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This paper presents an approach to using domain decomposition (DD) for time-stepped eddy-current analysis of induction machines. The approach uses the transmission line modeling (TLM) method to linearize the nonlinear field equations, producing a stiffness matrix that is more amenable to decomposition than that obtained by using a Newton-Raphson approach. Using a direct solver, the paper compares the approaches and shows that the proposed approach can offer simulation times that are significantly shorter than those for the traditional Newton-Raphson approach. The paper describes the steps necessary to implement the TLM-DD approach for time-stepped eddy-current analysis of induction machines. Test results for steady-state and dynamic conditions are provided.