Impairment and Restructuring Charges

3 Months Ended

Mar. 31, 2026

Note 15 - Impairment and Restructuring Charges

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

For the three months ended March 31, 2026:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total

Severance and related benefit costs	$	2.5	$	0.5	$	0.5	$	3.5
Exit costs	(0.1)		0.2		—		0.1
Total	$	2.4	$	0.7	$	0.5	$	3.6

For the three months ended March 31, 2025:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total

Severance and related benefit costs	$	0.6	$	0.7	$	9.4	$	10.7
Exit costs	—		0.2		—		0.2
Total	$	0.6	$	0.9	$	9.4	$	10.9

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 former President and CEO, had mutually agreed that Mr. Mehta would depart from the Company, including resigning as a member of the Company’s Board of Directors (the "Board"), effective immediately. During the three months ended March 31, 2025, the Company recorded severance expense of $9.3 million, plus related taxes, for Mr. Mehta's settlement arrangement and release of claims in connection with his termination without cause. $7.3 million of this amount was paid in 2025 and 2026, with the remaining amount to be paid in 2027.

Engineered Bearings:

On May 14, 2025, the Company announced the closure of its bearing manufacturing plant in Heilbronn, Germany. The closure of this facility is expected to be completed by the end of 2026 and affect approximately 50 employees. The Company expects to incur approximately $12 million to $15 million of pretax costs in total related to this closure. During the three months ended March 31, 2026, the Company recorded severance and related benefits of $2.5 million related to this closure. The Company has incurred cumulative pretax costs related to this closure of $10.2 million as of March 31, 2026, 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, 2026 and twelve months ended December 31, 2025:


	March 31, 2026		December 31, 2025
Beginning balance, January 1	$	13.1	$	3.7
Expense	3.6		25.2
Payments	(6.9)		(15.8)
Ending balance	$	9.8	$	13.1

The restructuring accrual at March 31, 2026 was included in other current liabilities on the Consolidated Balance Sheet. On the Consolidated Balance Sheet, $11.1 million of the restructuring accrual at December 31, 2025 was included in other current liabilities, with the remaining $2.0 million included in other non-current liabilities.

TIMKEN CO 10-Q