----

|                                         | Delaware                 | 37-1105865                    |   |
|----------------------------------------------|--------------------------|-------------------------------|--------|
|                                         | (State of incorporation) |  (IRS Employer I.D. No.) |   |
|  2120 West End Ave.Nashville, Tennessee | 37203-0001               |
| (Address of principal executive offices)     | (Zip Code)               |

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----

|                                                                                       |   | Three Months Ended |   |   | Nine Months Ended |   |
|--------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                       |   | September 30,      |   |   | September 30,     |   |
|                                                                                       |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                                                  |   |               |   |   |              |   |   |   |   |   |   |   |
| Retail finance                                                                             |   | $                  | 324    |   |              | $      | 362 |   |   | $ | 997 |   |   | $ | 1,099 |   |
| Operating lease                                                                            |   |               | 218    |   |              |   | 234 |   |   |   | 666 |   |   |   | 677 |   |
| Wholesale finance                                                                          |   |               | 55     |   |              |   | 56 |   |   |   | 141 |   |   |   | 196 |   |
| Other, net1                                                                                |   |               | 43     |   |              |   | 24 |   |   |   | 115 |   |   |   | 85 |   |
| Total revenues                                                                             |   |               | 640    |   |              |   | 676 |   |   |   | 1,919 |   |   |   | 2,057 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                   |   |               | 228    |   |              |   | 255 |   |   |   | 696 |   |   |   | 809 |   |
| Depreciation on equipment leased to others                                                 |   |               | 169    |   |              |   | 180 |   |   |   | 518 |   |   |   | 527 |   |
| General, operating and administrative                                                      |   |               | 90     |   |              |   | 80 |   |   |   | 270 |   |   |   | 241 |   |
| Provision for credit losses                                                                |   |               | 55     |   |              |   | 63 |   |   |   | 150 |   |   |   | 144 |   |
| Other                                                                                      |   |               | 10     |   |              |   | 10 |   |   |   | 34 |   |   |   | 37 |   |
| Total expenses                                                                             |   |               | 552    |   |              |   | 588 |   |   |   | 1,668 |   |   |   | 1,758 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Other income (expense)                                             |   |               | 1      |   |              |   | (8 | ) |   |   | 4 |   |   |   | (26 | ) |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Profit before income taxes                                                                 |   |               | 89     |   |              |   | 80 |   |   |   | 255 |   |   |   | 273 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Provision for income taxes                                         |   |               | 13     |   |              |   | - |   |   |   | 39 |   |   |   | 45 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Profit of consolidated companies                                                           |   |               | 76     |   |              |   | 80 |   |   |   | 216 |   |   |   | 228 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Less:  Profit attributable to noncontrolling interests   |   |               | 3      |   |              |   | 4 |   |   |   | 8 |   |   |   | 12 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Profit 2                                                                                   |   | $                  | 73     |   |              | $      | 76 |   |   | $ | 208 |   |   | $ | 216 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| 1 Includes impairment losses on retained interests:                                        |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                                               |   | $                  | -      |   |              | $      | - |   |   | $ | - |   |   | $ | 46 |   |
| Portion of losses recognized in Accumulated other comprehensive income (loss) before taxes |   |               | -      |   |              |   | 2 |   |   |   | - |   |   |   | (13 | ) |
| Net impairment losses recognized in earnings                                               |   | $                  | -      |   |              | $      | 2 |   |   | $ | - |   |   | $ | 33 |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| 2 Profit attributable to Caterpillar Financial Services Corporation.                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                      |   | September 30, |        |   | December 31, |   |
|-----------------------------------------------------------|--------|---------------|-------------|--------|--------------|--------|
|                                                      |   | 2010          |        |   | 2009         |   |
| Assets:                                                   |   |          |        |   |         |   |
| Cash and cash equivalents                                 |   | $             | 1,342       |   |         | $      | 2,536 |   |
| Finance receivables                                       |   |          |        |   |         |   |   |   |
| Retail notes receivable                                   |   |          | 8,639       |   |         |   | 8,499 |   |
| Wholesale notes receivable                                |   |          | 2,191       |   |         |   | 1,559 |   |
| Finance leases and installment sale contracts - Retail    |   |          | 12,976      |   |         |   | 13,895 |   |
| Finance leases and installment sale contracts - Wholesale |   |          | 463         |   |         |   | 506 |   |
|                                                      |   |          | 24,269      |   |         |   | 24,459 |   |
| Less: Unearned income                                     |   |          | (1,419      | )      |         |   | (1,493 | ) |
| Less: Allowance for credit losses                         |   |          | (367        | )      |         |   | (377 | ) |
| Total net finance receivables                             |   |          | 22,483      |   |         |   | 22,589 |   |
|                                                      |   |          |        |   |         |   |   |   |
| Notes receivable from Caterpillar                         |   |          | 758         |   |         |   | 1,094 |   |
| Equipment on operating leases,                            |   |          |        |   |         |   |   |   |
| less accumulated depreciation                             |   |          | 2,728       |   |         |   | 2,987 |   |
| Deferred and refundable income taxes                      |   |          | 148         |   |         |   | 123 |   |
| Other assets                                              |   |          |  1,314 |   |         |   |  1,319 |   |
| Total assets                                              |   | $             | 28,773      |   |         | $      | 30,648 |   |
|                                                      |   |          |        |   |         |   |   |   |
| Liabilities and stockholder’s equity:               |   |          |        |   |         |   |   |   |
| Payable to dealers and others                             |   | $             |  131   |   |         | $      |  160 |   |
| Payable to Caterpillar - other                            |   |          | 59          |   |         |   | 43 |   |
| Accrued expenses                                          |   |          | 262         |   |         |   | 404 |   |
| Income taxes payable                                      |   |          | 77          |   |         |   | 103 |   |
| Payable to Caterpillar - borrowings                       |   |          | 600         |   |         |   | 26 |   |
| Short-term borrowings                                     |   |          | 3,384       |   |         |   | 3,721 |   |
| Current maturities of long-term debt                      |   |          | 4,164       |   |         |   | 5,399 |   |
| Long-term debt                                            |   |          | 15,800      |   |         |   | 16,124 |   |
| Deferred income taxes and other liabilities               |   |          |  576   |   |         |   |  525 |   |
| Total liabilities                                         |   |          | 25,053      |   |         |   | 26,505 |   |
|                                                      |   |          |        |   |         |   |   |   |
| Commitments and contingent liabilities (Notes 7 and 8)    |   |          |        |   |         |   |   |   |
|                                                      |   |          |        |   |         |   |   |   |
| Common stock - $1 par value                               |   |          |        |   |         |   |   |   |
| Authorized:  2,000 shares; Issued and           |   |          |        |   |         |   |   |   |
| outstanding: one share (at paid-in amount)                |   |          | 745         |   |         |   | 745 |   |
| Additional paid-in capital                                |   |          | 2           |   |         |   | 2 |   |
| Retained earnings                                         |   |          | 2,664       |   |         |   | 3,062 |   |
| Accumulated other comprehensive income                    |   |          | 230         |   |         |   | 264 |   |
| Noncontrolling interests                                  |   |          |  79    |   |         |   |  70 |   |
| Total stockholder’s equity                          |   |          | 3,720       |   |         |   | 4,143 |   |
|                                                      |   |          |        |   |         |   |   |   |
| Total liabilities and stockholder’s equity          |   | $             | 28,773      |   |         | $      | 30,648 |   |
|                                                      |   |          |        |   |         |   |   |   |

