TIMKENSTEEL CORP, 10-Q filed on 5/4/2023
Quarterly Report
v3.23.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2023
Apr. 30, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Trading Symbol TMST  
Title of 12(b) Security Common shares  
Security Exchange Name NYSE  
Entity Registrant Name TIMKENSTEEL CORPORATION  
Entity Central Index Key 0001598428  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   43,875,976
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Document Quarterly Report true  
Document Transition Report false  
Entity Incorporation, State or Country Code OH  
Entity Address, Address Line One 1835 Dueber Avenue SW  
Entity Address, City or Town Canton  
Entity Address, State or Province OH  
City Area Code 330  
Local Phone Number 471.7000  
Entity Address, Postal Zip Code 44706  
Entity Tax Identification Number 46-4024951  
Entity File Number 1-36313  
v3.23.1
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Statement [Abstract]    
Net sales $ 323.5 $ 352.0
Cost of products sold 283.1 292.0
Gross Profit 40.4 60.0
Selling, general and administrative expenses 21.0 18.5
Restructuring charges 0.0 0.4
Loss (gain) on sale or disposal of assets, net 0.1 0.1
Interest (income) expense, net (1.5) 1.2
Loss on extinguishment of debt 11.4 17.0
Other (income) expense, net (8.8) (15.2)
Income (Loss) Before Income Taxes 18.2 38.0
Provision (benefit) for income taxes 3.8 0.9
Net Income (Loss) $ 14.4 $ 37.1
Per Share Data:    
Basic earnings (loss) per share $ 0.33 $ 0.80
Diluted earnings (loss) per share $ 0.30 $ 0.70
v3.23.1
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 14.4 $ 37.1
Other comprehensive income (loss), benefit (provision) for incomes taxes of $(0.1) million and $0.1 million for the three months ended March 31, 2023 and 2022    
Foreign currency translation adjustments (0.5) (0.8)
Pension and postretirement liability adjustments (0.1) (1.1)
Other comprehensive income (loss), net of tax (0.6) (1.9)
Comprehensive Income (Loss), net of tax $ 13.8 $ 35.2
v3.23.1
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]    
Other comprehensive income (loss), benefit (provision) for income tax $ (0.1) $ 0.1
v3.23.1
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 227.4 $ 257.2
Accounts receivable, net of allowances (2023 - $1.8 million; 2022 - $1.0 million) 127.1 79.4
Inventories, net 244.7 192.4
Deferred charges and prepaid expenses 4.6 6.4
Other current assets 10.9 21.2
Total Current Assets 614.7 556.6
Property, plant and equipment, net 482.8 486.1
Operating lease right-of-use assets 12.3 12.5
Pension assets 18.7 19.4
Intangible assets, net 4.4 5.0
Other non-current assets 2.4 2.4
Total Assets 1,135.3 1,082.0
Current Liabilities    
Accounts payable 173.3 113.2
Salaries, wages and benefits 16.9 21.2
Accrued pension and postretirement costs 2.0 2.0
Current operating lease liabilities 5.9 6.0
Current convertible notes, net 13.1 20.4
Other current liabilities 19.8 23.9
Total Current Liabilities 231.0 186.7
Non-Current Liabilities    
Credit Agreement 0.0 0.0
Non-current operating lease liabilities 6.3 6.5
Accrued pension and postretirement costs 165.6 162.9
Deferred income taxes 26.6 25.9
Other non-current liabilities 14.4 13.5
Total Liabilities 443.9 395.5
Shareholders’ Equity    
Preferred shares, without par value; authorized 10.0 million shares, none issued 0.0 0.0
Common shares, without par value; authorized 200.0 million shares issued 2023 - 47.1 million shares and 2022 - 47.1 million shares 0.0 0.0
Additional paid-in capital 839.5 847.0
Retained deficit (108.7) (123.1)
Treasury shares - 2023 - 3.1 million; 2022 - 3.0 million (53.5) (52.1)
Accumulated other comprehensive income (loss) 14.1 14.7
Total Shareholders' Equity 691.4 686.5
Total Liabilities and Shareholders’ Equity $ 1,135.3 $ 1,082.0
v3.23.1
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Allowances for accounts receivable $ 1.8 $ 1.0
Preferred shares, authorized (in shares) 10,000,000.0 10,000,000.0
Preferred shares, issued (in shares) 0 0
Common shares, authorized (in shares) 200,000,000.0 200,000,000.0
Common shares, issued (in shares) 47,100,000 47,100,000
Treasury shares (in shares) 3,100,000 0.0000030
v3.23.1
Consolidated Statements of Shareholder's Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Shares
Additional Paid-in Capital
Retained Deficit
Treasury Shares
Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2021 $ 664.6   $ 832.1 $ (188.2)   $ 20.7
Beginning balance (in shares) at Dec. 31, 2021   46,268,855        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 37.1     37.1    
Other comprehensive income (loss) (1.9)         (1.9)
Stock-based compensation expense 2.1   2.1      
Stock-based compensation expense (in shares)   298,648        
Stock option activity 6.3   6.3      
Stock option activity (in shares)   406,750        
Issuance of treasury shares (3.4)       $ (3.4)  
Issuance of treasury shares (in shares)   169,816        
Shares surrendered for taxes (1.6)   (0.2)   (1.4)  
Shares surrendered for taxes (in shares)   (91,853)        
Ending balance at Mar. 31, 2022 703.2   840.3 (151.1) (4.8) 18.8
Ending balance (in shares) at Mar. 31, 2022   46,712,584        
Beginning balance at Dec. 31, 2022 686.5   847.0 (123.1) 52.1 14.7
Beginning balance (in shares) at Dec. 31, 2022   44,064,891        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 14.4     14.4    
Other comprehensive income (loss) (0.6)         (0.6)
Stock-based compensation expense 2.6   2.6      
Stock-based compensation expense (in shares)   0        
Stock option activity 1.3   1.3      
Stock option activity (in shares)   101,130        
Purchase of treasury shares (9.4)       (9.4)  
Purchase of treasury shares (in Shares)   (514,086)        
Issuance of treasury shares     (11.4)   11.4  
Issuance of treasury shares (in shares)   555,062        
Shares surrendered for taxes (3.4)   0.0   (3.4)  
Shares surrendered for taxes (in shares)   (176,720)        
Ending balance at Mar. 31, 2023 $ 691.4   $ 839.5 $ (108.7) $ (53.5) $ 14.1
Ending balance (in shares) at Mar. 31, 2023   44,030,277        
v3.23.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Operating Activities    
Net income (loss) $ 14.4 $ 37.1
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:    
Depreciation and amortization 14.5 14.6
Amortization of deferred financing fees 0.1 0.2
Loss on extinguishment of debt 11.4 17.0
Loss (gain) on sale or disposal of assets, net 0.1 0.1
Deferred income taxes 0.7 (0.1)
Stock-based compensation expense 2.6 2.1
Pension and postretirement (benefit) expense, net 3.8 (10.7)
Changes in operating assets and liabilities:    
Accounts receivable, net (47.5) (34.4)
Inventories, net (52.0) (19.0)
Accounts payable 63.7 28.3
Other accrued expenses (12.8) (20.1)
Pension and postretirement contributions and payments (1.5) (3.7)
Deferred charges and prepaid expenses 1.8 0.3
Other, net 10.5 1.6
Net Cash Provided (Used) by Operating Activities 9.8 13.3
Investing Activities    
Capital expenditures (10.6) (6.5)
Proceeds from disposals of property, plant and equipment 1.5 0.0
Net Cash Provided (Used) by Investing Activities (9.1) (6.5)
Financing Activities    
Purchase of treasury shares (9.4) (3.4)
Proceeds from exercise of stock options 1.3 6.3
Shares surrendered for employee taxes on stock compensation (3.4) (1.6)
Repayments on convertible notes (18.7) (26.8)
Net Cash Provided (Used) by Financing Activities (30.2) (25.5)
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash (29.5) (18.7)
Cash, cash equivalents, and restricted cash at beginning of period 257.8 259.6
Cash, Cash Equivalents, and Restricted Cash at End of Period $ 228.3 $ 240.9
v3.23.1
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2023
Mar. 31, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]    
Cash and cash equivalents $ 227.4 $ 239.9
Restricted cash reported in other current assets 0.9 1.0
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 228.3 $ 240.9
v3.23.1
Basis of Presentation
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Note 1 - Basis of Presentation

The accompanying unaudited Consolidated Financial Statements have been prepared by TimkenSteel Corporation (the “Company” or “TimkenSteel”) in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by 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 TimkenSteel’s audited Consolidated Financial Statements and Notes included in its Annual Report on Form 10-K for the year ended December 31, 2022.

