-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CAivWns44y6l8UOTfrR1EdaaZYlvze04J7ZlmgVKkZm4L8ClqS/dsWzUedAKxjUn T8n9XS1irvDMJQl75wGIxA== 0000950131-97-004218.txt : 19970701 0000950131-97-004218.hdr.sgml : 19970701 ACCESSION NUMBER: 0000950131-97-004218 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970630 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CATERPILLAR INC CENTRAL INDEX KEY: 0000018230 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION MACHINERY & EQUIP [3531] IRS NUMBER: 370602744 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405/A SEC ACT: SEC FILE NUMBER: 001-00768 FILM NUMBER: 97632588 BUSINESS ADDRESS: STREET 1: 100 NE ADAMS ST CITY: PEORIA STATE: IL ZIP: 61629-7310 BUSINESS PHONE: 3096751000 FORMER COMPANY: FORMER CONFORMED NAME: CATERPILLAR TRACTOR CO DATE OF NAME CHANGE: 19860623 10-K405/A 1 SAVINGS & INVESTMENT\TAX DEF SAVINGS PLANS ON 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [Fee Required] For the Fiscal Year Ended December 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] For the transition period from _____ to _____ Commission File Number 1-768 SAVINGS AND INVESTMENT PLAN (Full title of the Plan) CATERPILLAR INC. (Name of issuer of the securities held pursuant to the Plan) 100 NE ADAMS STREET, PEORIA, ILLINOIS 61629 (Address of principal executive offices) REQUIRED INFORMATION Item 1. The audited statement of net assets available for plan benefits as of the end of the latest two fiscal years of the Plan is attached hereto as Exhibit A. Item 2. The audited statement of changes in net assets available for plan benefits for each of the latest two fiscal years of the Plan is attached hereto as Exhibit B. Item 3. The statements required by Items 1 and 2 have been prepared in accordance with the applicable financial reporting requirements of ERISA. Item 4. The Consent of Independent Accountants is attached hereto as Exhibit C. Solar Turbines Incorporated Savings and Investment Plan Financial Statements December 31, 1996 and 1995 REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- May 12, 1997 To the Participants and Plan Administrator of the Solar Turbines Incorporated Savings and Investment Plan In our opinion, the accompanying statements of net assets available for plan benefits of the Solar Turbines Incorporated Savings and Investment Plan and the related statements of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for plan benefits at December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in schedules I and II is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. The Fund Information in the statement of net assets available for plan benefits and the statement of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. Schedules I and II and the Fund Information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Price Waterhouse LLP Peoria, Illinois EXHIBIT A --------- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1996 ----------------- (Dollars in 000's)
Fund Information --------------------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds -------------------------------------------------------------------------------- Caterpillar Common Stable Self- Stock Principal Short-term Money Inter- Asset Fixed Small Loan Directed Fund Fund Government Market Value national Growth Allocation Income Cap Fund Fund Total ---- ---- ---------- ------ ----- -------- ------ ---------- ------ --- ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $31 $ 31 Investments in Master Trust Net Assets $3,996 $2,938 $443 $1,717 $2,514 $896 $3,201 $420 $217 $130 $1,143 $17,615 ------ ------ ---- ------ ------ ---- ------ ---- ---- ---- ------ --- ------- Total Net Assets $3,996 $2,938 $443 $1,717 $2,514 $896 $3,201 $420 $217 $130 $1,143 $31 $17,646 ====== ====== ==== ====== ====== ==== ====== ==== ==== ==== ====== === =======
(See notes to financial statements) -2- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1995 ----------------- (Dollars in 000's)
Fund Information ------------------------------------------------------------------------------------------------------------ Preferred Group of Mutual Funds ----------------------------------------------------------------- Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Short-term Money Inter- Asset Fixed Loan Fund Fund Fund Government Market Value national Growth Allocation Income Fund Total ---- ---- ---- ---------- ------ ----- -------- ------ ---------- ------ ---- ----- Investments, at fair value (Notes 2 and 4): Investment in Master Trust Net Assets $ 2,986 $ _ $ 3,025 $ 408 $1,276 $1,628 $ 716 $2,642 $ 386 $ 216 $950 $14,233 =========== ========== ========= ========== ====== ====== ======== ====== ========== ====== ==== =======
(See notes to financial statements) -3- EXHIBIT B SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND ------------------------------------------------------------------------ INFORMATION ----------- DECEMBER 31, 1996 ----------------- (Dollars in 000's)
Fund Information -------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ---------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Inter- Fund Fund Government Market Value national Growth ---- ---- ---------- ------ ----- -------- ------ Participant contributions $ 490 $ 376 $ 54 $ 238 $ 292 $ 174 $ 493 ------ ------ ---- ------ ------ ----- ------ Plan interest in net investment gain of Master Trust (Note 4) 964 117 20 74 453 122 512 ------ ------ ---- ------ ------ ----- ------ Withdrawals (427) (306) (36) (36) (116) (25) (176) Transfers (to)/from other plans, net 130 (1) (6) (24) (9) (25) Interfund transfers, net (147) (274) (2) 171 281 (82) (245) ------- ------ ---- ------ ------ ----- ------ Withdrawals and transfers, net (444) (580) (39) 129 141 (116) (446) ------- ------ ---- ------ ------ ----- ------ Increase (decrease) in net assets 1,010 (87) 35 441 886 180 559 Net assets: Beginning of year 2,986 3,025 408 1,276 1,628 716 2,642 ------- ------ ---- ------ ------ ----- ------ End of year $3,996 $2,938 $443 $1,717 $2,514 $ 896 $3,201 ====== ====== ==== ====== ====== ===== ======
Preferred Group of Mutual Funds --------------------------------- Self- Asset Fixed Small Loan Directed Allocation Income Cap Fund Fund Total ---------- ------ ----- ---- ---- ----- Participant contributions $ 74 $ 42 $ 16 $ $ $ 2,249 ----- ---- ---- ------ ---- ------- Plan interest in net investment gain of Master Trust (Note 4) 60 7 10 81 2,420 ------ ---- ---- ------ ---- ------- Withdrawals (100) (7) (38) (1,267) Transfers (to)/from other plans, net (13) (11) (30) 11 Interfund transfers, net 13 (30) 104 180 31 ----- ---- ---- ------ ---- ------- Withdrawals and transfers, net (100) (48) 104 112 31 (1,256) ----- ---- ---- ------ ---- ------- Increase (decrease) in net assets 34 1 130 193 31 3,413 Net assets: Beginning of year 386 216 950 14,233 ----- ---- ---- ------ ---- ------- End of year $ 420 $217 $130 $1,143 $31 $17,646 ===== ==== ==== ====== ==== =======
(See notes to financial statements) -4- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND ------------------------------------------------------------------------ INFORMATION ----------- FOR THE YEAR ENDED DECEMBER 31, 1995 ------------------------------------ (Dollars in 000's)
Fund Information ----------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------- Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Short-term Money Fund Fund Fund Government Market Value International ----------- ---------- --------- ---------- ------ ----- ------------- Participant contributions $ 601 $ $ 465 $ 79 $ 210 $ 206 $ 205 ------- ------- ------ ---- ------ ------ ----- Plan interest in net investment gain of Master Trust (Note 4) 173 249 34 71 382 65 ------- ------- ------ ---- ------ ------ ----- Withdrawals (97) (155) (17) (104) (32) (15) Transfers (to)/from other plans, net 27 (99) 3 (5) (23) (10) Interfund transfers, net 487 (883) 294 (73) (95) 166 (193) ------- ------- ------ ---- ------ ------ ----- Withdrawals and trans- fers, net 417 (883) 40 (87) (204) 111 (218) ------- ------- ------ ---- ------ ------ ----- Increase (decrease) in net assets 1,191 (883) 754 26 77 699 52 Net assets: Beginning of year 1,795 883 2,271 382 1,199 929 664 ------- ------- ------ ---- ------ ------ ----- End of year $2,986 $ - $3,025 $408 $1,276 $1,628 $ 716 ====== ======= ====== ==== ====== ====== =====
Preferred Group of Mutual Funds ------------------------------- Asset Fixed Loan Growth Allocation Income Fund Total ------ ---------- ------ ---- ----- Participant contributions $ 441 $ 59 $ 45 $ $ 2,311 ------ ---- ---- ---- ------- Plan interest in net investment gain of Master Trust (Note 4) 514 76 23 60 1,647 ------ ---- ---- ---- ------- Withdrawals (144) (11) (10) (9) (594) Transfers (to)/from other plans, net (14) (4) 2 (7) (130) Interfund transfers, net 29 87 25 156 ------ ---- ---- ---- ------- Withdrawals and trans- fers, net (129) 72 17 140 (724) ------ ---- ---- ---- ------- Increase (decrease) in net assets 826 207 85 200 3,234 Net assets: Beginning of year 1,816 179 131 750 10,999 ------ ---- ---- ---- ------- End of year $2,642 $386 $216 $950 $14,233 ====== ==== ==== ==== =======