----

| Nine Months Ended September 30, 2009                                                                                                                                                                                                           |   | Commonstock |   |   | Additionalpaid-incapital |   |   | Retainedearnings |   |   | Accumulatedothercomprehensiveincome (loss) |   |   | Noncontrollinginterests |   |   | Total  |   |   | Comprehensiveincome |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|--------------------------|--------|--------|------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|--------|---------------------|--------|
| Balance at December 31, 2008                                                                                                                                                                                                                   |   | $           | 745    |   |                     | $      | -      |             |   | $      | 2,803                                      |   |   | $                       | (37    | )      |   | $      | 61     |                |   | $ | 3,572 |   |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                               |   |        |   |   |                     |   |   |             |   |   | 216                                        |   |   |                    |   |   |   |   | 12     |                |   |   | 228 |   |   | $ | 228 |   |
| Foreign currency translation, netof tax of $52                                                                                                                                                                                                 |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | 276    |   |   |   |   |                |   |   | 276 |   |   |   | 276 |   |
| Derivative financial instruments                                                                                                                                                                                                               |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
|   Gains (losses) deferred, net of   tax of $9                                                                                                                                                                              |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | (22    | )      |   |   |   |                |   |   | (22 | ) |   |   | (22 | ) |
|   (Gains) losses reclassified to   earnings, net of tax of $21                                                                                                                                                             |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | 42     |   |   |   |   |                |   |   | 42 |   |   |   | 42 |   |
| Retained interests                                                                                                                                                                                                                             |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Gains (losses) deferred, net    of tax of $10 1                                                                                                                                                                                      |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | (18    | )      |   |   |   |                |   |   | (18 | ) |   |   | (18 | ) |
| (Gains) losses reclassified to   earnings, net of tax of $11                                                                                                                                                                         |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | 20     |   |   |   |   |                |   |   | 20 |   |   |   | 20 |   |
| Balance at September 30, 2009                                                                                                                                                                                                                  |   | $           | 745    |   |                     | $      | -      |             |   | $      | 3,019                                      |   |   | $                       | 261    |   |   | $      | 73     |                |   | $ | 4,098 |   |   | $ | 526 |   |
|                                                                                                                                                                                                                                           |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Nine Months Ended September 30, 2010                                                                                                                                                                                                           |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009                                                                                                                                                                                                                   |   | $           | 745    |   |                     | $      | 2      |             |   | $      | 3,062                                      |   |   | $                       | 264    |   |   | $      | 70     |                |   | $ | 4,143 |   |   |   |   |   |
| Adjustment to adopt consolidation of variable-interestentities                                                                                                                                                                                 |   |        | -      |   |                     |   | -      |             |   |   | (6                                         | )      |   |                    | 3      |   |   |   | -      |                |   |   | (3 | ) |   |   |   |   |
| Balance at January 1, 2010                                                                                                                                                                                                                     |   | $           | 745    |   |                     | $      | 2      |             |   | $      | 3,056                                      |   |   | $                       | 267    |   |   | $      | 70     |                |   | $ | 4,140 |   |   |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                               |   |        |   |   |                     |   |   |             |   |   | 208                                        |   |   |                    |   |   |   |   | 8      |                |   |   | 216 |   |   | $ | 216 |   |
| Dividend paid to Cat Inc.                                                                                                                                                                                                                      |   |        |   |   |                     |   |   |             |   |   | (600                                       | )      |   |                    |   |   |   |   |   |                |   |   | (600 | ) |   |   | - |   |
| Foreign currency translation,                                                                                                                                                                                                                  |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| net of tax of $51                                                                                                                                                                                                                              |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | (59    | )      |   |   | 1      |                |   |   | (58 | ) |   |   | (58 | ) |
| Derivative financial instruments                                                                                                                                                                                                               |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Gains (losses) deferred,                                                                                                                                                                                                                       |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| net of tax of $2                                                                                                                                                                                                                               |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | (6     | )      |   |   |   |                |   |   | (6 | ) |   |   | (6 | ) |
| (Gains) losses reclassified to earnings, net of tax of $14                                                                                                                                                                                     |   |        |   |   |                     |   |   |             |   |   |                                       |   |   |                    | 28     |   |   |   |   |                |   |   | 28 |   |   |   | 28 |   |
| Balance at September 30, 2010                                                                                                                                                                                                                  |   | $           | 745    |   |                     | $      | 2      |             |   | $      | 2,664                                      |   |   | $                       | 230    |   |   | $      | 79     |                |   | $ | 3,720 |   |   | $ | 180 |   |
|                                                                                                                                                                                                                                           |   |
| 1Includes noncredit component of other-than-temporary impairment losses on securitized retained interests of ($8) million, net of tax of $5 million, for the nine months ended September 30, 2009. See Note 9 for additional information. |   |
|                                                                                                                                                                                                                                           |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Nine Months Ended |            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | September 30,     |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2010              |            |   | 2009 |   |
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              |            |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                 | 216             |   |   | $ | 228 |   |
| Adjustments for non-cash items:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              |            |   |   |   |   |   |
|         Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | 538             |   |   |   | 550 |   |
| Amortization of receivables purchase discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | (95             | ) |   |   | (130 | ) |
| Provision for credit losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | 150             |   |   |   | 144 |   |
| Gain on sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              | -               |   |   |   | (12 | ) |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              | (162            | ) |   |   | (135 | ) |
| Changes in assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |            |   |   |   |   |   |
| Receivables from others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |              | 53              |   |   |   | 160 |   |
| Other receivables/payables with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | 21              |   |   |   | (41 | ) |
| Payable to dealers and others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | 2               |   |   |   | (147 | ) |
| Accrued interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | (41             | ) |   |   | 35 |   |
| Accrued expenses and other liabilities, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | (1              | ) |   |   | (15 | ) |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              | (43             | ) |   |   | 64 |   |
| (Payments)/proceeds on interest rate swaps                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |  (1        | ) |   |   |  189 |   |
| Net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              |  637       |   |   |   |  890 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              |            |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              |            |   |   |   |   |   |
| Expenditures for equipment on operating leases and for non-leased equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | (677            | ) |   |   | (753 | ) |
| Proceeds from disposals of equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              | 1,046           |   |   |   | 725 |   |
| Additions to finance receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | (19,168         | ) |   |   | (15,518 | ) |
| Collections of finance receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 19,084          |   |   |   | 18,796 |   |
| Proceeds from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 13              |   |   |   | 983 |   |
| Net change in variable lending to Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | (186            | ) |   |   | 34 |   |
| Additions to other notes receivable with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              | (133            | ) |   |   | (1,550 | ) |
| Collections on other notes receivable with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |              | 666             |   |   |   | 500 |   |
| Restricted cash and cash equivalents activity, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 82              |   |   |   | - |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |    17 |   |   |   |  (232 | ) |
| Net cash provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              |  744       |   |   |   |  2,985 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              |            |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              |            |   |   |   |   |   |
| Net change in variable lending from Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              | (26             | ) |   |   | (427 | ) |
| Proceeds from borrowings with Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 600             |   |   |   | - |   |
| Proceeds from debt issued (original maturities greater than three months)                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 5,738           |   |   |   | 9,833 |   |
| Payments on debt issued (original maturities greater than three months)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |              | (7,972          | ) |   |   | (9,420 | ) |
| Short-term borrowings, net (original maturities three months or less)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              | (270            | ) |   |   | (2,720 | ) |
| Dividend paid to Caterpillar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              | (600            | ) |   |   | - |   |
| Net cash used in financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              | (2,530          | ) |   |   | (2,734 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              |            |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |   (45 | ) |   |   | 19 |   |
| (Decrease) Increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | (1,194          | ) |   |   | 1,160 |   |
| Cash and cash equivalents at beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 2,536           |   |   |   | 1,080 |   |
| Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                 |  1,342     |   |   | $ |  2,240 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              |            |   |   |   |   |   |
| 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 9. 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. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |

----

| 1. | Basis of Presentation |
|----|-----------------------|

----

| 2. | Accumulated Other Comprehensive Income |
|----|----------------------------------------|

| (Millions of dollars)                        |   |               |   |   |               |   |
|----------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
|                                         |   | September 30, 2010 |   |   | September 30, 2009 |   |
|   Foreign currency translation     |   | $                  | 249    |   |               | $      | 316 |   |
|   Derivative financial instruments |   |               | (19    | )      |               |   | (50 | ) |
|   Retained interests               |   |               | -      |   |               |   | (5 | ) |
| Total Accumulated other comprehensive income |   | $                  | 230    |   |               | $      | 261 |   |
|                                         |   |               |   |   |               |   |   |   |

| 3. | New Accounting Pronouncements |
|----|-------------------------------|

----

----

| 4. | Fair Value Measurements |
|----|-------------------------|

| 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)                             |   |               |   |   |    |   |    |    |   |   |                                    |   |
|---------------------------------------------------|--------|--------------------|--------|--------|---------|--------|---------|---------|--------|--------|-----------------------------------------|--------|
|                                              |   | September 30, 2010 |   |
|                                              |   | Level 1            |   |   | Level 2 |   |    | Level 3 |   |   | Total Assets/Liabilities, at Fair Value |   |
| Assets                                            |   |               |   |   |    |   |    |    |   |   |                                    |   |
|   Derivative financial instruments, net |   | $                  | -      |   |    | $      | 292     |    |   | $      | -                                       |   |   | $ | 292 |   |
| Total Assets                                      |   | $                  | -      |   |    | $      | 292     |    |   | $      | -                                       |   |   | $ | 292 |   |
| Liabilities                                       |   |               |   |   |    |   |    |    |   |   |                                    |   |   |   |   |   |
|   Guarantees                            |   | $                  | -      |   |    | $      |  - |    |   | $      | 4                                       |   |   | $ | 4 |   |
| Total Liabilities                                 |   | $                  | -      |   |    | $      | -       |    |   | $      | 4                                       |   |   | $ |  4 |   |
|                                              |   |               |   |   |    |   |    |    |   |   |                                    |   |   |   |   |   |
|                                              |   | 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, 2009                                             |   | $                              | 102    |   |       | $      | 4 |   |
|   Adjustment to adopt consolidation of variable-interest entities |   |                           | (102   | )      |       |   | - |   |
|   Issuance of guarantees                                          |   |                           | -      |   |       |   | 6 |   |
|   Expiration of guarantees                                        |   |                           | -      |   |       |   | (6 | ) |
| Balance as of September 30, 2010                                            |   | $                              | -      |   |       | $      | 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)       |   |                           | 3      |   |       |   | - |   |
|   Purchases, issuances and settlements                           |   |                           | 75     |   |       |   | 1 |   |
| Balance as of September 30, 2009                                           |   | $                              | 99     |   |       | $      | 3 |   |
|                                                                       |   |                           |   |   |       |   |   |   |

