Sales and operating income for these three segments are provided in Note 4 to the condensed consolidated financial statements, included elsewhere herein.

taken during the past two years to reduce costs leave us well-positioned to manage our business through this crisis as it continues to unfold.

Net income (loss) attributable to Park-Ohio Holdings Corp. common shareholders

Net sales increased 22.5% to $428.6 million in the second quarter of 2022 compared to $350.0 million in the same period in 2021. This increase was primarily due to higher customer demand and increased net price realization in all three of our business segments.

The factors explaining the changes in segment net sales for the three months ended June 30, 2022 compared to the corresponding 2021 period are contained within the "Segment Results" section below.

Cost of Sales & Gross Profit

Gain on Sale of Assets

Other Components of Pension Income and Other Postretirement Benefits Expense ("OPEB"), Net

Interest expense, net was $8.3 million in the second quarter of 2022 compared to $7.4 million in the 2021 period. The increase was due to higher average outstanding borrowings during the 2022 period.

Six Months Ended June 30, 2022 Compared with Six Months Ended June 30, 2021

Net income attributable to Park-Ohio Holdings Corp. common shareholders

Net sales increased 19.4% to $847.0 million in the first six months of 2022 compared to $709.6 million in the same period in 2021. This increase was primarily due to higher customer demand and increased net price realization in all three of our business segments.

Cost of Sales & Gross Profit

Other Components of Pension Income and OPEB, Net

For purposes of business segment performance measurement, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating or unusual in nature or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs.

Segment operating income increased by $2.2 million and segment operating income margin was comparable in the 2022 period compared to the same period a year ago.

Net sales were 15.3% higher in the 2022 period compared to the 2021 period. The increase was due to stronger demand in the 2022 period in both our capital equipment products and our forged and machined products business as key end markets continue to recover from the COVID-19 pandemic.

Net sales were 17.4% higher in the 2022 period compared to the 2021 period. The increase was due to stronger demand in the 2022 period in both our capital equipment products and our forged and machined products business as key end markets continue to recover from the COVID-19 pandemic.

The following table summarizes the major components of cash flow:

Capital expenditures were $14.4 million in the six months ended June 30, 2021 and were primarily to provide increased capacity for future growth in our Assembly Components segment and to maintain existing operations. Also, the Company acquired NYK Component Solutions Limited ("NYK") for $5.4 million.

During the six months ended June 30, 2022, we had net debt borrowings of $64.9 million to fund our higher working capital levels. In addition, in the six months ended June 30, 2022, we made cash dividend payments to shareholders totaling $3.2 million.

As of June 30, 2022, we had total liquidity of $200.5 million, which included $61.1 million cash and cash equivalents, $139.4 million of unused borrowing availability under our credit agreements, which included $29.3 million of suppressed availability.

The Company had cash and cash equivalents held by foreign subsidiaries of $44.2 million at June 30, 2022 and $44.2 million at December 31, 2021. We do not expect restrictions on repatriation of cash held outside the U.S. to have a material effect on our overall liquidity, financial condition or results of operations for the foreseeable future.

receivable ineligible for purposes of the revolving credit facility and could reduce our borrowing base and our ability to borrow under such facility.

Seasonality; Variability of Operating Results

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