The Company's long-term strategy has three primary elements:

Net income attributable to The Timken Company $ 105.0 $

Net income attributable to The Timken Company $ 223.2 $

Selling, general and administrative expenses % to net sales

Refer to Note 14 - Impairment and Restructuring Charges in the Notes to the Consolidated Financial Statements for additional information.

Non-service pension and other postretirement

Non-service pension and other postretirement

Refer to Note 6 - Income Taxes for more information on the computation of the income tax expense in interim periods.

The following item represents the Company's acquisitions completed in 2022 and 2021:

•The Company acquired Spinea during the second quarter of 2022. The majority of the results for Spinea are reported in the Process Industries segment.

•The Company acquired iMS during the third quarter of 2021. The majority of the results for iMS are reported in the Process Industries segment.

(24.9) NM Net sales, excluding the impact of currency $ 1,108.9 $ 998.7 $ 110.2 11.0 %

The following table displays the impact of working capital items on cash during the six months of 2022 and 2021, respectively:

The following table displays the impact of income taxes on cash during the six months of 2022 and 2021, respectively:

Net debt plus total equity (capital) $ 3,799.8 $ 3,585.5 Ratio of net debt to capital

The Company presents net debt because it believes net debt is more representative of the Company's financial position than total debt due to the amount of cash and cash equivalents held by the Company and the ability to utilize such cash and cash equivalents to reduce debt if needed.

At June 30, 2022, the Company was in full compliance with all applicable covenants on its outstanding debt.

Financing Obligations and Other Commitments:

The Company does not have any off-balance sheet arrangements with unconsolidated entities or other persons.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Adjusted Net Income and Adjusted EBITDA:

Diluted earnings and adjusted earnings per share in the table below are based on net income attributable to The Timken Company and adjusted net income, respectively, in the table above.

Reconciliation of segment EBITDA to segment adjusted EBITDA and segment adjusted EBITDA margin:

Corporate pension and other postretirement benefit

Corporate pension and other postretirement

Corporate pension and other postretirement benefit

Corporate pension and other postretirement

(3) Russia-related charges include impairments and allowances recorded against certain property, plant and equipment, inventory and trade receivables to reflect the current impact of Russia's invasion of Ukraine (and associated sanctions) on the Company's operations. Refer to Russia Operations on page

(5) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods.

(6) Depreciation and amortization shown excludes depreciation recognized in reorganization charges, if any.

Reconciliation of Net income to Adjusted EBITDA for the trailing twelve months:

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