TIMKENSTEEL CORP, 10-K filed on 2/24/2022
Annual Report
v3.22.0.1
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2021
Feb. 15, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2021    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
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 Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Common Stock, Shares Outstanding   46,317,834  
Entity Public Float     $ 641,412,312
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Document Annual 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    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

 

Document

 

Parts Into Which Incorporated

Proxy Statement for the 2022 Annual Meeting of Shareholders

 

Part III
   
Auditor Name Ernst & Young LLP    
Auditor Firm ID 42    
Auditor Location Cleveland, Ohio    
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Consolidated Statements of Operations - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Net sales $ 1,282.9 $ 830.7 $ 1,208.8
Cost of products sold 1,062.9 815.1 1,186.2
Gross Profit 220.0 15.6 22.6
Selling, general and administrative expenses 77.2 76.7 91.8
Restructuring charges 6.7 3.1 8.6
Loss on sale of consolidated subsidiary 1.1    
Loss (gain) on sale or disposal of assets, net 1.3 (2.4) 2.0
Impairment charges 10.6   7.3
Interest expense 5.9 12.2 15.7
Loss on extinguishment of debt   0.9  
Other (income) expense, net (59.5) (14.2) 23.3
Income (loss) from operations before income taxes 176.7 (60.7) (126.1)
Provision (benefit) for income taxes 5.7 1.2 (16.1)
Net Income (Loss) $ 171.0 $ (61.9) $ (110.0)
Per Share Data:      
Basic earnings (loss) per share $ 3.73 $ (1.38) $ (2.46)
Diluted earnings (loss) per share $ 3.18 $ (1.38) $ (2.46)
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Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 171.0 $ (61.9) $ (110.0)
Other comprehensive income (loss), net of tax of $0.1 million in 2020, $16.7 million in 2019:      
Foreign currency translation adjustments 0.3 1.4 0.5
Pension and postretirement liability adjustments (20.0) (5.7) 53.1
Other comprehensive income (loss), net of tax (19.7) (4.3) 53.6
Comprehensive Income (Loss), net of tax $ 151.3 $ (66.2) $ (56.4)
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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]    
Other Comprehensive income (loss), tax $ 0.1 $ 16.7
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 259.6 $ 102.8
Accounts receivable, net of allowances (2021 - $1.9 million; 2020 - $1.3 million) 100.5 63.3
Inventories, net 210.9 178.4
Deferred charges and prepaid expenses 3.9 4.0
Assets held for sale 4.3 0.3
Other current assets 3.1 8.8
Total Current Assets 582.3 357.6
Property, plant and equipment, net 510.2 569.8
Operating lease right-of-use assets 14.5 21.0
Pension assets 43.1 33.5
Intangible assets, net 6.7 9.3
Other non-current assets 2.1 2.8
Total Assets 1,158.9 994.0
Current Liabilities    
Accounts payable 141.9 89.5
Salaries, wages and benefits 37.9 29.4
Accrued pension and postretirement costs 4.3 2.3
Current operating lease liabilities 5.7 7.5
Current convertible notes, net 44.9 38.9
Other current liabilities 16.1 13.4
Total Current Liabilities 250.8 181.0
Non-Current Liabilities    
Non-current convertible notes, net   39.3
Non-current operating lease liabilities 8.8 13.5
Accrued pension and postretirement costs 223.0 240.7
Deferred income taxes 2.2 1.0
Other non-current liabilities 9.5 11.0
Total Liabilities 494.3 486.5
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 2021 - 46.3 million shares; issued 2020 - 45.7 million shares 0.0 0.0
Additional paid-in capital 832.1 843.4
Retained deficit (188.2) (363.4)
Treasury shares - 2021 - None; 2020 - 0.6 million   (12.9)
Accumulated other comprehensive income (loss) 20.7 40.4
Total Shareholders’ Equity 664.6 507.5
Total Liabilities and Shareholders’ Equity $ 1,158.9 $ 994.0
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Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowances for accounts receivable $ 1.9 $ 1.3
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) 46,300,000 45,700,000
Treasury shares (in shares) 0 600,000
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Consolidated Statements of Shareholder's Equity - USD ($)
$ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Shares Outstanding
Additional Paid-in Capital
Additional Paid-in Capital
Cumulative Effect, Period of Adoption, Adjustment
Retained Deficit
Retained Deficit
Cumulative Effect, Period of Adoption, Adjustment
Treasury Shares
Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2018 $ 612.9     $ 846.3   $ (191.5)   $ (33.0) $ (8.9)
Beginning balance (in shares) at Dec. 31, 2018     44,584,668            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income (loss) (110.0)         (110.0)      
Other comprehensive income (loss) 53.6               53.6
Stock-based compensation expense 7.4     7.4          
Stock option activity 0.2     0.2          
Issuance of treasury shares       (9.1)       9.1  
Issuance of treasury shares (in shares)     321,739            
Shares surrendered for taxes (1.0)             (1.0)  
Shares surrendered for taxes (in shares)     (86,254)            
Ending balance at Dec. 31, 2019 563.1     844.8   (301.5)   (24.9) 44.7
Ending balance (in shares) at Dec. 31, 2019     44,820,153            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income (loss) (61.9)         (61.9)      
Other comprehensive income (loss) (4.3)               (4.3)
Stock-based compensation expense 6.6     6.6          
Issuance of treasury shares       (12.6)       12.6  
Issuance of treasury shares (in shares)     486,260            
Shares surrendered for taxes (0.6)             (0.6)  
Shares surrendered for taxes (in shares)     (142,105)            
Equity component of convertible notes, net 4.6     4.6          
Ending balance at Dec. 31, 2020 507.5 $ (6.4)   843.4 $ (10.6) (363.4) $ 4.2 (12.9) 40.4
Ending balance (in shares) at Dec. 31, 2020     45,164,308            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income (loss) 171.0         171.0      
Other comprehensive income (loss) (19.7)               (19.7)
Stock-based compensation expense 7.3     7.3          
Stock-based compensation expense (in shares)     272,462            
Stock option activity $ 4.1     4.1          
Stock options activity (in shares) 527,870   152,940            
Issuance of treasury shares       (13.4)       13.4  
Issuance of treasury shares (in shares)     638,093            
Shares surrendered for taxes $ (0.5)             $ (0.5)  
Shares surrendered for taxes (in shares)     (72,174)            
Equity component of convertible notes, net 1.3     1.3          
Convertible notes settlement (in shares)     113,226            
Ending balance at Dec. 31, 2021 $ 664.6     $ 832.1   $ (188.2)     $ 20.7
Ending balance (in shares) at Dec. 31, 2021     46,268,855            
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Activities      
Net income (loss) $ 171.0 $ (61.9) $ (110.0)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:      
Depreciation and amortization 63.1 70.0 73.5
Amortization of deferred financing fees and debt discount 1.0 5.3 5.1
Loss on extinguishment of debt   0.9  
Loss on sale of consolidated subsidiary 1.1    
Loss (gain) on sale or disposal of assets 1.3 (2.4) 2.0
Impairment charges 10.6   7.3
Deferred income taxes 1.2   (16.6)
Stock-based compensation expense 7.3 6.6 7.4
Pension and postretirement expense (benefit), net (38.7) 8.6 41.6
Changes in operating assets and liabilities:      
Accounts receivable, net (37.2) 14.2 85.9
Inventories, net (41.6) 103.5 92.6
Accounts payable 53.5 23.1 (87.7)
Other accrued expenses 9.7 9.4 (26.0)
Deferred charges and prepaid expenses 0.1 (0.7) 0.2
Pension and postretirement contributions and payments (6.9) (4.1) (3.8)
Other, net 1.4 1.0 (1.2)
Net Cash Provided (Used) by Operating Activities 196.9 173.5 70.3
Investing Activities      
Capital expenditures (12.2) (16.9) (38.0)
Proceeds from sale of consolidated subsidiary, net 6.2    
Proceeds from disposals of property, plant and equipment 1.2 10.9  
Net Cash Provided (Used) by Investing Activities (4.8) (6.0) (38.0)
Financing Activities      
Proceeds from exercise of stock options 4.1   0.2
Shares surrendered for employee taxes on stock compensation (0.5) (0.6) (1.0)
Repayments on convertible notes (38.9)    
Repayments on credit agreements   (90.0) (65.0)
Borrowings on credit agreements     40.0
Debt issuance costs   (1.2) (1.0)
Net Cash Provided (Used) by Financing Activities (35.3) (91.8) (26.8)
Increase (Decrease) in Cash and Cash Equivalents 156.8 75.7 5.5
Cash and cash equivalents at beginning of period 102.8 27.1 21.6
Cash and Cash Equivalents at End of Period $ 259.6 $ 102.8 $ 27.1
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Basis of Presentation
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Note 1 - Basis of Presentation

TimkenSteel Corporation (the "Company" or "TimkenSteel") manufactures alloy steel, as well as carbon and micro-alloy steel. TimkenSteel’s portfolio includes special bar quality ("SBQ") bars, seamless mechanical tubing ("tubes"), manufactured components (formerly known as the "value-add" product type) such as precision steel components, and billets. In addition, TimkenSteel supplies machining and thermal treatment services and manages raw material recycling programs, which are also used as a feeder system for the Company’s melt operations. The Company’s products and services are used in a diverse range of demanding applications in the following market sectors: automotive; oil and gas; industrial equipment; mining; construction; rail; defense; heavy truck; agriculture; power generation; and oil country tubular goods ("OCTG").

The SBQ bar, tube, and billet production processes take place at the Company’s Canton, Ohio manufacturing location. This location accounts for all of the SBQ bars, seamless mechanical tubes and billets the Company produces and includes three manufacturing facilities: the Faircrest, Harrison, and Gambrinus facilities. TimkenSteel’s production of manufactured components takes place at two downstream manufacturing facilities: Tryon Peak (Columbus, North Carolina) and St. Clair (Eaton, Ohio). Many of the production processes are integrated, and the manufacturing facilities produce products that are sold in all of the Company’s market sectors. As a result, investments in the Company’s facilities and resource allocation decisions affecting the Company’s operations are designed to benefit the overall business, not any specific aspect of the business.

Prior to indefinitely idling our Harrison melt and casting assets in the first quarter of 2021, we had an annual melt capacity of approximately 2 million tons and shipment capacity of 1.5 million tons. After indefinitely idling these assets, our annual melt capacity is approximately 1.2 million tons and our shipment capacity is approximately 0.9 million tons.

Basis of Consolidation:

The Consolidated Financial Statements include the consolidated assets, liabilities, revenues and expenses related to TimkenSteel as of December 31, 2021, 2020 and 2019. All significant intercompany accounts and transactions within TimkenSteel have been eliminated in the preparation of the Consolidated Financial Statements.

Use of Estimates:

The preparation of these Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. These estimates and assumptions are reviewed and updated regularly to reflect recent experience.

Presentation:

Certain items previously reported in specific financial statement captions have been reclassified to conform to the fiscal 2021 presentation.
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Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Significant Accounting Policies

Note 2 - Significant Accounting Policies

Revenue Recognition:

TimkenSteel recognizes revenue from contracts at a point in time when it has satisfied its performance obligation and the customer obtains control of the goods, at the amount that reflects the consideration the Company expects to receive for those goods. The Company receives and acknowledges purchase orders from its customers, which define the quantity, pricing, payment and other applicable terms and conditions. In some cases, the Company receives a blanket purchase order from its customer, which includes pricing, payment and other terms and conditions, with quantities defined at the time the customer issues periodic releases from the blanket purchase order. Certain contracts contain variable consideration, which primarily consists of rebates that are accounted for in net sales and accrued based on the estimated probability of the requirements being met.

Cash Equivalents:

TimkenSteel considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Accounts Receivables, Net:

The Company’s accounts receivables arise from sales to customers across the mobile, industrial, energy, and other end-market sectors. The allowance for doubtful account reserve has been established using qualitative and quantitative methods. In general, account balances greater than one year of age or sent to third party collection are fully reserved. Account balances for customers that are viewed as higher risk are also analyzed for a reserve. In addition to these methods, the allowance for doubtful accounts is adjusted for forward looking estimates of uncollectible balances based on end-market sector outlook and dynamics. Historically, TimkenSteel’s allowance for doubtful accounts write-offs have been immaterial.

Inventories, Net:

Inventories are stated at lower of cost or net realizable value. All inventories, including raw materials, manufacturing supplies inventory, as well as international (outside the U.S.) inventories, have been valued using the FIFO or average cost method.

Property, Plant and Equipment, Net:

Property, plant and equipment, net are valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings and 3 to 20 years for machinery and equipment.

Intangible Assets, Net:

Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from 3 to 15 years.

In accordance with applicable accounting guidance, TimkenSteel capitalizes certain costs incurred for computer software developed or obtained for internal use. TimkenSteel capitalizes substantially all external costs and qualifying internal costs related to the purchase and implementation of software projects used for business operations. Capitalized software costs primarily include purchased software and external consulting fees. Capitalized software projects are amortized over the estimated useful lives of the software.

Long-lived Assets:

Long-lived assets (including tangible assets and intangible assets subject to amortization) are reviewed for impairment when events or changes in circumstances have occurred indicating that the carrying value of the assets may not be recoverable.

TimkenSteel tests recoverability of long-lived assets at the lowest level for which there are identifiable cash flows that are independent from the cash flows of other assets. Assets and asset groups held and used are measured for recoverability by comparing the carrying amount of the asset or asset group to the sum of future undiscounted net cash flows expected to be generated by the asset or asset group.

Assumptions and estimates about future values and remaining useful lives of TimkenSteel’s long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends and internal factors such as changes in TimkenSteel’s business strategy and internal forecasts.

If an asset or asset group is considered to be impaired, the impairment loss that would be recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. To determine fair value, TimkenSteel uses internal cash flow estimates discounted at an appropriate interest rate, third party appraisals, as appropriate, and/or market prices of similar assets, when available.

Refer to “Note 6 - Disposition of Non-Core Assets” and “Note 11 - Property, Plant and Equipment” for additional information.

Product Warranties:

TimkenSteel accrues liabilities for warranties based upon specific claim incidents in accordance with accounting rules relating to contingent liabilities. Should TimkenSteel become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. TimkenSteel had warranty claims in the amount of $1.4 million that were resolved and paid primarily during the fourth quarter of 2021, which is included in cost of products sold on the Consolidated Statements of Operations. TimkenSteel had no significant warranty claims for the years ended December 31, 2020 or 2019.

 

Income Taxes:

Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. TimkenSteel accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. TimkenSteel recognizes deferred tax assets to the extent TimkenSteel believes these assets are more likely than not to be realized. In making such a determination, TimkenSteel considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If TimkenSteel determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, TimkenSteel would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

TimkenSteel records uncertain tax positions in accordance with applicable accounting guidance, on the basis of a two-step process whereby (1) TimkenSteel determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, TimkenSteel recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

TimkenSteel recognizes interest and penalties related to unrecognized tax benefits within the provision (benefit) for income taxes line in the accompanying Consolidated Statements of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets.

Foreign Currency:

Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date. Income and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are reflected as a separate component of accumulated other comprehensive loss. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in the Consolidated Statements of Operations. TimkenSteel realized a foreign currency exchange loss of $0.1 million and $0.2 million for the years ended December 31, 2021 and 2020, respectively. There were no foreign currency exchange gains or losses in 2019.

Pension and Other Postretirement Benefits:

TimkenSteel recognizes an overfunded status or underfunded status (e.g., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and other postretirement benefit plans on the Consolidated Balance Sheets. The Company recognizes actuarial gains and losses immediately through net periodic benefit cost in the Consolidated Statements of Operations upon the annual remeasurement at December 31, or on an interim basis as triggering events warrant remeasurement. In addition, the Company uses fair value to account for the value of plan assets.

Stock-Based Compensation:

TimkenSteel recognizes stock-based compensation expense based on the grant date fair value of the stock-based awards over their required vesting period on a straight-line basis, whether the awards were granted with graded or cliff vesting. Stock options are issued with an exercise price equal to the closing market price of TimkenSteel common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield.

Performance-based restricted stock units issued in 2021 and 2020 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. 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 stock-based awards that will settle in TimkenSteel common shares, other than stock options and performance-based restricted stock units, is based on the closing market price of TimkenSteel common shares on the grant date.

TimkenSteel recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the Consolidated Statements of Operations. The excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate.

Research and Development:

Expenditures for research and development at TimkenSteel amounted to $1.7 million, $1.8 million and $4.1 million for the years ended December 31, 2021, 2020, and 2019, respectively, and were recorded as a component of selling, general and administrative expenses in the Consolidated Statements of Operations. These expenditures may fluctuate from year to year depending on special projects and the needs of TimkenSteel and its customers.

Adoption of New Accounting Standards

The Company adopted the following Accounting Standard Updates ("ASU") during the year ended December 31, 2021.

Standard Adopted

Description

Date of Adoption

Impact

ASU 2019-12, Income Taxes (Topic 740)

The standard simplifies the accounting for income taxes by removing various exceptions.

January 1, 2021

The adoption of this standard had an immaterial impact on the Company’s tax provision.

ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)

The standard simplifies the accounting for convertible instruments, as well as the diluted net income per share calculation. The standard also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception.

January 1, 2021

The Company early adopted this standard as of January 1, 2021 using the modified retrospective method of transition. The standard had a material impact on the Consolidated Financial Statements. See below for additional information.

 

Upon adoption of ASU 2020-06 prospectively as of January 1, 2021, all outstanding Convertible Notes were fully classified as a liability, there was no longer a separate equity component and the Convertible Notes no longer have a debt discount that is amortized. This resulted in a decrease of $10.6 million to additional paid-in capital and an increase of $1.1 million and $5.3 million to current convertible notes, net and non-current convertible notes, net, respectively, on the Consolidated Balance Sheets as of January 1, 2021. Additionally, retained deficit was reduced by $4.2 million in the Consolidated Balance Sheets as of January 1, 2021 to remove amortization expense recognized in prior periods. The adoption of this standard did not have an effect on the Company’s cash flows, liquidity, or the methodology used for the earnings per share calculation. Refer to “Note 14 – Financing Arrangements” for additional information on the Company’s Convertible Notes.

Accounting Standards Issued But Not Yet Adopted

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

Coronavirus Aid, Relief, and Economic Security Act

On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, an economic stimulus package intended to provide support, principally in the form of tax benefits, to companies and individuals negatively impacted by the COVID-19 pandemic. Although the majority of the provisions included in the CARES Act did not immediately benefit the Company from a cash tax perspective due to its significant net operating losses, the Company took advantage of the deferral of the employer share (6.2% of employee wages) of Social Security payroll taxes that would otherwise have been owed from the date of enactment of the legislation through December 31, 2020, as afforded by the Act. During the year ended December 31, 2020, the Company had 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 is due on December 31, 2022.

The CARES Act also provided for an employee retention credit (“Employee Retention Credit”), which is a refundable tax credit against certain employment taxes of up to five thousand dollars per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at ten thousand dollars of qualified wages per employee throughout the year. 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 Company’s 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, which was recorded as a receivable in other current assets on the Consolidated Balance Sheets as of December 31, 2021.

Consolidated Appropriations Act, 2021

On December 27, 2020, the President of the United States signed the Consolidated Appropriation Act, 2021 (“CAA”). The CAA includes additional COVID-19 relief that expands upon the relief provided in the CARES Act, including, but not limited to, the extension of tax deductions, credits, and incentives. The Company has evaluated the CAA for any potential impact. While it was determined that the CAA revised and extended the Employee Retention Credit into 2021, the CAA is not expected to have an impact on the Company as employee furloughs related to the COVID-19 pandemic ceased in 2020. Furthermore, the Company does not expect any of the other provisions within the CAA to provide a benefit.

American Rescue Plan Act of 2021

On March 11, 2021, the President of the United States signed the American Rescue Plan Act of 2021 (“ARPA”). The ARPA strengthens and extends certain programs enacted through the CARES Act and establishes new relief programs aimed at mitigating the financial impact of the COVID-19 pandemic. The provisions within the ARPA have been evaluated and at this time one provision, which offers funding relief for single-employer defined benefit pension plans, is expected to materially impact the Company.

Specifically, the ARPA provides enhanced interest rate stabilization, as well as extended amortization of funding shortfalls. The Company has evaluated and made final the elections permitted by the ARPA related to the required contributions for our TimkenSteel Corporation Bargaining Unit Pension Plan ("Bargaining Plan"). At this time based on current assumptions, the elections made under ARPA and expected asset returns, we believe that required Company contributions to the Bargaining Plan have been delayed until after 2031. However, these estimates are subject to significant uncertainty. 
v3.22.0.1
Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information

Note 3 - Segment Information

We conduct our business activities and report financial results as one business segment. The presentation of financial results as one reportable segment is consistent with the way the Company operates its business and is consistent with the manner in which the Chief Operating Decision Maker ("CODM") evaluates performance and makes resource and operating decisions for the business as described above. Furthermore, the Company notes that monitoring financial results as one reportable segment helps the CODM manage costs on a consolidated basis, consistent with the integrated nature of the operations.

Geographic Information

Net sales by geographic area are reported by the country in which the customer is domiciled. Long-lived assets include property, plant and equipment and intangible assets subject to amortization. Long-lived assets by geographic area are reported by the location of the TimkenSteel operations to which the asset is attributed.
 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Net Sales:

 

 

 

 

 

 

 

 

 

United States

 

$

1,166.1

 

 

$

746.8

 

 

$

1,096.8

 

Foreign

 

 

116.8

 

 

 

83.9

 

 

 

112.0

 

 

 

$

1,282.9

 

 

$

830.7

 

 

$

1,208.8

 

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Long-lived Assets, net:

 

 

 

 

 

 

United States

 

$

530.7

 

 

$

599.1

 

Foreign

 

 

0.7

 

 

 

1.0

 

 

 

$

531.4

 

 

$

600.1

 
v3.22.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 4 - Revenue Recognition

The following table provides the major sources of revenue by end-market sector for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Mobile

 

$

527.9

 

 

$

346.0

 

 

$

479.3

 

Industrial

 

 

661.2

 

 

 

391.7

 

 

 

486.3

 

Energy

 

 

62.9

 

 

 

53.2

 

 

 

166.4

 

Other(1)

 

 

30.9

 

 

 

39.8

 

 

 

76.8

 

Total Net Sales

 

$

1,282.9

 

 

$

830.7

 

 

$

1,208.8

 

 

(1) “Other” sales by end-market sector includes the Company’s scrap and oil country tubular goods (“OCTG”) billet sales.

The following table provides the major sources of revenue by product type for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Bar

 

$

863.6

 

 

$

502.5

 

 

$

783.0

 

Tube

 

 

164.4

 

 

 

101.4

 

 

 

151.8

 

Manufactured components(3)

 

 

224.0

 

 

 

208.1

 

 

 

240.6

 

Other(2)

 

 

30.9

 

 

 

18.7

 

 

 

33.4

 

Total Net Sales

 

$

1,282.9

 

 

$

830.7

 

 

$

1,208.8

 

 

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

 

(3) Formerly known as the “Value-add” product type. 
v3.22.0.1
Restructuring Charges
 12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Charges

Note 5 - Restructuring Charges

Over the past several years, TimkenSteel has made numerous organizational changes to enhance profitable and sustainable growth. These company-wide actions included the restructuring of its business support functions, the reduction of management layers throughout the organization and other domestic and international actions to further improve the Company’s overall cost structure. Restructuring charges for the years ended December 31, 2021, 2020, and 2019 totaled $6.7 million, $3.1 million, and $8.6 million, respectively.

 

During 2021, $6.4 million of restructuring charges related to severance and employee-related benefits as a result of continued organizational changes. The remaining $0.3 million of charges related to the transition of customers to other TimkenSteel manufacturing equipment due to the discontinuation of specific small-diameter seamless mechanical tube manufacturing and the indefinite idling of our Harrison melt and casting activities (refer to “Note 6 – Disposition of Non-Core Assets” for additional information). Restructuring charges for 2020 and 2019 primarily consisted of severance and employee related benefits. During this period of organizational changes, the Company has eliminated approximately 290 salaried positions through restructuring actions, with approximately 75 of these eliminations occurring in 2021.

