-----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, RXTbrCaKfqqzLooVuZAYDBUfaLwvexm519icL1/wmUGlkG7OeJ/B7A987yNbiVa6 lIIr73ZIlNi97fEG4sQByA== 0000950131-98-003989.txt : 19980624 0000950131-98-003989.hdr.sgml : 19980624 ACCESSION NUMBER: 0000950131-98-003989 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980623 SROS: CSX SROS: NYSE SROS: PCX 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: 98652356 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 EMPLOYEE INVEST, TAX-DEFERRED & SAVINGS PLANS 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, 1997 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 and Additional Information December 31, 1997 and 1996 REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- May 15, 1998 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, 1997 and 1996, 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 schedules of assets held for investment purposes and of reportable (5%) transactions are presented for purposes of additional analysis and are not a required part of the basic financial statements but are additional information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 (ERISA). These additional information schedules are the responsibility of the Plan's management. 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. The additional information schedules and the Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The schedules of assets held for investment purposes and of reportable (5%) transactions that accompany the Plan's financial statements do not disclose the historical cost of certain plan assets, and certain related sales transactions, held by a Plan custodian. Disclosure of this information is required by ERISA. /s/ Price Waterhouse LLP Exhibit A CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1997 ----------------- (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 ---- ---- ---------- ------ ----- -------- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ Investments in Master Trust Net Assets 39,455 26,000 2,968 7,824 40,985 11,615 ------- ------- ------ ------ ------- ------- Total net assets $39,455 $26,000 $2,968 $7,824 $40,985 $11,615 ======= ======= ====== ====== ======= =======
Preferred Group of Mutual Funds -------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------ ---------- ------ --- ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $1,098 $ 1,098 Investments in Master Trust Net Assets 44,652 7,709 2,908 5,149 5,230 194,495 ------- ------ ------ ------ ------ ------ -------- Total net assets $44,652 $7,709 $2,908 $5,149 $5,230 $1,098 $195,593 ======= ====== ====== ====== ====== ====== ========
(See notes to financial statements) -2- 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 Fund Fund Government Market Value International ---- ---- ---------- ------ ----- ------------- 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 --------- --------- ----------- -------- ------- -------- Total net assets $ 21,232 $ 27,658 $ 2,965 $ 10,516 $31,595 $ 11,595 ========= ========= =========== ======== ======= ======== Fund Information ------------------------------------------------------------- Preferred Group of Mutual Funds ----------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------ ---------- ------ --- ---- ---- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ 688 $ 688 Investments in Master Trust Net Assets $ 33,387 $ 5,818 $ 2,536 $ 2,518 $4,411 $ 154,231 -------- ------- ------- ------- ------- ------- ---------- Total net assets $ 33,387 $ 5,818 $ 2,536 $ 2,518 $4,411 $ 688 $ 154,919 ======== ======= ======= ======= ======= ======= ==========
(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, 1997 ------------------------------------ (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 ---- ---- ---------- ------ ----- -------- ------ ---------- ------ --- ---- ---- ----- Participant contributions $ 3,107 $ 1,661 $ 280 $ 1,271 $ 3,273 $ 1,727 $ 4,143 $1,120 $ 487 $ 737 $ $ $ 17,806 ------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -------- Investment income: Net appreciation in fair value of registered investment companies 102 102 Plan interest in net investment income of Master Trust (Note 4) 5,713 2,145 177 479 8,930 859 10,631 1,290 211 814 415 31,664 ------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -------- Net investment income 5,713 2,145 177 479 8,930 859 10,631 1,290 211 814 415 102 31,766 ------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -------- Withdrawals (1,041) (1,774) (90) (857) (1,512) (295) (1,341) (156) (55) (92) (133) (7,346) Transfers to other plans, net (177) (171) (19) (173) (399) (114) (348) (53) (33) (10) (57) 2 (1,552) Interfund transfers, net 10,621 (3,519) (345) (3,412) (902) (2,157) (1,820) (310) (238) 1,182 594 306 ------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -------- Withdrawals and transfers, net 9,403 (5,464) (454) (4,442) (2,813) (2,566) (3,509) (519) (326) 1,080 404 308 (8,898) ------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -------- Increase (decrease) in net assets 18,223 (1,658) 3 (2,692) 9,390 20 11,265 1,891 372 2,631 819 410 40,674 Net assets: Beginning of year 21,232 27,658 2,965 10,516 31,595 11,595 33,387 5,818 2,536 2,518 4,411 688 154,919 ------- ------- ------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -------- End of year $39,455 $26,000 $2,968 $ 7,824 $40,985 $11,615 $44,652 $7,709 $2,908 $5,149 $5,230 $1,098 $195,593 ======= ======= ====== ======= ======= ======= ======= ====== ====== ====== ====== ====== ========
(See notes to financial statements) -4- 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- Fund Fund Government Market Value national ---- ---- ---------- ------ ----- -------- Participant contributions $1,814 $2,409 $315 $1,128 $2,315 $1,600 ------ ------ ---- ------ ------ ------ 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 ------ ------ ----- ----- ------ ------ Net investment income 5,008 1,386 132 467 6,180 1,631 ------ ------ ----- ----- ------ ------ Withdrawals (865) (2,145) (110) (893) (1,322) (275) Transfers to other plans, net (236) (3) (58) (47) (53) Interfund transfers, net (2,321) (1,728) (204) 1,616 775 (731) ------ ------ ----- ----- ------ ------ Withdrawals and transfers, net (3,422) (3,873) (317) 665 (594) (1,059) ------ ------ ----- ----- ------ ------ Increase (decrease) in net assets 3,400 (78) 130 2,260 7,901 2,172 Net assets: Beginning of year 17,832 27,736 2,835 8,256 23,694 9,423 ------ ------ ----- ----- ------ ------ End of year $21,232 $27,658 $2,965 $10,516 $31,595 $11,595 ======= ======= ====== ======= ======= =======
-------------------------------------------------------------------- --------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------ ---------- ------ --- ---- ---- ----- Participant contributions $ 3,681 $ 875 $ 525 $ 332 $ $ $ 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) 5,138 720 58 261 287 21,268 ------- ------ ------ ------ ------ ---- -------- Net investment income 5,138 720 58 261 287 40 21,308 ------- ------ ------ ------ ------ ---- -------- Withdrawals (1,137) (255) (112) (9) (158) (7,281) Transfers to other plans, net (96) (17) (23) (6) (539) Interfund transfers, net (1,515) 278 (656) 1,934 1,904 648 ------- ------ ------ ------ ------ ---- -------- Withdrawals and transfers, net (2,748) 6 (791) 1,925 1,740 648 (7,820) ------- ------ ------ ------ ------ ---- -------- Increase (decrease) in net assets 6,071 1,601 (208) 2,518 2,027 688 28,482 Net assets: Beginning of year 27,316 4,217 2,744 2,384 126,437 ------- ------ ------ ------ ------ ---- -------- End of year $33,387 $5,818 $2,536 $2,518 $4,411 $688 $154,919 ======= ====== ====== ====== ====== ==== ========
(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 1997, the compensation deferral was limited to (a) the greater of $5,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,500 in 1997) for participants earning in excess of $75,000 or (b) $9,500 for participants earning less than $75,000. 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 $70,000 or (b) $9,500 for participants earning less than $70,000. -6- 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 to 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. Shares of registered investment companies included in the self-directed fund option are valued at quoted market prices which represent the net asset value of shares held by the Plan at year end. Income from investments is recorded as earned. Administrative expenses - ----------------------- Administrative costs, including trustee fees and certain investment costs, are paid by the Company. -7- 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 as follows:
Caterpillar Common Stock Fund ------------------------------ Units Unit value Units Unit value ----- ---------- ----- ---------- January 845 27.49 July 982 38.94 February 794 27.72 August 1,044 40.22 March 804 28.36 September 1,073 37.49 April 794 31.32 October 1,080 35.73 May 824 34.20 November 1,149 33.60 June 905 37.40 December 1,160 34.00
-8- 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 Small Cap Fund. CIML also managed the Preferred Short-Term Government Fund through October 1997. 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, 1997 and 1996 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1997 and 1996, 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: 1997 1996 ---- ---- Caterpillar Inc. Common Stock Fund 11.64% 11.31% Preferred Stable Principal Fund 27.08% 26.38% Preferred Short-Term Government Fund 20.63% 20.28% Preferred Money Market Fund 12.44% 12.31% Preferred Value Fund 16.98% 17.17% Preferred International Fund 14.03% 13.51% Preferred Growth Fund 17.21% 17.07% Preferred Asset Allocation Fund 13.38% 12.21% Preferred Fixed Income Fund 12.43% 11.38% Preferred Small Cap Fund 11.96% 13.71% Loan Fund 24.94% 21.98% Investment valuation - -------------------- The Master Trust's investments are stated at fair value. Common stock and cash and cash equivalents 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. 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 10 through 13 for analyses of the net assets and changes in net assets of the investments of the Master Trust as of December 31, 1997 and 1996. -9- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1997 ----------------- (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 $ 14,088 $ $ $ $ $ $ Common stock 321,300 Registered investment companies 95,451 14,293 61,952 239,793 82,881 257,136 Participant loans -------- ------- ------- ------- -------- ------- -------- Total investments 335,388 95,451 14,293 61,952 239,793 257,136 Dividend and interest receivable 70 Transfers receivable from EIP 1 2,417 6 Contributions receivable 980 453 80 330 1,271 669 1,637 Other receivable/(payable), net 196 89 14 621 291 (790) 635 -------- ------- ------- ------- -------- ------- -------- Net assets $339,051 $95,993 $14,387 $62,909 $241,355 $82,760 $259,408 ======== ======= ======= ======= ======== ======= ========