(See notes to financial statements) -5- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- NOTE 1 - PLAN DESCRIPTION: - -------------------------- The following description of the Solar Turbines Incorporated Savings and Investment Plan (the Plan) provides only general information. Employees should refer to the Plan agreement for a more complete description of the Plan's provisions. General - ------- The Plan is a defined contribution plan established by Solar Turbines Incorporated (the Company) to enable eligible employees of the Company and its subsidiaries (the employers) to accumulate funds. Participation - ------------- Hourly employees of the Company who meet certain age, service and citizenship or residency requirements are eligible to participate in the Plan. Participation commences upon an eligible employee's filing of an application with the Company. Participating eligible employees (the participants) may elect to defer a portion of their compensation until retirement. Participant accounts - -------------------- Accounts are maintained separately for each participant. The participant's separate account is credited with the Participant's contribution as defined below and an allocation of Plan earnings. Allocations of earnings are based on participant account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Loan provisions - --------------- The Plan provides for participant loans against eligible participants' separate account balances. Eligible employees obtain participant loans by filing a loan application with the Company and receiving approval thereof. Loan amounts are generally limited to the lesser of $50,000 or 50% of the individual participant's account balance, within certain regulatory restrictions. Loan repayment terms may range from 6 to 117 months depending on the type of loan and bear interest at the prime interest rate plus 1% rounded to the nearest whole per cent. Repayments, including interest, are made through after-tax payroll deductions and are credited to the individual participant's account balance. Loan transactions are treated as a transfer to (from) the investment fund (from) to the Loan Fund. Contributions - ------------- Participant contributions are made through a pretax compensation deferral as elected by the participants and are contributed to the Plan by the employer. During 1996, the compensation deferral was limited to (a) the greater of $4,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,500 in 1996) for participants earning in excess of $65,000 or (b) $9,500 for participants earning less than $65,000. -6- During 1995, the compensation deferral was limited to (a) the greater of $4,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,240 in 1995) for participants earning in excess of $62,345 or (b) $9,240 for participants earning less than $62,345. Investment programs - ------------------- Participants may elect to have their contributions invested in any combination of the funds shown on the accompanying statements of changes in net assets available for plan benefits with fund information. In 1996, a self-directed fund option was added to allow participants to invest in various other mutual funds outside of the Preferred Group of Mutual Funds. Contributions in and withdrawals from this self-directed fund occur through transfers to/from other elected funds. State Street Bank serves as custodian for funds invested through this self-directed fund option. Interfund transfers - ------------------- Transfers of assets between investment funds are recorded on a net basis in the statement of changes in net assets available for plan benefits with fund information. Vesting, distribution and plan termination - ------------------------------------------ Participants are fully vested in their participant contributions. Upon termination of employment for any reason, including death, retirement or total and permanent disability, or upon Plan termination, the balance or balances in participants' accounts are distributable. Administration - -------------- The Plan is administered by the Vice President - Human Services Division of Caterpillar Inc., and the Benefits Funds Committee of Caterpillar Inc. is responsible for financial aspects of the Plan. Caterpillar Inc. and the Benefit Funds Committee have entered into a trust agreement with The Northern Trust Company to receive contributions, administer the assets of the Plan and distribute withdrawals pursuant to the Plan. Federal income tax status - ------------------------- The Internal Revenue Service has determined and informed the Company by letter dated May 30, 1986, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended subsequent to the amendments covered by the determination letter; however, the Plan administrator and the Plan's legal counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - --------------------------------------------------- Basis of accounting - ------------------- The Plan's accounts are maintained on the accrual basis of accounting. Investments - ----------- The fair value of the Plan's investment in the 401(k) Master Trust (Note 4) is based upon the beginning of the year value of the Plan's investment plus actual contributions, transfers and allocated investment income less actual withdrawals. Income from investments is recorded as earned. -7- Administrative expenses - ----------------------- Trustee fees and certain investment costs are paid by Caterpillar Inc. Administrative costs are paid by the Company. Use of estimates in the preparation of financial statements - -------------------------------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and benefit payments. Actual results could differ from those estimates. The Company believes the techniques and assumptions used in establishing these amounts are appropriate. NOTE 3 - UNIT VALUES: - --------------------- The Plan assigns units to participants directing investments to any of the Preferred Group of Mutual Funds and the Caterpillar Common Stock Fund. The unit values assigned by the Plan reflect the current values of the individual funds. Total units held (in thousands) by the Plan and their respective unit values at each month end are shown on the accompanying schedule on the following page. -8- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 3 - UNIT VALUES -------------------- DECEMBER 31, 1996 ----------------- (units in 000's)
January February March April May June July August September October November December ------- -------- ----- ----- ----- ----- ----- ------ --------- ------- -------- -------- Caterpillar Common Stock Fund: Units 131 126 130 144 144 137 158 139 139 149 142 150 Unit value 23.09 23.93 24.33 22.94 23.47 24.19 23.55 24.56 26.76 24.49 27.99 26.70 Preferred Group of Mutual Funds: Stable Principal Fund - Units 307 317 308 302 298 287 293 295 301 293 295 294 Unit value 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Money Market - Units 1,382 1,406 1,397 1,204 1,249 1,484 1,178 1,770 1,782 1,571 1,868 1,717 Unit value 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Short-term Government - Units 42 43 43 44 44 44 47 47 46 48 46 45 Unit value 9.90 9.82 9.79 9.76 9.73 9.76 9.73 9.73 9.76 9.82 9.85 9.80 Value - Units 114 120 121 123 123 123 122 124 125 126 131 140 Unit value 15.53 15.85 16.13 16.37 16.69 16.65 16.03 16.67 17.49 18.05 18.89 18.02 Growth - Units 158 161 159 158 159 161 169 164 162 162 155 186 Unit value 16.89 17.62 17.60 18.57 19.02 18.52 16.87 17.75 19.14 19.00 20.49 17.23 International - Units 62 57 54 56 57 57 58 57 58 58 59 64 Unit value 12.52 12.95 13.19 13.72 13.74 13.72 13.35 13.59 13.69 13.82 14.50 14.10 Asset Allocation Units 33 34 36 35 35 35 35 36 36 30 30 31 Unit value 12.78 12.74 12.68 12.70 12.87 12.88 12.55 12.65 13.10 13.48 14.28 13.37 Fixed Income - Units 21 21 21 21 22 21 19 20 23 20 20 21 Unit value 10.59 10.35 10.21 10.09 10.02 10.09 10.06 9.99 10.11 10.28 10.41 10.24 Small Cap - Units 3 4 5 6 10 13 10 7 8 9 10 10 Unit value 10.43 10.63 10.92 11.55 11.98 11.25 10.58 11.04 11.61 11.55 12.27 12.45
-9- NOTE 4 - MASTER TRUST: - ---------------------- Under a Master Trust agreement with The Northern Trust Company (the Trustee), Part 2 of the Caterpillar Inc. Employees' Investment Plan (EIP 2), the Solar Turbines Incorporated Savings and Investment Plan and the Caterpillar Inc. Tax Deferred Savings Plan pool their investments in the Caterpillar Inc. 401(k) Master Trust (the Master Trust) in exchange for a percentage of participation in the Master Trust. The Master Trust invests in the Preferred Group of Mutual Funds, registered investment companies which are sponsored by Caterpillar Investment Management Ltd. (CIML), a wholly-owned subsidiary of the Company. The Preferred Group of Mutual Funds is comprised of the following: Preferred Stable Principal Fund Preferred Short-term Government Fund Preferred Value Fund Preferred Growth Fund Preferred Fixed Income Fund Preferred Money Market Fund Preferred International Fund Preferred Asset Allocation Fund Preferred Small Cap Fund CIML manages the Preferred Short-term Government Fund and the Preferred Small Cap Fund. All other funds are managed by unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to the Master Trust. The percentage of the Plan's participation in the Master Trust was determined based on the December 31, 1996 and 1995 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1996 and 1995, the Plan's pro rata interest in the quoted market values of net assets of each of the funds of the Master Trust was as follows:
