Stated<br>Capital		Other<br>Paid-In<br>Capital		Retained Earnings		Accumulated<br>Other<br>Comprehensive<br>Loss		Treasury<br>Stock		Non<br>controlling<br>Interest
Balance at June 30, 2022	$	2,289.2	$	40.7	$	804.1	$	1,793.2	$	(155.9)	$	(278.5)	$	85.6
Net income	90.4						87.0						3.4
Foreign currency translation adjustment	(136.8)								(133.5)				(3.3)
Pension and other postretirement liability<br><br>adjustments (net of income tax benefit<br><br>of $0.6 million)	(1.4)								(1.4)
Change in fair value of derivative financial <br>   instruments, net of reclassifications	1.8								1.8
Dividends declared to noncontrolling interest	(0.5)												(0.5)
Dividends – $0.31 per share	(22.8)						(22.8)
Stock-based compensation expense	6.7				6.7
Stock purchased at fair market value	(49.0)										(49.0)
Stock option exercise activity	2.6				2.6
Shares surrendered for stock option activity	—				3.8						(3.8)
Payments related to tax withholding for<br>   stock-based compensation	(1.4)										(1.4)
Balance at September 30, 2022	$	2,178.8	$	40.7	$	817.2	$	1,857.4	$	(289.0)	$	(332.7)	$	85.2
			The Timken Company Shareholders
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Total		Stated<br>Capital		Other<br>Paid-In<br>Capital		Retained Earnings		Accumulated<br>Other<br>Comprehensive<br>Loss		Treasury<br>Stock		Non<br>controlling<br>Interest
Balance at December 31, 2021	$	2,377.7	$	40.7	$	786.9	$	1,616.4	$	(23.0)	$	(126.1)	$	82.8
Net income	317.9						310.2						7.7
Foreign currency translation adjustment	(272.5)								(267.7)				(4.8)
Pension and other postretirement liability<br><br>adjustments (net of income tax benefit<br><br>of $1.5 million)	(4.3)								(4.3)
Change in fair value of derivative financial <br>   instruments, net of reclassifications	6.0								6.0
Dividends - $0.92 per share	(69.2)						(69.2)
Dividends declared to noncontrolling interest	(0.5)												(0.5)
Stock-based compensation expense	22.3				22.3
Stock purchased at fair market value	(193.3)										(193.3)
Stock option exercise activity	4.2				4.2
Shares surrendered for stock option activity	—				3.8						(3.8)
Payments related to tax withholding for<br>   stock-based compensation	(9.5)										(9.5)
Balance at September 30, 2022	$	2,178.8	$	40.7	$	817.2	$	1,857.4	$	(289.0)	$	(332.7)	$	85.2

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Note 13 - Equity (continued)

			The Timken Company Shareholders
	Total		Stated<br>Capital		Other<br>Paid-In<br>Capital		Retained Earnings		Accumulated<br>Other<br>Comprehensive<br>Income (Loss)		Treasury<br>Stock		Non<br>controlling<br>Interest
Balance at June 30, 2021	$	2,367.3	$	40.7	$	778.6	$	1,510.9	$	19.8	$	(59.1)	$	76.4
Net income	91.6						88.1						3.5
Foreign currency translation adjustment	(32.9)								(33.1)				0.2
Pension and other postretirement liability<br><br>adjustments (net of income tax benefit of<br><br>$0.5 million)	(1.5)								(1.5)
Change in fair value of derivative financial <br>   instruments, net of reclassifications	2.5								2.5
Dividends paid to noncontrolling interest	(0.6)												(0.6)
Dividends - $0.30 per share	(22.8)						(22.8)
Stock-based compensation expense	3.1				3.1
Stock purchased at fair market value	(30.3)										(30.3)
Balance at September 30, 2021	$	2,376.4	$	40.7	$	781.7	$	1,576.2	$	(12.3)	$	(89.4)	$	79.5					The Timken Company Shareholders
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Total		Stated<br>Capital		Other<br>Paid-In<br>Capital		Retained Earnings		Accumulated<br>Other<br>Comprehensive<br>Income		Treasury<br>Stock		Non<br>controlling<br>Interest
Balance at December 31, 2020	$	2,225.2	$	40.7	$	740.7	$	1,339.5	$	41.3	$	(9.3)	$	72.3
Net income	314.8						306.2						8.6
Foreign currency translation adjustment	(54.1)								(53.3)				(0.8)
Pension and other postretirement liability<br><br>adjustments (net of income tax benefit<br><br>of $1.6 million)	(4.8)								(4.8)
Change in fair value of derivative financial <br>   instruments, net of reclassifications	4.5								4.5
Dividends paid to noncontrolling interest	(0.6)												(0.6)
Dividends - $0.89 per share	(69.5)						(69.5)
Stock-based compensation expense	15.6				15.6
Stock purchased at fair market value	(56.6)										(56.6)
Stock option exercise activity	25.4				25.4
Payments related to tax withholding for<br>   stock-based compensation	(23.5)										(23.5)
Balance at September 30, 2021	$	2,376.4	$	40.7	$	781.7	$	1,576.2	$	(12.3)	$	(89.4)	$	79.5

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Note 14 - Impairment and Restructuring Charges

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

For the three months ended September 30, 2022:

	Mobile Industries		Process Industries		Total
Impairment charges	$	29.5	$	—	$	29.5
Severance and related benefit costs	1.3		0.1		1.4
Exit costs	0.3		0.1		0.4
Total	$	31.1	$	0.2	$	31.3

For the nine months ended September 30, 2022:

	Mobile Industries		Process Industries		Total
Impairment charges	$	38.3	$	—	$	38.3
Severance and related benefit costs	2.4		0.4		2.8
Exit costs	1.1		0.1		1.2
Total	$	41.8	$	0.5	$	42.3

For the three months ended September 30, 2021:

	Mobile Industries		Process Industries		Total
Severance and related benefit costs	$	2.2	$	0.3	$	2.5
Exit costs	0.4		—		0.4
Total	$	2.6	$	0.3	$	2.9

For the nine months ended September 30, 2021:

	Mobile Industries		Process Industries		Total
Impairment charges	$	1.1	$	3.4	$	4.5
Severance and related benefit costs	2.2		0.9		3.1
Exit costs	0.6		—		0.6
Total	$	3.9	$	4.3	$	8.2

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.

Mobile Industries:

During the three months ended September 30, 2022, the Company classified the ADS business as assets held for sale and recorded an impairment charges of $29.3 million. The Company anticipates the sale of ADS business to be completed during the fourth quarter of 2022.

During the nine months ended September 30, 2022, the Company recorded impairment charges of $9.0 million related to certain assets of its joint venture in Russia. As a result of Russia's invasion of Ukraine (and associated sanctions), the Company suspended its operations in Russia. Refer to Russia Operations in Management's Discussion and Analysis for additional information.

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Note 14 - Impairment and Restructuring Charges (continued)

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 Company expects to complete the closure of the facility by the end of October 2022 and is expected to affect approximately 110 employees. The Company expects to incur approximately $9 million to $11 million of expenses related to this closure. During the three months ended September 30, 2022, the Company recorded severance and related benefits of $0.4 million and exit costs of $0.3 million associated with this closure, and during the nine months ended September 30, 2022, the Company recorded severance and related benefits of $1.2 million and exit costs of $1.3 million associated with this closure. During the three months ended September 30, 2021, the Company recorded severance and related benefits of $2.2 million related to this closure. In addition to the severance and related benefits, the Company recorded impairment charges of $1.0 million during the nine months ended September 30, 2021. The Company has incurred cumulative pretax costs related to this closure of $9.1 million as of September 30, 2022, including rationalization costs recorded in cost of products sold. On January 31, 2022, the Company entered into an agreement to sell this facility with the sale expected to close in the fourth quarter of 2022.

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 cease operations by the end of the first quarter of 2023 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 $11 million to $14 million of expenses related to this closure. During the three months and nine months ended September 30, 2021, the Company recorded severance and related benefit costs of $0.3 million and $0.9 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $12.9 million as of September 30, 2022, 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 nine months ended September 30, 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 nine months ended September 30, 2022 and twelve months ended December 31, 2021:

	September 30,<br>2022		December 31,<br>2021
Beginning balance, January 1	$	7.0	$	8.0
Expense	4.0		4.4
Payments	(6.9)		(5.4)
Ending balance	$	4.1	$	7.0

The restructuring accrual at September 30, 2022 and December 31, 2021 was included in other current liabilities on the Consolidated Balance Sheets.

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Note 15 - 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 nine months ended September 30, 2022 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, 2022.

	U.S. Plans				International Plans				Total
	Three Months Ended <br>September 30,				Three Months Ended <br>September 30,				Three Months Ended <br>September 30,
	2022		2021		2022		2021		2022		2021
Components of net periodic benefit cost (credit):
Service cost	$	1.6	$	2.4	$	0.4	$	0.5	$	2.0	$	2.9
Interest cost	4.7		4.3		1.4		1.1		6.1		5.4
Expected return on plan assets	(4.3)		(5.5)		(2.2)		(2.5)		(6.5)		(8.0)
Amortization of prior service cost	0.3		0.4		—		—		0.3		0.4
Recognition of net actuarial losses	1.0		3.9		—		—		1.0		3.9
Net periodic benefit cost (credit)	$	3.3	$	5.5	$	(0.4)	$	(0.9)	$	2.9	$	4.6			U.S. Plans				International Plans				Total
---	---	---	---	---	---	---	---	---	---	---	---	---
	Nine Months Ended <br>September 30,				Nine Months Ended <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021		2022		2021
Components of net periodic benefit cost (credit):
Service cost	$	5.3	$	7.2	$	1.2	$	1.5	$	6.5	$	8.7
Interest cost	12.9		13.2		4.3		3.3		17.2		16.5
Expected return on plan assets	(14.5)		(17.7)		(7.1)		(7.6)		(21.6)		(25.3)
Amortization of prior service cost	0.9		1.0		0.1		0.1		1.0		1.1
Recognition of net actuarial losses	15.2		8.3		—		—		15.2		8.3
Net periodic benefit cost (credit)	$	19.8	$	12.0	$	(1.5)	$	(2.7)	$	18.3	$	9.3

The Company expects full year 2022 lump sum payments related to new retirees to exceed annual interest and service costs for two of the Company's U.S. defined benefit pension plans in 2022. This expectation triggered a remeasurement of assets and obligations for both plans. As a result of these remeasurements, the Company recognized net actuarial losses ("mark-to-market charges") of $1.0 million and $15.2 million during the three and nine months ended September 30, 2022, respectively.

For the three and nine months ended September 30, 2021, the Company expected to make lump sum payments related to new retirees in excess of annual interest and service costs for three of the Company's U.S. defined benefit pension plans in 2021. This expectation, along with the payout of deferred compensation to a former executive officer of the Company in June 2021, triggered a remeasurement of assets and obligations for these plans. As a result of this remeasurement, the Company recognized net actuarial losses of $3.9 million and $8.3 million during the three and nine months ended September 30, 2021, respectively.

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Note 16 - 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 nine months ended September 30, 2022 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, 2022.