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

----

| (Millions of dollars)                                 | Fair Values of Financial Instruments |
|-------------------------------------------------------|--------------------------------------|
|                                                  | September 30, 2010                   | December 31, 2009 |
|                                                  | CarryingAmount                       |   | FairValue |   | Carrying Amount |   | FairValue |
| Cash and cash equivalents                             | $                                    | 1,342 |   |   | $ | 1,342 |   |   | $ | 2,536 |   |   | $ | 2,536 |   |
| Foreign currency contracts:                           |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   In a receivable position                  | $                                    | 35 |   |   | $ | 35 |   |   | $ | 20 |   |   | $ | 20 |   |
|   In a payable position                     | $                                    | (22 | ) |   | $ | (22 | ) |   | $ | (18 | ) |   | $ | (18 | ) |
| Finance receivables, net (excluding finance leases) 1 | $                                    | 15,134 |   |   | $ | 15,289 |   |   | $ | 14,809 |   |   | $ | 14,304 |   |
| Restricted cash and cash equivalents2                 | $                                    | 83 |   |   | $ | 83 |   |   | $ | 13 |   |   | $ | 13 |   |
| Short-term borrowings                                 | $                                    | (3,384 | ) |   | $ | (3,384 | ) |   | $ | (3,721 | ) |   | $ | (3,721 | ) |
| Long-term debt                                        | $                                    | (19,964 | ) |   | $ | (21,154 | ) |   | $ | (21,523 | ) |   | $ | (22,296 | ) |
| Interest rate swaps:                                  |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   In a net receivable position              | $                                    | 307 |   |   | $ | 307 |   |   | $ | 147 |   |   | $ | 147 |   |
|   In a net payable position                 | $                                    | (28 | ) |   | $ | (28 | ) |   | $ | (106 | ) |   | $ | (106 | ) |
| Securitized retained interests                        | $                                    | - |   |   | $ | - |   |   | $ | 102 |   |   | $ | 102 |   |
| Guarantees                                            | $                                    | (4 | ) |   | $ | (4 | ) |   | $ | (4 | ) |   | $ | (4 | ) |
|                                                  |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 5. | Segment Information |
|----|---------------------|

| ·  | North America: We have offices in the United States and Canada that serve local dealers and customers.                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | Europe: We have offices that serve dealers and customers in Europe, Africa, Middle East and the Commonwealth of Independent States.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ·  | Diversified Services: This segment includes our Global Power Finance Division (formerly the Marine Services Division and Cat Power Finance) and our offices in Latin America that serve local dealers and customers.  The Global Power Finance Division finances marine vessels with Caterpillar engines, for all countries, 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, for all countries.  |
| ·  | Asia-Pacific: We have offices in Australia, New Zealand, China, Japan, South Korea and Southeast Asia that serve local dealers and customers, as well as large mining customers worldwide.  This segment also provides project financing in various countries.                                                                                                                                                                                                                                                                                                  |

----

|   | Supplemental segment data for the three months ended September 30, |
|--------|--------------------------------------------------------------------|

| (Millions of dollars) 2010 |   | NorthAmerica |   |   | Europe |   |   | DiversifiedServices |   |   | Asia-Pacific |   |   | Total  |   |
|---------------------------------|--------|--------------|--------|--------|--------|--------|--------|---------------------|--------|--------|--------------|--------|--------|--------|--------|
| External revenue                |   | $            | 305    |   |   | $      | 83     |                |   | $      | 121          |   |   | $      | 131    |   |   | $ | 640 |   |
| Inter-segment revenue           |   |         | 5      |   |   |   | -      |                |   |   | -            |   |   |   | -      |   |   |   | 5 |   |
| Profit                          |   |         | -      |   |   |   | 20     |                |   |   | 22           |   |   |   | 31     |   |   |   | 73 |   |
|                            |   |         |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |
|  2009                      |   | NorthAmerica |   |   | Europe |   |   | DiversifiedServices |   |   | Asia-Pacific |   |   | Total  |   |
| External revenue                |   | $            | 329    |   |   | $      | 107    |                |   | $      | 118          |   |   | $      | 122    |   |   | $ | 676 |   |
| Inter-segment revenue           |   |         | 11     |   |   |   | -      |                |   |   | -            |   |   |   | -      |   |   |   | 11 |   |
| Profit                          |   |         | 4      |   |   |   | 25     |                |   |   | 19           |   |   |   | 28     |   |   |   | 76 |   |
|                            |   |         |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |

|   | Supplemental segment data for the nine months ended September 30, |
|--------|-------------------------------------------------------------------|

| (Millions of dollars) 2010 |   | NorthAmerica |   |   | Europe |   |   | DiversifiedServices  |   |   | Asia-Pacific |   |   | Total  |   |
|---------------------------------|--------|--------------|--------|--------|--------|--------|--------|---------------------------|--------|--------|--------------|--------|--------|--------|--------|
| External revenue                |   | $            | 916    |   |   | $      | 265    |                      |   | $      | 348          |   |   | $      | 390    |   |   | $ | 1,919 |   |
| Inter-segment revenue           |   |         | 17     |   |   |   | -      |                      |   |   | -            |   |   |   | -      |   |   |   | 17 |   |
| Profit (loss)                   |   |         | (3     | )      |   |   | 52     |                      |   |   | 75           |   |   |   | 84     |   |   |   | 208 |   |
|                            |   |         |   |   |   |   |   |                      |   |   |         |   |   |   |   |   |   |   |   |   |
|  2009                      |   | NorthAmerica |   |   | Europe |   |   | DiversifiedServices       |   |   | Asia-Pacific |   |   | Total  |   |
| External revenue                |   | $            | 1,040  |   |   | $      | 329    |                      |   | $      | 336          |   |   | $      | 352    |   |   | $ | 2,057 |   |
| Inter-segment revenue           |   |         | 37     |   |   |   | -      |                      |   |   | -            |   |   |   | -      |   |   |   | 37 |   |
| Profit                          |   |         | 37     |   |   |   | 68     |                      |   |   | 46           |   |   |   | 65     |   |   |   | 216 |   |
|                            |   |         |   |   |   |   |   |                      |   |   |         |   |   |   |   |   |   |   |   |   |