Certain items previously reported in specific financial statement captions have been reclassified to conform with current year presentation.
v3.23.1
Recent Accounting Pronouncements
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Recent Accounting Pronouncements

Note 2 - Recent Accounting Pronouncements

Adoption of New Accounting Standards

The Company did not adopt any Accounting Standard Updates (“ASU”) in the first quarter of 2023. Additionally, there are no current ASUs issued, but not adopted, that are expected to have an impact on the Company.

Legislation related to the COVID-19 Pandemic

Due to a provision in the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Company was able to defer the employer share of Social Security payroll taxes for a specified time during 2020. During the year ended December 31, 2020, the Company deferred $6.4 million in cash payments and recorded reserves for such deferred payroll taxes in salaries, wages and benefits on the Consolidated Balance Sheets, to be paid in two equal installments. The first installment in the amount of $3.2 million was paid during the fourth quarter of 2021. The second installment was paid during the fourth quarter of 2022.

The CARES Act also provided for an employee retention credit (“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes. The Company qualified for the tax credit in the second and third quarters of 2020 and accrued a benefit of $2.3 million in the fourth quarter of 2020 related to the Employee Retention Credit in other (income) expense, net on the Consolidated Statements of Operations. The Company filed for this credit in the second quarter of 2021 and received a portion of the proceeds from the Internal Revenue Service ("IRS") in the amount of $0.5 million during the fourth quarter of 2021. The Company received the remaining $1.8 million of cash proceeds in the first quarter of 2022.
v3.23.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3 - Revenue Recognition

The following table provides the major sources of revenue by end-market sector for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Industrial

 

$

143.7

 

 

$

175.0

 

Mobile

 

 

127.8

 

 

 

144.1

 

Energy

 

 

46.2

 

 

 

25.0

 

Other (1)

 

 

5.8

 

 

 

7.9

 

Total Net Sales

 

$

323.5

 

 

$

352.0

 

(1) “Other” sales by end-market sector relates to the Company’s scrap sales.

The following table provides the major sources of revenue by product type for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Bar

 

$

218.1

 

 

$

236.4

 

Tube

 

 

45.7

 

 

 

46.5

 

Manufactured components

 

 

53.9

 

 

 

61.2

 

Other (2)

 

 

5.8

 

 

 

7.9

 

Total Net Sales

 

$

323.5

 

 

$

352.0

 

(2) “Other” sales by product type relates to the Company’s scrap sales.

 

Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods at a future point in time. Contract liabilities are primarily related to deferred revenue resulting from any cash payments received in advance from customers and are included in other current liabilities on the Consolidated Balance Sheets. As of March 31, 2023, contract liabilities totaled $1.8 million and were less than $0.1 million as of March 31, 2022.

v3.23.1
Restructuring Charges
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Charges

Note 4 - Restructuring Charges

 

The Company did not have restructuring charges for the three months ended March 31, 2023. Restructuring charges for the three months ended March 31, 2022 were $0.4 million related to severance and employee-related benefits as a result of organizational changes.

TimkenSteel recorded reserves for such restructuring charges as other current liabilities on the Consolidated Balance Sheets. The reserve balance at March 31, 2023 is expected to be substantially used in the next twelve months.

The following is a summary of the restructuring reserve for the three months ended March 31, 2023 and 2022:

 

 

 

 

Balance As of December 31, 2022

 

$

0.5

 

Expenses

 

 

—

 

Payments

 

 

(0.2

)

Balance As of March 31, 2023

 

$

0.3

 

 

Balance at December 31, 2021

 

$

4.7

 

Expenses

 

 

0.4

 

Payments

 

 

(1.0

)

Balance at March 31, 2022

 

$

4.1

 
v3.23.1
Disposition of Non-Core Assets
 3 Months Ended
Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Disposition of Non-Core Assets

Note 5 - Disposition of Non-Core Assets

TimkenSteel Material Services Facility

During the first quarter of 2020, management completed its previously announced plan to close the Company’s TimkenSteel Material Services (“TMS”) facility in Houston and began selling the assets at the facility.

Land and buildings of $4.3 million associated with TMS were classified as assets held for sale on the Consolidated Balance Sheets as of December 31, 2021. All of these assets were sold during the third quarter of 2022. Net cash proceeds of $2.8 million were received and a loss on sale of assets of $1.5 million was recognized on the Consolidated Statements of Operations during 2022.

 

Small-Diameter Seamless Mechanical Tubing Machinery and Equipment

In the third quarter of 2020, TimkenSteel informed customers that as of December 31, 2020 the Company would discontinue the commercial offering of specific small-diameter seamless mechanical tubing products.

In the fourth quarter of 2022, TimkenSteel entered into an agreement to sell the machinery and equipment used in the manufacturing of these specific products. Pursuant to this agreement, TimkenSteel received down payments in the amounts of $1.5 million and $1.7 million in the first quarter of 2023 and fourth quarter of 2022, respectively, which amounts are included in other current liabilities on the Consolidated Balance Sheets as of March 31, 2023. This first quarter of 2023 down payment was also classified as proceeds from disposals of property, plant, and equipment within the investing section of the Consolidated Statements of Cash Flows for the period ended March 31, 2023. The Company expects to receive the remaining $0.2 million in the second quarter of 2023, resulting in an expected gain on disposal of assets of $3.4 million, net of the broker commissions.
v3.23.1
Other (Income) Expense, Net
 3 Months Ended
Mar. 31, 2023
Other Income and Expenses [Abstract]  
Other (Income) Expense, Net

Note 6 – Other (Income) Expense, net

The following table provides the components of other (income) expense, net for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Pension and postretirement non-service benefit (income) loss

 

$

(1.2

)

 

$

(8.7

)

Loss (gain) from remeasurement of benefit plans

 

 

2.2

 

 

$

(6.5

)

Insurance recoveries

 

 

(9.8

)

 

 

—

 

Total other (income) expense, net

 

$

(8.8

)

 

$

(15.2

)

Non-service related pension and other postretirement benefit income, for all years, consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost.

 

The TimkenSteel Corporation Bargaining Unit Pension Plan ("Bargaining Plan"), the TimkenSteel Corporation Retirement Plan (“Salaried Plan”), and the Supplemental Pension Plan of TimkenSteel Corporation ("Supplemental Plan") each have a provision that permits employees to elect to receive their pension benefits in a lump sum upon retirement. In the first quarter of 2023, the cumulative cost of all lump sum payments was projected to exceed the sum of the service and interest cost components of net periodic pension cost for the Salaried Plan. As a result, the Company completed a full remeasurement of its pension obligations and plan assets associated with the Salaried Plan during the first quarter of 2023 and is required to complete a full remeasurement of the plan each quarter for the remainder of 2023.