	Three Months Ended <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
Net periodic benefit credit:
Service Cost	$	—	$	—	$	0.1	$	0.1
Interest cost	0.4		0.4		1.1		1.1
Amortization of prior service credit	(2.6)		(2.6)		(7.6)		(7.6)
Net periodic benefit credit	$	(2.2)	$	(2.2)	$	(6.4)	$	(6.4)

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Note 17 - Accumulated Other Comprehensive Income (Loss)

The following tables present details about components of accumulated other comprehensive (loss) income for the three and nine months ended September 30, 2022 and 2021, respectively:

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Change in fair value of derivative financial instruments		Total
Balance at June 30, 2022	$	(214.5)	$	53.7	$	4.9	$	(155.9)
Other comprehensive (loss) income before<br>   reclassifications and income taxes	(136.8)		0.3		3.3		(133.2)
Amounts reclassified from accumulated other<br>   comprehensive (loss) income before income<br>   taxes	—		(2.3)		(0.8)		(3.1)
Income tax (expense) benefit	—		0.6		(0.7)		(0.1)
Net current period other comprehensive (loss) <br>   income, net of income taxes	(136.8)		(1.4)		1.8		(136.4)
Noncontrolling interest	3.3		—		—		3.3
Net current period other comprehensive (loss)<br> income, net of income taxes and noncontrolling<br> interest	(133.5)		(1.4)		1.8		(133.1)
Balance at September 30, 2022	$	(348.0)	$	52.3	$	6.7	$	(289.0)			Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Change in fair value of derivative financial instruments		Total
---	---	---	---	---	---	---	---	---
Balance at December 31, 2021	$	(80.3)	$	56.6	$	0.7	$	(23.0)
Other comprehensive (loss) income before<br>   reclassifications and income taxes	(272.5)		0.8		10.4		(261.3)
Amounts reclassified from accumulated other<br>   comprehensive (loss) income before income<br>   taxes	—		(6.6)		(2.4)		(9.0)
Income tax (expense) benefit	—		1.5		(2.0)		(0.5)
Net current period other comprehensive (loss)<br>   income, net of income taxes	(272.5)		(4.3)		6.0		(270.8)
Noncontrolling interest	4.8		—		—		4.8
Net current period other comprehensive (loss) <br> income, net of income taxes and noncontrolling<br> interest	(267.7)		(4.3)		6.0		(266.0)
Balance at September 30, 2022	$	(348.0)	$	52.3	$	6.7	$	(289.0)

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Note 17 - Accumulated Other Comprehensive Income (Loss) (continued)

	Foreign currency translation adjustments		Pension and other postretirement liability adjustments		Change in fair value of derivative financial instruments		Total
Balance at June 30, 2021	$	(38.2)	$	60.1	$	(2.1)	$	19.8
Other comprehensive (loss) income before <br>    reclassifications and income taxes	(32.9)		0.2		2.7		(30.0)
Amounts reclassified from accumulated other <br>   comprehensive (loss) income before income <br>   taxes	—		(2.2)		0.9		(1.3)
Income tax benefit (expense)	—		0.5		(1.1)		(0.6)
Net current period other comprehensive (loss) <br>   income, net of income taxes	(32.9)		(1.5)		2.5		(31.9)
Noncontrolling interest	(0.2)		—		—		(0.2)
Net current period comprehensive (loss) income,<br>   net of income taxes and noncontrolling interest	(33.1)		(1.5)		2.5		(32.1)
Balance at September 30, 2021	$	(71.3)	$	58.6	$	0.4	$	(12.3)			Foreign currency translation adjustments		Pension and other postretirement liability adjustments		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<br>   reclassifications and income taxes	(54.1)		0.1		2.0		(52.0)
Amounts reclassified from accumulated other<br>   comprehensive (loss) income before income<br>   taxes	—		(6.5)		4.3		(2.2)
Income tax benefit (expense)	—		1.6		(1.8)		(0.2)
Net current period other comprehensive (loss) <br>   income, net of income taxes	(54.1)		(4.8)		4.5		(54.4)
Noncontrolling interest	0.8		—		—		0.8
Net current period comprehensive (loss) income,<br> net of income taxes and noncontrolling interest	(53.3)		(4.8)		4.5		(53.6)
Balance at September 30, 2021	$	(71.3)	$	58.6	$	0.4	$	(12.3)

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

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Note 18 - 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 September 30, 2022 and December 31, 2021:

	September 30, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	267.3	$	266.5	$	0.8	$	—
Cash and cash equivalents measured at net asset value	33.5		—		—		—
Restricted cash	0.7		0.7		—		—
Short-term investments	24.7		—		24.7		—
Interest rate swap contract	3.7		—		3.7		—
Foreign currency forward contracts	15.0		—		15.0		—
Total assets	$	344.9	$	267.2	$	44.2	$	—
Liabilities:
Foreign currency forward contracts	$	11.0	$	—	$	11.0	$	—
Total liabilities	$	11.0	$	—	$	11.0	$	—			December 31, 2021
---	---	---	---	---	---	---	---	---
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	257.1	$	244.8	$	12.3	$	—
Restricted cash	0.8		0.8		—		—
Short-term investments	56.9		—		56.9		—
Foreign currency forward contracts	5.6		—		5.6		—
Total assets	$	320.4	$	245.6	$	74.8	$	—
Liabilities:
Foreign currency forward contracts	$	1.0	$	—	$	1.0	$	—
Total liabilities	$	1.0	$	—	$	1.0	$	—

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 market interest rates to measure the fair value of its interest rate swap contracts. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts.

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Note 18 - Fair Value (continued)

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.

During the three months ended September 30, 2022, the Company's ADS business. located in Manchester, Connecticut, was reclassified to assets held for sale. In conjunction with this reclassification, the ADS business with a carrying value of $62.1 million, was written down to its estimated fair value less cost to sell of $32.8 million, resulting in an impairment charge of $29.3 million. The fair value for these net assets was determined based on an estimate of the value expected to be received upon the sale of this business. Refer to Note 3 - Acquisitions and Divestitures for more information on the expected sale of ADS.

During the nine months ended September 30, 2022, property, plant and equipment at the Company's joint venture in Russia, with a carrying value of $16.1 million, were written down to their fair value of $7.1 million, resulting in an impairment charge of $9.0 million. The fair value for these assets was determined based on an estimate of the best price that would be received in a current transaction to sell the assets to a third party.

No other material assets were measured at fair value on a nonrecurring basis during the nine months ended September 30, 2022 and 2021, respectively.

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 $1,320.6 million and $1,171.1 million at September 30, 2022 and December 31, 2021, respectively. The carrying value of this debt was $1,402.8 million and $1,087.5 million at September 30, 2022 and December 31, 2021, 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 19 - 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 subsidiaries. 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 nine months ended September 30, 2022, respectively, was a gain of $3.7 million and a gain of $8.5 million to accumulated comprehensive (loss) income with a corresponding offset to other income, which partially offsets the impact of the foreign currency adjustment on the 2027 Notes.

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Note 19 - Derivative Instruments and Hedging Activities (continued)

The Company entered into $350 million of floating-to-fixed 10-year Treasury rate locks during the first quarter of 2022, prior to issuing the 2032 Notes. This fixed the 10-year Treasury yield and settled at pricing of the 2032 Notes, resulting in $6.5 million of cash proceeds received by the Company. This amount was recorded to accumulated comprehensive income and will be amortized as a reduction in interest expense over the 10-year tenor of the 2032 Notes.

The Company does not purchase or hold any derivative financial instruments for trading purposes. As of September 30, 2022 and December 31, 2021, the Company had $419.4 million and $300.8 million, respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 18 - 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.

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 September 30, 2022 and December 31, 2021, the Company had $71.6 million and $80.0 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 September 30, 2022 and December 31, 2021, the Company had $347.8 million and $220.8 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 nine months ended September 30, 2022 and 2021, respectively, and the related location within the Consolidated Statements of Income:

		Amount of gain or (loss) recognized in income
		Three Months Ended <br>September 30,				Nine Months Ended <br>September 30,
Derivatives not designated as hedging instruments:	Location of gain or (loss) recognized in income	2022		2021		2022		2021
Foreign currency forward contracts	Other expense, net	$	(1.1)	$	1.2	$	(8.0)	$	0.5

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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®, Groeneveld® and Spinea®. Timken employs more than 18,000 people globally in 43 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 long-term 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.

Operational 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.

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 initiatives to drive profitable organic growth; (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.

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Overview:

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	1,136.4	$	1,037.3		9.6	%
Net income	90.4		91.6		(1.2)	(1.3)	%
Net income attributable to noncontrolling interest	3.4		3.5		(0.1)	(2.9)	%
Net income attributable to The Timken Company	$	87.0	$	88.1		(1.2)	%
Diluted earnings per share	$	1.18	$	1.14		3.5	%
Average number of shares – diluted	73,866,743		77,023,973		—	(4.1)	%

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	3,414.7	$	3,125.6		9.2	%
Net income	317.9		314.8		3.1	1.0	%
Net income attributable to noncontrolling interest	7.7		8.6		(0.9)	(10.5)	%
Net income attributable to The Timken Company	$	310.2	$	306.2		1.3	%
Diluted earnings per share	$	4.16	$	3.97		4.8	%
Average number of shares – diluted	74,548,711		77,157,614		—	(3.4)	%

All values are in US Dollars.

The increase in net sales for the three months ended September 30, 2022 compared with the three months ended September 30, 2021 was primarily driven by strong organic growth (including positive pricing), partially offset by the unfavorable impact of foreign currency exchange rate changes. The slight decrease in net income for the three months ended September 30, 2022 compared with the three months ended September 30, 2021 was primarily due to higher material, logistics and other operating costs, higher impairment and restructuring charges and a higher tax rate, partially offset by favorable price/mix and the impact of higher volume. The higher impairment and restructuring charges were primarily related to the anticipated divestiture of the Company's ADS business.

The increase in net sales for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021 was primarily driven by strong organic growth (including positive pricing), partially offset by the unfavorable impact of foreign currency exchange rate changes. The increase in net income for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021 was primarily due to favorable price/mix and the impact of higher volume, partially offset by higher material, logistics and other operating costs, higher impairment and restructuring charges, higher pension mark-to-market charges and a higher tax rate.

Outlook:

The Company expects 2022 full-year revenue to be up approximately 9% compared to 2021, primarily due to higher demand across most end markets, positive pricing and the continued execution of growth initiatives, partially offset by the net unfavorable impact of foreign currency exchange rates. The Company's earnings are expected to be up in 2022 compared with 2021, primarily due to the favorable impact of price/mix and higher volume, partially offset by higher material, logistics and other operating costs, as well as higher interest costs and a higher tax rate.

The Company expects to generate cash from operating activities in 2022 above 2021 levels driven by higher earnings. The Company expects capital expenditures of roughly 4.0% of sales in 2022, compared with 3.6% of sales ($148 million) in 2021.

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THE STATEMENT OF INCOME

Sales:

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	1,136.4	$	1,037.3		9.6	%

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	3,414.7	$	3,125.6		9.2	%

All values are in US Dollars.

Net sales increased for the three months ended September 30, 2022 compared with the three months ended September 30, 2021. The increase was primarily due to strong organic growth of $141 million and the benefit of acquisitions of $5 million, partially offset by the unfavorable impact of foreign currency exchange rate changes of $47 million. The higher organic revenue was driven by higher demand in the Mobile and Process Industries segments, and higher net pricing.

Net sales increased for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021. The increase was primarily due to strong organic growth of $376 million and the benefit of acquisitions of $10 million, partially offset by the unfavorable impact of foreign currency exchange rate changes of $97 million. The higher organic revenue was driven by higher demand in the Mobile and Process Industries segments, and higher net pricing.

Gross Profit:

	Three Months Ended <br>September 30,
	2022			2021			Change	Change
Gross profit	$	322.8		$	267.9			20.5%
Gross profit % to net sales	28.4		%	25.8		%		260	bps

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022			2021			Change	Change
Gross profit	$	992.0		$	869.4			14.1%
Gross profit % to net sales	29.1		%	27.8		%		130	bps

All values are in US Dollars.

Gross profit increased for the three months ended September 30, 2022 compared with the three months ended September 30, 2021, primarily due to favorable price/mix of $103 million and the impact of higher volume of $27 million, partially offset by higher material and logistics costs of $35 million, unfavorable manufacturing performance of $35 million and the unfavorable impact of foreign currency exchange rate changes of $4 million.

Gross profit increased for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021, primarily due to favorable price/mix of $221 million and the impact of higher volume of $81 million, partially offset by higher material and logistics costs of $124 million, unfavorable manufacturing performance of $43 million and the unfavorable impact of foreign currency exchange rate changes of $9 million.