Preferred Group of Mutual Funds ----------------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------ ----- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ 14,088 Common stock 321,300 Registered investment companies 58,253 23,844 42,626 876,229 Participant loans 23,247 23,247 -------- -------- -------- ------- ---------- Total investments 58,253 23,844 42,626 23,247 1,234,864 Dividend and interest receivable 70 Transfers receivable from EIP 1 2,423 Contributions receivable 405 138 364 6,327 Other receivable/(payable), net 50 (173) 71 (836) 168 -------- -------- -------- -------- ---------- Net assets $ 58,708 $ 23,809 $ 43,061 $ 22,411 $1,243,852 ======== ======== ======== ======== ==========
-10-
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 Asset Fixed Fund Fund Government Market Value International Growth Allocation Income ------ --------- ---------- ------ ----- ------------- ------ ---------- ------ 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 47,001 22,152 Participant loans -------- -------- ------- ------- ------- ------ ------- -------- ------- Total investments 181,935 103,382 14,528 85,349 182,982 85,207 194,217 47,001 22,152 Dividend and interest receivable 56 Transfers receivable from EIP 1 4,863 35 Contributions receivable 536 542 87 318 983 649 1,421 354 153 Other receivable/(payable), net 361 519 4 (254) 97 (37) (18) 273 (25) -------- -------- ------- ------- -------- ------- --------- -------- ------- Net assets $187,751 $104,443 $14,619 $85,448 $184,062 $85,819 $195,620 $47,628 $22,280 ======== ======== ======= ======= ======== ======= ========= ======== =======
Small Loan Cap Fund Total --- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ 11,311 Common stock 170,624 Registered investment companies 18,215 753,033 Participant loans 20,821 20,821 -------- -------- --------- Total investments 18,215 20,821 955,789 Dividend and interest receivable 56 Transfers receivable from EIP 1 4,898 Contributions receivable 157 5,200 Other receivable/(payable), net (762) 158 -------- -------- --------- Net assets $ 18,372 $ 20,059 $ 966,101 ======== ======== =========
-11- CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN -------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1997 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds ---------------------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Asset Fund Fund Government Market Value International Growth Allocation ---------- --------- ---------- ------ ------- ------------- ------ ---------- Investment income:- Interest $ 813 $ $ $ $ $ $ $ Dividends 4,760 Net appreciation in fair value of: Common stock 45,824 Registered investment companies 6,253 866 4,021 53,130 6,865 62,329 10,267 -------- -------- ------- -------- -------- -------- -------- ------- Net investment income 51,397 6,253 866 4,021 53,130 6,865 62,329 10,267 -------- -------- ------- -------- -------- -------- -------- ------- Contributions to all plans 9,320 5,347 884 4,431 14,573 8,309 18,272 4,716 -------- -------- ------- -------- -------- -------- -------- ------- Withdrawals from all plans (12,273) (5,285) (505) (10,252) (6,680) (2,485) (6,999) (2,125) -------- -------- ------- -------- -------- -------- -------- ------- Transfers from EIP 1 53,246 589 -------- -------- ------- -------- -------- -------- -------- ------- Interfund transfers, net 49,610 (14,765) (1,477) (21,328) (3,730) (15,748) (9,814) (1,778) -------- -------- ------- -------- -------- -------- -------- ------- Increase (decrease) in net assets 151,300 (8,450) (232) (22,539) 57,293 (3,059) 63,788 11,080 Net assets: Beginning of year 187,751 104,443 14,619 85,448 184,062 85,819 195,620 47,628 -------- -------- ------- -------- -------- -------- -------- ------- End of year $339,051 $ 95,993 $14,387 $ 62,909 $241,355 $ 82,760 $259,408 $58,708 ======== ======== ======= ======== ======== ======== ======== ======= Preferred Group of Mutual Funds ------------------- Fixed Small Loan Income Cap Fund Total ------- ------- ------- ---------- Investment income:- Interest $ $ $ 1,887 $ 2,700 Dividends 4,760 Net appreciation in fair value of: Common stock 45,824 Registered investment companies 1,757 6,494 151,982 ------- ------- ------- ---------- Net investment income 1,757 6,494 1,887 205,266 ------- ------- ------- ---------- Contributions to all plans 1,726 3,157 70,735 ------- ------- ------- ---------- Withdrawals from all plans (1,019) (523) (503) (48,649) ------- ------- ------- ---------- Transfers from EIP 1 53,835 ------- ------- ------- ---------- Interfund transfers, net (935) 15,561 968 (3,436) ------- ------- ------- ---------- Increase (decrease) in net assets 1,529 24,689 2,352 277,751 ------- ------- ------- ---------- Net assets: Beginning of year 22,280 18,372 20,059 966,101 ------- ------- ------- ---------- End of year $23,809 $43,061 $22,411 $1,243,852 ======= ======= ======= ==========
-12- 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 Fund Fund Government Market Value International Growth Allocation ---------- --------- ---------- ------ ------- ------------- -------- ---------- 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 -------- -------- ------- -------- -------- -------- -------- ------- Net investment income 45,523 5,258 615 3,612 35,676 12,181 31,039 5,796 -------- -------- ------- -------- -------- -------- -------- ------- Contributions to all plans 5,135 6,096 978 3,781 10,442 7,601 16,182 3,858 -------- -------- ------- -------- -------- -------- -------- ------- Withdrawals from all plans (7,437) (7,519) (1,093) (12,848) (5,166) (2,088) (5,126) (1,723) -------- -------- ------- -------- -------- -------- -------- ------- 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 -------- -------- ------- -------- -------- -------- -------- ------- Increase (decrease) in net assets 29,055 7,028 1,799 22,401 50,466 19,604 32,462 12,360 Net assets: Beginning of year 158,696 97,415 12,820 63,047 133,596 66,215 163,158 35,268 -------- -------- ------- -------- -------- -------- -------- ------- End of year $187,751 $104,443 $14,619 $ 85,448 $184,062 $ 85,819 $195,620 $47,628 ======== ======== ======= ======== ======== ======== ======== ======= Preferred Group of Mutual Funds ------------------- Fixed Small Loan 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 520 2,219 96,916 ------- ------- ------- ---------- Net investment income 520 2,219 1,521 143,960 ------- ------- ------- ---------- Contributions to all plans 1,869 1,314 57,256 ------- ------- ------- ---------- Withdrawals from all plans (1,489) (307) (422) (45,218) ------- ------- ------- ---------- Transfers from EIP 1 50,688 ------- ------- ------- ---------- Interfund transfers, net (1,771) 15,146 3,239 (9,672) ------- ------- ------- ---------- Increase (decrease) in net assets (871) 18,372 4,338 197,014 Net assets: Beginning of year 23,151 15,721 769,087 ------- ------- ------- ---------- End of year $22,280 $18,372 $20,059 $ 966,101 ======= ======= ======= ==========
-13- ADDITIONAL INFORMATION ----------------------- SCHEDULE I ---------- CATERPILLAR INC. TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1997 -----------------
(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 ---------------- --------------------------------- ---- ----- Caterpillar Inc. 401(k) Master Trust $128,334,962 $194,494,000 ============ ============ American Century Equity Growth; 937.05 units $ $ 17,841 20th Century Emerging Markets; 1,123.60 units 4,596 Gas Index; 16.68 units 304 Baron Small Cap; 993.05 units 10,238 Asset Fund; 1,118.67 units 54,267 Brinson U.S. Equity; 114.81 units 2,018 Cohen & Steers Realty Shares Inc.; 220.86 units 11,083 Dreyfus Small Company Value Fund; 1,009.94 units 21,280 Aggressive Value; 245.36 units 5,766 Fidelity Dividend Growth; 131.64 units 3,063 Value Fund; 133.93 units 7,238 Worldwide Fund; 240.77 units 3,840 Select Utilities Growth; 60.37 units 2,951 Select Retailing; 41.80 units 1,883 Select Energy Service; 30.81 units 938 Select American Gold; 61.96 units 925 Select Electronics; 36.10 units 1,112 Guinness Flight China Hong Kong Fund; 224.72 units 2,901 Flight Asia Small Cap; 413.33 units 4,022 Flight Asia Blue Chip; 20.38 units 165 Harris Associates Oakmark Fund; 306.24 units 12,375 Hotchkis & Wiley International Fund; 265.30 units 6,014 Interactive Tech Value Fund; 97.14 units 2,531 Medical Specialists; 300 units 3,036 Technology Leaders; 300 units 3,015 Invesco Strategic Health Sciences Fund; 80.36 units 3,951 Strategic Financial Services; 165.92 units 4,664 Janus High Yield Bond; .29 units 3 Overseas Fund; 1.531.99 units 26,641 Mercury Fund; 537.87 units 8,875 Worldwide Fund; 1,977.59 units 74,713 Growth & Income; 97.74 units 2,263 Olympus Fund; 132.16 units 2,323 Lexington Corporate Leaders Trust B; 124.46 units 1,852 Troika Russia Income; 118.25 units 2,069 Midas Midas Fund; 1,356.77 units 2,863 Montgomery Asset Allocation Fund; 346.41 units 6,561 Emerging Markets Fund; 68.22 units 882 Growth Fund; 712.75 units 15,602 Mutual Series Beacon Fund; 1,453.56 units 20,524 Neuberger and Berman International Fund; 777.00 units 11,243 Genesis Trust Fund; 861.79 units 19,149 Partners Fund; 1,418.88 units 24,774 Oakmark Oakmark Select; 3,266.96 units 57,237 PBHG Growth Fund; 564.87 units 14,342 Technology and Communication Fund; 2615.34 units 45,193
(Continued) -14- SCHEDULE I ----------- CATERPILLAR INC. TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- DECEMBER 31, 1997 -----------------
(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 ---------------- --------------------------------- ---- ----------- Payden & Rygel Growth & Income Class A; 320.83 units $ $ 4,254 Roberston Stephens Global MAT RES Fund; 71.92 units 839 Value Plus and Growth Fund; 270.48 units 6,270 SSGA Small Cap Equity; 46.13 units 970 T Rowe Price European Stock Fund; 1,042.87 units 20,190 Equity Income; 983.16 units 25,631 Financial Services; 42.87 units 667 Health Sciences; 841.64 units 11,497 SSGA Money Market Fund; 179,091.20 units 179,091 State Street Research Aurora Class A; 94.76 units 1,858 Global Class A; 455.71 units 9,415 Stein Roe Growth Fund; 86.67 units 2,990 Young Investor Fund; 552.50 units 12,868 Strong Corporate Bond Fund; 310.52 units 3,478 Growth Fund; 1,779.53 units 32,583 Growth & Income; 159.11 units 2,595 Common stock; 113.84 units 2,393 United Services U.S. World Gold Fund; 549.05 units 6,122 Vanguard Index Trust - Growth Portfolio; 712.73 units 16,058 Vanguard/Wellesey Income Fund; 551.87 units 12,064 U.S. Growth Portfolio; 266.49 units 7,648 International Growth Portfolio; 641.71 units 10,518 Vanguard/Windsor; 2,238.90 units 64,077 Fixed Income Securities Fund - GNMA Portfolio; 3,674.39 units 38,324 Index Trust S&P500; 665.02 units 59,898 Index Trust - Total Stock Market Portfolio; 473.12 units 10,711 Short-Term Treasury; 983.05 units 10,037 Warburg Pincus Small Company Value; 973.96 units 15,973 Health Sciences; 7.03 units 84 ------------- $ 1,098,229 =============
-15- SCHEDULE II - ----------- CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE 5% TRANSACTIONS ------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1997 ------------------------------------
