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December 31, 2011, 2010 and 2009 (currencies in millions) 

## C. INVENTORIES 

Inventories include the following: 

<img src='content_image/172143.jpg'>

Inventories valued using the LIFO method comprised 45% and 38% of consolidated inventories before deducting the LIFO reserve at December 31, 2011 and 2010, respectively. During 2010, inventory quantities declined which provided a pretax favorable income effect from the liquidation of LIFO inventory of $15.0. 

## D. FINANCE AND OTHER RECEIVABLES 

Finance and other receivables include the following: 

<img src='content_image/172144.jpg'>

The net activity of sales-type finance leases, dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory. 

Annual minimum payments due on finance receivables are as follows: 

<img src='content_image/172145.jpg'>

Estimated residual values included with finance leases amounted to $209.4 in 2011 and $165.3 in 2010. Experience indicates the majority of dealer wholesale financing will be repaid within one year. In addition, repayment experience indicates that some loans, leases and other finance receivables will be paid prior to contract maturity, while others may be extended or modified. 

