38  LIQUIDITY AND CAPITAL RESOURCES: 2011 Compared to 2010: Operating activities:  Cash provided by operations increased $41.2 million to $1.59 billion in 2011. The higher  operating cash flow was primarily due to higher net income of $584.7 million and $363.7 million from higher  purchases of goods and services in accounts payable and accrued expenses greater than payments compared to 2010.  In addition, $141.0 million of additional operating cash flow was provided from higher current income tax  provisions compared to payments in 2011 as opposed to a decrease in current income tax provisions compared to  payments in 2010. Higher operating cash flow of $83.6 million was provided by higher warranty expenses than  payments in 2011, reflecting increased truck production. These were partially offset by $366.1 million lower amount  of cash provided from Truck segment trade receivables as billings exceeded collections reflecting normal trade terms  on higher truck sales. In addition, $758.4 million of operating cash flow was used for increased Financial Services  segment wholesale receivables, sales-type finance leases and dealer direct loans in 2011 reflecting higher truck sales  compared to 2010. Investing activities : Cash used in investing activities of $2.42 billion in 2011 increased $1.95 billion from the $467.1  million used in 2010. In 2011, there were higher new loan and lease originations of $942.7 million in the Financial  Services segment due to increased retail sales from higher new truck demand. In addition, there were higher  acquisitions of equipment on operating leases of $591.2 million from higher new truck demand. Net purchases of  marketable securities were $238.1 million higher as the Company increased returns on available cash by investing in  marketable debt securities with higher yields. Proceeds from asset disposals were $53.1 million lower in 2011,  reflecting fewer used truck unit sales. Consolidated pretax return on revenues was 6.4% in 2010 compared to 2.2% in 2009. The increase was primarily  due to higher returns in foreign operations. Foreign income before income taxes was $474.0 million in 2010  compared to $95.9 million in 2009. The ratio of foreign income before tax to revenues was 7.8% in 2010 compared  to 2.1% in 2009. The improvement was primarily due to a higher return on revenues in foreign truck operations. The Company’s total cash and marketable debt securities increased $525.5 million at December 31, 2011 primarily from  an increase in marketable debt securities of $459.6 million.  The change in cash and cash equivalents is summarized below: ($ in millions) At December 31, 2011  2010 2009 Cash and cash equivalents  $2,106.7  $2,040.8 $1,912.0 Marketable debt securities 910.1  450.5 219.5 $3,016.8 $2,491.3  $2,131.5 ($ in millions) Year Ended December 31, 2011  2010 2009 Operating Activities: Net Income  $1,042.3  $ 457.6 $ 111.9 Net income items not affecting cash  882.5 678.2 697.7 Changes in operating assets and liabilities, net (332.2)  415.6 563.7 Net cash provided by operating activities   1,592.6  1,551.4  1,373.3 Net cash (used in) provided by investing activities   (2,419.0)   (467.1) 310.6 Net cash provided by (used in) financing activities  946.1 (960.4) (1,816.2) Effect of exchange rate changes on cash  ( 53.8)  4.9 89.1 Net increase (decrease) in cash and cash equivalents  65.9 128.8 (43.2) Cash and cash equivalents at beginning of the year  2,040.8   1,912.0  1,955.2 Cash and cash equivalents at end of the year  $2,106.7 $2,040.8  $1,912.0