BusINEss jOINT VENTuREs bacKlOG Raw MaTERIals REsEaRch THE TIMKEN COMPANY 4 Investments in affiliated companies accounted for under the equity method were approximately $2.0 million and $9.4 million,  respectively, at December 31, 2011 and 2010. The amount at December 31, 2011 was reported in other non-current assets on the  Consolidated Balance Sheets. The significant decrease between the amount at December 31, 2011 and the amount at December 31,  2010 was due to the impairment and subsequent sale of International Component Supply, Ltda. (ICS). The Company also consolidated  one of its investments in affiliated companies, Advanced Green Components (AGC), as a result of it qualifying as a variable interest  entity. The net assets of AGC at December 31, 2011 were $0.6 million. The following table provides the backlog of orders of Timken’s domestic and overseas operations at December 31, 2011 and 2010: Approximately 91% of the Company’s backlog at December 31, 2011 is scheduled for delivery in the succeeding twelve months. Actual  shipments are dependent upon ever-changing production schedules of customers. Accordingly, Timken does not believe that its backlog  data and comparisons thereof, as of different dates, are reliable indicators of future sales or shipments. The principal raw materials used by Timken in steel manufacturing are scrap metal, nickel, molybdenum and other alloys. The availability  and costs of raw materials and energy resources are subject to curtailment or change due to, among other things, new laws or  regulations, changes in global demand levels, suppliers’ allocations to other purchasers, interruptions in production by suppliers,  changes in exchange rates and prevailing price levels. For example, the weighted average consumption cost of scrap metal decreased  49.0% from 2008 to 2009, increased 59.0% from 2009 to 2010 and increased 22.9% from 2010 to 2011. The Company continues to expect that it will be able to pass a significant portion of cost increases through to customers in the form  of price increases or surcharges. Disruptions in the supply of raw materials or energy resources could temporarily impair the Company’s ability to manufacture its  products for its customers or require the Company to pay higher prices in order to obtain these raw materials or energy resources from  other sources, which could affect the Company’s revenues and profitability. Any increase in the costs for such raw materials or energy  resources could materially affect the Company’s earnings. Timken believes that the availability of raw materials and alloys is adequate  for its needs, and, in general, it is not dependent on any single source of supply. Timken operates a network of technology and engineering centers to support its global customers with sites in North America, Europe  and Asia. This network develops and delivers innovative friction management and mechanical power transmission solutions and technical  services. The largest technical center is located in North Canton, Ohio, near Timken’s world headquarters. Other sites in the United  States include Mesa, Arizona; Manchester, Connecticut; Keene and Lebanon, New Hampshire; and King of Prussia, Pennsylvania.  Within Europe, the Company has technology facilities in Ploiesti, Romania; and Colmar, France, and in Asia, it operates technology and  engineering facilities in Bangalore, India and Shanghai, China. Expenditures for research, development and application amounted to approximately $49.6 million, $49.9 million and $50.0 million  in 2011, 2010 and 2009, respectively. Of these amounts, approximately $0.3 million, $1.6 million and $1.7 million, respectively, were  funded by others in 2011, 2010 and 2009. December 31, 2011 2010 (Dollars in millions) Segment: Mobile Industries $ 654.4 $ 629.3  Process Industries 421.8  330.7  Aerospace & Defense 443.2  376.4  Steel 530.7  872.0  Total Company $ 2,050.1  $ 2,208.4