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| UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549                       |
|--------------------------------------------------------------------------------------------------------|
|                                                                                                   |
| FORM 10-K                                                                                         |
| (Mark One)                                                                                             |   |   |
|                                                                                                   | [X] |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2011   |
|                                                                                                   |
|                                                                                                   |
| OR                                                                                                |
|                                                                                                   | [  ] |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from __________ to __________.  |
| Commission File No. 001-11241                                                                     |
| CATERPILLAR FINANCIAL SERVICES CORPORATION(Exact name of Registrant as specified in its charter)  |
| Delaware(State or other jurisdiction of incorporation or organization)                            | 37-1105865(I.R.S. Employer Identification No.)   |
| 2120 West End Ave., Nashville, Tennessee(Address of principal executive offices)                  | 37203-0001(Zip Code)  |
| Registrant's telephone number, including area code:  (615) 341-1000                          |

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|  Securities registered pursuant to Section 12(b) of the Act:           |
|-----------------------------------------------------------------------------|
|                                                                        |  Title of each class  |   | Name of each exchange  on which registered  |
|                                                                        | Medium-Term Notes, Series G,2.05% Notes Due 2016 |   | New York Stock Exchange   |
| Securities registered pursuant to Section 12(g) of the Act:  None |

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| TABLE OF CONTENTS |
|-------------------|
|              |   |   | Page |
| Part I            | Item 1. | Business | 1 |
|              | Item 1A. | Risk Factors | 4 |
|              | Item 1B. | Unresolved Staff Comments | 9 |
|              | Item 2. | Properties | 9 |
|              | Item 3. | Legal Proceedings | 10 |
|              | Item 4. | Mine Safety Disclosures | 10 |
| Part II           | Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters     and Issuer Purchases of Equity Securities | 10 |
|              | Item 7. | Management's Discussion and Analysis of Financial    Condition and Results of Operations | 11 |
|              | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 25 |
|              | Item 8. | Financial Statements and Supplementary Data | 25 |
|              | Item 9. | Changes in and Disagreements With Accountants on Accounting and     Financial Disclosure | 25 |
|              | Item 9A. | Controls and Procedures | 26 |
|              | Item 9B. | Other Information | 26 |
| Part III          | Item 14. | Principal Accounting Fees and Services | 27 |
| Part IV           | Item 15. | Exhibits and Financial Statement Schedules | 28 |

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| PART I |
|--------|

| Item 1.  | Business. |
|---------------|-----------|

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| ·   | Tax leases that are classified as either operating or finance leases for financial accounting purposes, depending on the characteristics of the lease.  For tax purposes, we are considered the owner of the equipment (14 percent*). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finance (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease, that either require or allow the customer to purchase the equipment for a fixed price at the end of the term (20 percent*). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Installment sale contracts, which are equipment loans that enable customers to purchase equipment with a down payment or trade-in and structure payments over time (15 percent*). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Governmental lease-purchase plans in the U.S. that offer low interest rates and flexible terms to qualified non-federal government agencies (1 percent*). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Inventory/rental programs, which provide assistance to dealers by financing their new Caterpillar inventory and rental fleets (7 percent*). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Short-term receivables we purchase from Caterpillar at a discount (11 percent*). |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Loans that allow customers and dealers to use their Caterpillar equipment or other assets as collateral to obtain financing. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

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| Item 1A.  | Risk Factors. |
|----------------|---------------|

|   | · | Market developments that may affect customer confidence levels and may cause declines in the demand for financing and adverse changes in payment patterns, causing increases in delinquencies and default rates, which could impact our write-offs and provision for credit losses; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The process we use to estimate losses inherent in our credit exposure requires a high degree of management’s judgment regarding numerous subjective, qualitative factors, including forecasts of economic conditions and how economic predictors might impair the ability of our borrowers to repay their loans.  If financial market disruption and volatility is experienced, the accuracy of these judgments may be impacted; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our ability to engage in routine funding transactions or borrow from other financial institutions on acceptable terms or at all could be adversely affected by disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Since our counterparties are financial institutions, their ability to perform in accordance with any of our underlying agreements could be adversely affected by market volatility and/or disruptions in the equity and credit markets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Multiple and potentially conflicting legal and regulatory requirements that are subject to change; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | Increased exposure to currency fluctuations and imposition of currency restrictions, restrictions on repatriation of earnings or other similar restraints; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Difficulty of enforcing agreements and collecting receivables through foreign legal systems; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | Difficulty in staffing and managing (including ensuring compliance with internal policies and controls) geographically widespread operations and the application of foreign labor regulations; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Natural disasters, embargoes, catastrophic events and national and international conflict, including acts of terrorism; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | Political and economic instability or civil unrest that may severely disrupt economic activity in affected countries, particularly in emerging markets. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | General world economic conditions and the level of mining, construction and manufacturing activity; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Changes and uncertainties in the monetary and fiscal policies of various governmental and regulatory entities; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Fluctuations in demand and prices for certain commodities; |
|--------------------|------------------------------------------------------------|

| ·   | Fluctuations in currency exchange rates and interest rates; |
|--------------------|-------------------------------------------------------------|

| ·   | Political, economic and legislative changes; |
|--------------------|----------------------------------------------|

| ·   | Caterpillar’s ability to produce products that meet the customer’s needs; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | Caterpillar’s ability to maintain key dealer relationships; |
|--------------------|-------------------------------------------------------------------|

| ·   | The ability of Caterpillar dealers to sell Caterpillar products and their practices regarding inventory control; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | Changes in pricing policies by Caterpillar or its competitors. |
|--------------------|----------------------------------------------------------------|

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| Item 1B.  | Unresolved Staff Comments. |
|----------------|----------------------------|

| Item 2. | Properties. |
|---------|-------------|

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| Item 3.  | Legal Proceedings. |
|---------------|--------------------|

| Item 4.  | Mine Safety Disclosures. |
|---------------|--------------------------|

| PART II |
|---------|

| Item 5.  | Market for Registrant's Common Equity, Related Stockholder Matters andIssuer Purchases of Equity Securities. |
|---------------|--------------------------------------------------------------------------------------------------------------|

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| Item 7.  | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
|---------------|----------------------------------------------------------------------------------------|

| ·   | The increase in revenues was principally due to a $76 million favorable impact from higher average earning assets (finance receivables and operating leases at constant interest rates), a $54 million favorable impact from miscellaneous net revenue items and a $49 million favorable change from returned or repossessed equipment. These increases in revenue were partially offset by an $86 million unfavorable impact from lower interest rates on new and existing finance receivables. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Profit before income taxes was $504 million for 2011, compared to $329 million for 2010. The increase was principally due to a $54 million favorable impact from miscellaneous net revenue items, a $49 million improvement in net yield on average earning assets, a $49 million favorable change from returned or repossessed equipment, a $37 million decrease in the provision for credit losses and a $28 million favorable impact from higher average earning assets. These increases in pre-tax profit were partially offset by a $54 million increase in general, operating and administrative expense. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The provision for income taxes for 2011 reflects an annual tax rate of 25 percent compared to 19 percent in 2010. The 2011 tax rate was reduced by a benefit of $15 million related to prior years, while the 2010 tax rate was reduced by a benefit of $22 million related to prior years. The annual tax rate increased during 2011 primarily due to changes in our geographic mix of pre-tax profits. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | New retail financing was $11.32 billion, an increase of $1.9 billion, or 20 percent, from 2010. The increase was primarily related to improvements in our Asia/Pacific and Mining and North America operating segments. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | During 2011, our overall portfolio quality reflected continued improvement. At the end of 2011, past dues were 2.89 percent, down from 3.54 percent at the end of the third quarter of 2011 and 3.87 percent at the end of 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Write-offs, net of recoveries, were $158 million for the full-year 2011, compared to $237 million for 2010. Full-year 2011 write-offs, net of recoveries, were 0.70 percent of average annual retail portfolio, compared to 1.04 percent in 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | At year-end 2011, our allowance for credit losses totaled $369 million or 1.47 percent of net finance receivables, compared with $363 million or 1.57 percent of net finance receivables at year-end 2010. The overall increase of $6 million in allowance for credit losses during the year reflects a $31 million increase in allowance due to an increase in our net finance receivables portfolio, partially offset by a $25 million decrease associated with the lower allowance rate. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (Millions of dollars)                                                |   | 2011   |     |   | 2010   |   |
|----------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Finance receivable and operating lease fees (including late charges) |   | $      | 68       |   |   | $      | 72 |   |
| Fees on credit facility with Caterpillar                             |   |   | 40       |   |   |   | - |   |
| Net gain/(loss) on returned or repossessed equipment                 |   |   | 33       |   |   |   | (16 | ) |
| Interest income on Notes Receivable from Caterpillar                 |   |   | 16       |   |   |   | 73 |   |
| Miscellaneous other revenue, net                                     |   |   |  28 |   |   |   |  13 |   |
| Total Other revenue, net                                             |   | $      | 185      |   |   | $      | 142 |   |
|                                                                 |   |   |     |   |   |   |   |   |

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| (Millions of dollars)                                                                 |   | 2011   |   |   | 2010   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net gain/(loss) from interest rate derivatives                                        |   | $      | (7     | )      |   | $      | 10 |   |
|                                                                                  |   |   |   |   |   |   |   |   |
| Currency exchange gain/(loss)                                                         |   |   | 10     |   |   |   | (24 | ) |
| Net gain/(loss) on undesignated foreign exchange contracts (including forward points) |   |   | (15    | )      |   |   | 16 |   |
| Net currency exchange loss                                                            |   |   | ( 5    | )      |   |   | (8 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |
| Other miscellaneous income                                                            |   |   | 3      |   |   |   | - |   |
| Total Other income (expense)                                                          |   | $      | (9     | )      |   | $      | 2 |   |
|                                                                                  |   |   |   |   |   |   |   |   |

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| (Millions of dollars)                  |   | 2011   |   |   | 2010   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Other Managed Assets                   |   |   |   |   |   |   |
| Retail finance leases                  |   | $      | 133    |   |   | $      | 109 |   |
| Retail installment sale contracts      |   |   | 48     |   |   |   | 73 |   |
| Retail notes receivable                |   |   | 39     |   |   |   | 7 |   |
| Operating leases                       |   |   | 15     |   |   |   | 36 |   |
| Total off-balance sheet managed assets |   | $      | 235    |   |   | $      | 225 |   |
|                                   |   |   |   |   |   |   |   |   |

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|                                                                                     |   | Three Months Ended |   |
|------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                     |   | December 31,       |   |
|                                                                                     |   | 2011               |   |   | 2010 |   |
| Revenues:                                                                                |   |               |   |   |   |   |
| Retail finance                                                                           |   | $                  | 325    |   |   | $ | 323 |   |
| Operating lease                                                                          |   |               | 212    |   |   |   | 219 |   |
| Wholesale finance                                                                        |   |               | 78     |   |   |   | 64 |   |
| Other, net                                                                               |   |               | 47     |   |   |   | 27 |   |
| Total revenues                                                                           |   |               | 662    |   |   |   | 633 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
| Expenses:                                                                                |   |               |   |   |   |   |   |   |
| Interest                                                                                 |   |               | 203    |   |   |   | 221 |   |
| Depreciation on equipment leased to others                                               |   |               | 170    |   |   |   | 172 |   |
| General, operating and administrative                                                    |   |               | 116    |   |   |   | 98 |   |
| Provision for credit losses                                                              |   |               | 52     |   |   |   | 53 |   |
| Other                                                                                    |   |               | 6      |   |   |   | 13 |   |
| Total expenses                                                                           |   |               | 547    |   |   |   | 557 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
|      Other income (expense)                                     |   |               | (4     | ) |   |   | (2 | ) |
|                                                                                     |   |               |   |   |   |   |   |   |
| Profit before income taxes                                                               |   |               | 111    |   |   |   | 74 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
|     Provision for income taxes                                       |   |               | 13     |   |   |   | 1 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
| Profit of consolidated companies                                                         |   |               | 98     |   |   |   | 73 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
|     Less:  Profit attributable to noncontrolling interests |   |               | 3      |   |   |   | 3 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
| Profit1                                                                                  |   | $                  | 95     |   |   | $ | 70 |   |
|                                                                                     |   |               |   |   |   |   |   |   |
|                                                                                     |   |               |   |   |   |   |   |   |
| 1Profit attributable to Caterpillar Financial Services Corporation.                      |   |               |   |   |   |   |   |   |
|                                                                                     |   |               |   |   |   |   |   |   |

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| (Millions of dollars)                                           |   | Three Months Ended December 31, |   |
|----------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                 |   |  2011                      |   |   |  2010  |   |
| Finance receivable and operating lease fees (including late charges) |   | $                                    | 16     |   |   | $ | 20 |   |
| Fees on credit facility with Caterpillar                             |   |                                 | 10     |   |   |   | - |   |
| Net gain/(loss) on returned or repossessed equipment                 |   |                                 | 10     |   |   |   | (7 | ) |
| Interest income on Notes Receivable from Caterpillar                 |   |                                 | 5      |   |   |   | 10 |   |
| Miscellaneous other revenue, net                                     |   |                                 | 6      |   |   |   | 4 |   |
| Total Other revenue, net                                             |   | $                                    | 47     |   |   | $ | 27 |   |
|                                                                 |   |                                 |   |   |   |   |   |   |

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| (Millions of dollars)                                                                 |   | Three Months Ended |   |
|---------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                  |   | December 31,       |   |
|                                                                                  |   |  2011    |   |   |  2010  |   |
| Net gain/(loss) from interest rate derivatives                                        |   | $                  | -      |   |   | $ | (1 | ) |
|                                                                                  |   |               |   |   |   |   |   |   |
| Currency exchange gain/(loss)                                                         |   |               | (1     | ) |   |   | 6 |   |
| Net gain/(loss) on undesignated foreign exchange contracts (including forward points) |   |               | (3     | ) |   |   | (7 | ) |
| Net currency exchange loss                                                            |   |               | (4     | ) |   |   | (1 | ) |
|                                                                                  |   |               |   |   |   |   |   |   |
| Total Other income (expense)                                                          |   | $                  | (4     | ) |   | $ | (2 | ) |
|                                                                                  |   |               |   |   |   |   |   |   |

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| (Millions of dollars)                                                        |   |  2010  |      |   |  2009  |   |
|------------------------------------------------------------------------------|--------|------------------|-----------|--------|------------------|--------|
| Interest income on Notes Receivable from Caterpillar                         |   | $                | 73        |   |             | $      | 93 |   |
| Finance receivable and operating lease fees (including late charges)         |   |             | 72        |   |             |   | 74 |   |
| Miscellaneous other revenue, net                                             |   |             | 12        |   |             |   | 19 |   |
| Service fee income on sold receivables                                       |   |             | 1         |   |             |   | 8 |   |
| Gain on sales of receivables                                                 |   |             | -         |   |             |   | 12 |   |
| Write-downs on retained interests related to the securitized asset portfolio |   |             | -         |   |             |   | (34 | ) |
| Net loss on returned or repossessed equipment                                |   |             |  (16 | )      |             |   |  (69 | ) |
| Total Other revenues, net                                                    |   | $                | 142       |   |             | $      | 103 |   |
|                                                                         |   |             |      |   |             |   |   |   |

----

| (Millions of dollars)                                                                 |   |  2010  |   |   |  2009  |   |
|---------------------------------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| Net gain from interest rate derivatives                                               |   | $                | 10     |   |             | $      | 27 |   |
|                                                                                  |   |             |   |   |             |   |   |   |
| Currency exchange gain/(loss)                                                         |   |             | (24    | )      |             |   | 79 |   |
| Net gain/(loss) on undesignated foreign exchange contracts (including forward points) |   |             | 16     |   |             |   | (134 | ) |
| Net currency exchange loss                                                            |   |             | (8     | )      |             |   | (55 | ) |
|                                                                                  |   |             |   |   |             |   |   |   |
| Total Other income (expense)                                                          |   | $                | 2      |   |             | $      | (28 | ) |
|                                                                                  |   |             |   |   |             |   |   |   |