 

A loss of $2.2 million from the remeasurement of the Salaried Plan was recognized for the three months ended March 31, 2023. This loss was due to $4.6 million decrease in the liability driven by a decrease in the discount rate and lump sum basis losses, partially offset by $2.4 million of investment gains on plan assets.

A total gain of $6.5 million from the remeasurement of the Salaried Plan and Supplemental Plan was recognized in the first quarter of 2022. This gain was primarily driven by a $25.6 million decrease in the liability due to the change in discount rate during the first quarter of 2022, partially offset by $19.1 million of investment losses on plan assets.

For more details on the aforementioned remeasurements, refer to “Note 11 - Retirement and Postretirement Plans.”

During the second half of 2022, the Faircrest melt shop experienced unplanned operational downtime. During the first quarter of 2023, TimkenSteel recognized an insurance recovery of $9.8 million related to the unplanned downtime, of which $0.8 million was received during the first quarter and $9.0 million was received in the second quarter of 2023. The Company anticipates additional insurance recoveries, although the timing and amount of potential recovery are uncertain at this time. For further information related to previous insurance recoveries, refer to "Note 7- Other (Income) Expense, net" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
v3.23.1
Income Tax Provision
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Tax Provision

Note 7 - Income Tax Provision

TimkenSteel’s provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior-year tax liabilities, are recorded during the periods in which they occur.

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Provision (benefit) for incomes taxes

 

$

3.8

 

 

$

0.9

 

Effective tax rate

 

 

21.0

%

 

 

2.4

%

 

Income tax expense for the three months ended March 31, 2023 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate of 21.0% for the three months ended March 31, 2023 was higher than the rate of 2.4% for the three months ended March 31, 2022, primarily related to higher federal taxes due to the reversal of the Company's full valuation allowance as of December 31, 2022, which offset the prior year utilization of loss carryforwards. Additionally, there are limitations on the tax deductibility of the loss on extinguishment of debt on the Convertible Senior Notes due 2025.

v3.23.1
Earnings (Loss) Per Share
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

Note 8 - Earnings (Loss) Per Share

Basic earnings (loss) per share is computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based upon the weighted average number of common shares outstanding plus the dilutive effect of common share equivalents calculated using the treasury stock method or if-converted method. For the Convertible Notes, the Company utilizes the if-converted method to calculate diluted earnings (loss) per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense (including amortization of debt issuance costs) recognized on the Convertible Notes and includes the number of shares potentially issuable related to the Convertible Notes in the weighted average shares outstanding. Treasury shares are excluded from the denominator in calculating both basic and diluted earnings (loss) per share.

Equity-based Awards

Common share equivalents for shares issuable for equity-based awards amounted to 3.5 million shares for the three months ended March 31, 2023. For the three months ended March 31, 2023, 0.5 million shares were excluded from the computation of diluted earnings (loss) per share, primarily related to options with exercise prices above the average market price of our common shares (i.e., “underwater” options), because the effect of their inclusion would have been anti-dilutive. The difference between the remaining 3.0 million shares and 0.9 million shares assumed purchased with potential proceeds for the three months ended March 31, 2023, were included in the denominator of the diluted earnings (loss) per share calculation.

Common share equivalents for shares issuable for equity-based awards amounted to 4.3 million shares for the three months ended March 31, 2022. For the three months ended March 31, 2022, 0.9 million shares were excluded from the computation of diluted earnings (loss) per share, primarily related to options with exercise prices above the average market price of our common shares (i.e., “underwater” options), because the effect of their inclusion would have been anti-dilutive. The difference between the remaining 3.4 million shares and 1.2 million shares assumed purchased with potential proceeds for the three months ended March 31, 2022, were included in the denominator of the diluted earnings (loss) per share calculation.

Convertible Notes

Common share equivalents for shares issuable upon the conversion of outstanding Convertible Notes were included in the computation of diluted earnings (loss) per share for the three months ended March 31, 2023 and 2022 as these shares would be dilutive.

In the first quarter of 2023, TimkenSteel repurchased $7.5 million of outstanding principal related to the Convertible Notes. The repurchase of the Convertible Notes reduced weighted average diluted shares outstanding by approximately 0.1 million shares in the first quarter of 2023. Refer to “Note 10 – Financing Arrangements” for additional information on the Convertible Notes.

The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings (loss) per share for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

Net income (loss), basic

 

$

14.4

 

 

$

37.1

 

Add convertible notes interest

 

 

0.3

 

 

 

0.7

 

Net income (loss), diluted

 

$

14.7

 

 

$

37.8

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

 

44.0

 

 

 

46.4

 

Dilutive effect of stock-based awards

 

 

2.1

 

 

 

2.2

 

Dilutive effect of convertible notes

 

 

2.6

 

 

 

5.2

 

Weighted average shares outstanding, diluted

 

 

48.7

 

 

 

53.8

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

0.33

 

 

$

0.80

 

Diluted earnings (loss) per share

 

$

0.30

 

 

$

0.70

 
v3.23.1
Inventories
 3 Months Ended
Mar. 31, 2023
Inventory Disclosure [Abstract]  
Inventories

Note 9 - Inventories

The components of inventories, net of reserves as of March 31, 2023 and December 31, 2022 were as follows:

 

 

March 31,
2023

 

 

December 31,
2022

 

Manufacturing supplies

 

$

38.2

 

 

$

36.9

 

Raw materials

 

 

31.2

 

 

 

23.9

 

Work in process

 

 

142.0

 

 

 

94.7

 

Finished products

 

 

34.0

 

 

 

37.4

 

Gross inventory

 

 

245.4

 

 

 

192.9

 

Allowance for inventory reserves

 

 

(0.7

)

 

 

(0.5

)

Total inventories, net

 

$

244.7

 

 

$

192.4

 
v3.23.1
Financing Arrangements
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Financing Arrangements

Note 10 - Financing Arrangements

For a detailed discussion of the Company's long-term debt and credit arrangements, refer to “Note 14 - Financing Arrangements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The following table summarizes the current and non-current debt as of March 31, 2023 and December 31, 2022.

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Credit Agreement

 

$

—

 

 

$

—

 

Convertible Senior Notes due 2025

 

 

13.1

 

 

 

20.4

 

Total debt

 

$

13.1

 

 

$

20.4

 

     Less current portion of debt

 

 

13.1

 

 

 

20.4

 

Total non-current portion of debt

 

$

—

 

 

$

—

 

Amended Credit Agreement

On September 30, 2022, TimkenSteel Corporation (the “Company”), as borrower, and certain domestic subsidiaries of the Company, as subsidiary guarantors (the “Subsidiary Guarantors”), entered into a Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto

(collectively, the “Lenders”), which further amends and restates the Company’s existing secured Third Amended and Restated Credit Agreement, dated as of October 15, 2019.

 

As of March 31, 2023, the amount available under the Amended Credit Agreement was $303.3 million, reflective of the Company’s asset borrowing base with no outstanding borrowings. Additionally, the Company is in compliance with all covenants outlined in the Amended Credit Agreement.

 

Convertible Senior Notes due 2025

The principal amount of the Convertible Senior Notes due 2025 upon issuance was $46.0 million. Transaction costs related to the Convertible Senior Notes due 2025 incurred upon issuance were $1.5 million. These costs are amortized to interest expense over the term of the notes. The Convertible Senior Notes due 2025 mature on December 1, 2025. The Convertible Senior Notes due 2025 are convertible at the option of holders in certain circumstances and during certain periods into the Company’s common shares, cash, or a combination thereof, at the Company’s election.

