What changed in this filing

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Item 1. Business

2022-02-15 compared with 2021-02-16 · 30 added, 28 removed, 198 unchanged (23% of the section changed)

As used herein, the term “Timken” or the “Company” refers to The Timken Company and its subsidiaries unless the context otherwise requires.

Timken designs and manages a growing portfolio of engineered bearings and power transmission products and related services.

Timken designs and manages a portfolio of engineered bearings and power transmission products and related services.

The Company’s growing portfolio features many strong brands, including Timken®, Philadelphia Gear®, Drives®, Cone Drive®, Rollon®, Lovejoy®, Diamond®, BEKA® and Groeneveld®.

The Company was founded in 1899 by Henry Timken, who received two patents on the design of a tapered roller bearing.

Timken later became, and continues to be, the world's largest manufacturer of tapered roller bearings, leveraging its expertise to develop a full portfolio of industry-leading products and services.

Timken remains the world's leading authority in tapered roller bearings, and has leveraged that expertise to develop a full portfolio of industry-leading engineered bearings and power transmission products.

Timken built its reputation as a global leader by applying its knowledge of metallurgy, friction management and power transmission to increase the reliability and efficiency of its customers' equipment across a diverse range of industries.

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thrust and specialty ball bearings;

and housed units.

and housed bearings.

Timken is a leading authority on tapered roller bearings, and leverages its position by applying engineering know-how and technology across its entire bearing portfolio.

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Precision ball bearings are manufactured to tight tolerances and come in miniature and instrument, thin section and ball screw support designs.

Housed Units.

Timken markets among the broadest range of housed bearing units in the industry.

Housed Bearings.

Timken markets among the broadest range of housed or mounted bearings in the industry.

These products deliver durable, heavy-duty components designed to protect spherical, tapered and ball bearings in debris-filled, contaminated or high-moisture environments.

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Linear Motion Products.

The Company designs and manufactures a global portfolio of Rollon® engineered linear motion products, including linear guides, telescopic rails and linear actuators.

The Company designs and manufactures a global portfolio of Rollon® engineered linear motion products, including linear guides, telescopic rails, linear actuators, seventh-axis robotic transfer units and gantry systems.

These engineered products are highly customized to control movements with different variability and complexity based on the application.

Rollon products serve a wide range of industries, including passenger rail, aerospace, packaging and logistics, medical and automation.

Industrial Drives.

The Company’s Philadelphia Gear® line of low- and high-speed gear drive designs are used in large-scale industrial applications such as crushing and pulverizing equipment, conveyors and pumps, power generation and military marine.

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Lubrication Systems.

The Company's Groeneveld® and BEKA® lubrication systems include a wide variety of automatic lubrication delivery devices, oil management systems and safety support systems designed to enhance vehicle and machine uptime in on- and off-highway applications.

These systems complement the Company's Interlube® line of lubrication systems, which are used by the commercial vehicle, mining, and heavy and general industries.

Timken also offers 27 formulations of grease, leveraging its knowledge of tribology and anti-friction bearings to enable smooth equipment operation.

The Company makes and markets a full line of Timken® and Carlisle® belts used in industrial, commercial and consumer applications.

The Company's Groeneveld® and BEKA® lubrication systems include a wide variety of automatic lubrication delivery devices, oil management systems and safety support systems designed to reduce operational costs for customers while increasing equipment uptime, productivity and safety.

These systems support many industries, including renewable energy, transportation, construction, mining, port, forestry and agriculture.

Timken also offers over two dozen different formulations of grease, leveraging its knowledge of tribology and anti-friction bearings to enable smooth equipment operation.

The Company makes and markets a full line of Timken® belts used in industrial, commercial and consumer applications.

The portfolio features more than 20,000 parts designed for demanding applications, which are sold to original equipment and aftermarket customers.

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Timken manufactures precision Diamond® and Drives® roller chain, pintle chain, agricultural conveyor chain, engineering class chain and oil field roller chain.

These highly engineered products are used in a wide range of mobile and industrial machinery applications, including agriculture, oil and gas, aggregate and mining, primary metals, forest products and other heavy industries.

These engineered products are used in a wide range of mobile and industrial machinery applications, including agriculture, oil and gas, aggregate and mining, primary metals, forest products and other heavy industries.

They are also used in the food and beverage and packaged goods sectors, which often require high-end, specialty products, including stainless-steel and corrosion-resistant roller chain.

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Timken offers a selection of engineered clutches, brakes, hydraulic power take-off units and other torque management devices marketed under the PT Tech® brand.

These products are custom engineered for OEMs and used in mining, aggregate, wood recycling and metals industries.

These products are custom engineered for OEMs and used in marine, mining, aggregate, wood recycling and metals industries.

Other Products.

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This joint venture, CoLinx, LLC, includes five equity members:

Timken, SKF Group, Schaeffler Group, ABB Group and Gates Industrial Corp.

Timken, SKF Group, Schaeffler Group, RBC Bearings and Gates Industrial Corp.

The e-business service focuses on information and business services for authorized distributors in the Process Industries segment.

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Timken does not believe that there is any significant loss of earnings risk associated with any given contract.

