Financial Highlights 

Balance Sheet | Income Statement | Cash Flow | Summary Financials
 
(Dollars in millions, except per share data)
 
(Dollars in millions)
Statements of Cash Flow 12/31/2010 12/31/2009

12/31/2008

CASH PROVIDED (USED)      
Operating Activities  
   Net income (loss) attributable to The Timken Company $274.8 ($134.0) $267.7
      Net (income) loss from discontinued operations (7.4) 72.6 11.3
      Net income (loss) attributable to noncontrolling interest 2.1 (4.6) 3.6
   Adjustments to reconcile income from continuing operations
      to net cash provided by operating activities:      
       Depreciation and amortization 189.7 201.5 200.8
       Impairment charges 4.7 113.7 20.1
       Loss (gain) on sale of assets 6.5 6.8 (15.2)
       Deferred income tax provision 58.8 22.8 1.9
       Stock-based compensation expense 16.9 14.9 16.8
Pension and other postretirement expense 93.1 96.7 84.7
Pension contributions and other postretirement benefit payments (337.0) (113.5) (70.5)
       Changes in operating assets and liabilities:      
          Accounts receivable (104.8) 174.5 107.6
          Inventories (150.0) 356.1 (97.7)
          Accounts payable and accrued expenses 173.6 (156.1) (57.9)
          Income taxes 97.2 (48.6) 35.7
          Other - net (12.9) (2.7) (8.0)
       Net Cash Provided by Operating Activities - Continuing Operations 305.3 600.1 500.9
       Net Cash Provided (Used) by Operating Activities - Discontinuing Operations 7.4 (12.4) 76.7
         Net Cash Provided by Operating Activities 312.7 587.7 577.6
     
Investing Activities      
   Capital expenditures (115.8) (114.1) (258.1)
   Acquisitions (22.6) (0.4) (86.0)
   Proceeds from disposals of property, plant and equipment 1.9 2.6 36.4
   Divestitures - 303.6 -
Investments in short-term marketable securities (15.0) - -
   Other (1.4) 4.9 0.5
      Net Cash (Used) Provided by Investing Activities - Continuing Operations (152.9) 196.6 (307.2)
      Net Cash Used by Investing Activities - Discontinued Operations - (2.4) (13.5)
        Net Cash (Used) Provided by Investing Activities (152.9) 194.2 (320.7)
     
Financing Activities      
   Cash dividends paid to shareholders (51.3) (43.2) (67.5)
   Purchase of Treasury Notes (29.2) - -
   Net proceeds from common share activity 50.4 0.9 16.9
   Accounts receivable securitization financing borrowings - - 225.0
   Accounts receivable securitization financing payments - - (225.0)
   Proceeds from issuance of long-term debt 18.2 255.0 810.4
   Deferred financing costs - (10.8) -
   Payments on long-term debt (13.7) (305.7) (884.1)
   Short-term debt activity -- net (3.8) (74.2) (21.6)
   Other (3.5) - -
         Net Cash Used by Financing Activities (32.9) (178.0) (145.9)
Effect of exchange rate changes on cash (5.3) 18.2 (20.5)
         Increase In Cash and Cash Equivalents 121.6 622.1 90.5
Cash and cash equivalents at beginning of year 755.5 133.4 42.9
         Cash and Cash Equivalents at End of Year $877.1 $755.5 $133.4
*See accompanying Notes to Consolidated Financial Statement filed in the latest Form 10-K.*
         Free cash flow(1): 12/31/2010 12/31/2009 12/31/2008    
   Net cash provided by operating activities $312.7 $587.7 $577.6    
   Less: capital expenditures (115.8) (114.10) (258.10)    
   Less: cash dividends paid to shareholders (51.3) (43.2) (67.5)    
         Free cash flow $145.6 $430.4 $252.0    

 

(1) Management believes that free cash flow is useful to investors because it is a meaningful indicator of cash   generated from operations that is available for the execution of its business strategy.