(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) - -------------- --------------------------- -------- ------- ------- ----------- -------- ----------- --------- Baron Asset Fund: Series of 4 purchases $35,881 $ $ $ $35,881 $35,881 $ Sale 30 30 Dreyfus Midcap Value Fund: Purchase 19,400 19,400 19,400 Sale 23,432 23,432 Janus Olympus Fund: Series of 4 purchases 15,095 15,095 15,095 Sale 35,091 35,091 Oakmark Select Fund: Series of 4 purchases 55,259 55,259 55,259 PAPP American Abroad Fund: Purchase 29,918 29,918 29,918 Sale 28,414 28,414
-16-
CATERPILLAR INC. ---------------- TAX DEFERRED SAVINGS PLAN ------------------------- ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1997 ------------------------------------ (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) - -------------- --------------------- -------- -------- -------- ----------- -------- ----------- ---------- PBHG Growth Fund: Series of 3 purchases $ 4,442 $ $ $ $ 4,442 $ 4,442 $ Series of 8 sales 107,052 107,052 Technology and Communication Fund: Series of 16 purchases 111,976 111,976 111,976 Series of 3 sales 69,928 69,928 SSGA Money Market Fund: Series of 312 purchases 794,253 794,253 794,253 Series of 128 sales 789,892 789,892 Vanguard Fixed Income Securities Fund - GNMA Portfolio: Series of 9 purchases 81,918 81,918 81,918 Series of 2 sales 23,966 23,966 Index Trust - S&P500 Fund: Series of 2 purchases 105,758 105,758 105,758 Sale 54,966 54,966 Vanguard/Windsor II Fund: Series of 5 purchases 118,962 118,962 118,962 Sale 52,140 52,140
-17- 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 15, 1998 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 15, 1998 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, 1997 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 and Additional Information December 31, 1997 and 1996 REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- May 15, 1998 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, 1997 and 1996, 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 schedules of assets held for investment purposes and of reportable (5%) transactions are presented for purposes of additional analysis and are not a required part of the basic financial statements but are additional information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 (ERISA). These additional information schedules are the responsibility of the Plan's management. 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. The additional information schedules and the Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The schedules of assets held for investment purposes and of reportable (5%) transactions that accompany the Plan's financial statements do not disclose the historical cost of certain plan assets and certain related sales transactions, held by a Plan custodian. Disclosure of this information is required by ERISA. /s/ Price Waterhouse LLP Exhibit A SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- DECEMBER 31, 1997 ----------------- (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 ---- --------- ---------- ------ ----- -------- ------ ---------- ------ ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ $ $ $ $ Investments in Master Trust Net Assets 7,378 2,669 399 1,339 3,300 936 4,336 468 159 253 ------ ------ ---- ------ ------ ---- ------ ---- ---- ---- Total net assets $7,378 $2,669 399 $1,339 $3,300 $936 $4,336 $468 $159 $253 ====== ====== ==== ====== ====== ==== ====== ==== ==== ====
Fund Information ------------------ Self- Loan Directed Fund Fund Total ---- -------- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $84 $ 84 Investments in Master Trust Net Assets 1,609 22,846 ------ --- ------- Total net assets $1,609 $84 $22,930 ====== === =======
(See notes to financial statements) -2- 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 Stock Principal Short-term Money Inter- Asset Fixed Small Fund Fund Government Market Value national Growth Allocation Income Cap ---- --------- ---------- ------ ----- -------- ------ ---------- ------ ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $ $ $ $ $ $ $ $ $ Investments in Master Trust Net Assets 3,996 2,938 443 1,717 2,514 896 3,201 420 217 130 ------ ------ ---- ------ ------ ---- ------ ---- ---- ---- Total net assets $3,996 $2,938 $443 $1,717 $2,514 $896 $3,201 $420 $217 $130 ====== ====== ==== ====== ====== ==== ====== ==== ==== ====
Fund Information ------------------ Self- Loan Directed Fund Fund Total ---- -------- ----- Investments, at fair value (Notes 2 and 4): Registered investment companies $ $31 $ 31 Investments in Master Trust Net Assets 1,143 17,615 ------ --- ------- Total net assets $1,143 $31 $17,646 ====== === =======
(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, 1997 ----------------- (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 $ 938 $ 297 $ 44 $ 247 $ 425 $ 187 $ 587 $ 90 $ 32 $ 51 ------ ----- ----- ------ ------ ----- ------ ----- ----- ---- Investment income: Net appreciation in fair value of registered investment companies Plan interest in net investment gain of Master Trust (Note 4) 1,105 177 25 80 734 66 1,014 91 16 35 ------ ----- ----- ------ ------ ----- ------ ----- ----- ---- Withdrawals (158) (128) (49) (58) (187) (23) (227) (50) (38) (1) Transfers (to)/from other plans, net (131) 16 (4) (52) 94 (1) (19) (4) 1 Interfund transfers, net 1,628 (631) (60) (595) (280) (189) (220) (79) (68) 37 ------ ----- ----- ------ ------ ----- ------ ----- ----- ---- Withdrawals and transfers, net 1,339 (743) (113) (705) (373) (213) (466) (133) (106) 37 ----- ----- ----- ------ ------ ----- ------ ----- ----- ---- Increase (decrease) in net assets 3,382 (269) (44) (378) 786 40 1,135 48 (58) 123 Net assets: Beginning of year 3,996 2,938 443 1,717 2,514 896 3,201 420 217 130 ----- ----- ---- ------ ------ ----- ------ ----- ----- --- End of year $7,378 $2,669 $399 $1,339 $3,300 $ 936 $4,336 $ 468 $ 159 $253 ====== ====== ==== ====== ====== ===== ====== ===== ===== ====
Fund Information ------------------ Self- Loan Directed Fund Fund Total ---- -------- ----- Participant contributions $ $ $ 2,898 ------ --- ------- Plan interest in net investment gain of Master Trust (Note 4) 117 2 3,462 ------ --- ------- Withdrawals (36) (955) Transfers (to)/from other plans, net (13) (8) (121) Interfund transfers, net 398 59 ------ --- ------- Withdrawals and transfers, net 349 51 (1,076) ------ --- ------- Increase (decrease) in net assets 466 53 5,284 Net assets: Beginning of year 1,143 31 17,646 ------ --- ------- End of year $1,609 $84 $22,930 ====== === =======
(See notes to financial statements) -4- 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- Asset Fund Fund Government Market Value national Growth Allocation ---- ---- ---------- ------ ----- -------- ------ ---------- Participant contributions $ 490 $ 376 $ 54 $ 238 $ 292 $ 174 $ 493 $ 74 ------ ------ ---- ------ ------ ----- ------ ----- Plan interest in net investment gain of Master Trust (Note 4) 964 117 20 74 453 122 512 60 ------ ------ ---- ------ ------ ----- ------ ----- Withdrawals (427) (306) (36) (36) (116) (25) (176) (100) Transfers (to)/from other plans, net 130 (1) (6) (24) (9) (25) (13) Interfund transfers, net (147) (274) (2) 171 281 (82) (245) 13 ------ ------ ---- ------ ------ ----- ------ ----- Withdrawals and transfers, net (444) (580) (39) 129 141 (116) (446) (100) ------ ------ ---- ------ ------ ----- ------ ----- Increase (decrease) in net assets 1,010 (87) 35 441 886 180 559 34 Net assets: Beginning of year 2,986 3,025 408 1,276 1,628 716 2,642 386 ------ ------ ---- ------ ------ ----- ------ ----- End of year $3,996 $2,938 $443 $1,717 $2,514 $ 896 $3,201 $ 420 ====== ====== ==== ====== ====== ===== ====== ===== ------------------------------------ --------------- Self- Fixed Small Loan Directed Income Cap Fund Fund Total ------ ----- ---- -------- ----- Participant contributions $ 42 $ 16 $ $ $ 2,249 ---- ---- ------ --- ------- Plan interest in net investment gain of Master Trust (Note 4) 7 10 81 2,420 ---- ---- ------ --- ------- Withdrawals (7) (38) (1,267) Transfers (to)/from other plans, net (11) (30) 11 Interfund transfers, net (30) 104 180 31 ---- ---- ------ --- ------- Withdrawals and transfers, net (48) 104 112 31 (1,256) ---- ---- ------ --- ------- Increase (decrease) in net assets 1 130 193 31 3,413 Net assets: Beginning of year 216 950 14,233 ---- ---- ------ --- ------- End of year $217 $130 $1,143 $31 $17,646 ==== ==== ====== === =======
(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), a 100%-owned subsidairy of Caterpillar Inc., 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 1997, the compensation deferral was limited to (a) the greater of $5,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,500 in 1997) for participants earning in excess of $75,000 or (b) $9,500 for participants earning less than $75,000. 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 $70,000 or (b) $9,500 for participants earning less than $70,000. -6- 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 to 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. Shares of registered investment companies included in the self- directed fund option are valued at quoted market prices which represent the net asset value of shares held by the Plan at year end. Income from investments is recorded as earned. Administrative expenses - ----------------------- Administrative costs, including trustee fees and certain investment costs, are paid by Caterpillar Inc. -7- 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 as follows:
Caterpillar Common Stock Fund ----------------------------- Units Unit value Units Unit value ----- ----------- ----- ---------- January 174 27.49 July 185 38.94 February 155 27.72 August 201 40.22 March 152 28.36 September 215 37.49 April 146 31.32 October 220 35.73 May 161 34.20 November 219 33.60 June 171 37.40 December 217 34.00
-8- 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 Caterpillar Inc. 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 Small Cap Fund. CIML also managed the Preferred Short-term Government Fund through October 1997. 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, 1997 and 1996 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At December 31, 1997 and 1996, 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:
1997 1996 ----- ----- Caterpillar Inc. Common Stock Fund 2.18% 2.13% Preferred Stable Principal Fund 2.78% 2.81% Preferred Short-term Government Fund 2.78% 3.03% Preferred Money Market Fund 2.13% 2.01% Preferred Value Fund 1.37% 1.37% Preferred International Fund 1.13% 1.04% Preferred Growth Fund 1.67% 1.64% Preferred Asset Allocation Fund .81% .88% Preferred Fixed Income Fund .68% .97% Preferred Small Cap Fund .59% .71% Loan Fund .77% 5.70%
Investment valuation - -------------------- The Master Trust's investments are stated at fair value. Common stock and cash and cash equivalents 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. 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 10 through 13 for analyses of the net assets and changes in net assets of the investments of the Master Trust as of December 31, 1997 and 1996. -9- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- DECEMBER 31, 1997 ----------------- (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 $ 14,088 $ $ $ $ $ $ Common stock 321,300 Registered investment companies 95,451 14,293 61,952 239,793 82,881 257,136 Participant loans -------- ------- ------- ------- -------- ------- -------- Total investments 335,388 95,451 14,293 61,952 239,793 82,881 257,136 Dividend and interest receivable 70 Transfers receivable from EIP 1 2,417 6 Contributions receivable 980 453 80 330 1,271 669 1,637 Other receivable/(payable), net 196 89 14 621 291 (790) 635 -------- ------- ------- ------- -------- ------- -------- Net assets $339,051 $95,993 $14,387 $62,909 $241,355 $82,760 $259,408 ======== ======= ======= ======= ======== ======= ========
