<PAGE>
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, 1995
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)
<PAGE>
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.
<PAGE>
SOLAR TURBINES INCORPORATED
SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 3, 1996
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, 1995 and 1994, 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 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 Fund
Information has been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ Price Waterhouse LLP
Peoria, Illinois
<PAGE>
EXHIBIT A
---------
Page 1
SOLAR TURBINES INCORPORATED
---------------------------
SAVINGS AND INVESTMENT PLAN
---------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
DECEMBER 31, 1995
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(Notes 2 and 4):
Investment in Master Trust
Net Assets $2,986 $ - $3,025 $408 $1,276 $1,628 $716
====== ==== ====== ==== ====== ====== ====
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------ ---------- ------ ------ -------
<S> <C> <C> <C> <C> <C>
Investments, at fair value
(Notes 2 and 4):
Investment in Master Trust
Net Assets $2,642 $386 $216 $950 $14,233
====== ==== ==== ==== =======
</TABLE>
(See notes to financial statements)
-2-
<PAGE>
EXHIBIT A
---------
Page 2
SOLAR TURBINES INCORPORATED
---------------------------
SAVINGS AND INVESTMENT PLAN
---------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
DECEMBER 31, 1994
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(Notes 2 and 4):
Investment in Master Trust
Net Assets $1,795 $883 $2,271 $382 $1,199 $929 $664
====== ==== ====== ==== ====== ==== ====
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investments, at fair value
(Notes 2 and 4):
Investment in Master Trust
Net Assets $1,816 $179 $131 $750 $10,999
====== ==== ==== ==== =======
</TABLE>
(See notes to financial statements)
-3-
<PAGE>
EXHIBIT B
---------
Page 1
SOLAR TURBINES INCORPORATED
---------------------------
SAVINGS AND INVESTMENT PLAN
---------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Employee contributions $ 601 $ $ 465 $ 79 $ 210 $ 206 $ 205
------ ---- ------ ---- ------ ------ -----
Plan interest in net
investment gain of
Master Trust (Note 4) 173 249 34 71 382 65
------ ---- ------ ---- ------ ------ -----
Withdrawals (97) (155) (17) (104) (32) (15)
Transfers (to)/from other
plans, net 27 (99) 3 (5) (23) (10)
Interfund transfers, net 487 (883) 294 (73) (95) 166 (193)
------ ---- ------ ---- ------ ------ -----
Withdrawals and trans-
fers, net 417 (883) 40 (87) (204) 111 (218)
------ ---- ------ ---- ------ ------ -----
Increase (decrease) in net
assets 1,191 (883) 754 26 77 699 52
Net assets:
Beginning of year 1,795 883 2,271 382 1,199 929 664
------ ---- ------ ---- ------ ------ -----
End of year $2,986 $ - $3,025 $408 $1,276 $1,628 $ 716
====== ==== ====== ==== ====== ====== =====
Fund Information
-----------------------------------------
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Employee contributions $ 441 $ 59 $ 45 $ $ 2,311
------ ---- ---- ---- -------
Plan interest in net
investment gain of
Master Trust (Note 4) 514 76 23 60 1,647
------ ---- ---- ---- -------
Withdrawals (144) (11) (10) (9) (594)
Transfers (to)/from other
plans, net (14) (4) 2 (7) (130)
Interfund transfers, net 29 87 25 156
------ ---- ---- ---- -------
Withdrawals and trans-
fers, net (129) 72 17 140 (724)
------ ---- ---- ---- -------
Increase (decrease) in net
assets 826 207 85 200 3,234
Net assets:
Beginning of year 1,816 179 131 750 10,999
------ ---- ---- ---- -------
End of year $2,642 $386 $216 $950 $14,233
====== ==== ==== ==== =======
</TABLE>
(See notes to financial statements)
-4-
<PAGE>
EXHIBIT B
---------
Page 2
SOLAR TURBINES INCORPORATED
---------------------------
SAVINGS AND INVESTMENT PLAN
---------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED DECEMBER 31, 1994
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Employee contributions $ 435 $ $ 531 $ 83 $ 134 $ 167 $238
------ ------- ------ ---- ------ ----- ----
Plan interest in net