 

The Indenture for the Convertible Senior Notes due 2025 provides that notes will become convertible during a quarter when the share price for 20 trading days during the final 30 trading days of the immediately preceding quarter was greater than 130% of the conversion price. This criterion was met during the first quarter of 2023 and as such the notes can be converted at the option of the holders beginning April 1 through June 30, 2023. Whether the notes will be convertible following such period will depend on if this criterion, or another conversion condition, is met in the future. As such, the Convertible Senior Notes due 2025 are classified as a current liability in the Consolidated Balance Sheets as of March 31, 2023. This criterion was also met as of December 31, 2022. To date, no holders have elected to convert their notes during any optional conversion periods.

 

For details regarding all conversion mechanics and methods of settlement, refer to the Indenture for the Convertible Senior Notes due 2025 filed as an exhibit to a Form 8-K on December 15, 2020 and incorporated by reference in our most recent 10-K filing.

 

In the first quarter of 2023, TimkenSteel repurchased a total of $7.5 million aggregate principal amount of its Convertible Senior Notes Due 2025. Total cash paid to noteholders was $18.7 million. A loss on extinguishment of debt was recognized of $11.4 million, including a charge of $0.2 million for unamortized debt issuance costs related to the portion of debt extinguished, as well as the related transaction costs.

 

In the first quarter of 2022, TimkenSteel repurchased a total of $10.0 million aggregate principal amount of its Convertible Senior Notes Due 2025. Total cash paid to noteholders was $26.8 million. A loss on extinguishment of debt was recognized of $17.0 million, including a charge of $0.2 million for unamortized debt issuance costs related to the portion of debt extinguished, as well as the related transaction costs.

The components of the Convertible Senior Notes due 2025 as of March 31, 2023 and December 31, 2022 were as follows:

 

 

March 31,
2023

 

 

December 31,
2022

 

Principal

 

$

13.3

 

 

$

20.8

 

Less: Debt issuance costs, net of amortization

 

 

(0.2

)

 

 

(0.4

)

Convertible Senior Notes due 2025, net

 

$

13.1

 

 

$

20.4

 

 

The following table sets forth total interest expense recognized related to the Convertible Notes:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Contractual interest expense

 

$

0.3

 

 

$

0.6

 

Amortization of debt issuance costs

 

 

—

 

 

 

0.1

 

Total

 

$

0.3

 

 

$

0.7

 

 

The total cash interest paid for the three months ended March 31, 2023 and 2022 was $0.4 million and $0.4 million, respectively.

 

Fair Value Measurement

The fair value of the Convertible Senior Notes due 2025 was approximately $34.2 million as of March 31, 2023. The fair value of the Convertible Senior Notes due 2025, which falls within Level 2 of the fair value hierarchy as defined by applicable accounting guidance, is based on a valuation model primarily using observable market inputs and requires a recurring fair value measurement on a quarterly basis.

TimkenSteel’s Credit Facility is variable-rate debt. As such, any outstanding carrying value is a reasonable estimate of fair value as interest rates on these borrowings approximate current market rates. This valuation falls within Level 2 of the fair value hierarchy and is based on quoted prices for similar assets and liabilities in active markets that are observable either directly or indirectly. There were no outstanding borrowings on the Credit Facility as of March 31, 2023.

 

Interest (Income) Expense, net

The following table provides the components of interest (income) expense, net for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Interest expense

 

$

0.7

 

 

$

1.3

 

Interest income

 

 

(2.2

)

 

 

(0.1

)

Interest (income) expense, net

 

$

(1.5

)

 

$

1.2

 

Interest income primarily relates to interest earned on cash invested in a money market fund and deposits with financial institutions. As of March 31, 2023, the carrying value of the Company's money market investment was $94.1 million, which approximates the fair value. The Company had no cash invested in a money market fund as of March 31, 2022. The money market fund is a cash equivalent and is included in cash and cash equivalents on the Consolidated Balance Sheets. The fund consists of highly liquid investments with an average maturity of three months or less and falls within Level 1 of the fair value hierarchy as defined by applicable accounting guidance. Additionally as of March 31, 2023, the Company has $116.0 million of cash held in five accounts which generate interest income at a rate similar to the money market fund.

Treasury Shares

On December 20, 2021, TimkenSteel announced that its Board of Directors authorized a share repurchase program under which the Company may repurchase up to $50.0 million of its outstanding common shares. The share repurchase program is intended to return capital to shareholders while also offsetting dilution from annual equity compensation awards. The share repurchase program does not require the Company to acquire any dollar amount or number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice. On November 2, 2022, the Board of Directors authorized an additional $75.0 million share repurchase program. This authorization reflects the continued confidence of the Board and senior leadership in the Company’s ability to generate sustainable through-cycle profitability while maintaining a strong balance sheet and cash flow.

For the three months ended March 31, 2023, the Company repurchased approximately 0.5 million common shares at an aggregate cost of $9.4 million in the open market, which equates to an average repurchase price of $18.20 per share. As of March 31, 2023, the Company had a balance of $63.7 million remaining on its authorized share repurchase program. For the three months ended March 31, 2022, the Company repurchased approximately 0.2 million common shares at an aggregate cost of $3.4 million in the open market, which equates to an average repurchase price of $20.27 per share.

In April 2023, the Company repurchased approximately 0.2 million common shares at an aggregate cost of $3.0 million, which equates to an average repurchase price of $17.80 per share. As of April 30, 2023, the Company had $60.7 million remaining under its authorized share repurchase program.
v3.23.1
Retirement and Postretirement Plans
 3 Months Ended
Mar. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Retirement and Postretirement Plans

Note 11 - Retirement and Postretirement Plans

 

Plan Amendments and Updates

 

Bargaining Plan

 

On October 29, 2021, the United Steelworkers ("USW") Local 1123 voted to ratify a new four-year contract (the “Contract”). The Contract is in effect until September 27, 2025 and resulted in several changes to the Bargaining Plan which increased the pension liability by $14.2 million in 2021. These plan amendments were recognized in other comprehensive income (loss) in 2021 and began to be amortized as part of the pension net periodic benefit cost in the first quarter of 2022. The primary change that drove the increase in the pension liability was the addition of a full lump sum form of payment option for participants commencing benefits on or after January 1, 2022. In addition, the plan is now closed to new entrants effective January 1, 2022.

The timing and amount of future required pension contributions is significantly affected by asset returns and actuarial assumptions. Plan asset losses in 2022, combined with current actuarial assumptions, have resulted in potentially accelerated timing of future required pension contributions to as early as 2024. Required future pension contribution timing and amounts are subject to significant change based on future investment performance, Company estimates and actuarial assumptions, as well as current funding laws.

 

Salaried Plan

 

During the fourth quarter of 2021, termination of the Salaried Plan was approved by the TimkenSteel Board of Directors. Participants were notified in January 2022 and the plan was terminated effective March 31, 2022, subject to regulatory approval. The purchase of an irrevocable annuity contract from an insurance company is expected to occur in 2023, after which time the insurance company selected will be responsible for all participant benefit payments.