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| (Millions of dollars)                                            |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                             |   |   |    |   |   |   |
| Securitized Retail Installment Sale Contracts and Finance Leases |   |   |    |   |   |   |
| Installment sale contracts securitized                           |   | $      | -       |   |   | $      | 336 |   |
| Finance leases securitized                                       |   |   | -       |   |   |   | 10 |   |
| Less: Retained interests (included in Other assets)              |   |   |  - |   |   |   | (102 | ) |
| Off-balance sheet securitized retail receivables                 |   | $      | -       |   |   | $      | 244 |   |
|                                                             |   |   |    |   |   |   |   |   |
| Other Managed Assets                                             |   |   |    |   |   |   |   |   |
| Retail finance leases                                            |   | $      | 109     |   |   | $      | 190 |   |
| Retail installment sale contracts                                |   |   | 73      |   |   |   | 178 |   |
| Operating leases                                                 |   |   | 36      |   |   |   | 90 |   |
| Retail notes receivable                                          |   |   | 7       |   |   |   | 19 |   |
| Other managed receivables/leases                                 |   | $      | 225     |   |   | $      | 477 |   |
|                                                             |   |   |    |   |   |   |   |   |
| Total off-balance sheet managed assets                           |   | $      | 225     |   |   | $      | 721 |   |
|                                                             |   |   |    |   |   |   |   |   |

----

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| (Millions of dollars)                           |   |  2011 |   |   |  2010 |   |
|------------------------------------------------------|--------|------------|--------|--------|------------|--------|
| Medium-term notes, net of unamortized discount       |   | $          | 20,048 |   |       | $      | 17,681 |   |
| Commercial paper, net of unamortized discount        |   |       | 2,818  |   |       |   | 2,710 |   |
| Bank borrowings – long-term                    |   |       | 1,583  |   |       |   | 1,603 |   |
| Bank borrowings – short-term                   |   |       | 527    |   |       |   | 479 |   |
| Variable denomination floating rate demand notes     |   |       | 550    |   |       |   | 663 |   |
| Notes payable to Caterpillar                         |   |       | -      |   |       |   | 600 |   |
| Secured borrowings                                   |   |       | -      |   |       |   | 78 |   |
|     Total outstanding borrowings |   | $          | 25,526 |   |       | $      | 23,814 |   |
|                                                 |   |       |   |   |       |   |   |   |

| (Millions of dollars) |   |   |   |
|-----------------------|--------|--------|--------|
| 2012                  |   | $      | 4,348  |   |
| 2013                  |   |   | 5,408  |   |
| 2014                  |   |   | 4,458  |   |
| 2015                  |   |   | 877    |   |
| 2016                  |   |   | 1,731  |   |
| Thereafter            |   |   | 3,226  |   |
| Total                 |   | $      | 20,048 |   |
|                  |   |   |   |   |

| ·   | The 364-day facility of $2.55 billion expires in September 2012. |
|--------------------|------------------------------------------------------------------|

| ·   | The five-year facility of $3.86 billion expires in September 2016.  |
|--------------------|--------------------------------------------------------------------------|

| ·   | The four-year facility of $2.09 billion expires in September 2014. |
|--------------------|--------------------------------------------------------------------|

----

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| (Millions of dollars)              |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   | 2016   |   |   | After 2016 |   |   | Total  |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
| Long-term debt                     |   | $      | 5,102  |   |   | $      | 5,816  |   |   | $      | 4,664  |   |   | $      | 987    |   |       | $      | 1,775  |   |   | $ | 3,287 |   |   | $ | 21,631 |   |
| Operating leases                   |   |   | 14     |   |   |   | 13     |   |   |   | 11     |   |   |   | 11     |   |       |   | 10     |   |   |   | 42 |   |   |   | 101 |   |
| Purchase obligations(1)            |   |   | 26     |   |   |   | 1      |   |   |   | -      |   |   |   | -      |   |       |   | -      |   |   |   | - |   |   |   | 27 |   |
| Interest payable on long-term debt |   |   | 682    |   |   |   | 476    |   |   |   | 302    |   |   |   | 223    |   |       |   | 205    |   |   |   | 455 |   |   |   | 2,343 |   |
| Total contractual obligations      |   | $      | 5,824  |   |   | $      | 6,306  |   |   | $      | 4,977  |   |   | $      | 1,221  |   |       | $      | 1,990  |   |   | $ | 3,784 |   |   | $ | 24,102 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |

----

| Item 7A.  | Quantitative and Qualitative Disclosures About Market Risk. |
|----------------|-------------------------------------------------------------|

| Item 8.  | Financial Statements and Supplementary Data. |
|---------------|----------------------------------------------|

| Item 9.  | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
|---------------|---------------------------------------------------------------------------------------|

----

| Item 9A. | Controls and Procedures. |
|----------|--------------------------|

| Item 9B.  | Other Information. |
|----------------|--------------------|

----

| PART III |
|----------|

| Item 14.  | Principal Accounting Fees and Services. |
|----------------|-----------------------------------------|

| (Millions of dollars) |   | 2011   |   |   | 2010   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|
| Audit fees            |   | $      | 3.6    |   |   | $      | 3.4 |   |
| Audit-related fees(1) |   |   | .5     |   |   |   | .4 |   |
| Tax fees(2)           |   |   | .4     |   |   |   | .3 |   |
| Total                 |   | $      | 4.5    |   |   | $      | 4.1 |   |
|                  |   |   |   |   |   |   |   |   |

----

| PART IV |
|---------|

| Item 15.  | Exhibits and Financial Statement Schedules. |
|----------------|---------------------------------------------|

|   | (a)  |  The following documents are filed as part of this report. |
|--------|-----------|-----------------------------------------------------------------|
|   |      |  1.                                                        |  Financial Statements |
|   |      |                                                            |  · |  Management's Report on Internal Control Over Financial Reporting |
|   |      |                                                            |  · |  Report of Independent Registered Public Accounting Firm |
|   |      |                                                            |  · |  Consolidated Statements of Profit |
|   |      |                                                            |  · |  Consolidated Statements of Financial Position |
|   |      |                                                            |  · |  Consolidated Statements of Changes in Stockholder’s Equity |
|   |      |                                                            |  · |  Consolidated Statements of Cash Flows |
|   |      |                                                            |  · |  Notes to Consolidated Financial Statements |
|   |      |                                                            |   |   |
|   | (b)       |  Exhibits                                                  |

| 3.1  | Certificate of Incorporation of the Company, as amended (incorporated by reference from Exhibit 3.1 to the Company’s Form 10 for the year ended December 31, 1984).                                                                                                                                                                                                                                                                                                                                                                                                    |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2  | Bylaws of the Company, as amended (incorporated by reference from Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q, for the quarter ended June 30, 2005).                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1  | Indenture, dated as of April 15, 1985, between the Company and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference from Exhibit 4.1 to the Company’s Registration Statement on Form S-3, Commission File No. 33-2246).                                                                                                                                                                                                                                                                                                                    |
| 4.2  | First Supplemental Indenture, dated as of May 22, 1986, amending the Indenture dated as of April 15, 1985, between the Company and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference from Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q, for the quarter ended June 20, 1986).                                                                                                                                                                                                                                             |
| 4.3  | Second Supplemental Indenture, dated as of March 15, 1987, amending the Indenture dated as of April 15, 1985, between the Company and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference from Exhibit 4.3 to the Company’s Current Report on Form 8-K, dated April 24, 1987).                                                                                                                                                                                                                                                            |
| 4.4  | Third Supplemental Indenture, dated as of October 2, 1989, amending the Indenture dated as of April 15, 1985, between the Company and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference from Exhibit 4.3 to the Company’s Current Report on Form 8-K, dated October 16, 1989).                                                                                                                                                                                                                                                          |
| 4.5  | Fourth Supplemental Indenture, dated as of October 1, 1990, amending the Indenture dated April 15, 1985, between the Company and Morgan Guaranty Trust Company of New York, as Trustee (incorporated by reference from Exhibit 4.3 to the Company’s Current Report on Form 8-K, dated October 29, 1990).                                                                                                                                                                                                                                                               |
| 4.6  | Indenture, dated as of July 15, 1991, between the Company and Continental Bank, National Association, as Trustee (incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K, dated July 25, 1991).                                                                                                                                                                                                                                                                                                                                        |
| 4.7  | First Supplemental Indenture, dated as of October 1, 2005, amending the Indenture dated as of July 15, 1991, between the Company and U.S. Bank Trust National Association (as successor to the former Trustee) (incorporated by reference from Exhibit 4.3 to Amendment No. 5 to the Company’s Registration Statement on Form S-3 filed October 20, 2005, Commission File No. 333-114075).                                                                                                                                                                             |
| 4.8  | Support Agreement, dated as of December 21, 1984, between the Company and Caterpillar (incorporated by reference from Exhibit 10.2 to the Company’s amended Form 10, for the year ended December 31, 1984).                                                                                                                                                                                                                                                                                                                                                            |
| 4.9  | First Amendment to the Support Agreement dated June 14, 1995, between the Company and Caterpillar (incorporated by reference from Exhibit 4 to the Company’s Current Report on Form 8-K, dated June 14, 1995).                                                                                                                                                                                                                                                                                                                                                         |
| 10.1 | Tax Sharing Agreement, dated as of June 21, 1984, between the Company and Caterpillar (incorporated by reference from Exhibit 10.3 to the Company’s amended Form 10, for the year ended December 31, 1984).                                                                                                                                                                                                                                                                                                                                                            |
| 10.2 | Four-Year Credit Agreement, dated as of September 16, 2010 (2010 Four-Year Credit Agreement), among the Company, Caterpillar, Caterpillar International Finance Limited, Caterpillar Finance Corporation, certain other financial institutions named therein and Citibank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank International PLC, Banc of America Securities LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. (incorporated by reference from Exhibit 99.4 to the Company’s Current Report on Form 8-K, filed September 21, 2010). |
| 10.3 | Japan Local Currency Addendum to the 2010 Four-Year Credit Agreement among the Company, Caterpillar Finance Corporation, the Japan Local Currency Banks named therein, Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (incorporated by reference from Exhibit 99.6 to the Company’s Current Report on Form 8-K, filed September 21, 2010).                                                                                                                                                                                                                  |

----

| 10.4                   | Local Currency Addendum to the 2010 Four-Year Credit Agreement among the Company, Caterpillar International Finance Limited, the Local Currency Banks named therein, Citibank, N.A. and Citibank International PLC (incorporated by reference from Exhibit 99.5 to the Company’s Current Report on Form 8-K, filed September 21, 2010).                                                                                                                                                                                                                                              |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.5    | Amendment No. 1 to the 2010 Four-Year Credit Agreement among the Company, Caterpillar, Caterpillar Finance Corporation, Caterpillar International Finance Limited, the Banks named therein, the Local Currency Banks, the Japan Local Currency Banks, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank International PLC and Citibank, N.A. (incorporated by reference from Exhibit 99.7 to the Company’s Current Report on Form 8-K, filed September 16, 2011).                                                                                                                |
| 10.6              | 364-Day Credit Agreement dated September 15, 2011 (2011 364-Day Credit Agreement) among the Company, Caterpillar, Caterpillar International Finance Limited, Caterpillar Finance Corporation, certain financial institutions named therein, Citibank, N.A., Citibank International PLC, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC (incorporated by reference from Exhibit 99.1 to the Company’s Current Report on Form 8-K, filed September 16, 2011).            |
| 10.7                   | Local Currency Addendum to the 2011 364-Day Credit Agreement among the Company, Caterpillar International Finance Limited, the Local Currency Banks named therein, Citibank, N.A. and Citibank International PLC (incorporated by reference from Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed September 16, 2011).                                                                                                                                                                                                                                                |
| 10.8                   | Japan Local Currency Addendum to the 2011 364-Day Credit Agreement among the Company, Caterpillar Finance Corporation, the Japan Local Currency Banks named therein, Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (incorporated by reference from Exhibit 99.3 to the Company’s Current Report on Form 8-K, filed September 16, 2011).                                                                                                                                                                                                                                  |
| 10.9                   | Five-Year Credit Agreement, dated as of September 15, 2011 (2011 Five-Year Credit Agreement), among the Company, Caterpillar, Caterpillar International Finance Limited, Caterpillar Finance Corporation, certain financial institutions named therein, Citibank, N.A., Citibank International PLC, The Bank of Tokyo-Mitsubishi UFJ Ltd., Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC (incorporated by reference from Exhibit 99.4 to the Company’s Current Report on Form 8-K, filed September 16, 2011). |
| 10.10                  | Local Currency Addendum to the 2011 Five-Year Credit Agreement among the Company, Caterpillar International Finance Limited, the Local Currency Banks named therein, Citibank, N.A. and Citibank International PLC (incorporated by reference from Exhibit 99.5 to the Company’s Current Report on Form 8-K, filed September 16, 2011).                                                                                                                                                                                                                                              |
| 10.11                  | Japan Local Currency Addendum to the 2011 Five-Year Credit Agreement among the Company, Caterpillar Finance Corporation, the Japan Local Currency Banks named therein, Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (incorporated by reference from Exhibit 99.6 to the Company’s Current Report on Form 8-K, filed September 16, 2011).                                                                                                                                                                                                                                |
| 12                     | Computation of Ratio of Profit to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 23                     | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.1                   | Certification of Kent M. Adams, President, Director and Chief Executive Officer of Caterpillar Financial Services Corporation, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                      |
| 31.2                   | Certification of James A. Duensing, Executive Vice President and Chief Financial Officer of Caterpillar Financial Services Corporation, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                             |
| 32                     | Certifications of Kent M. Adams, President, Director and Chief Executive Officer of Caterpillar Financial Services Corporation, and James A. Duensing, Executive Vice President and Chief Financial Officer of Caterpillar Financial Services Corporation, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                          |
| 101.INS                | XBRL Instance Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 101.SCH                | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 101.CAL                | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 101.DEF                | XBRL Taxonomy Extension Definition Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 101.LAB                | XBRL Taxonomy Extension Label Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 101.PRE                | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|                                | Caterpillar Financial Services Corporation |
|-------------------------------------|--------------------------------------------|
|                                | (registrant)                               |
|                                |                                       |   |   |
|                                |                                       |   |   |
| Dated:  February 21, 2012 | By:                                        |  /s/ J. Wesley Blumenshine |
|                                |                                       |  J. Wesley Blumenshine, Secretary |

| Date            | Signature             |    Title                               |
|------------------------------------------------------------------------|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  February 21, 2012                                                |  /s/ Kent M. AdamsKent M. Adams                                              |      President, Director and Chief    Executive Officer                                                                                                             |
|                                                                   |                                                                              |                                                                                                                                                                                                        |
|  February 21, 2012                                                |  /s/ Edward J. RappEdward J. Rapp                                            |  Director                                                                                                                                                                                              |
|                                                                   |                                                                              |                                                                                                                                                                                                        |
|  February 21, 2012                                                |  /s/ James A. DuensingJames A. Duensing                                      |  Executive Vice President and Chief Financial Officer(Principal Financial Officer)                                                                                                                     |
|                                                                   |                                                                              |                                                                                                                                                                                                        |
|  February 21, 2012                                                |  /s/ Steven R. ElsesserSteven R. Elsesser                                    |  Controller(Principal Accounting Officer)                                                                                                                                                              |
|                                                                   |                                                                              |                                                                                                                                                                                                        |