investment gain (loss)
of Master Trust
(Note 4) 185 85 55 (2) 38 5 6
------ ------- ------ ---- ------ ----- ----
Withdrawals (129) (63) (252) (9) (92) (58) (21)
Transfers (to)/from other
plans, net (7) (5) (1) (11) (6) (13) (2)
Interfund transfers, net 610 (1,657) 834 (51) 306 (125) 1
------ ------- ------ ---- ------ ----- ----
Withdrawals and trans-
fers, net 474 (1,725) 581 (71) 208 (196) (22)
------ ------- ------ ---- ------ ----- ----
Increase (decrease) in net
assets 1,094 (1,640) 1,167 10 380 (24) 222
Net assets:
Beginning of year 701 2,523 1,104 372 819 953 442
------ ------- ------ ---- ------ ----- ----
End of year $1,795 $ 883 $2,271 $382 $1,199 $ 929 $664
====== ======= ====== ==== ====== ===== ====
Fund Information
-----------------------------------------
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------ ---------- ------ ------ -------
<S> <C> <C> <C> <C> <C>
Employee contributions $ 437 $ 48 $ 34 $ $ 2,107
------ ---- ---- ---- -------
Plan interest in net
investment gain (loss) of
Master Trust (Note 4) (24) (5) (2) 79 420
------ ---- ---- ---- -------
Withdrawals (19) (13) (2) (10) (668)
Transfers (to)/from other
plans, net (47) (3) (3) (3) (101)
Interfund transfers, net (133) 21 (5) 199
------ ---- ---- ---- -------
Withdrawals and trans-
fers, net (199) 5 (10) 186 (769)
------ ---- ---- ---- -------
Increase (decrease) in net
assets 214 48 22 265 1,758
Net assets:
Beginning of year 1,602 131 109 485 9,241
------ ---- ---- ---- -------
End of year $1,816 $179 $131 $750 $10,999
====== ==== ==== ==== =======
</TABLE>
(See notes to financial statements)
-5-
<PAGE>
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. Participants
should refer to the Plan agreement for a more complete description of the Plan's
provisions.
General
- -------
The Plan is a defined contribution plan established by Solar Turbines
Incorporated (the Company) to enable eligible employees to defer a portion of
their compensation until retirement.
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.
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. 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
- -------------
Employee contributions are made through a pretax compensation deferral as
elected by participating employees, and are contributed to the Plan by the
employer. During 1995, the compensation deferral was limited to (a) the greater
of $4,000 or 4% of the employee's compensation (limited by the Internal Revenue
Code to $9,240 in 1995) for participants earning in excess of $62,345 or (b)
$9,240 for participants earning less than $62,345.
-6-
<PAGE>
During 1994, the compensation deferral was limited to (a) the greater of $4,000
or 4% of the employee's compensation (limited by the Internal Revenue Code to
$9,240 in 1994) for participants earning in excess of $60,530 or (b) $9,240 for
participants earning less than $60,530.
Investment programs
- -------------------
Employees 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.
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 employee 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.
-7-
<PAGE>
Investments
- -----------
The fair value of the Plan's investments 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.
Administrative expenses
- -----------------------
Trustee fees and certain investment costs are paid by Caterpillar Inc.
Administrative costs are paid by the Company.
Reclassification
- ----------------
Certain amounts in the December 31, 1994 statement of changes in net assets
available for plan benefits with fund information have been reclassified to
conform with the December 31, 1995 presentation.
NOTE 3 - UNIT VALUES:
- --------------------
The Plan assigns units to participants directing investments to any of the
Preferred Group of Mutual Funds, the Caterpillar Common Stock Fund and the
Stable Principal Fund. The unit values assigned by the Plan reflect the current
values of the individual funds. Total units held (in thousands) by the Plan and
their respective unit values at each month end are shown on the accompanying
schedule on the following page.