 

Pension Net Periodic Benefit Cost (Income)

The components of net periodic benefit cost (income) for the three months ended March 31, 2023 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

2.4

 

 

$

0.2

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2.6

 

 

$

0.2

 

Interest cost

 

 

6.5

 

 

 

1.7

 

 

 

0.2

 

 

 

0.5

 

 

 

—

 

 

 

8.9

 

 

 

1.2

 

Expected return on plan assets

 

 

(6.7

)

 

 

(1.9

)

 

 

—

 

 

 

(0.6

)

 

 

—

 

 

 

(9.2

)

 

 

(0.9

)

Amortization of prior service cost

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

(1.5

)

Net remeasurement losses (gains)

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.2

 

 

 

—

 

Net Periodic Benefit Cost (Income)

 

$

2.5

 

 

$

2.2

 

 

$

0.2

 

 

$

(0.1

)

 

$

—

 

 

$

4.8

 

 

$

(1.0

)

The components of net periodic benefit cost (income) for the three months ended March 31, 2022 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

4.1

 

 

$

0.1

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

4.2

 

 

$

0.3

 

Interest cost

 

 

7.5

 

 

 

1.4

 

 

 

0.1

 

 

 

0.4

 

 

 

—

 

 

 

9.4

 

 

 

0.8

 

Expected return on plan assets

 

 

(14.4

)

 

 

(1.5

)

 

 

—

 

 

 

(0.9

)

 

 

—

 

 

 

(16.8

)

 

 

(0.9

)

Amortization of prior service cost

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

(1.5

)

Net remeasurement losses (gains)

 

 

—

 

 

 

(4.0

)

 

 

(2.5

)

 

 

—

 

 

 

—

 

 

 

(6.5

)

 

 

—

 

Net Periodic Benefit Cost (Income)

 

$

(2.5

)

 

$

(4.0

)

 

$

(2.4

)

 

$

(0.5

)

 

$

—

 

 

$

(9.4

)

 

$

(1.3

)

 

The Bargaining Plan, Salaried Plan, and Supplemental Plan each have a provision that permits employees to elect to receive their pension benefits in a lump sum upon retirement. The Company's accounting policy is to recognize settlements during the quarter in which it is projected that the costs of all settlements during the year will be greater than the sum of the service cost and intertest cost components.

 

In the first quarter of 2023, the cumulative cost of all lump sum payments during 2023 was projected to exceed the sum of the service and interest cost components of net periodic pension cost for the Salaried Plan. As a result, the Company completed a full remeasurement of its pension obligations and plan assets associated with the Salaried Plan during the first quarter of 2023 and is required to complete a full remeasurement of the plan each quarter for the remainder of 2023.

 

In the first quarter of 2022, the cumulative cost of all lump sum payments exceeded the sum of the service cost and interest cost components of net periodic pension cost for the Supplemental Plan. Additionally, the cumulative cost of all lump sum payments was projected to exceed the sum of the service and interest cost components of net periodic pension cost in 2022 for the Salaried Plan. As a result, the Company completed a full remeasurement of its pension obligations and plan assets associated with the Supplemental Plan and Salaried Plan during the first quarter of 2022.
v3.23.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 12 – Stock-Based Compensation

During the three months ended March 31, 2023, the Board of Directors granted 314,194 time-based restricted stock units and 211,639 performance-based restricted stock units, which relates to the annual grant to our employees. During the three months ended March 31, 2022, the Board of Directors granted 292,773 time-based restricted stock units and 178,467 performance-based restricted stock units, which relates to the annual grant to our employees.

Time-based restricted stock units are issued with the fair value equal to the closing market price of TimkenSteel common shares on the date of grant. These restricted stock units do not have any performance conditions for vesting. Expense is recognized over the service period, adjusted for any forfeitures that should occur during the vesting period. The fair value of the restricted stock units granted during the three months ended March 31, 2023 was $18.85 per share.

Performance-based restricted stock units issued in 2023 vest based on achievement of a total shareholder return (“TSR”) metric. The TSR metric is considered a market condition, which requires TimkenSteel to reflect it in the fair value on grant date using an advanced option-pricing model. The fair value of each performance share was therefore determined using a Monte Carlo valuation model, a generally accepted lattice pricing model under ASC 718 – Stock-based Compensation. The Monte Carlo valuation model, among other factors, uses commonly-accepted economic theory underlying all valuation models, estimates fair value using simulations of future share prices based on stock price behavior and considers the correlation of peer company returns in determining fair value. The fair value of the performance-based restricted stock units granted during the three months ended March 31, 2023 was $23.13 per share.

TimkenSteel recognized stock-based compensation expense of $2.6 million for the three months ended March 31, 2023, compared to $2.1 million for the three months ended March 31, 2022. Future stock-based compensation expense related to the unvested portion of all awards is approximately $20.0 million. The future expense is expected to be recognized over the remaining vesting periods through 2026.

v3.23.1
Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Mar. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 13 - Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022 by component were as follows:

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability Adjustments

 

 

Total

 

Balance As of December 31, 2022

 

$

(6.8

)

 

$

21.5

 

 

$

14.7

 

Other comprehensive income (loss) before reclassifications, before income tax

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

Amounts reclassified from accumulated other comprehensive income (loss), before income tax

 

 

—

 

 

 

(1.2

)

 

 

(1.2

)

Amounts deferred to accumulated other comprehensive income
   (loss), before income tax

 

 

—

 

 

 

1.2

 

 

 

1.2

 

Tax effect

 

 

—

 

 

 

(0.1

)

 

 

(0.1

)

Net current period other comprehensive income (loss), net of income taxes

 

 

(0.5

)

 

 

(0.1

)

 

 

(0.6

)

Balance As of March 31, 2023

 

$

(7.3

)

 

$

21.4

 

 

$

14.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability Adjustments

 

 

Total

 

Balance as of December 31, 2021

 

$

(5.1

)

 

$

25.8

 

 

$

20.7

 

Other comprehensive income (loss) before reclassifications, before income tax

 

 

(0.8

)

 

 

—

 

 

 

(0.8

)

Amounts reclassified from accumulated other comprehensive income (loss), before income tax

 

 

—

 

 

 

(1.2

)

 

 

(1.2

)

Amounts deferred to accumulated other comprehensive income
   (loss), before income tax

 

 

—

 

 

 

—

 

 

 

—

 

Tax effect

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Net current period other comprehensive income (loss), net of income taxes

 

 

(0.8

)

 

 

(1.1

)

 

 

(1.9

)

Balance as of March 31, 2022

 

$

(5.9

)

 

$

24.7

 

 

$

18.8

 

The amount reclassified from accumulated other comprehensive income (loss) in the three months ended March 31, 2023 and 2022 for the pension and postretirement liability adjustment was included in other (income) expense, net in the unaudited Consolidated Statements of Operations.
v3.23.1
Contingencies
 3 Months Ended
Mar. 31, 2023
Loss Contingency Accrual, Disclosures [Abstract]  
Contingencies

Note 14 – Contingencies

TimkenSteel has a number of loss exposures incurred in the ordinary course of business, such as environmental claims, product warranty claims, employee-related matters, and other litigation. Establishing loss reserves for these matters requires management’s estimate and judgment regarding risk exposure and ultimate liability or realization. These loss reserves are reviewed periodically and adjustments are made to reflect the most recent facts and circumstances. Accruals related to environmental claims represent management’s best estimate of the fees and costs associated with these claims. Although it is not possible to predict with certainty the outcome of such claims, management believes that their ultimate dispositions should not have a material adverse effect on our financial position, cash flows or results of operations. As of March 31, 2023 and December 31, 2022, TimkenSteel had a $1.4 million and a $1.1 million contingency reserve, respectively, related to loss exposures incurred in the ordinary course of business.
v3.23.1
Recent Accounting Pronouncements (Policies)
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Adoption of New Accounting Standards

Adoption of New Accounting Standards

The Company did not adopt any Accounting Standard Updates (“ASU”) in the first quarter of 2023. Additionally, there are no current ASUs issued, but not adopted, that are expected to have an impact on the Company.

Legislation related to the COVID-19 Pandemic

Due to a provision in the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Company was able to defer the employer share of Social Security payroll taxes for a specified time during 2020. During the year ended December 31, 2020, the Company deferred $6.4 million in cash payments and recorded reserves for such deferred payroll taxes in salaries, wages and benefits on the Consolidated Balance Sheets, to be paid in two equal installments. The first installment in the amount of $3.2 million was paid during the fourth quarter of 2021. The second installment was paid during the fourth quarter of 2022.