Preferred Group of Mutual Funds ----------------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------ ----- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ 14,088 Common stock 321,300 Registered investment companies 58,253 23,844 42,626 876,229 Participant loans 23,247 23,247 ------- ------- ------- ------- ---------- Total investments 58,253 23,844 42,626 23,247 1,234,864 Dividend and interest receivable 70 Transfers receivable from EIP 1 2,423 Contributions receivable 405 138 364 6,327 Other receivable/(payable), net 50 (173) 71 (836) 168 ------- ------- ------- ------- ---------- Net assets $58,708 $23,809 $43,061 $22,411 $1,243,852 ======= ======= ======= ======= ==========
-10- 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 ---- ---- ---------- ------ ----- ------------- 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 Participant loans -------- -------- ------- ------- -------- ------- Total investments 181,935 103,382 14,528 85,349 182,982 85,207 Dividend and interest receivable 56 Transfers receivable from EIP 1 4,863 35 Contributions receivable 536 542 87 318 983 649 Other receivable/(payable), net 361 519 4 (254) 97 (37) -------- -------- ------- ------- -------- ------- Net assets $187,751 $104,443 $14,619 $85,448 $184,062 $85,819 ======== ======== ======= ======= ======== =======
Preferred Group of Mutual Funds --------------------------------------- Asset Fixed Small Loan Growth Allocation Income Cap Fund Total ------ ---------- ------ ----- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ $ 11,311 Common stock 170,624 Registered investment companies 194,217 47,001 22,152 18,215 753,033 Participant loans 20,821 20,821 -------- ------- ------- ------- ------- -------- Total investments 194,217 47,001 22,152 18,215 20,821 955,789 Dividend and interest receivable 56 Transfers receivable from EIP 1 4,898 Contributions receivable 1,421 354 153 157 5,200 Other receivable/(payable), net (18) 273 (25) (762) 158 -------- ------- ------- ------- ------- -------- Net assets $195,620 $47,628 $22,280 $18,372 $20,059 $966,101 ======== ======= ======= ======= ======= ========
-11- SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN --------------------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1997 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds Caterpillar -------------------------------------------------------------- Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International ---- ---- ---------- ------ ----- ------------- Investment income:- Interest $ 813 $ $ $ $ $ Dividends 4,760 Net appreciation in fair value of: Common stock 45,824 Registered investment companies 6,253 866 4,021 53,130 6,865 -------- -------- ------- ------- -------- -------- Net investment income 51,397 6,253 866 4,021 53,130 6,865 -------- -------- ------- ------- -------- -------- Contributions to all plans 9,320 5,347 884 4,431 14,573 8,309 -------- -------- ------- ------- -------- -------- Withdrawals from all plans (12,273) (5,285) (505) (10,252) (6,680) (2,485) -------- -------- ------- ------- -------- -------- Transfers from EIP 1 53,246 589 -------- -------- ------- ------- -------- -------- Interfund transfers, net 49,610 (14,765) (1,477) (21,328) (3,730) (15,748) -------- -------- ------- ------- -------- -------- Increase (decrease) in net assets 151,300 (8,450) (232) (22,539) 57,293 (3,059) Net assets: Beginning of year 187,751 104,443 14,619 85,448 184,062 85,819 -------- -------- ------- ------- -------- -------- End of year $339,051 $ 95,993 $14,387 $62,909 $241,355 $ 82,760 ======== ======== ======= ======= ======== ========
Preferred Group of Mutual Funds ----------------------------- Asset Fixed Small Loan Growth Allocation Income Cap Fund Total ------ ---------- ------ --- ---- ----- Investment income:- Interest $ $ $ $ $ 1,887 $ 2,700 Dividends 4,760 Net appreciation in fair value of: Common stock 45,824 Registered investment companies 62,329 10,267 1,757 6,494 151,982 -------- ------- ------- ------- ------- ---------- Net investment income 62,329 10,267 1,757 6,494 1,887 205,266 -------- ------- ------- ------- ------- ---------- Contributions to all plans 18,272 4,716 1,726 3,157 70,735 -------- ------- ------- ------- ------- ---------- Withdrawals from all plans (6,999) (2,125) (1,019) (523) (503) (48,649) -------- ------- ------- ------- ------- ---------- Transfers from EIP 1 53,835 -------- ------- ------- ------- ------- ---------- Interfund transfers, net (9,814) (1,778) (935) 15,561 968 (3,436) -------- ------- ------- ------- ------- ---------- Increase (decrease) in net assets 63,788 11,080 1,529 24,689 2,352 277,751 Net assets: Beginning of year 195,620 47,628 22,280 18,372 20,059 966,101 -------- ------- ------- ------- ------- ---------- End of year $259,408 $58,708 $23,809 $43,061 $22,411 $1,243,852 ======== ======= ======= ======= ======= ==========
-12- 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 ----------- --------- ---------- ------ ----- ------------- 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 -------- -------- ------- -------- -------- ------- Net investment income 45,523 5,258 615 3,612 35,676 12,181 -------- -------- ------- -------- -------- ------- Contributions to all plans 5,135 6,096 978 3,781 10,442 7,601 -------- -------- ------- -------- -------- ------- Withdrawals from all plans (7,437) (7,519) (1,093) (12,848) (5,166) (2,088) -------- -------- ------- -------- -------- ------- Transfers from EIP 1 50,104 584 -------- -------- ------- -------- -------- ------- Interfund transfers, net (64,270) 3,193 1,299 27,272 9,514 1,910 -------- -------- ------- -------- -------- ------- Increase (decrease) in net assets 29,055 7,028 1,799 22,401 50,466 19,604 Net assets: Beginning of year 158,696 97,415 12,820 63,047 133,596 66,215 -------- -------- ------- -------- -------- ------- End of year $187,751 $104,443 $14,619 $ 85,448 $184,062 $85,819 ======== ======== ======= ======== ======== =======
Preferred Group of Mutual Funds ---------------------------------------------- Asset Fixed Small Loan Growth 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 31,039 5,796 520 2,219 96,918 -------- ------- ------- ------- ------- -------- Net investment income 31,039 5,796 520 2,219 1,521 143,960 -------- ------- ------- ------- ------- -------- Contributions to all plans 16,182 3,858 1,869 1,314 57,256 -------- ------- ------- ------- ------- -------- Withdrawals from all plans (5,126) (1,723) (1,489) (307) (422) (45,218) -------- ------- ------- ------- ------- -------- Transfers from EIP 1 50,688 -------- ------- ------- ------- ------- -------- Interfund transfers, net (9,633) 4,429 (1,771) 15,146 3,239 (9,672) -------- ------- ------- ------- ------- -------- Increase (decrease) in net assets 32,462 12,360 (871) 18,372 4,338 197,014 Net assets: Beginning of year 163,158 35,268 23,151 15,721 769,087 -------- ------- ------- ------- ------- -------- End of year $195,620 $47,628 $22,280 $18,372 $20,059 $966,101 ======== ======= ======= ======= ======= ========
-13- SCHEDULE I SOLAR TURBINES INCORPORATED SAVINGS AND INVESTMENT PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997
(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 ------------------ --------------------------------- ---- ----- Caterpillar Inc. 401(k) Master Trust $15,819,100 $22,846,000 =========== =========== Founders Growth Fund; 249.53 units $ $ 4,312 PBHG Growth Fund; 353.73 units 8,981 SSGA Money Market Fund; 31,143.07 units 31,143 Stein Roe Capital Opportunities Fund; 143.73 units 4,289 Strong Government Securities; 1,396.65 15,014 Vanguard Fixed Income Securities Long-Term Portfolio; 1,611.17 14,919 Warburg Pincus Emerging Growth Fund; 151.08 units 5,706 ----------- $ 84,364 ===========
-14- ADDITIONAL INFORMATION ----------------------- SCHEDULE II SOLAR TURBINES INCORPORATED --------------------------- SAVINGS AND INVESTMENT PLAN --------------------------- ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS --------------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1997 ------------------------------------
(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) - -------------- ----------------------------------- -------- ------- ------- ----------- -------- ----------- --------- SSGA Money Market Fund: Series of 25 purchases $60,272 $ $ $ $60,272 $60,272 $ Series of 4 sales $30,124 30,124 Strong Government Securities Fund: Purchase 15,000 15,000 15,000 Vanguard Fixed Income Securities Fund - GNMA Purchase 15,034 15,034 15,034
-15- 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 15, 1998 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 15, 1998 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 November 30, 1997 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 EMPLOYEES' 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. Caterpillar Inc. Employees' Investment Plan Financial Statements And Additional Information November 30, 1997 and 1996 REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- May 15, 1998 To the Participants, Investment Plan Committee and Benefits Funds Committee of the Caterpillar Inc. Employees' Investment Plan In our opinion, the accompanying statements of net assets available for plan benefits of the Caterpillar Inc. Employees' 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 November 30, 1997 and 1996, 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 schedules of assets held for investment purposes and of reportable (5%) transactions are presented for purposes of additional analysis and are not a required part of the basic financial statements but are additional information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 (ERISA). These additional information schedules are the responsibility of the Plan's management. 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. The additional information schedules and the Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The schedule of assets held for investment purposes that accompanies the Plan's financial statements does not disclose the historical cost of certain plan assets held by a Plan custodian. Disclosure of this information is required by ERISA. /s/ Price Waterhouse LLP Exhibit A CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- NOVEMBER 30, 1997 ----------------- (Dollars in 000's)