 

TimkenSteel recorded reserves for such restructuring charges as other current liabilities on the Consolidated Balance Sheets. The reserve balance at December 31, 2021 is expected to be substantially used in the next twelve months.

The following is a summary of the restructuring reserve for the twelve months ended December 31, 2021 and 2020:

Balance at December 31, 2020

 

$

1.5

 

Expenses

 

 

6.7

 

Payments

 

 

(3.5

)

Balance at December 31, 2021

 

$

4.7

 

 

Balance at December 31, 2019

 

$

6.0

 

Expenses

 

 

3.1

 

Payments

 

 

(7.6

)

Balance at December 31, 2020

 

$

1.5

 
v3.22.0.1
Disposition of Non-Core Assets
 12 Months Ended
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Disposition of Non-Core Assets

Note 6 - Disposition of Non-Core Assets

Scrap Processing Facility

During the fourth quarter of 2019, management signed a letter of intent to dispose of the Company’s scrap processing facility in Akron, Ohio for cash consideration of approximately $4.0 million. This letter of intent and cash consideration were for the land, buildings, machinery and equipment associated with this facility.

As a result of the agreement to sell the scrap processing facility, the Company ceased depreciation of the assets and recorded them as assets held for sale. This disposal did not represent a discontinued operation. Additionally, the Company recorded an impairment charge of $7.3 million in the fourth quarter of 2019 which represents the cash consideration to be received less cost to sell the assets compared with the $11.3 million carrying value of the assets being sold, including supplies inventory. An additional loss on disposal of $0.1 million was recognized in the first quarter of 2020 as the sale was completed.

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. Accelerated depreciation and amortization on TMS assets of $2.8 million was recorded in the fourth quarter of 2019, with an additional $1.6 million of accelerated depreciation and amortization recorded in the first quarter of 2020, to reduce the net book value of the machinery and equipment to its estimated fair value. Subsequent to the closure, certain assets were sold and a gain on sale of $3.6 million was recognized for the year ended December 31, 2020.

Inventory write-downs of $4.8 million were recorded as of December 31, 2019, which represented the difference between the expected selling price and carrying value of the related inventory. The expected selling price was based upon the Company’s most recently published price lists related to this inventory. While the Company began selling the inventory associated with TMS in the first quarter of 2020 at prices that were in line with the net realizable value of the inventory established in the fourth quarter of 2019, excess inventory related to the energy end-market sector resulted in an additional reserve of approximately $3.1 million being recorded in the second quarter of 2020. The excess inventory was the result of continued weakness in this end-market sector, as well as the closures of several distributors that were holding considerable amounts of similar inventory. There was no inventory at December 31, 2021 associated with TMS, as the remaining inventory was sold throughout 2021. Furthermore, inventory reserves were reversed throughout 2021 as the related TMS inventory was sold or scrapped.

During 2021, the remaining associated machinery and equipment that was classified as held for sale was fully impaired as there was no longer an expected market value for these assets. This resulted in impairment charges of $0.3 million.

A small parcel of land associated with TMS was sold during the fourth quarter of 2021 for $0.3 million resulting in a gain on sale of $0.1 million. The remaining $4.3 million of land and buildings associated with TMS are classified as assets held for sale on the Consolidated Balance Sheets as of December 31, 2021, as it is probable that these assets will be sold within the next 12 months.

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. As a result, the Company recognized accelerated depreciation of $1.8 million for the year ended December 31, 2020 on the machinery and equipment used in the manufacturing of these specific products. Additional accelerated depreciation of $1.5 million was recognized in the first quarter of 2021 in alignment with the ramp down of this machinery and equipment. Spare parts related to this machinery and equipment of $0.5 million were also written down in the first quarter of 2021, as management determined there was no alternative use.

Property and Asset Sales

In the fourth quarter of 2020, TimkenSteel sold portions of non-core property at the Canton, Ohio manufacturing location, resulting in a gain on sale of assets of $0.5 million for the year ended December 31, 2020.

During the fourth quarter of 2021, TimkenSteel disposed of older non-core assets through an auction process, resulting in a loss on sale of assets of $0.9 million for the year ended December 31, 2021.

Harrison Melt and Casting Assets

On February 16, 2021, management announced a plan to indefinitely idle its Harrison melt and casting assets, which was completed in the first quarter of 2021. Going forward, all of the Company’s melt and casting activities will take place at the Faircrest location. The Company worked

collaboratively with employees, suppliers and a number of customers to ensure a well-organized and efficient transition. The Company’s rolling and finishing operations at Harrison were not impacted by this action.

The Company recognized non-cash charges of $9.5 million related to the write-down of the associated Harrison melt and casting assets in the first quarter of 2021. These charges include $7.9 million related to the impairment of the associated machinery and equipment, which is classified as impairment charges on the Consolidated Statements of Operations, as well as a write-down of spare parts of $1.6 million, which is included in cost of products sold in the Consolidated Statements of Operations, as management determined there was no alternative use. The Company did not incur any cash expenditures related to these charges.

TimkenSteel (Shanghai) Corporation Limited

On March 31, 2021, the Company entered into an agreement pursuant to which Daido Steel (Shanghai) Co., Ltd. agreed to acquire all of the Company’s ownership interest in TimkenSteel (Shanghai) Corporation Limited in an all-cash transaction. The sale closed on July 30, 2021 and net cash proceeds of $6.2 million were received in the third quarter of 2021. As a result of this transaction, a loss on sale of consolidated subsidiary of $1.1 million was recognized on the Consolidated Statements of Operations during 2021. TimkenSteel’s consolidated financial statements include activity for TimkenSteel (Shanghai) Corporation Limited through July 30, 2021.

Customer Program Early Termination

During the fourth quarter of 2021, TimkenSteel received communication from a customer that two specific programs would end earlier than originally forecasted. There is machinery at the St. Clair facility designed for these programs, which has no alternative use. As such, the Company recognized impairment charges of $2.4 million for the year ended December 31, 2021. Related supplies inventory of $0.2 million was also written down, which is included in cost of products sold in the Consolidated Statements of Operations, as management determined there was no alternative use.

Additionally, cash previously received from the customer as reimbursement for capital investment for these early terminated programs was amortized as an expense reduction over the term of the related programs. With the early end to these programs, the remaining amount of capital recovery to be recognized of $1.1 million was accelerated and recognized within cost of products sold on the Consolidated Statements of Operations during the fourth quarter of 2021.
v3.22.0.1
Other (Income) Expense, Net
 12 Months Ended
Dec. 31, 2021
Other Income and Expenses [Abstract]  
Other (Income) Expense, Net

Note 7 - Other (Income) Expense, net

The following table provides the components of other (income) expense, net for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Pension and postretirement non-service benefit (income) loss

 

$

(37.2

)

 

$

(26.6

)

 

$

(17.5

)

Loss (gain) from remeasurement of benefit plans

 

 

(20.1

)

 

 

14.7

 

 

 

40.6

 

Foreign currency exchange loss (gain)

 

 

0.1

 

 

 

0.2

 

 

 

—

 

Sales and use tax refund

 

 

(2.5

)

 

 

—

 

 

 

—

 

Employee retention credit

 

 

—

 

 

 

(2.3

)

 

 

—

 

Miscellaneous (income) expense

 

 

0.2

 

 

 

(0.2

)

 

 

0.2

 

Total other (income) expense, net

 

$

(59.5

)

 

$

(14.2

)

 

$

23.3

 

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 loss from remeasurement of benefit plans is due to the Company performing mark-to-market accounting on its pension and postretirement assets at year-end and upon the occurrence of certain triggering events. For more details on the remeasurement refer to “Note 15 - Retirement and Postretirement Plans.”

During the second quarter of 2021, TimkenSteel received a refund from the State of Ohio related to an overpayment of sales and use taxes for the period of October 1, 2016 through September 30, 2019. This resulted in a gain recognized of $2.5 million, net of related professional fees, for the year ended December 31, 2021.

During the year ended December 31, 2020, the Company recognized a $2.3 million benefit related to the Employee Retention Credit in other (income) expense, net. For more details on this credit refer to "Note 2 - Significant Accounting Policies."
v3.22.0.1
Income Tax Provision
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Tax Provision

Note 8 - Income Tax Provision

Income (loss) from operations before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below.

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

$

171.2

 

 

$

(64.1

)

 

$

(130.8

)

Non-United States

 

 

5.5

 

 

 

3.4

 

 

 

4.7

 

Income (loss) from operations before income taxes

 

$

176.7

 

 

$

(60.7

)

 

$

(126.1

)

The provision (benefit) for income taxes consisted of the following:

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

0.2

 

 

$

0.6

 

 

$

—

 

State and local

 

 

3.7

 

 

 

—

 

 

 

0.1

 

Foreign

 

 

0.6

 

 

 

0.5

 

 

 

0.4

 

Total current tax expense (benefit)

 

$

4.5

 

 

$

1.1

 

 

$

0.5

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

$

0.8

 

 

$

(0.4

)

 

$

(14.4

)

State and local

 

 

0.3

 

 

 

0.5

 

 

 

(2.0

)

Foreign

 

 

0.1

 

 

 

—

 

 

 

(0.2

)

Total deferred tax expense (benefit)

 

 

1.2

 

 

 

0.1

 

 

 

(16.6

)

Provision (benefit) for incomes taxes

 

$

5.7

 

 

$

1.2

 

 

$

(16.1

)

For the year ended December 31, 2021, TimkenSteel made $0.9 million in foreign tax payments, $4.6 million in state and local tax payments, no U.S. federal payments, and had no refundable overpayments of state income taxes. For the year ended December 31, 2020, TimkenSteel made $0.4 million in foreign tax payments, $0.1 million in state tax payments, no U.S. federal payments, and had no refundable overpayments of state income taxes.

The reconciliation between TimkenSteel’s effective tax rate on income (loss) from continuing operations and the statutory tax rate is as follows:

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

U.S. federal income tax provision (benefit) at statutory rate

 

$

37.1

 

 

$

(12.7

)

 

$

(26.5

)

Adjustments:

 

 

 

 

 

 

 

 

 

State and local income taxes, net of federal tax benefit

 

 

4.1

 

 

 

2.3

 

 

 

(1.3

)

Permanent differences

 

 

(0.2

)

 

 

1.3

 

 

 

1.3

 

Foreign earnings taxed at different rates

 

 

(0.5

)

 

 

0.1

 

 

 

—

 

Valuation allowance

 

 

(34.8

)

 

 

10.3

 

 

 

10.2

 

U.S. research tax credit

 

 

—

 

 

 

—

 

 

 

0.2

 

Global intangible low-taxed income

 

 

—

 

 

 

—

 

 

 

0.2

 

Other items, net

 

 

—

 

 

 

(0.1

)

 

 

(0.2

)

Provision (benefit) for income taxes

 

$

5.7

 

 

$

1.2

 

 

$

(16.1

)

Effective tax rate

 

 

3.2

%

 

 

(2.0

)%

 

 

12.8

%

Income tax expense includes U.S. and international income taxes. Except as required under U.S. tax law, U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the U.S. This amount becomes taxable upon a repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary.

During the second and third quarters of 2021, TimkenSteel (Shanghai) Corporation Limited declared and paid dividends of $0.8 million and $0.4 million, respectively, net of withholding taxes, to TimkenSteel. During the third quarter of 2020, TimkenSteel (Shanghai) Corporation Limited declared a dividend of $5.1 million, net of withholding taxes, to TimkenSteel.

As of December 31, 2021, there was no deferred tax liability related to undistributed earnings. The Company had recognized a deferred tax liability in the amount of $0.3 million at December 31, 2020, for undistributed earnings at its TimkenSteel (Shanghai) Corporation Limited and TimkenSteel de Mexico S. de R.C. de C.V. subsidiaries.

The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2021 and 2020 was as follows:

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation

 

$

(89.0

)

 

$

(97.5

)

Inventory

 

 

(8.0

)

 

 

(16.2

)

Convertible notes

 

 

—

 

 

 

(1.6

)

Leases - right-of-use asset

 

 

(3.5

)

 

 

(5.0

)

Other, net

 

 

—

 

 

 

(0.3

)

Deferred tax liabilities

 

$

(100.5

)

 

$

(120.6

)

Deferred tax assets:

 

 

 

 

 

 

Tax loss carryforwards

 

$

52.6

 

 

$

94.4

 

Pension and postretirement benefits

 

 

44.3

 

 

 

50.3

 

Other employee benefit accruals

 

 

8.2

 

 

 

8.7

 

Lease liability

 

 

3.5

 

 

 

5.0

 

State decoupling

 

 

1.3

 

 

 

2.8

 

Accrued restructuring

 

 

1.1

 

 

 

—

 

Capital loss carryforward

 

 

0.8

 

 

 

—

 

Intangible assets

 

 

0.6

 

 

 

1.0

 

Inventory

 

 

0.6

 

 

 

4.5

 

Allowance for doubtful accounts

 

 

0.5

 

 

 

0.3

 

Other, net

 

 

0.3

 

 

 

0.3

 

Deferred tax assets subtotal

 

$

113.8

 

 

$

167.3

 

Valuation allowances

 

 

(15.5

)

 

 

(47.7

)

Deferred tax assets

 

 

98.3

 

 

 

119.6

 

Net deferred tax assets (liabilities)

 

$

(2.2

)

 

$

(1.0

)

As of December 31, 2021 and 2020, the Company had a deferred tax liability of $2.2 million and $1.0 million, respectively, on the Consolidated Balance Sheets.

As of December 31, 2021, TimkenSteel had loss carryforwards in the U.S. and various non-U.S. jurisdictions totaling $224.6 million (of which $164.2 million relates to the U.S. and $60.4 million relates to the UK jurisdiction), having various expiration dates. TimkenSteel has provided valuation allowances of $15.5 million against these carryforwards. The majority of the non-U.S. loss carryforwards represent local country net operating losses for branches of TimkenSteel or entities treated as branches of TimkenSteel under U.S. tax law. Tax benefits have previously been recorded for these losses in the U.S. The related local country net operating loss carryforwards are offset fully by valuation allowances.

During 2016, operating losses generated in the U.S. resulted in a decrease in the carrying value of the Company’s U.S. deferred tax liability to the point that would result in a net U.S. deferred tax asset at December 31, 2016. In light of TimkenSteel’s operating performance in the U.S. and current industry conditions, the Company assessed, based upon all available evidence, and concluded that it was more likely than not that it would not realize a portion of its U.S. deferred tax assets. The Company recorded a valuation allowance in 2016 and as a result of current year activity, the Company remained in a full valuation allowance position through 2021. Going forward, the need to maintain valuation allowances against deferred tax assets in the U.S. and other affected countries will cause variability in the Company’s effective tax rate. The Company will maintain a valuation allowance against its deferred tax assets in the U.S. and applicable foreign countries until sufficient positive evidence exists to eliminate them.

As of December 31, 2021, 2020 and 2019, TimkenSteel had no total gross unrecognized tax benefits, and no amounts which represented unrecognized tax benefits that would favorably impact TimkenSteel’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2021, TimkenSteel does not anticipate a change in its unrecognized tax positions during the next 12 months. TimkenSteel had no accrued interest and penalties related to uncertain tax positions as of December 31, 2021, 2020 and 2019.

As of December 31, 2021, the tax years 2018 to the present remain open to examination by the IRS.
v3.22.0.1
Earnings (Loss) Per Share
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

Note 9 - 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 stock, if any, is 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 4.8 million shares for the year ended December 31, 2021. For the year ended December 31, 2021, 1.8 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 1.3 million shares assumed purchased with potential proceeds for the year ended December 31, 2021, 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 4.6 million shares and 3.7 million shares for the years ended December 31, 2020 and December 31, 2019, respectively. All common share equivalents for shares issuable for equity-based awards were excluded from the computation of diluted earnings (loss) per share for the years ended December 31, 2020 and December 31, 2019, because the effect of their inclusion would have been anti-dilutive.

Convertible Notes

Common share equivalents for shares issuable upon the conversion of outstanding convertible notes of 7.4 million for the year ended December 31, 2021, were included in the computation of diluted earnings (loss) per share, as these shares would be dilutive.

 

In January 2022, TimkenSteel repurchased $5.0 million of outstanding principal related to the Convertible Senior Notes Due 2025. The convertible notes repurchase will have the effect of reducing diluted shares outstanding by approximately 0.6 million shares beginning in the first quarter of 2022.

Common share equivalents for shares issuable upon the conversion of outstanding convertible notes of 9.1 million and 6.9 million for the years ended December 31, 2020 and December 31, 2019, respectively, were excluded from the computation of diluted earnings (loss) per share because the effect of their inclusion would have been anti-dilutive.

The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings (loss) per share for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss), basic

 

$

171.0

 

 

$

(61.9

)

 

$

(110.0

)

Add convertible notes interest

 

 

4.1

 

 

 

—

 

 

 

—

 

Net income (loss), diluted

 

$

175.1

 

 

$

(61.9

)

 

$

(110.0

)

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

 

45.9

 

 

 

45.0

 

 

 

44.8

 

Dilutive effect of equity-based awards

 

 

1.7

 

 

 

—

 

 

 

—

 

Dilutive effect of convertible notes

 

 

7.4

 

 

 

—

 

 

 

—

 

Weighted average shares outstanding, diluted

 

 

55.0

 

 

 

45.0

 

 

 

44.8

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

3.73

 

 

$

(1.38

)

 

$

(2.46

)

Diluted earnings (loss) per share

 

$

3.18

 

 

$

(1.38

)

 

$

(2.46

)
v3.22.0.1
Inventories
 12 Months Ended
Dec. 31, 2021
Inventory Disclosure [Abstract]  
Inventories

Note 10 – Inventories

The components of inventories as of December 31, 2021 and 2020 were as follows:

 

 

December 31,

 

 

 

2021

 

 

2020

 

Manufacturing supplies

 

$

29.3

 

 

$

37.6

 

Raw materials

 

 

37.3

 

 

 

20.0

 

Work in process

 

 

89.3

 

 

 

79.1

 

Finished products

 

 

55.8

 

 

 

55.6

 

Gross inventory

 

 

211.7

 

 

 

192.3

 

Allowance for inventory reserves

 

 

(0.8

)

 

 

(13.9

)

Total inventories, net

 

$

210.9

 

 

$

178.4

 

The allowance for inventory reserves decreased in 2021 due to sales of TMS inventory, along with the selling and scrapping of aged inventory.
v3.22.0.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 11 - Property, Plant and Equipment

The components of property, plant and equipment, net as of December 31, 2021 and 2020 were as follows:

 

 

December 31,

 

 

 

2021

 

 

2020

 

Land

 

$

11.2

 

 

$

13.3

 

Buildings and improvements

 

 

415.0

 

 

 

422.5

 

Machinery and equipment

 

 

1,391.9

 

 

 

1,398.7

 

Construction in progress

 

 

9.6

 

 

 

11.0

 

Subtotal

 

 

1,827.7

 

 

 

1,845.5

 

Less allowances for depreciation

 

 

(1,317.5

)

 

 

(1,275.7

)

Property, plant and equipment, net

 

$

510.2

 

 

$

569.8

 

Total depreciation expense was $59.8 million, $65.0 million, and $67.4 million for the years ended December 31, 2021, 2020, and 2019, respectively. Depreciation expense for the years ended December 31, 2021, 2020 and 2019 includes $1.5 million, $2.4 million and $1.9 million, respectively, of accelerated depreciation related to the closure of TMS which was announced in the fourth quarter of 2019 and the discontinuation of specific small-diameter seamless mechanical tube manufacturing announced in the third quarter of 2020.

For the year ended December 31, 2021, TimkenSteel recorded approximately $10.6 million of impairment charges related to the indefinite idling of the Harrison melt and casting assets, the impairment of certain assets at our St. Clair facility due to the early termination of a customer program, and the disposition of assets at our former TMS facility. Additionally, the Company recorded a net loss on sale of assets for the year ended December 31, 2021 of $1.3 million related to the disposition of excess assets. For the year ended December 31, 2020, TimkenSteel recorded a net gain on the sale and disposal of assets of $2.6 million, primarily related to the sale of certain TMS assets. For the year ended December 31, 2019, TimkenSteel recorded impairments and loss on disposal of assets of $9.0 million primarily related to the abandonment of certain equipment and the impairment of assets held for sale. See “Note 6 - Disposition of Non-Core Assets” for additional information.

Supplemental cash flow information related to non-cash investing activity was as follows:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Accrued property, plant and equipment purchases

 

$

3.6

 

 

$

2.0

 

 

$

5.3

 
v3.22.0.1
Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

Note 12 - Intangible Assets

The components of intangible assets, net as of December 31, 2021 and 2020 were as follows:

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Customer relationships

 

$

6.3

 

 

$

5.8

 

 

$

0.5

 

 

$

6.3

 

 

$

5.4

 

 

$

0.9

 

Technology use

 

 

9.0

 

 

 

9.0

 

 

 

—

 

 

 

9.0

 

 

 

9.0

 

 

 

—

 

Capitalized software

 

 

57.4

 

 

 

51.2

 

 

 

6.2

 

 

 

58.0

 

 

 

49.6

 

 

 

8.4

 

Total intangible assets

 

$

72.7

 

 

$

66.0

 

 

$

6.7

 

 

$

73.3

 

 

$

64.0

 

 

$

9.3

 

 

Intangible assets subject to amortization are amortized using a straight-line method over their legal or estimated useful lives. The weighted average useful lives of the customer relationships, technology use and capitalized software intangible assets are 15 years, 15 years and 6 years, respectively. The weighted average useful life of total intangible assets is 8 years as of December 31, 2021. Amortization expense for intangible assets for the years ended December 31, 2021, 2020, and 2019 was $3.3 million, $5.0 million and $6.1 million, respectively. Amortization expense in 2020 and 2019 associated with capitalized software includes accelerated amortization of $1.0 million and $0.9 million, respectively, related to the closure of TMS. See “Note 6 - Disposition of Non-Core Assets” for additional information. During the years ended December 31, 2020 and 2019, TimkenSteel recorded a loss on disposal of $0.2 million and $0.1 million, respectively, related to capitalized software. There was no loss on disposal of intangible assets for the year ended December 31, 2021.

Based upon the intangible assets subject to amortization as of December 31, 2021, TimkenSteel’s estimated annual amortization for the five succeeding years is shown below (in millions):

Year

 

Amortization
Expense

 

2022

 

$

2.6

 

2023

 

 

2.1

 

2024

 

 

1.1

 

2025

 

 

0.1

 

2026

 

 

0.1

 
v3.22.0.1
Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases

Note 13 - Leases

The Company has operating leases for office space, warehouses, land, machinery and equipment, vehicles and information technology equipment. These leases have remaining lease terms of less than one year to approximately five years, some of which may include options to extend the lease for one or more years. Certain leases also include options to purchase the leased asset. As of December 31, 2021, the Company has no financing leases. The weighted average remaining lease term for our operating leases as of December 31, 2021 was 2.8 years.

Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the balance sheet. Rather, the Company recognizes lease expense for these leases on a straight-line basis over the lease term in accordance with the applicable accounting guidance. For lease agreements entered into after the adoption of lease accounting guidance on January 1, 2019, the Company combines lease and non-lease components. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants.

The Company recorded lease cost for the years ended December 31, 2021, 2020 and 2019 as follows:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Operating lease cost

 

$

8.2

 

 

$

8.8

 

 

$

7.4

 

Short-term lease cost

 

 

0.7

 

 

 

0.7

 

 

 

1.9

 

Total lease cost

 

$

8.9

 

 

$

9.5

 

 

$

9.3

 

When available, the rate implicit in the lease is used to discount lease payments to present value; however, the Company’s leases generally do not provide a readily determinable implicit rate. Therefore, the incremental borrowing rate to discount the lease payments is estimated using market-based information available at lease commencement. The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2021 and 2020 was 2.7% and 3.2%, respectively.