----

----

----

|                                                                                       |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Revenues:                                                                                  |   |   |   |   |   |   |   |   |   |
| Retail finance                                                                             |   | $      | 1,291  |   |   | $      | 1,320  |   |   | $ | 1,452 |   |
| Operating lease                                                                            |   |   | 870    |   |   |   | 885    |   |   |   | 915 |   |
| Wholesale finance                                                                          |   |   | 299    |   |   |   | 205    |   |   |   | 244 |   |
| Other, net1                                                                                |   |   | 185    |   |   |   | 142    |   |   |   | 103 |   |
| Total revenues                                                                             |   |   | 2,645  |   |   |   | 2,552  |   |   |   | 2,714 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                   |   |   | 827    |   |   |   | 917    |   |   |   | 1,048 |   |
| Depreciation on equipment leased to others                                                 |   |   | 690    |   |   |   | 690    |   |   |   | 713 |   |
| General, operating and administrative                                                      |   |   | 412    |   |   |   | 358    |   |   |   | 325 |   |
| Provision for credit losses                                                                |   |   | 176    |   |   |   | 213    |   |   |   | 231 |   |
| Other                                                                                      |   |   | 27     |   |   |   | 47     |   |   |   | 49 |   |
| Total expenses                                                                             |   |   | 2,132  |   |   |   | 2,225  |   |   |   | 2,366 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|     Other income (expense)                                             |   |   | (9     | )      |   |   | 2      |   |   |   | (28 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit before income taxes                                                                 |   |   | 504    |   |   |   | 329    |   |   |   | 320 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                                 |   |   | 111    |   |   |   | 40     |   |   |   | 45 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit of consolidated companies                                                           |   |   | 393    |   |   |   | 289    |   |   |   | 275 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Profit attributable to noncontrolling interests                           |   |   | 15     |   |   |   | 11     |   |   |   | 16 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit2                                                                                    |   | $      | 378    |   |   | $      | 278    |   |   | $ | 259 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| 1Includes impairment losses on retained interests:                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                                               |   | $      | -      |   |   | $      | -      |   |   | $ | 46 |   |
| Portion of losses recognized in Accumulated other comprehensive income/(loss) before taxes |   |   | -      |   |   |   | -      |   |   |   | (12 | ) |
| Net impairment losses recognized in earnings                                               |   | $      | -      |   |   | $      | -      |   |   | $ | 34 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| 2Profit attributable to Caterpillar Financial Services Corporation.                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                |   | 2011   |        |   | 2010   |   |        | 2009   |   |
|---------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Assets:                                                             |   |   |        |   |   |   |        |   |   |
| Cash and cash equivalents                                           |   | $      | 1,176       |   |   | $      | 1,676       |   |   | $ | 2,536 |   |
| Finance receivables (Note 2)                                        |   |   |        |   |   |   |        |   |   |   |   |   |
| Retail notes receivable                                             |   |   | 8,840       |   |   |   | 8,352       |   |   |   | 8,460 |   |
| Wholesale notes receivable                                          |   |   | 4,368       |   |   |   | 2,783       |   |   |   | 1,558 |   |
| Finance leases and installment sale contracts – Retail        |   |   | 12,436      |   |   |   | 12,481      |   |   |   | 13,509 |   |
| Finance leases and installment sale contracts – Wholesale     |   |   | 425         |   |   |   | 459         |   |   |   | 500 |   |
|                                                                |   |   | 26,069      |   |   |   | 24,075      |   |   |   | 24,027 |   |
| Less: Unearned income                                               |   |   | (944        | )      |   |   | (969        | )      |   |   | (1,061 | ) |
| Less: Allowance for credit losses                                   |   |   | (369        | )      |   |   | (363        | )      |   |   | (377 | ) |
| Total net finance receivables                                       |   |   | 24,756      |   |   |   | 22,743      |   |   |   | 22,589 |   |
|                                                                |   |   |        |   |   |   |        |   |   |   |   |   |
|     Notes receivable from Caterpillar (Note 12) |   |   | 327         |   |   |   | 278         |   |   |   | 1,094 |   |
| Equipment on operating leases,                                      |   |   |        |   |   |   |        |   |   |   |   |   |
| less accumulated depreciation (Note 3)                              |   |   | 2,611       |   |   |   | 2,711       |   |   |   | 2,987 |   |
| Deferred and refundable income taxes (Note 10)                      |   |   | 159         |   |   |   | 202         |   |   |   | 123 |   |
| Other assets                                                        |   |   |  1,083 |   |   |   |  1,142 |   |   |   |  1,319 |   |
| Total assets                                                        |   | $      | 30,112      |   |   | $      | 28,752      |   |   | $ | 30,648 |   |
|                                                                |   |   |        |   |   |   |        |   |   |   |   |   |
| Liabilities and stockholder’s equity:                         |   |   |        |   |   |   |        |   |   |   |   |   |
| Payable to dealers and others                                       |   | $      |  109   |   |   | $      |  113   |   |   | $ |  160 |   |
| Payable to Caterpillar – other                                |   |   | 67          |   |   |   | 54          |   |   |   | 43 |   |
| Accrued expenses                                                    |   |   | 283         |   |   |   | 295         |   |   |   | 404 |   |
| Income taxes payable                                                |   |   | 60          |   |   |   | 90          |   |   |   | 103 |   |
| Payable to Caterpillar – borrowings (Note 12)                 |   |   | -           |   |   |   | 600         |   |   |   | 26 |   |
| Short-term borrowings (Note 6)                                      |   |   | 3,895       |   |   |   | 3,852       |   |   |   | 3,721 |   |
| Current maturities of long-term debt (Note 7)                       |   |   | 5,102       |   |   |   | 3,430       |   |   |   | 5,399 |   |
| Long-term debt (Note 7)                                             |   |   | 16,529      |   |   |   | 15,932      |   |   |   | 16,124 |   |
| Deferred income taxes and other liabilities (Note 10)               |   |   |  597   |   |   |   |  605   |   |   |   |  525 |   |
| Total liabilities                                                   |   |   | 26,642      |   |   |   | 24,971      |   |   |   | 26,505 |   |
|                                                                |   |   |        |   |   |   |        |   |   |   |   |   |
| Commitments and contingent liabilities (Note 9)                     |   |   |        |   |   |   |        |   |   |   |   |   |
|                                                                |   |   |        |   |   |   |        |   |   |   |   |   |
| Common stock - $1 par value                                         |   |   |        |   |   |   |        |   |   |   |   |   |
| Authorized:  2,000 shares; Issued and                     |   |   |        |   |   |   |        |   |   |   |   |   |
| outstanding:  one share (at paid-in amount)               |   |   | 745         |   |   |   | 745         |   |   |   | 745 |   |
| Additional paid-in capital                                          |   |   | 2           |   |   |   | 2           |   |   |   | 2 |   |
| Retained earnings                                                   |   |   | 2,512       |   |   |   | 2,734       |   |   |   | 3,062 |   |
| Accumulated other comprehensive income/(loss)                       |   |   | 116         |   |   |   | 217         |   |   |   | 264 |   |
| Noncontrolling interests                                            |   |   |  95    |   |   |   |  83    |   |   |   |  70 |   |
| Total stockholder’s equity                                    |   |   | 3,470       |   |   |   | 3,781       |   |   |   | 4,143 |   |
|                                                                |   |   |        |   |   |   |        |   |   |   |   |   |
| Total liabilities and stockholder’s equity                    |   | $      | 30,112      |   |   | $      | 28,752      |   |   | $ | 30,648 |   |
|                                                                |   |   |        |   |   |   |        |   |   |   |   |   |

----

|                                                                                                                                                                                                                                 |   | Commonstock |   |   | Additional paid-in capital |   |   | Retained earnings |   |   | Accumulatedothercomprehensiveincome/(loss) |   |   | Noncontrollinginterests |    |    | Total  |   |   | Comprehensiveincome/(loss) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------|---------|---------|--------|--------|--------|----------------------------|--------|
| Balance at December 31, 2008                                                                                                                                                                                                         |   | $           | 745    |   |                       | $      | -      |              |   | $      | 2,803                                      |   |   | $                       | (37     | )       |   | $      | 61     |                       |   | $ | 3,572 |   |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   | 259                                        |   |   |                    |    |    |   |   | 16     |                       |   |   | 275 |   |   | $ | 275 |   |
| Foreign currency translation,                                                                                                                                                                                                        |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|       net of tax of $37                                                                                                                                                                                |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | 268     |    |   |   | 1      |                       |   |   | 269 |   |   |   | 269 |   |
| Change in ownership for noncontrolling                                                                                                                                                                                               |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|       interests                                                                                                                                                                                        |   |        |   |   |                       |   | 2      |              |   |   |                                       |   |   |                    |    |    |   |   | (8     | )                          |   |   | (6 | ) |   |   | - |   |
| Derivative financial instruments                                                                                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|   Gains (losses) deferred,    net of tax of  $11                                                                                                                                             |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | (26     | )       |   |   |   |                       |   |   | (26 | ) |   |   | (26 | ) |
|  (Gains) losses reclassified to earnings,     net of tax of  $28                                                                                                                                  |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | 55      |    |   |   |   |                       |   |   | 55 |   |   |   | 55 |   |
| Retained interests                                                                                                                                                                                                                   |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|   Gains (losses) deferred,        net of tax of $91                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | (16     | )       |   |   |   |                       |   |   | (16 | ) |   |   | (16 | ) |
|   (Gains) losses reclassified to earnings,    net of tax of $11                                                                                                                                        |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | 20      |    |   |   |   |                       |   |   | 20 |   |   |   | 20 |   |
| Balance at December 31, 2009                                                                                                                                                                                                         |   | $           | 745    |   |                       | $      | 2      |              |   | $      | 3,062                                      |   |   | $                       | 264     |    |   | $      | 70     |                       |   | $ | 4,143 |   |   | $ | 577 |   |
| Adjustment to adopt consolidation of variable-interest entities                                                                                                                                                                      |   |        |   |   |                       |   |   |              |   |   | (6                                         | )      |   |                    | 3       |    |   |   | -      |                       |   |   | (3 | ) |   |   |   |   |
| Balance at January 1, 2010                                                                                                                                                                                                           |   | $           | 745    |   |                       | $      | 2      |              |   | $      | 3,056                                      |   |   | $                       | 267     |    |   | $      | 70     |                       |   | $ | 4,140 |   |   |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   | 278                                        |   |   |                    |    |    |   |   | 11     |                       |   |   | 289 |   |   | $ | 289 |   |
| Dividend paid to Cat Inc.                                                                                                                                                                                                            |   |        |   |   |                       |   |   |              |   |   | (600                                       | )      |   |                    |    |    |   |   |   |                       |   |   | (600 | ) |   |   | - |   |
| Foreign currency translation,                                                                                                                                                                                                        |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|       net of tax of $73                                                                                                                                                                                |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | (77     | )  |   |   | 2      |                       |   |   | (75 | )  |   |   | (75 | ) |
| Derivative financial instruments                                                                                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|   Gains (losses) deferred,    net of tax of  $1                                                                                                                                              |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | (6      | )       |   |   |   |                       |   |   | (6 | ) |   |   | (6 | ) |
|  (Gains) losses reclassified to earnings,    net of tax of  $16                                                                                                                                   |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | 33      |    |   |   |   |                       |   |   | 33 |   |   |   | 33 |   |
| Balance at December 31, 2010                                                                                                                                                                                                         |   | $      | 745    |   |                       | $      | 2      |              |   | $      | 2,734                                      |   |   | $                       | 217     |    |   | $      | 83     |                       |   | $ | 3,781 |   |   | $ | 241 |   |
|                                                                                                                                                                                                                                 |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                                                                                                                                                                                         |   | $           | 745    |   |                       | $      | 2      |              |   | $      | 2,734                                      |   |   | $                       | 217     |    |   | $      | 83     |                       |   | $ | 3,781 |   |   |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   | 378                                        |   |   |                    |    |    |   |   | 15     |                       |   |   | 393 |   |   | $ | 393 |   |
| Dividend paid to Cat Inc.                                                                                                                                                                                                            |   |        |   |   |                       |   |   |              |   |   | (600                                       | )      |   |                    |    |    |   |   |   |                       |   |   | (600 | ) |   |   | - |   |
| Foreign currency translation,                                                                                                                                                                                                        |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|       net of tax of $24                                                                                                                                                                                |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | (109    | )  |   |   | 4      |                       |   |   | (105 | )  |   |   | (105 | ) |
| Change in ownership for noncontrolling                                                                                                                                                                                               |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   | (7     | )                          |   |   | (7 | ) |   |   | - |   |
|       interests                                                                                                                                                                                        |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
| Derivative financial instruments                                                                                                                                                                                                     |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
|   Gains (losses) deferred,    net of tax of  $0                                                                                                                                              |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    | (1      | )       |   |   |   |                       |   |   | (1 | ) |   |   | (1 | ) |
|  (Gains) losses reclassified to earnings,     net of tax of  $3                                                                                                                                   |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |  9 |    |   |   |   |                       |   |   | 9 |   |   |   | 9 |   |
| Balance at December 31, 2011                                                                                                                                                                                                         |   | $           | 745    |   |                       | $      | 2      |              |   | $      | 2,512                                      |   |   | $                       | 116     |    |   | $      | 95     |                       |   | $ | 3,470 |   |   | $ | 296 |   |
|                                                                                                                                                                                                                                 |   |        |   |   |                       |   |   |              |   |   |                                       |   |   |                    |    |    |   |   |   |                       |   |   |   |   |   |   |   |   |
| 1Includes noncredit component of other-than-temporary impairment losses on retained interests of ($8) million, net of tax of $4 million, for the twelve months ended December 31, 2009. See Note 2C for additional information. |   |
|                                                                                                                                                                                                                                 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |  2011  |               |    |  2010  |   |               |  2009  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------------------|---------|------------------|--------|--------------------|------------------|--------|
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |               |    |             |   |               |             |   |
| Profit of consolidated companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                | 393                |    |             | $      | 289                |             |   | $ | 275 |   |
| Adjustments for non-cash items:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             |               |    |             |   |               |             |   |   |   |   |
|         Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 710                |    |             |   | 715                |             |   |   | 742 |   |
| Amortization of receivables purchase discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | (212               | )       |             |   | (139               | )                |   |   | (163 | ) |
| Provision for credit losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 176                |    |             |   | 213                |             |   |   | 231 |   |
| Gain on sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | (4                 | )  |             |   | -                  |             |   |   | (12 | ) |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | (66                | )       |             |   | (189               | )                |   |   | (156 | ) |
| Changes in assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |               |    |             |   |               |             |   |   |   |   |
| Receivables from others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 16                 |    |             |   | 44                 |             |   |   | 82 |   |
| Other receivables/payables with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | (8                 | )       |             |   | 20                 |             |   |   | (34 | ) |
| Payable to dealers and others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 2                  |    |             |   | (16                | )                |   |   | (141 | ) |
| Accrued interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | 36                 |    |             |   | 24                 |             |   |   | 116 |   |
| Accrued expenses and other liabilities, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | (49                | )       |             |   | 4                  |             |   |   | (59 | ) |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 34                 |    |             |   | (80                | )                |   |   | 90 |   |
| (Payments)/Proceeds on interest rate swaps                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |    (2    | )       |             |   |   (1     | )                |   |   |  189 |   |
| Net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |  1,026        |    |             |   |   884    |             |   |   |  1,160 |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |               |    |             |   |               |             |   |   |   |   |
| Expenditures for equipment on operating leases and for non-leased equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | (1,190             | )       |             |   | (959               | )                |   |   | (976 | ) |
| Proceeds from disposals of equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 1,161              |    |             |   | 1,383              |             |   |   | 1,092 |   |
| Additions to finance receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             | (49,126            | )       |             |   | (28,320            | )                |   |   | (20,387 | ) |
| Collections of finance receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 46,163             |    |             |   | 27,922             |             |   |   | 23,934 |   |
| Proceeds from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 207                |    |             |   | 16                 |             |   |   | 987 |   |
| Net change in variable lending to Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 55                 |    |             |   | (43                | )           |   |   | 37 |   |
| Additions to other notes receivable with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | (184               | )       |             |   | (136               | )                |   |   | (1,550 | ) |
| Collections on other notes receivable with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | 77                 |    |             |   | 1,005              |             |   |   | 500 |   |
| Restricted cash and cash equivalents activity, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             | 27                 |    |             |   | 74                 |             |   |   | - |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |  6            |    |             |   |   29     |             |   |   |    (257 | ) |
| Net cash (used in) provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             | (2,804             | )       |             |   |  971          |             |   |   | 3,380 |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             |               |    |             |   |               |             |   |   |   |   |
| Net change in variable lending from Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |             | -                  |    |             |   | (26                | )                |   |   | (416 | ) |
| Proceeds from borrowings with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | -                  |    |             |   | 600                |             |   |   | - |   |
| Payments on borrowings with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | (600               | )       |             |   | -                  |             |   |   | - |   |
| Proceeds from debt issued (original maturities greater than three months)                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             | 10,873             |    |             |   | 8,108              |             |   |   | 11,833 |   |
| Payments on debt issued (original maturities greater than three months)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | (8,324             | )       |             |   | (11,104            | )                |   |   | (11,769 | ) |
| Short-term borrowings, net (original maturities three months or less)                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | (103               | )       |             |   | 369                |             |   |   | (2,737 | ) |
| Dividend paid to Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             | (600               | )       |             |   | (600               | )                |   |   | - |   |
| Acquisition of noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |             | (7                 | )       |             |   | -                  |             |   |   |    (6 | )  |
| Net cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             |  1,239        |    |             |   | (2,653             | )                |   |   | (3,095 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   39     |    |             |   |   (62    | )                |   |   |   11 |   |
| (Decrease)/increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             | (500               | )       |             |   | (860               | )                |   |   | 1,456 |   |
| Cash and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             |    1,676 |    |             |   |    2,536 |             |   |   |    1,080 |   |
| Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                |  1,176        |    |             | $      |  1,676        |             |   | $ |  2,536 |   |
| Cash paid for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                | 823                |    |             | $      | 917                |             |   | $ | 1,038 |   |
| Cash paid (received) for taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                | 96                 |    |             | $      | 72                 |             |   | $ | (19 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             |               |    |             |   |               |             |   |   |   |   |
| Non-cash activity: On January 1, 2010, we adopted the provisions of the new consolidation of variable-interest entities accounting guidance, which resulted in the consolidation of qualifying special purpose entities related to our asset-backed securitization program which had previously been recorded off-balance sheet. Please refer to Note 2C. During 2009, an obligation for $232 million related to a financing arrangement, which provided us a return, was fulfilled through the release of a security deposit. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |

----

| A.   | Nature of operations |
|----------------|----------------------|

| B.   | Basis of consolidation |
|----------------|------------------------|

| C.   | Recognition of earned income |
|----------------|------------------------------|

|  ·   | Retail finance revenue on finance leases and installment sale contracts is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance.  Revenue on retail notes is recognized based on the daily balance of retail receivables outstanding and the applicable interest rate.                                                                    |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ·   | Operating lease revenue is recorded on a straight-line basis in the period earned over the life of the contract.                                                                                                                                                                                                                                                                                                    |
|  ·   | Wholesale revenue on installment sale contracts and finance leases related to financing dealer inventory and rental fleets is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance.  Revenue on wholesale notes is recognized based on the daily balance of wholesale receivables outstanding and the applicable effective interest rate. |

----

| ·   | Loan origination and commitment fees are deferred and then amortized to revenue using the interest method over the life of the finance receivables. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | Depreciation |
|----------------|--------------|

| E.   | Residual values |
|----------------|-----------------|

| F.   | Debt issuance costs |
|----------------|---------------------|

| G.   | Derivative financial instruments |
|----------------|----------------------------------|

| H.   | Allowance for credit losses |
|----------------|-----------------------------|

----

| I.   | Income taxes |
|----------------|--------------|

| J.   | Foreign currency translation |
|----------------|------------------------------|

| K.   | Sales and servicing of finance receivables |
|----------------|--------------------------------------------|

| L.   | Use of estimates in the preparation of financial statements |
|----------------|-------------------------------------------------------------|

----

| M.   | New accounting pronouncements |
|----------------|-------------------------------|

----

| N.   | Accumulated other comprehensive income/(loss) |
|----------------|-----------------------------------------------|

| (Millions of dollars)                               |   |
|-----------------------------------------------------|--------|
|                                                |   | December 31, |   |
|                                                |   | 2011 |   |   | 2010 |   |   | 2009 |   |
|   Foreign currency translation            |   | $ | 122 |   |   | $ | 231 |   |   | $ | 308 |   |
|   Derivative financial instruments        |   |   | (6 | ) |   |   | (14 | ) |   |   | (41 | ) |
|   Retained interests                      |   |   | - |   |   |   | - |   |   |   | (3 | ) |
| Total Accumulated other comprehensive income/(loss) |   | $ | 116 |   |   | $ | 217 |   |   | $ | 264 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |

| A.   | Contractual Maturities of Finance Receivables |
|----------------|-----------------------------------------------|

| (Millions of dollars)             |   |                              |   |   |                                      |   |                  |                       |   |   |                          |   |   |        |   |   |           |   |   |   |   |
|-----------------------------------|--------|-----------------------------------|--------|--------|-------------------------------------------|--------|-----------------------|----------------------------|--------|--------|-------------------------------|--------|--------|-------------|--------|--------|----------------|--------|--------|--------|--------|
| Amounts due in                    |   | Retail Installment Sale Contracts |   |   | Wholesale Installment Sale Contracts |   |                  | Retail Finance Leases |   |   | Wholesale Finance Leases |   |   | RetailNotes |   |   | WholesaleNotes |   |   | Total  |   |
|                              |   |                              |   |   |                                      |   |                  |                       |   |   |                          |   |   |        |   |   |           |   |   |   |   |
| 2012                              |   | $                                 | 1,854  |   |                                      | $      | 121                   |                       |   | $      | 3,098                         |   |   | $           | 83     |   |           | $      | 2,994  |   |   | $ | 4,205 |   |   | $ | 12,355 |   |
| 2013                              |   |                              | 1,271  |   |                                      |   | 35                    |                       |   |   | 2,040                         |   |   |        | 36     |   |           |   | 1,942  |   |   |   | 94 |   |   |   | 5,418 |   |
| 2014                              |   |                              | 831    |   |                                      |   | 13                    |                       |   |   | 1,097                         |   |   |        | 32     |   |           |   | 1,261  |   |   |   | 59 |   |   |   | 3,293 |   |
| 2015                              |   |                              | 391    |   |                                      |   | 3                     |                       |   |   | 472                           |   |   |        | 8      |   |           |   | 997    |   |   |   | 8 |   |   |   | 1,879 |   |
| 2016                              |   |                              | 117    |   |                                      |   | 1                     |                       |   |   | 215                           |   |   |        | 5      |   |           |   | 766    |   |   |   | 2 |   |   |   | 1,106 |   |
|    Thereafter      |   |                              | 19     |   |                                      |   |      - |                       |   |   |  125                     |   |   |        | -      |   |           |   | 880    |   |   |   |  - |   |   |   | 1,024 |   |
|                              |   |                              | 4,483  |   |                                      |   | 173                   |                       |   |   | 7,047                         |   |   |        | 164    |   |           |   | 8,840  |   |   |   | 4,368 |   |   |   | 25,075 |   |
| Guaranteed Residual value         |   |                              | -      |   |                                      |   | -                     |                       |   |   | 435                           |   |   |        | 87     |   |           |   | -      |   |   |   | - |   |   |   | 522 |   |
| Unguaranteed Residual value       |   |                              | -      |   |                                      |   | -                     |                       |   |   | 471                           |   |   |        | 1      |   |           |   | -      |   |   |   | - |   |   |   | 472 |   |
| Less: Unearned income             |   |                              | (65    | )      |                                      |   | (1                    | )                          |   |   | (751                          | )      |   |        | (20    | )      |           |   | (75    | )      |   |   | (32 | ) |   |   | (944 | ) |
|                              |   |                              |   |   |                                      |   |                  |                       |   |   |                          |   |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Total                             |   | $                                 | 4,418  |   |                                      | $      | 172                   |                       |   | $      | 7,202                         |   |   | $           | 232    |   |           | $      | 8,765  |   |   | $ | 4,336 |   |   | $ | 25,125 |   |
| Less: Allowance for credit losses |   |                              |   |   |                                      |   |                  |                       |   |   |                          |   |   |        |   |   |           |   |   |   |   |   |   |   |   |   | (369 | ) |
| Total net finance receivables     |   |                              |   |   |                                      |   |                  |                       |   |   |                          |   |   |        |   |   |           |   |   |   |   |   |   |   |   | $ | 24,756 |   |
|                              |   |                              |   |   |                                      |   |                  |                       |   |   |                          |   |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |

| B.   | Credit Quality of Financing Receivables and Allowance for Credit Losses |
|----------------|-------------------------------------------------------------------------|

----

| ·   | Customer - Finance receivables with the customer. |
|--------------------|---------------------------------------------------|

| ·   | Dealer - Finance receivables with Caterpillar dealers. |
|--------------------|--------------------------------------------------------|

| ·   | Caterpillar Purchased Receivables - Trade receivables purchased from Caterpillar entities. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | North America - Finance receivables originated in the United States or Canada. |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Europe - Finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | Asia Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, South Korea and Southeast Asia, as well as large mining customers worldwide. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Latin America - Finance receivables originated in Central and South American countries and Mexico. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Global Power Finance - Finance receivables related to marine vessels with Caterpillar engines worldwide and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions of dollars)                                           |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |
|-----------------------------------------------------------------|--------|-------------------------|--------|--------|--------------------------|--------|--------|-------------------|--------|--------|---------------------|--------|--------|--------------------------|--------|--------|-------------------|--------|
|                                                            |   | As of December 31, 2011 |   |   | As of December 31, 2010  |   |
| Impaired Loans and Finance Leases With No Allowance Recorded(1) |   | Recorded Investment     |   |   | Unpaid Principal Balance |   |   | Related Allowance |   |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Related Allowance |   |
| Customer                                                        |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |
|    North America                                 |   | $                       | 77     |   |                     | $      | 75     |              |   | $      | -                   |   |   | $                        | 87     |   |              | $      | 87 |   |   | $ | - |   |
|    Europe                                        |   |                    | 5      |   |                     |   | 4      |              |   |   | -                   |   |   |                     | 6      |   |              |   | 4 |   |   |   | - |   |
|    Asia Pacific                                  |   |                    | 12     |   |                     |   | 12     |              |   |   | -                   |   |   |                     | 13     |   |              |   | 13 |   |   |   | - |   |
|    Latin America                                 |   |                    | 9      |   |                     |   | 9      |              |   |   | -                   |   |   |                     | 3      |   |              |   | 3 |   |   |   | - |   |
|    Global Power Finance                          |   |                    | 175    |   |                     |   | 170    |              |   |   | -                   |   |   |                     | 174    |   |              |   | 174 |   |   |   | - |   |
| Total                                                           |   | $                       | 278    |   |                     | $      | 270    |              |   | $      | -                   |   |   | $                        | 283    |   |              | $      | 281 |   |   | $ | - |   |
|                                                            |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |
| Impaired Loans and Finance Leases With An Allowance Recorded    |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |
| Customer                                                        |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |
|    North America                                 |   | $                       | 69     |   |                     | $      | 64     |              |   | $      | 15                  |   |   | $                        | 191    |   |              | $      | 185 |   |   | $ | 44 |   |
|    Europe                                        |   |                    | 36     |   |                     |   | 33     |              |   |   | 12                  |   |   |                     | 62     |   |              |   | 57 |   |   |   | 15 |   |
|    Asia Pacific                                  |   |                    | 26     |   |                     |   | 26     |              |   |   | 7                   |   |   |                     | 27     |   |              |   | 27 |   |   |   | 7 |   |
|    Latin America                                 |   |                    | 25     |   |                     |   | 25     |              |   |   | 6                   |   |   |                     | 44     |   |              |   | 43 |   |   |   | 9 |   |
|    Global Power Finance                          |   |                    | 93     |   |                     |   | 92     |              |   |   | 16                  |   |   |                     | 34     |   |              |   | 33 |   |   |   | 4 |   |
| Total                                                           |   | $                       | 249    |   |                     | $      | 240    |              |   | $      | 56                  |   |   | $                        | 358    |   |              | $      | 345 |   |   | $ | 79 |   |
|                                                            |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |
| Total Impaired Loans and FinanceLeases                          |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |
| Customer                                                        |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |
|    North America                                 |   | $                       | 146    |   |                     | $      | 139    |              |   | $      | 15                  |   |   | $                        | 278    |   |              | $      | 272 |   |   | $ | 44 |   |
|    Europe                                        |   |                    | 41     |   |                     |   | 37     |              |   |   | 12                  |   |   |                     | 68     |   |              |   | 61 |   |   |   | 15 |   |
|    Asia Pacific                                  |   |                    | 38     |   |                     |   | 38     |              |   |   | 7                   |   |   |                     | 40     |   |              |   | 40 |   |   |   | 7 |   |
|    Latin America                                 |   |                    | 34     |   |                     |   | 34     |              |   |   | 6                   |   |   |                     | 47     |   |              |   | 46 |   |   |   | 9 |   |
|    Global Power Finance                          |   |                    | 268    |   |                     |   | 262    |              |   |   | 16                  |   |   |                     | 208    |   |              |   | 207 |   |   |   | 4 |   |
| Total                                                           |   | $                       | 527    |   |                     | $      | 510    |              |   | $      | 56                  |   |   | $                        | 641    |   |              | $      | 626 |   |   | $ | 79 |   |
|                                                            |   |                    |   |   |                     |   |   |              |   |   |                |   |   |                     |   |   |              |   |   |   |   |   |   |   |

----

| (Millions of dollars)                                           |   |                        |   |   |                        |   |   |                        |   |   |                       |   |
|-----------------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|----------------------------|--------|
|                                                            |   | Year EndedDecember 31, 2011 |   |   | Year EndedDecember 31, 2010 |   |
| Impaired Loans and Finance Leases With No Allowance Recorded(1) |   | Average Recorded Investment |   |   | Interest Income Recognized  |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
| Customer                                                        |   |                        |   |   |                        |   |   |                        |   |   |                       |   |
|    North America                                 |   | $                           | 90     |   |                        | $      | 4      |                        |   | $      | 39                         |   |   | $ | 2 |   |
|    Europe                                        |   |                        | 5      |   |                        |   | -      |                        |   |   | 7                          |   |   |   | - |   |
|    Asia Pacific                                  |   |                        | 13     |   |                        |   | 1      |                        |   |   | 9                          |   |   |   | - |   |
|    Latin America                                 |   |                        | 9      |   |                        |   | 1      |                        |   |   | 5                          |   |   |   | - |   |
|    Global Power Finance                          |   |                        | 212    |   |                        |   | 6      |                        |   |   | 92                         |   |   |   | - |   |
| Total                                                           |   | $                           | 329    |   |                        | $      | 12     |                        |   | $      | 152                        |   |   | $ | 2 |   |
|                                                            |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |
| Impaired Loans and Finance Leases With An Allowance Recorded    |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |
| Customer                                                        |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |
|    North America                                 |   | $                           | 142    |   |                        | $      | 5      |                        |   | $      | 271                        |   |   | $ | 11 |   |
|    Europe                                        |   |                        | 50     |   |                        |   | 2      |                        |   |   | 85                         |   |   |   | 4 |   |
|    Asia Pacific                                  |   |                        | 23     |   |                        |   | 1      |                        |   |   | 40                         |   |   |   | 3 |   |
|    Latin America                                 |   |                        | 39     |   |                        |   | 2      |                        |   |   | 39                         |   |   |   | 3 |   |
|    Global Power Finance                          |   |                        | 83     |   |                        |   | -      |                        |   |   | 17                         |   |   |   | - |   |
| Total                                                           |   | $                           | 337    |   |                        | $      | 10     |                        |   | $      | 452                        |   |   | $ | 21 |   |
|                                                            |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |
| Total Impaired Loans and Finance Leases                         |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |
| Customer                                                        |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |
|    North America                                 |   | $                           | 232    |   |                        | $      | 9      |                        |   | $      | 310                        |   |   | $ | 13 |   |
|    Europe                                        |   |                        | 55     |   |                        |   | 2      |                        |   |   | 92                         |   |   |   | 4 |   |
|    Asia Pacific                                  |   |                        | 36     |   |                        |   | 2      |                        |   |   | 49                         |   |   |   | 3 |   |
|    Latin America                                 |   |                        | 48     |   |                        |   | 3      |                        |   |   | 44                         |   |   |   | 3 |   |
|    Global Power Finance                          |   |                        | 295    |   |                        |   | 6      |                        |   |   | 109                        |   |   |   | - |   |
| Total                                                           |   | $                           | 666    |   |                        | $      | 22     |                        |   | $      | 604                        |   |   | $ | 23 |   |
|                                                            |   |                        |   |   |                        |   |   |                        |   |   |                       |   |   |   |   |   |

| (Millions of dollars)                                                                                                                             |   | 2009   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Impaired loans/finance leases for which there is a related allowance for credit losses    (related allowance of $117 million) |   | $      | 448    |   |
| Impaired loans/finance leases for which there is no related allowance for credit losses (due to sufficient   collateral value)          |   |   | 65     |   |
| Total investment in impaired loans/finance leases as of December 31,                                                                              |   | $      | 513    |   |
|                                                                                                                                              |   |   |   |   |
| Average investment in impaired loans/finance leases                                                                                               |   | $      | 425    |   |
|                                                                                                                                              |   |   |   |   |

