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

Defined Contribution Plans:  The Company has certain defined contribution benefit plans whereby it generally matches employee contributions up to 5% of base wages. The largest plan is in the U.S. where participants are non- union employees. The Company match in the U.S. was 5%, 3% and 1% in 2011, 2010 and 2009, respectively. Other plans are located in Australia, Canada, the Netherlands and Belgium. Expenses for these plans were $29.3, $23.0 and $16.8 in 2011, 2010 and 2009, respectively. 

Postretirement Medical and Life Insurance Plans: During the second quarter of 2009, the Company discontinued subsidizing postretirement medical costs for the majority of its U.S. employees and recognized a curtailment gain of $47.7. The Company also recognized a curtailment gain of $18.3 in the third quarter of 2009 for the discontinuation of postretirement healthcare related to the permanent closure of the Peterbilt facility in Madison, Tennessee. The unfunded amount at December 31, 2011 and 2010 and postretirement expense for the years ended December 31, 2011, 2010 and 2009 were not significant. 

## M. INCOME TAXES 

The Company’s tax rate is based on income and statutory tax rates in the various jurisdictions in which the Company operates. Tax law requires certain items to be included in the Company’s tax returns at different times than the items reflected in the Company’s financial statements. As a result, the Company’s annual tax rate reflected in its financial statements is different than that reported in its tax returns. Some of these differences are permanent, such as expenses that are not deductible in the Company’s tax return, and some differences reverse over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities. The Company establishes valuation allowances for its deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 

The components of the Company’s income before income taxes include the following: 

<img src='content_image/155404.jpg'>

The components of the Company’s provision for income taxes include the following: 

<img src='content_image/155405.jpg'>

Tax benefits recognized for net operating loss carryforwards were $14.2, $9.0 and $27.8 for the years ended 2011, 2010 and 2009, respectively. 

