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Financing Arrangements
 6 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Financing Arrangements
Note 7 - Financing Arrangements

Short-term debt at June 30, 2013 and December 31, 2012 was as follows:
 
June 30,
2013
December 31,
2012
Variable-rate lines of credit for certain of the Company’s foreign subsidiaries with
  various banks with an interest rate of 1.33% at June 30, 2013 and interest rates
  ranging from 0.61% to 2.28% at December 31, 2012.
$
7.0

$
14.3

Short-term debt
$
7.0

$
14.3



The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $217.0 million. Most of these lines of credit are uncommitted. At June 30, 2013, the Company’s foreign subsidiaries had borrowings outstanding of $7.0 million and guarantees of $0.3 million, which reduced the availability under these facilities to $209.7 million.

The Company has a $200 million Amended and Restated Asset Securitization Agreement (Asset Securitization Agreement), which matures on November 30, 2015. Under the terms of the Asset Securitization Agreement, 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, which are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the agreement are limited by certain borrowing base calculations. Any amounts outstanding under this Asset Securitization Agreement would be reported in short-term debt on the Company’s Consolidated Balance Sheet. As of June 30, 2013, there were no outstanding borrowings under the Asset Securitization Agreement. However, certain borrowing base limitations reduced the availability of the Asset Securitization Agreement to $188.4 million at June 30, 2013. The cost of this facility, which is the commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income.

Long-term debt at June 30, 2013 and December 31, 2012 was as follows:
 
June 30,
2013
December 31,
2012
Fixed-rate Medium-Term Notes, Series A, mature at various dates through
May 2028, with interest rates ranging from 6.74% to 7.76%
$
175.0

$
175.0

Fixed-rate Senior Unsecured Notes, maturing on September 15, 2014, with an
interest rate of 6.0%
249.9

249.9

Variable-rate State of Ohio Water Development Revenue Refunding Bonds,
maturing on November 1, 2025 (0.14% at June 30, 2013)
12.2

12.2

Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds,
maturing on November 1, 2025 (0.23% at June 30, 2013)
9.5

9.5

Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing
on June 1, 2033 (0.23% at June 30, 2013)
8.5

8.5

Other
0.4

9.6

 
$
455.5

$
464.7

Less current maturities
0.2

9.6

Long-term debt
$
455.3

$
455.1



The Company has a $500 million Amended and Restated Credit Agreement (Senior Credit Facility), which matures on May 11, 2016. At June 30, 2013, the Company had no outstanding borrowings under the Senior Credit Facility but had letters of credit outstanding totaling $8.6 million, which reduced the availability under the Senior Credit Facility to $491.4 million. Under the Senior Credit Facility, the Company has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At June 30, 2013, the Company was in full compliance with both the covenants under the Senior Credit Facility.

In 2011, the Company was notified that its variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033, had lost their tax-exempt status and would now be taxable to its bondholders. As part of the negotiation with the Internal Revenue Service (IRS), the Company redeemed half of the balance during the third quarter of 2012. The Company now expects to pay off the remaining balance of $8.5 million on December 31, 2022.