-8-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 3 - UNIT VALUES
--------------------
DECEMBER 31, 1995
-----------------
(units in 000's)
<TABLE>
<CAPTION>
January February March April May June July August September October November December
------- -------- ----- ----- ----- ----- ----- ------ --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CATERPILLAR COMMON
STOCK FUND:
Units 105 109 112 112 118 117 132 130 138 144 137 141
Unit value 18.66 18.70 20.10 21.08 21.69 23.07 25.17 24.05 20.56 20.29 22.11 21.20
STABLE PRINCIPAL FUND:
Units 303 302 295 299 310 311 293 289 291 293 298 302
Unit value 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
PREFERRED GROUP OF
MUTUAL FUNDS:-
Money Market:
Units 1,234 1,267 1,387 1,406 1,337 1,347 1,125 1,246 1,214 1,051 1,366 1,275
Unit value 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Short-Term Govern-
ment:
Units 39 40 41 41 41 41 41 41 42 40 41 41
Unit value 9.59 9.64 9.66 9.67 9.80 9.80 9.78 9.79 9.78 9.82 9.84 9.87
Value:
Unit 86 85 86 87 91 93 97 96 98 101 101 108
Unit value 11.53 12.08 12.42 12.82 13.37 13.82 14.35 14.39 14.90 14.46 15.34 15.02
Growth:
Units 127 124 129 130 135 138 141 147 145 151 149 156
Unit value 13.37 13.90 14.59 15.06 15.49 16.63 17.65 17.43 17.95 17.86 18.00 16.90
International:
Units 59 60 58 60 57 59 60 59 60 58 55 57
Unit value 11.25 11.34 11.32 11.84 12.07 12.24 12.87 12.42 12.76 12.54 12.54 12.55
Asset Allocation:
Units 18 18 18 19 22 24 28 28 27 28 29 31
Unit value 10.56 10.86 11.03 11.26 11.79 11.97 12.25 12.35 12.64 12.70 13.15 12.45
Fixed Income:
Units 11 11 11 11 12 12 15 17 19 18 20 20
Unit value 9.68 9.84 9.86 9.94 10.27 10.30 10.22 10.28 10.33 10.42 10.53 10.58
</TABLE>
-9-
<PAGE>
NOTE 4 - MASTER TRUST:
- ---------------------
Under a Master Trust agreement with The Northern Trust Company (the Trustee),
Part II of the Caterpillar Inc. Employees' Investment Plan (EIP II), 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:
<TABLE>
<CAPTION>
<S> <C> <C>
Preferred Short-Term Government Fund Preferred Growth Fund Preferred Money Market Fund
Preferred Asset Allocation Fund Preferred Value Fund Preferred Fixed Income Fund
Preferred International Fund
</TABLE>
CIML manages the Preferred Short-Term Government Fund. All other funds are
managed by unrelated investment managers. Caterpillar Securities, Inc., a
wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to
the Master Trust.
The percentage of the Plan's participation in the Master Trust was determined
based on the December 31, 1995 and 1994 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At December
31, 1995 and 1994, 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:
<TABLE>
<CAPTION>
1995 1994
----- -----
<S> <C> <C>
Caterpillar Inc. Common Stock Fund 1.88% 1.29%
Guaranteed Investment Contract Fund 0% 2.82%
Stable Principal Fund 3.11% 3.16%
Preferred Short-Term Government Fund 3.18% 3.13%
Preferred Money Market Fund 2.02% 2.39%
Preferred Value Fund 1.22% 1.09%
Preferred International Fund 1.08% 1.00%
Preferred Growth Fund 1.62% 1.62%
Preferred Asset Allocation Fund 1.09% 0.87%
Preferred Fixed Income Fund .93% 0.95%
Loan Fund 6.04% 5.50%
</TABLE>
Investment valuation
- --------------------
The Master Trust's investments are stated at fair value, except for its
investment contracts with insurance companies which are stated at contract
value, which approximates fair value. Common stock, common trust funds,
government obligations and corporate bonds and other are valued at quoted market
prices. Shares of registered investment companies are valued at quoted market
prices which represent the net asset value of shares held by the Master Trust at
year end. Participant loans are valued at cost which approximates fair value.
-10-
<PAGE>
The net investment income or loss of the Master Trust is reflected in the
financial statements of the Plan based on the actual earnings of each investment
fund as allocated to the Plan based on average investment balances throughout
the year. Refer to pages 12 through 15 for analyses of the net assets and
changes in net assets of the investments of the Master Trust as of December 31,
1995 and 1994.
Return of contributions
- -----------------------
These amounts represent contributions made by certain participants in EIP II
from 1989 through 1994 which exceeded the allowable amount as defined by the
Internal Revenue Code and were subsequently returned to the respective
participants with earnings thereon.