Supplemental cash flow information related to leases was as follows:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

8.2

 

 

$

8.8

 

 

$

7.5

 

Right-of-use assets obtained in exchange for operating lease obligations

 

$

3.1

 

 

$

12.5

 

 

$

4.3

 

Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows:

2022

 

$

6.0

 

2023

 

 

5.0

 

2024

 

 

2.8

 

2025

 

 

1.1

 

After 2025

 

 

0.2

 

Total future minimum lease payments

 

 

15.1

 

    Less amount of lease payment representing interest

 

 

(0.6

)

Total present value of lease payments

 

$

14.5

 

 

As of December 31, 2021, we have additional operating leases that have not yet commenced for which the present value of the lease payments over the respective lease terms totals approximately $0.9 million. These leases are primarily related to equipment that will support our plant operations. Most of these operating leases will commence in the first half of 2022 with lease terms of approximately 1 year to 5 years. Accordingly, these leases are not recorded on the Consolidated Balance Sheets at December 31, 2021.
v3.22.0.1
Financing Arrangements
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Financing Arrangements

Note 14 - Financing Arrangements

The following table summarizes the current and non-current debt as of December 31, 2021 and 2020:

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Credit Agreement

 

$

—

 

 

$

—

 

Convertible Senior Notes due 2021

 

 

—

 

 

 

38.9

 

Convertible Senior Notes due 2025

 

 

44.9

 

 

 

39.3

 

Total debt

 

$

44.9

 

 

$

78.2

 

     Less current portion of debt

 

 

44.9

 

 

 

38.9

 

Total non-current portion of debt

 

$

—

 

 

$

39.3

 

Amended Credit Agreement

On October 15, 2019, the Company, as borrower, and certain domestic subsidiaries of the Company, as subsidiary guarantors, entered into a Third Amended and Restated Credit Agreement (the "Amended Credit Agreement"), with JP Morgan Chase Bank, N.A., as administrative agent (the "Administrative Agent"), Bank of America, N.A., as syndication agent, and the other lenders party thereto (collectively, the "Lenders"), which further amended and restated the Company’s existing Credit Agreement dated as of January 26, 2018.

The Amended Credit Agreement provides for a $400.0 million asset-based revolving credit facility (the "Credit Facility"), including a $15.0 million sublimit for the issuance of commercial and standby letters of credit and a $40.0 million sublimit for swingline loans. Pursuant to the terms of the Amended Credit Agreement, the Company is entitled, on up to two occasions and subject to the satisfaction of certain conditions, to request increases in the commitments under the Amended Credit Agreement in the aggregate principal amount of up to $100.0 million, to the extent that existing or new lenders agree to provide such additional commitments. In addition to, and independent of any increase described in the preceding sentence, the Company is entitled, subject to the satisfaction of certain conditions, to request a separate first-in, last-out ("FILO") tranche in an aggregate principal amount of up to $30.0 million with a separate borrowing base and interest rate margins, in each case, to be agreed upon among the Company, the Administrative Agent and the Lenders providing the incremental FILO tranche.

The availability of borrowings under the Credit Facility is subject to a borrowing base calculation based upon a valuation of the eligible accounts receivable, inventory and machinery and equipment of the Company and the subsidiary guarantors, each multiplied by an applicable advance rate. The availability of borrowings may be further modified by reserves established from time to time by the Administrative Agent in its permitted discretion.

The interest rate per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either (i) the alternate base rate plus the applicable margin or (ii) the relevant adjusted LIBO rate for an interest period of one, two, three or six months (as selected by the Company) plus the applicable margin. The base rate will be a fluctuating rate per annum equal to the greatest of (i) the prime rate as quoted in The Wall Street Journal, (ii) the effective Federal Reserve Bank of New York rate plus 0.50% and (iii) the adjusted LIBO rate for a one-month interest period on the applicable date, plus 1.00%. The adjusted LIBO rate will be equal to the applicable London interbank offered rate for the selected interest period, as adjusted for statutory reserve requirements for eurocurrency liabilities. The applicable margin will be determined by a pricing grid based on the Company’s average quarterly availability. In addition, the Company will pay a 0.25% per annum commitment fee on the average daily unused amount of the Credit Facility. As of December 31, 2021, the amount available under the Amended Credit Agreement was $251.1 million, reflective of the Company’s asset borrowing base with no outstanding borrowings.

All of the indebtedness under the Credit Facility is guaranteed by the Company’s material domestic subsidiaries, as well as any other domestic subsidiary that the Company elects to make a party to the Amended Credit Agreement, and is secured by substantially all of the personal property of the Company and the subsidiary guarantors.

The Credit Facility matures on October 15, 2024. Prior to the maturity date, amounts outstanding are required to be repaid (without reduction of the commitments thereunder) from mandatory prepayment events from the proceeds of certain asset sales, equity or debt issuances or casualty events.

The Amended Credit Agreement contains certain customary covenants, including covenants that limit the ability of the Company and its subsidiaries to, among other things, (i) incur or suffer to exist certain liens, (ii) make investments, (iii) incur or guaranty additional

indebtedness, (iv) enter into consolidations, mergers, acquisitions, sale-leaseback transactions and sales of assets, (v) make distributions and other restricted payments, (vi) change the nature of its business, (vii) engage in transactions with affiliates and (viii) enter into restrictive agreements, including agreements that restrict the ability to incur liens or make distributions.

In addition, the Amended Credit Agreement requires the Company to maintain a minimum specified fixed charge coverage ratio on a springing basis if minimum availability requirements as specified in the Amended Credit Agreement are not maintained. During 2021, the Amended Credit Agreement also required the Company to maintain certain minimum liquidity as specified in the Amended Credit Agreement from March 1 through June 1, 2021.

The Amended Credit Agreement contains certain customary events of default. If any event of default occurs and is continuing, the Lenders would be entitled to take various actions, including the acceleration of amounts due under the Amended Credit Agreement, and exercise other rights and remedies. As of the year ended December 31, 2021, the Company is in compliance with all covenants outlined in the Amended Credit Agreement.

Convertible Senior Notes due 2021

In May 2016, the Company issued $75.0 million aggregate principal amount of Convertible Senior Notes, and an additional $11.3 million principal amount to cover over-allotments ("Convertible Senior Notes due 2021"). The Indenture for the Convertible Senior Notes due 2021 dated May 31, 2016, which was filed with the Securities and Exchange Commission as an exhibit to a Form 8-K filed on May 31, 2016, contained a complete description of the terms of the Convertible Senior Notes due 2021. The key terms were as follows:

 

Maturity Date:

June 1, 2021 unless repurchased or converted earlier

Interest Rate:

6.0% cash interest per year

Interest Payments Dates:

June 1 and December 1 of each year, beginning on December 1, 2016

Initial Conversion Price:

$12.58 per common share of the Company

Initial Conversion Rate:

79.5165 common shares per $1,000 principal amount of Notes

 

The net proceeds to the Company from the offering were $83.2 million, after deducting the initial underwriters’ discount and fees and the offering expenses payable by the Company. The Company used the net proceeds to repay a portion of the amounts outstanding under its revolving credit agreement.

The initial value of the principal amount recorded as a liability at the date of issuance was $66.9 million, using an effective interest rate of 12.0%. The remaining $19.4 million of principal amount was allocated to the conversion feature and recorded as a component of shareholders’ equity at the date of issuance. This amount represented a discount to the debt to be amortized through interest expense using the effective interest method through the maturity of the Convertible Senior Notes due 2021.

Transaction costs were allocated to the liability and equity components based on their relative values. Transaction costs attributable to the liability component of $2.4 million were amortized to interest expense over the term of the Convertible Senior Notes due 2021, and transaction costs attributable to the equity component of $0.7 million were included in shareholders’ equity.

Convertible Notes Exchange

In December 2020, TimkenSteel entered into separate, privately negotiated exchange agreements with a limited number of holders of the Company’s then outstanding Convertible Senior Notes due 2021. Pursuant to the exchange agreements, the Company exchanged $46.0 million aggregate principal amount of Convertible Senior Notes due 2021 for $46.0 million aggregate principal amount of its new 6.0% Convertible Senior Notes due 2025 ("Convertible Senior Notes due 2025" and, together with the Convertible Senior Notes due 2021, the "Convertible Notes"). The Company did not receive any cash proceeds from the issuance of the Convertible Senior Notes due 2025.

The Company evaluated this exchange and determined that $46.0 million of the Convertible Senior Notes due 2021 were deemed to be extinguished, as the present value of the cash flows under the terms of the Convertible Senior Notes due 2025 were at least 10 percent different from the present value of the remaining cash flows under the terms of the Convertible Senior Notes due 2021, as defined by the relevant accounting standards.

Pursuant to applicable accounting guidance, the fair value of the extinguished portion of Convertible Senior Notes due 2021 was calculated using a market rate of 9.0%, based on comparable debt instruments, and a remaining term of five and a half months. The difference between the

fair value and the net carrying amount of the liability component, calculated below, was recognized on the Consolidated Statements of Operations as a loss on extinguishment of debt for the year ended December 31, 2020.

 

Net carrying amount of extinguished Convertible Senior Notes due 2021 as of December 15, 2020

 

 

 

    Principal

 

$

46.0

 

    Less: Debt issuance costs, net of amortization

 

 

(0.1

)

    Less: Debt discount, net of amortization

 

 

(1.5

)

Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020

 

 

45.3

 

Loss on extinguishment of debt

 

$

(0.9

)

 

The amount allocated to the reacquisition of the equity component, included as a reduction to additional paid-in capital on the Consolidated Balance Sheets, was calculated as follows:

 

Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020

 

$

45.3

 

Principal of extinguished Convertible Senior Notes due 2021

 

 

46.0

 

Reduction of additional paid-in capital in 2020

 

$

(0.7

)

 

The remaining accrued and unpaid interest on the $46.0 million of the extinguished Convertible Senior Notes due 2021 was paid in the amount of $0.1 million to the holders on December 15, 2020.

The components of the Convertible Senior Notes due 2021 as of December 31, 2021 and December 31, 2020 were as follows:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

Principal

 

$

—

 

 

$

40.2

 

Less: Debt issuance costs, net of amortization

 

 

—

 

 

 

(0.1

)

Less: Debt discount, net of amortization

 

 

—

 

 

 

(1.2

)

Convertible Senior Notes due 2021, net

 

$

—

 

 

$

38.9

 

There was no outstanding principal amount for the Convertible Senior Notes due 2021 as of December 31, 2021, as the notes matured on June 1, 2021. The Convertible Senior Notes due 2021 were settled with a cash payment of $38.9 million and the issuance of shares of 0.1 million, as most noteholders exercised the conversion option prior to the date of maturity. For details regarding method of settlement for noteholders who exercised their conversion option prior to maturity, refer to the Indenture for the Convertible Senior Notes due 2021 filed as an exhibit to a Form 8-K on May 31, 2016. The final cash payment for interest in the amount of $1.2 million was also made to noteholders on June 1, 2021.

Convertible Senior Notes due 2025

The Convertible Senior Notes due 2025 were issued pursuant to the provisions of the indenture dated May 31, 2016, as supplemented by a supplemental indenture dated December 15, 2020, which was filed with the Securities and Exchange Commission as an exhibit to a Form 8-K on December 15, 2020. The indentures contain a complete description of the terms of the Convertible Senior Notes due 2025. The key terms are as follows:

 

Maturity Date:

December 1, 2025 unless repurchased or converted earlier

Interest Rate:

6.0% cash interest per year

Interest Payments Dates:

June 1 and December 1 of each year, beginning on December 1, 2021

Initial Conversion Price:

$7.82 per common share of the Company

Initial Conversion Rate:

127.8119 common shares per $1,000 principal amount of Notes

 

The principal amount of the Convertible Senior Notes due 2025 as of December 31, 2021 is $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 are convertible at the option of the 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 fourth quarter of 2021 and as such the notes can be converted at the option of the holders beginning January 1 through March 31, 2022. 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 December 31, 2021.

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.

The components of the Convertible Senior Notes due 2025 as of December 31, 2021 and December 31, 2020 were as follows:

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Principal

 

$

46.0

 

 

$

46.0

 

Less: Debt issuance costs, net of amortization

 

 

(1.1

)

 

 

(1.3

)

Less: Debt discount, net of amortization (1)

 

 

—

 

 

 

(5.4

)

Convertible Senior Notes due 2025, net

 

$

44.9

 

 

$

39.3

 

 

(1) There was no longer a debt discount associated with the Convertible Notes beginning in 2021, as the Company early adopted ASU 2020-06. For more details refer to "Note 2 - Significant Accounting Policies."

 

In January 2022, TimkenSteel repurchased $5.0 million of outstanding principal related to the Convertible Senior Notes Due 2025. Total cash paid to noteholders was $12.4 million. A loss on extinguishment of debt will be recognized in the first quarter of 2022 in the amount of $7.5 million, which includes a charge of $0.1 million for unamortized debt issuance costs related to the portion of debt extinguished, as well as the related transaction costs.

 

Fair Value Measurement

The fair value of the Convertible Senior Notes due 2025 was approximately $107.0 million as of December 31, 2021. 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 December 31, 2021.

Convertible Notes Interest Expense

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

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Contractual interest expense

 

$

3.7

 

 

$

5.2

 

 

$

5.2

 

Amortization of debt issuance costs

 

 

0.4

 

 

 

0.5

 

 

 

0.4

 

Amortization of debt discount

 

 

—

 

 

 

4.4

 

 

 

4.0

 

Total

 

$

4.1

 

 

$

10.1

 

 

$

9.6

 

Cash Interest Paid

The total cash interest paid for the year ended December 31, 2021 , 2020, and 2019 was $5.1 million, $7.6 million and $11.5 million, respectively.
v3.22.0.1
Retirement and Postretirement Plans
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Retirement and Postretirement Plans

Note 15 - Retirement and Postretirement Plans

Eligible TimkenSteel employees, including certain employees in foreign countries, participate in the following TimkenSteel-sponsored plans: TimkenSteel Corporation Retirement Plan ("Salaried Plan"); TimkenSteel Corporation Bargaining Unit Pension Plan ("Bargaining Plan"), Supplemental Pension Plan of TimkenSteel Corporation ("Supplemental Plan"), TimkenSteel U.K. Pension Scheme ("Pension Scheme"), Mexico Pension Plan, and Postretirement Plans made up of TimkenSteel Corporation Bargaining Unit Welfare Benefit Plan for Retirees and TimkenSteel Corporation Welfare Benefit Plan for Retirees.

Plan Amendments

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 will be amortized as part of the pension net periodic benefit cost in future periods. The main change that drove the increase in the pension liability was the addition of a full lump sum form of payment for participants commencing benefits on or after January 1, 2022. In addition, the plan is now closed to new entrants effective January 1, 2022.

Salaried Plan

During the fourth quarter of 2019, the Company amended the Salaried Plan, which provides payments of tax-qualified pension benefits to certain salaried employees of the Company and its subsidiaries, to cease benefit accruals under the Salaried Plan for all remaining active participants, effective as of December 31, 2020. This plan amendment reduced the pension liability, resulting in a curtailment gain of $8.1 million for the year ended December 31, 2019. This curtailment gain was recognized in other (income) expense, net in the Consolidated Statements of Operations. 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 will be terminated effective March 31, 2022. The purchase of an annuity from an insurance company is expected to occur in 2023.

Supplemental Plan

During the fourth quarter of 2019, the Company amended the Supplemental Plan, which provides for the payment of nonqualified supplemental pension benefits to certain salaried participants in the Salaried Plan. The amendment provides for the cessation of benefit accruals under the Supplemental Plan, effective as of December 31, 2020. Effective January 1, 2021, there were no new accruals of benefits, including with respect to service accruals and the final average compensation determination. Certain of the Company’s current and prior named executive officers are participants in the plan. Existing benefits under the plan, as of December 31, 2020, will otherwise continue in accordance with the terms of the plan. This amendment reduced the pension liability, resulting in a curtailment gain of $0.8 million for the year ended December 31, 2019. This curtailment gain was recognized in other (income) expense, net in the Consolidated Statements of Operations.

Postretirement Plans

During the second quarter of 2019, the Company amended the TimkenSteel Corporation Bargaining Unit Welfare Plan for Retirees related to moving Medicare-eligible retirees to an individual plan on a Medicare healthcare exchange. The amendment reduced the postretirement liability by $70.2 million and required the Company to perform a full remeasurement of its obligation and plan assets as of April 30, 2019. The $70.2 million reduction in the APBO was recognized in other comprehensive income (loss) in 2019 and is being amortized as an offset to postretirement benefit cost over a period of 12 years (average remaining service period). In addition to the reduction of the APBO, the Company recognized a net remeasurement loss of $4.4 million for the year ended December 31, 2019.

During the fourth quarter of 2019, the Company also amended the TimkenSteel Corporation Welfare Benefit Plan for Retirees, under which certain retired salaried employees of the Company and its subsidiaries are eligible to receive a Company contribution for their medical and prescription drug benefits under the retiree welfare plan. The amendment eliminated the retiree medical subsidy, effective as of December 31, 2019, for all remaining active salaried participants who retire after December 31, 2019 (provided, however, that participants who were laid off on or before March 31, 2020 and who otherwise qualified for the retiree medical subsidy under the terms of the retiree welfare plan remained entitled to receive the retiree medical subsidy). This plan amendment reduced the postretirement liability by $2.3 million in 2019, was recognized in other comprehensive income (loss) in 2019 and is being amortized as an offset to postretirement benefit cost in future periods.

Pension benefits earned are generally based on years of service and compensation during active employment. TimkenSteel’s funding policy is consistent with the funding requirements of applicable laws and regulations. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for the various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance.

 

The following table sets forth the change in benefit obligation for the defined benefit pension plans as of December 31, 2021:
 

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in benefit obligation:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Benefit obligation at the beginning of year

 

$

1,053.9

 

 

$

228.7

 

 

$

27.3

 

 

$

84.8

 

 

$

0.4

 

 

$

1,395.1

 

 

$

128.3

 

Service cost

 

 

17.0

 

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17.4

 

 

 

1.2

 

Interest cost

 

 

28.4

 

 

 

5.9

 

 

 

0.8

 

 

 

1.1

 

 

 

—

 

 

 

36.2

 

 

 

3.2

 

Actuarial (gains) losses

 

 

(31.6

)

 

 

(5.1

)

 

 

(1.5

)

 

 

0.3

 

 

 

—

 

 

 

(37.9

)

 

 

(6.0

)

Benefits paid

 

 

(56.5

)

 

 

(11.4

)

 

 

(3.0

)

 

 

(3.0

)

 

 

—

 

 

 

(73.9

)

 

 

(8.9

)

Plan amendment

 

 

14.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14.2

 

 

 

—

 

Settlements

 

 

—

 

 

 

(31.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(31.1

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.8

)

 

 

—

 

 

 

(0.8

)

 

 

—

 

Benefit obligation at the end of year

 

$

1,025.4

 

 

$

187.4

 

 

$

23.6

 

 

$

82.4

 

 

$

0.4

 

 

$

1,319.2

 

 

$

117.8

 

The following table sets forth the change in benefit obligation for the defined benefit pension plans as of December 31, 2020:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in benefit obligation:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Benefit obligation at the beginning of year

 

$

973.3

 

 

$

234.1

 

 

$

25.2

 

 

$

78.4

 

 

$

0.4

 

 

$

1,311.4

 

 

$

126.2

 

Service cost

 

 

16.9

 

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19.4

 

 

 

1.0

 

Interest cost

 

 

33.3

 

 

 

7.0

 

 

 

0.9

 

 

 

1.5

 

 

 

—

 

 

 

42.7

 

 

 

4.2

 

Actuarial (gains) losses

 

 

86.3

 

 

 

21.6

 

 

 

1.8

 

 

 

5.0

 

 

 

0.1

 

 

 

114.8

 

 

 

6.1

 

Benefits paid

 

 

(55.9

)

 

 

(11.9

)

 

 

(0.6

)

 

 

(2.8

)

 

 

—

 

 

 

(71.2

)

 

 

(9.2

)

Plan amendment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Settlements

 

 

—

 

 

 

(24.6

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(24.7

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.7

 

 

 

—

 

 

 

2.7

 

 

 

—

 

Benefit obligation at the end of year

 

$

1,053.9

 

 

$

228.7

 

 

$

27.3

 

 

$

84.8

 

 

$

0.4

 

 

$

1,395.1

 

 

$

128.3

 

Significant actuarial gains related to changes in benefit obligations for 2021 primarily resulted from an increase in discount rates. Significant actuarial losses related to changes in benefit obligations for 2020 primarily resulted from a decrease in discount rates.

 

The following table sets forth the change in plan assets and funded status for the defined benefit pension plans as of December 31, 2021:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in plan assets:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Fair value of plan assets at the beginning of year

 

$

884.3

 

 

$

243.3

 

 

$

—

 

 

$

103.8

 

 

$

0.3

 

 

$

1,231.7

 

 

$

82.2

 

Actual return on plan assets

 

 

35.0

 

 

 

4.9

 

 

 

—

 

 

 

4.7

 

 

 

—

 

 

 

44.6

 

 

 

2.4

 

Company contributions / payments

 

 

—

 

 

 

—

 

 

 

3.0

 

 

 

2.8

 

 

 

—

 

 

 

5.8

 

 

 

1.1

 

Benefits paid

 

 

(56.5

)

 

 

(11.4

)

 

 

(3.0

)

 

 

(3.0

)

 

 

—

 

 

 

(73.9

)

 

 

(8.9

)

Settlements

 

 

—

 

 

 

(31.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(31.1

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.1

)

 

 

—

 

 

 

(1.1

)

 

 

—

 

Fair value of plan assets at end of year

 

$

862.8

 

 

$

205.7

 

 

$

—

 

 

$

107.2

 

 

$

0.3

 

 

$

1,176.0

 

 

$

76.8

 

Funded status at end of year

 

$

(162.6

)

 

$

18.3

 

 

$

(23.6

)

 

$

24.8

 

 

$

(0.1

)

 

$

(143.2

)

 

$

(41.0

)

The following table sets forth the change in plan assets and funded status for the defined benefit pension plans as of December 31, 2020:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in plan assets:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Fair value of plan assets at the beginning of year

 

$

817.3

 

 

$

243.6

 

 

$

—

 

 

$

94.1

 

 

$

0.4

 

 

$

1,155.4

 

 

$

82.3

 

Actual return on plan assets

 

 

122.9

 

 

 

36.2

 

 

 

—

 

 

 

7.9

 

 

 

—

 

 

 

167.0

 

 

 

7.0

 

Company contributions / payments

 

 

—

 

 

 

—

 

 

 

0.6

 

 

 

1.3

 

 

 

—

 

 

 

1.9

 

 

 

—

 

Benefits paid

 

 

(55.9

)

 

 

(11.9

)

 

 

(0.6

)

 

 

(2.8

)

 

 

—

 

 

 

(71.2

)

 

 

(7.1

)

Settlements

 

 

—

 

 

 

(24.6

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(24.7

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.3

 

 

 

—

 

 

 

3.3

 

 

 

—

 

Fair value of plan assets at end of year

 

$

884.3

 

 

$

243.3

 

 

$

—

 

 

$

103.8

 

 

$

0.3

 

 

$

1,231.7

 

 

$

82.2

 

Funded status at end of year

 

$

(169.5

)

 

$

14.5

 

 

$

(27.3

)

 

$

19.0

 

 

$

(0.1

)

 

$

(163.4

)

 

$

(46.1

)

 

The Salaried Plan has a provision that permits employees to elect to receive their pension benefits in a lump sum. In the first quarter of 2021, the cumulative cost of all lump sum payments was projected to exceed the sum of the service cost 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 each quarter of 2021. A full remeasurement of the pension obligations and plan assets associated with the Salaried Plan was also required throughout each quarter of 2020. For the years ended December 31, 2021 and December 31, 2020, total settlements were $31.1 million and $24.7 million, respectively. These settlements are included in the tables above and in the net remeasurement losses (gains) as a component of net periodic benefit cost.