The CARES Act also provided for an employee retention credit (“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes. The Company qualified for the tax credit in the second and third quarters of 2020 and accrued a benefit of $2.3 million in the fourth quarter of 2020 related to the Employee Retention Credit in other (income) expense, net on the Consolidated Statements of Operations. The Company filed for this credit in the second quarter of 2021 and received a portion of the proceeds from the Internal Revenue Service ("IRS") in the amount of $0.5 million during the fourth quarter of 2021. The Company received the remaining $1.8 million of cash proceeds in the first quarter of 2022.
v3.23.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue

The following table provides the major sources of revenue by end-market sector for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Industrial

 

$

143.7

 

 

$

175.0

 

Mobile

 

 

127.8

 

 

 

144.1

 

Energy

 

 

46.2

 

 

 

25.0

 

Other (1)

 

 

5.8

 

 

 

7.9

 

Total Net Sales

 

$

323.5

 

 

$

352.0

 

(1) “Other” sales by end-market sector relates to the Company’s scrap sales.

The following table provides the major sources of revenue by product type for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Bar

 

$

218.1

 

 

$

236.4

 

Tube

 

 

45.7

 

 

 

46.5

 

Manufactured components

 

 

53.9

 

 

 

61.2

 

Other (2)

 

 

5.8

 

 

 

7.9

 

Total Net Sales

 

$

323.5

 

 

$

352.0

 

(2) “Other” sales by product type relates to the Company’s scrap sales.
v3.23.1
Restructuring Charges (Tables)
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Reserve

The following is a summary of the restructuring reserve for the three months ended March 31, 2023 and 2022:

 

 

 

 

Balance As of December 31, 2022

 

$

0.5

 

Expenses

 

 

—

 

Payments

 

 

(0.2

)

Balance As of March 31, 2023

 

$

0.3

 

 

Balance at December 31, 2021

 

$

4.7

 

Expenses

 

 

0.4

 

Payments

 

 

(1.0

)

Balance at March 31, 2022

 

$

4.1

 
v3.23.1
Other (Income) Expense, Net (Tables)
 3 Months Ended
Mar. 31, 2023
Other Income and Expenses [Abstract]  
Schedule of Other (Income) Expense, Net

The following table provides the components of other (income) expense, net for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Pension and postretirement non-service benefit (income) loss

 

$

(1.2

)

 

$

(8.7

)

Loss (gain) from remeasurement of benefit plans

 

 

2.2

 

 

$

(6.5

)

Insurance recoveries

 

 

(9.8

)

 

 

—

 

Total other (income) expense, net

 

$

(8.8

)

 

$

(15.2

)
v3.23.1
Income Tax Provision (Tables)
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of (Benefit) Provision for Income Taxes

TimkenSteel’s provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior-year tax liabilities, are recorded during the periods in which they occur.

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Provision (benefit) for incomes taxes

 

$

3.8

 

 

$

0.9

 

Effective tax rate

 

 

21.0

%

 

 

2.4

%

 
v3.23.1
Earnings (Loss) Per Share (Tables)
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings (loss) per share for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

Net income (loss), basic

 

$

14.4

 

 

$

37.1

 

Add convertible notes interest

 

 

0.3

 

 

 

0.7

 

Net income (loss), diluted

 

$

14.7

 

 

$

37.8

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

 

44.0

 

 

 

46.4

 

Dilutive effect of stock-based awards

 

 

2.1

 

 

 

2.2

 

Dilutive effect of convertible notes

 

 

2.6

 

 

 

5.2

 

Weighted average shares outstanding, diluted

 

 

48.7

 

 

 

53.8

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

0.33

 

 

$

0.80

 

Diluted earnings (loss) per share

 

$

0.30

 

 

$

0.70

 
v3.23.1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2023
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory

The components of inventories, net of reserves as of March 31, 2023 and December 31, 2022 were as follows:

 

 

March 31,
2023

 

 

December 31,
2022

 

Manufacturing supplies

 

$

38.2

 

 

$

36.9

 

Raw materials

 

 

31.2

 

 

 

23.9

 

Work in process

 

 

142.0

 

 

 

94.7

 

Finished products

 

 

34.0

 

 

 

37.4

 

Gross inventory

 

 

245.4

 

 

 

192.9

 

Allowance for inventory reserves

 

 

(0.7

)

 

 

(0.5

)

Total inventories, net

 

$

244.7

 

 

$

192.4

 
v3.23.1
Financing Arrangements (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Instrument [Line Items]  
Summary of Current and Non-current Debt

The following table summarizes the current and non-current debt as of March 31, 2023 and December 31, 2022.

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Credit Agreement

 

$

—

 

 

$

—

 

Convertible Senior Notes due 2025

 

 

13.1

 

 

 

20.4

 

Total debt

 

$

13.1

 

 

$

20.4

 

     Less current portion of debt

 

 

13.1

 

 

 

20.4

 

Total non-current portion of debt

 

$

—

 

 

$

—

 
Schedule of Interest Expense

The following table provides the components of interest (income) expense, net for the three months ended March 31, 2023 and 2022:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Interest expense

 

$

0.7

 

 

$

1.3

 

Interest income

 

 

(2.2

)

 

 

(0.1

)

Interest (income) expense, net

 

$

(1.5

)

 

$

1.2

 
Convertible Senior Notes due 2025  
Debt Instrument [Line Items]  
Schedule of Components of Convertible Notes

The components of the Convertible Senior Notes due 2025 as of March 31, 2023 and December 31, 2022 were as follows:

 

 

March 31,
2023

 

 

December 31,
2022

 

Principal

 

$

13.3

 

 

$

20.8

 

Less: Debt issuance costs, net of amortization

 

 

(0.2

)

 

 

(0.4

)

Convertible Senior Notes due 2025, net

 

$

13.1

 

 

$

20.4

 
Convertible Notes  
Debt Instrument [Line Items]  
Schedule of Interest Expense

The following table sets forth total interest expense recognized related to the Convertible Notes:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Contractual interest expense

 

$

0.3

 

 

$

0.6

 

Amortization of debt issuance costs

 

 

—

 

 

 

0.1

 

Total

 

$

0.3

 

 

$

0.7

 

 

The total cash interest paid for the three months ended March 31, 2023 and 2022 was $0.4 million and $0.4 million, respectively.
v3.23.1
Retirement and Postretirement Plans (Tables)
 3 Months Ended
Mar. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Schedule of Defined Benefit Plans Disclosures

The components of net periodic benefit cost (income) for the three months ended March 31, 2023 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

2.4

 

 

$

0.2

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2.6

 

 

$

0.2

 

Interest cost

 

 

6.5

 

 

 

1.7

 

 

 

0.2

 

 

 

0.5

 

 

 

—

 

 

 

8.9

 

 

 

1.2

 

Expected return on plan assets

 

 

(6.7

)

 

 

(1.9

)

 

 

—

 

 

 

(0.6

)

 

 

—

 

 

 

(9.2

)

 

 

(0.9

)

Amortization of prior service cost

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

(1.5

)

Net remeasurement losses (gains)

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.2

 

 

 

—

 

Net Periodic Benefit Cost (Income)

 

$

2.5

 

 

$

2.2

 

 

$

0.2

 

 

$

(0.1

)

 

$

—

 

 

$

4.8

 

 

$

(1.0

)

The components of net periodic benefit cost (income) for the three months ended March 31, 2022 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

4.1

 

 

$

0.1

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

4.2

 

 

$

0.3

 

Interest cost

 

 

7.5

 

 

 

1.4

 

 

 

0.1

 

 

 

0.4

 

 

 

—

 

 

 

9.4

 

 

 

0.8

 

Expected return on plan assets

 

 

(14.4

)

 

 

(1.5

)

 

 

—

 

 

 

(0.9

)

 

 

—

 

 

 

(16.8

)

 

 

(0.9

)

Amortization of prior service cost

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

(1.5

)

Net remeasurement losses (gains)

 

 