1996 1995 ----- ----- Caterpillar Inc. Common Stock Fund 2.13% 1.88% Preferred Stable Principal Fund 2.81% 3.11% Preferred Short-term Government Fund 3.03% 3.18% Preferred Money Market Fund 2.01% 2.02% Preferred Value Fund 1.37% 1.22% Preferred International Fund 1.04% 1.08% Preferred Growth Fund 1.64% 1.62% Preferred Asset Allocation Fund .88% 1.09% Preferred Fixed Income Fund .97% .93% Preferred Small Cap Fund .71% 0% Loan Fund 5.70% 6.04%
Investment valuation - -------------------- The Master Trust's investments are stated at fair value, except for its investment contracts with insurance companies which are stated at contract value, which approximates fair value. Common stock, common trust funds, government obligations and corporate bonds and other are valued at quoted market prices. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Master Trust at year end. Participant loans are valued at cost which approximates fair value. -10- The net investment income or loss of the Master Trust is reflected in the financial statements of the Plan based on the actual earnings of each investment fund as allocated to the Plan based on average investment balances throughout the year. Refer to pages 12 through 15 for analyses of the net assets and changes in net assets of the investments of the Master Trust as of December 31, 1996 and 1995. Return of contributions - ----------------------- These amounts represent contributions made by certain participants in EIP 2 from 1989 through 1994 which exceeded the allowable amount as defined by the Internal Revenue Code and were subsequently returned to the respective participants with earnings thereon. -11- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1996 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International Growth ---- ---- ---------- ------ ----- ------------- ------ Investments, at fair value: Cash and cash equivalents $ 11,311 $ $ $ $ $ $ Common stock 170,624 Registered investment companies 103,382 14,528 85,349 182,982 85,207 194,217 Participant loans ----------- --------- ---------- -------- -------- ------------- -------- Total investments 181,935 103,382 14,528 85,349 182,982 85,207 194,217 Dividend and interest receivable 56 Transfers receivable from EIP 1 4,863 35 Contributions receivable 536 542 87 318 983 649 1,421 Other receivable/(payable), net 361 519 4 (254) 97 (37) (18) ----------- --------- ---------- ------- -------- ------------- -------- Net assets $ 187,751 $ 104,443 $ 14,619 $85,448 $184,062 $ 85,819 $195,620 =========== ========= ========== ======= ======== ============= ========
Preferred Group of Mutual Funds ------------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------ --- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ 11,311 Common stock 170,624 Registered investment companies 47,001 22,152 18,215 753,033 Participant loans 20,821 20,821 ---------- ------- ------- ------- -------- Total investments 47,001 22,152 18,215 20,821 955,789 Dividend and interest receivable 56 Transfers receivable from EIP 1 4,898 Contributions receivable 354 153 157 5,200 Other receivable/(payable), net 273 (25) (762) 158 ---------- ------- ------- ------- -------- Net assets $ 47,628 $22,280 $18,372 $20,059 $966,101 ========== ======= ======= ======= ========
-12- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1995 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------- Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Short-term Money Fund Fund Fund Government Market Value International ----------- --------- --------- ---------- -------- -------- ------------- Investments, at fair value: Common stock $148,480 $ $ $ $ $ $ Registered investment com- panies 12,721 62,552 128,442 64,790 Common trust funds 6,954 52,724 Participant loans -------- ------ ------- ------- ------- -------- ------- 155,434 52,724 12,721 62,552 128,442 64,790 Investment contracts with insurance companies, at contract value 44,089 -------- ------ ------- ------- ------- -------- ------- Total investments 155,434 96,813 12,721 62,552 128,442 64,790 Dividend and interest receivable 26 66 59 284 4,281 929 Transfers receivable from EIP 1 2,593 13 Contributions receivable 418 506 78 257 710 585 Other receivable/(payable), net 225 30 (38) (59) 163 (89) -------- ------ ------- ------- ------- -------- ------- Net assets $158,696 $ - $97,415 $12,820 $63,047 $133,596 $66,215 ======== ====== ======= ======= ======= ======== =======
Preferred Group of Mutual Funds ------------------------------- Asset Fixed Loan Growth Allocation Income Fund Total ------ ---------- ------ ---- ----- Investments, at fair value: Common stock $ $ $ $ $148,480 Registered investment com- panies 156,741 34,726 22,890 482,862 Common trust funds Participant loans 59,678 16,571 16,571 -------- ------- ------- ------- -------- Investment contracts with 156,741 34,726 22,890 16,571 707,591 insurance companies, at contract value 44,089 -------- ------- ------- ------- -------- Total investments 156,741 34,726 22,890 16,571 751,680 Dividend and interest receivable 5,064 270 103 11,082 Transfers receivable from EIP 1 2,606 Contributions receivable 1,202 255 149 4,160 Other receivable/(payable), net 151 17 9 (850) (441) -------- ------- ------- ------- -------- Net assets $163,158 $35,268 $23,151 $15,721 $769,087 ======== ======= ======= ======= ========
-13- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International Growth ---- ---- ---------- ------ ----- ------------- ------ Investment income:- Interest $ 406 $ $ $ $ $ $ Dividends 3,598 Net appreciation in fair value of: Common stock 41,519 Registered investment companies 5,258 615 3,612 35,676 12,181 31,039 ----------- --------- ---------- ------- -------- ----------- -------- Net investment income 45,523 5,258 615 3,612 35,676 12,181 31,039 ----------- --------- ---------- ------- -------- ----------- -------- Contributions to all plans 5,135 6,096 978 3,781 10,442 7,601 16,182 ----------- --------- ---------- ------- -------- ----------- -------- Withdrawals from all plans (7,437) (7,519) (1,093) (12,848) (5,166) (2,088) (5,126) ----------- --------- ---------- ------- -------- ----------- -------- Transfers from EIP 1 50,104 584 ----------- --------- ---------- ------- -------- ----------- -------- Interfund transfers, net (64,270) 3,193 1,299 27,272 9,514 1,910 (9,633) ----------- --------- ---------- ------- -------- ----------- -------- Increase (decrease) in assets for the year 29,055 7,028 1,799 22,401 50,466 19,604 32,462 Net assets: Beginning of year 158,696 97,415 12,820 63,047 133,596 66,215 163,158 ----------- --------- ---------- ------- -------- ----------- -------- End of year $ 187,751 $ 104,443 $ 14,619 $85,448 $184,062 $ 85,819 $195,620 =========== ========= ========== ======= ======== =========== ========
Preferred Group of Mutual Funds ------------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------ --- ---- ----- Investment income:- Interest $ $ $ $ 1,521 $ 1,927 Dividends 3,598 Net appreciation in fair value of: Common stock 41,519 Registered investment companies 5,796 520 2,219 96,918 ---------- ------- ------- ------- -------- Net investment income 5,796 520 2,219 1,521 143,960 ---------- ------- ------- ------- -------- Contributions to all plans 3,858 1,869 1,314 57,256 ---------- ------- ------- ------- -------- Withdrawals from all plans (1,723) (1,489) (307) (422) (45,218) ---------- ------- ------- ------- -------- Transfers from EIP 1 50,688 ---------- ------- ------- ------- -------- Interfund transfers, net 4,429 (1,771) 15,146 3,239 (9,672) ---------- ------- ------- ------- -------- Increase (decrease) in assets for the year 12,360 (871) 18,372 4,338 197,014 Net assets: Beginning of year 35,268 23,151 15,721 769,087 ---------- ------- ------- ------- -------- End of year $ 47,628 $22,280 $18,372 $20,059 $966,101 ========== ======= ======= ======= ========