For the years ended December 31, 2021 and 2020, all pension plans had administrative expenses of $3.0 million and $3.8 million, respectively. These expenses are included in benefits paid in the tables above.

The accumulated benefit obligation at December 31, 2021 exceeded the fair value of plan assets for the Bargaining Plan and the unfunded Supplemental Plan. For the Bargaining Plan and Supplemental Plan, the accumulated benefit obligation was $1,009.6 million and $23.6 million, respectively, as of December 31, 2021.

The total pension accumulated benefit obligation for all plans was $1,303.2 million and $1,377.6 million as of December 31, 2021 and 2020, respectively.

Amounts recognized on the balance sheet at December 31, 2021 for TimkenSteel’s pension and postretirement benefit plans include:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Non-current assets

 

$

—

 

 

$

18.3

 

 

$

—

 

 

$

24.8

 

 

$

—

 

 

$

43.1

 

 

$

—

 

Current liabilities

 

 

—

 

 

 

—

 

 

 

(2.6

)

 

 

—

 

 

 

—

 

 

 

(2.6

)

 

 

(1.7

)

Non-current liabilities

 

 

(162.6

)

 

 

—

 

 

 

(21.0

)

 

 

—

 

 

 

(0.1

)

 

 

(183.7

)

 

 

(39.3

)

Total

 

$

(162.6

)

 

$

18.3

 

 

$

(23.6

)

 

$

24.8

 

 

$

(0.1

)

 

$

(143.2

)

 

$

(41.0

)

Amounts recognized on the balance sheet at December 31, 2020 for TimkenSteel’s pension and postretirement benefit plans include:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Non-current assets

 

$

—

 

 

$

14.5

 

 

$

—

 

 

$

19.0

 

 

$

—

 

 

$

33.5

 

 

$

—

 

Current liabilities

 

 

—

 

 

 

—

 

 

 

(0.6

)

 

 

—

 

 

 

—

 

 

 

(0.6

)

 

 

(1.7

)

Non-current liabilities

 

 

(169.5

)

 

 

—

 

 

 

(26.7

)

 

 

—

 

 

 

(0.1

)

 

 

(196.3

)

 

 

(44.4

)

Total

 

$

(169.5

)

 

$

14.5

 

 

$

(27.3

)

 

$

19.0

 

 

$

(0.1

)

 

$

(163.4

)

 

$

(46.1

)

Included in accumulated other comprehensive income (loss) at December 31, 2021 were the following before-tax amounts that had not been recognized in net periodic benefit cost:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Unrecognized prior service (benefit) cost

 

$

13.6

 

 

$

—

 

 

$

—

 

 

$

0.6

 

 

$

—

 

 

$

14.2

 

 

$

(55.9

)

 

Included in accumulated other comprehensive income (loss) at December 31, 2020 were the following before-tax amounts that had not been recognized in net periodic benefit cost:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Unrecognized prior service (benefit) cost

 

$

(0.4

)

 

$

—

 

 

$

—

 

 

$

0.6

 

 

$

—

 

 

$

0.2

 

 

$

(61.9

)

The weighted average assumptions used in determining benefit obligation as of December 31, 2021 and 2020 were as follows:

 

 

Pension

 

 

Postretirement

 

Assumptions:

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Discount rate

 

 

2.96

%

 

 

2.68

%

 

 

3.00

%

 

 

2.65

%

Future compensation assumption

 

 

3.00

%

 

 

2.29

%

 

n/a

 

 

n/a

 

The weighted average assumptions used in determining benefit cost for the years ended December 31, 2021 and 2020 were as follows:

 

 

 

Pension

 

 

Postretirement

 

Assumptions:

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Discount rate

 

 

2.68

%

 

 

3.42

%

 

 

2.65

%

 

 

3.42

%

Future compensation assumption

 

 

2.29

%

 

 

2.32

%

 

n/a

 

 

n/a

 

Expected long-term return on plan assets

 

 

5.76

%

 

 

5.80

%

 

 

4.50

%

 

 

4.50

%

 

The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolios. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance.

For measurement purposes, TimkenSteel assumed a weighted-average annual rate of increase in the per capita cost ("health care cost trend rate") of 10.00% and 5.50% for 2021 and 2020, respectively.

The components of net periodic benefit cost (income) for the year ended December 31, 2021 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Components of net periodic benefit cost (income):

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

17.0

 

 

$

0.4

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

17.4

 

 

$

1.2

 

Interest cost

 

 

28.4

 

 

 

5.9

 

 

 

0.8

 

 

 

1.1

 

 

 

—

 

 

 

36.2

 

 

 

3.2

 

Expected return on plan assets

 

 

(51.5

)

 

 

(12.6

)

 

 

—

 

 

 

(3.3

)

 

 

—

 

 

 

(67.4

)

 

 

(3.4

)

Amortization of prior service cost

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

(6.0

)

Curtailment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net remeasurement losses (gains)

 

 

(15.1

)

 

 

2.5

 

 

 

(1.5

)

 

 

(1.1

)

 

 

—

 

 

 

(15.2

)

 

 

(4.9

)

Net Periodic Benefit Cost (Income)

 

$

(21.0

)

 

$

(3.8

)

 

$

(0.7

)

 

$

(3.3

)

 

$

—

 

 

$

(28.8

)

 

$

(9.9

)

 

The components of net periodic benefit cost (income) for the year ended December 31, 2020 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Components of net periodic benefit cost (income):

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

16.9

 

 

$

2.5

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

19.4

 

 

$

1.0

 

Interest cost

 

 

33.3

 

 

 

7.0

 

 

 

0.9

 

 

 

1.5

 

 

 

—

 

 

 

42.7

 

 

 

4.2

 

Expected return on plan assets

 

 

(47.5

)

 

 

(13.5

)

 

 

—

 

 

 

(3.3

)

 

 

—

 

 

 

(64.3

)

 

 

(3.5

)

Amortization of prior service cost

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

(6.0

)

Curtailment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net remeasurement losses (gains)

 

 

10.8

 

 

 

(1.0

)

 

 

1.8

 

 

 

0.4

 

 

 

0.1

 

 

 

12.1

 

 

 

2.6

 

Net Periodic Benefit Cost (Income)

 

$

13.8

 

 

$

(5.0

)

 

$

2.7

 

 

$

(1.4

)

 

$

0.1

 

 

$

10.2

 

 

$

(1.7

)

The components of net periodic benefit cost (income) for the year ended December 31, 2019 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Components of net periodic benefit cost (income):

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

14.9

 

 

$

2.4

 

 

$

—

 

 

$

0.1

 

 

$

—

 

 

$

17.4

 

 

$

1.1

 

Interest cost

 

 

36.8

 

 

 

9.4

 

 

 

0.8

 

 

 

1.9

 

 

 

—

 

 

 

48.9

 

 

 

5.9

 

Expected return on plan assets

 

 

(47.0

)

 

 

(13.6

)

 

 

—

 

 

 

(4.4

)

 

 

—

 

 

 

(65.0

)

 

 

(3.9

)

Amortization of prior service cost

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

(3.8

)

Curtailment

 

 

—

 

 

 

(8.1

)

 

 

(0.8

)

 

 

—

 

 

 

—

 

 

 

(8.9

)

 

 

—

 

Net remeasurement losses (gains)

 

 

41.7

 

 

 

(2.0

)

 

 

4.2

 

 

 

(0.9

)

 

 

0.1

 

 

 

43.1

 

 

 

6.4

 

Net Periodic Benefit Cost (Income)

 

$

46.8

 

 

$

(11.9

)

 

$

4.2

 

 

$

(3.3

)

 

$

0.1

 

 

$

35.9

 

 

$

5.7

 

TimkenSteel recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, TimkenSteel also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolios is based on expected rates of return for various asset classes, as well as historical asset class and fund performance.

The target allocations for each plan's assets are as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Target Allocations:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

Pension
Scheme

 

 

Pension
Plan

 

 

Weighted
Average
Pension

 

 

Weighted
Average
Postretirement
Plans

 

Equity securities

 

 

35.0

%

 

 

—

 

 

n/a

 

 

16.7

%

 

 

—

 

 

 

27.2

%

 

 

20.0

%

Debt securities

 

 

49.0

%

 

 

80.0

%

 

n/a

 

 

33.3

%

 

 

100.0

%

 

 

53.0

%

 

 

77.5

%

Other investments

 

 

16.0

%

 

 

20.0

%

 

n/a

 

 

50.0

%

 

 

—

 

 

 

19.8

%

 

 

2.5

%

 

As of December 31, 2021, we were in the process of transitioning to these target investment allocations, which have been updated to reflect the respective risk profiles of each plan at the end of the year.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date ("exit price"). The inputs used to measure fair value are classified into the following hierarchy:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

Level 3 - Unobservable inputs for the asset or liability.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2021:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

87.6

 

 

$

1.2

 

 

$

86.4

 

 

$

—

 

U.S government and agency securities

 

 

173.9

 

 

 

166.7

 

 

 

7.2

 

 

 

—

 

Corporate bonds

 

 

244.7

 

 

 

—

 

 

 

244.7

 

 

 

—

 

Equity securities

 

 

25.3

 

 

 

25.3

 

 

 

—

 

 

 

—

 

Other

 

 

0.3

 

 

 

—

 

 

 

0.3

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

531.8

 

 

$

193.2

 

 

$

338.6

 

 

$

—

 

Assets measured at net asset value (1)

 

 

644.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

1,176.0

 

 

$

193.2

 

 

$

338.6

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, hedge funds, and risk parity investments. As of December 31, 2021, these assets are redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2020:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9.2

 

 

$

0.9

 

 

$

8.3

 

 

$

—

 

U.S government and agency securities

 

 

345.7

 

 

 

337.4

 

 

 

8.3

 

 

 

—

 

Corporate bonds

 

 

276.9

 

 

 

—

 

 

 

276.9

 

 

 

—

 

Equity securities

 

 

68.5

 

 

 

68.5

 

 

 

—

 

 

 

—

 

Mutual fund - fixed income

 

 

0.1

 

 

 

0.1

 

 

 

—

 

 

 

—

 

Mutual fund - equities

 

 

22.0

 

 

 

22.0

 

 

 

—

 

 

 

—

 

Other

 

 

0.2

 

 

 

—

 

 

 

0.2

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

722.6

 

 

$

428.9

 

 

$

293.7

 

 

$

—

 

Assets measured at net asset value (1)

 

 

509.1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

1,231.7

 

 

$

428.9

 

 

$

293.7

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and risk parity investments. As of December 31, 2020, these assets were redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2021:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3.8

 

 

$

3.8

 

 

$

—

 

 

$

—

 

Mutual fund - fixed income

 

 

5.8

 

 

 

5.8

 

 

 

—

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

9.6

 

 

$

9.6

 

 

$

—

 

 

$

—

 

Assets measured at net asset value (1)

 

 

67.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

76.8

 

 

$

9.6

 

 

$

—

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, hedge funds, and risk parity investments. As of December 31, 2021, these assets are redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2020:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3.0

 

 

$

3.0

 

 

$

—

 

 

$

—

 

Mutual fund - fixed income

 

 

11.7

 

 

 

11.7

 

 

 

—

 

 

 

—

 

Mutual fund - equities

 

 

5.0

 

 

 

5.0

 

 

 

—

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

19.7

 

 

$

19.7

 

 

$

—

 

 

$

—

 

Assets measured at net asset value (1)

 

 

62.5

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

82.2

 

 

$

19.7

 

 

$

—

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and risk parity investments. As of December 31, 2020, these assets were redeemable at net asset value within 90 days.

Future benefit payments are expected to be as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Benefit Payments:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

2022

 

$

76.2

 

 

$

15.4

 

 

$

2.3

 

 

$

2.2

 

 

$

—

 

 

$

96.1

 

 

$

10.5

 

2023

 

 

71.1

 

 

 

15.8

 

 

 

0.5

 

 

 

2.3

 

 

 

—

 

 

 

89.7

 

 

 

9.7

 

2024

 

 

70.1

 

 

 

14.2

 

 

 

0.6

 

 

 

2.4

 

 

 

—

 

 

 

87.3

 

 

 

8.9

 

2025

 

 

71.7

 

 

 

12.9

 

 

 

0.6

 

 

 

2.5

 

 

 

—

 

 

 

87.7

 

 

 

8.4

 

2026

 

 

72.8

 

 

 

12.5

 

 

 

0.5

 

 

 

2.4

 

 

 

—

 

 

 

88.2

 

 

 

8.0

 

2027-2031

 

 

356.7

 

 

 

57.0

 

 

 

17.8

 

 

 

13.0

 

 

 

0.5

 

 

 

445.0

 

 

 

36.4

 

The Company expects to make required contributions and payments to its pension and postretirement plans of $5.3 million in the next 12 months and $33.0 million from 2023 through 2031.

Due to the provisions of the ARPA, required Company contributions related to the Bargaining Plan are not projected to begin until after 2031 based on current forecasts. As such, all Bargaining Plan benefit payments noted above are anticipated to be made from plan assets. Refer to "Note 2 - Significant Accounting Policies" for additional details.

 

Defined Contribution Plans

The Company recorded expense primarily related to employer matching and non-discretionary contributions to these defined contribution plans of $2.8 million in 2021, $3.2 million in 2020, and $7.1 million in 2019. Effective June 1, 2020, the Company suspended employer matching contributions for all salaried employees. The Company reinstated employer matching contributions effective March 1, 2021. Additionally, the Company discontinued non-discretionary contributions as of January 1, 2021.
v3.22.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 16 - Stock-Based Compensation

Description of the Plan

On May 6, 2020, shareholders of TimkenSteel approved the TimkenSteel Corporation 2020 Equity and Incentive Compensation Plan ("TimkenSteel 2020 Plan"), which replaced the previously approved TimkenSteel Corporation Amended and Restated 2014 Equity and Incentive Compensation Plan ("TimkenSteel 2014 Plan"). The TimkenSteel 2020 Plan authorizes the Compensation Committee to provide cash awards and equity-based compensation in the form of stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, performance units, dividend equivalents, and certain other awards for the primary purpose of providing our employees, officers and directors incentives and rewards for service and/or performance. Subject to adjustment as described in the TimkenSteel 2020 Plan, and subject to the TimkenSteel 2020 Plan share counting rules, a total of 2.0 million common shares of the Company are available for awards granted under the TimkenSteel 2020 Plan (plus shares subject to awards granted under the TimkenSteel 2020 Plan or the TimkenSteel 2014 Plan that are canceled or forfeited, expire, are settled for cash, or are unearned to the extent of such cancellation, forfeiture, expiration, cash settlement or unearned amount, as further described in the TimkenSteel 2020 Plan). These shares may be shares of original issuance or treasury shares, or a combination of both. The aggregate number of shares available under the TimkenSteel 2020 Plan will generally be reduced by one common share for every one share subject to an award granted under the TimkenSteel 2020 Plan. The TimkenSteel 2020 Plan also provides that, subject to adjustment as described in the TimkenSteel 2020 Plan: (1) the aggregate number of common shares actually issued or transferred upon the exercise of incentive stock options will not exceed 2.0 million common shares; and (2) no non-employee director of the Company will be granted, in any period of one calendar year, compensation for such service having an aggregate maximum value (measured at the grant date as applicable, and calculating the value of any awards based on the grant date fair value for financial reporting purposes) in excess of $0.5 million.

On May 5, 2021, shareholders approved the TimkenSteel Corporation Amended and Restated 2020 Equity and Incentive Compensation Plan (the “Amended 2020 Plan”), which amended and restated the TimkenSteel 2020 plan. In general, the Amended 2020 Plan modified the TimkenSteel 2020 Plan to (1) increase the number of common shares, without par value, of the Company available for awards by 2,000,000 shares, (2) correspondingly increase the limit on shares that may be issued or transferred upon the exercise of incentive stock options by 2,000,000 shares, (3) remove the TimkenSteel 2020 Plan’s full value award limit of 1.8 million shares and (4) extend the plan term until May 5, 2031. In addition, the Amended 2020 Plan made certain other conforming, clarifying or non-substantive changes to the terms of the TimkenSteel 2020 Plan to implement the Amended 2020 Plan but did not make other material changes to the TimkenSteel 2020 Plan.

As of December 31, 2021, approximately 4.0 million shares of TimkenSteel common stock remained available for grants under the Amended 2020 Plan.

Stock Options

The following table provides the significant assumptions used to calculate the grant date fair values of stock options granted using a Black-Scholes option pricing method:

 

 

 

2020

 

 

 

2019

 

 

Weighted-average fair value per option

 

$

2.23

 

 

 

$

5.54

 

 

Risk-free interest rate

 

 

0.96

 

%

 

 

2.63

 

%

Dividend yield

 

 

—

 

%

 

 

—

 

%

Expected stock volatility

 

 

42.67

 

%

 

 

41.36

 

%

Expected life - years

 

 

6

 

 

 

 

6

 

 

There were no stock options granted during 2021.

The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected annual dividend yield is estimated using the most recent dividend payment per share as of the grant date, of which no dividends were paid in these grant periods. Because of the absence of adequate stock price history of TimkenSteel common stock, expected volatility related to stock option awards granted subsequent to the spinoff is based on the historical volatility of a selected group of peer companies’ stock. The expected life of stock option awards granted is based on historical data and represents the period of time that options granted are expected to be held prior to exercise.

The following summarizes TimkenSteel stock option activity from January 1, 2021 to December 31, 2021:

 

 

 

Number of
Shares

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic Value
(millions)

 

Outstanding as of December 31, 2020

 

 

2,931,065

 

 

$

18.61

 

 

 

 

 

 

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(527,870

)

 

 

7.74

 

 

 

 

 

 

 

Canceled, forfeited or expired

 

 

(349,107

)

 

 

24.42

 

 

 

 

 

 

 

Outstanding as of December 31, 2021

 

 

2,054,088

 

 

$

20.41

 

 

 

4.4

 

 

$

5.6

 

Options expected to vest

 

 

314,180

 

 

 

7.53

 

 

 

7.8

 

 

 

2.8

 

Options exercisable

 

 

1,739,908

 

 

$

22.74

 

 

 

3.8

 

 

$

2.8

 

 

Stock options presented in the table above represent TimkenSteel awards only, including those held by The Timken Company employees.

Time-Based Restricted Stock Units

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 occur during the vesting period.

The following summarizes TimkenSteel stock-settled, time-based restricted stock unit activity from January 1, 2021 to December 31, 2021:

 

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding as of December 31, 2020

 

 

1,372,326

 

 

$

7.62

 

Granted

 

 

938,995

 

 

 

7.70

 

Vested

 

 

(545,453

)

 

 

7.02

 

Canceled, forfeited or expired

 

 

(97,818

)

 

 

7.53

 

Outstanding as of December 31, 2021

 

 

1,668,050

 

 

$

7.92

 

Performance-Based Restricted Stock Units

Performance-based restricted stock units issued in 2020 and 2021 are earned based on the average payout (determined under a Compensation Committee approved matrix) for the Company’s relative total shareholder return as compared to an identified peer group of steel companies. The overall vesting period is generally three years, with relative total shareholder return measured for the one, two and three-year periods creating effectively a “nested” 1-year, 2-year, and 3-year plan to support rapid and sustained shareholder value creation. Relative total shareholder return is calculated for each nested performance period by taking the beginning and ending price points based off a 20-trading day average closing stock price as of December 31.

The following summarizes TimkenSteel stock-settled performance-based restricted stock unit activity from January 1, 2021 to December 31, 2021:

 

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding as of December 31, 2020

 

 

175,964

 

 

$

4.98

 

Granted

 

 

651,240

 

 

 

7.57

 

Canceled, forfeited or expired

 

 

(33,160

)

 

 

10.12

 

Outstanding as of December 31, 2021

 

 

794,044

 

 

$

6.91

 

 

Other Information

TimkenSteel recognized stock-based compensation expense of $7.3 million, $6.6 million and $7.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

As of December 31, 2021, future stock-based compensation expense related to the unvested portion of all awards is approximately $9.7 million, which is expected to be recognized over a weighted average period of 1.6 years.
v3.22.0.1
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 17 - Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2021 and 2020 by component were as follows:

 

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability
Adjustments

 

 

Total

 

Balance as of December 31, 2020

 

$

(5.4

)

 

$

45.8

 

 

$

40.4

 

Other comprehensive income before reclassifications, before income tax

 

 

0.3

 

 

 

—

 

 

 

0.3

 

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

 

—

 

 

 

(5.8

)

 

 

(5.8

)

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

 

—

 

 

 

(14.2

)

 

 

(14.2

)

Tax effect

 

—

 

 

 

—

 

 

 

—

 

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

 

 

0.3

 

 

 

(20.0

)

 

 

(19.7

)

Balance as of December 31, 2021

 

$

(5.1

)

 

$

25.8

 

 

$

20.7

 

 

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability
Adjustments

 

 

Total

 

Balance as of December 31, 2019

 

$

(6.8

)

 

$

51.5

 

 

$

44.7

 

Other comprehensive income before reclassifications, before income tax

 

 

1.4

 

 

 

—

 

 

 

1.4

 

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

 

—

 

 

 

(5.6

)

 

 

(5.6

)

Tax effect

 

—

 

 

 

(0.1

)

 

 

(0.1

)

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

 

 

1.4

 

 

 

(5.7

)

 

 

(4.3

)

Balance as of December 31, 2020

 

$

(5.4

)

 

$

45.8

 

 

$

40.4

 

 

The amount reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2021 and December 31, 2020 for the pension and postretirement liability adjustment was included in other (income) expense, net in the Consolidated Statements of Operations. The amount deferred to accumulated other comprehensive income (loss) for the year ended December 31, 2021 was a result of a plan amendment to the Company's Bargaining Plan. For more details refer to "Note 15 - Retirement and Postretirement Plans."
v3.22.0.1
Contingencies
 12 Months Ended
Dec. 31, 2021
Loss Contingency Accrual, Disclosures [Abstract]  
Contingencies

Note 18 – 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 December 31, 2021 and 2020, TimkenSteel had a $0.3 million and $1.0 million contingency reserve, respectively, related to loss exposures incurred in the ordinary course of business.
v3.22.0.1
Schedule II-Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II-Valuation and Qualifying Accounts

Schedule II-Valuation and Qualifying Accounts

 

Allowance for uncollectible accounts:

 

2021

 

 

2020

 

 

2019

 

Balance at Beginning of Period

 

$

1.3

 

 

$

1.5

 

 

$

1.7

 

Additions:

 

 

 

 

 

 

 

 

 

Charged to Costs and Expenses (1)

 

 

0.6

 

 

—

 

 

—

 

Deductions (2)

 

 

—

 

 

 

(0.2

)

 

 

(0.2

)

Balance at End of Period

 

$

1.9

 

 

$

1.3

 

 

$

1.5

 

Allowance for inventory reserves:

 

2021

 

 

2020

 

 

2019

 

Balance at Beginning of Period

 

$

13.9

 

 

$

10.7

 

 

$

6.1

 

Additions:

 

 

 

 

 

 

 

 

 

Charged to Costs and Expenses (3)

 

 

2.8

 

 

 

4.1

 

 

 

9.0

 

Deductions (4)

 

 

(15.9

)

 

 

(0.9

)

 

 

(4.4

)

Balance at End of Period

 

$

0.8

 

 

$

13.9

 

 

$

10.7

 

Valuation allowance on deferred tax assets:

 

2021

 

 

2020

 

 

2019

 

Balance at Beginning of Period

 

$

47.7

 

 

$

34.9

 

 

$

43.7

 

Additions:

 

 

 

 

 

 

 

 

 

Charged to Costs and Expenses (5)

 

—

 

 

 

12.4

 

 

—

 

Charged to Other Accounts (6)

 

 

4.8

 

 

 

1.4

 

 

 

16.7

 

Deductions (7)

 

 

(37.0

)

 

 

(1.0

)

 

 

(25.5

)

Balance at End of Period

 

$

15.5

 

 

$

47.7

 

 

$

34.9

 


(1) Provision for uncollectible accounts included in expenses.


