XML 78 R32.htm IDEA: XBRL DOCUMENT v3.19.3
Equity (Tables)
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Equity
The following tables present the changes in the components of equity for the three and nine months ended September 30, 2019 and 2018, respectively:
 
 
The Timken Company Shareholders
 
 
Total
Stated
Capital
Other
Paid-In
Capital
Earnings
Invested
in the
Business
Accumulated
Other
Comprehensive
(Loss)
Treasury
Stock
Non
controlling
Interest
Balance at June 30, 2019
$
1,783.6

$
53.1

$
941.3

$
1,772.0

$
(97.5
)
$
(957.6
)
$
72.3

Net income
66.7

 
 
64.2

 
 
2.5

Foreign currency translation adjustment
(63.0
)
 
 
 
(61.2
)
 
(1.8
)
Pension and other postretirement liability
adjustments (net of income tax expense
of $25.4 million)
76.7

 
 
 
76.7

 
 
Change in fair value of derivative financial
instruments, net of reclassifications
1.9

 
 
 
1.9

 
 
Dividends paid to noncontrolling interest
(0.3
)
 
 
 
 
 
(0.3
)
Dividends – $0.28 per share
(21.2
)
 
 
(21.2
)
 
 
 
Stock-based compensation expense
5.8

 
5.8

 
 
 
 
Stock purchased at fair market value
(32.5
)
 

 
 
(32.5
)
 
Stock option exercise activity
1.0

 
(1.0
)
 
 
2.0

 
Restricted share activity
—

 
(0.6
)
 
 
0.6

 
Payments related to tax withholding for
stock-based compensation
(1.2
)
 

 
 
(1.2
)
 
Balance at September 30, 2019
$
1,817.5

$
53.1

$
945.5

$
1,815.0

$
(80.1
)
$
(988.7
)
$
72.7

 
 
The Timken Company Shareholders
 
 
Total
Stated
Capital
Other
Paid-In
Capital
Earnings
Invested
in the
Business
Accumulated
Other
Comprehensive
(Loss)
Treasury
Stock
Non
controlling
Interest
Balance at December 31, 2018
$
1,642.7

$
53.1

$
951.9

$
1,630.2

$
(95.3
)
$
(960.3
)
$
63.1

Net income
256.9

 
 
248.6

 
 
8.3

Foreign currency translation adjustment
(62.1
)
 
 
 
(61.9
)
 
(0.2
)
Pension and other postretirement liability
adjustments (net of income tax expense
of $25.3 million)
76.6

 
 
 
76.6

 
 
Change in fair value of derivative financial
instruments, net of reclassifications
0.5

 
 
 
0.5

 
 
Dividends paid to noncontrolling interest
(0.3
)
 
 
 
 
 
(0.3
)
Noncontrolling interest acquired
1.8

 
 
 
 
 
1.8

Dividends – $0.84 per share
(63.8
)
 
 
(63.8
)
 
 
 
Stock-based compensation expense
20.7

 
20.7

 
 
 
 
Stock purchased at fair market value
(56.1
)
 
 
 
 
(56.1
)
 
Stock option exercise activity
9.9

 
(4.4
)
 
 
14.3

 
Restricted share activity
—

 
(22.7
)
 
 
22.7

 
Payments related to tax withholding for
stock-based compensation
(9.3
)
 
 
 
 
(9.3
)
 
Balance at September 30, 2019
$
1,817.5

$
53.1

$
945.5

$
1,815.0

$
(80.1
)
$
(988.7
)
$
72.7

For further discussion of the pretax pension and other postretirement liability adjustments, see Note 14 - Retirement Benefit Plans and Note 15 - Other Postretirement Benefit Plans.




Note 9 - Equity (continued)

 
 
The Timken Company Shareholders
 
  
Total
Stated
Capital
Other
Paid-In
Capital
Earnings
Invested
in the
Business
Accumulated
Other
Comprehensive
(Loss)
Treasury
Stock
Non
controlling
Interest
Balance at June 30, 2018
$
1,552.3

$
53.1

$
907.2

$
1,545.3

$
(69.9
)
$
(913.9
)
$
30.5

Net income
72.3

 
 
71.6

 
 
0.7

Foreign currency translation adjustment
(24.3
)
 
 
 
(18.5
)
 
(5.8
)
Change in fair value of derivative financial
instruments, net of reclassifications
(0.4
)
 
 
 
(0.4
)
 
 
Shares issued for the acquisition of ABC
Bearings
66.0

 
30.9

 
 
 
35.1

Dividends – $0.28 per share
(21.5
)
 
 
(21.5
)
 
 
 
Stock-based compensation expense
7.7

 
7.7

 
 
 
 
Stock purchased at fair market value
(13.4
)
 
 
 
 
(13.4
)
 
Stock option exercise activity
2.1

 
(0.6
)
 
 
2.7

 
Restricted share activity
—

 
(0.1
)
 
 
0.1

 
Payments related to tax withholding for
stock-based compensation
(0.4
)
 
 
 
 
(0.4
)
 
Balance at September 30, 2018
$
1,640.4

$
53.1

$
945.1

$
1,595.4

$
(88.8
)
$
(924.9
)
$
60.5


 
 
The Timken Company Shareholders
 
  
Total
Stated
Capital
Other
Paid-In
Capital
Earnings
Invested
in the
Business
Accumulated
Other
Comprehensive
(Loss)
Treasury
Stock
Non
controlling
Interest
Balance at December 31, 2017
$
1,474.9

$
53.1

$
903.8

$
1,408.4

$
(38.3
)
$
(884.3
)
$
32.2

Cumulative effect of the new revenue standard
(net of income tax benefit of $2.6 million)(1)
7.7

 
—

7.7

 
 
 
Cumulative effect of ASU 2018-02
—

 
 
0.7

(0.7
)
 
 
Net income
244.7

 
 
242.8

 
 
1.9

Foreign currency translation adjustment
(62.5
)
 
 
 
(53.8
)
 
(8.7
)
Change in fair value of derivative financial
instruments, net of reclassifications
4.0

 
 
 
4.0

 
 
Shares issued for the acquisition of ABC Bearings
66.0

 
30.9

 
 
 
35.1

Dividends – $0.83 per share
(64.2
)
 
 
(64.2
)
 
 
 
Stock-based compensation expense
25.5

 
25.5

 
 
 
 
Stock purchased at fair market value
(63.0
)
 
 
 
 
(63.0
)
 
Stock option exercise activity
12.7

 
(3.7
)
 
 
16.4

 
Restricted share activity
—

 
(11.4
)
 
 
11.4

 
Payments related to tax withholding for
   stock-based compensation
(5.4
)
 
 
 
 
(5.4
)
 
Balance at September 30, 2018
$
1,640.4

$
53.1

$
945.1

$
1,595.4

$
(88.8
)
$
(924.9
)
$
60.5

(1) On January 1, 2018, the Company recognized the cumulative effect of adopting the revenue recognition guidance in ASU 2014-09 and related amendments as an adjustment to the opening balance of earnings invested in the business for the year ended December 31, 2018. Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2018 for further information.