Note 2 – Acquisitions and Divestitures (continued) On December 31, 2010, the Company purchased substantially all the assets of City Scrap and Salvage Co. in Akron, Ohio (City Scrap) for  $6.5 million in cash. City Scrap, which employs 30 people, had a long-standing relationship with the Company, supplying the Company  for more than 15 years as a local source of the ferrous scrap needed for its steelmaking operations. The City Scrap acquisition has  streamlined the supply of scrap to Timken’s steel operations, improving efficiency and increasing supply chain reliability. City Scrap had  revenues of approximately $17 million in 2010. The results of City Scrap were included in the Company’s Consolidated Statements of  Income effective January 1, 2011 and were reported in the Steel segment. On September 21, 2010, the Company completed the acquisition of Q.M. Bearings and Power Transmission, Inc. (QM Bearings), based  in Ferndale, Washington, for $16.9 million in cash, including cash acquired of $0.8 million. QM Bearings also has manufacturing facilities  in Prince George, British Columbia, Canada and Wuxi, China. QM Bearings manufactures spherical roller-bearing steel-housed units and  elastomeric and steel couplings used in demanding processes such as sawmill, logging and cement operations. QM Bearings had sales  of approximately $14 million in the twelve months prior to the acquisition. QM Bearings has approximately 100 employees in the United  States, Canada and China. The results of the operations of QM Bearings were included in the Company’s Consolidated Statements of  Income for the periods subsequent to the effective date of the acquisition and were reported in the Process Industries segment. Pro forma results of these operations have not been presented because the effects of the acquisitions were not significant to the  Company’s income from continuing operations or total assets in 2011, 2010 or 2009. The initial purchase price allocations, net of cash  acquired, and any subsequent purchase price adjustments for acquisitions in 2011, 2010 and 2009 are presented below: FINANCIAls ANd FOOTNOTEs 2011 2010 2009 Assets: Accounts receivable, net $ 25.6 $ 2.6 $  – Inventories, net  23.6   6.1  – Deferred charges and prepaid expenses  0.9  – – Other current assets  0.1   8.5  – Property, plant and equipment – net  32.1   3.4  – Goodwill  83.3   4.3   0.4  Other intangible assets  146.9   6.9  – Other non-current assets  0.6  – – Total assets acquired $ 313.1 $ 31.8 $ 0.4 Liabilities: Accounts payable, trade $ 10.7 $ 8.7 $  – Salaries, wages and benefits  5.1   0.5  – Other current liabilities  5.2  – – Total liabilities assumed $ 21.0 $ 9.2 $  – Net assets acquired $ 292.1 $ 22.6 $ 0.4 THE TIMKEN COMPANY 51