----

| (Millions of dollars)                  |   |              |   |   |              |   |
|----------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                   |   | December 31, 2011 |   |   | December 31, 2010 |   |
| Customer                               |   |              |   |   |              |   |
|    North America        |   | $                 | 112    |   |              | $      | 217 |   |
|    Europe               |   |              | 58     |   |              |   | 89 |   |
|    Asia Pacific         |   |              | 36     |   |              |   | 31 |   |
|    Latin America        |   |              | 108    |   |              |   | 139 |   |
|    Global Power Finance |   |              | 158    |   |              |   | 163 |   |
| Total                                  |   | $                 | 472    |   |              | $      | 639 |   |
|                                   |   |              |   |   |              |   |   |   |

| (Millions of dollars)                               |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |
|-----------------------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------|--------|--------|--------------------------|--------|
|                                                |   | December 31, 2011 |   |
|                                                |   |              | 31-60  |   |   |   | 61-90  |   |   |   | 91+    |   |   | Total Past Due |   |   | Current |   |   | Total FinanceReceivables |   |   | 91+ StillAccruing |   |
|    Customer                          |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |   |   |
|    North America                     |   | $                 | 75     |   |   | $      | 39     |   |   | $      | 111    |   |   | $              | 225    |   |    | $      | 5,448  |                     |   | $ | 5,673 |   |   | $ | 9 |   |
|    Europe                            |   |              | 27     |   |   |   | 11     |   |   |   | 57     |   |   |           | 95     |   |    |   | 2,129  |                     |   |   | 2,224 |   |   |   | 10 |   |
|    Asia Pacific                      |   |              | 48     |   |   |   | 23     |   |   |   | 50     |   |   |           | 121    |   |    |   | 4,575  |                     |   |   | 4,696 |   |   |   | 14 |   |
|    Latin America                     |   |              | 32     |   |   |   | 15     |   |   |   | 99     |   |   |           | 146    |   |    |   | 2,339  |                     |   |   | 2,485 |   |   |   | - |   |
|    Global Power Finance              |   |              | 14     |   |   |   | 16     |   |   |   | 125    |   |   |           | 155    |   |    |   | 2,765  |                     |   |   | 2,920 |   |   |   | 25 |   |
|    Dealer                            |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |   |   |   |   |   |   |
|    North America                     |   |              | -      |   |   |   | -      |   |   |   | 2      |   |   |           | 2      |   |    |   | 2,412  |                     |   |   | 2,414 |   |   |   | 2 |   |
|    Europe                            |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 334    |                     |   |   | 334 |   |   |   | - |   |
|    Asia Pacific                      |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 516    |                     |   |   | 516 |   |   |   | - |   |
|    Latin America                     |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 709    |                     |   |   | 709 |   |   |   | - |   |
|    Global Power Finance              |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | -      |                     |   |   | - |   |   |   | - |   |
|    Caterpillar Purchased Receivables |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |   |   |   |   |   |   |
|    North America                     |   |              | 25     |   |   |   | 4      |   |   |   | 6      |   |   |           | 35     |   |    |   | 1,801  |                     |   |   | 1,836 |   |   |   | 6 |   |
|    Europe                            |   |              | 3      |   |   |   | -      |   |   |   | -      |   |   |           | 3      |   |    |   | 399    |                     |   |   | 402 |   |   |   | - |   |
|    Asia Pacific                      |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 465    |                     |   |   | 465 |   |   |   | - |   |
|    Latin America                     |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 422    |                     |   |   | 422 |   |   |   | - |   |
|    Global Power Finance              |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 29     |                     |   |   | 29 |   |   |   | - |   |
| Total                                               |   | $                 | 224    |   |   | $      | 108    |   |   | $      | 450    |   |   | $              | 782    |   |    | $      | 24,343 |                     |   | $ | 25,125 |   |   | $ | 66 |   |
|                                                |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |   |   |   |   |   |   |

----

|  (Millions of dollars)                         |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |              |   |   |   |   |   |
|-----------------------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------|--------|--------|--------------------------|--------|--------|-------------------|--------|--------|--------|--------|--------|
|                                                |   | December 31, 2010 |   |
|                                                |   |              | 31-60  |   |   |   | 61-90  |   |   |   | 91+    |   |   | Total Past Due |   |   | Current |   |   | Total FinanceReceivables |   |   | 91+ StillAccruing |   |
|    Customer                          |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |              |   |   |   |   |   |
|    North America                     |   | $                 | 139    |   |   | $      | 44     |   |   | $      | 228    |   |   | $              | 411    |   |    | $      | 6,037  |                     |   | $      | 6,448             |   |   | $      | 27     |   |
|    Europe                            |   |              | 27     |   |   |   | 12     |   |   |   | 106    |   |   |           | 145    |   |    |   | 2,365  |                     |   |   | 2,510             |   |   |   | 26     |   |
|    Asia Pacific                      |   |              | 63     |   |   |   | 17     |   |   |   | 37     |   |   |           | 117    |   |    |   | 3,412  |                     |   |   | 3,529             |   |   |   | 12     |   |
|    Latin America                     |   |              | 44     |   |   |   | 16     |   |   |   | 144    |   |   |           | 204    |   |    |   | 2,222  |                     |   |   | 2,426             |   |   |   | 1      |   |
|    Global Power Finance              |   |              | 18     |   |   |   | 17     |   |   |   | 54     |   |   |           | 89     |   |    |   | 2,978  |                     |   |   | 3,067             |   |   |   | 25     |   |
|    Dealer                            |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |              |   |   |   |   |   |
|    North America                     |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 1,993  |                     |   |   | 1,993             |   |   |   | -      |   |
|    Europe                            |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 344    |                     |   |   | 344               |   |   |   | -      |   |
|    Asia Pacific                      |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 296    |                     |   |   | 296               |   |   |   | -      |   |
|    Latin America                     |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 659    |                     |   |   | 659               |   |   |   | -      |   |
|    Global Power Finance              |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 19     |                     |   |   | 19                |   |   |   | -      |   |
|    Caterpillar Purchased Receivables |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |              |   |   |   |   |   |
|    North America                     |   |              | 3      |   |   |   | 1      |   |   |   | 1      |   |   |           | 5      |   |    |   | 1,285  |                     |   |   | 1,290             |   |   |   | 1      |   |
|    Europe                            |   |              | 1      |   |   |   | -      |   |   |   | -      |   |   |           | 1      |   |    |   | 109    |                     |   |   | 110               |   |   |   | -      |   |
|    Asia Pacific                      |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 215    |                     |   |   | 215               |   |   |   | -      |   |
|    Latin America                     |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |           | -      |   |    |   | 173    |                     |   |   | 173               |   |   |   | -      |   |
|    Global Power Finance              |   |              | 3      |   |   |   | -      |   |   |   | -      |   |   |           | 3      |   |    |   | 24     |                     |   |   | 27                |   |   |   | -      |   |
| Total                                               |   | $                 | 298    |   |   | $      | 107    |   |   | $      | 570    |   |   | $              | 975    |   |    | $      | 22,131 |                     |   | $      | 23,106            |   |   | $      | 92     |   |
|                                                |   |              |   |   |   |   |   |   |   |   |   |   |   |           |   |   |    |   |   |                     |   |   |              |   |   |   |   |   |

----

| (Millions of dollars)                                              |   |              |     |   |   |   |   |                             |   |   |   |   |
|--------------------------------------------------------------------|--------|-------------------|----------|--------|--------|--------|--------|----------------------------------|--------|--------|--------|--------|
|                                                               |   | December 31, 2011 |     |
| Allowance for Credit Losses:                                       |   | Customer          |     |   | Dealer |   |   | Caterpillar PurchasedReceivables |   |   | Total  |   |
| Balance at beginning of year                                       |   | $                 | 357      |   |   | $      | 5      |                             |   | $      | 1      |   |   | $ | 363 |   |
|    Receivables written off                          |   |              | (210     | )      |   |   | -      |                             |   |   | -      |   |   |   | (210 | ) |
|    Recoveries on receivables previously written off |   |              | 52       |   |   |   | -      |                             |   |   | -      |   |   |   | 52 |   |
|    Provision for credit losses                      |   |              | 167      |   |   |   | 1      |                             |   |   | 2      |   |   |   | 170 |   |
|    Adjustment due to sale of receivables            |   |              | (3       | )      |   |   | -      |                             |   |   | -      |   |   |   | (3 | ) |
|    Foreign currency translation adjustment          |   |              |  (3 | )      |   |   | -      |                             |   |   | -      |   |   |   | (3 | ) |
| Balance at end of period                                           |   | $                 | 360      |   |   | $      | 6      |                             |   | $      | 3      |   |   | $ | 369 |   |
|                                                               |   |              |     |   |   |   |   |                             |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment                              |   | $                 | 56       |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 56 |   |
| Collectively evaluated for impairment                              |   |              | 304      |   |   |   | 6      |                             |   |   | 3      |   |   |   | 313 |   |
| Ending Balance                                                     |   | $                 | 360      |   |   | $      | 6      |                             |   | $      | 3      |   |   | $ | 369 |   |
|                                                               |   |              |     |   |   |   |   |                             |   |   |   |   |   |   |   |   |
| Recorded Investment in Finance Receivables:                        |   |              |     |   |   |   |   |                             |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment                              |   | $                 | 527      |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 527 |   |
| Collectively evaluated for impairment                              |   |              | 17,471   |   |   |   | 3,973  |                             |   |   | 3,154  |   |   |   | 24,598 |   |
| Ending Balance                                                     |   | $                 | 17,998   |   |   | $      | 3,973  |                             |   | $      | 3,154  |   |   | $ | 25,125 |   |
|                                                               |   |              |     |   |   |   |   |                             |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                                                                   |   |              |   |   |   |   |   |                             |   |   |   |   |
|-----------------------------------------------------------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|----------------------------------|--------|--------|--------|--------|
| Allowance for Credit Losses:                                                            |   | December 31, 2010 |   |   |   |   |   | December 31, 2009                |   |   |   |   |
| Balance at beginning of year                                                            |   | $                 | 377    |   |   |   |   |                             | $      | 395    |   |   |   |   |
|    Adjustment to adopt consolidation of variable-interest entities       |   |              | 18     |   |   |   |   |                             |   | -      |   |   |   |   |
|    Receivables written off                                               |   |              | (288   | )      |   |   |   |                             |   | (281   | )      |   |   |   |
|    Recoveries on receivables previously written off                      |   |              | 51     |   |   |   |   |                             |   | 28     |   |   |   |   |
|    Provision for credit losses                                           |   |              | 205    |   |   |   |   |                             |   | 225    |   |   |   |   |
|    Adjustment due to sale of receivables                                 |   |              | -      |   |   |   |   |                             |   | -      |   |   |   |   |
|    Foreign currency translation adjustment                               |   |              | -      |   |   |   |   |                             |   | 10     |   |   |   |   |
| Balance at end of year                                                                  |   | $                 | 363    |   |   |   |   |                             | $      | 377    |   |   |   |   |
|                                                                                    |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |
| Allowance for credit losses as a percent of finance receivables, net of unearned income |   |              | 1.57   | %      |   |   |   |                             |   | 1.64   | %      |   |   |   |
|                                                                                    |   |              |   |
|                                                                                    |   | December 31, 2010 |   |
|                                                                                    |   | Customer          |   |   | Dealer |   |   | Caterpillar PurchasedReceivables |   |   | Total  |   |
| Individually evaluated for impairment                                                   |   | $                 | 79     |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 79 |   |
| Collectively evaluated for impairment                                                   |   |              | 278    |   |   |   | 5      |                             |   |   | 1      |   |   |   | 284 |   |
| Ending Balance                                                                          |   | $                 | 357    |   |   | $      | 5      |                             |   | $      | 1      |   |   | $ | 363 |   |
|                                                                                    |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |
| Recorded Investment in Finance Receivables:                                             |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment                                                   |   | $                 | 641    |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 641 |   |
| Collectively evaluated for impairment                                                   |   |              | 17,339 |   |   |   | 3,311  |                             |   |   | 1,815  |   |   |   | 22,465 |   |
| Ending Balance                                                                          |   | $                 | 17,980 |   |   | $      | 3,311  |                             |   | $      | 1,815  |   |   | $ | 23,106 |   |
|                                                                                    |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                  |   |              |   |   |   |   |   |                             |   |   |   |   |
|----------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|----------------------------------|--------|--------|--------|--------|
|                                   |   | December 31, 2011 |   |
|                                   |   | Customer          |   |   | Dealer |   |   | Caterpillar PurchasedReceivables |   |   | Total  |   |
| Performing                             |   |              |   |   |   |   |   |                             |   |   |   |   |
|    North America        |   | $                 | 5,561  |   |   | $      | 2,414  |                             |   | $      | 1,836  |   |   | $ | 9,811 |   |
|    Europe               |   |              | 2,166  |   |   |   | 334    |                             |   |   | 402    |   |   |   | 2,902 |   |
|    Asia Pacific         |   |              | 4,660  |   |   |   | 516    |                             |   |   | 465    |   |   |   | 5,641 |   |
|    Latin America        |   |              | 2,377  |   |   |   | 709    |                             |   |   | 422    |   |   |   | 3,508 |   |
|    Global Power Finance |   |              | 2,762  |   |   |   | -      |                             |   |   | 29     |   |   |   | 2,791 |   |
| Total Performing                       |   | $                 | 17,526 |   |   | $      | 3,973  |                             |   | $      | 3,154  |   |   | $ | 24,653 |   |
| Non-Performing                         |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |
|    North America        |   | $                 | 112    |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 112 |   |
|    Europe               |   |              | 58     |   |   |   | -      |                             |   |   | -      |   |   |   | 58 |   |
|    Asia Pacific         |   |              | 36     |   |   |   | -      |                             |   |   | -      |   |   |   | 36 |   |
|    Latin America        |   |              | 108    |   |   |   | -      |                             |   |   | -      |   |   |   | 108 |   |
|    Global Power Finance |   |              | 158    |   |   |   | -      |                             |   |   | -      |   |   |   | 158 |   |
| Total Non-Performing                   |   | $                 | 472    |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 472 |   |
| Total Performing and Non-Performing    |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |
|    North America        |   | $                 | 5,673  |   |   | $      | 2,414  |                             |   | $      | 1,836  |   |   | $ | 9,923 |   |
|    Europe               |   |              | 2,224  |   |   |   | 334    |                             |   |   | 402    |   |   |   | 2,960 |   |
|    Asia Pacific         |   |              | 4,696  |   |   |   | 516    |                             |   |   | 465    |   |   |   | 5,677 |   |
|    Latin America        |   |              | 2,485  |   |   |   | 709    |                             |   |   | 422    |   |   |   | 3,616 |   |
|    Global Power Finance |   |              | 2,920  |   |   |   | -      |                             |   |   | 29     |   |   |   | 2,949 |   |
| Total                                  |   | $                 | 17,998 |   |   | $      | 3,973  |                             |   | $      | 3,154  |   |   | $ | 25,125 |   |
|                                   |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                  |   |              |   |   |   |   |   |                             |   |   |   |   |
|----------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|----------------------------------|--------|--------|--------|--------|
|                                   |   | December 31, 2010 |   |
|                                   |   | Customer          |   |   | Dealer |   |   | Caterpillar PurchasedReceivables |   |   | Total  |   |
| Performing                             |   |              |   |   |   |   |   |                             |   |   |   |   |
|    North America        |   | $                 | 6,231  |   |   | $      | 1,993  |                             |   | $      | 1,290  |   |   | $ | 9,514 |   |
|    Europe               |   |              | 2,421  |   |   |   | 344    |                             |   |   | 110    |   |   |   | 2,875 |   |
|    Asia Pacific         |   |              | 3,498  |   |   |   | 296    |                             |   |   | 215    |   |   |   | 4,009 |   |
|    Latin America        |   |              | 2,287  |   |   |   | 659    |                             |   |   | 173    |   |   |   | 3,119 |   |
|    Global Power Finance |   |              | 2,904  |   |   |   | 19     |                             |   |   | 27     |   |   |   | 2,950 |   |
| Total Performing                       |   | $                 | 17,341 |   |   | $      | 3,311  |                             |   | $      | 1,815  |   |   | $ | 22,467 |   |
| Non-Performing                         |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |
|    North America        |   | $                 | 217    |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 217 |   |
|    Europe               |   |              | 89     |   |   |   | -      |                             |   |   | -      |   |   |   | 89 |   |
|    Asia Pacific         |   |              | 31     |   |   |   | -      |                             |   |   | -      |   |   |   | 31 |   |
|    Latin America        |   |              | 139    |   |   |   | -      |                             |   |   | -      |   |   |   | 139 |   |
|    Global Power Finance |   |              | 163    |   |   |   | -      |                             |   |   | -      |   |   |   | 163 |   |
| Total Non-Performing                   |   | $                 | 639    |   |   | $      | -      |                             |   | $      | -      |   |   | $ | 639 |   |
| Total Performing and Non-Performing    |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |
|    North America        |   | $                 | 6,448  |   |   | $      | 1,993  |                             |   | $      | 1,290  |   |   | $ | 9,731 |   |
|    Europe               |   |              | 2,510  |   |   |   | 344    |                             |   |   | 110    |   |   |   | 2,964 |   |
|    Asia Pacific         |   |              | 3,529  |   |   |   | 296    |                             |   |   | 215    |   |   |   | 4,040 |   |
|    Latin America        |   |              | 2,426  |   |   |   | 659    |                             |   |   | 173    |   |   |   | 3,258 |   |
|    Global Power Finance |   |              | 3,067  |   |   |   | 19     |                             |   |   | 27     |   |   |   | 3,113 |   |
| Total                                  |   | $                 | 17,980 |   |   | $      | 3,311  |                             |   | $      | 1,815  |   |   | $ | 23,106 |   |
|                                   |   |              |   |   |   |   |   |                             |   |   |   |   |   |   |   |   |