Fund Information ----------------------------------------------------------------------------------------------- PART 1 PART 2 ------------------------- -------------------------------------------------------------------- Preferred Group of Mutual Funds Caterpillar Government Caterpillar ------------------------------------------------------- Common Short-term Common Stable Stock Investment Stock Principal Short-term Money Fund Fund Fund Fund Government Market Value International ------------ ----------- ----------- --------- ---------- ------- -------- ------------- Investments, at fair value (Notes 2 and 4): Cash and cash equivalents $ 157 $ $ $ $ $ $ $ Caterpillar Inc. common stock, 18,598,394 shares 891,561 Collective trust fund 13,078 Registered investment companies Investment in Master Trust Net Assets 287,108 66,845 10,942 52,945 194,930 70,390 ------- ------- -------- ------- ------ ------ ------- ------ Total cash and investments 891,718 13,078 287,108 66,845 10,942 52,945 194,930 70,390 Employer and participant contributions receivable 3,191 81 Dividends receivable 11 59 Transfers payable to EIP II (2,955) (42) Other payables (161) -------- ------- -------- ------- ------- ------- -------- -------- Total net assets $891,804 $13,176 $287,108 $66,845 $10,942 $52,945 $194,930 $70,390 ======== ======= ======== ======= ======= ======= ======== ======= Fund Information ----------------------------------------------------------------------- PART 2 ----------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------ Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------------ ----------- ----------- --------- ---------- -------- ------------- Investments, at fair value (Notes 2 and 4): Cash and cash equivalents $ $ $ $ $ $ $ 157 Caterpillar Inc. common stock, 18,598,394 shares 891,561 Collective trust fund 13,078 Registered investment companies 14,108 14,108 Investment in Master Trust Net Assets 209,302 49,400 20,411 37,154 15,554 1,014,981 -------- ------- ------- ------- -------- ------- --------- Total cash and investments 209,302 49,400 20,411 37,154 15,554 14,108 1,933,885 Employer and participant contributions receivable 3,272 Dividends receivable 70 Transfers payable to EIP II (2,997) Other payables (161) -------- ------- ------- ------- ------- ------- --------- Total net assets $209,302 $49,400 $20,411 $37,154 $15,554 $14,108 $1,934,069 ======== ======= ======= ======= ======= ======= ==========
(See notes to financial statements) -2- Exhibit A CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ------------------------------------------------------------------------- NOVEMBER 30, 1996 ----------------- (Dollars in 000's)
Fund Information ----------------------------------------------------------------------------------------------- PART 1 PART 2 ------------------------ -------------------------------------------------------------------- Caterpillar Government Caterpillar Preferred Group of Mutual Funds ------------------------------------------------------- Common Short-term Common Stable Stock Investment Stock Principal Short-term Money Fund Fund Fund Fund Government Market Value International ---- ---- ---- ---- ---------- ------ ----- ------------- Investments, at fair value (Notes 2 and 4): Cash and cash equivalents $ 35 $ $ $ $ $ $ $ Caterpillar Inc. common stock, 19,309,962 shares* 763,950 Collective trust fund 12,649 Registered investment companies Investment in Master Trust Net Assets 157,656 74,392 11,381 77,692 151,276 72,709 -------- --------- -------- ------- ------- ------- -------- ------- Total cash and investments 763,985 12,649 157,656 74,392 11,381 77,692 151,276 72,709 Employer and participant contributions receivable 4,805 107 Dividends receivable 10 53 Transfers payable to EIP II (3,876) (28) -------- --------- -------- ------- ------- ------- -------- ------- Total net assets $764,924 $12,781 $157,656 $74,392 $11,381 $77,692 $151,276 $72,709 ======== ========= ======== ======= ======= ======= ======== ======= Fund Information --------------------------------------------------------------------------- PART 2 --------------------------------------------------------------------------- Preferred Group of Mutual Funds --------------------------------------------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total ------------ ----------- ----------- --------- ---------- -------- ----- Investments, at fair value (Notes 2 and 4): Cash and cash equivalents $ $ $ $ $ $ $ 35 Caterpillar Inc. common stock, 19,309,962 shares* 763,950 Collective trust fund 12,649 Registered investment companies 8,987 8,987 Investment in Master Trust Net Assets 161,657 42,112 20,330 14,653 14,477 798,335 --------- -------- -------- -------- -------- ------- ---------- Total cash and investments 161,657 42,112 20,330 14,653 14,477 8,987 1,583,956 Employer and participant contributions receivable 4,912 Dividends receivable 63 Transfers payable to EIP II (3,904) --------- -------- -------- -------- -------- ------- ---------- Total net assets $161,657 $ 42,112 $ 20,330 $ 14,653 $ 14,477 $ 8,987 $1,585,027 ========= ======== ======== ======== ======== ======= ==========
- ------------------- * Number of shares reflected on a post-split basis, after effect of the 2 for 1 stock split, in July 1997. (See notes to financial statements) -3- Exhibit B CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND ------------------------------------------------------------------------ INFORMATION ----------- FOR THE YEAR ENDED NOVEMBER 30, 1997 ------------------------------------ (Dollars in 000's)
Fund Information ---------------------------------------------------------------------------------------- PART 1 PART 2 -------------------------- ----------------------------------------------------------- Preferred Group of Mutual Funds Caterpillar Government Caterpillar --------------------------------------------- Common Short-Term Common Stable Stock Investment Stock Principal Short-term Money Fund Fund Fund Fund Government Market Value ---- ---- ---- ---- ---------- ------ -------- Contributions: Participant (Note 1) $ 49,157 $ 1,615 $ 4,900 $ 2,923 $ 559 $ 2,871 $ 10,628 Employer (Notes 1 and 2) 28,517 --------- ------- -------- -------- ------- -------- -------- 77,674 1,615 4,900 2,923 559 2,871 10,628 --------- ------- -------- -------- ------- -------- -------- Investment income:- Interest 95 Dividends 16,859 Net appreciation in fair value of: Common stock 160,222 686 Collective trust fund Registered investment companies Plan interest in net investment income of Master Trust (Note 4) 33,703 4,400 593 3,551 42,029 --------- ------- -------- -------- ------- -------- -------- Net investment income 177,176 686 33,703 4,400 593 3,551 42,029 --------- ------- -------- -------- ------- -------- -------- Withdrawals (72,176) (1,288) (10,615) (3,416) (379) (9,226) (5,055) Transfers from other plans, net 281 155 21 265 298 Interfund transfers, net (55,794) (618) 101,183 (11,609) (1,233) (22,208) (4,246) --------- ------- -------- -------- ------- -------- -------- Withdrawals and transfers, net (127,970) (1,906) 90,849 (14,870) (1,591) (31,169) (9,003) --------- ------- -------- -------- ------- -------- -------- Increase (decrease) in net assets 126,880 395 129,452 (7,547) (439) (24,747) 43,654 Net assets: Beginning of year 764,924 12,781 157,656 74,392 11,381 77,692 151,276 --------- ------- -------- -------- ------- -------- -------- End of year $ 891,804 $13,176 $287,108 $ 66,845 $10,942 $ 52,945 $194,930 ========= ======= ======== ======== ======= ======== ========
Fund Information ---------------------------------------------------------------------------------- PART 2 --------------------------------------------------------------------------------- Preferred Group of Mutual Funds ---------------------------------------------------------- Self- Asset Fixed Small Loan Directed International Growth Allocatiion Income Cap Fund Fund Total ------------- ------ ----------- ------ --- ---- ---- ----- Contributions: Participant (Note 1) $ 6,336 $ 13,315 $ 3,464 $ 1,207 $ 2,221 $ $ $ 99,196 Employer (Notes 1 and 2) 28,517 -------- -------- ------- ------- ------- ------- ------- ---------- 6,336 13,315 3,464 1,207 2,221 127,713 -------- -------- ------- ------- ------- ------- ------- ---------- Investment income:- Interest 95 Dividends 16,859 Net appreciation in fair value of: Common stock 160,222 Collective trust fund 686 Registered investment companies 1,108 1,108 Plan interest in net investment income of Master Trust (Note 4) 6,354 47,048 7,484 1,287 6,290 1,340 154,079 -------- -------- ------- ------- ------- ------- ------- ---------- Net investment income 6,354 47,048 7,484 1,287 6,290 1,340 1,108 333,049 -------- -------- ------- ------- ------- ------- ------- ---------- Withdrawals (2,231) (5,341) (1,906) (939) (490) (343) (113,405) Transfers from other plans, net 117 389 52 10 8 82 7 1,685 Interfund transfers, net (12,895) (7,766) (1,806) (1,484) 14,472 (2) 4,006 -------- -------- ------- ------- ------- ------- ------- ---------- Withdrawals and transfers, net (15,009) (12,718) (3,660) (2,413) 13,990 (263) 4,013 (111,720) -------- -------- ------- ------- ------- ------- ------- ---------- Increase (decrease) in net assets (2,319) 47,645 7,288 81 22,501 1,077 5,121 349,042 Net assets: Beginning of year 72,709 161,657 42,112 20,330 14,653 14,477 8,987 1,585,027 -------- -------- ------- ------- ------- ------- ------- ---------- End of year $ 70,390 $209,302 $49,400 $20,411 $37,154 $15,554 $14,108 $1,934,069 ======== ======== ======= ======= ======= ======= ======= ==========
(See notes to financial statements) -4- Exhibit B CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND ------------------------------------------------------------------------ INFORMATION ----------- FOR THE YEAR ENDED NOVEMBER 30, 1996 ------------------------------------ (Dollars in 000's)
Fund Information ------------------------------------------------------------------------------------------------------ PART 1 PART 2 ----------------------- ---------------------------------------------------------------------------- Preferred Group of Mutual Funds Caterpillar Government Caterpillar -------------------------------------------------------------- Common Short-Term Common Stable Stock Investment Stock Principal Short-term Money Fund Fund Fund Fund Government Market Value International ----------- ---------- ----------- --------- ---------- --------- --------- ------------- Contributions: Participant (Note 1) $ 43,404 $ 1,803 $ 2,788 $ 3,348 $ 609 $ 2,403 $ 7,716 $ 5,816 Employer (Notes 1 and 2) 25,222 --------- ---------- ---------- --------- ---------- --------- --------- ------------- 68,626 1,803 2,788 3,348 609 2,403 7,716 5,816 --------- ---------- ---------- --------- ---------- --------- --------- ------------- Investment income:- Interest 84 Dividends 14,548 Net appreciation (depreciation) in fair value of: Common stock 175,389 Collective trust fund 645 Registered investment companies Plan interest in net investment income of Master Trust (Note 4) 41,040 3,849 544 2,978 30,918 10,214 --------- ---------- ---------- --------- ---------- --------- --------- ------------- Net investment income 190,021 645 41,040 3,849 544 2,978 30,918 10,214 --------- ---------- ---------- --------- ---------- --------- --------- ------------- Withdrawals (66,096) (1,264) (6,181) (4,982) (1,064) (11,717) (3,685) (1,724) Transfers from other plans, net 68 106 6 96 72 52 Interfund transfers, net (47,834) (563) (25,357) 6,746 1,665 30,382 11,279 3,038 --------- ---------- ---------- --------- ---------- --------- --------- ------------- Withdrawals and transfers, net (113,930) (1,827) (31,470) 1,870 607 18,761 7,666 1,366 --------- ---------- ---------- --------- ---------- --------- --------- ------------- Increase in net assets 144,717 621 12,358 9,067 1,760 24,142 46,300 17,396 Net assets: Beginning of year 620,207 12,160 145,298 65,325 9,621 53,550 104,976 55,313 --------- ---------- ---------- --------- ---------- --------- --------- ------------- End of year $ 764,924 $ 12,781 $ 157,656 $ 74,392 $ 11,381 $ 77,692 $ 151,276 $ 72,709 ========= ========== ========== ========= ========== ========= ========= =============
