content_image/174078.jpg content_image/174086.jpg content_image/174085.jpg
## OThER assETs: 

## December 31, 

<img src='content_image/174078.jpg'>

The increase in goodwill was primarily due to the acquisition of Philadelphia Gear and Drives. The increase in other intangible assets was primarily due to current-year acquisitions, partially offset by amortization expense recognized during 2011. The increase in deferred income taxes was primarily due to increases in the Company’s accrued pension liabilities during 2011, partially offset by contributions to a VEBA trust for retiree healthcare costs. 

## cuRRENT lIabIlITIEs: 

## December 31, 

<img src='content_image/174086.jpg'>

The increase in accounts payable was primarily due to higher sales volume. The increase in accrued salaries, wages and benefits was the result of accruals for current-year incentive plans. The increase in income taxes payable was primarily due to the provision for income taxes in 2011 as a result of an increase in income before income taxes and the reclassification of approximately $40 million from other non-current liabilities as a result of an expected closure of a U.S. federal tax audit within the next 12 months. These increases were partially offset by income tax payments during 2011. 

## NON-cuRRENT lIabIlITIEs: 

## December 31, 

<img src='content_image/174085.jpg'>

The increase in accrued pension cost was primarily due to a decrease in the discount rates used to calculate the projected benefit obligation, as well as returns on pension assets below the expected rate of return of 8.5%, partially offset by contributions of approximately $291 million to the Company’s defined benefit pension plans during 2011. The decrease in accrued postretirement benefits cost was primarily due to a contribution of $125 million to a VEBA trust to fund healthcare benefits. The decrease of other non-current liabilities was primarily due to the reclassification of approximately $40 million to income taxes payable for an expected closure of a U.S. federal tax audit within the next 12 months. 