----

| (Dollars in millions)                    |   |                        |   |   |                                    |   |   |                                     |   |
|------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------------|--------|
|                                     |   | Year EndedDecember 31, 2011 |   |
|                                     |   | Number of Contracts         |   |   | Pre-TDR Outstanding Recorded Investment |   |   | Post-TDR Outstanding Recorded Investment |   |
| Customer                                 |   |                        |   |   |                                    |   |   |                                     |   |
|   North America                |   |                        | 71     |   |                                    | $      | 13     |                                     |   | $ | 13 |   |
|   Europe(1)                    |   |                        | 7      |   |                                    |   | 44     |                                     |   |   | 44 |   |
|   Asia Pacific                 |   |                        | -      |   |                                    |   | -      |                                     |   |   | - |   |
|   Latin America                |   |                        | 12     |   |                                    |   | 10     |                                     |   |   | 10 |   |
|   Global Power Finance (2) (3) |   |                        | 35     |   |                                    |   | 117    |                                     |   |   | 117 |   |
| Total(4)                                 |   |                        | 125    |   |                                    | $      | 184    |                                     |   | $ | 184 |   |
|                                     |   |                        |   |   |                                    |   |   |                                     |   |   |   |   |

| (Dollars in millions)               |   |                        |   |   |                         |   |
|-------------------------------------|--------|-----------------------------|--------|--------|------------------------------|--------|
|                                |   |                        |   |   |                         |   |
|                                |   | Year EndedDecember 31, 2011 |   |
|                                |   | Number of Contracts         |   |   | Post-TDR Recorded Investment |   |
| Customer                            |   |                        |   |   |                         |   |
|   North America           |   |                        | 48     |   |                         | $      | 26 |   |
|   Europe                  |   |                        | 1      |   |                         |   | 1 |   |
|   Asia Pacific            |   |                        | -      |   |                         |   | - |   |
|   Latin America           |   |                        | 7      |   |                         |   | 4 |   |
|   Global Power Finance(1) |   |                        | 14     |   |                         |   | 70 |   |
| Total                               |   |                        | 70     |   |                         | $      | 101 |   |
|                                |   |                        |   |   |                         |   |   |   |

----

| C.   | Sales and Servicing of Finance Receivables |
|----------------|--------------------------------------------|

----

|                                                            | 2009   |
|-----------------------------------------------------------------|------------------|
| Cash flow weighted average discount rates on retained interests | 7.7% to 12.4%    |
| Weighted-average maturity in months                             | 22          |
| Expected prepayment rate                                        | 18.0%            |
| Expected credit losses                                          | 4.7% to 4.8%     |
|                                                            |             |

| (Millions of dollars)                                                                         |   | 2009   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|--------|
| Total other-than-temporary impairment losses                                                  |   | $      | 46     |   |
| Portion of losses recognized in Accumulated other comprehensive income/(loss) before taxes(1) |   |   | (12    | ) |
| Net impairment losses recognized in earnings(2)                                               |   | $      | 34     |   |
|                                                                                          |   |   |   |   |

| (Millions of dollars)                                                                |   | 2009   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|
| Cumulative credit loss as of January 1, 2009                                         |   | $      | -      |   |
| Credit losses for which an other-than-temporary impairment was previously recognized |   |   | 11     |   |
| Cumulative credit loss as of December 31, 2009                                       |   | $      | 11     |   |
|                                                                                 |   |   |   |   |

----

| Characteristics of securitized retail receivables |   |
|---------------------------------------------------|--------|

| (Millions of dollars)                                                 |   | 2009   |   |
|-----------------------------------------------------------------------|--------|--------|--------|
| Total securitized principal balance at December 31,                   |   | $      | 346    |   |
| Average securitized principal balance for the year ended December 31, |   | $      | 583    |   |
| Loans > 30 days past due at year ended December 31,                |   | $      | 62     |   |
| Net credit losses during the year                                |   | $      | 36     |   |
|                                                                  |   |   |   |   |

| (Millions of dollars)                           |   | 2009   |   |
|-------------------------------------------------|--------|--------|--------|
| Purchases of contracts through clean-up calls   |   | $      | 95     |   |
| Servicing fees received                         |   | $      | 6      |   |
| Other cash flows received on retained interests |   | $      | 10     |   |
|                                            |   |   |   |   |

| (Millions of dollars)                                         |   | 2009   |   |
|---------------------------------------------------------------|--------|--------|--------|
| Cash proceeds from sales of receivables to conduits           |   | $      | 887    |   |
| Servicing fees received                                       |   | $      | 1      |   |
| Cash flows received on the interests that continue to be held |   | $      | 7,548  |   |
|                                                          |   |   |   |   |

----

|   | Total off-balance sheet managed assets as of December 31, |
|--------|-----------------------------------------------------------|

| (Millions of dollars)                                            |   | 2011   |    |   | 2010   |   |    | 2009   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                             |   |   |    |   |   |   |    |   |   |
| Securitized Retail Installment Sale Contracts and Finance Leases |   |   |    |   |   |   |    |   |   |
| Installment sale contracts securitized                           |   | $      | -       |   |   | $      | -       |   |   | $ | 336 |   |
| Finance leases securitized                                       |   |   | -       |   |   |   | -       |   |   |   | 10 |   |
| Less: Retained interests (included in Other assets)              |   |   |  - |   |   |   |  - |   |   |   | (102 | ) |
| Off-balance sheet securitized retail receivables                 |   | $      | -       |   |   | $      | -       |   |   | $ | 244 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Other Managed Assets                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Retail finance leases                                            |   | $      | 133     |   |   | $      | 109     |   |   | $ | 190 |   |
| Retail installment sale contracts                                |   |   | 48      |   |   |   | 73      |   |   |   | 178 |   |
| Retail notes receivable                                          |   |   | 39      |   |   |   | 7       |   |   |   | 19 |   |
| Operating leases                                                 |   |   | 15      |   |   |   | 36      |   |   |   | 90 |   |
| Other managed receivables/leases                                 |   | $      | 235     |   |   | $      | 225     |   |   | $ | 477 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Total off-balance sheet managed assets                           |   | $      | 235     |   |   | $      | 225     |   |   | $ | 721 |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |   |   |

| (Millions of dollars)                      |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Equipment on operating leases, at cost     |   | $      | 4,082  |   |   | $      | 4,241  |   |   | $ | 4,562 |   |
|   Less: Accumulated depreciation |   |   | (1,471 | )      |   |   | (1,530 | )      |   |   | (1,575 | ) |
| Equipment on operating leases, net         |   | $      | 2,611  |   |   | $      | 2,711  |   |   | $ | 2,987 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |

| 2012 |   |   | 2013   |   |   | 2014   |   |   | 2015 |   |   | 2016 |   |   | Thereafter |   |   | Total  |   |
|------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|------|--------|--------|------------|--------|--------|--------|--------|
| $    | 704    |   |   | $      | 478    |   |   | $      | 270  |   |   | $    | 128    |   |       | $      | 49     |   |   | $ | 26 |   |   | $ | 1,655 |   |

----

|                                | 2011   |   | 2010   |   | 2009   |
|-------------------------------------|--------|--------|--------|--------|--------|
| Retail Financing:                   |   |   |   |   |   |
| Customer loans                      | 23%    |   | 24%    |   | 25%    |
| Finance (non-tax) leases            | 20%    |   | 21%    |   | 22%    |
| Wholesale financing                 | 18%    |   | 12%    |   | 8%     |
| Installment sale contracts          | 15%    |   | 18%    |   | 19%    |
| Tax leases (operating or finance)   | 14%    |   | 16%    |   | 18%    |
| Dealer loans                        | 9%     |   | 8%     |   | 7%     |
| Government lease-purchase contracts | 1%     |   | 1%     |   | 1%     |
|                                |   |   |   |   |   |

| ·   | The 364-day facility of $2.55 billion expires in September 2012. |
|--------------------|------------------------------------------------------------------|

| ·   | The five-year facility of $3.86 billion expires in September 2016.  |
|--------------------|--------------------------------------------------------------------------|

| ·   | The four-year facility of $2.09 billion expires in September 2014. |
|--------------------|--------------------------------------------------------------------|

----

----

| (Millions of dollars)                            |   | 2011    |   |   | 2010      |   |   | 2009    |   |
|--------------------------------------------------|--------|---------|--------|--------|-----------|--------|--------|---------|--------|
|                                             |   | Balance |   |   | Avg. Rate |   |   | Balance |   |   | Avg. Rate |   |   | Balance |   |   | Avg. Rate |   |
|                                             |   |    |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Commercial paper, net                            |   | $       | 2,818  |   |      |   | 1.0%   |    |   | $ | 2,710 |   |   |   | 1.5% |   |   | $ | 2,233 |   |   |   | 1.3% |   |
| Bank Borrowings                                  |   |    | 527    |   |      |   | 7.3%   |    |   |   | 479 |   |   |   | 4.9% |   |   |   | 793 | (1) |   |   | 5.7% |   |
| Variable denomination floating rate demand notes |   |    | 550    |   |      |   | 0.9%   |    |   |   | 663 |   |   |   | 1.1% |   |   |   | 695 |   |   |   | 2.0% |   |
| Total                                            |   | $       | 3,895  |   |      |   |   |    |   | $ | 3,852 |   |   |   |   |   |   | $ | 3,721 |   |   |   |   |   |
|                                             |   |    |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                                |   | 2011    |   |   | 2010      |   |   | 2009    |   |
|------------------------------------------------------|--------|---------|--------|--------|-----------|--------|--------|---------|--------|
|                                                 |   | Balance |   |   | Avg. Rate |   |   | Balance |   |   | Avg. Rate |   |   | Balance |   |   | Avg. Rate |   |
|                                                 |   |    |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Medium-term notes                                    |   | $       | 20,058 |   |      |   | 3.9%   |    |   | $ | 17,690 |   |   |   | 4.6% |   |   | $ | 20,271 |   |   |   | 4.6% |   |
| Unamortized discount                                 |   |    | (10    | )      |      |   |   |    |   |   | (9 | ) |   |   |   |   |   |   | (13 | ) |   |   |   |   |
|      Medium-term notes, net |   |    | 20,048 |   |      |   |   |    |   |   | 17,681 |   |   |   |   |   |   |   | 20,258 |   |   |   |   |   |
| Bank borrowings                                      |   |    | 1,583  |   |      |   | 3.7%   |    |   |   | 1,603 |   |   |   | 3.8% |   |   |   | 1,265 |   |   |   | 5.4% |   |
| Secured Borrowings                                   |   |    | -      |   |      |   |   |    |   |   | 78 |   |   |   | 4.9% |   |   |   | - |   |   |   |   |   |
|    Total                              |   | $       | 21,631 |   |      |   |   |    |   | $ | 19,362 |   |   |   |   |   |   | $ | 21,523 |   |   |   |   |   |
|                                                 |   |    |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars) |   |   |   |
|-----------------------|--------|--------|--------|
| 2012                  |   | $      | 5,102  |   |
| 2013                  |   |   | 5,816  |   |
| 2014                  |   |   | 4,664  |   |
| 2015                  |   |   | 987    |   |
| 2016                  |   |   | 1,775  |   |
|  Thereafter      |   |   | 3,287  |   |
| Total                 |   | $      | 21,631 |   |
|                  |   |   |   |   |

----

----

| (Millions of dollars)                        |                                                   |   |                         |   |   |   |   |   |   |   |
|----------------------------------------------|--------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                         |                                                   |   | Asset (Liability) Fair Value |   |
|                                         |                                                   |   | December 31,                 |   |
|                                         | Consolidated Statements of Financial Position Location |   | 2011                         |   |   | 2010   |   |   | 2009   |   |
| Designated derivatives                       |                                                   |   |                         |   |   |   |   |   |   |   |
|    Interest rate contracts    | Other assets                                           |   | $                            | 248    |   |   | $      | 211    |   |   | $ | 145 |   |
|    Interest rate contracts    | Accrued expenses                                       |   |                         | (6     | )      |   |   | (18    | )      |   |   | (100 | ) |
|                                         |                                                   |   | $                            | 242    |   |   | $      | 193    |   |   | $ | 45 |   |
| Undesignated derivatives                     |                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |
|    Foreign exchange contracts | Other assets                                           |   | $                            | 7      |   |   | $      | 6      |   |   | $ | 20 |   |
|    Foreign exchange contracts | Accrued expenses                                       |   |                         | (16    | )      |   |   | (9     | )      |   |   | (18 | ) |
|    Interest rate contracts    | Other assets                                           |   |                         | -      |   |   |   | -      |   |   |   | 2 |   |
|    Interest rate contracts    | Accrued expenses                                       |   |                         | (1     | )      |   |   | (1     | )      |   |   | (6 | ) |
|                                         |                                                   |   | $                            | (10    | )      |   | $      | (4     | )      |   | $ | (2 | ) |
|                                         |                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                                                       |   |   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|
| Balance as of December 31, 2010, net of tax of $6                           |   | $      | (14    | ) |
|    Gains (losses) deferred during the year, net of tax of $0 |   |   | (1     | ) |
|    (Gains) losses reclassified to earnings, net of tax of $3 |   |   | 9      |   |
| Balance as of December 31, 2011, net of tax of $3                           |   | $      | (6     | ) |
|                                                                        |   |   |   |   |