| (Millions of dollars)   |   | NorthAmerica |   |   | Europe |   |   | DiversifiedServices |   |   | Asia-Pacific |   |   | Total  |   |
|-----------------------------------|--------|--------------|--------|--------|--------|--------|--------|---------------------|--------|--------|--------------|--------|--------|--------|--------|
| Assets as of September 30, 2010   |   | $            | 15,851 |   |   | $      | 4,252  |                |   | $      | 7,279        |   |   | $      | 4,724  |   |   | $ | 32,106 |   |
|                              |   |         |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |
| Assets as of December 31, 2009    |   | $            | 18,014 |   |   | $      | 5,105  |                |   | $      | 6,982        |   |   | $      | 4,814  |   |   | $ | 34,915 |   |
|                              |   |         |   |   |   |   |   |                |   |   |         |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)Reconciliation of assets: |   | September 30, 2010 |   |   | December 31, 2009 |   |
|------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| Assets from segments                           |   | $                  | 32,106 |   |              | $      | 34,915 |   |
| Less: Investment in subsidiaries               |   |               | (1,090 | )      |              |   | (1,080 | ) |
| Less: Inter-segment balances                   |   |               | (2,243 | )      |              |   | (3,187 | ) |
| Total                                          |   | $                  | 28,773 |   |              | $      | 30,648 |   |
|                                           |   |               |   |   |              |   |   |   |

| 6. | Derivative Financial Instruments and Risk Management |
|----|------------------------------------------------------|

----

| (Millions of dollars)                        |                                                   |   |                         |   |   |              |   |
|----------------------------------------------|--------------------------------------------------------|--------|------------------------------|--------|--------|-------------------|--------|
|                                         |                                                   |   | Asset (Liability) Fair Value |   |
|                                         | Consolidated Statements of Financial Position Location |   | September 30, 2010           |   |   | December 31, 2009 |   |
| Designated derivatives                       |                                                   |   |                         |   |   |              |   |
|    Interest rate contracts    | Other assets                                           |   | $                            | 307    |   |              | $      | 145 |   |
|    Interest rate contracts    | Accrued expenses                                       |   |                         | (26    | )      |              |   | (100 | ) |
|                                         |                                                   |   | $                            | 281    |   |              | $      | 45 |   |
| Undesignated derivatives                     |                                                   |   |                         |   |   |              |   |   |   |
|    Foreign exchange contracts | Other assets                                           |   | $                            | 35     |   |              | $      | 20 |   |
|    Foreign exchange contracts | Accrued expenses                                       |   |                         | (22    | )      |              |   | (18 | ) |
|    Interest rate contracts    | Other assets                                           |   |                         | -      |   |              |   | 2 |   |
|    Interest rate contracts    | Accrued expenses                                       |   |                         | (2     | )      |              |   | (6 | ) |
|                                         |                                                   |   | $                            | 11     |   |              | $      | (2 | ) |
|                                         |                                                   |   |                         |   |   |              |   |   |   |

----

| (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 $2  |   |   | (6     | ) |
|    (Gains) losses reclassified to earnings, net of tax of $14 |   |   | 28     |   |
| Balance as of September 30, 2010, net of tax of $9                           |   | $      | (19    | ) |
|                                                                         |   |   |   |   |

| (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 $9  |   |   | (22    | ) |
|    (Gains) losses reclassified to earnings, net of tax of $21 |   |   | 42     |   |
| Balance as of September 30, 2009, net of tax of $26                          |   | $      | (50    | ) |
|                                                                         |   |   |   |   |

| Fair Value Hedges       |
|-------------------------|
| (Millions of dollars)   |
|                    |   |   | Three Months EndedSeptember 30, 2010 |   | Three Months EndedSeptember 30, 2009 |
|                    | Classification |   | Gains (Losses)on Derivatives |   | Gains (Losses)on Borrowings |   | Gains (Losses)on Derivatives |   | Gains (Losses)on Borrowings |
| Interest rate contracts | Other income (expense) |   | $ | 63 |   |   | $ | (61) |   |   | $ | 74 |   |   | $ | (74) |   |
|                    |   |   | $ | 63 |   |   | $ | (61) |   |   | $ | 74 |   |   | $ | (74) |   |
|                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    |   |   | Nine Months EndedSeptember 30, 2010 |   | Nine Months EndedSeptember 30, 2009 |
| Interest rate contracts | Other income (expense) |   | $ | 204 |   |   | $ | (195) |   |   | $ | (146) |   |   | $ | 160 |   |
|                    |   |   | $ | 204 |   |   | $ | (195) |   |   | $ | (146) |   |   | $ | 160 |   |
|                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Cash Flow Hedges        |
|-------------------------|
| (Millions of dollars)   |
|                    |
|                    |   |   | Three Months Ended September 30, 2010 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (10) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |       - |   |   |   |   (2) |   |
|                    |   |   | $ | (10) |   |   | $ | (2) |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   |   |
|                    |   |   | Three Months Ended September 30, 2009 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (21) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |         - |   |   |   |       1 |   |
|                    |   |   | $ | (21) |   |   | $ | 1 |   |
|                    |   |   |   |   |
|                    |   |   | Nine Months Ended September 30, 2010 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (42) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |         - |   |   |   |     (1) |   |
|                    |   |   | $ | (42) |   |   | $ | (1) |   |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   |   |
|                    |   |   | Nine Months Ended September 30, 2009 |
|                    | Classification ofGains (Losses) |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts | Interest expense |   | $ | (63) |   |   | $ | - |   |
| Interest rate contracts | Other income (expense) |   |   |         - |   |   |   |       6 |   |
|                    |   |   | $ | (63) |   |   | $ | 6 |   |
|                    |   |   |   |   |