—

 

 

 

(4.0

)

 

 

(2.5

)

 

 

—

 

 

 

—

 

 

 

(6.5

)

 

 

—

 

Net Periodic Benefit Cost (Income)

 

$

(2.5

)

 

$

(4.0

)

 

$

(2.4

)

 

$

(0.5

)

 

$

—

 

 

$

(9.4

)

 

$

(1.3

)
v3.23.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Mar. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022 by component were as follows:

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability Adjustments

 

 

Total

 

Balance As of December 31, 2022

 

$

(6.8

)

 

$

21.5

 

 

$

14.7

 

Other comprehensive income (loss) before reclassifications, before income tax

 

 

(0.5

)

 

 

—

 

 

 

(0.5

)

Amounts reclassified from accumulated other comprehensive income (loss), before income tax

 

 

—

 

 

 

(1.2

)

 

 

(1.2

)

Amounts deferred to accumulated other comprehensive income
   (loss), before income tax

 

 

—

 

 

 

1.2

 

 

 

1.2

 

Tax effect

 

 

—

 

 

 

(0.1

)

 

 

(0.1

)

Net current period other comprehensive income (loss), net of income taxes

 

 

(0.5

)

 

 

(0.1

)

 

 

(0.6

)

Balance As of March 31, 2023

 

$

(7.3

)

 

$

21.4

 

 

$

14.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability Adjustments

 

 

Total

 

Balance as of December 31, 2021

 

$

(5.1

)

 

$

25.8

 

 

$

20.7

 

Other comprehensive income (loss) before reclassifications, before income tax

 

 

(0.8

)

 

 

—

 

 

 

(0.8

)

Amounts reclassified from accumulated other comprehensive income (loss), before income tax

 

 

—

 

 

 

(1.2

)

 

 

(1.2

)

Amounts deferred to accumulated other comprehensive income
   (loss), before income tax

 

 

—

 

 

 

—

 

 

 

—

 

Tax effect

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Net current period other comprehensive income (loss), net of income taxes

 

 

(0.8

)

 

 

(1.1

)

 

 

(1.9

)

Balance as of March 31, 2022

 

$

(5.9

)

 

$

24.7

 

 