----

| (Millions of dollars)                                                        |   |   |   |
|------------------------------------------------------------------------------|--------|--------|--------|
| Balance as of December 31, 2009, net of tax of $21                           |   | $      | (41    | ) |
|    Gains (losses) deferred during the year, net of tax of $1  |   |   | (6     | ) |
|    (Gains) losses reclassified to earnings, net of tax of $16 |   |   | 33     |   |
| Balance as of December 31, 2010, net of tax of $6                            |   | $      | (14    | ) |
|                                                                         |   |   |   |   |

| (Millions of dollars)                                                        |   |   |   |
|------------------------------------------------------------------------------|--------|--------|--------|
| Balance as of December 31, 2008, net of tax of $38                           |   | $      | (70    | ) |
|    Gains (losses) deferred during the year, net of tax of $11 |   |   | (26    | ) |
|    (Gains) losses reclassified to earnings, net of tax of $28 |   |   | 55     |   |
| Balance as of December 31, 2009, net of tax of $21                           |   | $      | (41    | ) |
|                                                                         |   |   |   |   |

| Fair Value Hedges       |
|-------------------------|
| (Millions of dollars)   |
|                    |   |   | Year Ended December 31, 2011 |
|                    | Classification |   | Gains (Losses)on Derivatives |   | Gains (Losses)on Borrowings |
| Interest rate contracts | Other income (expense) |   | $ | 39 |   |   | $ | (44) |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   | Year Ended December 31, 2010 |
|                    | Classification |   | Gains (Losses)on Derivatives |   | Gains (Losses)on Borrowings |
| Interest rate contracts | Other income (expense) |   | $ | 107 |   |   | $ | (98) |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   | Year Ended December 31, 2009 |
|                    | Classification |   | Gains (Losses)on Derivatives |   | Gains (Losses)on Borrowings |
| Interest rate contracts | Other income (expense) |   | $ | (205) |   |   | $ | 220 |   |
|                    |   |   |   |   |   |   |   |   |   |

----

| Cash Flow Hedges        |
|-------------------------|
| (Millions of dollars)   |
|                    |   |   | Year Ended December 31, 2011 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (12) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |         - |   |   |   |   (2) |   |
|                    |   |   | $ | (12) |   |   | $ | (2) |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   | Year Ended December 31, 2010 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (49) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |         - |   |   |   |   (1) |   |
|                    |   |   | $ | (49) |   |   | $ | (1) |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   | Year Ended December 31, 2009 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (83) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |         - |   |   |   |    9 |   |
|                    |   |   | $ | (83) |   |   | $ | 9 |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   |   |   |   |   |   |   |   |

| Undesignated Derivatives   |                                |   |   |   |   |   |   |     |   |
|----------------------------|-------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|
| (Millions of dollars)      |                                |   |   |   |   |   |   |     |   |   |
|                       | Classification of Gains or (Losses) |   | 2011   |   |   | 2010   |   |     | 2009   |   |
| Foreign exchange contracts | Other income (expense)              |   | $      | (15    | )      |   | $      |  16 |   |   | $ | (134 | ) |
| Interest rate contracts    | Other income (expense)              |   |   | -      |   |   |   | 2        |   |   |   | 3 |   |
|                       |                                |   | $      | (15    | )      |   | $      | 18       |   |   | $ | (131 | ) |
|                       |                                |   |   |   |   |   |   |     |   |   |   |   |   |

----

| (Millions of dollars)     |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Guarantees with customers |   | $      | 159    |   |   | $      | 139    |   |   | $ | 157 |   |
| Limited indemnity         |   |   | 11     |   |   |   | 17     |   |   |   | 20 |   |
| Total guarantees          |   | $      | 170    |   |   | $      | 156    |   |   | $ | 177 |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars) |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| U.S.                  |   | $      | 49     |   |   | $      | (50    | )      |   | $ | (87 | ) |
| Non-U.S.              |   |   | 455    |   |   |   | 379    |   |   |   | 407 |   |
| Total                 |   | $      | 504    |   |   | $      | 329    |   |   | $ | 320 |   |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                    |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current income tax provision (benefit):  |   |   |   |   |   |   |   |   |   |
|   U.S.                         |   | $      | (14    | )      |   | $      | (43    | )      |   | $ | (74 | ) |
|   Non-U.S.                     |   |   | 164    |   |   |   | 109    |   |   |   | 132 |   |
|   State (U.S.)                 |   |   | 2      |   |   |   | (1     | )      |   |   | 5 |   |
|                                     |   |   | 152    |   |   |   | 65     |   |   |   | 63 |   |
| Deferred income tax provision (benefit): |   |   |   |   |   |   |   |   |   |   |   |   |
|   U.S.                         |   |   | (5     | )      |   |   | (8     | )      |   |   | 3 |   |
|   Non-U.S.                     |   |   | (32    | )      |   |   | (14    | )      |   |   | (6 | ) |
|   State (U.S.)                 |   |   | (4     | )      |   |   | (3     | )      |   |   | (15 | ) |
|                                     |   |   | (41    | )      |   |   | (25    | )      |   |   | (18 | ) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Provision for income taxes         |   | $      | 111    |   |   | $      | 40     |   |   | $ | 45 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                                                                                          |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Taxes computed at U.S. statutory rates                                                                         |   | $      | 176    |   |   |   | 35.0   | %      |   | $ | 115 |   |   |   | 35.0 | % |   | $ | 112 |   |   |   | 35.0 | % |
| (Decreases) increases in taxes resulting from:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   State Income Tax, net of Federal Tax                                                               |   |   | (1     | )      |   |   | (0.2   | )%     |   |   | (2 | ) |   |   | (0.6 | )% |   |   | (7 | ) |   |   | (2.2 | )% |
|   Prior Year Non-U.S. tax and interest adjustment     – Refund Claim       |   |   | -      |   |   |   | -      |   |   |   | (10 | ) |   |   | (3.0 | )% |   |   | (6 | ) |   |   | (1.9 | )% |
|   Prior Year Non-U.S. tax and interest adjustment     - Other                    |   |   | (15    | )      |   |   | (3.0   | )%     |   |   | (12 | ) |   |   | (3.6 | )% |   |   | - |   |   |   | - |   |
|   Subsidiaries' results subject to tax rates other     than U.S. statutory rates |   |   | (46    | )      |   |   | (9.1   | )%     |   |   | (47 | ) |   |   | (14.2 | )% |   |   | (48 | ) |   |   | (15.0 | )% |
|   Other, net                                                                                         |   |   | (3     | )      |   |   | (0.6   | )%     |   |   | (4 | ) |   |   | ( 1.2 | )% |   |   | (6 | ) |   |   | (1.9 | )% |
| Provision for income taxes                                                                                     |   | $      | 111    |   |   |   | 22.1   | %      |   | $ | 40 |   |   |   | 12.4 | % |   | $ | 45 |   |   |   | 14.0 | % |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                                   |   | 2011   |     |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|
| Assets:                                                 |   |   |     |   |   |   |   |   |   |
|   Deferred and refundable income taxes        |   | $      |  84 |   |   | $      | 85     |   |   | $ | 65 |   |
|                                                    |   |   |     |   |   |   |   |   |   |   |   |   |
| Liabilities:                                            |   |   |     |   |   |   |   |   |   |   |   |   |
|   Deferred income taxes and other liabilities |   |   | (584     | )      |   |   | (594   | )      |   |   | (517 | ) |
| Deferred income taxes - net                             |   | $      | (500     | )      |   | $      | (509   | )      |   | $ | (452 | ) |
|                                                    |   |   |     |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                                                              |   | 2011   |   |   | 2010   |   |       | 2009   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|
|                                                                               |   |   |   |   |   |   |       |   |   |
| Deferred tax assets:                                                               |   |   |   |   |   |   |       |   |   |
|   Allowance for credit losses                                            |   | $      | 114    |   |   | $      | 91         |   |   | $ | 78 |   |
|   Tax credit carryforwards                                               |   |   | 13     |   |   |   | 24         |   |   |   | 22 |   |
|   Deferred income taxes on derivative instruments and retained interests |   |   | 3      |   |   |   | 7          |   |   |   | 23 |   |
|   Net operating loss carryforwards                                       |   |   | 69     |   |   |   |  92   |   |   |   | 85 |   |
|                                                                               |   |   | 199    |   |   |   |  214  |   |   |   | 208 |   |
|                                                                               |   |   |   |   |   |   |       |   |   |   |   |   |
| Deferred income tax liabilities - primarily lease basis differences                |   |   | (497   | )      |   |   | (546       | )      |   |   | (558 | ) |
| Valuation allowance for deferred income tax assets                                 |   |   | (9     | )      |   |   | (8         | )      |   |   | (6 | ) |
| Deferred income tax on translation adjustment                                      |   |   | (193   | )      |   |   | (169       | )      |   |   | (96 | ) |
|                                                                               |   |   | (699   | )      |   |   |  (723 | )      |   |   | (660 | ) |
|                                                                               |   |   |   |   |   |   |       |   |   |   |   |   |
| Deferred income taxes – net                                                  |   | $      | (500   | )      |   | $      | (509       | )      |   | $ | (452 | ) |
|                                                                               |   |   |   |   |   |   |       |   |   |   |   |   |

| (Millions of dollars) |   |   |   |   |   |   |   |   |   |   |   |   |      |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
| 2012                  |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   |   | 2016-2031 |   |   | Total |   |
| $                     | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | -         |   |   | $ | 195 |   |   | $ | 195 |   |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |

| (Millions of dollars) |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |      |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|-----------|
| 2012                  |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   |   | 2016-2027 |   |   | Unlimited |   |   | Total |   |
| $                     | -      |   |   | $      | -      |   |   | $      | 3      |   |   | $      | 5         |   |   | $         | 75 |   |   | $ | 152 |   |   | $ | 235 |   |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars) |      |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                  | 2012-2018 |   |   |   | 2019   |   |   |   | 2020   |   |   |   | 2021   |   |   |   | 2022 |   |   | Total |   |
| $                     | -         |   |   | $      | 3      |   |   | $      | 11     |   |   | $      | -      |   |   | $ | - |   |   | $ | 14 |   |
|                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                                           |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                            |   |   |   |   |   |   |   |   |   |
| Reconciliation of unrecognized income tax benefits(1):          |   |   |   |   |   |   |   |   |   |
| Balance at beginning of year                                    |   | $      | 7      |   |   | $      | 7      |   |   | $ | 21 |   |
| Additions for income tax positions related to prior year        |   |   | -      |   |   |   | -      |   |   |   | 1 |   |
| Reductions for income tax positions related to prior year       |   |   | (7     | )      |   |   | -      |   |   |   | (8 | ) |
| Reductions for income tax positions related to settlements(2)   |   |   | -      |   |   |   | -      |   |   |   | (7 | ) |
| Balance at end of year                                          |   | $      | 0      |   |   | $      | 7      |   |   | $ | 7 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount that, if recognized, would impact the effective tax rate |   | $      | 0      |   |   | $      | 2      |   |   | $ | 2 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

| A.   | Fair Value Measurements |
|----------------|-------------------------|

----

| ·   | Level 1 – Quoted prices for identical instruments in active markets. |
|--------------------|----------------------------------------------------------------------------|

| ·   | Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions of dollars)                        |   |              |   |   |    |   |   |    |   |   |                                    |   |
|---------------------------------------------------|--------|-------------------|--------|--------|---------|--------|--------|---------|--------|--------|-----------------------------------------|--------|
|                                              |   | December 31, 2011 |   |
|                                              |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total Assets/Liabilities, at Fair Value |   |
| Assets                                            |   |              |   |   |    |   |   |    |   |   |                                    |   |
|   Derivative financial instruments, net |   | $                 | -      |   |    | $      | 232    |    |   | $      | -                                       |   |   | $ | 232 |   |
| Total Assets                                      |   | $                 | -      |   |    | $      | 232    |    |   | $      | -                                       |   |   | $ | 232 |   |
| Liabilities                                       |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|   Guarantees                            |   | $                 | -      |   |    | $      | -      |    |   | $      | 2                                       |   |   | $ | 2 |   |
| Total Liabilities                                 |   | $                 | -      |   |    | $      | -      |    |   | $      | 2                                       |   |   | $ | 2 |   |
|                                              |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|                                              |   | December 31, 2010 |   |
|                                              |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|                                              |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total Assets/Liabilities, at Fair Value |   |
| Assets                                            |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|   Derivative financial instruments, net |   | $                 | -      |   |    | $      | 189    |    |   | $      | -                                       |   |   | $ | 189 |   |
| Total Assets                                      |   | $                 | -      |   |    | $      | 189    |    |   | $      | -                                       |   |   | $ | 189 |   |
| Liabilities                                       |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|   Guarantees                            |   | $                 | -      |   |    | $      | -      |    |   | $      | 3                                       |   |   | $ | 3 |   |
| Total Liabilities                                 |   | $                 | -      |   |    | $      | -      |    |   | $      | 3                                       |   |   | $ | 3 |   |
|                                              |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|                                              |   | December 31, 2009 |   |
|                                              |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total Assets/Liabilities, at Fair Value |   |
| Assets                                            |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|   Derivative financial instruments, net |   | $                 | -      |   |    | $      | 43     |    |   | $      | -                                       |   |   | $ | 43 |   |
|   Securitized retained interests        |   |              | -      |   |    |   | -      |    |   |   | 102                                     |   |   |   | 102 |   |
| Total Assets                                      |   | $                 | -      |   |    | $      | 43     |    |   | $      | 102                                     |   |   | $ | 145 |   |
| Liabilities                                       |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |
|   Guarantees                            |   | $                 | -      |   |    | $      | -      |    |   | $      | 4                                       |   |   | $ | 4 |   |
| Total Liabilities                                 |   | $                 | -      |   |    | $      | -      |    |   | $      | 4                                       |   |   | $ | 4 |   |
|                                              |   |              |   |   |    |   |   |    |   |   |                                    |   |   |   |   |   |

----

| (Millions of dollars)                                             |   | Securitized Retained Interests |   |   | Guarantees |   |
|-----------------------------------------------------------------------------|--------|--------------------------------|--------|--------|------------|--------|
| Balance as of December 31, 2008                                             |   | $                              | 52     |   |       | $      | 2 |   |
|   Gains or (losses) included in earnings (realized/unrealized)(1) |   |                           | (31    | )      |       |   | - |   |
|   Changes in Accumulated other comprehensive income/(loss)        |   |                           | 6      |   |       |   | - |   |
|   Purchases, issuances and settlements                            |   |                           | 75     |   |       |   | 2 |   |
| Balance as of December 31, 2009                                             |   | $                              | 102    |   |       | $      | 4 |   |
|   Adjustment to adopt consolidation of variable-interest entities |   |                           | (102   | )      |       |   | - |   |
|   Issuance of guarantees                                          |   |                           | -      |   |       |   | 7 |   |
|   Expiration of guarantees                                        |   |                           | -      |   |       |   | (8 | ) |
| Balance as of December 31, 2010                                             |   | $                              | -      |   |       | $      | 3 |   |
|   Issuance of guarantees                                          |   |                           | -      |   |       |   | 4 |   |
|   Expiration of guarantees                                        |   |                           | -      |   |       |   | (5 | ) |
| Balance as of December 31, 2011                                             |   | $                              | -      |   |       | $      | 2 |   |
|                                                                        |   |                           |   |   |       |   |   |   |

| B.   | Fair Values of Financial Instruments |
|----------------|--------------------------------------|