----

| Undesignated Derivatives   |                               |   |                                 |   |   |                                 |   |
|----------------------------|------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
| (Millions of dollars)      |                               |   |                                 |   |   |                                 |   |
|                       | Classification ofGains or (Losses) |   | Three Months EndedSeptember 30, 2010 |   |   | Three Months EndedSeptember 30, 2009 |   |
| Foreign exchange contracts | Other income (expense)             |   | $                                    | 12     |   |                                 | $      | (75 | ) |
| Interest rate contracts    | Other income (expense)             |   |                                 | 2      |   |                                 |   | 1 |   |
|                       |                               |   | $                                    | 14     |   |                                 | $      | (74 | ) |
|                       |                               |   |                                 |   |   |                                 |   |   |   |
|                       | Classification ofGains or (Losses) |   | Nine Months EndedSeptember 30, 2010  |   |   | Nine Months EndedSeptember 30, 2009  |   |
| Foreign exchange contracts | Other income (expense)             |   | $                                    | 23     |   |                                 | $      | (141 | ) |
| Interest rate contracts    | Other income (expense)             |   |                                 | 3      |   |                                 |   | 2 |   |
|                       |                               |   | $                                    | 26     |   |                                 | $      | (139 | ) |
|                       |                               |   |                                 |   |   |                                 |   |   |   |
|                       |                               |   |                                 |   |   |                                 |   |   |   |

| 7. | Guarantees |
|----|------------|

| (Millions of dollars)  |   | September 30,2010 |   |   | December 31,2009 |   |
|-----------------------------|--------|-------------------|--------|--------|------------------|--------|
| Customer guarantees         |   | $                 | 151    |   |             | $      | 157 |   |
| Limited indemnity           |   |              | 17     |   |             |   | 20 |   |
| Total guarantees            |   | $                 | 168    |   |             | $      | 177 |   |
|                        |   |              |   |   |             |   |   |   |

----

| 8. | Contingencies |
|----|---------------|

| 9. | Sales and Servicing of Finance Receivables |
|----|--------------------------------------------|

----

|                                                            |   | December 31, 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)                                                                 |   | Three MonthsEnded  |   |   | Nine MonthsEnded   |   |
|--------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
|                                                                                       |   | September 30, 2009 |   |   | September 30, 2009 |   |
| Total other-than-temporary impairment losses                                               |   | $                  | -      |   |               | $      | 46 |   |
| Portion of losses recognized in Accumulated other comprehensive income (loss) before taxes |   |               | 2      |   |               |   | (13 | ) |
| Net impairment losses recognized in earnings 1                                             |   | $                  | 2      |   |               | $      | 33 |   |
|                                                                                       |   |               |   |   |               |   |   |   |

----

| (Millions of dollars)                                                                |   | Three Months            |   |
|--------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                 |   | EndedSeptember 30, 2009 |   |
| Cumulative credit loss as of July 1, 2009                                            |   | $                       | 8      |   |
| Credit losses for which an other-than-temporary impairment was previously recognized |   |                    | 2      |   |
| Cumulative credit loss as of September 30, 2009                                      |   | $                       | 10     |   |
|                                                                                 |   |                    |   |   |

| (Millions of dollars)                                                                |   | Nine Months             |   |
|--------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                 |   | EndedSeptember 30, 2009 |   |
| Cumulative credit loss as of January 1, 2009                                         |   | $                       | -      |   |
| Credit losses for which an other-than-temporary impairment was previously recognized |   |                    | 10     |   |
| Cumulative credit loss as of September 30, 2009                                      |   | $                       | 10     |   |
|                                                                                 |   |                    |   |   |

----

| (Millions of dollars)                                    |   | For Nine Months EndedSeptember 30, |   |
|---------------------------------------------------------------|--------|------------------------------------|--------|
|                                                          |   | 2010                               |   |   | 2009 |   |
| Cash proceeds from sales of receivables to conduits           |   | $                                  | -      |   |   | $ | 887 |   |
| Cash flows received on the interests that continue to be held |   | $                                  | 5,762  |   |   | $ | 6,005 |   |
|                                                          |   |                               |   |   |   |   |   |   |

| 10. | Income Taxes |
|-----|--------------|

----

| ·   | The decrease in revenues was principally due to a $46 million impact from lower earning assets (finance receivables and operating leases at constant interest rates) and a $13 million unfavorable impact from lower interest rates on new and existing finance receivables, partially offset by a $24 million favorable change from returned or repossessed equipment. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Profit before income taxes was $89 million for the third quarter of 2010, compared to $80 million for the third quarter of 2009.  The increase was principally due to a $24 million favorable change from returned or repossessed equipment, an $8 million decrease in the provision for credit losses and a $6 million increase in other miscellaneous revenue items.  These increases in pre-tax profit were partially offset by a $17 million unfavorable impact from lower average earning assets and a $10 million increase in general, operating and administrative expense. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The provision for income taxes in the third quarter reflects an estimated annual effective tax rate of 24 percent, reduced by a benefit of $12 million related to a prior year.  The estimated annual tax rate of 24 percent is up from 20 percent in the third quarter of 2009 and 22 percent in the second quarter of 2010. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | New retail financing was $2.5 billion, an increase of $706 million, or 40 percent, from the third quarter of 2009.  The increase was primarily related to improvement in our North America, Europe and Asia-Pacific operating segments. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | At the end of the third quarter of 2010, past dues were 4.88 percent, down from 5.33 percent at the end of the second quarter and 5.54 percent at the end of 2009.  At the end of the third quarter of 2009, past dues were 5.79 percent.  The reduction in past dues from year-end is primarily due to the general improvement in global economic conditions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Bad debt write-offs, net of recoveries, were $78 million for the third quarter of 2010, up $13 million from the third quarter of 2009.  The increase in write-offs reflects the lingering effect the economic downturn has had on some of our customers, most notably U.S. and European customers in the housing and general construction industries.  Third-quarter year-to-date 2010 annualized losses were 1.03 percent of the average retail portfolio, compared to 0.90 percent for the same period in 2009 and 1.03 percent for the full-year 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | At the end of the third quarter of 2010, our allowance for credit losses was 1.61 percent of net finance receivables, decreasing from 1.64 percent on December 31, 2009, and 1.62 percent at the end of the third quarter of 2009.  At the end of the third quarter of 2010, the allowance for credit losses totaled $367 million, compared with $377 million on December 31, 2009, and $381 million at the end of the third quarter of 2009.  The decrease of $14 million in allowance for credit losses year over year reflected an $11 million decrease due to a reduction in the overall net finance receivable portfolio and a $3 million decrease associated with the lower allowance rate. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (Millions of dollars)                                               |   | Three Months Ended September 30, |   |
|--------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                     |   |  2010                       |   |   |  2009  |   |
| Finance receivable and operating lease fees (including late charges)     |   | $                                     | 20     |   |   | $ | 18 |   |
| Interest income on Notes Receivable from Caterpillar                     |   |                                  | 17     |   |   |   | 22 |   |
| Net gain/(loss) on returned or repossessed equipment                     |   |                                  | 4      |   |   |   | (20 | ) |
| Miscellaneous other revenue, net                                         |   |                                  | 2      |   |   |   | 5 |   |
| Service fee income on sold receivables                                   |   |                                  | -      |   |   |   | 2 |   |
| Gain on sales of receivables                                             |   |                                  | -      |   |   |   | 2 |   |
| Net loss related to retained interests in securitized retail receivables |   |                                  | -      |   |   |   | (5 | ) |
| Total Other revenue, net                                                 |   | $                                     | 43     |   |   | $ | 24 |   |
|                                                                     |   |                                  |   |   |   |   |   |   |