-14- SOLAR TURBINES INCORPORATED--SAVINGS AND INVESTMENT PLAN -------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1995 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------- Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Short-term Money Fund Fund Fund Government Market Value International ---- ---- ---- ---------- ------- ------- ------------- Investment income:- Interest $ 441 $ $ 3,408 $ $ $ $ Dividends 3,007 Net appreciation in fair value of: Common stock 11,603 Government obligations 4,747 Registered investment companies 1,120 3,492 34,119 6,180 -------- -------- ------- ------- ------- -------- ------- Net investment income 15,051 8,155 1,120 3,492 34,119 6,180 -------- -------- ------- ------- ------- -------- ------- Contributions to all plans 4,931 5,691 971 3,510 7,412 7,441 -------- -------- ------- ------- ------- -------- ------- Withdrawals from all plans (8,043) (5,821) (625) (6,582) (2,927) (1,884) -------- -------- ------- ------- ------- -------- ------- Return of contributions (1,003) (1,689) (152) (905) (1,770) (995) -------- -------- ------- ------- ------- -------- ------- Transfers from EIP 1 33,755 373 -------- -------- ------- ------- ------- -------- ------- Interfund transfers, net (25,284) (31,386) 19,215 (672) 13,001 11,409 (10,831) -------- -------- ------- ------- ------- -------- ------- Increase (decrease) in assets for the year 19,407 (31,386) 25,551 642 12,889 48,243 (89) Net assets: Beginning of year 139,289 31,386 71,864 12,178 50,158 85,353 66,304 -------- -------- ------- ------- ------- -------- ------- End of year $158,696 $ - $97,415 $12,820 $63,047 $133,596 $66,215 ======== ======== ======= ======= ======= ======== =======
Preferred Group of Mutual Funds -------------------------------- Asset Fixed Loan Growth Allocation Income Fund Total -------- ---------- ------- ------ -------- Investment income: Interest $ $ $ $ 1,121 $ 4,970 Dividends 3,007 Net appreciation in fair value of: Common stock 11,603 Government obligations 4,747 Registered investment companies 32,918 7,478 2,919 88,226 -------- ------- ------- ------- -------- Net investment income 32,918 7,478 2,919 1,121 112,553 -------- ------- ------- ------- -------- Contributions to all plans 13,351 2,531 1,493 47,331 -------- ------- ------- ------- -------- Withdrawals from all plans (3,115) (1,313) (761) (883) (31,954) -------- ------- ------- ------- -------- Return of contributions (2,389) (354) (238) (9,495) -------- ------- ------- ------- -------- Transfers from EIP 1 34,128 -------- ------- ------- ------- -------- Interfund transfers, net 10,274 6,505 5,913 1,856 -------- ------- ------- ------- -------- Increase (decrease) in assets for the year 51,039 14,847 9,326 2,094 152,563 Net assets: Beginning of year 112,119 20,421 13,825 13,627 616,524 -------- ------- ------- ------- -------- End of year $163,158 $35,268 $23,151 $15,721 $769,087 ======== ======= ======= ======= ========
-15- SCHEDULE I ---------- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1996 -----------------
(a) (b) (c) (d) (e) Identity of issue, Description of investment, including borrower, lessor maturity date, rate of interest, Current or similar party collateral, par or maturity value Cost value ---------------- --------------------------------- ---- ----- Founders Growth Fund; 249.53 units $ 4,000 $ 3,960 Janus Worldwide Fund; 14.13 units 474 476 PBHG Growth Fund; 353.73 units 10,000 9,293 Seven Seas Money Market Fund; 1,002.42 units 8,245 8,245 Stein Roe Capital Opportunities Fund; 143.73 units 4,000 4,040 Warburg Pincus Emerging Growth Fund; 151.08 units 4,680 5,019 ------- $31,033 =======
-16- SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value Incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net Gain party involved Description of Assets Price Price rental transaction of asset date or (loss) - -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Baird Baron Asset Fund: Purchase $ 4,116 $ $ $ $ 4,116 $ 4,116 $ Sale 3,865 4,116 3,865 (251) Founders Growth Fund: Purchase 4,000 4,000 4,000 Janus Worldwide Fund: Series of 4 Purchases 7,876 7,876 7,876 Sale 7,234 7,402 7,234 (168) PBNG Growth Fund: Purchase 10,000 10,000 10,000 Seven Seas Money Market Fund: Series of 19 purchases 42,443 42,443 42,443 Series of 7 sales 34,198 34,198 34,198 Stein Roe Capital Opportunities Fund: Purchase 4,000 4,000 4,000 Warburg Pincus Emerging Growth Fund: Purchase 4,680 4,680 4,680
-17- EXHIBIT C --------- CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Forms S-8 (No. 2-97450, as amended, and No. 33-37353) of Caterpillar Inc. of our report dated May 12, 1997 related to the financial statements of the Savings and Investment Plan, which is included in this Annual Report on Form 11-K. /s/ PRICE WATERHOUSE LLP Peoria, Illinois May 12, 1997 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [Fee Required] For the Fiscal Year Ended December 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [No Fee Required] For the transition period from _____ to _____ Commission File Number 1-768 TAX DEFERRED SAVINGS PLAN (Full title of the Plan) CATERPILLAR INC. (Name of issuer of the securities held pursuant to the Plan) 100 NE ADAMS STREET, PEORIA, ILLINOIS 61629 (Address of principal executive offices) REQUIRED INFORMATION Item 1. The audited statement of net assets available for plan benefits as of the end of the latest two fiscal years of the Plan is attached hereto as Exhibit A. Item 2. The audited statement of changes in net assets available for plan benefits for each of the latest two fiscal years of the Plan is attached hereto as Exhibit B. Item 3. The statements required by Items 1 and 2 have been prepared in accordance with the applicable financial reporting requirements of ERISA. Item 4. The Consent of Independent Accountants is attached hereto as Exhibit C. Caterpillar Inc. Tax Deferred Savings Plan Financial Statements December 31, 1996 and 1995 REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- May 12, 1997 To the Participants and Plan Administrator of the Caterpillar Inc. Tax Deferred Savings Plan In our opinion, the accompanying statements of net assets available for plan benefits of the Caterpillar Inc. Tax Deferred Savings Plan and the related statements of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for plan benefits at December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in schedules I and II is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. The Fund Information in the statement of net assets available for plan benefits and the statement of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. Schedules I and II and the Fund Information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Price Waterhouse LLP Peoria, Illinois EXHIBIT A CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1996 ----------------- (Dollars in 000's)
Fund Information --------------------------------------------------------------------------------------- Preferred Group of Mutual Funds -------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fund Fund Government Market Value national Growth Allocation ---- ---- ---------- ------ ----- -------- ------ ---------- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ $ $ Investments in Master Trust Net Assets 21,232 27,658 2,965 10,516 31,595 11,595 33,387 5,818 ------- ------- ------ ------- ------- ------- ------- ------ Total Net Assets $21,232 $27,658 $2,965 $10,516 $31,595 $11,595 $33,387 $5,818 ======= ======= ====== ======= ======= ======= ======= ====== Fund Information ---------------------------------------------------- Preferred Group of Mutual Funds ------------------------------- Self- Fixed Small Loan Directed Income Cap Fund Fund Total ------ ----- ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $688 $ 688 Investments in Master Trust Net Assets 2,536 2,518 4,411 154,231 ------ ------ ------ ---- -------- Total Net Assets $2,536 $2,518 $4,411 $688 $154,919 ====== ====== ====== ==== ========
(See notes to financial statements) -2- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1995 ----------------- (Dollars in 000's)
Fund Information ----------------------------------- Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Fund Fund Fund ---------- ---- ---- Investments, at fair value (Notes 2 and 4): Investment in Master Trust Net Assets $17,832 $ - $27,736 ======= ==== ======= Fund Information ------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds --------------------------------------------------------------------------------- Short-term Money Asset Fixed Loan Government Market Value International Growth Allocation Income Fund Total ---------- ----- ----- ------------- ------ ---------- ------ ----- ----- Investments, at fair value (Notes 2 and 4): Investment in Master Trust Net Assets $2,835 $8,256 $23,694 $9,423 $27,316 $4,217 $2,744 $2,384 $126,437 ====== ====== ======= ====== ======= ====== ====== ====== ========
(See notes to financial statements) -3- EXHIBIT B CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND ------------------------------------------------------------------------ INFORMATION ----------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------ (Dollars in 000's)
