C ONSOLIDATED S TATEMENTS OF CASH FLOWS  Year Ended December 31,  2011 2010  2009 (millions) OPERATING ACTIVITIES:  Net income $1,042.3 $ 457.6  $ 111.9 Adjustments to reconcile net income to cash provided by operations: Depreciation and amortization: Property, plant and equipment  196.5 189.9 188.0 Equipment on operating leases and other  477.3 433.3 463.7 Provision for losses on financial services receivables  41.4 61.0 90.8 Curtailment gain  (66.0) Deferred taxes  224.1 46.3 159.7 Other, net  28.4 11.6 38.1 Pension and post-retirement contributions  (85.2) (63.9) (176.6) Change in operating assets and liabilities: (Increase) decrease in assets other than cash and cash equivalents: Receivables: Trade and other  (408.4) (42.3) 163.2 Wholesale receivables on new trucks  (551.1) (1.1) 641.8 Sales-type finance leases and dealer direct loans on new trucks ( 141.3) 67.1 81.6 Inventories  (187.1) 96.6 53.4 Other assets, net  28.1 (48.2) 8.1 Increase (decrease) in liabilities: Accounts payable and accrued expenses  585.0 221.3 (271.8) Residual value guarantees and deferred revenues  231.8 79.8 48.2 Other liabilities, net  110.8 42.4 (160.8) Net Cash Provided by Operating Activities 1,592.6 1,551.4 1,373.3 INVESTING ACTIVITIES: Retail loans and direct financing leases originated  (2,731.9)  (1,789.2)  (1,282.2) Collections on retail loans and direct financing leases  2,121.0 2,039.3 2,083.0 Net (increase) decrease in wholesale receivables on used equipment (18.1) 8.2 3.5 Marketable securities purchases  (1,614.2) (757.5) (288.3) Marketable securities sales and maturities  1,142.4 523.8 245.5 Payments for property, plant and equipment  (340.7) (168.4) (127.7) Acquisition of equipment for operating leases  (1,306.6) (715.4) (843.3) Proceeds from asset disposals  339.0 392.1 520.1 Other, net  (9.9) Net Cash (Used in) Provided by Investing Activities (2,419.0) (467.1) 310.6 FINANCING ACTIVITIES: Cash dividends paid  (217.4) (251.7) (232.1) Purchase of treasury stock  (337.6) Stock compensation transactions  10.9 22.0 17.6 Net increase (decrease) in commercial paper and short-term bank loans 1,642.6 (548.1) (789.8) Proceeds from long-term debt  1,165.5 707.0 1,373.0 Payments on long-term debt  (1,317.9) (889.6)  (2,184.9) 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 year  2,040.8 1,912.0 1,955.2 Cash and Cash Equivalents at end of year $2,106.7 $2,040.8  $1,912.0 See notes to consolidated financial statements. 