(2) Actual accounts written off against the allowance, net of recoveries.


(3) Provisions for surplus and obsolete inventory and lower cost or net realizable value included in expenses.


(4) Inventory items released against the allowance, either via write-off or a recovery. The allowance for inventory reserves decreased in 2021 due to sales of TMS inventory, along with the selling and scrapping of aged inventory.

(5) Increase in valuation allowance is recorded as a component of the provision for income taxes.

(6) Amount relates to valuation allowances recorded against other comprehensive income (loss).

(7) For the year ended December 31, 2021, this amount relates to the release of the valuation allowance against tax loss carryforwards used during 2021. For the year ended December 31, 2020, this amount relates to an additional paid-in capital adjustment associated with the Convertible Notes. For the year ended December 31, 2019, this amount relates to the change in accounting principle from LIFO to FIFO.
v3.22.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Revenue Recognition

Revenue Recognition:

TimkenSteel recognizes revenue from contracts at a point in time when it has satisfied its performance obligation and the customer obtains control of the goods, at the amount that reflects the consideration the Company expects to receive for those goods. The Company receives and acknowledges purchase orders from its customers, which define the quantity, pricing, payment and other applicable terms and conditions. In some cases, the Company receives a blanket purchase order from its customer, which includes pricing, payment and other terms and conditions, with quantities defined at the time the customer issues periodic releases from the blanket purchase order. Certain contracts contain variable consideration, which primarily consists of rebates that are accounted for in net sales and accrued based on the estimated probability of the requirements being met.
Cash Equivalents

Cash Equivalents:

TimkenSteel considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Accounts Receivables, Net

Accounts Receivables, Net:

The Company’s accounts receivables arise from sales to customers across the mobile, industrial, energy, and other end-market sectors. The allowance for doubtful account reserve has been established using qualitative and quantitative methods. In general, account balances greater than one year of age or sent to third party collection are fully reserved. Account balances for customers that are viewed as higher risk are also analyzed for a reserve. In addition to these methods, the allowance for doubtful accounts is adjusted for forward looking estimates of uncollectible balances based on end-market sector outlook and dynamics. Historically, TimkenSteel’s allowance for doubtful accounts write-offs have been immaterial.
Inventories, Net

Inventories, Net:

Inventories are stated at lower of cost or net realizable value. All inventories, including raw materials, manufacturing supplies inventory, as well as international (outside the U.S.) inventories, have been valued using the FIFO or average cost method.
Property, Plant and Equipment, Net

Property, Plant and Equipment, Net:

Property, plant and equipment, net are valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings and 3 to 20 years for machinery and equipment.
Intangible Assets, Net

Intangible Assets, Net:

Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from 3 to 15 years.

In accordance with applicable accounting guidance, TimkenSteel capitalizes certain costs incurred for computer software developed or obtained for internal use. TimkenSteel capitalizes substantially all external costs and qualifying internal costs related to the purchase and implementation of software projects used for business operations. Capitalized software costs primarily include purchased software and external consulting fees. Capitalized software projects are amortized over the estimated useful lives of the software.
Long-lived Assets

Long-lived Assets:

Long-lived assets (including tangible assets and intangible assets subject to amortization) are reviewed for impairment when events or changes in circumstances have occurred indicating that the carrying value of the assets may not be recoverable.

TimkenSteel tests recoverability of long-lived assets at the lowest level for which there are identifiable cash flows that are independent from the cash flows of other assets. Assets and asset groups held and used are measured for recoverability by comparing the carrying amount of the asset or asset group to the sum of future undiscounted net cash flows expected to be generated by the asset or asset group.

Assumptions and estimates about future values and remaining useful lives of TimkenSteel’s long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends and internal factors such as changes in TimkenSteel’s business strategy and internal forecasts.

If an asset or asset group is considered to be impaired, the impairment loss that would be recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. To determine fair value, TimkenSteel uses internal cash flow estimates discounted at an appropriate interest rate, third party appraisals, as appropriate, and/or market prices of similar assets, when available.

Refer to “Note 6 - Disposition of Non-Core Assets” and “Note 11 - Property, Plant and Equipment” for additional information.
Product Warranties

Product Warranties:

TimkenSteel accrues liabilities for warranties based upon specific claim incidents in accordance with accounting rules relating to contingent liabilities. Should TimkenSteel become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. TimkenSteel had warranty claims in the amount of $1.4 million that were resolved and paid primarily during the fourth quarter of 2021, which is included in cost of products sold on the Consolidated Statements of Operations. TimkenSteel had no significant warranty claims for the years ended December 31, 2020 or 2019.
Income Taxes

Income Taxes:

Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. TimkenSteel accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. TimkenSteel recognizes deferred tax assets to the extent TimkenSteel believes these assets are more likely than not to be realized. In making such a determination, TimkenSteel considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If TimkenSteel determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, TimkenSteel would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

TimkenSteel records uncertain tax positions in accordance with applicable accounting guidance, on the basis of a two-step process whereby (1) TimkenSteel determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, TimkenSteel recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

TimkenSteel recognizes interest and penalties related to unrecognized tax benefits within the provision (benefit) for income taxes line in the accompanying Consolidated Statements of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets.
Foreign Currency

Foreign Currency:

Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date. Income and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are reflected as a separate component of accumulated other comprehensive loss. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in the Consolidated Statements of Operations. TimkenSteel realized a foreign currency exchange loss of $0.1 million and $0.2 million for the years ended December 31, 2021 and 2020, respectively. There were no foreign currency exchange gains or losses in 2019.
Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits:

TimkenSteel recognizes an overfunded status or underfunded status (e.g., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and other postretirement benefit plans on the Consolidated Balance Sheets. The Company recognizes actuarial gains and losses immediately through net periodic benefit cost in the Consolidated Statements of Operations upon the annual remeasurement at December 31, or on an interim basis as triggering events warrant remeasurement. In addition, the Company uses fair value to account for the value of plan assets.
Stock-Based Compensation

Stock-Based Compensation:

TimkenSteel recognizes stock-based compensation expense based on the grant date fair value of the stock-based awards over their required vesting period on a straight-line basis, whether the awards were granted with graded or cliff vesting. Stock options are issued with an exercise price equal to the closing market price of TimkenSteel common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield.

Performance-based restricted stock units issued in 2021 and 2020 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. 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 stock-based awards that will settle in TimkenSteel common shares, other than stock options and performance-based restricted stock units, is based on the closing market price of TimkenSteel common shares on the grant date.

TimkenSteel recognizes all excess tax benefits and tax deficiencies as income tax expense or benefit in the Consolidated Statements of Operations. The excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate.
Research and Development

Research and Development:

Expenditures for research and development at TimkenSteel amounted to $1.7 million, $1.8 million and $4.1 million for the years ended December 31, 2021, 2020, and 2019, respectively, and were recorded as a component of selling, general and administrative expenses in the Consolidated Statements of Operations. These expenditures may fluctuate from year to year depending on special projects and the needs of TimkenSteel and its customers.
Adoption of New Accounting Standards

Adoption of New Accounting Standards

The Company adopted the following Accounting Standard Updates ("ASU") during the year ended December 31, 2021.

Standard Adopted

Description

Date of Adoption

Impact

ASU 2019-12, Income Taxes (Topic 740)

The standard simplifies the accounting for income taxes by removing various exceptions.

January 1, 2021

The adoption of this standard had an immaterial impact on the Company’s tax provision.

ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)

The standard simplifies the accounting for convertible instruments, as well as the diluted net income per share calculation. The standard also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception.

January 1, 2021

The Company early adopted this standard as of January 1, 2021 using the modified retrospective method of transition. The standard had a material impact on the Consolidated Financial Statements. See below for additional information.

 

Upon adoption of ASU 2020-06 prospectively as of January 1, 2021, all outstanding Convertible Notes were fully classified as a liability, there was no longer a separate equity component and the Convertible Notes no longer have a debt discount that is amortized. This resulted in a decrease of $10.6 million to additional paid-in capital and an increase of $1.1 million and $5.3 million to current convertible notes, net and non-current convertible notes, net, respectively, on the Consolidated Balance Sheets as of January 1, 2021. Additionally, retained deficit was reduced by $4.2 million in the Consolidated Balance Sheets as of January 1, 2021 to remove amortization expense recognized in prior periods. The adoption of this standard did not have an effect on the Company’s cash flows, liquidity, or the methodology used for the earnings per share calculation. Refer to “Note 14 – Financing Arrangements” for additional information on the Company’s Convertible Notes.

Accounting Standards Issued But Not Yet Adopted

There are no current ASUs issued, but not adopted, that are expected to have an impact on the Company.
v3.22.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Revenue from External Customers by Geographic Areas Net sales by geographic area are reported by the country in which the customer is domiciled.

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Net Sales:

 

 

 

 

 

 

 

 

 

United States

 

$

1,166.1

 

 

$

746.8

 

 

$

1,096.8

 

Foreign

 

 

116.8

 

 

 

83.9

 

 

 

112.0

 

 

 

$

1,282.9

 

 

$

830.7

 

 

$

1,208.8

 
Long-lived Assets by Geographic Areas Long-lived assets include property, plant and equipment and intangible assets subject to amortization. Long-lived assets by geographic area are reported by the location of the TimkenSteel operations to which the asset is attributed.

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Long-lived Assets, net:

 

 

 

 

 

 

United States

 

$

530.7

 

 

$

599.1

 

Foreign

 

 

0.7

 

 

 

1.0

 

 

 

$

531.4

 

 

$

600.1

 
v3.22.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue

The following table provides the major sources of revenue by end-market sector for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Mobile

 

$

527.9

 

 

$

346.0

 

 

$

479.3

 

Industrial

 

 

661.2

 

 

 

391.7

 

 

 

486.3

 

Energy

 

 

62.9

 

 

 

53.2

 

 

 

166.4

 

Other(1)

 

 

30.9

 

 

 

39.8

 

 

 

76.8

 

Total Net Sales

 

$

1,282.9

 

 

$

830.7

 

 

$

1,208.8

 

 

(1) “Other” sales by end-market sector includes the Company’s scrap and oil country tubular goods (“OCTG”) billet sales.

The following table provides the major sources of revenue by product type for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Bar

 

$

863.6

 

 

$

502.5

 

 

$

783.0

 

Tube

 

 

164.4

 

 

 

101.4

 

 

 

151.8

 

Manufactured components(3)

 

 

224.0

 

 

 

208.1

 

 

 

240.6

 

Other(2)

 

 

30.9

 

 

 

18.7

 

 

 

33.4

 

Total Net Sales

 

$

1,282.9

 

 

$

830.7

 

 

$

1,208.8

 

 

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

(3) Formerly known as the “Value-add” product type. 
v3.22.0.1
Restructuring Charges (Tables)
 12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Reserve

The following is a summary of the restructuring reserve for the twelve months ended December 31, 2021 and 2020:

Balance at December 31, 2020

 

$

1.5

 

Expenses

 

 

6.7

 

Payments

 

 

(3.5

)

Balance at December 31, 2021

 

$

4.7

 

 

Balance at December 31, 2019

 

$

6.0

 

Expenses

 

 

3.1

 

Payments

 

 

(7.6

)

Balance at December 31, 2020

 

$

1.5

 
v3.22.0.1
Other (Income) Expense, Net (Tables)
 12 Months Ended
Dec. 31, 2021
Other Income and Expenses [Abstract]  
Schedule of Other (Income) Expense, Net

The following table provides the components of other (income) expense, net for the years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Pension and postretirement non-service benefit (income) loss

 

$

(37.2

)

 

$

(26.6

)

 

$

(17.5

)

Loss (gain) from remeasurement of benefit plans

 

 

(20.1

)

 

 

14.7

 

 

 

40.6

 

Foreign currency exchange loss (gain)

 

 

0.1

 

 

 

0.2

 

 

 

—

 

Sales and use tax refund

 

 

(2.5

)

 

 

—

 

 

 

—

 

Employee retention credit

 

 

—

 

 

 

(2.3

)

 

 

—

 

Miscellaneous (income) expense

 

 

0.2

 

 

 

(0.2

)

 

 

0.2

 

Total other (income) expense, net

 

$

(59.5

)

 

$

(14.2

)

 

$

23.3

 
v3.22.0.1
Income Tax Provision (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) from operations before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below.

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

$

171.2

 

 

$

(64.1

)

 

$

(130.8

)

Non-United States

 

 

5.5

 

 

 

3.4

 

 

 

4.7

 

Income (loss) from operations before income taxes

 

$

176.7

 

 

$

(60.7

)

 

$

(126.1

)
Schedule of (Benefit) Provision for Income Taxes

The provision (benefit) for income taxes consisted of the following:

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

0.2

 

 

$

0.6

 

 

$

—

 

State and local

 

 

3.7

 

 

 

—

 

 

 

0.1

 

Foreign

 

 

0.6

 

 

 

0.5

 

 

 

0.4

 

Total current tax expense (benefit)

 

$

4.5

 

 

$

1.1

 

 

$

0.5

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

$

0.8

 

 

$

(0.4

)

 

$

(14.4

)

State and local

 

 

0.3

 

 

 

0.5

 

 

 

(2.0

)

Foreign

 

 

0.1

 

 

 

—

 

 

 

(0.2

)

Total deferred tax expense (benefit)

 

 

1.2

 

 

 

0.1

 

 

 

(16.6

)

Provision (benefit) for incomes taxes

 

$

5.7

 

 

$

1.2

 

 

$

(16.1

)
Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between TimkenSteel’s effective tax rate on income (loss) from continuing operations and the statutory tax rate is as follows:

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

U.S. federal income tax provision (benefit) at statutory rate

 

$

37.1

 

 

$

(12.7

)

 

$

(26.5

)

Adjustments:

 

 

 

 

 

 

 

 

 

State and local income taxes, net of federal tax benefit

 

 

4.1

 

 

 

2.3

 

 

 

(1.3

)

Permanent differences

 

 

(0.2

)

 

 

1.3

 

 

 

1.3

 

Foreign earnings taxed at different rates

 

 

(0.5

)

 

 

0.1

 

 

 

—

 

Valuation allowance

 

 

(34.8

)

 

 

10.3

 

 

 

10.2

 

U.S. research tax credit

 

 

—

 

 

 

—

 

 

 

0.2

 

Global intangible low-taxed income

 

 

—

 

 

 

—

 

 

 

0.2

 

Other items, net

 

 

—

 

 

 

(0.1

)

 

 

(0.2

)

Provision (benefit) for income taxes

 

$

5.7

 

 

$

1.2

 

 

$

(16.1

)

Effective tax rate

 

 

3.2

%

 

 

(2.0

)%

 

 

12.8

%
Schedule of Deferred Tax Assets and Liabilities

The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2021 and 2020 was as follows:

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation

 

$

(89.0

)

 

$

(97.5

)

Inventory

 

 

(8.0

)

 

 

(16.2

)

Convertible notes

 

 

—

 

 

 

(1.6

)

Leases - right-of-use asset

 

 

(3.5

)

 

 

(5.0

)

Other, net

 

 

—

 

 

 

(0.3

)

Deferred tax liabilities

 

$

(100.5

)

 

$

(120.6

)

Deferred tax assets:

 

 

 

 

 

 

Tax loss carryforwards

 

$

52.6

 

 

$

94.4

 

Pension and postretirement benefits

 

 

44.3

 

 

 

50.3

 

Other employee benefit accruals

 

 

8.2

 

 

 

8.7

 

Lease liability

 

 

3.5

 

 

 

5.0

 

State decoupling

 

 

1.3

 

 

 

2.8

 

Accrued restructuring

 

 

1.1

 

 

 

—

 

Capital loss carryforward

 

 

0.8

 

 

 

—

 

Intangible assets

 

 

0.6

 

 

 

1.0

 

Inventory

 

 

0.6

 

 

 

4.5

 

Allowance for doubtful accounts

 

 

0.5

 

 

 

0.3

 

Other, net

 

 

0.3

 

 

 

0.3

 

Deferred tax assets subtotal

 

$

113.8

 

 

$

167.3

 

Valuation allowances

 

 

(15.5

)

 

 

(47.7

)

Deferred tax assets

 

 

98.3

 

 

 

119.6

 

Net deferred tax assets (liabilities)

 

$

(2.2

)

 

$

(1.0

)
v3.22.0.1
Earnings (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2021
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 years ended December 31, 2021, 2020 and 2019:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss), basic

 

$

171.0

 

 

$

(61.9

)

 

$

(110.0

)

Add convertible notes interest

 

 

4.1

 

 

 

—

 

 

 

—

 

Net income (loss), diluted

 

$

175.1

 

 

$

(61.9

)

 

$

(110.0

)

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

 

45.9

 

 

 

45.0

 

 

 

44.8

 

Dilutive effect of equity-based awards

 

 

1.7

 

 

 

—

 

 

 

—

 

Dilutive effect of convertible notes

 

 

7.4

 

 

 

—

 

 

 

—

 

Weighted average shares outstanding, diluted

 

 

55.0

 

 

 

45.0

 

 

 

44.8

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

3.73

 

 

$

(1.38

)

 

$

(2.46

)

Diluted earnings (loss) per share

 

$

3.18

 

 

$

(1.38

)

 

$

(2.46

)
v3.22.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2021
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory

The components of inventories as of December 31, 2021 and 2020 were as follows:

 

 

December 31,

 

 

 

2021

 

 

2020

 

Manufacturing supplies

 

$

29.3

 

 

$

37.6

 

Raw materials

 

 

37.3

 

 

 

20.0

 

Work in process

 

 

89.3

 

 

 

79.1

 

Finished products

 

 

55.8

 

 

 

55.6

 

Gross inventory

 

 

211.7

 

 

 

192.3

 

Allowance for inventory reserves

 

 

(0.8

)

 

 

(13.9

)

Total inventories, net

 

$

210.9

 

 

$

178.4

 
v3.22.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

The components of property, plant and equipment, net as of December 31, 2021 and 2020 were as follows:

 

 

December 31,

 

 

 

2021

 

 

2020

 

Land

 

$

11.2

 

 

$

13.3

 

Buildings and improvements

 

 

415.0

 

 

 

422.5

 

Machinery and equipment

 

 

1,391.9

 

 

 

1,398.7

 

Construction in progress

 

 

9.6

 

 

 

11.0

 

Subtotal

 

 

1,827.7

 

 

 

1,845.5

 

Less allowances for depreciation

 

 

(1,317.5

)

 

 

(1,275.7

)

Property, plant and equipment, net

 

$

510.2

 

 

$

569.8

 
Schedule of Supplemental Cash Flow Information Related to Non-Cash Investing Activity

Supplemental cash flow information related to non-cash investing activity was as follows:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Accrued property, plant and equipment purchases

 

$

3.6

 

 

$

2.0

 

 

$

5.3

 
v3.22.0.1
Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets

The components of intangible assets, net as of December 31, 2021 and 2020 were as follows:

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Customer relationships

 

$

6.3

 

 

$

5.8

 

 

$

0.5

 

 

$

6.3

 

 

$

5.4

 

 

$

0.9

 

Technology use

 

 

9.0

 

 

 

9.0

 

 

 

—

 

 

 

9.0

 

 

 

9.0

 

 

 

—

 

Capitalized software

 

 

57.4

 

 

 

51.2

 

 

 

6.2

 

 

 

58.0

 

 

 

49.6

 

 

 

8.4

 

Total intangible assets

 

$

72.7

 

 

$

66.0

 

 

$

6.7

 

 

$

73.3

 

 

$

64.0

 

 

$

9.3

 

 
Schedule of Estimated Annual Amortization Expense

Based upon the intangible assets subject to amortization as of December 31, 2021, TimkenSteel’s estimated annual amortization for the five succeeding years is shown below (in millions):

Year

 

Amortization
Expense

 

2022

 

$

2.6

 

2023

 

 

2.1

 

2024

 

 

1.1

 

2025

 

 

0.1

 

2026

 

 

0.1

 
v3.22.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lease, Cost

The Company recorded lease cost for the years ended December 31, 2021, 2020 and 2019 as follows:

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Operating lease cost

 

$

8.2

 

 

$

8.8

 

 

$

7.4

 

Short-term lease cost

 

 

0.7

 

 

 

0.7

 

 

 

1.9

 

Total lease cost

 

$

8.9

 

 

$

9.5

 

 

$

9.3

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

8.2

 

 

$

8.8

 

 

$

7.5

 

Right-of-use assets obtained in exchange for operating lease obligations

 

$

3.1

 

 

$

12.5

 

 

$

4.3

 
Future Lease Maturity

Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows:

2022

 

$

6.0

 

2023

 

 

5.0

 

2024

 

 

2.8

 

2025

 

 

1.1

 

After 2025

 

 

0.2

 

Total future minimum lease payments

 

 

15.1

 

    Less amount of lease payment representing interest

 

 

(0.6

)

Total present value of lease payments

 

$

14.5

 

 
v3.22.0.1
Financing Arrangements (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Instrument [Line Items]  
Summary of Current and Non-current Debt

The following table summarizes the current and non-current debt as of December 31, 2021 and 2020:

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Credit Agreement

 

$

—

 

 

$

—

 

Convertible Senior Notes due 2021

 

 

—

 

 

 

38.9

 

Convertible Senior Notes due 2025

 

 

44.9

 

 

 

39.3

 

Total debt

 

$

44.9

 

 

$

78.2

 

     Less current portion of debt

 

 

44.9

 

 

 

38.9

 

Total non-current portion of debt

 

$

—

 

 

$

39.3

 
Schedule of Net Carrying Amount of Extinguished Convertible Senior Notes

 

Net carrying amount of extinguished Convertible Senior Notes due 2021 as of December 15, 2020

 

 

 

    Principal

 

$

46.0

 

    Less: Debt issuance costs, net of amortization

 

 

(0.1

)

    Less: Debt discount, net of amortization

 

 

(1.5

)

Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020

 

 

45.3

 

Loss on extinguishment of debt

 

$

(0.9

)
Schedule of Amount Allocated to Reacquisition of Equity Component Included as Reduction To Additional Paid-In Capital

The amount allocated to the reacquisition of the equity component, included as a reduction to additional paid-in capital on the Consolidated Balance Sheets, was calculated as follows:

 

Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020

 

$

45.3

 

Principal of extinguished Convertible Senior Notes due 2021

 

 

46.0

 

Reduction of additional paid-in capital in 2020

 

$

(0.7

)
Schedule of Interest Expense

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

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Contractual interest expense

 

$

3.7

 

 

$

5.2

 

 

$

5.2

 

Amortization of debt issuance costs

 

 

0.4

 

 

 

0.5

 

 

 

0.4

 

Amortization of debt discount

 

 

—

 

 

 

4.4

 

 

 

4.0

 

Total

 

$

4.1

 

 

$

10.1

 

 

$

9.6

 
Convertible Senior Notes due 2021  
Debt Instrument [Line Items]  
Schedule of Components of Convertible Notes

The components of the Convertible Senior Notes due 2021 as of December 31, 2021 and December 31, 2020 were as follows:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

Principal

 

$

—

 

 

$

40.2

 

Less: Debt issuance costs, net of amortization

 

 

—

 

 

 

(0.1

)

Less: Debt discount, net of amortization

 

 

—

 

 

 

(1.2

)

Convertible Senior Notes due 2021, net

 

$

—

 

 

$

38.9

 
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 December 31, 2021 and December 31, 2020 were as follows:

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Principal

 

$

46.0

 

 

$

46.0

 

Less: Debt issuance costs, net of amortization

 

 

(1.1

)

 

 

(1.3

)

Less: Debt discount, net of amortization (1)

 

 

—

 

 

 

(5.4

)

Convertible Senior Notes due 2025, net

 

$

44.9

 

 

$

39.3

 

 

(1) There was no longer a debt discount associated with the Convertible Notes beginning in 2021, as the Company early adopted ASU 2020-06. For more details refer to "Note 2 - Significant Accounting Policies."
v3.22.0.1
Retirement and Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Schedule of Defined Benefit Plans Disclosures

The following table sets forth the change in benefit obligation for the defined benefit pension plans as of December 31, 2021:
 

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in benefit obligation:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Benefit obligation at the beginning of year

 

$

1,053.9

 

 

$

228.7

 

 

$

27.3

 

 

$

84.8

 

 

$

0.4

 

 

$

1,395.1

 

 

$

128.3

 

Service cost

 

 

17.0

 

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17.4

 

 

 

1.2

 

Interest cost

 

 

28.4

 

 

 

5.9

 

 

 

0.8

 

 

 

1.1

 

 

 

—

 

 

 

36.2

 

 

 

3.2

 

Actuarial (gains) losses

 

 

(31.6

)

 

 

(5.1

)

 

 

(1.5

)

 

 

0.3

 

 

 

—

 

 

 

(37.9

)

 

 

(6.0

)

Benefits paid

 

 

(56.5

)

 

 

(11.4

)

 

 

(3.0

)

 

 

(3.0

)

 

 

—

 

 

 

(73.9

)

 

 

(8.9

)

Plan amendment

 

 

14.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14.2

 

 

 

—

 

Settlements

 

 

—

 

 

 

(31.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(31.1

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.8

)

 

 

—

 

 

 

(0.8

)

 

 

—

 

Benefit obligation at the end of year

 

$

1,025.4

 

 

$

187.4

 

 

$

23.6

 

 

$

82.4

 

 

$

0.4

 

 

$

1,319.2

 

 

$

117.8

 

The following table sets forth the change in benefit obligation for the defined benefit pension plans as of December 31, 2020:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in benefit obligation:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Benefit obligation at the beginning of year

 

$

973.3

 

 

$

234.1

 

 

$

25.2

 

 

$

78.4

 

 

$

0.4

 

 

$

1,311.4

 

 

$

126.2

 

Service cost

 

 

16.9

 

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19.4

 

 

 

1.0

 

Interest cost

 

 

33.3

 

 

 

7.0

 

 

 

0.9

 

 

 

1.5

 

 

 

—

 

 

 

42.7

 

 

 

4.2

 

Actuarial (gains) losses

 

 

86.3

 

 

 

21.6

 

 

 

1.8

 

 

 

5.0

 

 

 

0.1

 

 

 

114.8

 

 

 

6.1

 

Benefits paid

 

 

(55.9

)

 

 

(11.9

)

 

 

(0.6

)

 

 

(2.8

)

 

 

—

 

 

 

(71.2

)

 

 

(9.2

)

Plan amendment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Settlements

 

 

—

 

 

 

(24.6

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(24.7

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2.7

 

 

 

—

 

 

 

2.7

 

 

 

—

 

Benefit obligation at the end of year

 

$

1,053.9

 

 

$

228.7

 

 

$

27.3

 

 

$

84.8

 

 

$

0.4

 

 

$

1,395.1

 

 

$

128.3

 

Significant actuarial gains related to changes in benefit obligations for 2021 primarily resulted from an increase in discount rates. Significant actuarial losses related to changes in benefit obligations for 2020 primarily resulted from a decrease in discount rates.