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Selling, General and Administrative ("SG&A") Expenses:

	Three Months Ended <br>September 30,
	2022			2021			Change	Change
Selling, general and administrative expenses	$	159.8		$	140.7			13.6	%
Selling, general and administrative expenses % to net sales	14.1		%	13.6		%		50	bps

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022			2021			Change	Change
Selling, general and administrative expenses	$	469.8		$	434.2			8.2	%
Selling, general and administrative expenses % to net sales	13.8		%	13.9		%		(10)	bps

All values are in US Dollars.

SG&A expenses increased for the three and nine months ended September 30, 2022 compared with the three and nine months ended September 30, 2021. The increase for the three and nine months ended September 30, 2022, as compared to the year-ago periods, was primarily due to higher compensation costs (including incentive-based compensation) and increased spending to support the higher sales levels.

Impairment and Restructuring:

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Impairment charges	$	29.5	$	—		NM
Severance and related benefit costs	1.4		2.5		(1.1)	NM
Exit costs	0.4		0.4		—	—	%
Total	$	31.3	$	2.9		NM

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Impairment charges	$	38.3	$	4.5		751.1	%
Severance and related benefit costs	2.8		3.1		(0.3)	(9.7)	%
Exit costs	1.2		0.6		0.6	100.0	%
Total	$	42.3	$	8.2		415.9	%

All values are in US Dollars.

Impairment and restructuring charges of $31.3 million during the three months ended September 30, 2022 were primarily due to impairment charges of $29.3 million related to the anticipated divestiture of the Company's ADS business. In addition, the Company incurred severance and related benefits, and exit costs associated with the closure of the Company's Villa Carcina, Italy bearing plant during the three months ended September 30, 2022. This initiative was undertaken to reduce headcount and continue to right-size the Company's manufacturing footprint.

Impairment and restructuring charges of $42.3 million during the nine months ended September 30, 2022 were comprised primarily of impairment charges related to the anticipated divestiture of the ADS business and property, plant and equipment at the Company's joint venture in Russia. In addition, the Company incurred severance and related benefits, and exit costs associated with the closure of the Company's Villa Carcina, Italy bearing plant during the nine months ended September 30, 2022.

Impairment and restructuring charges of $2.9 million and $8.2 million during the three and nine months ended September 30, 2021 were comprised primarily of severance and related benefits related to the planned closures of the Company's Villa Carcina, Italy bearing plant and Indianapolis, Indiana chain plant. These initiatives were expected to reduce headcount and right-size the Company's manufacturing footprint. In addition, impairment charges during the nine September 30, 2021 were related to certain engineering-related assets used in the business. Management concluded no further investment would be made in the engineering-related assets and as a result, reduced the value to zero.

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Refer to Note 14 - Impairment and Restructuring Charges in the Notes to the Consolidated Financial Statements for additional information.

Interest Income and Expense:

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Interest expense	$	(19.3)	$	(14.8)		30.4	%
Interest income	1.1		0.5			120.0	%

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Interest expense	$	(51.9)	$	(45.0)		15.3	%
Interest income	2.7		1.7			58.8	%

All values are in US Dollars.

The increase in interest expense for the three and nine months ended September 30, 2022 compared with the three and nine months ended September 30, 2021 was primarily due to higher average debt outstanding due to the issuance of the $350 million 2032 Notes in March 2022. Proceeds from the 2032 Notes were used for general corporate purposes, which included repayment of borrowings under the Senior Credit Facility and the Accounts Receivable Facility outstanding at the time of issuance. In addition, a portion of the proceeds from the 2032 Notes was used to fund the Spinea acquisition, which closed in the second quarter of 2022.

Other Income (Expense):

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Non-service pension and other postretirement<br>   income	$	1.3	$	0.5		NM
Other income, net	2.3		1.5		0.8	53.3	%
Total other income	$	3.6	$	2.0		NM

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Non-service pension and other postretirement<br>   (expense) income	$	(5.3)	$	5.9		(189.8)	%
Other income, net	1.4		0.3		1.1	366.7	%
Total other (expense) income	$	(3.9)	$	6.2		(162.9)	%

All values are in US Dollars.

Non-service pension and other postretirement income increased for the three months ended September 30, 2022 compared with the three months ended September 30, 2021, primarily due to lower pension remeasurement losses in 2022. Non-service pension and other postretirement (expense) income decreased for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021, primarily due to higher pension remeasurement losses in 2022. The remeasurements were triggered by expected lump sum payments to new retirees exceeding annual service and interest costs for two of the Company's U.S. defined benefit pension plans in 2022. As a result of the remeasurements, the Company recognized net actuarial losses of $1.0 million and $3.9 million during the three months ended September 30, 2022 and September 30, 2021, respectively, and $15.2 million and $8.3 million during the nine months ended September 30, 2022 and September 30, 2021, respectively. In addition, the decrease was due to a lower expected return on plan assets in 2022. Refer to Note 15 - Retirement Benefit Plans and Note 16 - Other Postretirement Benefit Plans in the Notes to the Consolidated Financial Statements for additional information.

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Income Tax Expense:

	Three Months Ended <br>September 30,
	2022			2021			Change	Change
Provision for income taxes	$	26.7		$	20.4			30.9	%
Effective tax rate	22.8		%	18.2		%		460	bps

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022			2021			Change	Change
Provision for income taxes	$	108.9		$	75.1			45.0	%
Effective tax rate	25.5		%	19.3		%		620	bps

All values are in US Dollars.

Income tax expense increased $6.3 million for the three months ended September 30, 2022 compared with the three months ended September 30, 2021 primarily due to the net unfavorable impact of discrete tax items in comparison to the year ago period.

Income tax expense increased $33.8 million for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021 primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions, the net unfavorable impact of discrete tax items, including a discrete tax benefits in the year ago period, and lower deductions for stock-based compensation.

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.

In August 2022, the Company announced organizational changes, which included the appointment of executive leaders for its Engineered Bearings and Industrial Motion product groups. The Company is currently evaluating whether these changes will affect its reportable segments.

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 and divestitures completed in 2022 and 2021 and foreign currency exchange rate changes. The effects of acquisitions, divestitures 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 represents the Company's acquisitions and divestitures completed in 2022 and 2021:

•The Company completed the sale of Timken Russia during the third quarter of 2022. Results for Timken Russia were reported in the Mobile Industries and Process Industries segments based on customers and underlying market sectors served.

•The Company acquired Spinea during the second quarter of 2022. The majority of the results for Spinea are reported in the Process Industries segment.

•The Company acquired iMS during the third quarter of 2021. The majority of the results for iMS are reported in the Process Industries segment.

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Mobile Industries Segment:

	Three Months Ended <br>September 30,
	2022			2021			Change	Change
Net sales	$	526.9		$	487.3			8.1%
EBITDA	$	20.0		$	53.2			(62.4%)
EBITDA margin	3.8		%	10.9		%		(710)	bps

All values are in US Dollars.

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	526.9	$	487.3		8.1	%
Less: Divestitures	(0.3)		—		(0.3)	NM
Currency	(20.1)		—		(20.1)	NM
Net sales, excluding the impacts of divestitures and currency	$	547.3	$	487.3		12.3	%

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022			2021			Change	Change
Net sales	$	1,610.9		$	1,486.0			8.4%
EBITDA	$	164.2		$	200.1			(17.9%)
EBITDA margin	10.2		%	13.5		%		(710)	bps

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	1,610.9	$	1,486.0		8.4	%
Less: Divestitures	(0.3)				(0.3)	NM
Currency	(45.0)		—		(45.0)	NM
Net sales, excluding the impacts of divestitures and currency	$	1,656.2	$	1,486.0		11.5	%

All values are in US Dollars.

The Mobile Industries segment's net sales, excluding the effects of divestitures and foreign currency exchange rate changes, increased $60.0 million or 12.3% in the three months ended September 30, 2022 compared with the three months ended September 30, 2021, reflecting increased shipments in the off-highway and automotive sectors, as well as higher net pricing. EBITDA decreased by $33.2 million or 62.4% for the three months ended September 30, 2022 compared with the three months ended September 30, 2021, primarily due to higher impairment and restructuring charges, higher material, logistics and other operating costs, partially offset by favorable price/mix and the impact of higher volume.

The Mobile Industries segment's net sales, excluding the effects of divestitures and foreign currency exchange rate changes, increased $170.2 million or 11.5% in the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021, reflecting increased shipments in the off-highway, heavy truck, rail and automotive and aerospace sectors, as well as higher net pricing. EBITDA decreased by $35.9 million or 17.9% for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021, primarily due to higher material, logistics and other operating costs, higher impairment and restructuring charges, partially offset by favorable price/mix and the impact of higher volume.

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Process Industries Segment:

	Three Months Ended <br>September 30,
	2022			2021			Change	Change
Net sales	$	609.5		$	550.0			10.8%
EBITDA	$	165.3		$	129.7			27.4%
EBITDA margin	27.1		%	23.6		%		350	bps

All values are in US Dollars.

	Three Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	609.5	$	550.0		10.8	%
Less: Acquisitions	7.0		—		7.0	NM
Divestitures	(1.5)		—		(1.5)	NM
Currency	(27.1)		—		(27.1)	NM
Net sales, excluding the impact of acquisitions,<br>   divestitures and currency	$	631.1	$	550.0		14.7	%

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022			2021			Change	Change
Net sales	$	1,803.8		$	1,639.6			10.0%
EBITDA	$	484.4		$	401.9			20.5%
EBITDA margin	26.9		%	24.5		%		240	bps

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022		2021		Change	% Change
Net sales	$	1,803.8	$	1,639.6		10.0	%
Less: Acquisitions	12.1		—		12.1	NM
Divestitures	(1.5)		—		(1.5)	NM
Currency	(52.1)		—		(52.1)	NM
Net sales, excluding the impact of acquisitions,<br>   divestitures and currency	$	1,845.3	$	1,639.6		12.5	%

All values are in US Dollars.

The Process Industries segment's net sales, excluding the effects of acquisitions, divestitures and foreign currency exchange rate changes, increased $81.1 million or 14.7% in the three months ended September 30, 2022 compared with the three months ended September 30, 2021. The increase was primarily driven by increased demand in the distribution, heavy industries, general industrial and marine sectors, as well as higher net pricing, partially offset by lower revenue in the renewable energy sector. EBITDA increased $35.6 million or 27.4% for the three months ended September 30, 2022 compared with the three months ended September 30, 2021 primarily due to favorable price/mix and the impact of higher volume, partially offset by higher material, logistics and other operating costs.

The Process Industries segment's net sales, excluding the effects of acquisitions, divestitures and foreign currency exchange rate changes, increased $205.7 million or 12.5% in the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021. The increase was primarily driven by increased demand in the distribution, general industrial, heavy industries, marine and services sectors, as well as higher net pricing, partially offset by lower revenue in the renewable energy sector. EBITDA increased $82.5 million or 20.5% for the nine months ended September 30, 2022 compared with the nine months ended September 30, 2021 primarily due to favorable price/mix and the impact of higher volume, partially offset by higher material, logistics and other operating costs.

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Unallocated Corporate:

	Three Months Ended <br>September 30,
	2022			2021			Change	Change
Unallocated corporate expense	$	(9.1)		$	(11.7)			(22.2	%)
Unallocated corporate expense % to net sales	(0.8)		%	(1.1)		%		30	bps

All values are in US Dollars.

	Nine Months Ended <br>September 30,
	2022			2021			Change	Change
Unallocated corporate expense	$	(35.4)		$	(34.9)			1.4	%
Unallocated corporate expense % to net sales	(1.0)		%	(1.1)		%		10	bps

All values are in US Dollars.

The decrease in unallocated corporate expense for the three months ended September 30, 2022 compared with the three months ended September 30, 2021 was primarily due to foreign currency exchange gains recorded in 2022, compared to foreign currency exchange losses in the prior year, partially offset by higher compensation expense and other spending to support increased business activity levels.

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CASH FLOW

	Nine Months Ended <br>September 30,
	2022		2021		Change
Net cash provided by operating activities	$	222.3	$	284.6
Net cash used in investing activities	(242.0)		(115.9)		(126.1)
Net cash provided by (used in) financing activities	88.5		(222.4)		310.9
Effect of exchange rate changes on cash	(25.1)		(4.8)		(20.3)
Increase (decrease) in cash and cash equivalents<br>   and restricted cash	$	43.7	$	(58.5)

All values are in US Dollars.

