Equity

6 Months Ended

Jun. 30, 2011

Note 8 — Equity


				The Timken Company Shareholders
									Earnings			Accumulated
						Other			Invested			Other
				Stated		Paid-In			in the			Comprehensive			Treasury			Noncontrolling
	Total			Capital		Capital			Business			(Loss)			Stock			Interest

Balance at December 31, 2010	$	1,941.8		$	53.1	$	881.7		$	1,626.4		$	(624.7	)	$	(11.5	)	$	16.8


Net income		236.1								234.2									1.9

Foreign currency translation adjustment		46.5											46.5
Pension and postretirement liability adjustment (net of the income tax benefit of $11.6 million)		18.5											18.5
Unrealized gain on marketable securities (net of the income tax benefit of $0.1 million)		0.3											0.2						0.1
Change in fair value of derivative financial instruments, net of reclassifications		0.1											0.1

Total comprehensive income		301.5
Change in ownership of noncontrolling interests		(1.2	)																(1.2	)
Dividends — $0.38 per share		(37.1	)							(37.1	)
Tax benefit from stock compensation		10.0					10.0
Stock-based compensation expense		9.2					9.2
Stock purchased at cost		(25.3	)													(25.3	)
Stock option exercise activity		16.3					(17.0	)								33.3
Restricted shares (issued) surrendered		(0.6	)				(0.7	)								0.1
Shares surrendered for taxes		(8.3	)													(8.3	)

Balance at June 30, 2011	$	2,206.3		$	53.1	$	883.2		$	1,823.5		$	(559.4	)	$	(11.7	)	$	17.6

The total comprehensive income for the three months ended June 30, 2011 was $148.1 million. The total comprehensive income for the three months and six months ended June 30, 2010 was $41.7 million and $88.5 million, respectively.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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