 

The following table sets forth the change in plan assets and funded status for the defined benefit pension plans as of December 31, 2021:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in plan assets:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Fair value of plan assets at the beginning of year

 

$

884.3

 

 

$

243.3

 

 

$

—

 

 

$

103.8

 

 

$

0.3

 

 

$

1,231.7

 

 

$

82.2

 

Actual return on plan assets

 

 

35.0

 

 

 

4.9

 

 

 

—

 

 

 

4.7

 

 

 

—

 

 

 

44.6

 

 

 

2.4

 

Company contributions / payments

 

 

—

 

 

 

—

 

 

 

3.0

 

 

 

2.8

 

 

 

—

 

 

 

5.8

 

 

 

1.1

 

Benefits paid

 

 

(56.5

)

 

 

(11.4

)

 

 

(3.0

)

 

 

(3.0

)

 

 

—

 

 

 

(73.9

)

 

 

(8.9

)

Settlements

 

 

—

 

 

 

(31.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(31.1

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.1

)

 

 

—

 

 

 

(1.1

)

 

 

—

 

Fair value of plan assets at end of year

 

$

862.8

 

 

$

205.7

 

 

$

—

 

 

$

107.2

 

 

$

0.3

 

 

$

1,176.0

 

 

$

76.8

 

Funded status at end of year

 

$

(162.6

)

 

$

18.3

 

 

$

(23.6

)

 

$

24.8

 

 

$

(0.1

)

 

$

(143.2

)

 

$

(41.0

)

The following table sets forth the change in plan assets and funded status for the defined benefit pension plans as of December 31, 2020:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Change in plan assets:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Fair value of plan assets at the beginning of year

 

$

817.3

 

 

$

243.6

 

 

$

—

 

 

$

94.1

 

 

$

0.4

 

 

$

1,155.4

 

 

$

82.3

 

Actual return on plan assets

 

 

122.9

 

 

 

36.2

 

 

 

—

 

 

 

7.9

 

 

 

—

 

 

 

167.0

 

 

 

7.0

 

Company contributions / payments

 

 

—

 

 

 

—

 

 

 

0.6

 

 

 

1.3

 

 

 

—

 

 

 

1.9

 

 

 

—

 

Benefits paid

 

 

(55.9

)

 

 

(11.9

)

 

 

(0.6

)

 

 

(2.8

)

 

 

—

 

 

 

(71.2

)

 

 

(7.1

)

Settlements

 

 

—

 

 

 

(24.6

)

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(24.7

)

 

 

—

 

Foreign currency translation adjustment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.3

 

 

 

—

 

 

 

3.3

 

 

 

—

 

Fair value of plan assets at end of year

 

$

884.3

 

 

$

243.3

 

 

$

—

 

 

$

103.8

 

 

$

0.3

 

 

$

1,231.7

 

 

$

82.2

 

Funded status at end of year

 

$

(169.5

)

 

$

14.5

 

 

$

(27.3

)

 

$

19.0

 

 

$

(0.1

)

 

$

(163.4

)

 

$

(46.1

)

 
Schedule of Amounts Recognized in Balance Sheet

Amounts recognized on the balance sheet at December 31, 2021 for TimkenSteel’s pension and postretirement benefit plans include:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Non-current assets

 

$

—

 

 

$

18.3

 

 

$

—

 

 

$

24.8

 

 

$

—

 

 

$

43.1

 

 

$

—

 

Current liabilities

 

 

—

 

 

 

—

 

 

 

(2.6

)

 

 

—

 

 

 

—

 

 

 

(2.6

)

 

 

(1.7

)

Non-current liabilities

 

 

(162.6

)

 

 

—

 

 

 

(21.0

)

 

 

—

 

 

 

(0.1

)

 

 

(183.7

)

 

 

(39.3

)

Total

 

$

(162.6

)

 

$

18.3

 

 

$

(23.6

)

 

$

24.8

 

 

$

(0.1

)

 

$

(143.2

)

 

$

(41.0

)

Amounts recognized on the balance sheet at December 31, 2020 for TimkenSteel’s pension and postretirement benefit plans include:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Non-current assets

 

$

—

 

 

$

14.5

 

 

$

—

 

 

$

19.0

 

 

$

—

 

 

$

33.5

 

 

$

—

 

Current liabilities

 

 

—

 

 

 

—

 

 

 

(0.6

)

 

 

—

 

 

 

—

 

 

 

(0.6

)

 

 

(1.7

)

Non-current liabilities

 

 

(169.5

)

 

 

—

 

 

 

(26.7

)

 

 

—

 

 

 

(0.1

)

 

 

(196.3

)

 

 

(44.4

)

Total

 

$

(169.5

)

 

$

14.5

 

 

$

(27.3

)

 

$

19.0

 

 

$

(0.1

)

 

$

(163.4

)

 

$

(46.1

)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Included in accumulated other comprehensive income (loss) at December 31, 2021 were the following before-tax amounts that had not been recognized in net periodic benefit cost:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Unrecognized prior service (benefit) cost

 

$

13.6

 

 

$

—

 

 

$

—

 

 

$

0.6

 

 

$

—

 

 

$

14.2

 

 

$

(55.9

)

 

Included in accumulated other comprehensive income (loss) at December 31, 2020 were the following before-tax amounts that had not been recognized in net periodic benefit cost:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

 

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Unrecognized prior service (benefit) cost

 

$

(0.4

)

 

$

—

 

 

$

—

 

 

$

0.6

 

 

$

—

 

 

$

0.2

 

 

$

(61.9

)
Schedule of Assumptions Used

The weighted average assumptions used in determining benefit obligation as of December 31, 2021 and 2020 were as follows:

 

 

Pension

 

 

Postretirement

 

Assumptions:

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Discount rate

 

 

2.96

%

 

 

2.68

%

 

 

3.00

%

 

 

2.65

%

Future compensation assumption

 

 

3.00

%

 

 

2.29

%

 

n/a

 

 

n/a

 
The weighted average assumptions used in determining benefit cost for the years ended December 31, 2021 and 2020 were as follows:

 

 

 

Pension

 

 

Postretirement

 

Assumptions:

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Discount rate

 

 

2.68

%

 

 

3.42

%

 

 

2.65

%

 

 

3.42

%

Future compensation assumption

 

 

2.29

%

 

 

2.32

%

 

n/a

 

 

n/a

 

Expected long-term return on plan assets

 

 

5.76

%

 

 

5.80

%

 

 

4.50

%

 

 

4.50

%

 
Schedule of Periodic Benefit Cost

The components of net periodic benefit cost (income) for the year ended December 31, 2021 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Components of net periodic benefit cost (income):

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

17.0

 

 

$

0.4

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

17.4

 

 

$

1.2

 

Interest cost

 

 

28.4

 

 

 

5.9

 

 

 

0.8

 

 

 

1.1

 

 

 

—

 

 

 

36.2

 

 

 

3.2

 

Expected return on plan assets

 

 

(51.5

)

 

 

(12.6

)

 

 

—

 

 

 

(3.3

)

 

 

—

 

 

 

(67.4

)

 

 

(3.4

)

Amortization of prior service cost

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

(6.0

)

Curtailment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net remeasurement losses (gains)

 

 

(15.1

)

 

 

2.5

 

 

 

(1.5

)

 

 

(1.1

)

 

 

—

 

 

 

(15.2

)

 

 

(4.9

)

Net Periodic Benefit Cost (Income)

 

$

(21.0

)

 

$

(3.8

)

 

$

(0.7

)

 

$

(3.3

)

 

$

—

 

 

$

(28.8

)

 

$

(9.9

)

 

The components of net periodic benefit cost (income) for the year ended December 31, 2020 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Components of net periodic benefit cost (income):

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

16.9

 

 

$

2.5

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

19.4

 

 

$

1.0

 

Interest cost

 

 

33.3

 

 

 

7.0

 

 

 

0.9

 

 

 

1.5

 

 

 

—

 

 

 

42.7

 

 

 

4.2

 

Expected return on plan assets

 

 

(47.5

)

 

 

(13.5

)

 

 

—

 

 

 

(3.3

)

 

 

—

 

 

 

(64.3

)

 

 

(3.5

)

Amortization of prior service cost

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

 

 

(6.0

)

Curtailment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net remeasurement losses (gains)

 

 

10.8

 

 

 

(1.0

)

 

 

1.8

 

 

 

0.4

 

 

 

0.1

 

 

 

12.1

 

 

 

2.6

 

Net Periodic Benefit Cost (Income)

 

$

13.8

 

 

$

(5.0

)

 

$

2.7

 

 

$

(1.4

)

 

$

0.1

 

 

$

10.2

 

 

$

(1.7

)

The components of net periodic benefit cost (income) for the year ended December 31, 2019 were as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Components of net periodic benefit cost (income):

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

Service cost

 

$

14.9

 

 

$

2.4

 

 

$

—

 

 

$

0.1

 

 

$

—

 

 

$

17.4

 

 

$

1.1

 

Interest cost

 

 

36.8

 

 

 

9.4

 

 

 

0.8

 

 

 

1.9

 

 

 

—

 

 

 

48.9

 

 

 

5.9

 

Expected return on plan assets

 

 

(47.0

)

 

 

(13.6

)

 

 

—

 

 

 

(4.4

)

 

 

—

 

 

 

(65.0

)

 

 

(3.9

)

Amortization of prior service cost

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.4

 

 

 

(3.8

)

Curtailment

 

 

—

 

 

 

(8.1

)

 

 

(0.8

)

 

 

—

 

 

 

—

 

 

 

(8.9

)

 

 

—

 

Net remeasurement losses (gains)

 

 

41.7

 

 

 

(2.0

)

 

 

4.2

 

 

 

(0.9

)

 

 

0.1

 

 

 

43.1

 

 

 

6.4

 

Net Periodic Benefit Cost (Income)

 

$

46.8

 

 

$

(11.9

)

 

$

4.2

 

 

$

(3.3

)

 

$

0.1

 

 

$

35.9

 

 

$

5.7

 
Schedule of Target Allocations for each Plan's Assets

The target allocations for each plan's assets are as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Target Allocations:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

Pension
Scheme

 

 

Pension
Plan

 

 

Weighted
Average
Pension

 

 

Weighted
Average
Postretirement
Plans

 

Equity securities

 

 

35.0

%

 

 

—

 

 

n/a

 

 

16.7

%

 

 

—

 

 

 

27.2

%

 

 

20.0

%

Debt securities

 

 

49.0

%

 

 

80.0

%

 

n/a

 

 

33.3

%

 

 

100.0

%

 

 

53.0

%

 

 

77.5

%

Other investments

 

 

16.0

%

 

 

20.0

%

 

n/a

 

 

50.0

%

 

 

—

 

 

 

19.8

%

 

 

2.5

%

 
Schedule of Allocation of Plan Assets

The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2021:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

87.6

 

 

$

1.2

 

 

$

86.4

 

 

$

—

 

U.S government and agency securities

 

 

173.9

 

 

 

166.7

 

 

 

7.2

 

 

 

—

 

Corporate bonds

 

 

244.7

 

 

 

—

 

 

 

244.7

 

 

 

—

 

Equity securities

 

 

25.3

 

 

 

25.3

 

 

 

—

 

 

 

—

 

Other

 

 

0.3

 

 

 

—

 

 

 

0.3

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

531.8

 

 

$

193.2

 

 

$

338.6

 

 

$

—

 

Assets measured at net asset value (1)

 

 

644.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

1,176.0

 

 

$

193.2

 

 

$

338.6

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, hedge funds, and risk parity investments. As of December 31, 2021, these assets are redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2020:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9.2

 

 

$

0.9

 

 

$

8.3

 

 

$

—

 

U.S government and agency securities

 

 

345.7

 

 

 

337.4

 

 

 

8.3

 

 

 

—

 

Corporate bonds

 

 

276.9

 

 

 

—

 

 

 

276.9

 

 

 

—

 

Equity securities

 

 

68.5

 

 

 

68.5

 

 

 

—

 

 

 

—

 

Mutual fund - fixed income

 

 

0.1

 

 

 

0.1

 

 

 

—

 

 

 

—

 

Mutual fund - equities

 

 

22.0

 

 

 

22.0

 

 

 

—

 

 

 

—

 

Other

 

 

0.2

 

 

 

—

 

 

 

0.2

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

722.6

 

 

$

428.9

 

 

$

293.7

 

 

$

—

 

Assets measured at net asset value (1)

 

 

509.1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

1,231.7

 

 

$

428.9

 

 

$

293.7

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and risk parity investments. As of December 31, 2020, these assets were redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2021:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3.8

 

 

$

3.8

 

 

$

—

 

 

$

—

 

Mutual fund - fixed income

 

 

5.8

 

 

 

5.8

 

 

 

—

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

9.6

 

 

$

9.6

 

 

$

—

 

 

$

—

 

Assets measured at net asset value (1)

 

 

67.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

76.8

 

 

$

9.6

 

 

$

—

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, hedge funds, and risk parity investments. As of December 31, 2021, these assets are redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2020:

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3.0

 

 

$

3.0

 

 

$

—

 

 

$

—

 

Mutual fund - fixed income

 

 

11.7

 

 

 

11.7

 

 

 

—

 

 

 

—

 

Mutual fund - equities

 

 

5.0

 

 

 

5.0

 

 

 

—

 

 

 

—

 

Total Assets in the fair value hierarchy

 

$

19.7

 

 

$

19.7

 

 

$

—

 

 

$

—

 

Assets measured at net asset value (1)

 

 

62.5

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Assets

 

$

82.2

 

 

$

19.7

 

 

$

—

 

 

$

—

 


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and risk parity investments. As of December 31, 2020, these assets were redeemable at net asset value within 90 days.
Schedule of Expected Benefit Payments

Future benefit payments are expected to be as follows:

 

 

Pension

 

 

 

 

 

 

 

 

 

United States of America

 

 

United Kingdom

 

 

Mexico

 

 

 

 

 

 

 

Benefit Payments:

 

Bargaining
Plan

 

 

Salaried
Plan

 

 

Supplemental
Plan

 

 

Pension
Scheme

 

 

Pension
Plan

 

 

Total
Pension

 

 

Postretirement
Plans

 

2022

 

$

76.2

 

 

$

15.4

 

 

$

2.3

 

 

$

2.2

 

 

$

—

 

 

$

96.1

 

 

$

10.5

 

2023

 

 

71.1

 

 

 

15.8

 

 

 

0.5

 

 

 

2.3

 

 

 

—

 

 

 

89.7

 

 

 

9.7

 

2024

 

 

70.1

 

 

 

14.2

 

 

 

0.6

 

 

 

2.4

 

 

 

—

 

 

 

87.3

 

 

 

8.9

 

2025

 

 

71.7

 

 

 

12.9

 

 

 

0.6

 

 

 

2.5

 

 

 

—

 

 

 

87.7

 

 

 

8.4

 

2026

 

 

72.8

 

 

 

12.5

 

 

 

0.5

 

 

 

2.4

 

 

 

—

 

 

 

88.2

 

 

 

8.0

 

2027-2031

 

 

356.7

 

 

 

57.0

 

 

 

17.8

 

 

 

13.0

 

 

 

0.5

 

 

 

445.0

 

 

 

36.4

 
v3.22.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
Assumptions Used in Calculating Fair Value of Options

The following table provides the significant assumptions used to calculate the grant date fair values of stock options granted using a Black-Scholes option pricing method:

 

 

 

2020

 

 

 

2019

 

 

Weighted-average fair value per option

 

$

2.23

 

 

 

$

5.54

 

 

Risk-free interest rate

 

 

0.96

 

%

 

 

2.63

 

%

Dividend yield

 

 

—

 

%

 

 

—

 

%

Expected stock volatility

 

 

42.67

 

%

 

 

41.36

 

%

Expected life - years

 

 

6

 

 

 

 

6

 

 
Share-based Compensation, Stock Options, Activity

The following summarizes TimkenSteel stock option activity from January 1, 2021 to December 31, 2021:

 

 

 

Number of
Shares

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic Value
(millions)

 

Outstanding as of December 31, 2020

 

 

2,931,065

 

 

$

18.61

 

 

 

 

 

 

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(527,870

)

 

 

7.74

 

 

 

 

 

 

 

Canceled, forfeited or expired

 

 

(349,107

)

 

 

24.42

 

 

 

 

 

 

 

Outstanding as of December 31, 2021

 

 

2,054,088

 

 

$

20.41

 

 

 

4.4

 

 

$

5.6

 

Options expected to vest

 

 

314,180

 

 

 

7.53

 

 

 

7.8

 

 

 

2.8

 

Options exercisable

 

 

1,739,908

 

 

$

22.74

 

 

 

3.8

 

 

$

2.8

 

 
Time-Based Restricted Stock Units  
Nonvested Restricted Stock Shares Activity

The following summarizes TimkenSteel stock-settled, time-based restricted stock unit activity from January 1, 2021 to December 31, 2021:

 

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding as of December 31, 2020

 

 

1,372,326

 

 

$

7.62

 

Granted

 

 

938,995

 

 

 

7.70

 

Vested

 

 

(545,453

)

 

 

7.02

 

Canceled, forfeited or expired

 

 

(97,818

)

 

 

7.53

 

Outstanding as of December 31, 2021

 

 

1,668,050

 

 

$

7.92

 
Performance-Based Restricted Stock Units  
Nonvested Restricted Stock Shares Activity

The following summarizes TimkenSteel stock-settled performance-based restricted stock unit activity from January 1, 2021 to December 31, 2021:

 

 

 

Number of
Shares

 

 

Weighted
Average
Grant Date
Fair Value

 

Outstanding as of December 31, 2020

 

 

175,964

 

 

$

4.98

 

Granted

 

 

651,240

 

 

 

7.57

 

Canceled, forfeited or expired

 

 

(33,160

)

 

 

10.12

 

Outstanding as of December 31, 2021

 

 

794,044

 

 

$

6.91

 

 
v3.22.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2021
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 years ended December 31, 2021 and 2020 by component were as follows:

 

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability
Adjustments

 

 

Total

 

Balance as of December 31, 2020

 

$

(5.4

)

 

$

45.8

 

 

$

40.4

 

Other comprehensive income before reclassifications, before income tax

 

 

0.3

 

 

 

—

 

 

 

0.3

 

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

 

—

 

 

 

(5.8

)

 

 

(5.8

)

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

 

—

 

 

 

(14.2

)

 

 

(14.2

)

Tax effect

 

—

 

 

 

—

 

 

 

—

 

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

 

 

0.3

 

 

 

(20.0

)

 

 

(19.7

)

Balance as of December 31, 2021

 

$

(5.1

)

 

$

25.8

 

 

$

20.7

 

 

 

 

Foreign Currency
Translation
Adjustments

 

 

Pension and
Postretirement
Liability
Adjustments

 

 

Total

 

Balance as of December 31, 2019

 

$

(6.8

)

 

$

51.5

 

 

$

44.7

 

Other comprehensive income before reclassifications, before income tax

 

 

1.4

 

 

 

—

 

 

 

1.4

 

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

 

—

 

 

 

(5.6

)

 

 

(5.6

)

Tax effect

 

—

 

 

 

(0.1

)

 

 

(0.1

)

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

 

 

1.4

 

 

 

(5.7

)

 

 

(4.3

)

Balance as of December 31, 2020

 

$

(5.4

)

 

$

45.8

 

 