Operating Activities:

The decrease in net cash provided by operating activities for the first nine months of 2022 compared with the first nine months of 2021 was primarily due to an increase in cash used for working capital items of $140.2 million, partially offset by an increase in the benefit of income taxes on cash of $14.0 million, a decrease in pension and other postretirement benefit contributions and payments of $6.6 million and a net increase in non-cash charges included in net income, including impairment charges, pension expense and stock-based compensation expense. 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 nine months of 2022 and 2021, respectively:

	Nine Months Ended <br>September 30,
	2022		2021		Change
Cash (used in) provided by:
Accounts receivable	$	(157.0)	$	(127.5)
Unbilled receivables	(5.2)		25.1		(30.3)
Inventories	(147.1)		(144.2)		(2.9)
Trade accounts payable	(12.6)		60.5		(73.1)
Other accrued expenses	45.8		50.2		(4.4)
Cash used in working capital items	$	(276.1)	$	(135.9)

All values are in US Dollars.

The following table displays the impact of income taxes on cash during the nine months of 2022 and 2021, respectively:

	Nine Months Ended <br>September 30,
	2022		2021		Change
Accrued income tax expense	$	108.9	$	75.1
Income tax payments	(98.8)		(80.0)		(18.8)
Other items	(2.8)		(1.8)		(1.0)
Change in income taxes	$	7.3	$	(6.7)

All values are in US Dollars.

Investing Activities:

The increase in net cash used in investing activities for the first nine months of 2022 compared with the first nine months of 2021 was primarily due to an increase in cash used for acquisitions of $145.2 million and an increase in capital expenditures of $18.9 million, partially offset by a decrease in cash used for investments in short-term marketable securities of $33.2 million.

Financing Activities:

The change in net cash used in financing activities for the first nine months of 2022 compared with the first nine months of 2021 was primarily due to an increase in net borrowings of $451.5 million, partially offset by an increase in the purchases of treasury shares of $136.7 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:

	September 30,<br>2022		December 31,<br>2021
Short-term debt, including current portion of long-term debt	$	371.8	$	53.8
Long-term debt	1,411.3		1,411.1
Total debt	$	1,783.1	$	1,464.9
Less: Cash and cash equivalents	300.9		257.1
Net debt	$	1,482.2	$	1,207.8

Ratio of Net Debt to Capital:

	September 30,<br>2022			December 31,<br>2021
Net debt	$	1,482.2		$	1,207.8
Total equity	2,178.8			2,377.7
Net debt plus total equity (capital)	$	3,661.0		$	3,585.5
Ratio of net debt to capital	40.5		%	33.7		%

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 September 30, 2022, the Company had strong liquidity with $300.9 million of cash and cash equivalents on the Consolidated Balance Sheet, as well as $742.2 million of available resources from committed credit lines. Of the $300.9 million of cash and cash equivalents, $267.2 million 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. As of September 30, 2022, Timken had $10.6 million of cash in Russia, which the Company is presently unable to repatriate. 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 September 30, 2022, the Senior Credit Facility had outstanding borrowings of $7.8 million, which reduced the availability to $642.2 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 September 30, 2022, the Company's consolidated leverage ratio was 2.22 to 1.0. The minimum consolidated interest coverage ratio permitted under the Senior Credit Facility is 3.0 to 1.0. As of September 30, 2022, the Company's consolidated interest coverage ratio was 12.45 to 1.0.

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 Euro borrowings was 1.00% as of September 30, 2022. 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 September 30, 2022, the Company carried investment-grade credit ratings with both Moody's (Baa2) and S&P Global (BBB-).

The Company has a $100 million Accounts Receivable Facility, which matures on November 30, 2024. The Accounts Receivable Facility is subject to certain borrowing base limitations and is secured by certain domestic trade accounts receivable of the Company. As of September 30, 2022, the Company had no outstanding borrowings under the Accounts Receivable Facility and no borrowing base limitations. Availability under the Accounts Receivable Facility was $100 million as of September 30, 2022.

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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 $235.8 million. At September 30, 2022, the Company had borrowings outstanding of $50.9 million and bank guarantees of $2.6 million, which reduced the aggregate availability under these facilities to approximately $182.3 million.

On March 28, 2022, the Company issued the 2032 Notes in the aggregate principal amount of $350 million with an interest rate of 4.125%, maturing on April 1, 2032. Proceeds from the 2032 Notes were used for general corporate purposes, which included repayment of borrowings under the Senior Credit Facility and the Accounts Receivable Facility outstanding at the time of issuance. In addition, a portion of the proceeds from the 2032 Notes was used to fund the Spinea acquisition, which closed in the second quarter of 2022.

At September 30, 2022, the Company was in full compliance with all applicable covenants on its outstanding debt.

The Company expects to generate cash from operating activities in 2022 above 2021 levels driven by higher earnings. The Company expects capital expenditures of roughly 4.0% of sales in 2022, compared with 3.6% of sales ($148 million) in 2021.

Financing Obligations and Other Commitments:

During the first nine months of 2022, the Company made cash contributions and payments of $8.9 million to its global defined benefit pension plans and $2.7 million to its other postretirement benefit plans. The Company expects to make contributions to its global defined benefit plans of approximately $11 million in 2022. The Company expects to make payments of approximately $4 million to its other postretirement benefit plans in 2022. Excluding mark-to-market charges, the Company expects higher pension and other postretirement benefits expense in 2022 compared to 2021 primarily due to lower expected returns on pension plan assets and higher interest expense, partially offset by lower service costs.

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 U.S. GAAP. 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, 2021, during the nine months ended September 30, 2022.

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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 nine months ended September 30, 2022, the Company recorded negative foreign currency translation adjustments of $267.7 million that decreased shareholders' equity, compared with negative foreign currency translation adjustments of $53.3 million that decreased shareholders' equity for the nine months ended September 30, 2021. The foreign currency translation adjustments for the nine months ended September 30, 2022 were negatively impacted by the strengthening of the U.S. dollar relative to other foreign currencies, including the Euro, Chinese Yuan and Indian Rupee.

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 September 30, 2022 totaled $9.1 million of net gains, compared with $3.2 million of net losses during the three months ended September 30, 2021. Foreign currency exchange gains and losses, net of hedging activity, resulting from transactions included in the Company's operating results for the nine months ended September 30, 2022 totaled $13.7 million of net gains, compared with $8.8 million of net losses during the nine months ended September 30, 2021.

Russia Operations:

The Company had two subsidiaries in Russia, including Timken Russia, which was 100% owned by Timken and a 51%-owned joint venture to serve the Russian rail market ("Rail JV"). As a result of Russia's invasion of Ukraine (and associated sanctions), the Company suspended operations and recorded property, plant and equipment impairment charges of $9.0 million and inventory write-downs of $4.1 million during the nine months ended September 30, 2022. During the third quarter of 2022, the Company sold its Timken Russia business resulting in a loss of $2.1 million on the sale. After giving effect to these impairments and write-downs, as well as the sale of Timken Russia, as of September 30, 2022, the Company has net assets (net of noncontrolling interest of $7.4 million), totaling $8.1 million on its Consolidated Balance Sheet related to its Rail JV. Net assets include $10.6 million of cash and cash equivalents. The Company will continue to monitor the events in Russia and Ukraine and may record additional asset impairments or write-offs in the future.

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NON-GAAP MEASURES

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.

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

	Three Months Ended <br>September 30,						Nine Months Ended <br>September 30,
	2022			2021			2022			2021
Net Sales	$	1,136.4		$	1,037.3		$	3,414.7		$	3,125.6
Net Income Attributable to The Timken Company	87.0			88.1			310.2			306.2
Impairment, restructuring and reorganization<br><br>charges (1)	32.1			5.9			35.7			13.3
Corporate pension and other postretirement benefit<br><br>related expense (2)	1.0			3.9			15.2			8.3
Russia-related charges (3)	2.3			—			15.3			—
Acquisition-related charges (4)	3.0			1.5			5.7			2.1
Noncontrolling interest of above adjustments	0.1			—			(5.7)			0.2
Provision for income taxes (5)	(12.9)			(8.4)			(18.2)			(26.3)
Adjusted Net Income	$	112.6		$	91.0		$	358.2		$	303.8
Net income attributable to noncontrolling interest	3.4			3.5			7.7			8.6
Provision for income taxes (as reported)	26.7			20.4			108.9			75.1
Interest expense	19.3			14.8			51.9			45.0
Interest income	(1.1)			(0.5)			(2.7)			(1.7)
Depreciation and amortization expense (6)	39.9			41.0			122.0			125.7
Less: Noncontrolling interest	0.1			—			(5.7)			0.2
Less: Provision for income taxes (5)	(12.9)			(8.4)			(18.2)			(26.3)
Adjusted EBITDA	$	213.6		$	178.6		$	669.9		$	582.6
Adjusted EBITDA Margin (% of net sales)	18.8		%	17.2		%	19.6		%	18.6		%

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 <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
Diluted earnings per share (EPS)	$	1.18	$	1.14	$	4.16	$	3.97
Adjusted EPS	$	1.52	$	1.18	$	4.80	$	3.94
Diluted Shares	73,866,743		77,023,973		74,548,711		77,157,614

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

	Three Months Ended September 30, 2022
	Mobile			Process			Unallocated Corporate		Total
Net Sales	$	526.9		$	609.5		$	—	$	1,136.4
EBITDA	20.0			165.3			(10.1)		175.2
Impairment, restructuring and reorganization<br><br>charges (1)	31.0			1.1			—		32.1
Corporate pension and other postretirement benefit<br><br>related expense (2)	—			—			1.0		1.0
Russia-related charges (3)	4.1			(1.8)			—		2.3
Acquisition-related charges (4)	—			2.1			0.9		3.0
Adjusted EBITDA	$	55.1		$	166.7		$	(8.2)	$	213.6
Adjusted EBITDA Margin (% of net sales)	10.5		%	27.4		%	NM		18.8		%

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	Three Months Ended September 30, 2021
	Mobile			Process			Unallocated Corporate		Total
Net Sales	$	487.3		$	550.0		$	—	$	1,037.3
EBITDA	53.2			129.7			(15.3)		167.6
Impairment, restructuring and reorganization<br><br>charges (1)	4.8			0.8			—		5.6
Corporate pension and other postretirement<br><br>benefit related expense (2)	—			—			3.9		3.9
Acquisition-related charges (3)	0.2			0.2			1.1		1.5
Adjusted EBITDA	$	58.2		$	130.7		$	(10.3)	$	178.6
Adjusted EBITDA Margin (% of net sales)	11.9		%	23.7		%	NM		17.2		%			Nine Months Ended September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---
	Mobile			Process			Unallocated Corporate		Total
Net Sales	$	1,610.9		$	1,803.8		$	—	$	3,414.7
EBITDA	164.2			484.4			(50.6)		598.0
Impairment, restructuring and reorganization<br><br>charges (1)	33.0			2.7			—		35.7
Corporate pension and other postretirement benefit<br><br>related expense (2)	—			—			15.2		15.2
Russia-related charges (3)	16.6			(1.3)			—		15.3
Acquisition-related charges (4)	—			3.5			2.2		5.7
Adjusted EBITDA	$	213.8		$	489.3		$	(33.2)	$	669.9
Adjusted EBITDA Margin (% of net sales)	13.3		%	27.1		%	NM		19.6		%			Nine Months Ended September 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---
	Mobile			Process			Unallocated Corporate		Total
Net Sales	$	1,486.0		$	1,639.6		$	—	$	3,125.6
EBITDA	200.1			401.9			(42.3)		559.7
Impairment, restructuring and reorganization<br><br>charges (1)	6.3			6.2			—		12.5
Corporate pension and other postretirement<br><br>benefit related expense (2)	—			—			8.3		8.3
Acquisition-related charges (3)	0.6			0.5			1.0		2.1
Adjusted EBITDA	$	207.0		$	408.6		$	(33.0)	$	582.6
Adjusted EBITDA Margin (% of net sales)	13.9		%	24.9		%	NM		18.6		%

(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; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets held for sale. Impairment, restructuring and reorganization charges for the third quarter of 2022 included $29.3 million related to ADS. 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 losses (gains) that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial losses and (gains) in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement. Refer to Note 15 - Retirement Benefit Plans and Note 16 - Other Postretirement Benefit Plans for additional discussion.

