v3.25.1
Financing Arrangements
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Financing Arrangements
Note 10 - Financing Arrangements
Short-term debt at March 31, 2025 and December 31, 2024 was as follows:
March 31,
2025		December 31,
2024
Borrowings under lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 3.01% to 3.46% at March 31, 2025 and 3.36% to 3.95% at December 31, 2024
$7.4 $8.7 
Short-term debt$7.4 $8.7 
Lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings. Most of these lines of credit are uncommitted. At March 31, 2025, the Company’s foreign subsidiaries had borrowings outstanding of $7.4 million and bank guarantees of $0.3 million.
Long-term debt at March 31, 2025 and December 31, 2024 was as follows:
March 31,
2025		December 31,
2024
Variable-rate Accounts Receivable Facility with an interest rate of 5.31%
   at March 31, 2025
$30.0 $— 
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027,
   with an interest rate of 2.02%
162.2 155.3 
Variable-rate Term Loan(1), maturing on December 5, 2027, with an interest rate
   of 5.55% at March 31, 2025 and 5.58% at December 31, 2024
369.6 369.6 
Fixed-rate Medium-Term Notes, Series A(1), maturing at various dates through
   May 2028, with interest rates ranging from 6.74% to 7.76%
154.9 154.8 
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with
   an interest rate of 4.50%
398.2 398.1 
Fixed-rate Senior Unsecured Notes(1), maturing on April 1, 2032, with an
   interest rate of 4.13%
345.5 345.1 
Fixed-rate Euro Senior Unsecured Notes(1), maturing on May 23, 2034, with an
   interest rate of 4.13%
638.0 609.7 
Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an
   interest rate of 2.15%
10.8 10.6 
Other10.5 10.8 
   Total debt$2,119.7 $2,054.0 
   Less: current maturities14.3 4.3 
Long-term debt$2,105.4 $2,049.7 
(1) Net of discounts and fees
Note 10 - Financing Arrangements (continued)
The Company has a $100 million Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"), which matures on November 30, 2026. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited by certain borrowing base limitations; however, availability under the Accounts Receivable Facility was not reduced by any such borrowing base limitations at March 31, 2025. As of March 31, 2025, there was $30.0 million of outstanding borrowings under the Accounts Receivable Facility, which reduced the availability under this facility to $70.0 million. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income.
On December 5, 2022, the Company entered into the Fifth Amended and Restated Credit Agreement ("Credit Agreement"), which is comprised of a $750 million unsecured revolving credit facility ("Senior Credit Facility") and a $400 million unsecured term loan facility ("2027 Term Loan") that each mature on December 5, 2027. The interest rates under the Credit Agreement are based on Secured Overnight Financing Rate ("SOFR"). At March 31, 2025, the Company had no outstanding borrowings under the Senior Credit Facility. The Credit Agreement has two financial covenants: a consolidated net leverage ratio and a consolidated interest coverage ratio.
On May 23, 2024, the Company issued fixed-rate Euro senior unsecured notes ("2034 Notes") in the aggregate principal amount of €600 million with an interest rate of 4.13%, maturing on May 23, 2034. Proceeds from the 2034 Notes were used for the redemption of the Company's outstanding fixed-rate unsecured senior notes in the aggregate principal amount of $350 million that were due to mature on September 1, 2024 ("2024 Notes"), as well as the repayment of other debt outstanding at the time of issuance.
At March 31, 2025, the Company was in full compliance with all applicable covenants on its outstanding debt.
In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to certain insurance contracts and indirect taxes. At March 31, 2025, outstanding letters of credit totaled $57.2 million, most with expiration dates within 12 months.
The maturities of long-term debt (including $8.6 million of finance leases) subsequent to March 31, 2025 are as follows:
Year
2025$3.9 
202684.2 
2027520.6 
2028522.5 
20292.0 
20301.5 
Thereafter1,002.8 
The table above excludes $17.8 million of unamortized discounts and fees that are netted against long-term debt at March 31, 2025.