Fund Information ----------------------------------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------------------------------------------ Caterpillar Common Stable Stock Principal Short-term Money Inter- Asset Fixed Small Fund Fund Government Market Value national Growth Allocation Income Cap ---- ---- ---------- ------ ----- -------- ------ ---------- ------ ----- Participant contributions $ 1,814 $ 2,409 $ 315 $ 1,128 $ 2,315 $ 1,600 $ 3,681 $ 875 $ 525 $ 332 ------- ------- ------ ------- ------- -------- ------- ------ ------ ------ Investment Income: Net Appreciation in fair value of registered investment companies Plan interest in net investment income of Master Trust (Note 4) 5,008 1,386 132 467 6,180 1,631 5,138 720 58 261 ------- ------- ------ ------- ------- -------- ------- ------ ------ ------ Net investment income 5,008 1,386 132 467 6,180 1,631 5,138 720 58 261 ------- ------- ------ ------- ------- -------- ------- ------ ------ ------ Withdrawals (865) (2,145) (110) (893) (1,322) (275) (1,137) (255) (112) (9) Transfers to other plans, net (236) (3) (58) (47) (53) (96) (17) (23) Interfund transfers, net (2,321) (1,728) (204) 1,616 775 (731) (1,515) 278 (656) 1,934 ------- ------- ------ ------- ------- -------- ------- ------ ------ ------ Withdrawals and transfers, net (3,422) (3,873) (317) 665 (594) (1,059) (2,748) 6 (791) 1,925 ------- ------- ------ ------- ------- -------- ------- ------ ------ ------ Increase (decrease) in net assets 3,400 (78) 130 2,260 7,901 2,172 6,071 1,601 (208) 2,518 Net assets: Beginning of year 17,832 27,736 2,835 8,256 23,694 9,423 27,316 4,217 2,744 ------- ------- ------ ------- ------- -------- ------- ------ ------ ------ End of year $21,232 $27,658 $2,965 $10,516 $31,595 $ 11,595 $33,387 $5,818 $2,536 $2,518 ======= ======= ====== ======= ======= ======== ======= ====== ====== ======
Fund Information ---------------- Self- Loan Directed Fund Fund Total ---- -------- ----- Participant contributions $ $ $ 14,994 ------ ---- -------- Investment Income: Net appreciation in fair value of registered investment companies 40 40 Plan interest in net investment income of Master Trust (Note 4) 287 21,268 ------ ---- -------- Net investment income 287 40 21,308 ------ ---- -------- Withdrawals (158) (7,281) Transfers to other plans, net (6) (539) Interfund transfers, net 1,904 648 ------ ---- -------- Withdrawals and transfers, net 1,740 648 (7,820) ------ ---- -------- Increase (decrease) in net assets 2,027 688 28,482 Net assets: Beginning of year 2,384 126,437 ------ ---- -------- End of year $4,411 $688 $154,919 ====== ==== ========
(See notes to financial statements) -4- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN -------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION - ------------------------------------------------------------------------------------ FOR THE YEAR ENDED DECEMBER 31, 1995 ------------------------------------ (Dollars in 000's) Fund Information ------------------------------------------------------------------------------------ Caterpillar Guaranteed Preferred Group of Mutual Funds Common Investment Stable --------------------------------------------- Stock Contract Principal Short-term Money Fund Fund Fund Government Market Value International ----------- ---------- --------- ---------- ------ ------- ------------- Participant contributions $ 1,741 $ $ 1,415 $ 232 $ 992 $ 1,084 $ 1,244 ------- ------- ------- ------ ------ ------- ------- Plan interest in net investment income of Master Trust (Note 4) 1,495 2,312 237 440 6,335 834 ------- ------- ------- ------ ------ ------- ------- Withdrawals (620) (2,331) (147) (438) (884) (389) Transfers to other plans, net (120) (66) (23) (14) (78) (21) Interfund transfers, net 911 (8,150) 5,662 (25) 1,218 480 (1,712) ------- ------- ------- ------ ------ ------- ------- Withdrawals and transfers, net 171 (8,150) 3,265 (195) 766 (482) (2,122) ------- ------- ------- ------ ------ ------- ------- Increase (decrease) in net assets 3,407 (8,150) 6,992 274 2,198 6,937 (44) Net assets: Beginning of year 14,425 8,150 20,744 2,561 6,058 16,757 9,467 ------- ------- ------- ------ ------ ------- ------- End of year $17,832 $ - $27,736 $2,835 $8,256 $23,694 $ 9,423 ======= ======= ======= ====== ====== ======= =======
Fund Information ----------------------------------------- Preferred Group of Mutual Funds ------------------------------- Asset Fixed Loan Growth Allocation Income Fund Total ------- ---------- ------ ------ -------- Participant contributions $ 2,061 $ 381 $ 264 $ $ 9,414 ------- ------ ------ ------ -------- Plan interest in net investment income of Master Trust (Note 4) 5,635 912 350 174 18,724 ------- ------ ------ ------ -------- Withdrawals (700) (142) (79) (764) (6,494) Transfers to other plans, net (100) (11) (3) (10) (446) Interfund transfers, net 702 449 431 34 ------- ------ ------ ------ -------- Withdrawals and transfers, net (98) 296 349 (740) (6,940) ------- ------ ------ ------ -------- Increase (decrease) in net assets 7,598 1,589 963 (566) 21,198 Net assets: Beginning of year 19,718 2,628 1,781 2,950 105,239 ------- ------ ------ ------ -------- End of year $27,316 $4,217 $2,744 $2,384 $126,437 ======= ====== ====== ====== ========
(See notes to financial statements) -5- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- NOTE 1 - PLAN DESCRIPTION: - -------------------------- The following description of the Caterpillar Inc. Tax Deferred Savings Plan (the Plan) provides only general information. Employees should refer to the Plan agreement for a more complete description of the Plan's provisions. General - ------- The Plan is a defined contribution plan established by Caterpillar Inc. (the Company) to enable eligible employees of the Company and its subsidiaries (the employers) which adopt the Plan to accumulate funds. Participation - ------------- Employees under collective bargaining agreements to which the Plan is extended who meet certain age, service and citizenship or residency requirements are eligible to participate in the Plan. Participation commences upon an eligible employee's filing of an application with the Company. Participating eligible employees (the participants) elect to defer a portion of their compensation until retirement. Participant accounts - -------------------- Accounts are maintained separately for each participant. The participant's separate account is credited with the participant's contribution as defined below and an allocation of Plan earnings. Allocations of earnings are based on participant account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Loan provisions - --------------- The Plan provides for participant loans against eligible participants' separate account balances. Eligible employees obtain participant loans by filing a loan application with the Company and receiving approval thereof. Loan amounts are generally limited to the lesser of $50,000 or 50% of the individual participant's account balance, within certain regulatory restrictions. Loan repayment terms may range from 6 to 117 months depending on the type of loan and bear interest at the prime interest rate plus 1% rounded to the nearest whole per cent. Repayments, including interest, are made through after-tax payroll deductions and are credited to the individual participant's account balance. Loan transactions are treated as a transfer to (from) the investment fund (from) to the Loan Fund. Contributions - ------------- Participant contributions are made through a pretax compensation deferral as elected by the participants and are contributed to the Plan by the employer. During 1996, the compensation deferral was limited to (a) the greater of $4,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,500 in 1996) for participants earning in excess of $65,000 or (b) $9,500 for participants earning less than $65,000. -6- During 1995, the compensation deferral was limited to (a) the greater of $4,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,240 in 1995) for participants earning in excess of $62,345 or (b) $9,240 for participants earning less than $62,345. Investment programs - ------------------- Participants may elect to have their contributions invested in any combination of the funds shown on the accompanying statements of changes in net assets available for plan benefits with fund information. In 1996, a self-directed fund option was added to allow participants to invest in various other mutual funds outside of the Preferred Group of Mutual Funds. Contributions in and withdrawals from this self-directed fund occur through transfers to/from other elected funds. State Street Bank serves as custodian for funds invested through this self-directed fund option. Interfund transfers - ------------------- Transfers of assets between investment funds are recorded on a net basis in the statement of changes in net assets available for plan benefits with fund information. Vesting, distribution and plan termination - ------------------------------------------ Participants are fully vested in their participant contributions. Upon termination of employment for any reason, including death, retirement or total and permanent disability, or upon Plan termination, the balance or balances in participants' accounts are distributable. Administration - -------------- The Plan is administered by the Vice President - Human Services Division of Caterpillar Inc., and the Benefits Funds Committee of Caterpillar