(3) Russia-related charges include impairments and allowances recorded against certain property, plant and equipment, inventory and trade receivables to reflect the current impact of Russia's invasion of Ukraine (and associated sanctions) on the Company's operations. In addition to impairments and allowances recorded, the Company recorded a loss on the divestiture of its Timken Russia business during the third quarter of 2022. Refer to Russia Operations on page 40 above for additional information.

(4) Acquisition-related charges represent the contingent consideration related to the acquisition of iMS that closed on August 20, 2021, and deal-related expenses associated with completed and certain unsuccessful transactions, as well as any resulting inventory step-up impact. In addition, the 2021 acquisition-related charges includes measurement period adjustments to the bargain purchase gain on the acquisition of the assets of Aurora that closed on November 30, 2020.

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(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 (used in) 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 <br>September 30,				Nine Months Ended <br>September 30,
	2022		2021		2022		2021
Net cash provided by operating activities	$	145.2	$	105.8	$	222.3	$	284.6
Capital expenditures	(47.3)		(43.1)		(122.5)		(103.6)
Free cash flow	$	97.9	$	62.7	$	99.8	$	181.0

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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 September 30, 2022 and December 31, 2021 was $384.6 million and $381.5 million, respectively. Net debt to adjusted EBITDA for the trailing twelve months was 1.8 at September 30, 2022, compared with 1.7 at December 31, 2021.

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

	Twelve Months Ended
	September 30,<br>2022		December 31,<br>2021
Net income	$	384.6	$	381.5
Provision for income taxes	128.9		95.1
Interest expense	65.7		58.8
Interest income	(3.3)		(2.3)
Depreciation and amortization	163.3		167.8
Consolidated EBITDA	739.2		700.9
Adjustments:
Impairment, restructuring and reorganization charges (1)	$	37.5	$	14.3
Corporate pension and other postretirement benefit related expense (2)	7.2		0.3
Acquisition-related charges (3)	5.9		2.3
Russia-related charges (4)	15.3		—
Tax indemnification and related items	0.2		0.2
Total adjustments	66.1		17.1
Adjusted EBITDA	$	805.3	$	718.0
Net Debt	$	1,482.2	$	1,207.8
Ratio of Net Debt to Adjusted EBITDA	1.8		1.7

(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; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets held for sale. Impairment, restructuring and reorganization charges for the twelve months ended September 30, 2022 included $29.3 million related to ADS. 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 losses and (gains) that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial losses and (gains) in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement.

(3) Acquisition-related charges represent contingent consideration related to the acquisition of iMS that closed on August 20, 2021, and deal-related expenses associated with completed and certain unsuccessful transactions, as well as any resulting inventory step-up impact. Also included is the acquisition-related gain related to measurement period adjustments to the bargain purchase gain on the acquisition of the assets of Aurora that closed on November 30, 2020.

(4) Russia-related charges include allowances and impairments recorded against certain trade receivables, inventory and other assets to reflect the current impact of Russia's invasion of Ukraine (and associated sanctions) on the Company's operations. In addition to impairments and allowances recorded, the Company recorded a loss on the divestiture of its Timken Russia business during the third quarter of 2022. Refer to Russia Operations on page 40 in Management Discussion and Analysis for additional information.

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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, 2021 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, recession, 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, competition for skilled labor 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; disruptions to the Company's supply chain and logistical issues associated with port closures or congestion, delays or increased costs; 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 and commercial requirements meant to address climate change; and changes in the cost of labor and benefits;

•the impact of inflation on employee expenses, shipping costs, raw material costs, energy and fuel costs and other production costs;

•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, government procurement regulations, competition and anti-bribery laws, environmental or health and safety issues, data privacy and taxes;

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•changes in worldwide financial and capital markets, including availability of financing and interest rates on satisfactory terms in a rising interest rate environment, 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;

•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, 2021 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, 2021. 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 September 30, 2022, 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.

On May 31, 2022, the Company completed the acquisition of Spinea. The results of this acquisition are included in the Company's consolidated financial statements for the first nine months of 2022. The total and net assets of Spinea represent 3% of the Company's total assets and 6% of the Company's net assets as of September 30, 2022. The net sales and net income of Spinea represented less than 1% of the Company's consolidated net sales and consolidated net income for the first nine months of 2022. The scope of the Company's assessment of the effectiveness of internal control over financial reporting will not include this acquisition. This exclusion is in accordance with the SEC's general guidance that an assessment of a recently acquired business may be omitted from the Company's scope in the year of acquisition.

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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. U.S. Securities and Exchange Commission ("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 the maximum permitted threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required. 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, 2021, 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, 2021. 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 September 30, 2022.

Period	Total number<br><br>of shares<br><br>purchased (1)	Average<br><br>price paid<br><br>per share (2)		Total number<br>of shares<br>purchased as<br>part of publicly<br>announced<br>plans or<br>programs	Maximum<br><br>number of<br><br>shares that<br><br>may yet<br><br>be purchased<br><br>under the plans<br><br>or programs (3)
7/1/2022 - 7/31/2022	—	$	—	—	6,800,000
8/1/2022 - 8/31/2022	430,147	66.03		420,000	6,380,000
9/1/2022 - 9/30/2022	330,000	64.47		330,000	6,050,000
Total	760,147			750,000	—

(1)Of the shares purchased in August, 10,147 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.

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Item 6. Exhibits

10.1	The Timken Company 1996 Deferred Compensation Plan for officers and other key employees, amended and restated effective as of August 2, 2022.
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 September 30, 2022 filed on October 26, 2022, 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: October 26, 2022	By: /s/ Richard G. Kyle
	Richard G. Kyle<br>President and Chief Executive Officer<br>(Principal Executive Officer)
Date: October 26, 2022	By: /s/ Philip D. Fracassa
	Philip D. Fracassa<br>Executive Vice President and Chief Financial Officer<br>(Principal Financial Officer and Principal Accounting Officer)

50

Document

Exhibit 10.1

THE TIMKEN COMPANY

1996 DEFERRED COMPENSATION PLAN

(AS AMENDED AND RESTATED EFFECTIVE AUGUST 2, 2022)

The Timken Company (the “Company”) hereby amends and restates, effective August 2, 2022, its 1996 Deferred Compensation Plan (the “Plan”), which was originally established on November 3, 1995, amended and restated effective as of April 20, 1999, further amended by Amendments No. 1 and No. 2, and amended and restated effective as of December 31, 2008, December 31, 2010 and June 30, 2014.

Effective as of June 30, 2014 (the “Split Date”), certain assets and liabilities attributable to the benefits accrued for the Transferred Participants were spun off (the “Spin-Off”) to form a new plan to be known as the TimkenSteel Corporation 2014 Deferred Compensation Plan (the “TimkenSteel Plan”) which is sponsored by TimkenSteel Corporation. On and after the Split Date, such Transferred Participants ceased to be Participants under the Plan and became participants under the TimkenSteel Plan, and the terms of the TimkenSteel Plan shall govern the benefits accrued by the Transferred Participants under this Plan prior to the Split Date.

The Company previously amended and restated the Plan effective January 1, 2015 and January 1, 2019, and now desires to amend the Plan to make certain changes to the Plan deemed desirable in the administration of the Plan, and to restate the Plan as so amended effective August 2, 2022.

The Plan provides key executives with the opportunity to defer base salary, incentive compensation payments payable in cash or Common Shares, and certain Company contributions, in accordance with the provisions set forth below.

ARTICLE I

DEFINITIONS

For the purposes of the Plan, the following words and phrases shall have the meanings indicated in this Article I. Certain other words and phrases are defined throughout the Plan and shall have the meaning so ascribed to them.

1.“Account” shall mean a bookkeeping account maintained on behalf of each Participant pursuant to Section 4 of Article II that is comprised of (i) the Base Salary Subaccount that is credited with Base Salary deferred by a Participant, (ii) the Incentive Compensation Subaccount that is credited with cash Incentive Compensation deferred by a Participant, and (iii) an Excess Core Contribution Subaccount that is credited with an Excess Core Contributions deferred by a Participant. A separate subaccount shall be maintained for Incentive Compensation payable in the form of Common Shares. Certain Participants may also have a separate TimkenSteel Shares Subaccount maintained for Incentive Compensation that is payable in the form of TimkenSteel Shares, as provided in Section 4(iv) of Article II. A Participant’s Account(s) shall be further divided into the following subaccounts: (a) a “Pre-2005 Subaccount” for amounts deferred by a Participant as of December 31, 2004 (and earnings and losses thereon) as determined under Treasury Regulation Section 1.409A-6(a) or any successor provision, and (b) a “Post-2004 Subaccount” for amounts deferred for purposes of Section 409A of the Code by a Participant after December 31, 2004 (and earnings and losses thereon). Amounts in the Pre-2005 Subaccounts are intended to qualify for “grandfathered” status pursuant to Treasury Regulation Section 1.409A-6(a) and therefore they shall be subject to the terms and conditions specified in the Plan as in effect prior to January 1, 2005. A Participant’s Account(s) shall be credited with earnings as described in Section 4 of Article II of the Plan.

2.“Base Salary” shall mean the annual fixed or base compensation, payable to a Participant in accordance with the Company’s normal payroll practices.

3.“Beneficiary” or “Beneficiaries” shall mean the person or persons designated by a Participant in accordance with the Plan to receive payment of the remaining balance of the Participant’s Account(s) in the event of the death of the Participant prior to receipt of the entire amount credited to the Participant’s Account(s).

4.“Board” shall mean the Board of Directors of the Company.

5.“Code” shall mean the Internal Revenue Code of 1986, as amended.

6.“Change in Control” shall mean that:

(i)     All or substantially all of the assets of the Company are sold or transferred to another corporation or entity, or the Company is merged, consolidated or reorganized into or with another corporation or entity, with the result that upon conclusion of the transaction less than 51 percent of the outstanding securities entitled to vote generally in the election of directors or other capital interests of the acquiring corporation or entity is owned, directly or indirectly, by the shareholders of the Company generally prior to the transaction; or

(ii) There is a report filed on Schedule 13D or Schedule 14D-1F (or any successor schedule, form or report thereto), as promulgated pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”), disclosing that any person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation thereto under the Exchange Act) of securities representing 30 percent or more of the combined voting power of the then-outstanding voting securities of the Company; or

(iii) The Company shall file a report or proxy statement with the Securities and Exchange Commission (the “SEC”) pursuant to the Exchange Act disclosing in response to Item 1.01 or 5.01 of Form 8-K thereunder or Item 6(e) of Schedule 14A thereunder (or any successor schedule, form, report or item thereto) that a change in control of the Company has or may have occurred, or will or may occur in the future, pursuant to any then-existing contract or transaction; or

(iv) The individuals who constituted the Board at the beginning of any period of two consecutive calendar years cease for any reason to constitute at least a majority thereof unless the nomination for election by the Company’s shareholders of each new member of the Board was approved by a vote of at least two-thirds of the members of the Board still in office who were members of the Board at the beginning of any such period.

7. “Claims Administrator” shall mean (i) for claims with respect to Claimants who are officers of the Company, the Committee and (ii) for claims with respect to Claimants who are not officers of the Company, the Vice President, Human Resources and the Vice President, General Counsel and Secretary of the Company.

8. “Committee” shall mean the Compensation Committee of the Board or such other Committee as may be authorized by the Board to administer the Plan.

9. “Common Shares” shall mean shares of common stock without par value of the Company or any security into which such Common Shares may be changed by reason of any transaction or event of the type referred to in Section 8 of Article II of the Plan.

