----

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

----

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

----

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

----

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

----

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

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

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

|         |                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Retail finance revenue on finance leases and installment sale contracts is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance.  Revenue on retail notes is recognized based on the daily balance of retail receivables outstanding and the applicable interest rate. |

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | Operating lease revenue is recorded on a straight-line basis in the period earned over the life of the contract. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Wholesale revenue on installment sale contracts and finance leases related to financing dealer inventory and rental fleets is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance.  Revenue on wholesale notes is recognized based on the daily balance of wholesale receivables outstanding and the applicable effective interest rate. |

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

----

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

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

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

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

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

----

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

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

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

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

----

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

----

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

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

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

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

----

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

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

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

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

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

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

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

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

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

----

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

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                          |   |   |   |   |   |   |   |   |
|                                                           |   | Year EndedDecember 31, 2011 |   | Year EndedDecember 31, 2010 |
| Impaired Loans and Finance Leases With NoAllowance Recorded(1) |   | AverageRecordedInvestment |   | InterestIncomeRecognized |   | AverageRecordedInvestment |   | InterestIncomeRecognized |
| Customer                                                       |   |   |   |   |   |   |   |   |
| North America                                                  |   | $ | 90 |  |   | $ | 4 |  |   | $ | 39 |  |   | $ | 2 |  |
| Europe                                                         |   | 5 |  |   | — |  |   | 7 |  |   | — |  |
| Asia Pacific                                                   |   | 13 |  |   | 1 |  |   | 9 |  |   | — |  |
| Latin America                                                  |   | 9 |  |   | 1 |  |   | 5 |  |   | — |  |
| Global Power Finance                                           |   | 212 |  |   | 6 |  |   | 92 |  |   | — |  |
| Total                                                          |   | $ | 329 |  |   | $ | 12 |  |   | $ | 152 |  |   | $ | 2 |  |
|                                                           |   |   |   |   |   |   |   |   |
| Impaired Loans and Finance Leases With AnAllowance Recorded    |   |   |  |   |   |  |   |   |  |   |   |  |
| Customer                                                       |   |   |  |   |   |  |   |   |  |   |   |  |
| North America                                                  |   | $ | 142 |  |   | $ | 5 |  |   | $ | 271 |  |   | $ | 11 |  |
| Europe                                                         |   | 50 |  |   | 2 |  |   | 85 |  |   | 4 |  |
| Asia Pacific                                                   |   | 23 |  |   | 1 |  |   | 40 |  |   | 3 |  |
| Latin America                                                  |   | 39 |  |   | 2 |  |   | 39 |  |   | 3 |  |
| Global Power Finance                                           |   | 83 |  |   | — |  |   | 17 |  |   | — |  |
| Total                                                          |   | $ | 337 |  |   | $ | 10 |  |   | $ | 452 |  |   | $ | 21 |  |
|                                                           |   |   |   |   |   |   |   |   |
| Total Impaired Loans and Finance Leases                        |   |   |  |   |   |  |   |   |  |   |   |  |
| Customer                                                       |   |   |  |   |   |  |   |   |  |   |   |  |
| North America                                                  |   | $ | 232 |  |   | $ | 9 |  |   | $ | 310 |  |   | $ | 13 |  |
| Europe                                                         |   | 55 |  |   | 2 |  |   | 92 |  |   | 4 |  |
| Asia Pacific                                                   |   | 36 |  |   | 2 |  |   | 49 |  |   | 3 |  |
| Latin America                                                  |   | 48 |  |   | 3 |  |   | 44 |  |   | 3 |  |
| Global Power Finance                                           |   | 295 |  |   | 6 |  |   | 109 |  |   | — |  |
| Total                                                          |   | $ | 666 |  |   | $ | 22 |  |   | $ | 604 |  |   | $ | 23 |  |
|                                                           |   |   |   |   |   |   |   |   |