$

40.4

 
v3.22.0.1
Basis of Presentation - Narrative (Details) - T
T in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Annual Melt Capacity 2.0 1.2
Annual Shipment Capacity 1.5 0.9
v3.22.0.1
Significant Accounting Policies - Narrative (Details)
 3 Months Ended 12 Months Ended
Mar. 11, 2021
Provision
Jan. 01, 2021
USD ($)
Mar. 27, 2020
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Installment
Dec. 31, 2019
USD ($)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Warranty claims           $ 1,400,000 $ 0 $ 0
Foreign currency exchange gains (losses)           (100,000) (200,000) 0
Research and development           1,700,000 1,800,000 $ 4,100,000
Retained deficit         $ 188,200,000 $ 188,200,000 363,400,000  
Proceeds from issuance of internal revenue service         500,000      
Scenario, Forecast                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Cash proceeds from issuance of remaining internal revenue service       $ 1,800,000        
Coronavirus Aid Relief And Economic Security Act                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Percentage of employee wages deferred as employer share of payroll taxes     6.20%          
Deferred cash payments of payroll taxes             $ 6,400,000  
Number of installments, deferred cash payments of payroll taxes to be paid | Installment             2  
Deferred cash payments of payroll taxes to be paid         $ 3,200,000      
Employee retention credit refundable tax credit for eligible employers     $ 50,000,000          
Percentage of tax credit     50.00%          
Qualified wages per employee     $ 10,000          
Accrued benefit             $ 2,300,000  
American Rescue Plan Act                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Number of provisions within act that impacts company | Provision 1              
Provisions description           Specifically, the ARPA provides enhanced interest rate stabilization, as well as extended amortization of funding shortfalls. The Company has evaluated and made final the elections permitted by the ARPA related to the required contributions for our TimkenSteel Corporation Bargaining Unit Pension Plan ("Bargaining Plan"). At this time based on current assumptions, the elections made under ARPA and expected asset returns, we believe that required Company contributions to the Bargaining Plan have been delayed until after 2031. However, these estimates are subject to significant uncertainty.    
ASU 2019-12                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Change In Accounting Principle Accounting Standards Update Adopted         true true    
Change in accounting principle, accounting standards update, immaterial effect         true true    
Change in accounting principle, accounting standards update, adoption date         Jan. 01, 2021 Jan. 01, 2021    
ASU 2020-06                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Change In Accounting Principle Accounting Standards Update Adopted         true true    
Change in accounting principle, accounting standards update, immaterial effect         false false    
Change in accounting principle, accounting standards update, adoption date         Jan. 01, 2021 Jan. 01, 2021    
Change in accounting principle, accounting standards update, early adoption         true true    
ASU 2020-06 | Revision of Prior Period, Accounting Standards Update, Adjustment                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Decrease to additional paid in capital   $ 10,600,000            
Increase to current convertible notes net   1,100,000            
Increase to non-current convertible notes net   5,300,000            
Retained deficit   $ 4,200,000            
Building                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Useful lives of property, plant and equipment, net           30 years    
Minimum                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Useful lives of intangible asses, net           3 years    
Minimum | Machinery and Equipment                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Useful lives of property, plant and equipment, net           3 years    
Maximum                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Useful lives of intangible asses, net           15 years    
Maximum | Machinery and Equipment                
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                
Useful lives of property, plant and equipment, net           20 years    
v3.22.0.1
Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales $ 1,282.9 $ 830.7 $ 1,208.8
Long-lived assets, net 531.4 600.1  
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 1,166.1 746.8 1,096.8
Long-lived assets, net 530.7 599.1  
Foreign      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 116.8 83.9 $ 112.0
Long-lived assets, net $ 0.7 $ 1.0  
v3.22.0.1
Revenue Recognition (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Net sales $ 1,282.9 $ 830.7 $ 1,208.8
Bar      
Disaggregation of Revenue [Line Items]      
Net sales 863.6 502.5 783.0
Tube      
Disaggregation of Revenue [Line Items]      
Net sales 164.4 101.4 151.8
Manufactured Components      
Disaggregation of Revenue [Line Items]      
Net sales 224.0 208.1 240.6
Other      
Disaggregation of Revenue [Line Items]      
Net sales 30.9 18.7 33.4
Mobile      
Disaggregation of Revenue [Line Items]      
Net sales 527.9 346.0 479.3
Industrial      
Disaggregation of Revenue [Line Items]      
Net sales 661.2 391.7 486.3
Energy      
Disaggregation of Revenue [Line Items]      
Net sales 62.9 53.2 166.4
Other      
Disaggregation of Revenue [Line Items]      
Net sales $ 30.9 $ 39.8 $ 76.8
v3.22.0.1
Restructuring Charges - Narrative (Details)
$ in Millions
 12 Months Ended 36 Months Ended
Dec. 31, 2021
USD ($)
Position
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2021
Position
Restructuring and Related Activities [Abstract]        
Restructuring charges $ 6.7 $ 3.1 $ 8.6  
Restructuring charges related to severance and employee-related benefits 6.4      
Restructuring charges related to transition of customers to other manufacturing equipment $ 0.3      
Number of positions eliminated | Position 75     290
v3.22.0.1
Restructuring Charges - Summary of Restructuring Reserve (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restructuring Reserve [Roll Forward]      
Beginning balance $ 1.5 $ 6.0  
Expenses 6.7 3.1 $ 8.6
Payments (3.5) (7.6)  
Ending balance $ 4.7 $ 1.5 $ 6.0
v3.22.0.1
Disposition of Non-Core Assets (Details)
 3 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Program
Sep. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jun. 30, 2020
USD ($)
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Impairment charges           $ 10,600,000   $ 7,300,000  
Assets held for sale $ 4,300,000         4,300,000 $ 300,000    
Inventory valuation reserves 800,000         800,000 13,900,000    
Inventory 210,900,000         210,900,000 178,400,000    
Impairment charges related to the indefinite idling of assets           10,600,000      
Proceeds from sale of consolidated subsidiary, net           6,200,000      
Loss on sale of consolidated subsidiary           1,100,000      
TimkenSteel (Shanghai) Corporation Limited | Daido Steel (Shanghai) Co., Ltd.                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Proceeds from sale of consolidated subsidiary, net   $ 6,200,000              
Loss on sale of consolidated subsidiary   $ 1,100,000              
Harrison Facility | Melt and Cast Related Assets                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Non-cash charges related to write down of assets     $ 9,500,000            
St.Clair Facility | TimkenSteel (Shanghai) Corporation Limited                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Inventory write-down           200,000      
Impairment charges           2,400,000      
Loss on sale of consolidated subsidiary $ (1,100,000)                
Number of customer program early termination | Program 2                
Machinery and Equipment | Harrison Facility | Melt and Cast Related Assets                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Non-cash charges related to write down of assets     7,900,000            
Spare Parts | Harrison Facility | Melt and Cast Related Assets                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Non-cash charges related to write down of assets     1,600,000            
Disposal Group, Held-for-sale, Not Discontinued Operation                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Impairment charges         $ 7,300,000        
Gain (loss) on sale/disposal $ 100,000     $ 100,000   900,000 3.6    
Accelerated depreciation       $ 1,600,000 2,800,000        
Assets held for sale 4,300,000         4,300,000      
Inventory write-down               4,800,000  
Inventory valuation reserves                 $ 3,100,000
Inventory 0         0      
Impairment charges           $ 300,000      
Proceeds from sale of land $ 300,000                
Disposal Group, Held-for-sale, Not Discontinued Operation | Canton, Ohio                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Gain (loss) on sale/disposal             500,000    
Disposal Group, Held-for-sale, Not Discontinued Operation | Scrap Processing Facility                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Disposal group consideration         4,000,000.0     $ 4,000,000.0  
Disposal Group, Held-for-sale, Not Discontinued Operation | Inventories                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Impairment charges         $ 11,300,000        
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]                  
Accelerated depreciation     1,500,000       $ 1,800,000    
Disposal Group, Held-for-sale, Not Discontinued Operation | Spare Parts                  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]                  
Impairment charges related to the indefinite idling of assets     $ 500,000            
v3.22.0.1
Other (Income) Expense , Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Other Income and Expenses [Abstract]      
Pension and postretirement non-service benefit (income) loss $ (37.2) $ (26.6) $ (17.5)
Loss (gain) from remeasurement of benefit plans (20.1) 14.7 40.6
Foreign currency exchange loss (gain) 0.1 0.2 0.0
Sales and use tax refund (2.5)    
Employee retention credit   (2.3)  
Miscellaneous (income) expense 0.2 (0.2) 0.2
Total other (income) expense, net $ (59.5) $ (14.2) $ 23.3
v3.22.0.1
Other (Income) Expense , Net - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Statutory Accounting Practices [Line Items]    
Sales and use taxes refund $ 2.5  
Employee retention credit   $ 2.3
v3.22.0.1
Income Tax Provision - Income from Operations Before Income Taxes Based on Geographic Location of Operations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
United States $ 171.2 $ (64.1) $ (130.8)
Non-United States 5.5 3.4 4.7
Income (loss) from operations before income taxes $ 176.7 $ (60.7) $ (126.1)
v3.22.0.1
Income Tax Provision - (Benefit) Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:      
Federal $ 0.2 $ 0.6  
State and local 3.7   $ 0.1
Foreign 0.6 0.5 0.4
Total current tax expense (benefit) 4.5 1.1 0.5
Deferred:      
Federal 0.8 (0.4) (14.4)
State and local 0.3 0.5 (2.0)
Foreign 0.1   (0.2)
Total deferred tax expense (benefit) 1.2 0.1 (16.6)
Provision (benefit) for incomes taxes $ 5.7 $ 1.2 $ (16.1)
v3.22.0.1
Income Tax Provision - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]            
Dividends declared     $ 5,100,000      
Dividend declared and paid $ 400,000 $ 800,000        
Open tax year       2018 2019 2020 2021    
Deferred Tax Liabilities, Undistributed Foreign Earnings       $ 0 $ 300,000  
Deferred income taxes       2,200,000 1,000,000.0  
Operating Loss Carryforwards       224,600,000    
Operating Loss Carryforwards, Valuation Allowance       15,500,000    
Unrecognized Tax Benefits       0 0 $ 0
Unrecognized Tax Benefits that Would Impact Effective Tax Rate       0 0 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued       0 0 $ 0
Foreign            
Operating Loss Carryforwards [Line Items]            
Income Taxes Paid       900,000 400,000  
Operating Loss Carryforwards       60,400,000    
State and Local            
Operating Loss Carryforwards [Line Items]            
Income Taxes Paid       4,600,000 100,000  
Income Taxes Receivable, Current       0 0  
U.S.            
Operating Loss Carryforwards [Line Items]            
Income Taxes Paid       0 $ 0  
Operating Loss Carryforwards       $ 164,200,000    
v3.22.0.1
Income Tax Provision - Reconciliation Between Effective Tax Rate and Statutory Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
U.S. federal income tax provision (benefit) at statutory rate $ 37.1 $ (12.7) $ (26.5)
Adjustments:      
State and local income taxes, net of federal tax benefit 4.1 2.3 (1.3)
Permanent differences (0.2) 1.3 1.3
Foreign earnings taxed at different rates (0.5) 0.1  
Valuation allowance (34.8) 10.3 10.2
U.S. research tax credit     0.2
Global intangible low-taxed income     0.2
Other items, net   (0.1) (0.2)
Provision (benefit) for incomes taxes $ 5.7 $ 1.2 $ (16.1)
Effective tax rate 3.20% (2.00%) 12.80%
v3.22.0.1
Income Tax Provision - Effect of Temporary Differences Giving Rise to Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Deferred tax liabilities:    
Depreciation $ (89.0) $ (97.5)
Inventory (8.0) (16.2)
Convertible notes   (1.6)
Leases - right-of-use asset (3.5) (5.0)
Other, net   (0.3)
Deferred tax liabilities (100.5) (120.6)
Deferred tax assets:    
Tax loss carryforwards 52.6 94.4
Pension and postretirement benefits 44.3 50.3
Other employee benefit accruals 8.2 8.7
Lease liability 3.5 5.0
State decoupling 1.3 2.8
Accrued restructuring 1.1  
Capital loss carryforward 0.8  
Intangible assets 0.6 1.0
Inventory 0.6 4.5
Allowance for doubtful accounts 0.5 0.3
Other, net 0.3 0.3
Deferred tax assets subtotal 113.8 167.3
Valuation allowances (15.5) (47.7)
Deferred tax assets 98.3 119.6
Net deferred tax assets (liabilities) $ (2.2) $ (1.0)
v3.22.0.1
Earnings (Loss) Per Share - Additional Information (Details) - USD ($)
shares in Millions, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]          
Shares assumed purchased     3.0    
Shares assumed purchased with potential proceeds     1.3    
Repurchase of convertible notes     $ 38.9    
Convertible Senior Notes due 2025 | Scenario, Forecast          
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]          
Antidilutive securities excluded from calculation of computation of diluted earnings (loss) per share   0.6      
Convertible Senior Notes due 2025 | Subsequent Event          
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]          
Repurchase of convertible notes $ 12.4        
Debt Instrument, Face Amount $ 5.0        
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     4.8 4.6 3.7
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     1.8    
Convertible Notes [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     7.4 9.1 6.9
v3.22.0.1
Earnings (Loss) Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator:      
Net income (loss), basic $ 171.0 $ (61.9) $ (110.0)
Add convertible notes interest 4.1    
Net income (loss), diluted $ 175.1 $ (61.9) $ (110.0)
Denominator:      
Weighted average shares outstanding, basic (in shares) 45.9 45.0 44.8
Dilutive effect of equity-based awards (in shares) 1.7    
Dilutive effect of convertible notes (in shares) 7.4    
Weighted average shares outstanding, diluted (in shares) 55.0 45.0 44.8
Basic earnings (loss) per share (in dollars per share) $ 3.73 $ (1.38) $ (2.46)
Diluted earnings (loss) per share (in dollars per share) $ 3.18 $ (1.38) $ (2.46)
v3.22.0.1
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Manufacturing supplies $ 29.3 $ 37.6
Raw materials 37.3 20.0
Work in process 89.3 79.1
Finished products 55.8 55.6
Gross inventory 211.7 192.3
Allowance for inventory reserves (0.8) (13.9)
Total inventories, net $ 210.9 $ 178.4
v3.22.0.1
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]    
Land $ 11.2 $ 13.3
Buildings and improvements 415.0 422.5
Machinery and equipment 1,391.9 1,398.7
Construction in progress 9.6 11.0
Subtotal 1,827.7 1,845.5
Less allowances for depreciation (1,317.5) (1,275.7)
Property, plant and equipment, net $ 510.2 $ 569.8
v3.22.0.1
Property, Plant and Equipment - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Abstract]      
Depreciation $ 59.8 $ 65.0 $ 67.4
Accelerated depreciation 1.5 2.4 1.9
Impairment charges and loss on sale (1.3) $ 2.6 $ (9.0)
Impairment charges related to the indefinite idling of assets $ 10.6    
v3.22.0.1
Property, Plant and Equipment - Schedule of Supplemental Cash Flow Information Related to Non-Cash Investing Activity (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Supplemental Cash Flow Elements [Abstract]      
Accrued property, plant and equipment purchases $ 3.6 $ 2.0 $ 5.3
v3.22.0.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 72.7 $ 73.3
Accumulated Amortization 66.0 64.0
Net Carrying Amount 6.7 9.3
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 6.3 6.3
Accumulated Amortization 5.8 5.4
Net Carrying Amount 0.5 0.9
Technology use    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 9.0 9.0
Accumulated Amortization 9.0 9.0
Capitalized software    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 57.4 58.0
Accumulated Amortization 51.2 49.6
Net Carrying Amount $ 6.2 $ 8.4
v3.22.0.1
Intangible Assets - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life 8 years    
Amortization expense for intangible assets $ 3,300,000 $ 5,000,000.0 $ 6,100,000
Loss on disposal of intangibles $ 0 200,000 100,000
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life 15 years    
Technology use      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life 15 years    
Capitalized software      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining useful life 6 years    
Accelerated amortization expense   $ 1,000,000.0 $ 900,000
v3.22.0.1
Intangible Assets - Estimated Annual Amortization Expense (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 $ 2.6
2023 2.1
2024 1.1
2025 0.1
2026 $ 0.1
v3.22.0.1
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Lessee, Lease, Description [Line Items]    
Lessee, operating lease, option to extend true  
Extension term 1 year  
Weighted average remaining lease term for operating leases 2 years 9 months 18 days  
Weighted average discount rate used to measure operating lease liabilities 2.70% 3.20%
Leases not yet commenced $ 0.9  
Minimum    
Lessee, Lease, Description [Line Items]    
Remaining lease term 1 year  
Lessee, operating lease not yet commenced, lease term 1 year  
Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term 5 years  
Lessee, operating lease not yet commenced, lease term 5 years  
v3.22.0.1
Leases - Lease Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Operating lease cost $ 8.2 $ 8.8 $ 7.4
Short-term lease cost 0.7 0.7 1.9
Total lease cost $ 8.9 $ 9.5 $ 9.3
v3.22.0.1
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Cash paid for amounts included in the measurement of operating lease liabilities $ 8.2 $ 8.8 $ 7.5
Right-of-use assets obtained in exchange for operating lease obligations $ 3.1 $ 12.5 $ 4.3
v3.22.0.1
Leases - Future Minimum Lease Payments (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Leases [Abstract]  
2022 $ 6.0
2023 5.0
2024 2.8
2025 1.1
After 2025 0.2
Total future minimum lease payments 15.1
Less amount of lease payment representing interest (0.6)
Total present value of lease payments $ 14.5
v3.22.0.1
Financing Arrangements - Summary of Current and Non-current Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total debt $ 44.9 $ 78.2
Less current portion of debt 44.9 38.9
Total non-current portion of debt 0.0 39.3
Convertible Senior Notes due 2021    
Debt Instrument [Line Items]    
Total debt   38.9
Convertible Senior Notes due 2025    
Debt Instrument [Line Items]    
Total debt $ 44.9 $ 39.3
v3.22.0.1
Financing Arrangements - Narrative (Details)
$ / shares in Units, shares in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 15, 2020
USD ($)
$ / shares
Oct. 15, 2019
USD ($)
Jan. 31, 2022
USD ($)
Dec. 31, 2020
USD ($)
May 31, 2016
USD ($)
$ / shares
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
d
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]                    
Settled with cash payment               $ 38,900,000    
Loss on extinguishment of debt                 $ 900,000  
Initial value of principal       $ 78,200,000     $ 44,900,000 44,900,000 78,200,000  
Interest paid               5,100,000 7,600,000 $ 11,500,000
Convertible Notes                    
Debt Instrument [Line Items]                    
Final cash payment of interest made to noteholders               $ 4,100,000 10,100,000 $ 9,600,000
Third Amended Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Line of credit facility, tentative future commitment increase   $ 100,000,000.0                
Line of credit facility, unused capacity, commitment fee percentage   0.25%                
Maturity date               Oct. 15, 2024    
Convertible Senior Notes due 2021, Issuance One | Convertible Notes                    
Debt Instrument [Line Items]                    
Debt Instrument, Face Amount         $ 75,000,000.0          
Convertible Senior Notes due 2021, Over-allotment | Convertible Notes                    
Debt Instrument [Line Items]                    
Debt Instrument, Face Amount         11,300,000          
Convertible Senior Notes due 2021                    
Debt Instrument [Line Items]                    
Maturity date               Jun. 01, 2021    
Terms of conversion               The Convertible Senior Notes due 2021 were settled with a cash payment of $38.9 million and the issuance of shares of 0.1 million, as most noteholders exercised the conversion option prior to the date of maturity.    
Principal amount       40,200,000     0 $ 0 40,200,000  
Settlement through issuance of shares | shares               0.1    
Final cash payment of interest made to noteholders               $ 1,200,000    
Initial value of principal       38,900,000 $ 66,900,000       38,900,000  
Effective interest rate         12.00%          
Principal amount allocated to conversion feature         $ 19,400,000          
Transaction costs, liability component of convertible debt         2,400,000          
Transaction costs, equity component of convertible debt         $ 700,000          
Exchange of aggregate principal amount       46,000,000.0            
Convertible senior notes deemed to be extinguished       46,000,000.0            
Convertible Senior Notes due 2021 | Convertible Notes                    
Debt Instrument [Line Items]                    
Maturity date         Jun. 01, 2021          
Debt instrument, interest rate, stated percentage         6.00%          
Debt instrument interest payment dates description         June 1 and December 1 of each year, beginning on December 1, 2016          
Debt instrument, convertible, conversion price | $ / shares         $ 12.58          
Debt instrument, convertible, conversion ratio         0.0795165          
Debt instrument, convertible, amounts by which instrument can be converted         $ 1,000          
Proceeds from convertible debt         $ 83,200,000          
Convertible Senior Notes due 2025                    
Debt Instrument [Line Items]                    
Line of credit facility, maximum borrowing capacity       46,000,000.0         46,000,000.0  
Maturity date Dec. 01, 2025                  
Terms of conversion               The Convertible Senior Notes due 2025 are convertible at the option of the holders in certain circumstances and during certain periods into the Company's common shares, cash, or a combination thereof, at the Company's election.    
Principal amount       $ 46,000,000.0     $ 46,000,000.0 $ 46,000,000.0 $ 46,000,000.0  
Debt instrument, threshold trading days | d             20      
Debt Instrument, threshold consecutive trading days | d             30      
Debt Instrument, threshold Percentage of stock price conversion             130.00%      
Debt instrument, interest rate, stated percentage 6.00%     6.00%         6.00%  
Debt instrument interest payment dates description June 1 and December 1 of each year, beginning on December 1, 2021                  
Debt instrument, convertible, conversion price | $ / shares $ 7.82                  
Debt instrument, convertible, conversion ratio 0.1278119                  
Debt instrument, convertible, amounts by which instrument can be converted $ 1,000                  
Initial value of principal       $ 39,300,000     $ 44,900,000 44,900,000 $ 39,300,000  
Transaction costs, debt gross             1,500,000 1,500,000    
Cash proceeds from issuance of convertible senior notes       $ 0            
Percentage of different from present value of remaining cash flows of convertible senior notes       10.00%            
Fair value of convertible notes             107,000,000.0 107,000,000.0    
Outstanding borrowings             0 0    
Convertible Senior Notes due 2025 | Scenario, Forecast                    
Debt Instrument [Line Items]                    
Loss on extinguishment of debt           $ (7,500,000)        
Unamortized debt issuance cost           $ 100,000        
Convertible Senior Notes due 2025 | Subsequent Event                    
Debt Instrument [Line Items]                    
Debt Instrument, Face Amount     $ 5,000,000.0              
Settled with cash payment     $ 12,400,000              
Convertible Senior Notes due 2021                    
Debt Instrument [Line Items]                    
Settled with cash payment               38,900,000    
Loss on extinguishment of debt 900,000                  
Initial value of principal       $ 38,900,000         $ 38,900,000  
Fair value of extinguished portion calculated using market rate       9.00%            
Debt instrument remaining term       5 months 15 days            
Remaining accrued and unpaid interest of debt 46,000,000.0                  
Payment of accrued and unpaid interest of debt $ 100,000                  
Credit Agreement | Third Amended Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Line of credit facility, maximum borrowing capacity   $ 400,000,000.0                
Amount available under amended credit agreement             $ 251,100,000 $ 251,100,000    
Commercial and Standby Letters of Credit | Third Amended Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Line of credit facility, borrowing sublimit   15,000,000.0                
Swingline Loans | Third Amended Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Line of credit facility, borrowing sublimit   $ 40,000,000.0                
Swingline Loans | Third Amended Credit Facility [Member] | Federal Reserve Bank of New York Rate                    
Debt Instrument [Line Items]                    
Variable interest rate, spread   0.50%                
Swingline Loans | Third Amended Credit Facility [Member] | London Interbank Offered Rate (LIBOR)                    
Debt Instrument [Line Items]                    
Variable interest rate, spread   1.00%                
First In, Last Out (FILO) | Third Amended Credit Facility [Member]                    
Debt Instrument [Line Items]                    
Line of credit facility, tentative future commitment increase   $ 30,000,000.0                
v3.22.0.1