10. “Company” shall mean The Timken Company and its successors, including, without limitation, the surviving corporation resulting from any merger or consolidation of The Timken Company with any other corporation or corporations.

11. “Deferral Election” shall mean the Election Agreement (or portion thereof) completed by a Participant and filed with the Company that indicates the percentage of his or her Base Salary, Incentive Compensation and/or Excess Core Contributions that is or will be deferred under the Plan for the Deferral Period.

12. “Deferral Period” shall mean the Year that commences after each Election Filing Date, provided that a Deferral Period with respect to Performance Units and Restricted Stock Units granted under the Long-Term Incentive Plans may be a period of more than one Year.

13. “Election Agreement” shall mean an agreement in the form that the Company may designate from time to time that is consistent with the terms of the Plan.

14. “Election Filing Date” shall mean December 31 of the Year immediately prior to the first day of the Year (or other Deferral Period described in Section 12 of this Article) for which Base Salary, Incentive Compensation and/or Excess Core Contributions would otherwise be earned.

15. “Eligible Associate” shall mean an associate of the Company (or a Subsidiary that has adopted the Plan) who meets the requirements of the following clauses (i) and (ii):

(i) the associate is classified by the Company in grade 7 or above, and

(ii) the associate is a “highly compensated employee” within the meaning of Section 414(q) of the Code (determined in the same manner determined under the tax-qualified defined contribution plan in which the associate is a participant, if applicable to such plan).

16. “Employee Matters Agreement” shall mean the Employee Matters Agreement into which the Company and TimkenSteel Corporation intend to enter in connection with the Spin-Off.

17. “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

18. “Excess Company Contributions” shall mean the amount of Company contributions that would be made for a Participant’s benefit to the Savings and Investment Retirement Plan with respect to his Excess Deferrals, based on his elections under the Savings and Investment Retirement Plan, or on the basis his compensation in excess of the limitation under Section 401(a)(17) of the Code.

19. “Excess Core Contributions” shall mean Excess Company Contributions, other than the Company contributions that are made with respect to a Participant’s Excess Deferrals.

20. “Excess Deferrals” shall mean the amount of a Participant’s salary reduction contributions under the Savings and Investment Retirement Plan that are in excess of the limits imposed by Sections 402(g) and 401(a)(17) of the Code.

21. “Forfeitable Right” shall mean the right to payment of Base Salary, Incentive Compensation and/or Excess Core Contributions in a subsequent year that is subject to a forfeiture condition requiring the Eligible Associate to remain an associate with the Company or a Subsidiary through at least the 12-month anniversary of the date on which the Eligible Associate obtains the legally binding right to the Forfeitable Right. For purposes of this Section21 and Section 2(ii)(2) of Article II, a Forfeitable Right will be considered to be subject to a forfeiture condition even if such right to payment could become nonforfeitable upon death, disability (as defined in Treasury Regulation Section 1.409A-3(i)(4)), or a change in control event (as defined in Treasury Regulation Section 1.409A-3(i)(5)).

22. Forfeitable Rights Filing Date” shall mean the date that is 30 days after the date an Eligible Associate first obtains a legally binding right to a Forfeitable Right.

23. “Incentive Compensation” shall mean (i) cash incentive compensation earned as an associate pursuant to an incentive compensation plan now in effect or hereafter established by the Company, including, without limitation, the Short-Term Incentive Plan, the Long-

Term Incentive Plans, and Excess Deferrals and Excess Company Contributions (other than Excess Core Contributions) and (ii) to the extent that the Vice President, Human Resources or the Vice President, General Counsel and Secretary of the Company permit a Deferral Election with respect to such compensation for a given year, incentive compensation payable in the form of Common Shares pursuant to the Long-Term Incentive Plans (other than restricted shares or options) or any similar plan approved by the Committee for purposes of the Plan.

24. “Incentive Filing Date” shall mean the date six months prior to the end of a performance period with respect to which certain Incentive Compensation is earned.

25. “Long-Term Incentive Plans” shall mean The Timken Company Long-Term Incentive Plan or other similar long-term incentive plans, as amended from time to time.

26. “Participant” shall mean any Eligible Associate who has at any time elected to defer the receipt of Base Salary, Incentive Compensation, or Excess Core Contributions in accordance with the Plan. Notwithstanding the foregoing, on and after the Split Date, the Transferred Participants shall cease to be Participants under the Plan.

27. “Payment Election” shall mean the Election Agreement (or portion thereof) completed by a Participant and filed with the Company that indicates the time of the commencement of a payment and the form of a payment of that portion of the Participant’s Base Salary, Incentive Compensation and/or Excess Core Contributions that is deferred pursuant to a Deferral Election under the Plan.

28. “Plan” shall mean this deferred compensation plan, which shall be known as the 1996 Deferred Compensation Plan for The Timken Company.

29. “Savings and Investment Retirement Plan” shall mean The Timken Company Savings and Investment Retirement Plan.

30. “Specified Employee” shall mean a “specified employee” with respect to the Company (or a controlled group member) determined pursuant to procedures adopted by the Company in compliance with Section 409A of the Code and Treasury Regulation Section 1.409A-1(i) or any successor provision.

31. “Subsidiary” shall mean any corporation, joint venture, partnership, unincorporated association or other entity in which the Company has a direct or indirect ownership or other equity interest and directly or indirectly owns or controls more than 50 percent of the total combined voting or other decision-making power.

32. “Termination of Employment” means a separation from service within the meaning of Treasury Regulation Section 1.409A-1(h)(1).

33. “TimkenSteel Corporation Long-Term Incentive Plan” shall mean the TimkenSteel Corporation 2014 Equity and Incentive Compensation Plan, as amended from time to time.

34. “TimkenSteel Shares” shall mean shares of common stock without par value of TimkenSteel Corporation that are payable to certain Participants, as provided in Section 4(iv) of Article II.

35. “Transferred Participant” shall mean (i) an individual who, as of the close of business on the Split Date, is employed by TimkenSteel Corporation or a subsidiary of TimkenSteel Corporation and who immediately prior to the Split Date was a participant in the Plan, and (ii) any former employee of the Company or its affiliates who immediately prior to the Split Date was a participant in the Plan and who is designated by the Company and TimkenSteel Corporation as a former employee whose employment was associated with the business of TimkenSteel Corporation at the time of the individual's termination of employment with the Company or its affiliates.

36. “Unforeseeable Emergency” means an event that results in severe financial hardship to a Participant resulting from (a) an illness or accident of the Participant or his or her spouse, dependent (as defined in Section 152(a) of the Code), or Beneficiary, (b) loss of the Participant’s property due to casualty, or (c) other similar extraordinary and unforeseeable circumstances arising as of result of events beyond the control of the Participant.

37. “Year” shall mean a calendar year.

38. “Years of Service” shall mean “Years of Service” as defined in and determined under the Savings and Investment Retirement Plan.

ARTICLE II

ELECTIONS TO DEFER

1.Eligibility. An Eligible Associate may make an annual Deferral Election to defer receipt of all or a specified part of his or her Base Salary, Incentive Compensation, or Excess Core Contributions for any Deferral Period in accordance with Section 2 of this Article. Subject to Section 3(iv) of this Article, an Eligible Associate who makes a Deferral Election must also make a Payment Election with respect to the amount deferred in accordance with Section 3 of this Article. An Eligible Associate’s entitlement to defer shall cease on the last day of the Deferral Period in which he or she ceases to be an Eligible Associate.

2. Deferral Elections. All Deferral Elections, once effective, shall be irrevocable, shall be made on an Election Agreement filed with the Vice President, Human Resources or the Vice President, General Counsel and Secretary of the Company (or other Company administrative representative as may be designated by the Committee), and shall comply with the following requirements:

(i)    The Deferral Election on the Election Agreement shall specify the percentage of a Participant’s Base Salary (no more than 85%), Incentive Compensation (no more than 85%) and/or Excess Core Contributions (no more than 100%) that is to be deferred.

(ii) The Deferral Election shall be made by, and shall be effective as of, the applicable Election Filing Date, except that the Deferral Election may be made by, and effective as of, the dates provided in the following clauses (1), (2), or (3) to the extent applicable:

(1) To the extent permitted by Section 409A of the Code, the Company may permit Eligible Associates to make a Deferral Election with respect to Incentive Compensation that constitutes “performance-based compensation” (within the meaning of Section 409A(a)(4)(B)(iii) of the Code) at a time later than the Election Filing Date but no later than the Incentive Filing Date, and in such event, the Deferral Election shall be effective as of such Incentive Filing Date. If Incentive Compensation with respect to which an Eligible Associate has made a Deferral Election under this Section 2(ii)(1) is paid without satisfaction of the applicable

performance criteria upon death, disability (as defined in Treasury Regulation Section 1.409A-1(e)(1)), or a change in control event (as defined in Treasury Regulation Section 1.409A-3(i)(5)(i)), such Deferral Election will only be given effect if the Deferral Election could have been made pursuant to a provision of the Plan other than this Section 2(ii)(1).

(2) To the extent permitted by Section 409A of the Code, the Company may permit an Eligible Associate to make a Deferral Election with respect to a Forfeitable Right no later than the Forfeitable Rights Filing Date so long as such Forfeitable Right remains subject to a forfeiture condition through the 12-month anniversary of the date on which the Eligible Associate makes such Deferral Election. In such event, the Deferral Election shall be effective as of such Forfeitable Rights Filing Date. If a Forfeitable Right with respect to which an Eligible Associate has made a Deferral Election under this Section 2(ii)(2) becomes nonforfeitable upon death, disability (as defined in Treasury Regulation Section 1.409A-3(i)(4)), or a change in control event (as defined in Treasury Regulation Section 1.409A-3(i)(5)) prior to the 12-month anniversary of the date on which the Eligible Associate made such Deferral Election, such Deferral Election will only be given effect if the Deferral Election could have been made pursuant to a provision of the Plan other than this Section 2(ii)(2).

(iii) Subject to Section 3(iv) of this Article, in order to revoke or modify a Deferral Election with respect to Base Salary, Incentive Compensation and/or Excess Core Contributions for any particular Year, a revocation or modification must be delivered to the Vice President, Human Resources or the Vice President, General Counsel and Secretary of the Company (or other Company administrative representative as was previously designated by the Committee) prior to the Election Filing Date, Forfeitable Rights Filing Date or the Incentive Filing Date (as applicable).

3. Payment Elections. Subject to Sections 3(iv), 5, 6, and 7 of this Article and Section 5 of Article V, all Payment Elections are irrevocable, shall be made on an Election Agreement

filed with the Vice President, Human Resources or the Vice President, General Counsel and Secretary of the Company (or other Company administrative representative as may be designated by the Committee), and shall comply with the following requirements:

(i)     Each Participant shall make a separate Payment Election with respect to his or her Base Salary, Incentive Compensation, and Excess Core Contributions that the Participant defers for the Deferral Period pursuant to the applicable Deferral Election.

(ii)     Each Payment Election shall contain the Participant’s elections regarding the time at which the payment of amounts deferred pursuant to the specific Deferral Election shall commence.

(1) A Participant may elect to commence payment upon either (A) the date the Participant incurs a Termination of Employment for any reason (other than by reason of death), including, without limitation, by reason of retirement or (B) the date otherwise specified by the Participant in the Election Agreement, including a date determined by reference to the date the Participant incurs a Termination of Employment for any reason (other than by reason of death), including, without limitation, by reason of retirement.

(2) Subject to Section 3(vi) of this Article, (A) for Deferral Elections made with respect to Deferral Periods that commenced prior to January 1, 2019, payments made in accordance with the Participant’s election under Section 3(ii)(1)(A) of this Article shall be paid or commence to be paid within 90 days following the Termination of Employment and payments made in accordance with the Participant’s election under Section 3(ii)(1)(B) of this Article shall be paid or commence to be paid within 90 days following the date specified in the Election Agreement, provided that, in either case, the Participant shall not have the right to designate the year of payment, and (B) for Deferral Elections made with respect to Deferral Periods that commence on and after January 1, 2019, payments made in accordance with the Participant’s election under Section 3(ii)(1)(A) of this Article shall be paid or commence to be paid in the first calendar month of the first full calendar

quarter following the Termination of Employment and payments made in accordance with the Participant’s election under Section 3(ii)(1)(B) of this Article shall be paid or commence to be paid in the first calendar month of the first full calendar quarter following the date specified in the Election Agreement.

