Impairment and Restructuring Charges

9 Months Ended

Sep. 30, 2025

Note 14 - Impairment and Restructuring Charges

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

For the three months ended September 30, 2025:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total

Severance and related benefit costs	$	2.0	$	0.6	$	—	$	2.6
Exit costs	0.4		—		—		0.4
Total	$	2.4	$	0.6	$	—	$	3.0

For the nine months ended September 30, 2025:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total

Severance and related benefit costs	$	3.5	$	3.1	$	9.4	$	16.0
Exit costs	0.4		0.4		—		0.8
Total	$	3.9	$	3.5	$	9.4	$	16.8

For the three months ended September 30, 2024:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total
Impairment charges	$	0.1	$	—	$	—	$	0.1
Severance and related benefit costs	0.1		1.3		—		1.4
Exit costs	0.9		0.1		—		1.0
Total	$	1.1	$	1.4	$	—	$	2.5

For the nine months ended September 30, 2024:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total
Impairment charges	$	2.0	$	—	$	—	$	2.0
Severance and related benefit costs	0.9		3.8		—		4.7
Exit costs	1.2		0.2		—		1.4
Total	$	4.1	$	4.0	$	—	$	8.1

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

Corporate:

On March 31, 2025, Timken announced that the Company and Tarak B. Mehta, the President and CEO, had mutually agreed that Mr. Mehta would depart from the Company, including resigning as a member of the Company’s Board of Directors (the "Board"), effective immediately. During the three months ended March 31, 2025, the Company recorded severance expense of $9.3 million, plus related taxes, for Mr. Mehta's settlement arrangement and release of claims in connection with his termination without cause. Approximately two-thirds of this amount is expected to be paid in 2025, with the remaining amounts to be paid in 2026 and 2027.

Note 14 - Impairment and Restructuring Charges (continued)

Engineered Bearings:

On February 20, 2025, the Company announced the closure of its bearing manufacturing plant in Hiddenite, North Carolina. This plant was part of the American Roller Bearing Company acquisition completed on January 31, 2023. During the third quarter of 2025, manufacturing operations ceased at Hiddenite, and the Company transferred its operations to other bearing manufacturing facilities in the United States. The closure of this facility is expected to be completed by the end of the fourth quarter of 2025 and is expected to affect approximately 60 employees. The Company expects to incur approximately $5 million to $7 million of pretax costs in total related to this closure. During the three and nine months ended September 30, 2025, the Company recorded severance and related benefits of $0.5 million and $1.4 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $5.0 million as of September 30, 2025, including rationalization costs recorded in cost of products sold.

During the nine months ended September 30, 2024, the Company recorded impairment charges of $2.0 million related to certain engineering-related assets used in the business. Management concluded no further investment would be made in these assets and as a result, reduced the value to zero.

Industrial Motion:

On December 6, 2024, the Company announced a reduction in force at its belts manufacturing facility in Springfield, Missouri. The reorganization of this facility is expected to affect approximately 100 employees and be completed during the first half of 2026. On November 30, 2023, the Company announced the closure of its belts manufacturing facility in Fort Scott, Kansas. During the third quarter of 2025, manufacturing operations ceased at Fort Scott, and the Company transferred its operations to other belts manufacturing facilities. The Company expects to complete the closure by the end of the fourth quarter of 2025. The closure of this facility is expected to affect approximately 125 employees. The Company expects to incur approximately $12 million to $14 million of pretax costs in total related to the closure of the Fort Scott facility and the reorganization of the Springfield facility. During the nine months ended September 30, 2025, the Company recorded severance and related benefit costs of $0.7 million related to these actions. During the three and nine months ended September 30, 2024, the Company recorded severance and related benefits of $0.6 million and $2.1 million, respectively, related to these actions. The Company has incurred cumulative pretax costs related to these actions of $8.5 million as of September 30, 2025, including rationalization costs recorded in cost of products sold.

Consolidated Restructuring Accrual:

The following is a rollforward of the consolidated restructuring accrual for the nine months ended September 30, 2025 and twelve months ended December 31, 2024:


	September 30, 2025		December 31, 2024
Beginning balance, January 1	$	3.7	$	5.8
Expense	16.8		9.9
Payments	(11.9)		(12.0)
Ending balance	$	8.6	$	3.7

On the Consolidated Balance Sheet, $6.6 million of the restructuring accrual at September 30, 2025 was included in other current liabilities, with the remaining $2.0 million included in other non-current liabilities. The restructuring accrual at December 31, 2024 was included in other current liabilities on the Consolidated Balance Sheet