The anti-friction bearing and power transmission businesses are highly competitive in every country where Timken sells products.

The bearing industry and the industries into which Timken sells its power transmission products are highly competitive.

Timken primarily competes based on total value, including price, quality, timeliness of delivery, product design and the ability to provide engineering support and service on a global basis.

The Company competes with domestic manufacturers and many foreign manufacturers of anti-friction bearings, including SKF Group, Schaeffler Group, NTN Corporation, JTEKT Corporation and NSK Ltd., and with manufacturers of power transmission products, including Rexnord Corporation, Altra Industrial Motion Corporation and Regal Beloit Corporation.

The Company competes with many domestic and foreign manufacturers of anti-friction bearings, including SKF Group, Schaeffler Group, NTN Corporation, JTEKT Corporation and NSK Ltd., and with a diverse group of domestic and foreign manufacturers of power transmission products.

Joint Ventures:

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Manchester, Connecticut;

Downer's Grove and Fulton, Illinois;

Rochester Hills and Traverse City, Michigan;

Downer's Grove, Fulton and Montgomery, Illinois;

Indianapolis, Indiana;

Norton Shores, Rochester Hills and Traverse City, Michigan;

Springfield, Missouri;

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Because of its global operations, the Company is subject to a wide variety of domestic and foreign laws and regulations, including securities laws, tax laws, employment and pension-related laws, competition laws, U.S.

and foreign export and trade laws, FCPA and similar worldwide anti-bribery laws, and laws governing improper business practices.

and foreign export and trade laws, the Foreign Corrupt Practices Act ("FCPA") and similar worldwide anti-bribery laws, government procurement regulations and laws governing improper business practices.

The Company has policies and procedures in place to promote compliance with these laws and regulations and management believes any ultimate liability with respect to pending actions will not materially affect the Company’s annual results of operations, cash flows or consolidated financial position.

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Associate Health and Safety

The Coronavirus ("COVID-19") pandemic presented unique challenges with respect to protecting associate health and safety globally, and the Company is proud of how its associates responded.

The health and safety of associates will always remain a top priority for the Company and the commitment to safety starts at the top of the organization.

CEO, Richard Kyle, was the first-ever chair of the Company's Environmental Health and Safety Leadership Council, which was created in 2009 and continues to drive accountability and responsibility for safety throughout the organization.

In 2021, the Coronavirus ("COVID-19") pandemic continued to present unique challenges with respect to protecting associate health and safety globally.

Associate health and safety continues to be a top priority for the Company and its commitment to safety starts at the top of the organization.

Chief Executive Officer, Richard Kyle, was the first-ever chair of the Company's Environmental Health and Safety Steering Committee, which was created in 2009 and continues to drive accountability and responsibility for safety throughout the organization .

The Company's commitment to the health and safety of its associates is evidenced by its strong safety results in 2020 and 2021 shown in the charts below:

*Rates calculated as (number of injuries and illnesses x 200,000) / employee hours worked.

2020 rates represent the Company's best estimate as of February 16, 2021.

2021 rates represent the Company's best estimate at the date of this report

- - - represents the 2020 average (mean) for U.S.

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Bureau of Labor Statistics at https://www.bls.gov/iif/.

The 2019 lost time accident rate of 0.19 represented record performance for the Company, while the 2020 rate of 0.31 remained strong.

The Company aims to maintain a recordable rate within the top quartile of U.S.

metal manufacturers (NAICS code 332) based on information provided by the U.S.

Bureau of Labor Statistics, and it met that target in 2019.

Industry data for 2020 was not available at the time of this report.

In addition, the 2020 recordable rate of 0.91 represented record performance for the Company.

Bureau of Labor Statistics, and it met that target in 2020 with its 2020 recordable rate of 0.92 representing record performance for the Company.

In 2021, the Company's recordable rate of 1.20 remained strong though industry data for 2021 was not available at the time of this report.

In addition, the Company produced solid lost time accident rates of 0.32 in 2020 and 0.38 in 2021, respectively.

Attracting, Retaining, and Motivating Highly Qualified Associates

Successful execution of the Company's strategy continues to depend on attracting, retaining, and motivating highly qualified talent.

As such, the Company believes it is important to reward associates with competitive wages and benefits to recognize professional excellence and career progression.

As such, the Company believes it is important to reward associates with competitive wages and comprehensive benefits to recognize professional excellence and career progression.

The Company also believes it is important to provide pay and benefits that is competitive and equitable based on the local markets in which it operates.

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The Company also provides several professional development and training opportunities to advance our associates’ skills and expertise.

Some of these opportunities include online-learning platforms, job-specific training, and educational reimbursement programs.

Some of these opportunities include online-learning platforms, job-specific training, our operations development program and our educational reimbursement programs.

The Company has recruited and trained many of its associates through its engineering co-op program, where engineering students have the opportunity to work up to five semesters alongside the Company’s experienced engineers while they complete their bachelor’s degrees.

To better inform its hiring and associate development efforts, the Company has partnered with third-party vendors to provide required training for its managers focused on diversity and inclusion.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business