Note 14 – Segment Information (continued) Factors used by management to identify the enterprise’s reportable segments Geographic Financial Information  2011 2010 2009 Net sales:  United States $ 3,494.6 $ 2,662.7 $ 1,943.2 Canada & Mexico  268.4   202.2   149.2  South America  186.0   162.3   104.4  Europe / Middle East / Africa  652.3   558.9   576.0  Asia–Pacific  568.9   469.4   368.8  $ 5,170.2 $ 4,055.5 $ 3,141.6 Long–lived assets: United States $ 963.1 $ 919.7 $ 976.4 Canada & Mexico  16.3   18.5   18.6  South America  6.2   7.8   6.7  Europe / Middle East / Africa  102.0   103.6   121.0  Asia–Pacific  221.3   218.1   212.5  $ 1,308.9 $ 1,267.7 $ 1,335.2 Net sales by geographic area are reported by the destination of net sales, which is reflective of how the Company operates its segments.  Long-lived assets by geographic area are reported by the location of the subsidiary. Export sales from the United States and Canada are less than 10% of revenue. The Company’s Mobile Industries, Process Industries  and Aerospace and Defense segments have historically participated in the global bearing industry while the Steel segment has  concentrated primarily on U.S. customers. Timken’s non-U.S. operations are subject to normal international business risks not generally applicable to domestic business. These risks  include currency fluctuation, changes in tariff restrictions, difficulties in establishing and maintaining relationships with local distributors  and dealers, import and export licensing requirements, difficulties in staffing and managing geographically diverse operations and  restrictive regulations by foreign governments, including price and exchange controls. Notes to CoNsolidated FiNaNCial statemeNts 76 THE TIMKEN COMPANY