------------------------------------------------------------------------------- Preferred Group of Mutual Funds ------------------------------------------------------- Self- Asset Fixed Small Loan Directed Growth Allocation Income Cap Fund Fund Total -------- ----------- -------- -------- -------- -------- ---------- Contributions: Participant (Note 1) $ 11,975 $ 2,861 $ 1,321 $ 853 $ $ $ 84,897 Employer (Notes 1 and 2) 25,222 -------- ----------- -------- -------- -------- -------- ---------- 11,975 2,861 1,321 853 110,119 -------- ----------- -------- -------- -------- -------- ---------- Investment income:- Interest 84 Dividends 14,548 Net appreciation (depreciation) in fair value of Common Stock 175,389 Collective trust fund 645 Registered investment companies 494 494 Plan interest in net investment income of Master Trust (Note 4) 24,634 6,327 896 1,506 1,133 124,039 -------- ----------- -------- -------- -------- -------- ---------- Net investment income 24,634 6,327 896 1,506 1,133 494 315,199 -------- ----------- -------- -------- -------- -------- ---------- Withdrawals (3,934) (1,368) (1,365) (231) (222) (103,833) Transfers from other plans, net 122 28 23 36 609 Interfund transfers, net (6,657) 5,167 (25) 12,525 1,141 8,493 -------- ----------- -------- -------- -------- -------- ---------- Withdrawals and transfers, net (10,469) 3,827 (1,367) 12,294 955 8,493 (103,224) -------- ----------- -------- -------- -------- -------- ---------- 26,140 13,015 850 14,653 2,088 8,987 322,094 Net assets: Beginning of year 135,517 29,097 19,480 12,389 1,262,933 -------- ----------- -------- -------- -------- -------- ---------- End of year $161,657 $ 42,112 $ 20,330 $ 14,653 $ 14,477 $ 8,987 $1,585,027 ======== =========== ======== ======== ======== ======== ==========
(See notes to financial statements) -5- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- NOTE 1 - PLAN DESCRIPTION: - ------------------------- The following description of the Caterpillar Inc. Employees' 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 Caterpillar Inc. (the Company) to enable eligible employees of the Company and its subsidiaries (the employers) which adopt the Plan to accumulate funds. Participation - ------------- Generally, employees of participating employer companies, other than those employed under collective bargaining agreements, 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 Investment Plan Committee. Participating eligible employees (the participants) may acquire ownership interests in the Company through purchases of its common stock (Part 1). Additionally, the participants may elect to defer a portion of their compensation until retirement under the Special Investment Supplement of the Plan (Part 2). Participant accounts - -------------------- Accounts are maintained separately for Part 1 and Part 2 for each participant. The participant's separate account under Part 1 is credited with the participant's contribution, the employer's contribution and an allocation of Plan earnings. The participant's account under Part 2 of the Plan 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 accounts. Loan provisions - --------------- The Plan provides for participant loans against eligible participants' Part 2 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 applicable investment fund (from) to the Loan fund. Contributions - ------------- Part 1 - Participant contributions are made through after-tax payroll deductions based on a percentage (2%-6%) of total earnings as elected by the employee. Participants with 25 or more years of service with the employers may contribute an additional 1%-4% of earnings. -6- Employer contributions are 50%, 66-2/3% or 80% of participant contributions (up to 6% of earnings) based on the participant's years of service. Part 2 - Participant contributions are made through a pretax compensation deferral as elected by the participants and are contributed to the Plan by the employer. During 1997, the compensation deferral was limited to (a) the greater of $5,000 or 4% of the participant's compensation (limited by the Internal Revenue Code to $9,500 in 1997) for participants earning in excess of $75,000 or (b) $9,500 for participants earning less than $75,000. 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 $70,000 or (b) $9,500 for participants earning less than $70,000. Investment programs - ------------------- Part 1 - Employer contributions are invested entirely in Caterpillar Inc. common stock. Participants may elect to have their contributions invested as follows: (1) 100% in Caterpillar Inc. common stock or (2) 50% in Caterpillar Inc. common stock and 50% in a Collective Government Short-Term Investment Fund. The Collective Government Short-Term Investment Fund is managed by The Northern Trust Company. Part 2 - 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 to 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 and distribution provisions - ----------------------------------- Part 1 - Participants are fully vested at all times in Caterpillar Inc. common stock or units of the Collective Government Short - Term Investment Fund purchased with participant contributions. Participants begin vesting in shares purchased with employer contributions generally after the end of the second year of plan participation. Participants generally vest at the rate of 33% per year, resulting in full vesting by participants in employer contributions after five years of service with the Company. Any amounts not vested at withdrawal which are forfeited will be applied to reduce the amount of future employer contributions to the Plan. Shares become fully vested upon retirement, permanent disability or death. -7- While an employee, a participant may elect to withdraw all participant purchased shares of common stock, his share of the government short-term investment fund and all earnings on participant contributions as provided by the Plan. Employer contributions may also be withdrawn based on vested status as provided by the Plan. Upon termination of employment, participants may elect (with spousal consent, if applicable) to receive their shares by immediate distribution or a deferred distribution. If termination is due to retirement or disability, participants may elect (with spousal consent, if applicable) various annuity payments. Part 2 - 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 Investment Plan Committee, which is responsible for nonfinancial matters, and the Benefits Funds Committee, which is responsible for financial aspects of the Plan. Caterpillar Inc. and the Benefit Funds Committee have entered into trust agreements with The Northern Trust Company to receive contributions, administer the assets of the Plan and distribute withdrawals pursuant to the Plan. Plan termination - ---------------- In the event the Plan is terminated or partially terminated, each participant in Part 1 shall also have a fully vested interest in the assets attributable to employer contributions. Federal income tax status - ------------------------- The Internal Revenue Service has determined and informed the Company by letter dated March 8, 1990, 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 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 Plan's investments are stated at fair value. The Caterpillar Inc. common stock is valued at quoted market prices. The fair value of the Plan's investment in the Collective Government Short-Term Investment Fund and 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. Shares of registered investment companies included in the self-directed fund option are valued at quoted market prices which represent the net asset value of shares held by the Plan at year end. Income from investments is recorded as earned. -8- Contributions - ------------- Contributions to the Caterpillar Common Stock Fund under Part 1 of the Plan are made directly to the trust and shares are immediately purchased by the trust on the open market. Administrative expenses - ----------------------- Administrative costs, including trustee fees and certain investment 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: - -------------------- Part 2 of the Plan assigns units to participants directing investments to 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 as follows:
Units Unit Value ----- ---------- 1996 ---- December 6,087 26.70 1997 ---- January 6,453 27.49 February 6,107 27.72 March 4,007 28.36 April 5,889 31.32 May 6,074 34.20 June 6,742 37.40 July 7,167 38.94 August 7,416 40.22 September 7,792 37.49 October 7,864 35.73 November 8,545 33.60
-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 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 Small Cap Fund. CIML also managed the Preferred Short-Term Government Fund through October 1997. 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 November 30, 1997 and 1996 market values of net assets, as accumulated by the Trustee for the investment funds of each plan. At November 30, 1997 and 1996, 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: 1997 1996 ------ ------ Caterpillar Inc. Common Stock Fund 86.21% 86.41% Preferred Stable Principal Fund 70.30% 70.95% Preferred Short-Term Government Fund 76.72% 76.97% Preferred Money Market Fund 84.60% 85.58% Preferred Value Fund 81.69% 81.47% Preferred International Fund 85.06% 85.44% Preferred Growth Fund 81.34% 81.37% Preferred Asset Allocation Fund 86.07% 86.84% Preferred Fixed Income Fund 87.45% 88.10% Preferred Small Cap Fund 87.18% 86.35% Loan Fund 69.30% 71.93% Investment valuation - -------------------- The Master Trust's investments are stated at fair value. Common stock and cash and cash equivalents 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. 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 11 through 14 for analyses of the net assets and changes in net assets of the Master Trust as of November 30, 1997 and 1996. -10- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- NOVEMBER 30, 1997 ----------------- (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 $ 14,588 $ $ $ $ $ $ Common stock 314,360 Registered investment companies 94,548 14,174 62,201 237,185 82,017 255,414 Participant loans -------- ------- ------- ------- -------- ------- -------- Total investments 328,948 94,548 14,174 62,201 237,185 82,017 255,414 Dividend and interest receivable 99 Transfers receivable from EIP 1 2,955 42 Contributions receivable 960 399 76 311 1,261 664 1,610 Other receivable/(payable), net 88 136 11 32 174 73 293 -------- ------- ------- ------- -------- ------- -------- Net assets $333,050 $95,083 $14,261 $62,586 $238,620 $82,754 $257,317 ======== ======= ======= ======= ======== ======= ========
