NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2011, 2010 and 2009 (currencies in millions) A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: U.S. income taxes are not provided on the undistributed earnings of the Company’s foreign subsidiaries that are  considered to be indefinitely reinvested. At December 31, 2011, the amount of undistributed earnings which are  considered to be indefinitely reinvested is $3,374.9. It is not practicable to estimate the amount of unrecognized  U.S. taxes on these earnings. Included in domestic taxable income for 2011, 2010 and 2009 are $311.0, $169.0 and $31.4 of foreign earnings,  respectively, which are not indefinitely reinvested, for which domestic taxes of $28.5, $16.5 and $3.7, respectively,  were provided as the difference between the domestic and foreign rate on those earnings. At December 31, 2011, the Company had net operating loss carryforwards of $280.5, of which $195.1 were in  foreign subsidiaries and $85.4 were in the U.S. The related deferred tax asset was $58.6. The carryforward periods  range from five years to indefinite, subject to certain limitations under applicable laws. At December 31, 2011, the  Company has U.S. tax credit carryforwards of $15.8, most of which expire in 2020. The future tax benefits of net  operating loss and credit carryforwards are evaluated on a regular basis, including a review of historical and  projected operating results. The tax effects of temporary differences representing deferred tax assets and liabilities are as follows:  2011  2010  2009 Statutory rate 35.0% 35.0% 35.0% Effect of: Qualified dividends to defined contribution plan  (.6) (.7) (2.3) Research and development credit (.3) (.5) (2.1) Tax on foreign earnings  (3.3) (3.9) .8 Tax contingencies  (.6) (.8) 2.2 Mexican tax law change 6.5 Other, net  .6 1.6 (4.0) 30.8% 30.7%  36.1% At December 31, 2011 2010 Assets: Accrued expenses  $ 138.6 $ 112.8 Postretirement benefit plans  94.1 15.8 Net operating loss carryforwards  58.6 68.2 Allowance for losses on receivables  50.1 47.3 Tax credit carryforwards  15.8 57.5 Other  89.1 80.9 446.3 382.5 Valuation allowance  (16.4) (12.4) 429.9 370.1 Liabilities: Financial Services leasing depreciation  (721.8) (532.6) Depreciation and amortization  (161.3) (162.1) Other  (12.1) (4.7) (895.2) (699.4) Net deferred tax liability  $(465.3) $(329.3)