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| (Millions of dollars)                                                                 |   | Three Months Ended |   |
|---------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                  |   | September 30,      |   |
|                                                                                  |   |  2010    |   |   |  2009  |   |
| Net gain from interest rate derivatives                                               |   | $                  | 2      |   |   | $ | 2 |   |
|                                                                                  |   |               |   |   |   |   |   |   |
| Currency exchange gain/(loss)                                                         |   |               | (13    | ) |   |   | 65 |   |
| Net gain/(loss) on undesignated foreign exchange contracts (including forward points) |   |               | 12     |   |   |   | (75 | ) |
| Net currency exchange loss                                                            |   |               | (1     | ) |   |   | (10 | ) |
| Total Other income (expense)                                                          |   | $                  | 1      |   |   | $ | (8 | ) |
|                                                                                  |   |               |   |   |   |   |   |   |

----

| (Millions of dollars)                                               |   | Nine Months Ended September 30, |     |
|--------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                     |   |  2010                      |     |   |  2009  |   |
| Interest income on Note Receivable from Caterpillar                      |   | $                                    | 63       |   |   | $ | 70 |   |
| Finance receivable and operating lease fees (including late charges)     |   |                                 | 52       |   |   |   | 52 |   |
| Miscellaneous other revenue, net                                         |   |                                 | 8        |   |   |   | 17 |   |
| Service fee income on sold receivables                                   |   |                                 | 1        |   |   |   | 6 |   |
| Gain on sales of receivables                                             |   |                                 | -        |   |   |   | 12 |   |
| Net loss related to retained interests in securitized retail receivables |   |                                 | -        |   |   |   | (33 | ) |
| Net loss on returned or repossessed equipment                            |   |                                 |  (9 | ) |   |   |  (39 | ) |
| Total other revenues, net                                                |   | $                                    | 115      |   |   | $ | 85 |   |
|                                                                     |   |                                 |     |   |   |   |   |   |

----

| (Millions of dollars)                                                                 |   | Nine Months Ended |   |
|---------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                  |   | September 30,     |   |
|                                                                                  |   |  2010   |   |   |  2009  |   |
| Net gain from interest rate derivatives                                               |   | $                 | 11     |   |   | $ | 22 |   |
|                                                                                  |   |              |   |   |   |   |   |   |
| Currency exchange gain/(loss)                                                         |   |              | (30    | ) |   |   | 93 |   |
| Net gain/(loss) on undesignated foreign exchange contracts (including forward points) |   |              | 23     |   |   |   | (141 | ) |
| Net currency exchange loss                                                            |   |              | (7     | ) |   |   | (48 | ) |
| Total Other income (expense)                                                          |   | $                 | 4      |   |   | $ | (26 | ) |
|                                                                                  |   |              |   |   |   |   |   |   |

----

| (Millions of dollars)                                            |   | September 30, |   |   | December 31, |   |
|------------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|
|                                                             |   | 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                                            |   | $             | 124    |   |         | $      | 190 |   |
| Retail installment sale contracts                                |   |          | 96     |   |         |   | 178 |   |
| Operating leases                                                 |   |          | 44     |   |         |   | 90 |   |
| Retail notes receivable                                          |   |          | 8      |   |         |   | 19 |   |
| Other managed receivables/leases                                 |   | $             | 272    |   |         | $      | 477 |   |
|                                                             |   |          |   |   |         |   |   |   |
| Total off-balance sheet managed assets                           |   | $             | 272    |   |         | $      | 721 |   |
|                                                             |   |          |   |   |         |   |   |   |

