Notes to CoNsolidated FiNaNCial statemeNts Note 12 – Retirement Benefit Plans (continued) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between  market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure  fair value into the following hierarchy: Level 1  – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2  – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical  or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable  for the asset or liability. Level 3  – Unobservable inputs for the asset or liability. The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on  a recurring basis as of December 31, 2011: The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on  a recurring basis as of December 31, 2010: 68 THE TIMKEN COMPANY Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 7.9 $ 7.9 $  – $  – Government and agency securities  155.5   129.2   26.3  – Corporate bonds  470.7  –  470.7  – Equity securities  845.4   845.4  – – Asset backed securities  21.8  –  21.8  – Common collective funds – equities  483.7  –  464.5   19.2  Common collective funds – fixed income  317.4  –  317.4  – Common collective funds – other  25.1  –  25.1  – Limited partnerships  94.8  – –  94.8  Other assets  0.7   0.7  – – Total Assets $ 2,423.0 $ 983.2 $ 1,325.8 $ 114.0 Total level 1 level 2 level 3 Assets: Cash and cash equivalents $ 135.3 $ 135.3 $  – $  – Government and agency securities  163.2   132.8   30.4  – Corporate bonds  376.0  –  376.0  – Equity securities  661.8   661.8  – – Asset backed securities  15.1  –  15.1  – Common collective funds – equities  478.5  –  478.5  – Common collective funds – fixed income  509.5  –  509.5  – Common collective funds – other  22.8  –  22.8  – Limited partnerships  83.6  – –  83.6  Real estate  185.4   125.7  –  59.7  Other assets  0.7  –  0.7  – Total Assets $ 2,631.9 $ 1,055.6 $ 1,433.0 $ 143.3