Impairment and Restructuring Charges |
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| Impairment and Restructuring Charges | Note 14 - Impairment and Restructuring Charges Impairment and restructuring charges by segment are comprised of the following: For the three months ended March 31, 2025:
For the three months ended March 31, 2024:
The following discussion explains the more significant impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts included in the tables above. Corporate: On March 31, 2025, Timken announced that the Company and Tarak B. Mehta, the President and CEO of the Company, had mutually agreed that Mr. Mehta would depart from the Company, including resigning as a member of the Company’s Board of Directors (the "Board"), effective immediately. The Company also announced that the Board had appointed Richard G. Kyle as the interim President and CEO of the Company, effective immediately. Mr. Kyle serves as a member of the Board and previously acted as Advisor to the CEO of the Company from September 2024 until his retirement in February 2025 after having previously served as President and CEO of the Company from 2014 to 2024. During the three months ended March 31, 2025, the Company recorded severance expense of $9.3 million, plus related taxes, for Mr. Mehta's settlement arrangement and release of claims. Approximately two-thirds of this amount is expected to be paid in 2025, with the remaining amounts paid in 2026 and 2027. Engineered Bearings: On February 20, 2025, the Company announced the closure of its bearing manufacturing plant in Hiddenite, North Carolina. This plant was part of the American Roller Bearing Company acquisition completed on January 31, 2023. The Company will transfer its operations to other bearing manufacturing facilities in the United States. The closure of this facility is expected to be completed during the first half of 2026 and is expected to affect approximately 60 employees. The Company expects to incur approximately $5 million to $7 million of pretax costs in total related to this closure. During the three months ended March 31, 2025, the Company recorded severance and related benefits of $0.5 million related to this closure. The Company has incurred cumulative pretax costs related to this closure of $1.9 million as of March 31, 2025, including rationalization costs recorded in cost of products sold. Note 14 - Impairment and Restructuring Charges (continued) Industrial Motion: On December 6, 2024, the Company announced a reduction in force for its belts manufacturing facility in Springfield, Missouri. The reorganization of this facility is expected to affect approximately 100 employees and be completed during the first half of 2026. On November 30, 2023, the Company announced the closure of its belts manufacturing facility in Fort Scott, Kansas. The Company expects to transfer its operations to other belts manufacturing facilities. The closure of this facility is expected to be completed during the second half of 2025 and is expected to affect approximately 60 employees. The Company expects to incur approximately $12 million to $14 million of pretax costs in total related to the closure of the Fort Scott facility and the reorganization of the Springfield facility. During the three months ended March 31, 2025 and 2024, the Company recorded severance and related benefit costs of $0.4 million and $0.8 million, respectively, related to these actions. The Company has incurred cumulative pretax costs related to these actions of $7.6 million as of March 31, 2025, including rationalization costs recorded in cost of products sold. Consolidated Restructuring Accrual: The following is a rollforward of the consolidated restructuring accrual for the three months ended March 31, 2025 and twelve months ended December 31, 2024:
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