Inc. is responsible for financial aspects of the Plan. Caterpillar Inc. and the Benefit Funds Committee have entered into a trust agreement with The Northern Trust Company to receive contributions, administer the assets of the Plan and distribute withdrawals pursuant to the Plan. Federal income tax status - ------------------------- The Internal Revenue Service has determined and informed the Company by letter in February 1988, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended subsequent to the amendments covered by the determination letter; however, the Plan administrator and the Plan's legal counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: - ---------------------------------------------------- Basis of accounting - ------------------- The Plan's accounts are maintained on the accrual basis of accounting. Investments - ----------- The fair value of the Plan's investment in the 401(k) Master Trust (Note 4) is based upon the beginning of the year value of the Plan's investment plus actual contributions, transfers and allocated investment income less actual withdrawals. Income from investments is recorded as earned. -7- Administrative expenses - ----------------------- Trustee fees and certain investment and administrative costs are paid by the Company. Use of estimates in the preparation - ----------------------------------- of financial statements - ------------------------ The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and benefit payments. Actual results could differ from those estimates. The Company believes the techniques and assumptions used in establishing these amounts are appropriate. NOTE 3 - UNIT VALUES: - --------------------- The Plan assigns units to participants directing investments to any of the Preferred Group of Mutual Funds and the Caterpillar Common Stock Fund. The unit values assigned by the Plan reflect the current values of the individual funds. Total units held (in thousands) by the Plan and their respective unit values at each month end are shown on the accompanying schedule on the following page. -8- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 3 - UNIT VALUES -------------------- DECEMBER 31, 1996 ----------------- (units in 000's)
January February March April May June July August September October November December ------- -------- ----- ----- ---- ------ ------ ------ --------- ------- -------- -------- CATERPILLAR COMMON STOCK FUND: Units 794 752 750 798 789 797 822 736 729 802 744 795 Unit value 23.09 23.93 24.33 22.94 23.47 24.19 23.55 24.56 26.76 24.49 27.99 26.70 PREFERRED GROUP OF MUTUAL FUNDS: Stable Principal Fund - Units 2,797 2,822 2,787 2,782 2,751 2,734 2,722 2,771 2,786 2,752 2,752 2,766 Unit value 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Money Market - Units 8,544 9,155 9,774 8,880 8,803 8,696 9,159 9,971 10,366 10,095 11,217 10,515 Unit value 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Short-term Govern- ment - Units 296 296 297 301 292 291 291 293 295 295 299 303 Unit value 9.90 9.82 9.79 9.76 9.73 9.76 9.73 9.73 9.76 9.82 9.85 9.80 Value - Units 1,592 1,609 1,627 1,623 1,642 1,634 1,650 1,656 1,655 1,669 1,691 1,753 Unit value 15.53 15.85 16.13 16.37 16.69 16.65 16.03 16.67 17.49 18.05 18.89 18.02 Growth - Units 1,640 1,616 1,611 1,591 1,595 1,626 1,649 1,647 1,653 1,640 1,651 1,938 Unit value 16.89 17.62 17.60 18.57 19.02 18.52 16.87 17.75 19.14 19.00 20.49 17.23 International - Units 735 742 748 749 760 779 770 785 795 784 796 822 Unit value 12.52 12.95 13.19 13.72 13.74 13.72 13.35 13.59 13.69 13.82 14.50 14.10 Asset Allocation Units 347 268 383 386 389 390 397 405 411 407 417 432 Unit value 12.78 12.74 12.68 12.70 12.87 12.88 12.55 12.65 13.10 13.48 14.28 13.37 Fixed Income - Units 272 285 290 279 253 245 242 245 254 245 243 248 Unit value 10.59 10.35 10.21 10.09 10.02 10.09 10.06 9.99 10.11 10.28 10.41 10.24 Small Cap - Units 56 72 752 1,042 178 1,431 162 1,391 1,424 1,370 1,383 1,476 Unit value 10.43 10.63 10.92 11.55 11.98 11.25 10.58 11.04 11.61 11.55 12.27 12.45
-9- NOTE 4 - MASTER TRUST: - ---------------------- Under a Master Trust agreement with The Northern Trust Company (the Trustee), Part 2 of the Caterpillar Inc. Employees' Investment Plan (EIP 2), the Solar Turbines Incorporated Savings and Investment Plan and the Caterpillar Inc. Tax Deferred Savings Plan pool their investments in the Caterpillar Inc. 401(k) Master Trust (the Master Trust) in exchange for a percentage of participation in the Master Trust. The Master Trust invests in the Preferred Group of Mutual Funds, registered investment companies which are sponsored by Caterpillar Investment Management Ltd. (CIML), a wholly-owned subsidiary of the Company. The Preferred Group of Mutual Funds is comprised of the following: Preferred Stable Principal Fund Preferred Short-term Government Fund Preferred Value Fund Preferred Growth Fund Preferred Fixed Income Fund Preferred Money Market Fund Preferred International Fund Preferred Asset Allocation Fund Preferred Small Cap Fund CIML manages the Preferred Short-term Government Fund and the Preferred Small Cap Fund. All other funds are managed by unrelated investment managers. Caterpillar Securities, Inc., a wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to the Master Trust. The percentage of the Plan's participation in the Master Trust was determined based on the December 31, 1996 and 1995 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1996 and 1995, the Plan's pro rata interest in the quoted market values of net assets of each of the funds of the Master Trust was as follows:
1996 1995 ---- ---- Caterpillar Inc. Common Stock Fund 11.31% 11.24% Preferred Stable Principal Fund 26.38% 28.47% Preferred Short-Term Government Fund 20.28% 22.11% Preferred Money Market Fund 12.31% 13.10% Preferred Value Fund 17.17% 17.74% Preferred International Fund 13.51% 14.23% Preferred Growth Fund 17.07% 16.74% Preferred Asset Allocation Fund 12.21% 11.96% Preferred Fixed Income Fund 11.38% 11.85% Preferred Small Cap Fund 13.71% 0% Loan Fund 21.98% 15.16%
Investment valuation - -------------------- The Master Trust's investments are stated at fair value, except for its investment contracts with insurance companies which are stated at contract value, which approximates fair value. Common stock, common trust funds, government obligations and corporate bonds and other are valued at quoted market prices. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Master Trust at year end. Participant loans are valued at cost which approximates fair value. -10- The net investment income or loss of the Master Trust is reflected in the financial statements of the Plan based on the actual earnings of each investment fund as allocated to the Plan based on average investment balances throughout the year. Refer to pages 12 through 15 for analyses of the net assets and changes in net assets of the investments of the Master Trust as of December 31, 1996 and 1995. Return of contributions - ----------------------- These amounts represent contributions made by certain participants in EIP 2 from 1989 through 1994 which exceeded the allowable amount as defined by the Internal Revenue Code and were subsequently returned to the respective participants with earnings thereon. -11- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1996 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds Caterpillar -------------------------------------------------------------------------------- Common Stable Stock Principal Short-term Money Inter- Asset Fixed Small Loan Fund Fund Government Market Value national Growth Allocation Income Cap Fund Total ---- ---- ---------- ------ ------- -------- -------- ---------- ------- --- ---- ----- Investments, at fair value: Cash and cash equivalents $ 11,311 $ $ $ $ $ $ $ $ $ $ $ 11,311 Common stock 170,624 170,624 Registered investment companies 103,382 14,528 85,349 182,982 85,207 194,217 47,001 22,152 18,215 753,033 Participant loans 20,821 20,821 -------- -------- ------- ------- -------- ------- -------- ------- ------- ------- ------- -------- Total investments 181,935 103,382 14,528 85,349 182,982 85,207 194,217 47,001 22,152 18,215 20,821 955,789 Dividend and interest receivable 56 56 Transfers receivable from EIP 1 4,863 35 4,898 Contributions receivable 536 542 87 318 983 649 1,421 354 153 157 5,200 Other receivable/ (payable), net 361 519 4 (254) 97 (37) (18) 273 (25) (762) 158 -------- -------- ------- ------- -------- ------- -------- ------- ------- ------- ------- -------- Net assets $187,751 $104,443 $14,619 $85,448 $184,062 $85,819 $195,620 $47,628 $22,280 $18,372 $20,059 $966,101 ======== ======== ======= ======= ======== ======= ======== ======= ======= ======= ======= ========
