CONsOlIdATEd BAlANCE sHEETs 45$^{ }$ THE TIMKEN COMPANY See accompanying Notes to the Consolidated Financial Statements. FINANCIAls ANd FOOTNOTEs December 31, 2011 2010 (Dollars in millions)  assETs  current assets  Cash and cash equivalents  $ 464.8 $ 877.1 Restricted cash  3.6  – Accounts receivable, less allowances: 2011 -$ 19.0 million; 2010 -$ 27.6 million  645.5   516.6  Inventories, net  964.4   828.5  Deferred income taxes   113.7   100.4  Deferred charges and prepaid expenses   12.8   11.3  Other current assets   87.5   65.3  Total current assets   2,292.3   2,399.2  Property, Plant and Equipment – Net  1,308.9   1,267.7  Other assets  Goodwill   307.2   224.4  Other intangible assets   261.6   129.2  Deferred income taxes   141.9   121.5  Other non-current assets  40.2   38.4  Total Other assets   750.9  513.5 Total assets  $ 4,352.1  lIabIlITIEs aND EquITy  current liabilities  Short-term debt $ 22.0 $ 22.4 Accounts payable, trade  287.3   263.5  Salaries, wages and benefits  259.3   228.8  Income taxes payable  70.2   14.0  Deferred income taxes  3.1   0.7  Other current liabilities  188.4   172.0  Current portion of long-term debt  14.3   9.6  Total current liabilities   844.6   711.0  Non-current liabilities Long-term debt   478.8   481.7  Accrued pension cost   491.0   394.5  Accrued postretirement benefits cost   395.9   531.2  Deferred income taxes  7.5   6.0  Other non-current liabilities  91.8   114.2  Total Non-current liabilities   1,465.0   1,527.6  shareholders’ Equity  Class I and II Serial Preferred Stock without par value:  Authorized – 10,000,000 shares each class, none issued  – –  Common stock without par value:  Authorized – 200,000,000 shares  Issued (including shares in treasury) (2011 – 98,375,135 shares; 2010 – 98,153,317 shares)  Stated capital   53.1   53.1  Other paid-in capital   889.2   881.7  Earnings invested in the business   2,004.7   1,626.4  Accumulated other comprehensive loss   (889.5)  (624.7) Treasury shares at cost (2011 – 708,327 shares; 2010 – 350,201 shares)   (29.2)  (11.5) Total shareholders’ Equity   2,028.3   1,925.0  Noncontrolling interest  14.2   16.8  Total Equity   2,042.5   1,941.8  Total liabilities and Equity  $ 4,352.1 