Financing Arrangements - Schedule of Net Carrying Amount of Extinguished Convertible Senior Notes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 15, 2020
Dec. 31, 2020
Debt Instrument [Line Items]    
Loss on extinguishment of debt   $ (0.9)
Convertible Senior Notes due 2021    
Debt Instrument [Line Items]    
Principal $ 46.0  
Less: Debt issuance costs, net of amortization (0.1)  
Less: Debt discount, net of amortization (1.5)  
Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 45.3  
Loss on extinguishment of debt $ (0.9)  
v3.22.0.1
Financing Arrangements - Schedule of Amount Allocated to Reacquisition of Equity Component Included as Reduction To Additional Paid-In Capital (Details) - Convertible Senior Notes due 2021
$ in Millions
Dec. 15, 2020
USD ($)
Debt Instrument [Line Items]  
Fair value of extinguished Convertible Senior Notes due 2021 as of December 15, 2020 $ 45.3
Principal of extinguished Convertible Senior Notes due 2021 46.0
Reduction of additional paid-in capital $ (0.7)
v3.22.0.1
Financing Arrangements - Schedule of Convertible Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
May 31, 2016
Debt Instrument [Line Items]      
Total debt $ 44.9 $ 78.2  
Convertible Senior Notes due 2021      
Debt Instrument [Line Items]      
Principal 0.0 40.2  
Less: Debt issuance costs, net of amortization   (0.1)  
Less: Debt discount, net of amortization   (1.2)  
Total debt   38.9 $ 66.9
Convertible Senior Notes due 2025      
Debt Instrument [Line Items]      
Principal 46.0 46.0  
Less: Debt issuance costs, net of amortization (1.1) (1.3)  
Less: Debt discount, net of amortization   (5.4)  
Total debt $ 44.9 $ 39.3  
v3.22.0.1
Financing Arrangements - Schedule of Interest Expense (Details) - Convertible Notes - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Contractual interest expense $ 3.7 $ 5.2 $ 5.2
Amortization of debt issuance costs 0.4 0.5 0.4
Amortization of debt discount   4.4 4.0
Total $ 4.1 $ 10.1 $ 9.6
v3.22.0.1
Retirement and Postretirement Plans - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 29, 2021
Jun. 30, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Benefit cost amortization period         12 years
Pension cost and other postretirement benefits cost (reversal of cost), remeasurement     $ (20.1) $ 14.7 $ 40.6
Defined contribution plan cost     2.8 3.2 7.1
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    
Accumulated benefit obligation for plans which the accumulated benefit obligation exceeded the fair value of plan assets     $ 1,009.6    
Postretirement          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Reduction of future liability         8.1
Defined benefit plan, accumulated benefit obligation, increase (decrease) for plan amendment   $ 70.2     70.2
Expected annuity purchase year     2023    
Benefit plan terminated effective date     Mar. 31, 2022    
Expected contributions and payments from 2023 through 2031     $ 36.4    
Pension          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Reduction of future liability         0.8
Settlements     31.1 24.7  
Retirement plan expenses     3.0 3.8  
Accumulated benefit obligation     1,303.2 $ 1,377.6  
Expected contributions and payments from 2023 through 2031     445.0    
Supplemental Plan          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Accumulated benefit obligation for plans which the accumulated benefit obligation exceeded the fair value of plan assets     $ 23.6    
TimkenSteel Corporation Bargaining Unit Welfare Plan for Retirees          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Pension cost and other postretirement benefits cost (reversal of cost), remeasurement         4.4
Wellfare Benefit Plan          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Reduction of future postretirement liability         $ 2.3
Medical and Prescription Drug Benefits          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Health care cost trend rate     10.00% 5.50%  
Pension and Postretirement Plans          
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]          
Expected contributions and payments in next 12 months     $ 5.3    
Expected contributions and payments from 2023 through 2031     $ 33.0    
v3.22.0.1
Retirement and Postretirement Plans - Change in Benefit Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Pension      
Change in benefit obligation:      
Benefit obligation at the beginning of year $ 1,395.1 $ 1,311.4  
Service cost 17.4 19.4 $ 17.4
Interest cost 36.2 42.7 48.9
Actuarial (gains) losses (37.9) 114.8  
Benefits paid (73.9) (71.2)  
Plan amendment 14.2    
Settlements (31.1) (24.7)  
Foreign currency translation adjustment (0.8) 2.7  
Benefit obligation at the end of year 1,319.2 1,395.1 1,311.4
Pension | United States of America | Bargaining Plan      
Change in benefit obligation:      
Benefit obligation at the beginning of year 1,053.9 973.3  
Service cost 17.0 16.9 14.9
Interest cost 28.4 33.3 36.8
Actuarial (gains) losses (31.6) 86.3  
Benefits paid (56.5) (55.9)  
Plan amendment 14.2    
Benefit obligation at the end of year 1,025.4 1,053.9 973.3
Pension | United States of America | Salaried Plan      
Change in benefit obligation:      
Benefit obligation at the beginning of year 228.7 234.1  
Service cost 0.4 2.5 2.4
Interest cost 5.9 7.0 9.4
Actuarial (gains) losses (5.1) 21.6  
Benefits paid (11.4) (11.9)  
Settlements (31.1) (24.6)  
Benefit obligation at the end of year 187.4 228.7 234.1
Pension | United States of America | Supplemental Plan      
Change in benefit obligation:      
Benefit obligation at the beginning of year 27.3 25.2  
Interest cost 0.8 0.9 0.8
Actuarial (gains) losses (1.5) 1.8  
Benefits paid (3.0) (0.6)  
Benefit obligation at the end of year 23.6 27.3 25.2
Pension | United Kingdom | Pension Scheme      
Change in benefit obligation:      
Benefit obligation at the beginning of year 84.8 78.4  
Service cost     0.1
Interest cost 1.1 1.5 1.9
Actuarial (gains) losses 0.3 5.0  
Benefits paid (3.0) (2.8)  
Foreign currency translation adjustment (0.8) 2.7  
Benefit obligation at the end of year 82.4 84.8 78.4
Pension | Mexico | Pension Plan      
Change in benefit obligation:      
Benefit obligation at the beginning of year 0.4 0.4  
Actuarial (gains) losses   0.1  
Settlements   (0.1)  
Benefit obligation at the end of year 0.4 0.4 0.4
Postretirement      
Change in benefit obligation:      
Benefit obligation at the beginning of year 128.3 126.2  
Service cost 1.2 1.0 1.1
Interest cost 3.2 4.2 5.9
Actuarial (gains) losses (6.0) 6.1  
Benefits paid (8.9) (9.2)  
Benefit obligation at the end of year $ 117.8 $ 128.3 $ 126.2
v3.22.0.1
Retirement and Postretirement Plans - Change in Plan Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Pension    
Change in plan assets:    
Fair value of plan assets at the beginning of year $ 1,231.7 $ 1,155.4
Actual return on plan assets 44.6 167.0
Company contributions / payments 5.8 1.9
Benefits paid (73.9) (71.2)
Settlements (31.1) (24.7)
Foreign currency translation adjustment (1.1) 3.3
Fair value of plan assets at end of year 1,176.0 1,231.7
Funded status at end of year (143.2) (163.4)
Pension | United States of America | Bargaining Plan    
Change in plan assets:    
Fair value of plan assets at the beginning of year 884.3 817.3
Actual return on plan assets 35.0 122.9
Benefits paid (56.5) (55.9)
Fair value of plan assets at end of year 862.8 884.3
Funded status at end of year (162.6) (169.5)
Pension | United States of America | Salaried Plan    
Change in plan assets:    
Fair value of plan assets at the beginning of year 243.3 243.6
Actual return on plan assets 4.9 36.2
Benefits paid (11.4) (11.9)
Settlements (31.1) (24.6)
Fair value of plan assets at end of year 205.7 243.3
Funded status at end of year 18.3 14.5
Pension | United States of America | Supplemental Plan    
Change in plan assets:    
Company contributions / payments 3.0 0.6
Benefits paid (3.0) (0.6)
Funded status at end of year (23.6) (27.3)
Pension | United Kingdom | Pension Scheme    
Change in plan assets:    
Fair value of plan assets at the beginning of year 103.8 94.1
Actual return on plan assets 4.7 7.9
Company contributions / payments 2.8 1.3
Benefits paid (3.0) (2.8)
Foreign currency translation adjustment (1.1) 3.3
Fair value of plan assets at end of year 107.2 103.8
Funded status at end of year 24.8 19.0
Pension | Mexico | Pension Plan    
Change in plan assets:    
Fair value of plan assets at the beginning of year 0.3 0.4
Settlements   (0.1)
Fair value of plan assets at end of year 0.3 0.3
Funded status at end of year (0.1) (0.1)
Postretirement    
Change in plan assets:    
Fair value of plan assets at the beginning of year 82.2 82.3
Actual return on plan assets 2.4 7.0
Company contributions / payments 1.1  
Benefits paid (8.9) (7.1)
Fair value of plan assets at end of year 76.8 82.2
Funded status at end of year $ (41.0) $ (46.1)
v3.22.0.1
Retirement and Postretirement Plans - Amounts Recognized in the Balance Sheet (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Non-current assets $ 43.1 $ 33.5
Current liabilities (4.3) (2.3)
Non-current liabilities (223.0) (240.7)
Pension    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Non-current assets 43.1 33.5
Current liabilities (2.6) (0.6)
Non-current liabilities (183.7) (196.3)
Total assets (liabilities) recognized (143.2) (163.4)
Pension | United States of America | Bargaining Plan    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Non-current liabilities (162.6) (169.5)
Total assets (liabilities) recognized (162.6) (169.5)
Pension | United States of America | Salaried Plan    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Non-current assets 18.3 14.5
Total assets (liabilities) recognized 18.3 14.5
Pension | United States of America | Supplemental Plan    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Current liabilities (2.6) (0.6)
Non-current liabilities (21.0) (26.7)
Total assets (liabilities) recognized (23.6) (27.3)
Pension | United Kingdom | Pension Scheme    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Non-current assets 24.8 19.0
Total assets (liabilities) recognized 24.8 19.0
Pension | Mexico | Pension Plan    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Non-current liabilities (0.1) (0.1)
Total assets (liabilities) recognized (0.1) (0.1)
Postretirement    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Current liabilities (1.7) (1.7)
Non-current liabilities (39.3) (44.4)
Total assets (liabilities) recognized $ (41.0) $ (46.1)
v3.22.0.1
Retirement and Postretirement Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Pension    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Unrecognized prior service (benefit) cost $ 14.2 $ 0.2
Pension | United States of America | Bargaining Plan    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Unrecognized prior service (benefit) cost 13.6 (0.4)
Pension | United Kingdom | Pension Scheme    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Unrecognized prior service (benefit) cost 0.6 0.6
Postretirement    
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]    
Unrecognized prior service (benefit) cost $ (55.9) $ (61.9)
v3.22.0.1
Retirement and Postretirement Plans - Weighted Average Assumptions (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Pension    
Benefit Obligation    
Discount rate 2.96% 2.68%
Future compensation assumption 3.00% 2.29%
Benefit Cost    
Discount rate 2.68% 3.42%
Future compensation assumption 2.29% 2.32%
Expected long-term return on plan assets 5.76% 5.80%
Postretirement    
Benefit Obligation    
Discount rate 3.00% 2.65%
Benefit Cost    
Discount rate 2.65% 3.42%
Expected long-term return on plan assets 4.50% 4.50%
v3.22.0.1
Retirement and Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Pension      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost $ 17.4 $ 19.4 $ 17.4
Interest cost 36.2 42.7 48.9
Expected return on plan assets (67.4) (64.3) (65.0)
Amortization of prior service cost 0.2 0.3 0.4
Curtailments     (8.9)
Net remeasurement losses (gains) (15.2) 12.1 43.1
Net Periodic Benefit Cost (Income) (28.8) 10.2 35.9
Pension | United States of America | Bargaining Plan      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost 17.0 16.9 14.9
Interest cost 28.4 33.3 36.8
Expected return on plan assets (51.5) (47.5) (47.0)
Amortization of prior service cost 0.2 0.3 0.4
Net remeasurement losses (gains) (15.1) 10.8 41.7
Net Periodic Benefit Cost (Income) (21.0) 13.8 46.8
Pension | United States of America | Salaried Plan      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost 0.4 2.5 2.4
Interest cost 5.9 7.0 9.4
Expected return on plan assets (12.6) (13.5) (13.6)
Curtailments     (8.1)
Net remeasurement losses (gains) 2.5 (1.0) (2.0)
Net Periodic Benefit Cost (Income) (3.8) (5.0) (11.9)
Pension | United States of America | Supplemental Plan      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Interest cost 0.8 0.9 0.8
Curtailments     (0.8)
Net remeasurement losses (gains) (1.5) 1.8 4.2
Net Periodic Benefit Cost (Income) (0.7) 2.7 4.2
Pension | United Kingdom | Pension Scheme      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost     0.1
Interest cost 1.1 1.5 1.9
Expected return on plan assets (3.3) (3.3) (4.4)
Net remeasurement losses (gains) (1.1) 0.4 (0.9)
Net Periodic Benefit Cost (Income) (3.3) (1.4) (3.3)
Pension | Mexico | Pension Plan      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Net remeasurement losses (gains)   0.1 0.1
Net Periodic Benefit Cost (Income)   0.1 0.1
Postretirement      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost 1.2 1.0 1.1
Interest cost 3.2 4.2 5.9
Expected return on plan assets (3.4) (3.5) (3.9)
Amortization of prior service cost (6.0) (6.0) (3.8)
Net remeasurement losses (gains) (4.9) 2.6 6.4
Net Periodic Benefit Cost (Income) $ (9.9) $ (1.7) $ 5.7
v3.22.0.1
Retirement and Postretirement Plans - Schedule of Target Allocations for each Plan's Assets (Details)
Dec. 31, 2021
Pension | Equity securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 27.20%
Pension | Debt Securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 53.00%
Pension | Other Investments  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 19.80%
Pension | Bargaining Plan | United States of America | Equity securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 35.00%
Pension | Bargaining Plan | United States of America | Debt Securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 49.00%
Pension | Bargaining Plan | United States of America | Other Investments  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 16.00%
Pension | Salaried Plan | United States of America | Debt Securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 80.00%
Pension | Salaried Plan | United States of America | Other Investments  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 20.00%
Pension | Pension Scheme | United Kingdom | Equity securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 16.70%
Pension | Pension Scheme | United Kingdom | Debt Securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 33.30%
Pension | Pension Scheme | United Kingdom | Other Investments  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 50.00%
Pension | Pension Plan | Mexico | Debt Securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 100.00%
Postretirement | Equity securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 20.00%
Postretirement | Debt Securities  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 77.50%
Postretirement | Other Investments  
Defined Benefit Plan, Plan Assets, Allocation [Line Items]  
Target asset allocation 2.50%
v3.22.0.1
Retirement and Postretirement Plans - Allocation of Plan Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Pension      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets $ 1,176.0 $ 1,231.7 $ 1,155.4
Pension | Level 1, 2 and 3      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 531.8 722.6  
Pension | Level 1, 2 and 3 | Cash and cash equivalents      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 87.6 9.2  
Pension | Level 1, 2 and 3 | U.S government and agency securities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 173.9 345.7  
Pension | Level 1, 2 and 3 | Corporate bonds      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 244.7 276.9  
Pension | Level 1, 2 and 3 | Equity securities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 25.3 68.5  
Pension | Level 1, 2 and 3 | Mutual fund - fixed income      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets   0.1  
Pension | Level 1, 2 and 3 | Mutual fund - equities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets   22.0  
Pension | Level 1, 2 and 3 | Other      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 0.3 0.2  
Pension | Level 1      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 193.2 428.9  
Pension | Level 1 | Cash and cash equivalents      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 1.2 0.9  
Pension | Level 1 | U.S government and agency securities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 166.7 337.4  
Pension | Level 1 | Equity securities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 25.3 68.5  
Pension | Level 1 | Mutual fund - fixed income      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets   0.1  
Pension | Level 1 | Mutual fund - equities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets   22.0  
Pension | Level 2      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 338.6 293.7  
Pension | Level 2 | Cash and cash equivalents      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 86.4 8.3  
Pension | Level 2 | U.S government and agency securities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 7.2 8.3  
Pension | Level 2 | Corporate bonds      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 244.7 276.9  
Pension | Level 2 | Other      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 0.3 0.2  
Pension | Assets measured at net asset value      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets $ 644.2 $ 509.1  
Redemption period 90 days 90 days  
Postretirement      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets $ 76.8 $ 82.2 $ 82.3
Postretirement | Level 1, 2 and 3      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 9.6 19.7  
Postretirement | Level 1, 2 and 3 | Cash and cash equivalents      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 3.8 3.0  
Postretirement | Level 1, 2 and 3 | Mutual fund - fixed income      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 5.8 11.7  
Postretirement | Level 1, 2 and 3 | Mutual fund - equities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets   5.0  
Postretirement | Level 1      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 9.6 19.7  
Postretirement | Level 1 | Cash and cash equivalents      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 3.8 3.0  
Postretirement | Level 1 | Mutual fund - fixed income      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets 5.8 11.7  
Postretirement | Level 1 | Mutual fund - equities      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets   5.0  
Postretirement | Assets measured at net asset value      
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]      
Total Assets $ 67.2 $ 62.5  
Redemption period 90 days 90 days  
v3.22.0.1
Retirement and Postretirement Plans - Benefit Payments (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Pension  
Benefit Payments:  
2022 $ 96.1
2023 89.7
2024 87.3
2025 87.7
2026 88.2
2027-2031 445.0
Pension | Bargaining Plan | United States of America  
Benefit Payments:  
2022 76.2
2023 71.1
2024 70.1
2025 71.7
2026 72.8
2027-2031 356.7
Pension | Salaried Plan | United States of America  
Benefit Payments:  
2022 15.4
2023 15.8
2024 14.2
2025 12.9
2026 12.5
2027-2031 57.0
Pension | Supplemental Plan | United States of America  
Benefit Payments:  
2022 2.3
2023 0.5
2024 0.6
2025 0.6
2026 0.5
2027-2031 17.8
Pension | Pension Scheme | United Kingdom  
Benefit Payments:  
2022 2.2
2023 2.3
2024 2.4
2025 2.5
2026 2.4
2027-2031 13.0
Pension | Pension Plan | Mexico  
Benefit Payments:  
2027-2031 0.5
Postretirement  
Benefit Payments:  
2022 10.5
2023 9.7
2024 8.9
2025 8.4
2026 8.0
2027-2031 $ 36.4
v3.22.0.1
Stock-Based Compensation - Narrative (Details)
 12 Months Ended
May 05, 2021
shares
May 06, 2020
USD ($)
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Stock options granted     0    
Stock-based compensation expense | $     $ 7,300,000 $ 6,600,000 $ 7,400,000
Future stock-based compensation expense | $     $ 9,700,000    
Future stock-based compensation expense, period of recognition     1 year 7 months 6 days    
Time-Based Restricted Stock Units          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Vesting rights description     These restricted stock units do not have any performance conditions for vesting.    
Performance-Based Restricted Stock Units          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Vesting rights description     The overall vesting period is generally three years, with relative total shareholder return measured for the one, two and three-year periods creating effectively a “nested” 1-year, 2-year, and 3-year plan to support rapid and sustained shareholder value creation.    
Vesting period     3 years    
Number of trading days to calculate average closing stock price     20 days    
TimkenSteel 2020 Plan          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Aggregate share limit ratio   1      
Stock-based compensation, extended-term plan May 05, 2031        
Shares available for grant (in shares)   2,000,000.0 4,000,000.0    
Shares available for grant (in shares) 2,000,000        
TimkenSteel 2020 Plan | Maximum          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Number of shares authorized (in shares) 2,000,000 2,000,000.0      
Share-based compensation, full value award limit 1,800,000        
TimkenSteel 2020 Plan | Non-employee Director | Maximum          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Share-based compensation, maximum grant value | $   $ 500,000      
v3.22.0.1
Stock-Based Compensation - Assumptions Used in Calculating Fair Value of Options (Details) - $ / shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]    
Weighted-average fair value per option (in USD per share) $ 2.23 $ 5.54
Risk-free interest rate 0.96% 2.63%
Dividend yield 0.00% 0.00%
Expected stock volatility 42.67% 41.36%
Expected life - years 6 years 6 years
v3.22.0.1
Stock-Based Compensation - Stock Option Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 2,931,065
Granted (in shares) | shares 0
Vested (in shares) | shares (527,870)
Canceled, forfeited or expired (in shares) | shares (349,107)
Ending balance (in shares) | shares 2,054,088
Options expected to vest, number of shares (in shares) | shares 314,180
Options exercisable, number of shares (in shares) | shares 1,739,908
Weighted Average Exercise Price  
Beginning balance (in USD per share) | $ / shares $ 18.61
Granted (in USD per share) | $ / shares 0
Exercised (in USD per share) | $ / shares 7.74
Canceled, forfeited or expired (in USD per share) | $ / shares 24.42
Ending balance (in USD per share) | $ / shares 20.41
Options expected to vest, weighted average exercise price (in USD per share) | $ / shares 7.53
Options exercisable, weighted average exercise price (in USD per share) | $ / shares $ 22.74
Additional Information  
Outstanding, weighted average remaining contractual term 4 years 4 months 24 days
Options expected to vest, weighted average remaining contractual term 7 years 9 months 18 days
Options exercisable, weighted average remaining contractual term 3 years 9 months 18 days
Outstanding, aggregate intrinsic value | $ $ 5.6
Options expected to vest, aggregate intrinsic value | $ 2.8
Options exercisable, aggregate intrinsic value | $ $ 2.8
v3.22.0.1
Stock-Based Compensation - Schedule of Time-Based Restricted Stock Unit Activity (Details) - Time-Based Restricted Stock Units
 12 Months Ended
Dec. 31, 2021
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 1,372,326
Granted (in shares) | shares 938,995
Vested (in shares) | shares (545,453)
Canceled, forfeited or expired (in shares) | shares (97,818)
Ending balance (in shares) | shares 1,668,050
Weighted Average Grant Date Fair Value  
Beginning balance (in USD per share) | $ / shares $ 7.62
Granted (in USD per share) | $ / shares 7.70
Vested (in USD per share) | $ / shares 7.02
Canceled, forfeited or expired (in USD per share) | $ / shares 7.53
Ending balance (in USD per share) | $ / shares $ 7.92
v3.22.0.1
Stock-Based Compensation - Schedule of Performance-Based Restricted Stock Unit Activity (Details) - Performance-Based Restricted Stock Units
 12 Months Ended
Dec. 31, 2021
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 175,964
Granted (in shares) | shares 651,240
Canceled, forfeited or expired (in shares) | shares (33,160)
Ending balance (in shares) | shares 794,044
Weighted Average Grant Date Fair Value  
Beginning balance (in USD per share) | $ / shares $ 4.98
Granted (in USD per share) | $ / shares 7.57
Canceled, forfeited or expired (in USD per share) | $ / shares 10.12
Ending balance (in USD per share) | $ / shares $ 6.91
v3.22.0.1
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance $ 507.5 $ 563.1 $ 612.9
Other comprehensive income before reclassifications, before income tax 0.3 1.4  
Amounts reclassified from accumulated other comprehensive income (loss), before income tax (5.8) (5.6)  
Amounts deferred to accumulated other comprehensive income (loss), before income tax (14.2)    
Tax effect   (0.1) (16.7)
Other comprehensive income (loss), net of tax (19.7) (4.3) 53.6
Ending balance 664.6 507.5 563.1
Foreign Currency Translation Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (5.4) (6.8)  
Other comprehensive income before reclassifications, before income tax 0.3 1.4  
Other comprehensive income (loss), net of tax 0.3 1.4  
Ending balance (5.1) (5.4) (6.8)
Pension and Postretirement Liability Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 45.8 51.5  
Amounts reclassified from accumulated other comprehensive income (loss), before income tax (5.8) (5.6)  
Amounts deferred to accumulated other comprehensive income (loss), before income tax (14.2)    
Tax effect   (0.1)  
Other comprehensive income (loss), net of tax (20.0) (5.7)  
Ending balance 25.8 45.8 51.5
Accumulated Other Comprehensive Income (Loss)      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 40.4 44.7 (8.9)
Other comprehensive income (loss), net of tax (19.7) (4.3) 53.6
Ending balance $ 20.7 $ 40.4 $ 44.7
v3.22.0.1
Contingencies - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Loss Contingency Accrual, Disclosures [Abstract]    
Contingency reserves $ 0.3 $ 1.0
v3.22.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Allowance for Uncollectible Accounts      
Valuation And Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period $ 1.3 $ 1.5 $ 1.7
Charged to Costs and Expenses 0.6    
Deductions   (0.2) (0.2)
Balance at End of Period 1.9 1.3 1.5
Allowance for Inventory Reserves      
Valuation And Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 13.9 10.7 6.1
Charged to Costs and Expenses 2.8 4.1 9.0
Deductions (15.9) (0.9) (4.4)
Balance at End of Period 0.8 13.9 10.7
Valuation Allowance on Deferred Tax Assets      
Valuation And Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 47.7 34.9 43.7
Charged to Costs and Expenses   12.4  
Charged to Other Accounts 4.8 1.4 16.7
Deductions (37.0) (1.0) (25.5)
Balance at End of Period $ 15.5 $ 47.7 $ 34.9