-12- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1995 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds ------------------------------------------------ Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Short-term Money Fund Fund Fund Government Market Value International ---- ---- ---- ---------- ------ ----- ------------- Investments, at fair value: Common stock $148,480 $ $ $ $ $ $ Registered investment com- panies 12,721 62,552 128,442 64,790 Common trust funds 6,954 52,724 Participant loans -------- -------- ------- ------- -------- -------- ------- 155,434 52,724 12,721 62,552 128,442 64,790 Investment contracts with insurance companies, at contract value 44,089 -------- -------- ------- ------- -------- -------- ------- Total investments 155,434 96,813 12,721 62,552 128,442 64,790 Dividend and interest receivable 26 66 59 284 4,281 929 Transfers receivable from EIP 1 2,593 13 Contributions receivable 418 506 78 257 710 585 Other receivable/(payable), net 225 30 (38) (59) 163 (89) -------- -------- ------- ------- ------- -------- ------- Net assets $158,696 $ - $97,415 $12,820 $63,047 $133,596 $66,215 ======== ======== ======= ======= ======= ======== ======= Preferred Group of Mutual Funds ------------------------------- Asset Fixed Loan Growth Allocation Income Fund Total ------ ---------- ------ ---- ----- Investments, at fair value: Common stock $ $ $ $ $148,480 Registered investment com- panies 156,741 34,726 22,890 482,862 Common trust funds 59,678 Participant loans 16,571 16,571 -------- ------- ------- ------- -------- 156,741 34,726 22,890 16,571 707,591 Investment contracts with insurance companies, at contract value 44,089 -------- ------- ------- ------- -------- Total investments 156,741 34,726 22,890 16,571 751,680 Dividend and interest receivable 5,064 270 103 11,082 Transfers receivable from EIP 1 2,606 Contributions receivable 1,202 255 149 4,160 Other receivable/(payable), net 151 17 9 (850) (441) -------- ------- ------- ------- -------- Net assets $163,158 $35,268 $23,151 $15,721 $769,087 ======== ======= ======= ======= ========
-13- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds Caterpillar ------------------------------------------------------------------------------------- Common Stable Stock Principal Short-term Money Asset Fixed Small Fund Fund Government Market Value International Growth Allocation Income Cap ---- ---- ---------- ----- ----- ------------- ------ ---------- ------ --- Investment income:- Interest $ 406 $ $ $ $ $ $ $ $ $ Dividends 3,598 Net appreciation in fair value of: Common stock 41,519 Registered investment companies 5,258 615 3,612 35,676 12,181 31,039 5,796 520 2,219 ------- -------- ------- ------- -------- ------- -------- ------- ------- ------- Net investment income 45,523 5,258 615 3,612 35,676 12,181 31,039 5,796 520 2,219 ------- -------- ------- ------- -------- ------- -------- ------- ------- ------- Contributions to all plans 5,135 6,096 978 3,781 10,442 7,601 16,182 3,858 1,869 1,314 ------- -------- ------- ------- -------- ------- -------- ------- ------- ------- Withdrawals from all plans (7,437) (7,519) (1,093) (12,848) (5,166) (2,088) (5,126) (1,723) (1,489) (307) -------- -------- ------- -------- -------- ------- -------- ------- ------- ------- Transfers from EIP 1 50,104 584 -------- -------- ------- -------- -------- ------- -------- ------- ------- ------- Interfund transfers, net (64,270) 3,193 1,299 27,272 9,514 1,910 (9,633) 4,429 (1,771) 15,146 -------- -------- ------- -------- -------- ------- -------- ------- ------- ------- Increase (decrease) in assets for the year 29,055 7,028 1,799 22,401 50,466 19,604 32,462 12,360 (871) 18,372 Net assets: Beginning of year 158,696 97,415 12,820 63,047 133,596 66,215 163,158 35,268 23,151 -------- -------- ------- ------- -------- ------- -------- ------- ------- ------- End of year $187,751 $104,443 $14,619 $85,448 $184,062 $85,819 $195,620 $47,628 $22,280 $18,372 ======== ======== ======= ======= ======== ======= ======== ======= ======= =======
Loan Fund Total ---- ------ Investment income:- Interest $ 1,521 $ 1,927 Dividends 3,598 Net appreciation in fair value of: Common stock 41,519 Registered investment companies 96,918 ------- -------- Net investment income 1,521 143,960 ------- -------- Contributions to all plans 57,256 ------- -------- Withdrawals from all plans (422) (45,218) ------- -------- Transfers from EIP 1 50,688 ------- -------- Interfund transfers, net 3,239 (9,672) ------- -------- Increase (decrease) in assets for the year 4,338 207,126 Net assets: Beginning of year 15,721 769,087 ------- -------- End of year $20,059 $976,213 ======= ========
-14- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1995 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds --------------------------------------------- Caterpillar Guaranteed Common Investment Stable Stock Contract Principal Short-term Money Fund Fund Fund Government Market Value International ---- ---- ---- ---------- ------- ------- ------------- Investment income:- Interest $ 441 $ $ 3,408 $ $ $ $ Dividends 3,007 Net appreciation in fair value of: Common stock 11,603 Government obligations 4,747 Registered investment com- panies 1,120 3,492 34,119 6,180 -------- -------- ------- ------- ------- -------- ------- Net investment income 15,051 8,155 1,120 3,492 34,119 6,180 -------- -------- ------- ------- ------- -------- ------- Contributions to all plans 4,931 5,691 971 3,510 7,412 7,441 -------- -------- ------- ------- ------- -------- ------- Withdrawals from all plans (8,043) (5,821) (625) (6,582) (2,927) (1,884) -------- -------- ------- ------- ------- -------- ------- Return of contributions (1,003) (1,689) (152) (905) (1,770) (995) -------- -------- ------- ------- ------- -------- ------- Transfers from EIP 1 33,755 373 -------- -------- ------- ------- ------- -------- ------- Interfund transfers, net (25,284) (31,386) 19,215 (672) 13,001 11,409 (10,831) -------- -------- ------- ------- ------- -------- ------- Increase (decrease) in assets for the year 19,407 (31,386) 25,551 642 12,889 48,243 (89) Net assets: Beginning of year 139,289 31,386 71,864 12,178 50,158 85,353 66,304 -------- -------- ------- ------- ------- -------- ------- End of year $158,696 $ - $97,415 $12,820 $63,047 $133,596 $66,215 ======== ======== ======= ======= ======= ======== =======
Preferred Group of Mutual Funds -------------------------------- Asset Fixed Loan Growth Allocation Income Fund Total -------- ---------- ------- ------ -------- Investment income:- Interest $ $ $ $ 1,121 $ 4,970 Dividends 3,007 Net appreciation in fair value of: Common stock 11,603 Government obligations 4,747 Registered investment com- panies 32,918 7,478 2,919 88,226 -------- ------- ------- ------- -------- Net investment income 32,918 7,478 2,919 1,121 112,553 -------- ------- ------- ------- -------- Contributions to all plans 13,351 2,531 1,493 47,331 -------- ------- ------- ------- -------- Withdrawals from all plans (3,115) (1,313) (761) (883) (31,954) -------- ------- ------- ------- -------- Return of contributions (2,389) (354) (238) (9,495) -------- ------- ------- ------- -------- Transfers from EIP 1 34,128 -------- ------- ------- ------- -------- Interfund transfers, net 10,274 6,505 5,913 1,856 -------- ------- ------- ------- -------- Increase (decrease) in assets for the year 51,039 14,847 9,326 2,094 152,563 Net assets: Beginning of year 112,119 20,421 13,825 13,627 616,524 -------- ------- ------- ------- -------- End of year $163,158 $35,268 $23,151 $15,721 $769,087 ======== ======= ======= ======= ========
-15- SCHEDULE I ---------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1996 -----------------
(a) (b) (c) (d) (e) Identity of issue, Description of investment, including borrower, lessor maturity date, rate of interest, Current or similar party collateral, par or maturity value Cost Value ---------------- --------------------------------- ---- ----- Baird Baron Asset Fund; 69.64 units $ 2,503 $ 2,523 Benham Target Maturities Series 2020 Fund; 61.50 units 1,467 1,478 Dreyfus Small Company Value Fund; 2,378.12 units 42,048 40,523 Eaton Vance Marathon Greater India Fund 74.62 units 512 441 Fidelity Utilities Fund; 14.75 units 250 249 Value Fund; 69.06 units 3,554 3,559 Worldwide Fund; 239.07 units 3,368 3,679 Founders Frontier Fund; 376.97 units 12,867 12,191 Guinness Flight China Hong Kong Fund; 212.00 units 3,602 3,754 Harris Associates Oakmark Fund; 172.53 units 5,385 5,581 Hotchkis & Wiley International Fund; 257.39 units 5,139 5,711 Invesco Strategic Health Sciences Fund; 67.59 units 4,028 3,336 Value Total Return Fund; 209.93 units 4,780 5,101 Janus Flexible Income Fund; 25.74 units 250 249 Janus Fund; 10.25 units 278 251 Overseas Fund; 886.99 units 13,255 13,500 Mercury Fund; 334.06 units 5,689 5,519 Worldwide Fund; 1,367.33 units 43,828 46,065 Olympus Fund; 1,295.56 units 20,392 18,760 Matthews Korea Fund; 60.76 units 489 358 Midas Midas Fund; 1,848.50 units 10,000 9,520 Montgomery Asset Allocation Fund; 304.76 units 5,574 5,513 Emerging Markets Fund; 180.17 units 2,464 2,499 Small Cap Fund; 1,434.71 units 23,658 23,630 Growth Fund; 514.16 units 11,342 10,360 Mutual Series Beacon Fund; 428.43 units 16,351 16,687 Neuberger and Berman Focus Trust Fund; 14.82 units 251 250 Genesis Trust Fund; 15.61 units 252 259 Guardian Trust Fund; 