What is your best estimate of the average age of TimkenSteel's capitalized software, as of December 31, 2017? 4.9 years 8.3 years 1.6 years 15 years 6.7 years 6.5 years 3.6 years accompanying notes. These estimates and assumptions are reviewed and updated regularly to celect recent experience. Revenue Recognition: Timkensteel recognizes revenue when titie passes to the customer, which includes related.party sales to The Timken Compony and its subsidiaries for the periods prior to spinoff. This occurs at the shipping point except for goods sold by certain of the Company's foreign entities and certain exported goods, where title passes when the goods reach their destination. Selling prices are fixed based on purchase orders or contractual arrangements. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost. of products sold in the Consolidated Statements of Operations. Cash Equivalents: TimkenSteel considers all highly liquid investments with a maturity of three months or less when purchased to be . cash equivalents. Allowance for Doubtful Accounts: Tmkensteel maintains an allowance for doubtful accounts, which represents an estimate of losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance is based upon historical trends in collections and write-offs, management's judgment of the probability of collecting accounts and management's evaluation of business risk. TimkenSteel extends credit to customers satisfying pre-defined credit criteria. Timkensteel believes it has limited concentration of credit risk due to the diversity of its custorner base. Inventories, Net: Inventories are valued at the lower of cost or market. The majority of Timkensteel's domestic inventories are valued by the last-in, first-out (LFF) method. The remaining inventories, including manufacturing supplies inventory as well as intemational (outside the U.S.) inventories, are valued by the first-in, first-out (FIFO), average cost or specific identification methods. Reserves are established for product inventory that is identified to be surplus and/or obsolete based on future requirements. Property, Plant and Equipment, Not: Property, plant and equipment, net are valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings and three to 20 years for machinery and equipment. Intangible Assets, Net Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful Iives, with useful lives ranging from three to 15 years. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350-40, "Internal-Use Software," (ASC 350-40), Timkensteel capitalizes certain costs incurred for computer sotware developed or obtained for internal use. TimkenSteel capitalizes substantially all external costs and qualitying internal costs related to the purchase and implementation of software projects used for business operations Capitalized sofware costs primarily include purchased software and external consulting fees. Copitalized software projects are amortized over the estimated useful lives of the software. Long-lived Asset impairment: Long-ived assets (including tangble assets and intangiblo assets subject to amortization) are reviewed for impairment when events or changes in circumstances have occurred indicating that the carrying value of the assets may not be recoverable. Inventories are valued at the lower of cost or market, with approximately 65% valued by the LIFO method, and the remaining imventories, including manufacturing supplies inventory as well as international foutside the United States) inventories, valued by FFO, average cost or specific identification methods. Timkensteel recognized an increase in its LFO reserve of $125 million during 2017 and a decrease in its LIFO reserve of $5.0 million during 2016 , recognized in cost of products sold. The increase in the LFO reserve recognized during 2017 was due to higher manufacturing costs, higher scrap steel costs, and higher inventory quantities. The decrease in the UFO reserve recognized during 2016 was due to lower product costs and lower imventory quantities NOTE 4 - PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment, net as of December 31,2017 and 2016 , were as follows. Total depreciation expense was $68.3 million, $68.0 million and $67.2 million for the years ended December 31 , 2017,2016 and 2015, respectively. Timkensteel recorded capitalized interest related to construction projects of $0.6 milion, 50.7 million and $1.0 million for the years ended December 31,2017,2016 and 2015 , respectively. As the result of the discontinued use of certain assets, Timkensteel recorded an impairment charge of 50.7million for the year ended Docember 31, 2017 and \$0.9 million for the year ended December 31, 2015. No impairment charges were recorded for the year ended December 31,2016 . NOTE 5 - INTANGIBLE ASSETS The components of intangible assets, net as of December 31,2017 and 2016 were as follows: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives. The weighted average useful lives of the customer relationships, technology use and capitalized software are 15 years, 15 years and 6.5 years, respectively. The weighted average useful life of total intangible assets is 8.3 years. Amortization expense for intangible assets for the years ended December 31, 2017, 2016 and 2015 was $6.6 milition, 56.9 million and $6.2 million, respectively. Based upon the intangible assets subject to amortization as of December 31, 2017, TimkenSteel's estimated annual amortization for the five succeeding years is shown below (in millions) CONSOLDATED BALANCE SHEETS See accompanying Notes to the Consolidated Financial Statements. What is your best estimate of the average age of TimkenSteel's capitalized software, as of December 31, 2017? 