----

| (Millions of dollars)                                  |   | 2011                 |    |   | 2010            |   |    |  2009           |   |
|--------------------------------------------------------|--------|----------------------|---------|--------|-----------------|--------|---------|----------------------|--------|
|                                                   |   | Carrying Amount |    |   | Fair Value |   |    | Carrying Amount |   |   | Fair Value |   |   | Carrying Amount |   |   | Fair Value |   |
| Cash and cash equivalents                              |   | $                    | 1,176   |   |            | $      | 1,176   |                 |   | $ | 1,676 |   |   | $ | 1,676 |   |   | $ | 2,536 |   |   | $ | 2,536 |   |
| Foreign currency contracts:                            |   |                 |    |   |            |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   In a receivable position                   |   | $                    | 7       |   |            | $      | 7       |                 |   | $ | 6 |   |   | $ | 6 |   |   | $ | 20 |   |   | $ | 20 |   |
|   In a payable position                      |   | $                    | (16     | )      |            | $      | (16     | )                    |   | $ | (9 | ) |   | $ | (9 | ) |   | $ | (18 | ) |   | $ | (18 | ) |
| Finance receivables, net (excluding finance leases(1)) |   | $                    | 17,431  |   |            | $      | 17,172  |                 |   | $ | 15,444 |   |   | $ | 15,311 |   |   | $ | 14,809 |   |   | $ | 14,952 |   |
| Restricted cash and cash equivalents(2)                |   | $                    | 64      |   |            | $      | 64      |                 |   | $ | 91 |   |   | $ | 91 |   |   | $ | - |   |   | $ | - |   |
| Short-term borrowings                                  |   | $                    | (3,895  | )      |            | $      | (3,895  | )                    |   | $ | (3,852 | ) |   | $ | (3,852 | ) |   | $ | (3,721 | ) |   | $ | (3,721 | ) |
| Long-term debt                                         |   | $                    | (21,631 | )      |            | $      | (22,674 | )                    |   | $ | (19,362 | ) |   | $ | (20,364 | ) |   | $ | (21,523 | ) |   | $ | (22,296 | ) |
| Interest rate swaps:                                   |   |                 |    |   |            |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   In a net receivable position               |   | $                    | 248     |   |            | $      | 248     |                 |   | $ | 211 |   |   | $ | 211 |   |   | $ | 147 |   |   | $ | 147 |   |
|   In a net payable position                  |   | $                    | (7      | )      |            | $      | (7      | )                    |   | $ | (19 | ) |   | $ | (19 | ) |   | $ | (106 | ) |   | $ | (106 | ) |
| Securitized retained interests                         |   | $                    | -       |   |            | $      | -       |                 |   | $ | - |   |   | $ | - |   |   | $ | 102 |   |   | $ | 102 |   |
| Guarantees                                             |   | $                    | (2      | )      |            | $      | (2      | )                    |   | $ | (3 | ) |   | $ | (3 | ) |   | $ | (4 | ) |   | $ | (4 | ) |
|                                                   |   |                 |    |   |            |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                                   |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Notes payable as of December 31,                        |   | $      | -      |   |   | $      | 600    |   |   | $ | 26 |   |
| Notes receivable as of December 31,                     |   | $      | 327    |   |   | $      | 278    |   |   | $ | 1,094 |   |
| Interest expense                                        |   | $      | 1      |   |   | $      | 3      |   |   | $ | 3 |   |
| Interest income on Notes Receivable with Caterpillar(1) |   | $      | 16     |   |   | $      | 73     |   |   | $ | 93 |   |
| Fees on credit facility with Caterpillar(1)             |   | $      | 40     |   |   | $      | -      |   |   | $ | - |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)      |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Purchases made             |   | $      | 32,068 |   |   | $      | 16,513 |   |   | $ | 12,497 |   |
| Discounts earned           |   | $      | 212    |   |   | $      | 139    |   |   | $ | 163 |   |
| Balance as of December 31, |   | $      | 3,154  |   |   | $      | 1,815  |   |   | $ | 1,073 |   |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars) |   |   |   |
|-----------------------|--------|--------|--------|
| 2012                  |   | $      | 14     |   |
| 2013                  |   |   | 13     |   |
| 2014                  |   |   | 11     |   |
| 2015                  |   |   | 11     |   |
| 2016                  |   |   | 10     |   |
| Thereafter            |   |   | 42     |   |
| Total                 |   | $      | 101    |   |
|                  |   |   |   |   |

| ·  | North America: We have offices in the United States and Canada that serve local dealers and customers.  This segment also includes certain unallocated corporate headquarter expenses.                                                                                                                                                                                                                                                                                                                                                    |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | Asia/Pacific and Mining: This segment includes offices in Australia, New Zealand, China, Japan, South Korea and Southeast Asia that serve local dealers and customers and also includes large mining customers worldwide.  This segment also provides project financing in various countries.                                                                                                                                                                                                                                             |
| ·  | Europe and Global Power Finance: This segment includes our offices that serve dealers and customers in Europe, Africa, Middle East and the Commonwealth of Independent States.  This segment also includes the Global Power Finance Division (GPF), which finances marine vessels with Caterpillar engines worldwide and also provides debt financing for Caterpillar electrical power generation, gas compression and co-generation systems, as well as non-Caterpillar equipment that is powered by these systems worldwide.  |
| ·  | Latin America: We have offices in Brazil, Mexico and Chile that serve local dealers and customers in Central and South America.                                                                                                                                                                                                                                                                                                                                                                                                                          |

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| (Millions of dollars)                                                                                                                                                              |   |         |   |   |                |   |   |                     |   |   |                   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------------------|--------|--------|--------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|                2011               |   | NorthAmerica |   |   | Europe and GPF |   |   | Latin America  |   |   | Asia/Pacificand Mining |   |   | Total  |   |
| External revenue                                                                                                                                                                   |   | $            | 1,011  |   |                |   | 505    |                     |   |   | 350                    |   |   |   | 779    |   |   | $ | 2,645 |   |
| Inter-segment revenue                                                                                                                                                              |   | $            | 39     |   |                |   | -      |                     |   |   | -                      |   |   |   | -      |   |   | $ | 39 |   |
| Profit(1)                                                                                                                                                                          |   | $            | 95     |   |                |   | 62     |                     |   |   | 87                     |   |   |   | 134    |   |   | $ | 378 |   |
| Interest expense                                                                                                                                                                   |   | $            | 384    |   |                |   | 145    |                     |   |   | 127                    |   |   |   | 210    |   |   | $ | 866 |   |
| Depreciation and amortization     expense                                                                                                                      |   | $            | 296    |   |                |   | 90     |                     |   |   | 47                     |   |   |   | 277    |   |   | $ | 710 |   |
| Provision for income taxes(1)                                                                                                                                                      |   | $            | 55     |   |                |   | (15    | )                        |   |   | 21                     |   |   |   | 50     |   |   | $ | 111 |   |
| Assets as of December 31,                                                                                                                                                          |   | $            | 17,303 |   |                |   | 6,982  |                     |   |   | 3,948                  |   |   |   | 7,068  |   |   | $ | 35,301 |   |
| Expenditures for equipment on     operating leases and for non-    leased equipment                                                        |   | $            | 534    |   |                |   | 118    |                     |   |   | 175                    |   |   |   | 363    |   |   | $ | 1,190 |   |
|                                                                                                                                                                               |   |         |   |   |                |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                                                                                                                                                              |   |         |   |   |          |   |   |                     |   |   |                   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------------|--------|--------|--------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|                2010               |   | NorthAmerica |   |   | Europeand GPF |   |   | Latin America  |   |   | Asia/Pacificand Mining |   |   | Total  |   |
| External revenue                                                                                                                                                                   |   | $            | 1,061  |   |          |   | 500    |                     |   |   | 297                    |   |   |   | 694    |   |   | $ | 2,552 |   |
| Inter-segment revenue                                                                                                                                                              |   | $            | 23     |   |          |   | -      |                     |   |   | -                      |   |   |   | -      |   |   | $ | 23 |   |
| Profit                                                                                                                                                                             |   | $            | (4     | )      |          |   | 78     |                     |   |   | 84                     |   |   |   | 120    |   |   | $ | 278 |   |
| Interest expense                                                                                                                                                                   |   | $            | 444    |   |          |   | 179    |                     |   |   | 121                    |   |   |   | 196    |   |   | $ | 940 |   |
| Depreciation and amortization     expense                                                                                                                      |   | $            | 328    |   |          |   | 93     |                     |   |   | 29                     |   |   |   | 265    |   |   | $ | 715 |   |
| Provision for income taxes                                                                                                                                                         |   | $            | -      |   |          |   | (1     | )                        |   |   | 16                     |   |   |   | 25     |   |   | $ | 40 |   |
| Assets as of December 31,                                                                                                                                                          |   | $            | 15,774 |   |          |   | 7,434  |                     |   |   | 3,392                  |   |   |   | 5,799  |   |   | $ | 32,399 |   |
| Expenditures for equipment on     operating leases and for non-    leased equipment                                                        |   | $            | 390    |   |          |   | 104    |                     |   |   | 124                    |   |   |   | 341    |   |   | $ | 959 |   |
|                                                                                                                                                                               |   |         |   |   |          |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |

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| (Millions of dollars)                                                                                                                                                        |   |         |   |   |          |   |   |                     |   |   |                         |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------------|--------|--------|--------------------------|--------|--------|------------------------------|--------|--------|--------|--------|
|               2009               |   | NorthAmerica |   |   | Europeand GPF |   |   | Latin America  |   |   | Asia/Pacific and Mining |   |   | Total  |   |
| External revenue                                                                                                                                                             |   | $            | 1,204  |   |          |   | 589    |                     |   |   | 276                          |   |   |   | 645    |   |   | $ | 2,714 |   |
| Inter-segment revenue                                                                                                                                                        |   | $            | 46     |   |          |   | -      |                     |   |   | -                            |   |   |   | -      |   |   | $ | 46 |   |
| Profit                                                                                                                                                                       |   | $            | 17     |   |          |   | 80     |                     |   |   | 59                           |   |   |   | 103    |   |   | $ | 259 |   |
| Interest expense                                                                                                                                                             |   | $            | 549    |   |          |   | 222    |                     |   |   | 135                          |   |   |   | 188    |   |   | $ | 1,094 |   |
| Depreciation and amortization     expense                                                                                                                |   | $            | 376    |   |          |   | 108    |                     |   |   | 22                           |   |   |   | 236    |   |   | $ | 742 |   |
| Provision for income taxes                                                                                                                                                   |   | $            | 1      |   |          |   | (8     | )                        |   |   | 26                           |   |   |   | 26     |   |   | $ | 45 |   |
| Assets as of December 31,                                                                                                                                                    |   | $            | 17,362 |   |          |   | 8,848  |                     |   |   | 3,103                        |   |   |   | 5,602  |   |   | $ | 34,915 |   |
| Expenditures for equipment on    operating leases and for non-leased     equipment                                                   |   | $            | 297    |   |          |   | 71     |                     |   |   | 193                          |   |   |   | 415    |   |   | $ | 976 |   |
|                                                                                                                                                                         |   |         |   |   |          |   |   |                     |   |   |                         |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)                |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Interest expense:                    |   |   |   |   |   |   |   |   |   |
| Interest expense from segments       |   | $      | 866    |   |   | $      | 940    |   |   | $ | 1,094 |   |
| Less: Inter-segment Interest expense |   |   | (39    | )      |   |   | (23    | )      |   |   | (46 | ) |
| Total                                |   | $      | 827    |   |   | $      | 917    |   |   | $ | 1,048 |   |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)            |   | 2011   |   |   | 2010   |   |   | 2009   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Assets                           |   |   |   |   |   |   |   |   |   |
| Assets from segments             |   | $      | 35,301 |   |   | $      | 32,399 |   |   | $ | 34,915 |   |
| Less: Investment in subsidiaries |   |   | (1,189 | )      |   |   | (1,117 | )      |   |   | (1,080 | ) |
| Less: Inter-segment balances     |   |   | (4,000 | )      |   |   | (2,530 | )      |   |   | (3,187 | ) |
| Total                            |   | $      | 30,112 |   |   | $      | 28,752 |   |   | $ | 30,648 |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |

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| (Millions of dollars)                                                                              |   | 2011   |      |   | 2010   |   |      | 2009   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Revenue                                                                                            |   |   |      |   |   |   |      |   |   |
| Inside U.S.                                                                                        |   | $      | 1,112     |   |   | $      | 1,138     |   |   | $ | 1,338 |   |
| Inside Canada                                                                                      |   |   | 374       |   |   |   | 362       |   |   |   | 348 |   |
| Inside Australia                                                                                   |   |   | 259       |   |   |   | 222       |   |   |   | 188 |   |
| All other                                                                                          |   |   | 900       |   |   |   | 830       |   |   |   | 840 |   |
|   Total                                                                                  |   | $      | 2,645     |   |   | $      | 2,552     |   |   | $ | 2,714 |   |
|                                                                                               |   |   |      |   |   |   |      |   |   |   |   |   |
| Equipment on Operating Leases and Non-Leased   Equipment (included in Other Assets), Net |   |   | 2011      |   |   |   | 2010      |   |   |   | 2009 |   |
| Inside U.S.                                                                                        |   | $      | 986       |   |   | $      | 1,044     |   |   | $ | 1,246 |   |
| Inside Canada                                                                                      |   |   | 771       |   |   |   | 818       |   |   |   | 901 |   |
| Inside Australia                                                                                   |   |   | 314       |   |   |   | 343       |   |   |   | 325 |   |
| All other                                                                                          |   |   |  592 |   |   |   |  567 |   |   |   |  604 |   |
|   Total                                                                                  |   | $      | 2,663     |   |   | $      | 2,772     |   |   | $ | 3,076 |   |
|                                                                                               |   |   |      |   |   |   |      |   |   |   |   |   |

| (Millions of dollars)        |   |          |   |   |           |   |   |          |   |   |
|------------------------------|--------|---------------|--------|--------|----------------|--------|--------|---------------|--------|--------|
|   2011   |   | First quarter |   |   | Second quarter |   |   | Third quarter |   |   | Fourth quarter |   |
| Total revenues               |   | $             | 640    |   |           | $      | 675    |          |   | $      | 668 |   |   | $ | 662 |   |
| Profit before taxes          |   | $             | 115    |   |           | $      | 152    |          |   | $      | 126 |   |   | $ | 111 |   |
| Profit                       |   | $             | 83     |   |           | $      | 107    |          |   | $      | 93 |   |   | $ | 95 |   |
|                         |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |
|   2010        |   | First quarter |   |   | Second quarter |   |   | Third quarter |   |   | Fourth quarter |   |
| Total revenues               |   | $             | 631    |   |           | $      | 648    |          |   | $      | 640 |   |   | $ | 633 |   |
| Profit before taxes          |   | $             | 71     |   |           | $      | 95     |          |   | $      | 89 |   |   | $ | 74 |   |
| Profit                       |   | $             | 53     |   |           | $      | 82     |          |   | $      | 73 |   |   | $ | 70 |   |
|                         |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |
|   2009   |   | First quarter |   |   | Second quarter |   |   | Third quarter |   |   | Fourth quarter |   |
| Total revenues               |   | $             | 681    |   |           | $      | 700    |          |   | $      | 676 |   |   | $ | 657 |   |
| Profit before taxes          |   | $             | 71     |   |           | $      | 122    |          |   | $      | 80 |   |   | $ | 47 |   |
| Profit                       |   | $             | 51     |   |           | $      | 89     |          |   | $      | 76 |   |   | $ | 43 |   |
|                         |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |

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