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Financing Arrangements | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Financing Arrangements | Note 12 - Financing Arrangements Short-term debt as of December 31, 2024 and 2023 was as follows:
| 2024 | 2023
Variable-rate Term Loan(1), originally due to mature on August 16, 2024; redeemed on May 29, 2024. | $ | — |  | $ | 220.8 |
Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 3.36% to 3.95% at December 31, 2024 and 4.35% to 7.33% at December 31, 2023 | 8.7 |  | 25.4 |
Short-term debt | $ | 8.7 |  | $ | 246.2 |
On August 16, 2023, the Company entered into a €200 million variable-rate term loan ("2024 Term Loan"), maturing on August 16, 2024. The Company repaid the 2024 Term Loan during the second quarter of 2024. The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings, with most of these lines of credit being uncommitted. At December 31, 2024, the Company’s foreign subsidiaries had borrowings outstanding of $8.7 million and bank guarantees of $1.6 million. The weighted-average interest rate on these lines of credit during the year were 4.19%, 4.24% and 1.40% in 2024, 2023 and 2022, respectively. The weighted-average interest rate on lines of credit outstanding at December 31, 2024 and 2023 was 3.58% and 4.81%, respectively. Long-term debt as of December 31, 2024 and 2023 was as follows:
| 2024 | 2023
Variable-rate Senior Credit Facility with an average interest rate on U.S. Dollar of 6.48% and Euro of 4.85% at December 31, 2023 | $ | — |  | $ | 247.4 |
Variable-rate Accounts Receivable Facility, with an interest rate of 6.42% at December 31, 2023 | — |  | 67.0 |
Fixed-rate Senior Unsecured Notes(1), originally due to mature on September 1, 2024; redeemed on June 24, 2024 | — |  | 350.0 |
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027, with an interest rate of 2.02% | 155.3 |  | 165.5 |
Variable-rate Term Loan(1), maturing on December 5, 2027, with an interest rate of 5.58% at December 31, 2024 and of 6.58% at December 31, 2023 | 369.6 |  | 399.3 |
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% | 154.8 |  | 154.8 |
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with an interest rate of 4.50% | 398.1 |  | 397.7 |
Fixed-rate Senior Unsecured Notes(1), maturing on April 1, 2032, with an interest rate of 4.13% | 345.1 |  | 343.7 |
Fixed-rate Euro Senior Unsecured Notes(1), maturing on May 23, 2034, with an interest rate of 4.13% | 609.7 |  | — |
Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an interest rate of 2.15% | 10.6 |  | 12.7 |
Other | 10.8 |  | 11.6 |
Total debt | $ | 2,054.0 |  | $ | 2,149.7 |
Less current maturities | 4.3 |  | 359.4 |
Long-term debt | $ | 2,049.7 |  | $ | 1,790.3 |
(1) Net of discount and fees Note 12 - Financing Arrangements (continued) The Company renewed the Accounts Receivable Facility on December 6, 2023. The $100.0 million Accounts Receivable Facility matures on November 30, 2026. 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. These limitations reduced the availability of the Accounts Receivable Facility to $93.9 million at December 31, 2024. As of December 31, 2024, there were no outstanding borrowings under the Accounts Receivable Facility. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The interest rate was 5.67%, 6.42% and 5.01% at December 31, 2024, 2023 and 2022, respectively. On December 5, 2022, the Company entered into the Credit Agreement, which is comprised of a $750.0 million Senior Credit Facility and $400.0 million 2027 Term Loan, both of which mature on December 5, 2027. The Credit Agreement amended and restated the Company's previous revolving credit agreement that was set to mature on June 25, 2024, and replaced a $350.0 million term loan that was set to mature on September 11, 2023. The interest rates under the Credit Agreement are based on SOFR. At December 31, 2024, the Senior Credit Facility had no outstanding borrowings. The Credit Agreement has two financial covenants: a consolidated net leverage ratio and a consolidated interest coverage ratio. On May 23, 2024, the Company issued the 2034 Notes in the aggregate principal amount of €600 million with an interest rate of 4.13%, maturing on May 23, 2034. Proceeds from the 2034 Notes were used for the redemption of the Company's outstanding 2024 Notes in the aggregate principal amount of $350 million, that were due to mature on September 1, 2024, as well as the repayment of other debt outstanding at the time of issuance. On March 28, 2022, the Company issued the 2032 Notes in the aggregate principal amount of $350.0 million with an interest rate of 4.13%, maturing on April 1, 2032. Proceeds from the 2032 Notes were used for general corporate purposes, which included the repayment of borrowings under the Company's previous senior credit facility and Accounts Receivable Facility at the time of issuance. At December 31, 2024, 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 December 31, 2024, outstanding letters of credit totaled $55.7 million, primarily having expiration dates within 12 months. The maturities of long-term debt (including $8.8 million of finance leases) for the years subsequent to December 31, 2024 are as follows:
Year |
2025 | $ | 4.3 |
2026 | 54.1 |
2027 | 513.4 |
2028 | 522.3 |
2029 | 1.6 |
Thereafter | 977.2 |
Interest paid was $113.2 million in 2024, $108.8 million in 2023 and $72.5 million in 2022. This differs from interest expense due to the timing of payments, the amortization of deferred financing fees and interest capitalized of $1.0 million in 2024, $0.2 million in 2023 and $1.0 million in 2022.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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