----

| (Millions of dollars)                                           |   | Three Months Ended |    |   | Nine Months Ended |   |
|-----------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                            |   | September 30,      |    |   | September 30,     |   |
|                                                            |   | 2010               |    |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Balance at beginning of the period                              |   | $                  | 383     |   |              | $      | 378 |   |   | $ | 377 |   |   | $ | 395 |   |
| Adjustment to adopt consolidation of variable-interest entities |   |               | -       |   |              |   | - |   |   |   | 18 |   |   |   | - |   |
| Provision for credit losses                                     |   |               | 55      |   |              |   | 63 |   |   |   | 150 |   |   |   | 144 |   |
| Receivables written off                                         |   |               | (91     | )      |              |   | (72 | ) |   |   | (211 | ) |   |   | (184 | ) |
| Recoveries on receivables previously written off                |   |               | 13      |   |              |   | 7 |   |   |   | 35 |   |   |   | 17 |   |
| Foreign currency translation adjustment                         |   |               |  7 |   |              |   | 5 |   |   |   | (2 | ) |   |   | 9 |   |
| Balance at end of the period                                    |   | $                  | 367     |   |              | $      | 381 |   |   | $ | 367 |   |   | $ | 381 |   |
|                                                            |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions of dollars)                           |   | September 30,   2010   |   |   | December 31,2009  |   |
|------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------|--------|
| Medium-term notes, net of unamortized discount       |   | $                                               | 18,272 |   |                   | $      | 20,258 |   |
| Commercial paper, net of unamortized discount        |   |                                            | 2,284  |   |                   |   | 2,233 |   |
| Bank borrowings – long-term                    |   |                                            | 1,586  |   |                   |   | 1,265 |   |
| Variable denomination floating rate demand notes     |   |                                            | 629    |   |                   |   | 695 |   |
| Bank borrowings – short-term                   |   |                                            | 471    |   |                   |   | 782 |   |
| Notes payable to Caterpillar                         |   |                                            | 600    |   |                   |   | 26 |   |
| Secured borrowings                                   |   |                                            | 106    |   |                   |   | - |   |
| Short-term note, net of unamortized premium          |   |                                            | -      |   |                   |   | 11 |   |
|     Total outstanding borrowings |   | $                                               | 23,948 |   |                   | $      | 25,270 |   |
|                                                 |   |                                            |   |   |                   |   |   |   |

| (Millions of dollars) |   |   |   |
|-----------------------|--------|--------|--------|
| 2010                  |   | $      | 1,390  |   |
| 2011                  |   |   | 2,690  |   |
| 2012                  |   |   | 3,711  |   |
| 2013                  |   |   | 3,327  |   |
| 2014                  |   |   | 1,904  |   |
| Thereafter            |   |   | 5,250  |   |
| Total                 |   | $      | 18,272 |   |
|                  |   |   |   |   |

----

| ·   | The five-year facility of $1.62 billion expires in September 2012. |
|--------------------|-------------------------------------------------------------------------|

| ·   | In September 2010, we replaced the $2.98 billion five-year facility expiring in September 2011 with a four-year facility of $2.09 billion that expires in September 2014. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In September 2010, we renewed the 364-day facility. The amount was increased from $2.39 billion to $3.52 billion and expires in September 2011. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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, Commission File No. 001-11241). |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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  | Five-Year Credit Agreement, dated as of September 20, 2007 (2007 Five-Year Credit Agreement), among the Company, Caterpillar, Caterpillar Finance Corporation, certain financial institutions named therein, Citibank, N.A., The Bank of Tokyo-Mitsubishi UFJ Ltd., ABN AMRO Bank N.V., Bank of America, N.A., Barclays Bank PLC, J.P. Morgan Securities, Inc., Société Générale and Citigroup Global Markets Inc. (incorporated by reference from Exhibit 99.1 to the Company’s Current Report on Form 8-K, filed September 26, 2007).                                           |
| 10.6       | Japan Local Currency Addendum to the 2007 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 99.2 to the Company’s Current Report on Form 8-K, filed September 26, 2007).                                                                                                                                                                                                                                                 |
| 10.7       | Amendment No. 1 to Japan Local Currency Addendum to the 2007 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 January 26, 2009).                                                                                                                                                                                                                                |
| 10.8       | Amendment No. 1 to the 2007 Five-Year Credit Agreement among the Company, Caterpillar and Caterpillar Finance Corporation, the Banks and Japan Local Currency Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Citibank, N.A. (incorporated by reference from Exhibit 99.3 to the Company’s Current Report on Form 8-K, filed September 23, 2008).                                                                                                                                                                                                                                     |
| 10.9       | Amendment No. 2 to the 2007 Five-Year Credit Agreement among the Company, Caterpillar and Caterpillar Finance Corporation, the Banks and Japan Local Currency Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Citibank, N.A. (incorporated by reference from Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed January 26, 2009).                                                                                                                                                                                                                                       |
| 10.10      | Amendment No. 3 to the 2007 Five-Year Credit Agreement among the Company, Caterpillar and Caterpillar Finance Corporation, the Banks and Japan Local Currency Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Citibank, N.A. (incorporated by reference from Exhibit 99.4 to the Company’s Current Report on Form 8-K, filed September 23, 2009).                                                                                                                                                                                                                                     |
| 10.11      | Amendment No. 4 to the 2007 Five-Year Credit Agreement among the Company, Caterpillar and Caterpillar Finance Corporation, the Banks and Japan Local Currency Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Citibank, N.A. (incorporated by reference from Exhibit 99.7 to the Company’s Current Report on Form 8-K, filed September 21, 2010).                                                                                                                                                                                                                                     |
| 10.12      | 364-Day Credit Agreement dated September 21, 2010 (2010 364-Day Credit Agreement) among the Company, Caterpillar, Caterpillar International Finance Limited, Caterpillar Finance Corporation, certain financial institutions named therein, Citibank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Banc of America Securities LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. (incorporated by reference from Exhibit 99.1 to the Company’s Current Report on Form 8-K, filed September 21, 2010).                                                                                 |
| 10.13      | Local Currency Addendum to the 2010 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 21, 2010).                                                                                                                                                                                                                                                            |
| 10.14      | Japan Local Currency Addendum to the 2010 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 21, 2010).                                                                                                                                                                                                                                                   |
| 12         | Computation of Ratio of Profit to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 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.                                                                                                                                                                                                                                                                                                                                                                                              |

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| 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. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                | Caterpillar Financial Services Corporation                   |
|-----------------------------------------------------|--------------------------------------------------------------|
| (Registrant)                                        |                                                         |
|    Date:  November 4, 2010 | By:   /s/   Steven R. Elsesser |
|                                                | Steven R. Elsesser, Controller                               |

|    Date:  November 4, 2010 | By:  /s/   Kent M. Adams           |
|-----------------------------------------------------|--------------------------------------------------------|
|                                                | Kent M. Adams, President, Director and Chief Executive |
|                                                | Officer                                                |

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