(iii)     Each Payment Election shall contain the Participant’s elections regarding the form of payment of the amount of his or her Base Salary, Incentive Compensation, and Excess Core Contributions that the Participant deferred for the Deferral Period pursuant to his or her Deferral Election.

(1) A Participant may elect to receive payment in one of the following forms: (A) a single, lump sum payment; (B) in a number of approximately equal quarterly installments, not to exceed 40, as designated by the Participant in his or her Election Agreement; or (C) subject to the approval of the Vice President, Human Resources or the Vice President, General Counsel and Secretary of the Company (or other Company administrative representative as may be designated by the Committee) at the time the Participant makes his or her Payment Election, pursuant to an alternate payment schedule designated by the Participant in his or her Election Agreement.

(2) In the event that a Participant’s deferral of Base Salary, Incentive Compensation, and Excess Core Contributions pursuant to his or her Payment Election is payable in quarterly installments, all of the quarterly installments during the installment period shall be approximately equal in amount. The amount of the unpaid installment payments remaining in the Participant’s Account(s) that is (a) attributable to the deferral of cash compensation shall continue to bear interest as provided in Section 4(i) of this Article, (b) attributable to the deferral of Incentive Compensation payable in the form of Common Shares shall continue to be credited with dividends, distributions and interest thereon as provided in Section 4(iii) of this Article and (c) attributable to the deferral of Incentive Compensation

payable in the form of TimkenSteel Shares shall continue to be credited with dividends, distributions and interest thereon as provided in Section 4(iv) of this Article.

(iv) If in the case of an Excess Core Contribution an Eligible Associate fails to timely file an Election Agreement, the Company, within 2 ½ months after the close of the Year during which the Excess Core Contribution was earned, shall pay to the Eligible Associate in a lump sum an amount equal to the Excess Core Contribution without interest.

(v)     Subject to Section 3(iv) of this Article, effective with respect to Deferral Elections made with respect to Base Salary, Incentive Compensation or Excess Core Contributions earned prior to January 1, 2015, if the Payment Elections are not made by the applicable Election Filing Date, Forfeitable Rights Filing Date, or Incentive Filing Date, as the case may be, or are insufficient to be deemed effective as of such date, then a Participant’s Deferral Election shall be null and void. Effective with respect to Deferral Elections made with respect to Base Salary, Incentive Compensation or Excess Core Contributions earned on or after January 1, 2015, if the Payment Elections are not made by the applicable Election Filing Date, Forfeitable Rights Filing Date, or Incentive Filing Date, as the case may be, or are insufficient to be deemed effective as of such date, the Participant shall be deemed to have elected to commence payment upon Termination of Employment in the form of a single, lump sum payment.

(vi) Notwithstanding the foregoing provisions of Section 3 of this Article, if the Participant is a Specified Employee, then (A) for Deferral Elections made with respect to Deferral Periods commencing prior to January 1, 2019, any payment on account of Termination of Employment that was scheduled to commence during the six-month period immediately following the Participant’s Termination of Employment shall commence on the first day of the seventh month after such Termination of Employment (or, if earlier, the date of death) and (B) for Deferral Elections made with respect to Deferral Periods that commence on and after January 1, 2019, any payment on account of Termination of Employment that was scheduled to commence during the six-month period immediately following the Participant’s Termination of Employment shall commence in the first calendar month of

the first full calendar quarter following the sixth-month anniversary of such Termination of Employment. Any payments on account of Termination of Employment that are scheduled to be paid more than six months after such Participant’s Termination of Employment shall not be delayed and shall be paid in accordance with provisions of Section 3(iii) of this Article.

4. Accounts.

(i)    Cash compensation that a Participant elects to defer shall be treated as if it were set aside in an Account on the date the Base Salary or Incentive Compensation would otherwise have been paid to the Participant. The Base Salary and Incentive Compensation Subaccounts will be credited with interest computed quarterly (based on calendar quarters) based on the balance in such Subaccounts on the last day of each calendar quarter at such rate and in such manner as determined from time to time by the Committee. Unless otherwise determined by the Committee, interest to be credited hereunder shall be credited at the prime rate in effect according to the Wall Street Journal on the last day of each calendar quarter plus one percent. Interest for a calendar quarter shall be credited to the Base Salary and Incentive Compensation Subaccounts as of the first day of the following quarter.

(ii)     An Excess Core Contribution that a Participant defers under the Plan shall be treated as if it was credited to the Participant’s Account on the date the Excess Core Contribution is made. An Excess Core Contributions Subaccount shall be credited with interest computed quarterly (based on calendar quarters) based on the balance in the Excess Core Contributions Subaccount on the last day of each calendar quarter at such rate and in such manner as determined from time to time by the Committee. Unless otherwise determined by the Committee, interest to be credited hereunder shall be credited at the prime rate in effect according to the Wall Street Journal on the last day of each calendar quarter plus one percent. Interest for a calendar quarter shall be credited to the Excess Core Contributions Subaccount as of the first day of the following quarter.

(iii) Incentive Compensation payable in the form of Common Shares that a Participant elects to defer and Common Shares to which a Participant becomes entitled as a result of the Spin-Off under the Employee Matters Agreement shall be reflected in a separate Account,

which shall be credited with the number of Common Shares that would otherwise have been issued or transferred and delivered to the Participant. Such Account, following any applicable vesting period, shall be credited from time to time with amounts equal to dividends or other distributions paid on the number of Common Shares reflected in such Account, and such Account shall be credited with interest on cash amounts credited to such Account from time to time in the manner provided in Subsection (i) above.

(iv)     Notwithstanding anything in the Plan to the contrary, any election made by a Participant prior to the Split Date to defer Incentive Compensation payable in the form of Common Shares shall, as of the Split Date, be adjusted in the manner provided in Article X of the Employee Matters Agreement, such that the Participant will become entitled to payment in the form of a combination of Common Shares and TimkenSteel Shares. Incentive Compensation payable in the form of TimkenSteel Shares shall be reflected in a separate TimkenSteel Shares Subaccount, which shall be credited with the number of TimkenSteel Shares that would otherwise have been issued or transferred and delivered to the Participant; provided, however, that payment of any TimkenSteel Shares to the Participant, including any dividends, distributions and interest thereon, shall be made by TimkenSteel Corporation.

(v)     Except as otherwise provided in the Plan, a Participant’s Account shall be nonforfeitable.

5. Death of a Participant. In the event of the death of a Participant, the amount of the Participant’s Account(s) shall be paid to the Beneficiary or Beneficiaries designated in a writing on a form that the Company may designate from time to time (the “Beneficiary Designation”), in a lump sum within 90 days of the day of death; provided that the Beneficiary or Beneficiaries shall not have the right to designate the year of payment. A Participant’s Beneficiary Designation may be changed at any time prior to his or her death by the execution and delivery of a new Beneficiary Designation. The Beneficiary Designation on file with the Company that bears the latest date at the time of the Participant’s death shall govern. In the absence of a Beneficiary Designation or the failure of any Beneficiary to survive the Participant, the amount of the Participant’s Account(s) shall be paid to the Participant’s estate in a lump sum within 90 days of the day of death;

provided that the representative of the estate shall not have the right to designate the year of payment. In the event of the death of the Beneficiary or Beneficiaries after the death of a Participant, the remaining amount of the Account(s) shall be paid in a lump sum to the estate of the last Beneficiary to receive payments within 90 days of the day of death; provided that the representative of the estate shall not have the right to designate the year of payment.

6. Small Payments. Notwithstanding the foregoing provisions of this Article II, if upon the applicable distribution date the Participant’s total balance in his or her Account(s), in addition to the balances and accounts under and any other agreements, methods, programs, plans or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan with the account balances under the Plan under Treasury Regulation Section 1.409A-1(c)(2) (the “Aggregate Account Balance”), is no greater than the applicable dollar amount specified by Section 402(g)(1)(B) of the Code ($18,500 for 2018), then the amount of the Participant’s Aggregate Account Balance may, at the discretion of the Company, be paid in a lump sum upon the applicable distribution date under Section 3 of Article II.

7. Accelerations. Notwithstanding the foregoing provisions of this Article II, and subject to Section 5 of Article V:

(i)    If a Change in Control occurs, the total amount of each Participant’s Base Salary Subaccount, Incentive Compensation Subaccount, and Excess Core Contribution Subaccount shall immediately be paid to the Participant in the form of a single, lump sum payment, provided that if such Change in Control does not constitute a “change in the ownership or effective control” or a “change in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A(a)(2)(A)(v) of the Code and Treasury Regulation Section 1.409A-3(i)(5), or any successor provision, then payment shall be made, to the extent necessary to comply with the provisions of Section 409A of the Code, to the Participant on the date (or dates) the Participant would otherwise be entitled to a distribution (or distributions) in accordance with the provisions of the Plan.

(ii)     In the event of an Unforeseeable Emergency and at the request of a Participant or Beneficiary, the Committee may in its sole discretion accelerate the payment to the Participant or Beneficiary of all or a part of his or her Account(s). Payments of amounts as a result of an Unforeseeable Emergency may not exceed the amount necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution(s), after taking into account the extent to which the hardship is or may be relieved through reimbursement or compensation by insurance or otherwise by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).

8. Adjustments. The Committee may make or provide for such adjustments in the numbers of Common Shares or TimkenSteel Shares credited to Participants’ Account, and in the kind of shares so credited, as the Committee in its sole discretion, exercised in good faith, may determine is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (i) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company or TimkenSteel Corporation, or (ii) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (iii) any other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for any or all Common Shares or TimkenSteel Shares deliverable under the Plan such alternative consideration as it, in good faith, may determine to be equitable in the circumstances.

9. Fractional Shares. The Company shall not be required to issue any fractional Common Shares pursuant to the Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions in cash.

ARTICLE III

ADMINISTRATION

1.Administration. The Company, through the Committee, shall be responsible for the general administration of the Plan and for carrying out the provisions hereof. The Committee shall have all such powers as may be necessary to carry out the provisions of the Plan, including the power to (i) determine all questions relating to eligibility for participation in the Plan and the amount in the Account or Accounts of any Participant and all questions pertaining to claims for benefits and procedures for claim review, (ii) resolve all other questions arising under the Plan, including any questions or construction, and (iii) take such further action as the Company shall deem advisable in the administration of the Plan. The actions taken and the decisions made by the Committee hereunder shall be final and binding upon all interested parties. It is intended that all Participant elections hereunder shall comply with Section 409A of the Code. The Committee is authorized to adopt rules or regulations deemed necessary or appropriate in connection therewith to anticipate and/or comply with the requirements thereof (including any transition rules thereunder).

2. Claims Procedures. Whenever there is denied, whether in whole or in part, a claim for benefits under the Plan filed by any person (herein referred to as the “Claimant”), the Claims Administrator shall transmit a written notice of such decision to the Claimant within 90 days of receiving the claim from the Claimant, which notice shall be written in a manner calculated to be understood by the Claimant and shall contain a statement of the specific reasons for the denial of the claim, a reference to the relevant Plan provisions, a description and explanation of additional information needed, and a statement advising the Claimant that, within 60 days of the date on which he or she receives such notice, he or she may obtain review of such decision in accordance with the procedures hereinafter set forth. Within such 60-day period, the Claimant or the Claimant’s authorized representative may request that the claim denial be reviewed by filing with the Claims Administrator a written request therefor, which request shall contain the following information:

(i)    the date on which the Claimant’s request was filed with the Claims Administrator; provided, however, that the date on which the Claimant’s request for review was in fact

filed with the Claims Administrator shall control in the event that the date of the actual filing is later than the date stated by the Claimant pursuant to this paragraph;

(ii)     the specific portions of the denial of the claim which the Claimant requests the Claims Administrator to review;

(iii) a statement by the Claimant setting forth the basis upon which the Claimant believes the Claims Administrator should reverse the previous denial of the Claimant’s claim for benefits and accept the claim as made; and

(iv) any written material (offered as exhibits) which the Claimant desires the Claims Administrator to examine in its consideration of the Claimant’s position as stated pursuant to clause (iii) above.