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

----

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

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

----

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

----

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

----

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

----

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

----

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

----

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

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

----

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

----

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

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

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

----

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

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

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

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

----

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

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

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

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

----

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

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

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

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

----

----

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

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

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

----

----

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

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

----

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

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

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

----

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

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

----

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

----

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

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

----

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

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

----

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

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

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

----

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

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

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

----

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

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

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

----

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

----

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

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

----

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

----

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

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

----

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

|         |                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------|
| • | North America: We have offices in the United States and Canada that serve local dealers and customers. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Europe and Caterpillar Power Finance: This segment includes our offices that serve dealers and customers in Europe, Africa, Middle East and the Commonwealth of Independent States.  This segment also includes Caterpillar Power Finance (CPF), which finances marine vessels with Caterpillar engines worldwide and also provides debt financing for Caterpillar electrical power generation, gas compression and co-generation systems, as well as non-Caterpillar equipment that is powered by these systems worldwide.  |

|         |                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Asia/Pacific: This segment includes offices in Australia, China, Japan, South Korea and Southeast Asia that serve local dealers and customers.   |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Latin America: We have offices in Brazil, Mexico and Chile that serve local dealers and customers in Central and South America. |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | Mining:  This segment includes large mining customers worldwide.  This segment also provides project financing in various countries.  |

----

|         |                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Unallocated:  This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization.  Also included are the consolidated results of the special purpose corporation (see Note 9 for additional information) and other miscellaneous items. |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | Timing:   Timing differences in the recognition of costs between segment reporting and consolidated external reporting. |

|         |                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------|
| • | Methodology:  Methodology differences between our segment reporting and our external reporting are as follows: |

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| ◦ | Segment assets include other managed assets for which we typically maintain servicing responsibilities. |

|         |                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Interest expense includes realized forward points on foreign currency forward contracts, with the mark-to-market elements of the forward exchange contracts included as a methodology difference. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| ◦ | The profit attributable to noncontrolling interests is considered a component of segment profit. |

| Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31, |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Millions of dollars) 2011                                                                                   | Revenues |   | SegmentProfit |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | SegmentAssets atDecember 31,2011 |   | Capitalexpenditures |
| North America                                                                                                     | $ | 966 |  |   | $ | 221 |  |   | $ | 314 |  |   | $ | 276 |  |   | $ | 34 |  |   | $ | 11,177 |  |   | $ | 530 |  |
| Europe and CPF                                                                                                    | 502 |  |   | 53 |  |   | 148 |  |   | 89 |  |   | 105 |  |   | 6,601 |  |   | 118 |  |
| Asia/Pacific                                                                                                      | 333 |  |   | 111 |  |   | 130 |  |   | 16 |  |   | 28 |  |   | 4,557 |  |   | 42 |  |
| Latin America                                                                                                     | 350 |  |   | 110 |  |   | 128 |  |   | 47 |  |   | 17 |  |   | 3,947 |  |   | 175 |  |
| Mining                                                                                                            | 446 |  |   | 76 |  |   | 87 |  |   | 260 |  |   | 3 |  |   | 2,645 |  |   | 321 |  |
| Total Segments                                                                                                    | 2,597 |  |   | 571 |  |   | 807 |  |   | 688 |  |   | 187 |  |   | 28,927 |  |   | 1,186 |  |
| Unallocated                                                                                                       | 70 |  |   | (55 | ) |   | 22 |  |   | 2 |  |   | 2 |  |   | 1,350 |  |   | 3 |  |
| Timing                                                                                                            | (22 | ) |   | (6 | ) |   | 12 |  |   | — |  |   | (13 | ) |   | 67 |  |   | 1 |  |
| Methodology                                                                                                       | — |  |   | (6 | ) |   | (14 | ) |   | — |  |   | — |  |   | 15 |  |   | — |  |
| Inter-segment Eliminations                                                                                        | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (247 | ) |   | — |  |
| Total                                                                                                             | $ | 2,645 |  |   | $ | 504 |  |   | $ | 827 |  |   | $ | 690 |  |   | $ | 176 |  |   | $ | 30,112 |  |   | $ | 1,190 |  |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars) 2010 | Revenues |   | SegmentProfit |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | SegmentAssets atDecember 31,2010 |   | Capitalexpenditures |
| North America                   | $ | 985 |  |   | $ | 46 |  |   | $ | 380 |  |   | $ | 302 |  |   | $ | 120 |  |   | $ | 11,111 |  |   | $ | 512 |  |
| Europe and CPF                  | 498 |  |   | 79 |  |   | 182 |  |   | 92 |  |   | 50 |  |   | 6,884 |  |   | 120 |  |
| Asia/Pacific                    | 441 |  |   | 96 |  |   | 138 |  |   | 133 |  |   | 25 |  |   | 4,315 |  |   | 21 |  |
| Latin America                   | 297 |  |   | 101 |  |   | 121 |  |   | 29 |  |   | 9 |  |   | 3,391 |  |   | 109 |  |
| Mining                          | 252 |  |   | 48 |  |   | 62 |  |   | 131 |  |   | (3 | ) |   | 1,523 |  |   | 156 |  |
| Total Segments                  | 2,473 |  |   | 370 |  |   | 883 |  |   | 687 |  |   | 201 |  |   | 27,224 |  |   | 918 |  |
| Unallocated                     | 104 |  |   | (19 | ) |   | 28 |  |   | 3 |  |   | — |  |   | 1,617 |  |   | 40 |  |
| Timing                          | (25 | ) |   | (31 | ) |   | 14 |  |   | — |  |   | 12 |  |   | 113 |  |   | 1 |  |
| Methodology                     | — |  |   | 9 |  |   | (8 | ) |   | — |  |   | — |  |   | (21 | ) |   | — |  |
| Inter-segment Eliminations      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (181 | ) |   | — |  |
| Total                           | $ | 2,552 |  |   | $ | 329 |  |   | $ | 917 |  |   | $ | 690 |  |   | $ | 213 |  |   | $ | 28,752 |  |   | $ | 959 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  2009                      | Revenues |   | SegmentProfit |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | SegmentAssets atDecember 31,2009 |   | Capitalexpenditures |
| North America                   | $ | 1,080 |  |   | $ | 31 |  |   | $ | 429 |  |   | $ | 347 |  |   | $ | 139 |  |   | $ | 11,727 |  |   | $ | 475 |  |
| Europe and CPF                  | 591 |  |   | 73 |  |   | 229 |  |   | 106 |  |   | 73 |  |   | 8,176 |  |   | 97 |  |
| Asia/Pacific                    | 412 |  |   | 101 |  |   | 143 |  |   | 121 |  |   | (10 | ) |   | 3,870 |  |   | 5 |  |
| Latin America                   | 276 |  |   | 85 |  |   | 136 |  |   | 22 |  |   | 5 |  |   | 3,101 |  |   | 78 |  |
| Mining                          | 233 |  |   | 29 |  |   | 68 |  |   | 114 |  |   | 10 |  |   | 1,842 |  |   | 256 |  |
| Total Segments                  | 2,592 |  |   | 319 |  |   | 1,005 |  |   | 710 |  |   | 217 |  |   | 28,716 |  |   | 911 |  |
| Unallocated                     | 144 |  |   | (16 | ) |   | 72 |  |   | 3 |  |   | 12 |  |   | 2,801 |  |   | 63 |  |
| Timing                          | (22 | ) |   | 16 |  |   | — |  |   | — |  |   | 2 |  |   | 67 |  |   | 2 |  |
| Methodology                     | — |  |   | 1 |  |   | (29 | ) |   | — |  |   | — |  |   | (577 | ) |   | — |  |
| Inter-segment Eliminations      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (359 | ) |   | — |  |
| Total                           | $ | 2,714 |  |   | $ | 320 |  |   | $ | 1,048 |  |   | $ | 713 |  |   | $ | 231 |  |   | $ | 30,648 |  |   | $ | 976 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

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

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