NOTES TO CONSOLIDATED F I NANCI AL STATEMENTS  December 31, 2011, 2010 and 2009 (currencies in millions) Truck and Other long-term debt at December 31, 2011 and 2010, consisted of $150.0 of notes with an effective  interest rate of 6.9% which mature in 2014.  Financial Services borrowings include the following: The term notes of $2,595.5 and $2,730.8 at December 31, 2011 and 2010 include an increase in fair value of $7.1  and $9.6, respectively, for notes designated as fair value hedges. The effective rate is the weighted average rate as of  December 31, 2011 and 2010 and includes the effects of interest rate contracts.  The annual maturities of the financial services borrowings are as follows: Interest paid on borrowings was $192.1, $230.2 and $267.6 in 2011, 2010 and 2009, respectively. For the years ended  December 31, 2011, 2010 and 2009, the Company capitalized interest on borrowings of $10.3, $10.3 and $2.3,  respectively, in Truck and Other. The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in  the public markets, and to a lesser extent, bank loans. The medium-term notes are issued by PACCAR Inc, PACCAR  Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico.  In December 2011, PACCAR Inc filed a shelf registration under the Securities Act of 1933. The current registration  expires in the fourth quarter of 2014 and does not limit the principal amount of debt securities that may be issued  during the period. The total amount of medium-term notes outstanding for PACCAR Inc as of December 31, 2011  is $870.0.  In November 2009, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of  1933. The total amount of medium-term notes outstanding for PFC as of December 31, 2011 was $1,350.0. The  registration expires in the fourth quarter of 2012 and does not limit the principal amount of debt securities that  may be issued during the period.  At December 31, 2011, PACCAR’s European finance subsidiary, PACCAR Financial Europe, had  € 1,100.0 available  for issuance under a  € 1,500.0 medium-term note program registered with the London Stock Exchange. The  program was renewed in the second quarter of 2011 and is renewable annually through the filing of a new  prospectus. 2011 2010 EFFECTIVE EFFECTIVE At December 31, RATE BORROWINGS RATE BORROWINGS Commercial paper  1.3% $3,673.6 2.2%  $2,126.4 Medium-term bank loans  6.9% 236.3 7.8% 245.3 3,909.9  2,371.7 Term notes  3.4% 2,595.5 4.6% 2,730.8 2.3% $6,505.4 3.8%  $5,102.5 COMMERCIAL BANK TERM Beginning January 1, 2012 PAPER LOANS NOTES TOTAL 2012  $3,673.6  $  45.6  $ 620.0  $4,339.2 2013  17.2 550.0 567.2 2014  173.5 1,288.8 1,462.3 2015  129.6 129.6 $3,673.6  $ 236.3  $2,588.4  $6,498.3 I. BORROWINGS AND CREDIT ARRANGEMENTS