Reclassification
- ----------------
Certain amounts in the November 30, 1994 Master Trust summary of net assets and
Master Trust summary of changes in net assets have been reclassified to conform
with the November 30, 1995 presentation.
-11-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1995
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable --------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $148,480 $ $ $ $ $ $
Registered investment companies 12,721 62,552 128,442 64,790
Common trust funds 6,954 52,724
Participant loans
-------- ---- ------- ------- ------- -------- -------
155,434 52,724 12,721 62,552 128,442 64,790
Investment contracts with
insurance companies, at
contract value 44,089
-------- ---- ------- ------- ------- -------- -------
Total investments 155,434 96,813 12,721 62,552 128,442 64,790
Dividend and interest receivable 26 66 59 284 4,281 929
Transfers receivable from EIP I 2,593 13
Contributions receivable 418 506 78 257 710 585
Other receivable/(payable), net 225 30 (38) (59) 163 (89)
-------- ---- ------- ------- ------- -------- -------
Net assets $158,696 $ -- $97,415 $12,820 $63,047 $133,596 $66,215
======== ==== ======= ======= ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
---------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $ $ $ $ $148,480
Registered investment companies 156,741 34,726 22,890 482,862
Common trust funds 59,678
Participant loans 16,571 16,571
-------- ------- ------- ------- --------
156,741 34,726 22,890 16,571 707,591
Investment contracts with
insurance companies, at
contract value 44,089
-------- ------- ------- ------- --------
Total investments 156,741 34,726 22,890 16,571 751,680
Dividend and interest receivable 5,064 270 103 11,082
Transfers receivable from EIP I 2,606
Contributions receivable 1,202 255 149 4,160
Other receivable/(payable), net 151 17 9 (850) (441)
-------- ------- ------- ------- --------
Net assets $163,158 $35,268 $23,151 $15,721 $769,087
======== ======= ======= ======= ========
</TABLE>
-12-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1994
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
Caterpillar Guaranteed ------------------------------------------------------------
Common Investment Stable Asset
Stock Contract Principal Short-term Money Interna- Allo- Fixed Loan
Fund Fund Fund Government Market Value tional Growth cation Income Fund Total
---- ---- ---- ---------- ------ ----- ------ ------ ------ ------ ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair
value:
Common stock $132,326 $ $ $ $ $ $ $ $ $ $ $132,326
Registered
investment
companies 12,023 49,764 82,196 62,475 110,183 19,684 13,611 349,936
Common trust
funds 5,494 11,502 16,996
Government
obligations 16,143 16,143
Participant
loans 13,627 13,627
-------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- --------
137,820 27,645 12,023 49,764 82,196 62,475 110,183 19,684 13,611 13,627 529,028
Investment
contracts with
insurance
companies, at
contract value 31,443 43,267 74,710
-------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- --------
Total
investments 137,820 31,443 70,912 12,023 49,764 82,196 62,475 110,183 19,684 13,611 13,627 603,738
Dividend and
interest receivable 31 118 43 185 2,519 3,003 615 514 59 7,087
Transfers receivable
from EIP I 1,062 16 1,078
Contributions
receivable 380 634 98 240 631 769 1,199 213 138 4,302
Other
receivable/
(payable), net (4) (57) 200 14 (47) 7 57 122 10 17 319
-------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- --------
Net assets $139,289 $31,386 $71,864 $12,178 $50,158 $85,353 $66,304 $112,119 $20,421 $13,825 $13,627 $616,524
======== ======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ========
</TABLE>
-13-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ 441 $ $ 3,408 $ $ $ $
Dividends 3,007
Net appreciation in fair
value of:
Common stock 11,603
Government obligations 4,747
Registered investment
companies 1,120 3,492 34,119 6,180
-------- ---------- ------- ------- ------- -------- -------
Net investment income 15,051 8,155 1,120 3,492 34,119 6,180
-------- ---------- ------- ------- ------- -------- -------