$

18.8

 
v3.23.1
Recent Accounting Pronouncements - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]          
Retained deficit     $ 108.7 $ 123.1  
Proceeds from issuance of internal revenue service   $ 0.5      
Cash proceeds from issuance of remaining internal revenue service $ 1.8        
Coronavirus Aid, Relief, and Economic Security Act          
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]          
Deferred cash payments of payroll taxes   $ 3.2     $ 6.4
Accrued benefit         $ 2.3
v3.23.1
Revenue Recognition (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]    
Net sales $ 323.5 $ 352.0
Bar    
Disaggregation of Revenue [Line Items]    
Net sales 218.1 236.4
Tube    
Disaggregation of Revenue [Line Items]    
Net sales 45.7 46.5
Manufactured Components    
Disaggregation of Revenue [Line Items]    
Net sales 53.9 61.2
Other    
Disaggregation of Revenue [Line Items]    
Net sales [1] 5.8 7.9
Industrial    
Disaggregation of Revenue [Line Items]    
Net sales 143.7 175.0
Mobile    
Disaggregation of Revenue [Line Items]    
Net sales 127.8 144.1
Energy    
Disaggregation of Revenue [Line Items]    
Net sales 46.2 25.0
Other    
Disaggregation of Revenue [Line Items]    
Net sales [2] $ 5.8 $ 7.9
[1] “Other” sales by product type relates to the Company’s scrap sales.
[2] “Other” sales by end-market sector relates to the Company’s scrap sales.
v3.23.1
Revenue Recognition - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]    
Contract liabilities totalated $ 1.8 $ 0.1
v3.23.1
Restructuring Charges - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Restructuring and Related Activities [Abstract]    
Restructuring charges $ 0.0 $ 0.4
Restructuring charges related to severance and employee-related benefits   $ 0.4
v3.23.1
Restructuring Charges - Summary of Restructuring Reserve (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Restructuring Reserve [Roll Forward]    
Beginning balance $ 0.5 $ 4.7
Expenses 0.0 0.4
Payments (0.2) (1.0)
Ending balance $ 0.3 $ 4.1
v3.23.1
Disposition of Non-Core Assets (Details) - USD ($)
$ in Millions
 3 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]          
Proceeds from sale, down payments   $ 1.5   $ 0.0  
Disposal Group, Held-for-sale, Not Discontinued Operation          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]          
Assets held for sale         $ 4.3
Net cash proceeds     $ 2.8    
Loss on sale of assets     1.5    
Disposal Group, Held-for-sale, Not Discontinued Operation | Machinery and Equipment          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]          
Gain (loss) on sale/disposal net of the broker commissions   3.4      
Proceeds from sale, down payments   $ 1.5 $ 1.7    
Expected date of additional payment, description.   The Company expects to receive the remaining $0.2 million in the second quarter of 2023, resulting in an expected gain on disposal of assets of $3.4 million, net of the broker commissions.      
Disposal Group, Held-for-sale, Not Discontinued Operation | Forecast | Machinery and Equipment          
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]          
Expected additional payment on disposal $ 0.2        
v3.23.1
Other (Income) Expense, Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Other Income and Expenses [Abstract]    
Pension and postretirement non-service benefit (income) loss $ (1.2) $ (8.7)
Loss (gain) from remeasurement of benefit plans 2.2 (6.5)
Insurance recoveries (9.8) 0.0
Total other (income) expense, net $ (8.8) $ (15.2)
v3.23.1
Other (Income) Expense, Net - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Mar. 31, 2022
Statutory Accounting Practices [Line Items]      
Loss (gain) from remeasurement of benefit plans   $ 2.2 $ (6.5)
Investment losses on plan assets   (4.6) (19.1)
Investment gains on plan assets   2.4 25.6
Gain on insurance proceeds received   9.8 $ 0.0
Total recovery   $ 0.8  
Forecast      
Statutory Accounting Practices [Line Items]      
Total recovery $ 9.0    
v3.23.1
Income Tax Provision - Schedule of (Benefit) Provision for Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]    
Provision (benefit) for income taxes $ 3.8 $ 0.9
Effective tax rate 21.00% 2.40%
v3.23.1
Income Tax Provision - Narrative (Details)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]    
Effective tax rate 21.00% 2.40%
v3.23.1
Earnings (Loss) Per Share - Additional Information (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Shares assumed purchased 3.0 3.4
Shares assumed purchased with potential proceeds 0.9 1.2
Convertible Senior Notes due 2025    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share 0.1  
Convertible notes repurchased outstanding principal amount $ 7.5  
Debt Instrument, Face Amount $ 7.5 $ 10.0
Equity-based Awards [Member]    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share 3.5 4.3
Underwater Options [Member]    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share 0.5 0.9
v3.23.1
Earnings (Loss) Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Numerator:    
Net income (loss), basic $ 14.4 $ 37.1
Add convertible notes interest 0.3 0.7
Net income (loss), diluted $ 14.7 $ 37.8
Denominator:    
Weighted average shares outstanding, basic (in shares) 44.0 46.4
Dilutive effect of stock-based awards (in shares) 2.1 2.2
Dilutive effect of convertible notes (in shares) 2.6 5.2
Weighted average shares outstanding, diluted (in shares) 48.7 53.8
Basic earnings (loss) per share $ 0.33 $ 0.80
Diluted earnings (loss) per share $ 0.30 $ 0.70
v3.23.1
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]    
Manufacturing supplies $ 38.2 $ 36.9
Raw materials 31.2 23.9
Work in process 142.0 94.7
Finished products 34.0 37.4
Gross inventory 245.4 192.9
Allowance for inventory reserves (0.7) (0.5)
Total inventories, net $ 244.7 $ 192.4
v3.23.1
Financing Arrangements - Summary of Current and Non-current Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Total debt $ 13.1 $ 20.4
Less current portion of debt 13.1 20.4
Total non-current portion of debt 0.0 0.0
Convertible Senior Notes due 2025    
Debt Instrument [Line Items]    
Total debt $ 13.1 $ 20.4
v3.23.1
Financing Arrangements - Narrative (Details)
$ / shares in Units, shares in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
Days
$ / shares
shares
Mar. 31, 2022
USD ($)
$ / shares
shares
Apr. 30, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
Nov. 02, 2022
USD ($)
Dec. 20, 2021
shares
Debt Instrument [Line Items]            
Settled with cash payment $ 18,700,000 $ 26,800,000        
Interest paid 400,000 400,000        
Loss on extinguishment of debt (11,400,000) (17,000,000.0)        
Common Stock, Shares outstanding | shares           50.0
Money market investment carrying value 94,100,000 $ 0        
Cash held in other investments 116,000,000.0          
Stock Repurchase Program, Amount         $ 75,000,000.0  
Common Shares            
Debt Instrument [Line Items]            
Stock Repurchase Program, Remaining Amount $ 63,700,000   $ 60,700,000      
Shares repurchased | shares 0.5 0.2 0.2      
Aggregate cost $ 9,400,000 $ 3,400,000 $ 3,000,000.0      
Average repurchase price | $ / shares $ 18.20 $ 20.27 $ 17.80      
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 63,700,000   $ 60,700,000      
Third Amended Credit Facility | Credit Agreement            
Debt Instrument [Line Items]            
Outstanding borrowings 0          
Line of credit facility, tentative future commitment increase 303,300,000          
Convertible Senior Notes due 2025            
Debt Instrument [Line Items]            
Outstanding borrowings 0          
Principal amount 13,300,000     $ 20,800,000    
Transaction costs, debt gross $ 1,500,000          
Terms of conversion The Convertible Senior Notes due 2025 are convertible at the option of holders in certain circumstances and during certain periods into the Company’s common shares, cash, or a combination thereof, at the Company’s election.          
Settled with cash payment $ 18,700,000 $ 26,800,000        
Debt instrument, threshold trading days | Days 20          
Debt Instrument, , threshold consecutive trading days | Days 30          
Debt Instrument, threshold Percentage of stock price conversion 130.00%          
Fair value of convertible notes $ 34,200,000          
Debt Instrument, Face Amount 7,500,000 10,000,000.0        
Loss on extinguishment of debt 11,400,000 17,000,000.0        
Unamortized debt issuance costs 200,000 $ 200,000        
Convertible Senior Notes due 2025 | Convertible Notes            
Debt Instrument [Line Items]            
Debt Instrument, Face Amount $ 46,000,000.0          
v3.23.1
Financing Arrangements - Schedule of Convertible Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Total debt $ 13.1 $ 20.4
Convertible Senior Notes due 2025    
Debt Instrument [Line Items]    
Principal 13.3 20.8
Less: Debt issuance costs, net of amortization (0.2) (0.4)
Total debt $ 13.1 $ 20.4
v3.23.1
Financing Arrangements - Schedule of Interest Expense (Details) - Convertible Notes - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Debt Instrument [Line Items]    
Contractual interest expense $ 0.3 $ 0.6
Amortization of debt issuance costs 0.0 0.1
Total $ 0.3 $ 0.7
v3.23.1
Financing Arrangements - Schedule Components of Interest Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Debt Disclosure [Abstract]    
Interest (income) expense, net $ 0.7 $ 1.3
Interest income (2.2) (0.1)
Interest (income) expense, net $ (1.5) $ 1.2
v3.23.1
Retirement and Postretirement Plans - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 29, 2021
Mar. 31, 2023
Dec. 31, 2021
Bargaining Plan      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined benefit plan term of contract 4 years    
Defined benefit plan contract expiration date Sep. 27, 2025    
Increased in pension liability     $ 14.2
Postretirement      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Defined Benefit Plan Terminated Effective Date   Mar. 31, 2022  
Expected annuity purchase year   2023  
v3.23.1
Retirement and Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Pension    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Service cost $ 2.6 $ 4.2
Interest cost 8.9 9.4
Expected return on plan assets (9.2) (16.8)
Amortization of prior service cost 0.3 0.3
Net remeasurement (gains) losses 2.2 (6.5)
Net Periodic Benefit Cost (Income) 4.8 (9.4)
Pension | United States of America | Bargaining Plan    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Service cost 2.4 4.1
Interest cost 6.5 7.5
Expected return on plan assets (6.7) (14.4)
Amortization of prior service cost 0.3 0.3
Net Periodic Benefit Cost (Income) 2.5 (2.5)
Pension | United States of America | Salaried Plan    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Service cost 0.2 0.1
Interest cost 1.7 1.4
Expected return on plan assets (1.9) (1.5)
Net remeasurement (gains) losses 2.2 (4.0)
Net Periodic Benefit Cost (Income) 2.2 (4.0)
Pension | United States of America | Supplemental Plan    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Interest cost 0.2 0.1
Net remeasurement (gains) losses   (2.5)
Net Periodic Benefit Cost (Income) 0.2 (2.4)
Pension | United Kingdom | Pension Scheme    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Interest cost 0.5 0.4
Expected return on plan assets (0.6) (0.9)
Net Periodic Benefit Cost (Income) (0.1) (0.5)
Postretirement    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Service cost 0.2 0.3
Interest cost 1.2 0.8
Expected return on plan assets (0.9) (0.9)
Amortization of prior service cost (1.5) (1.5)
Net Periodic Benefit Cost (Income) $ (1.0) $ (1.3)
v3.23.1
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense $ 2.6 $ 2.1
Future stock-based compensation expense $ 20.0  
Restricted Stock Units    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares granted 314,194 292,773
Fair value of shares granted $ 18.85  
Performance Shares    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares granted 211,639 178,467
Fair value of shares granted $ 23.13  
v3.23.1
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance $ 686.5 $ 664.6
Other comprehensive income (loss) before reclassifications, before income tax (0.5) (0.8)
Amounts reclassified from accumulated other comprehensive income (loss), before income tax (1.2) (1.2)
Amounts deferred to accumulated other comprehensive income (loss),before income tax 1.2 0.0
Tax effect (0.1) 0.1
Other comprehensive income (loss), net of tax (0.6) (1.9)
Ending balance 691.4 703.2
Foreign Currency Translation Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance (6.8) (5.1)
Other comprehensive income (loss) before reclassifications, before income tax (0.5) (0.8)
Amounts reclassified from accumulated other comprehensive income (loss), before income tax 0.0 0.0
Amounts deferred to accumulated other comprehensive income (loss),before income tax 0.0 0.0
Tax effect 0.0 0.0
Other comprehensive income (loss), net of tax (0.5) (0.8)
Ending balance (7.3) (5.9)
Pension and Postretirement Liability Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 21.5 25.8
Other comprehensive income (loss) before reclassifications, before income tax 0.0 0.0
Amounts reclassified from accumulated other comprehensive income (loss), before income tax (1.2) (1.2)
Amounts deferred to accumulated other comprehensive income (loss),before income tax 1.2 0.0
Tax effect (0.1) 0.1
Other comprehensive income (loss), net of tax (0.1) (1.1)
Ending balance 21.4 24.7
Accumulated Other Comprehensive Income (Loss)    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 14.7 20.7
Other comprehensive income (loss), net of tax (0.6) (1.9)
Ending balance $ 14.1 $ 18.8
v3.23.1
Contingencies - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Loss Contingency Accrual, Disclosures [Abstract]    
Contingency reserves $ 1.4 $ 1.1