Note 10 – Impairment and Restructuring Charges (continued) Mobile Industries Process Industries In March 2007, the Company announced the closure of its manufacturing facility in Sao Paulo, Brazil. The Company completed the  closure of this manufacturing facility on March 31, 2010. Pretax costs associated with the closure could be as high as approximately  $60 million, which includes restructuring costs and rationalization costs recorded in cost of products sold and selling, general and  administrative expenses. Mobile Industries has incurred cumulative pretax expenses of approximately $47.7 million as of December  31, 2011 related to this closure. In 2011, 2010 and 2009, the Company recorded $12.5 million, $4.4 million and $1.7 million, respectively,  of exit costs associated with the closure of this facility. The exit costs for 2011 and 2010 primarily related to environmental remediation  costs, as well as workers’ compensation claims for former employees in 2011. The Company accrues environmental remediation costs  and workers’ compensation claims when they are probable and estimable. In 2010 and 2009, the Company recorded $1.3 million and  $5.2 million, respectively, of severance and related benefit costs. The Company also recorded impairment charges of $1.1 million  associated with this closure in 2010. The impairment charges were recorded as a result of the carrying value of certain machinery and  equipment exceeding their fair value. In 2009, the Company recorded impairment charges of $71.7 million for certain fixed assets in the United States, Canada, France and  China related to several automotive product lines. The Company reviewed these assets for impairment during the fourth quarter due to  declining sales at that time and as a result of the Company’s initiative to exit programs where adequate returns could not be obtained  through pricing initiatives. Circumstances related to future revenue streams for customers coming out of bankruptcy and the results of  its pricing initiatives did not become fully evident until the fourth quarter of 2009. Incorporating this information into its annual long-term  forecasting process, the Company determined the undiscounted projected future cash flows for these product lines could not support  the carrying value of these asset groups. The Company then arrived at fair value by either valuing the assets in use where the assets  were still producing product or in exchange where the assets had been idled. In addition to the above charges, the Company recorded $3.1 million of environmental exit costs in 2010 at the site of its former plant  in Columbus, Ohio. In 2009, the Company recorded impairment charges of $27.7 million, exit costs of $1.6 million and severance and related benefits of $0.6  million related to the rationalization of its three bearing plants in Canton, Ohio. In 2009, the Company closed two of the three bearing  plants. The significant impairment charge was recorded during the second quarter of 2009 as a result of the rapid deterioration of the  market sectors served by one of the rationalized plants resulting in the carrying value of the fixed assets for this plant exceeding their  projected undiscounted future cash flows. The fair value was determined based on market comparisons to similar assets. In 2010, the  Company recorded $1.0 million of exit costs primarily due to demolition costs. In October 2009, the Company announced the consolidation of its distribution centers in Bucyrus, Ohio and Spartanburg, South Carolina  into a leased facility near the existing Spartanburg location. The closure was completed in June 2011. During 2009, the Company  recorded $4.5 million of severance and related benefit costs related to this closure. In 2010, the Company recorded fixed asset impairment charges of $2.0 million at its location in Mesa, Arizona. The impairment charges  were recorded as a result of the carrying value of certain machinery and equipment exceeding their expected future cash flows. Aerospace and Defense FINANCIAls ANd FOOTNOTEs 61 THE TIMKEN COMPANY