Within 60 days of the date determined pursuant to clause (i) above, the Claims Administrator shall conduct a full and fair review of the decision denying the Claimant’s claim for benefits. Within 60 days of the date of such hearing, the Claims Administrator shall render its written decision on review, written in a manner calculated to be understood by the Claimant and including the reasons and Plan provisions upon which its decision was based, a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents and other information relevant to the claim, and a statement describing the Claimant’s right to bring an action under Section 502(a) of ERISA.

ARTICLE IV

AMENDMENT AND TERMINATION

1.Right to Amend or Terminate. The Company reserves the right to amend or terminate the Plan at any time by action of the Committee. Without limiting the authority of the Board or the Committee to amend or terminate the Plan, the Committee has authorized the President and Chief Executive Officer, the Executive Vice President and Chief Financial Officer and the Vice President, General Counsel and Secretary of the Company (the “Authorized Officers”), through joint action of two or more of such Authorized Officers evidenced by an instrument signed by any two of them, to adopt any amendment to the Plan that (a) does not materially increase benefits under the Plan and (b) applies generally to all Participants and/or Beneficiaries or to a broad class of Participants and/or Beneficiaries. For this

purpose, any amendment that adds a new Company contribution to the Plan or that is reasonably expected to increase the Company’s benefit liabilities under the Plan by more than 10% per year will be considered an amendment that materially increases benefits. The examples in the preceding sentence are intended to be illustrative, and not exhaustive, and, for the avoidance of doubt, an amendment to provide for or modify the notional investment of Accounts in mutual funds or other market-based investment options will not be considered an amendment that materially increases benefits.

2. Consent. Notwithstanding Section 1 of this Article IV, no amendment or termination of the Plan shall adversely affect any Participant or Beneficiary who has an Account, or result in the acceleration of payment of the amount of any Account (except as otherwise permitted under the Plan), without the consent of the Participant or Beneficiary; provided, however, that the consent requirement of Participants or Beneficiaries to certain actions shall not apply to any amendment or termination made by the Company pursuant to Section 9(iii) of Article V. Notwithstanding the preceding sentence, the Committee, in its sole discretion, may terminate the Plan to the extent and in circumstances described in Treasury Regulation Section 1.409A-3(j)(4)(ix), or any successor provision.

ARTICLE V

MISCELLANEOUS

1. Non-alienation of Deferred Compensation. Except as permitted by the Plan and subject to Section 9(ii) of this Article V, no right or interest under the Plan of any Participant or Beneficiary shall, without the written consent of the Company, be (i) assignable or transferable in any manner, (ii) subject to alienation, anticipation, sale, pledge, encumbrance, attachment, garnishment or other legal process or (iii) in any manner liable for or subject to the debts or liabilities of the Participant or Beneficiary.

2. Participation by Associates of Subsidiaries. An Eligible Associate who is employed by a Subsidiary and elects to participate in the Plan shall participate on the same basis as an associate of the Company. The Account or Accounts of a Participant employed by a Subsidiary shall be paid in accordance with the Plan solely by such Subsidiary to the extent

attributable to Base Salary or Incentive Compensation that would have been paid by such Subsidiary in the absence of deferral pursuant to the Plan.

3. Interest of Associate. The obligation of the Company under the Plan to make payment of amounts reflected in an Account merely constitutes the unsecured promise of the Company to make payments from its general assets or in the form of its Common Shares, or to cause TimkenSteel Corporation to make payments in the form of TimkenSteel Shares, as the case may be, as provided herein, and no Participant or Beneficiary shall have any interest in, or a lien or prior claim upon, any property of the Company. The obligation of TimkenSteel Corporation under the Plan to make payment of amounts reflected in a TimkenSteel Shares Subaccount merely constitutes the unsecured promise of TimkenSteel Corporation to make payments in the form of its TimkenSteel Shares, as provided herein, and no Participant or Beneficiary shall have any interest in, or a lien or prior claim upon, any property of TimkenSteel Corporation. Further, no Participant or Beneficiary shall have any claim whatsoever against any Subsidiary for amounts reflected in an Account. Nothing in the Plan shall be construed as guaranteeing future employment to Eligible Associates and nothing in the Plan shall be considered in any manner a contract of employment. It is the intention of the Company that the Plan be unfunded for tax purposes of Title I of ERISA. The Company may create a trust to hold funds, Common Shares or other securities to be used in payment of its obligations under the Plan, and may fund such trust; provided, however, that any funds contained therein shall remain liable for the claims of the Company’s general creditors and provided, further, that no amount shall be transferred to trust if, pursuant to Section 409A of the Code, such amount would, for purposes of Section 83 of the Code, be treated as property transferred in connection with the performance of services.

4. Claims of Other Persons. The provisions of the Plan shall in no event be construed as giving any other person, firm or corporation any legal or equitable right as against the Company or any Subsidiary or the officers, employees or directors of the Company or any Subsidiary, except any such rights as are specifically provided for in the Plan or are hereafter created in accordance with the terms and provisions of the Plan.

5. Special Rules for Participants Prior to January 1, 2018. Notwithstanding any provision of this Plan to the contrary, the following provisions of this Section 5 shall apply to any Eligible Associate who was an Eligible Associate prior to January 1, 2018 and has less than three Years of Service as of the date an Excess Core Contribution is to be made:

(i)     If such Eligible Associate has less than three Years of Service as of the date of an Excess Core Contribution, he or she shall, pursuant to Article II, elect (or in the absence of a properly filed Election Agreement, shall be deemed to have elected) to defer all of his or her Excess Core Contribution for the Year (and any Election Agreement to the contrary shall be disregarded and treated as not properly filed hereunder). If such Eligible Associate fails to file properly a Payment Election for such Excess Core Contributions, the Eligible Associate shall be deemed to have timely filed an Election Agreement with a Payment Election electing a lump sum payment to be made within 2-1/2 months after the close of the Year during which the Eligible Associate achieved three Years of Service, or if earlier, the close of the Year during which the Eligible Associate incurs a Termination of Employment due to death, Disability (as defined in the Savings and Investment Pension Plan) or Retirement (as defined in the Savings and Investment Pension Plan).

(ii) Such Eligible Associate may not elect a date for commencement of his or her Excess Core Contributions pursuant to Section 3(ii)(1)(B) of Article II that is prior to the date such Eligible Associate will have achieved three Years of Service.

(iii)      If, as of the date of such Eligible Associate’s Termination of Employment, the Eligible Associate has not achieved three Years of Service, the Eligible Associate shall forfeit his or her Excess Core Contributions Subaccount, including any interest credited to such Subaccount. Notwithstanding the preceding sentence, such Eligible Associate shall not forfeit his or her Excess Core Contributions Subaccount if the Eligible Associate’s Termination of Employment is due to death, Disability (as defined in the Savings and Investment Retirement Plan) or Retirement (as defined in the Savings and Investment Retirement Plan). Further, such Eligible Associate’s Excess Core Contribution Subaccount will not be immediately paid upon a Change in Control pursuant to Section 7(i) of Article II

if, at the time of such Change in Control, the Eligible Associate has less than three Years of Service.

6. Severability. The invalidity and unenforceability of any particular provision of the Plan shall not affect any other provision hereof, and the Plan shall be construed in all respects as if such invalid or unenforceable provision were omitted herefrom.

7. Governing Law. Except to the extent preempted by federal law, the provisions of the Plan shall be governed and construed in accordance with the laws of the State of Ohio.

8. Relationship to Other Plans.

(i)     The Plan is intended to serve the purposes of and to be consistent with the Long-Term Incentive Plans and any similar plan approved by the Committee for purposes of the Plan. The issuance or transfer of Common Shares pursuant to the Plan shall be subject in all respects to the terms and conditions of the Long-Term Incentive Plans and any other such plan. Without limiting the generality of the foregoing, Common Shares credited to the Account(s) of Participants pursuant to the Plan as Incentive Compensation shall be taken into account for purposes of Section 3 of the Long-Term Incentive Plans (Maximum Shares Available Under the Plan) and for purposes of the corresponding provisions of any other such plan.

(ii)     The issuance or transfer of TimkenSteel Shares pursuant to the Plan shall be made by TimkenSteel Corporation and shall be subject in all respects to the terms and conditions of the TimkenSteel Corporation Long-Term Incentive Plan and any other such plan. Without limiting the generality of the foregoing, TimkenSteel Shares credited to the TimkenSteel Shares Subaccount of Participants pursuant to the Plan as Incentive Compensation shall be taken into account for purposes of Section 3 of the TimkenSteel Corporation Long-Term Incentive Plan (Maximum Shares Available Under the Plan) and for purposes of the corresponding provisions of any other such plan

9. Compliance with Section 409A of the Code.

(i)     To the extent applicable, it is intended that the Plan (including all amendments thereto) comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participant or a

Beneficiary. The Plan shall be administered in a manner consistent with this intent. In furtherance of, but without limiting the generality of the foregoing, amounts in the Pre-2005 Subaccounts, which are intended to qualify for “grandfathered” status pursuant to Treasury Regulation Section 1.409A-6(a), shall not be subject to the provisions of Section 409A of the Code and shall be governed by the terms and conditions specified in the Plan as in effect prior to January 1, 2005.

(ii)     Neither a Participant nor any of a Participant’s creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable under the Plan to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment, provided that to the extent permitted by Section 409A of the Code, payment of part or all of a Participant’s interest under the Plan may be made to an individual other than the Participant to the extent necessary to fulfill a domestic relations order as defined in Section 414(p)(1)(B) of the Code. Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s benefit under the Plan may not be reduced by, or offset against, any amount owing by a Participant to the Company or any of its affiliates.

(iii)     Notwithstanding any provision of the Plan to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to the Plan as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a Participant shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a Participant’s Account in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

10. Headings; Interpretation.

(i)    Headings in the Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof.

(ii)     Any reference in the Plan to Section 409A of the Code will also include any applicable proposed, temporary, or final regulations or any other applicable formal guidance promulgated with respect to such Section 409A of the Code by the U.S. Department of Treasury or the Internal Revenue Service. Further, any specific reference to a Code section or a Treasury Regulation section shall include any successor provision of the Code or the Treasury Regulation, as applicable.

(iii) For purposes of the Plan, the phrase “permitted by Section 409A of the Code,” or words or phrases of similar import, shall mean that the event or circumstance that may occur or exist only if permitted by Section 409A of the Code would not cause an amount deferred or payable under the Plan to be includible in the gross income of a Participant or Beneficiary under Section 409A(a)(1) of the Code.

IN WITNESS WHEREOF, the Company has caused this Plan to be executed by two duly authorized officers at North Canton, Ohio, this 8th day of September, 2022.

THE TIMKEN COMPANY

/s/ Richard G. Kyle______________

Name: Richard G. Kyle

Title: President and Chief Executive Officer

/s/ Philip D. Fracassa_____________

Name: Philip D. Fracassa

Title: Executive Vice President, Chief Financial Officer

25

Document

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: October 26, 2022

By: /s/ Richard G. Kyle
Richard G. Kyle<br>President and Chief Executive Officer<br>(Principal Executive Officer)

Document

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: October 26, 2022

By: /s/ Philip D. Fracassa
Philip D. Fracassa<br>Executive Vice President and Chief Financial Officer<br>(Principal Financial Officer and Principal Accounting Officer)

Document

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 September 30, 2022, 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: October 26, 2022

By: /s/ Richard G. Kyle
Richard G. Kyle<br>President and Chief Executive Officer<br>(Principal Executive Officer)
By: /s/ Philip D. Fracassa
---
Philip D. Fracassa<br>Executive Vice President and Chief Financial Officer<br>(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.