1,072.47 units 15,327 17,020 Partners Fund; 412.25 units 5,533 6,180 PBHG Emerging Growth Fund; 852.27 units 21,750 20,651 Core Growth Fund; 474.43 units 6,325 6,300 Growth Fund; 3,502.28 units 89,709 92,005 Technology and Communication Fund; 14.25 units 250 250 Roberston Stephens Global Low-Priced Stock Fund; 18.57 units 250 251 Global MAT RES Fund; 17.64 units 250 252 Information Age Fund; 20.92 units 250 240 Microcap Growth Fund; 23.17 units 250 255 Partners Fund; 17.19 units 250 251 Value Plus and Growth Fund; 227.99 units 5,370 5,506 T Rowe Price European Stock Fund; 1,088.50 units 17,048 19,179 New Asia Fund; 639.44 units 6,000 5,921 Royce Value Fund; 4.29 units 40 41 Seven Seas Money Market Fund; 169,351.06 units 169,351 169,351 Skyline Special Equities II Fund; 620.63 units 7,282 7,410 Stein Roe Government Income Fund; 25.36 units 250 248 Special Venture Fund; 17.43 units 250 256 Young Investor Fund; 1064.99 units 20,258 19,926 Strong Corporate Bond Fund; 290.00 units 3,162 3,112 Growth Fund; 786.02 units 14,479 14,541 Twentieth Century Value Fund; 787.63 units 5,487 5,190 United Services U.S. World Gold Fund; 411.86 units 8,753 7,891 Vanguard Growth Index Fund; 701.34 units 10,110 11,860 Vanguard/Wellesey Income Fund; 526.44 units 10,599 10,797 Van Wagoner Income Mid-Cap Fund; 118.82 units 1,557 1,472 Vontobel Eastern European Equity Fund; 17.23 units 250 257 World Funds Vontobel U.S. Value Fund; 1,461.44 units 19,466 20,139 --------- $ 688,298 =========
-16- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Babson-Stewart Ivory TMTL Fund: Purchase $ 1,000 $ $ $ $ 1,000 $ 1,000 $ Sale 1,064 1,000 1,064 64 Babson Value Fund: Series of 2 purchases 1,004 1,004 1,004 Sale 1,030 1,004 1,030 26 Baird Baron Asset Fund: Series of 4 purchases 4,003 4,003 4,003 Sale 1,644 1,500 1,644 144 Benham Target Maturity Series 2020 Fund: Series of 3 purchases 1,467 1,467 1,467 Berger New Generation Fund: Series of 5 purchases 5,363 5,363 5,363 Purchase 5,247 5,363 5,247 (116) Small Company Value Fund: Series of 6 purchases 42,048 42,048 42,048 Eaton Vance Marathon Greater India Fund: Purchase 512 512 512
-17- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Fidelity Capital Appreciation Fund: Series of 3 purchases 25,408 25,408 25,408 Series of 2 sales 22,852 25,408 22,852 (2,556) Dividend Growth Fund: Series of two purchases 251 251 251 Sale 247 251 247 (4) Puritan Fund: Series of 3 purchases 1,514 1,514 1,514 Sale 1,523 1,514 1,523 9 Retirement Growth Fund: Series of 3 purchases 25,502 25,502 25,502 Sale 23,269 25,502 23,269 (2,233) Utilities Fund: Purchase 250 250 250 Value Fund: Series of 2 purchases 3,554 3,554 3,554 Worldwide Fund: Series of 5 purchases 4,868 4,868 4,868 Sale 1,526 1,500 1,526 26
-18- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) - -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Founders Frontier Fund: Series of 5 purchases 12,867 12,867 12,867 Growth Fund: Purchase 16,000 16,000 16,000 Series of 2 sales 18,565 16,000 18,565 2,565 Passport Fund: Purchase 17,225 17,225 17,225 Series of 2 sales 19,703 17,225 19,703 2,478 Guinness Flight China Hong Kong Fund: Purchase 3,602 3,602 3,602 Harbor Bond Fund: Purchase 1,000 1,000 1,000 Sale 916 1,000 916 (84) Harris Oakmark Fund: Associates Series of 4 purchases 5,385 5,385 5,385 Hotchkis & International Fund: Wiley Series of 6 purchases 6,139 6,139 6,139 Sale 1,029 1,000 1,029 29
-19- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of assets date or (loss) - -------------- --------------------- ----- ----- ------ ----------- --------- ---- --------- IAI Emerging Growth Fund: Purchase 30,000 30,000 30,000 Series of 2 sales 35,131 30,000 35,131 5,131 Invesco Strategic Health Services Fund: Purchase 4,028 4,028 4,028 Value Total Return Fund: Series of 6 purchases 4,780 4,780 4,780 Janus Flexible Income Fund: Series of 2 purchases 250 250 250 Janus Fund: Series of 3 purchases 278 278 278 Overseas Fund: Series of 4 purchases 13,255 13,255 13,255 Mercury Fund: Series of 4 purchases 6,689 6,689 6,689 Sale 1,008 1,000 1,008 8 Worldwide Fund: Series of 11 purchases 45,828 45,828 45,828 Sale 2,100 2,000 2,100 100
-20- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) - -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Olympus Fund: Series of 4 purchases 21,642 21,642 21,642 (62) Sale 1,188 1,250 1,188 Lexington Corporate Leaders TR Fund: Series of 5 purchases 4,829 4,829 4,829 Sale 4,880 4,829 4,880 50 Matthews Korea Fund: Purchase 489 489 489 Midas Midas Fund: Series of 2 purchases 10,000 10,000 10,000 Montgomery Asset Allocation Fund: Series of 7 purchases 5,574 5,574 5,574 Emerging Markets Fund: Series of 3 purchases 2,464 2,464 2,464 Small Cap Fund: Series of 2 purchases 40,005 40,005 40,005 Series of 2 sales 16,000 16,347 16,000 (347) Growth Fund: Series of 7 purchases 11,342 11,342 11,342
-21- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of assets date or (loss) - -------------- --------------------- ----- ----- ------ ----------- --------- ---- --------- Mutual Services Beacon Fund: Series of 4 Purchases 16,351 16,351 16,351 Qualified Income Fund: Purchase 1,000 1,000 1,000 Sale 988 1,000 988 (12) Neuberger and Berman Focus Trust Fund: Series of 2 purchases 251 251 251 Genesis Fund: Series of 3 purchases 252 252 252 Guardian Fund: Series of 4 purchases 15,327 15,327 15,327 Partners Fund: Series of 8 purchases 5,533 5,533 5,533 PBHG Emerging Growth Fund: Purchase 21,750 21,750 21,750 Core Growth Fund: Series of 2 purchases 6,325 6,325 6,325
-22- SCHEDULE II ----------- CATERPILLAR INC. --------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) - -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Growth Fund: Series of 9 purchases 92,709 92,709 92,709 Sale 3,195 3,000 3,195 195 Technology and Communication Fund: Purchase 250 250 250 Roberston Stephens Global Low-Priced Stock Fund Purchase 250 250 250 Global MAT RES Fund: Purchase 250 250 250 Information Age Fund: Purchase 250 250 250 Microcap Growth Fund: Purchase 250 250 250 Partners Fund: Purchase 250 250 250 Value Plus and Growth Fund: Series of 3 purchases 6,370 6,370 6,370 Sale 971 1,000 971 (29)
-23- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- T Rowe European Stock Fund: Series of 2 Purchase 17,048 17,048 17,048 New Asia Fund: Purchase 6,000 6,000 6,000 International Stock Fund: Purchase 1,000 1,000 1,000 Sale 968 1,000 968 (32) Science & Technology Fund: Income Capital Stock Purchase 1,000 1,000 1,000 Sale 1,028 1,000 1,028 28 Royce Value Fund: Series of 4 purchases 290 290 290 Sale 254 250 254 4 Seven Seas Money Market Fund: Series of 207 purchases 795,807 795,807 795,807 Series of 100 sales 626,456 626,456 626,456 Skyline Special Equities II Fund: Series of 2 purchases 7,282 7,282 7,282
-24- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Stein Roe Government Income Fund: Purchase 250 250 250 Special Venture Fund: Purchase 250 250 250 Young Investor Fund: Series of 5 purchases 20,258 20,258 20,258 Strong Corporate Bond Fund: Series of 11 purchases 3,162 3,162 3,162 Growth Fund: Series of 4 purchases 14,479 14,479 14,479 Twentieth Century Value Fund: Series of 4 purchases 5,487 5,487 5,487 United Services U.S. World Gold Fund: Series of 3 purchases 11,128 11,128 11,128 Sale 2,375 2,375 2,375 Vanguard Growth Index Fund: Series of 3 purchases 10,110 10,110 10,110
-25- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of asset date or (loss) - -------------- --------------------- ----- ----- ------ ----------- -------- ---- --------- Vanguard/Wellesey Income Fund: Series of 4 Purchases 10,599 10,599 10,599 Windsor II Fund: Purchase 1,000 1,000 1,000 Sale 987 1,000 987 (13) Van Wagoner Income Mid-Cap Fund: Purchase 1,557 1,557 1,557 Vontobel Eastern European Equity Fund: Series of 8 purchases 4,599 4,599 4,599 Sale 4,629 4,349 4,629 280 Warburg Pincus Emerging Growth Fund: Purchase 1,000 1,000 1,000 Sale 1,107 1,000 1,107 107 Emerging Markets Fund: Series of 2 purchases 1,500 1,500 1,500 Sale 1,361 1,500 1,361 (139)
-26- SCHEDULE II ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1996 ------------------------------------
(a) (b) (c) (d) (e) (f) (g) (h) (i) Current Expense value incurred of asset on Identity of Purchase Selling Lease with Cost transaction Net gain party involved Description of Assets Price Price rental transaction of assets date or (loss) - -------------- --------------------- ----- ----- ------ ----------- --------- ---- --------- Growth and Income Fund: Purchase 1,000 1,000 1,000 Sale 942 1,000 942 (58) Post-Venture Cap Fund: Series of 2 purchases 1,500 1,500 1,500 Series of 2 sales 1,305 1,500 1,305 (195) World Funds Vontobel U.S. Value Fund: Purchase 21,000 21,000 21,000 Sale 1,567 1,534 1,567 33
-27- EXHIBIT C --------- CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-8003) of Caterpillar Inc. of our report dated May 12, 1997 related to the financial statements of the Tax Deferred Savings Plan, which is included in this Annual Report on Form 11-K. /s/ PRICE WATERHOUSE LLP Peoria, Illinois May 12, 1997 -----END PRIVACY-ENHANCED MESSAGE-----