Preferred Group of Mutual Funds -------------------------------- Asset Fixed Small Loan Allocation Income Cap Fund Total ---------- ------- -------- -------- ---------- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ 14,588 Common stock 314,360 Registered investment companies 56,985 23,173 42,188 867,885 Participant loans 23,198 23,198 ------- ------- ------- -------- ---------- Total investments 56,985 23,173 42,188 23,198 1,220,031 Dividend and interest receivable 99 Transfers receivable from EIP 1 2,997 Contributions receivable 397 143 360 6,181 Other receivable/(payable), net 21 24 74 (751) 175 ------- ------- ------- ------- ---------- Net assets $57,403 $23,340 $42,622 $22,447 $1,229,483 ======= ======= ======= ======= ==========
-11- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS --------------------------------------------- NOVEMBER 30, 1996 ----------------- (Dollars in 000's)
Preferred Group of Mutual Funds ------------------------------------------------------------ Caterpillar Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International ---- ---- ---------- ------ ----- ------------- Investments, at fair value: Cash and cash equivalents $ 10,453 $ $ $ $ $ Common stock 167,535 Registered investment companies 104,333 14,706 90,561 184,668 84,269 Participant loans -------- -------- ---------- ------- -------- ------- Total investments 177,988 104,333 14,706 90,561 184,668 84,269 Dividend and interest receivable 28 Transfers receivable from EIP 1 3,876 28 Contributions receivable 453 436 69 445 870 592 Other receivable/(payable), net 103 89 10 (256) 149 239 -------- -------- ------- -------- -------- ------- Net assets $182,448 $104,858 $14,785 $90,778 $185,687 $85,100 ======== ======== ======= ======= ======== =======
Preferred Group of Mutual Funds -------------------------------------------------------------------- Asset Fixed Small Loan Growth Allocation Income Cap Fund Total ------ ---------- ------ --- ---- ----- Investments, at fair value: Cash and cash equivalents $ $ $ $ $ $ 10,453 Common stock 167,535 Registered investment companies 197,146 48,053 22,954 16,772 763,462 Participant loans 20,797 20,797 -------- ------- ------- ------- ------- -------- Total investments 197,146 48,053 22,954 16,772 20,797 962,247 Dividend and interest receivable 28 Transfers receivable from EIP 1 3,904 Contributions receivable 1,260 297 132 127 4,681 Other receivable/(payable), net 261 146 (10) 72 (670) 133 -------- ------- ------- ------- ------- -------- Net assets $198,667 $48,496 $23,076 $16,971 $20,127 $970,993 ======== ======= ======= ======= ======= ========
-12- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED NOVEMBER 30, 1997 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds ------------------------------------------------------------- Caterpillar Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International ---- ---- ---------- ------ ----- ------------- Investment income:- Interest $ 796 $ $ $ $ $ Dividends 4,744 Net appreciation in fair value of: Common stock 33,272 Registered investment companies 6,227 774 4,122 51,374 7,320 -------- -------- ------- -------- -------- --------- Net investment income 38,812 6,227 774 4,122 51,374 7,320 -------- -------- ------- -------- -------- --------- Contributions to all plans 8,777 5,437 892 4,416 14,289 8,290 -------- -------- ------- -------- -------- --------- Withdrawals from all plans (11,838) (5,438) (537) (10,417) (6,904) (2,552) -------- -------- ------- -------- -------- --------- Transfers from EIP 1 55,793 618 -------- -------- ------- -------- -------- --------- Interfund transfers, net 59,058 (16,001) (1,653) (26,931) (5,826) (15,404) -------- -------- ------- -------- -------- --------- Increase (decrease) in net assets 150,602 (9,775) (524) (28,192) 52,933 (2,346) Net assets: Beginning of year 182,448 104,858 14,785 90,778 185,687 85,100 -------- -------- ------- -------- -------- --------- End of year $333,050 $ 95,083 $14,261 $ 62,586 $238,620 $ 82,754 ======== ======== ======= ======== ======== ========= Preferred Group of Mutual Funds -------------------------------------------- Asset Fixed Small Loan Growth Allocation Income Cap Fund Total ------ ---------- ------ --- ---- ----- Investment income:- Interest $ $ $ $ $ 1,851 $ 2,647 Dividends 4,744 Net appreciation in fair value of: Common stock 33,272 Registered investment companies 57,870 8,647 1,481 7,239 145,054 -------- ------- ------- ------- ------- ---------- Net investment income 57,870 8,647 1,481 7,239 185,717 -------- ------- ------- ------- ------- ---------- Contributions to all plans 18,060 4,665 1,741 2,951 69,518 -------- ------- ------- ------- ------- ---------- Withdrawals from all plans (6,939) (2,099) (1,036) (560) (530) (48,850) -------- ------- ------- ------- ------- ---------- Transfers from EIP 1 56,411 -------- ------- ------- ------- ------- ---------- Interfund transfers, net (10,341) (2,306) (1,922) 16,021 999 (4,306) -------- ------- ------- ------- ------- ---------- Increase (decrease) in net assets 58,650 8,907 264 25,651 2,320 258,490 Net assets: Beginning of year 198,667 48,496 23,076 16,971 20,127 970,993 -------- ------- ------- ------- ------- ---------- End of year $257,317 $57,403 $23,340 $42,622 $22,447 $1,229,483 ======== ======= ======= ======= ======= ==========
-13- CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN --------------------------------------------- NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS -------------------------------------------------------- FOR THE YEAR ENDED NOVEMBER 30, 1996 ------------------------------------ (Dollars in 000's)
Preferred Group of Mutual Funds Caterpillar ------------------------------------------------------ Common Stable Stock Principal Short-term Money Fund Fund Government Market Value International ----------- --------- ---------- ------ ----- ------------- Investment income:- Interest $ 347 $ $ $ $ $ Dividends 3,633 Net appreciation in fair value of: Common stock 43,310 Registered investment companies 5,528 723 3,508 38,004 11,951 -------- -------- ------- ------- -------- ------- Net investment income 47,290 5,528 723 3,508 38,004 11,951 -------- -------- ------- ------- -------- ------- Contributions to all plans 5,017 6,060 969 3,720 10,170 7,538 -------- -------- ------- ------- -------- ------- Withdrawals from all plans (7,456) (7,311) (1,202) (12,391) (4,908) (2,015) -------- -------- ------- ------- -------- ------- Transfers from EIP 1 47,834 563 -------- -------- ------- ------- -------- ------- Interfund transfers, net (77,121) 4,923 1,474 32,054 12,733 2,377 -------- -------- ------- ------- -------- ------- Increase in net assets 15,564 9,200 1,964 27,454 55,999 19,851 Net assets: Beginning of year 166,884 95,658 12,821 63,324 129,688 65,249 -------- -------- ------- ------- -------- ------- End of year $182,448 $104,858 $14,785 $90,778 $185,687 $85,100 ======== ======== ======= ======= ======== =======
Preferred Group of Mutual Funds ---------------------------------- Asset Fixed Small Loan Growth Allocation Income Cap Fund Total ------ ---------- ------ ----- ---- ----- Investment income:- Interest $ $ $ $ $ 1,489 $ 1,836 Dividends 3,633 Net appreciation in fair value of: Common stock 43,310 Registered investment companies 30,129 7,308 1,021 1,707 99,879 -------- ------- ------- ------- ------- -------- Net investment income 30,129 7,308 1,021 1,707 1,489 148,658 -------- ------- ------- ------- ------- -------- Contributions to all plans 15,965 3,759 1,864 1,157 56,219 -------- ------- ------- ------- ------- -------- Withdrawals from all plans (5,228) (1,702) (1,481) (240) (431) (44,365) -------- ------- ------- ------- ------- -------- Transfers from EIP 1 48,397 -------- ------- ------- ------- ------- -------- Interfund transfers, net (8,267) 5,610 (607) 14,347 3,314 (9,163) -------- ------- ------- ------- ------- -------- Increase in net assets 32,599 14,975 797 16,971 4,372 199,746 Net assets: Beginning of year 166,068 33,521 22,279 15,755 771,247 -------- ------- ------- ------- ------- -------- End of year $198,667 $48,496 $23,076 $16,971 $20,127 $970,993 ======== ======= ======= ======= ======= ========
-14- ADDITIONAL INFORMATION ----------------------- SCHEDULE 1 ---------- CATERPILLAR INC, --------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1997 -----------------
(a) (b) (c) (d) (e) Identity of issue, Description of investment including borrower, lessor maturity date, rate of interest, Current or similar party collateral, per or maturity value Cost value ---------------- ----------------------------------- ---- ------- * Caterpillar Inc. Common stock; 18,598,384 shares $ 413,234,658 $ 891,560,512 ============= =============== * Northern Trust Collective Government Short-Term Investment Fund $ 13,077,699 $ 13,077,699 ============= =============== * Caterpillar 401(k) Master Trust $ 655,686,455 $ 1,014,981,000 ============= =============== Alger Growth Class B; 7,827.51 units $ $ 91,504 American Century Benham Target 2005; 1,198.60 units 79,707 Century Benham Target 2020; 377.08 units 11,305 Century Value; 4,979.83 units 39,839 Century Global Gold; 9,347.46 units 57,674 Century 20th Century Ultra; 434.49 units 14,838 Heritage Fund; 4,464.29 units 4,062 Ariel Growth Class A; 133.19 units 5,541 Artisan International; 5,804.42 units 79,579 Babson Value Fund; 2,981.46 units 142,156 Baron Asset Fund; 7,052.40 units 328,219 Growth and Income Fund; 1,300.35 units 31,547 Small Cap Fund; 460.61 units 4,551 Berger Small Cap Value Retail; 434.53 units 9,586 Small Company Growth Fund; 658.21 units 3,166 New Generation Fund; 93.54 units 1,247 Brinson Brandywine Blue; 3,256.28 units 92,055 Brandywine Fund; 1,147.85 units 38,028 Bull & Bear Gold Investment Limited; 1,550.76 units 7,304 Clipper Clipper Fund; 99 units 8,628 Cohen & Steers Realty Shares: 5,404.28 units 277,239 Colonial Newport Tiger Fund Class A; 35.03 units 321 Crabbe Huson Special; 205.88 units 3,306 Dodge & Co. Balance; 814.82 units 56,833 Stock; 37.94 units 3,783 Dreyfus Premier Worldwide Growth; 366.03 units 9,191 Aggressive Growth Fund; 597.09 units 10,318 Aggressive Value Fund; 1,384.52 units 35,208 Midcap Value Fund; 1,389.53 units 30,014 Small Company Fund; 1,908.82 units 41,479 Large Company Fund; 923.52 units 19,911 New Leaders Fund; 378.55 units 17,852 Focus Trust Investment Fund; 516.98 units 8,137 Founders Blue Chip Fund; 9,350.55 units 79,573 Growth Fund; 590.91 units 11,653 Passport Fund; 1,504.16 units 21,540 Worldwide Fund; 1,386.28 units 33,007 Growth Class; 94.70 units 2,268
(Continued) -15- SCHEDULE I ----------- CATERPILLAR INC. EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1997 -----------------