4.9 years 8.3 years 1.6 years 15 years 6.7 years 6.5 years 3.6 years accompanying notes. These estimates and assumptions are reviewed and updated regularly to celect recent experience. Revenue Recognition: Timkensteel recognizes revenue when titie passes to the customer, which includes related.party sales to The Timken Compony and its subsidiaries for the periods prior to spinoff. This occurs at the shipping point except for goods sold by certain of the Company's foreign entities and certain exported goods, where title passes when the goods reach their destination. Selling prices are fixed based on purchase orders or contractual arrangements. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost. of products sold in the Consolidated Statements of Operations. Cash Equivalents: TimkenSteel considers all highly liquid investments with a maturity of three months or less when purchased to be . cash equivalents. Allowance for Doubtful Accounts: Tmkensteel maintains an allowance for doubtful accounts, which represents an estimate of losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance is based upon historical trends in collections and write-offs, management's judgment of the probability of collecting accounts and management's evaluation of business risk. TimkenSteel extends credit to customers satisfying pre-defined credit criteria. Timkensteel believes it has limited concentration of credit risk due to the diversity of its custorner base. Inventories, Net: Inventories are valued at the lower of cost or market. The majority of Timkensteel's domestic inventories are valued by the last-in, first-out (LFF) method. The remaining inventories, including manufacturing supplies inventory as well as intemational (outside the U.S.) inventories, are valued by the first-in, first-out (FIFO), average cost or specific identification methods. Reserves are established for product inventory that is identified to be surplus and/or obsolete based on future requirements. Property, Plant and Equipment, Not: Property, plant and equipment, net are valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings and three to 20 years for machinery and equipment. Intangible Assets, Net Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful Iives, with useful lives ranging from three to 15 years. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350-40, "Internal-Use Software," (ASC 350-40), Timkensteel capitalizes certain costs incurred for computer sotware developed or obtained for internal use. TimkenSteel capitalizes substantially all external costs and qualitying internal costs related to the purchase and implementation of software projects used for business operations Capitalized sofware costs primarily include purchased software and external consulting fees. Copitalized software projects are amortized over the estimated useful lives of the software. Long-lived Asset impairment: Long-ived assets (including tangble assets and intangiblo assets subject to amortization) are reviewed for impairment when events or changes in circumstances have occurred indicating that the carrying value of the assets may not be recoverable. Inventories are valued at the lower of cost or market, with approximately 65% valued by the LIFO method, and the remaining imventories, including manufacturing supplies inventory as well as international foutside the United States) inventories, valued by FFO, average cost or specific identification methods. Timkensteel recognized an increase in its LFO reserve of $125 million during 2017 and a decrease in its LIFO reserve of $5.0 million during 2016 , recognized in cost of products sold. The increase in the LFO reserve recognized during 2017 was due to higher manufacturing costs, higher scrap steel costs, and higher inventory quantities. The decrease in the UFO reserve recognized during 2016 was due to lower product costs and lower imventory quantities NOTE 4 - PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment, net as of December 31,2017 and 2016 , were as follows. Total depreciation expense was $68.3 million, $68.0 million and $67.2 million for the years ended December 31 , 2017,2016 and 2015, respectively. Timkensteel recorded capitalized interest related to construction projects of $0.6 milion, 50.7 million and $1.0 million for the years ended December 31,2017,2016 and 2015 , respectively. As the result of the discontinued use of certain assets, Timkensteel recorded an impairment charge of 50.7million for the year ended Docember 31, 2017 and \$0.9 million for the year ended December 31, 2015. No impairment charges were recorded for the year ended December 31,2016 . NOTE 5 - INTANGIBLE ASSETS The components of intangible assets, net as of December 31,2017 and 2016 were as follows: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives. The weighted average useful lives of the customer relationships, technology use and capitalized software are 15 years, 15 years and 6.5 years, respectively. The weighted average useful life of total intangible assets is 8.3 years. Amortization expense for intangible assets for the years ended December 31, 2017, 2016 and 2015 was $6.6 milition, 56.9 million and $6.2 million, respectively. Based upon the intangible assets subject to amortization as of December 31, 2017, TimkenSteel's estimated annual amortization for the five succeeding years is shown below (in millions) CONSOLDATED BALANCE SHEETS See accompanying Notes to the Consolidated Financial Statements