(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 ---------------- --------------------------------- ---- ------- Franklin Strategic Global Healthcare Fund; 49.95 units $ $ 1,001 Fremont Micro Capital; 156.53 units 3,476 GT Global High Income; 970.25 units 15,291 GAM International Fund; 355.29 units 9,916 Govett Smaller Company Fund; 57.62 units 1,172 Guinness Flight China Fund; 2,717.16 units 37,388 Asia Small Cap; 1,466.89 units 15,065 John Hancock Special Equity B Fund; 571.43 units 14,063 Harbor Bond Fund; 7,802.59 units 90,666 International Growth Fund; 794.72 units 12,890 Harris Associates Oakmark Fund; 7,727.32 units 301,906 Oakmark International; 711.82 units 9,218 Oakmark Small Cap; 3,714.39 units 69,570 Oakmark Select; 3,034.62 units 49,495 Heartland Group Group Mid Cap; 394.63 units 5,087 Small Cap Fund; 3,512.45 units 55,251 Value Plus; 1,680.54 units 28,838 Hotchkis & Wiley International Fund; 6,703.32 units 156,992 IAI Investments Bond; 1,642.94 units 15,591 Capital Appreciation Fund; 1,059.41 units 18,402 Invesco Strategic Gold Fund; 8,492.05 units 20,041 Strategic Financial; 258.77 units 7,807 Strategic Port Utilities; 412.88 units 5,458 Janus Janus Fund; 1,032.40 units 30,549 Growth and Income Fund; 4,417.37 units 111,230 Worldwide Fund; 13,735.33 units 549,413 Twenty Fund; 1,413.67 units 49,931 Flexible Income Fund; 2,327.33 units 23,297 Special Situations; 2,759.03 units 38,268 Olympus Fund; 5,536.63 units 100,379 High Yield Bond; 1,331.35 units 16,054 Enterprise Fund; 322.08 units 10,129 Overseas Fund; 16,226.12 units 287,202 Mercury Fund; 742.34 units 13,822 Balanced Fund; 517.72 units 8,656 Japan Fund VII Investment Fund; 185.30 units 1,388 Kaufmann Income Fund; 16,346.44 units 104,127 Lexington Troika Dialog Russia Income; 193.28 units 3,342 Worldwide Emerging Markets; 614.91 units 6,315 Lindner Bulwark Bulwark; 838.42 units 5,140 Utilities; 1,365.15 units 22,211 Long Loaf Small Caps; 383.54 units 8,691 Loomis Sayles Bond Fund; 990.88 units 13,080 Inut Grade Bond Retail; 1,731.36 units 18,941 MAS Value Fund; 1,322.97 units 26,010
(Continued) -16- SCHEDULE I ---------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1997 -----------------
(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 ---------------- --------------------------------- ---- ----- Managers International Equity Fund; 195.95 units $ $ 9,365 Montgomery Emerging Markets Fund Class R; 3,129.36 units 40,463 Latin America; 385.54 units 4,098 Emerging Asia Fund Class R; 827.32 units 8,910 Global Communication Fund; 124.49 units 2,374 Small Capital Opportunities Fund; 1,952.27 units 37,093 Select 50; 28.49 Units 59,231 Growth Fund; 11,726.17 units 297,610 Mutual Series Shares Fund Class Z; 519.94 units 11,834 Qualified Income Fund; 7,897.07 units 154,625 Beacon Fund; 4,181.32 units 64,476 Discovery Fund; 8,846.24 units 180,286 European Fund; 701.12 units 9,535 Genesis Trust; 3,757.59 units 83,456 Neuberger and Berman Guardian Trust Fund; 2,030.40 units 37,938 Focus Trust Select; 100.62 units 2,098 Northeast Investors CTFS Beneficial Fund; 12,695.36 units 147,139 Oberweis Emerging Growth Fund; 760.24 units 20,374 Oppenheimer Strategic Income Fund Class C; 4,131.36 units 20,161 Papp American Abroad, Inc.; 3,667.23 units 95,788 Payden & Rygal Growth and Income Class A; 4,078.32 units 54,119 PBHG Growth Fund; 19,900.52 units 505,473 Large Capital Growth Fund; 1,367.59 units 25,642 Emerging Growth Fund; 6,250.85 units 146,645 Select Equity Fund; 6,247.82 units 124,394 Technology and Communications Fund; 3,319.83 units 62,313 Small Cap Value; 2,767.29 units 39,295 Mid Cap Value; 2,791.54 units 38,719 Large Cap Value; 976.04 units 12,093 Large CAp 20; 1,062.40 units 13,259 Core Growth Fund; 3,155.57 units 37,583 PIMCO Long-Term U.S. Government; 1,912.07 units 20,039 Perkins Opportunity Fund; 21.26 units 290 Putnam OTC Emerging Growth Fund; 104.31 units 1,650 Robertson Stephens Value Fund; 6,343.25 units 151,477 Contrarian Fund; 2,181.60 units 26,572 Diversified Growth; 1,982.28 units 26,404 Microcap Growth; 3,236.42 units 47,025 Growth and Income Fund; 324.15 units 4,279 Global Natural Resources Fund; 333.73 units 4,082 T Rowe Price Dividend Growth Fund; 528.64 units 10,710 Equity Income Fund; 2,787.79 units 75,911 Cap Appreciation; 421.64 units 6,962 Blue Chip Fund; 634.93 units 15,086 Growth & Income; 840.34 units 22,555
(Continued) -17- SCHEDULE I ---------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1997 -----------------
(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 ------------------ ------------------------------------ ---- ----- Mid Capital Growth Fund; 634.93 units $ $17,849 New Era Fund; 2,713.98 units 78,081 New Horizon Fund; 809.71 units 19,182 International Stock Fund; 1,838.57 units 25,924 European Fund; 2,859.31 units 57,701 International New Asia Fund; 546.45 units 3,202 Science & Technology Fund; 1,769.76 units 55,942 Spectrum Growth Fund; 190.40 units 3,319 Spectrum Income Fund; 3,053.72 units 35,759 Health Sciences; 534.76 units 7,749 Rydex Ursa Fund; 4,095.80 units 23,059 Juno Fund; 1,346.95 units 11,813 Nova Fund; 4,470.88 units 109,268 Safeco Equity Income Fund; 6,600.18 units 132,532 Growth Fund; 308.26 units 7,700 Scudder Mutual Income Gold; 1,031.02 units 7,661 Latin America; 141.66 units 3,728 Growth & Income; 560.20 units 16,229 Seligman Communication Fund; 72.70 units 1,763 SSGA Money Market Fund; 1,958,386.71 units 1,958,387 S&P 500 Index Fund; 5,623.68 units 109,099 Small Cap Fund; 5,075.68 units 110,041 Emerging Market Fund; 1,701.61 units 16,438 SoGen International Fund; 1,263.99 units 35,821 Sound Share Fund Income; 340.25 units 9,813 Stein Roe Income Fund; 1,540.04 units 15,400 Young Investor Fund; 1,771.38 units 40,104 Capital Opportunities Fund; 5,295.60 units 149,336 Growth & Income; 1,155.17 units 26,534 Trust Special Venture; 1,152.96 19,058 Strong Corporate Bond Fund; 644.27 units 84,928 Growth Fund; 6,040.44 units 129,749 Schafer Value Fund; 690.21 units 45,084 Growth & Income; 1,552.08 units 25,842 International Bond Fund; 1,764.99 units 19,962 Income High Yield, 3,610.12 units 43,466 Opportunity Fund; 862.73 units 36,295 Templeton Developing Markets Class I Fund; 287.85 units 4,030 Developing Markets Class II Fund; 2,980.71 units 41,104 World Fund Class I; 1,144.91 units 19,463 Foreign Fund; 1,306.07 units 13,296 Foreign Class II Fund; 1,988.81 units 20,007 Growth Class I Fund; 2,792.26 units 55,287 Third Avenue Value Fund; 2,331.79 units 73,964 Torray Fund; 553.81 units 18,337
(Continued) -18- SCHEDULE I ---------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1997 -----------------
(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 ------------------ ------------------------------------ ---- ----- Tip Small Capital Fund; 164.75 units $ $ 3,997 Oak Value Fund; 571.41 units 12,497 Tweedy Browne Global Value Fund; 10,745.37 units 186,969 American Value Fund; 2,865.03 units 59,822 United Services U.S. World Gold Fund; 3,922.21 units 41,968 Bonnel Growth; 782.82 units 12,674 Global Resources; 678.43 units 4,925 Real Estate; 349.16 units 5,541 Gold Shares Fund; 100,890.73 units 57,508 Value Line Aggressive Income; 1,861.04 units 15,782 Van Wagoner Micro-Cap Fund; 212.24 units 2,369 Emerging Growth Fund; 10,311.44 units 114,560 Mid-Cap Fund; 496.80 units 5,773 Income Post Venture; 77.89 units 783 Vanguard Bond Index Total Bond Market Fund; 3,121.39 units 31,339 Windsor II Portfolio; 2,211.72 units 67,391 Index Trust Fund; 5,558.02 units 498,110 Value Index Fund; 1,761.08 units 36,965 Growth Index Fund; 4,035.03 units 91,192 Stock Market; 5,406.28 units 122,398 International Growth; 2,301.46 units 39,194 Prime Cap; 1,687.72 units 69,821 Asset Allocation; 474.80 units 10,555 Fixed Income; 2,170.39 units 20,033 GNMA Fixed; 2,565.82 units 26,659 Vontobel Eastern European Equity; 1,665.28 units 24,247 Warburg Pincus Capital Appreciation Fund; 1,229.53 units 26,632 Emerging Growth Fund; 553.54 units 21,820 International Equity Fund; 2,695.55 units 54,235 Emerging Markets Fund; 722.22 units 7,381 Post-Venture Capital Fund - Common Shares; 264.07 units 4,648 Small Company Value Fund - Common Shares; 1,731.96 units 31,730 Wasatch Mid-Cap Fund; 246.94 units 5,006 White Oak Growth Stock; 32.91 units 973 Wright International Blue Chip; 947.74 units 15,297 Equifund Netherlands Fund; 641.07 units 6,577 Yacktran Income Fund; 1,281.58 units 19,698 Fidelity Worldwide Fund; 135.80 units 2,299 Diversified International Fund; 3,342.84 units 54,923 Latin America; 274.97 units 4,554 Asset Manager Income; 3,658.99 units 45,445 Spartan Market Index Fund; 325.48 units 22,204 Capital & Income Fund; 1,735.72 units 17,166
(Continued) -19- SCHEDULE I ---------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- NOVEMBER 30, 1997 -----------------
(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 ------------------ ------------------------------------ ---- ----- Stock Selector Fund; 2,727.86 units $ $ 82,354 Asset Manager: Growth Fund; 128.51 units 2,593 Contra Fund; 2,718.72 units 135,827 Utilities; 1,189.03 units 24,589 Equity - Income; 1,932.01 units 102,203 Real Estate Investment Portfolio; 4,928.11 units 102,307 Equity - Income Fund II; 1,631.23 units 46,996 Spartan High Income Fund; 5,861.45 units 78,192 Mortgage Securities Portfolio; 1,952.66 units 21,479 Magellan Fund; 72.78 units 7,157 Puritan Fund; 3,218.62 units 63,085 Low-Priced Stock Fund; 306.95 units 7,812 Growth and Income Portfolio; 1,952.92 units 73,430 Dividend Growth Fund; 1,435.83 units 34,445 Select Energy Portfolio; 451.93 units 10,941 Select Technology Portfolio; 711.22 units 39,921 Select Health Care Portfolio; 101.58 units 11,744 Select Utilities Growth Portfolio; 72.87 units 3,981 Select Natural Gas Portfolio; 500.28 units 6,644 Select Developing Communications Portfolio; 585.58 units 13,814 Select Home Finance Portfolio; 1,691.86 units 90,024 Select Energy Service Portfolio; 1,317.85 units 40,656 Select Biotechnology; 82.17 units 2,969 Select American Gold Portfolio; 161.55 units 2,299 Select Telecommunication Portfolio; 615.84 units 31,776 Select Food and Agriculture Portfolio; 56.03 units 2,758 Select Electronics Portfolio; 6,828.89 units 282,648 Select Computers Portfolio; 425.14 units 21,397 Select Insurance; 77.34 units 3,017 Select Financial Services; 82.35 units 8,076 Select Regional Banks; 3,109.06 units 125,917 Select Software & Computer; 194.59 units 8,564 Select Brokerage & Investment; 716.07 units 25,485 Select Precious Metals; 996.23 units 9,185 Value Fund; 1,244.63 units 76,831 ----------- $14,108,441 ===========
-20- SCHEDULE II ----------- CATERPILLAR INC. ---------------- EMPLOYEES' INVESTMENT PLAN -------------------------- ITEM 27d - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS --------------------------------------------------- FOR THE YEAR ENDED NOVEMBER 30, 1997 ------------------------------------
(a) (b) (c) (d) (e) Identity of Purchase Selling Lease party involved Description of assets price price rental - -------------- --------------------- -------- ------- ------ Caterpillar Inc. Common stock: Series of 50 purchases $95,943,945 $ $ (f) (g) (h) (i) Current value Expense of asset on incurred with Cost transaction Net gain transaction of asset date or (loss) ----------- -------- ---- --------- $60,000 $95,943,945 $95,883,945 $
-21- EXHIBIT C --------- CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Forms S-8 (No. 33-3718, as amended, and No. 33-39280) of Caterpillar Inc. of our report dated May 15, 1998 related to the financial statements of the Employees' Investment Plan, which is included in this Annual Report on Form 11-K. /s/ PRICE WATERHOUSE LLP Peoria, Illinois May 15, 1998 -----END PRIVACY-ENHANCED MESSAGE-----