Contributions to all plans 4,931 5,691 971 3,510 7,412 7,441
-------- ---------- ------- ------- ------- -------- -------
Withdrawals from all plans (8,043) (5,821) (625) (6,582) (2,927) (1,884)
-------- ---------- ------- ------- ------- -------- -------
Return of contributions (1,003) (1,689) (152) (905) (1,770) (995)
-------- ---------- ------- ------- ------- -------- -------
Transfers from EIP I 33,755 373
-------- ---------- ------- ------- ------- -------- -------
Interfund transfers, net (25,284) (31,386) 19,215 (672) 13,001 11,409 (10,831)
-------- ---------- ------- ------- ------- -------- -------
Increase (decrease) in
assets for the year 19,407 (31,386) 25,551 642 12,889 48,243 (89)
Net assets:
Beginning of year 139,289 31,386 71,864 12,178 50,158 85,353 66,304
-------- -------- ------- ------- ------- -------- --------
End of year $158,696 $ - $97,415 $12,820 $63,047 $133,596 $ 66,215
======== ======== ======= ======= ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investment income:-
Interest $ $ $ $ 1,121 $ 4,970
Dividends 3,007
Net appreciation in fair
value of:
Common stock 11,603
Government obligations 4,747
Registered investment
companies 32,918 7,478 2,919 88,226
------- ---------- ------ ------ --------
Net investment income 32,918 7,478 2,919 1,121 112,553
------- ---------- ------ ------ --------
Contributions to all plans 13,351 2,531 1,493 47,331
------- ---------- ------ ------ --------
Withdrawals from all plans (3,115) (1,313) (761) (883) (31,954)
------- ---------- ------ ------ --------
Return of contributions (2,389) (354) (238) (9,495)
------- ---------- ------ ------ --------
Transfers from EIP I 34,128
------- ---------- ------ ------ --------
Interfund transfers, net 10,274 6,505 5,913 1,856
------- ---------- ------ ------ --------
Increase (decrease) in
assets for the year 51,039 14,847 9,326 2,094 152,563
Net assets:
Beginning of year 112,119 20,421 13,825 13,627 616,524
-------- ------- -------- -------- --------
End of year $163,158 $35,268 $ 23,151 $ 15,721 $769,087
======== ======= ======== ======== ========
</TABLE>
-14-
<PAGE>
SOLAR TURBINES INCORPORATED - SAVINGS AND INVESTMENT PLAN
---------------------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1994
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):-
Interest $ 231 $ 2,093 $ 4,170 $ $ $ $
Dividends 981
Net appreciation depreciation
in fair value of:
Common stock 18,117
Government obligations (2,101)
Registered investment
companies (158) 1,325 427 391
-------- -------- ------- ------- ------- ------- -------
Net (loss)
investment income 19,329 2,093 2,069 (158) 1,325 427 391
-------- -------- ------- ------- ------- ------- -------
Contributions to all plans 3,097 7,827 1,169 2,229 7,630 8,559
-------- -------- ------- ------- ------- ------- -------
Withdrawals from all plans (4,247) (1,430) (5,668) (510) (3,278) (1,997) (1,260)
-------- -------- ------- ------- ------- ------- -------
Transfers from EIP I 61,904 566
-------- -------- ------- ------- ------- ------- -------
Interfund transfers, net (24,173) (54,145) 26,902 (1,708) 29,589 (6,841) 18,465
-------- -------- ------- ------- ------- ------- -------
Increase (decrease) in
assets for the year 55,910 (53,482) 31,130 (1,207) 30,431 (781) 26,155
Net assets:
Beginning of year 83,379 84,868 40,734 13,385 19,727 86,134 40,149
-------- -------- ------- ------- ------- ------- -------
End of year $139,289 $ 31,386 $71,864 $12,178 $50,158 $85,353 $66,304
======== ======== ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investment income (loss):-
Interest $ $ $ $ 1,575 $ 8,069
Dividends 981
Net appreciation (depreciation)
in fair value of:
Common stock 18,117
Government obligations (2,101)
Registered investment
companies (1,616) (800) (424) (855)
-------- ------- ------- ------- --------
Net investment income
(loss) (1,616) (800) (424) 1,575 24,211
-------- ------- ------- ------- --------
Contributions to all plans 14,452 2,825 1,731 49,519
-------- ------- ------- ------- --------
Withdrawals from all plans (1,904) (581) (362) (197) (21,434)
-------- ------- ------- ------- --------
Transfers from EIP I 62,470
-------- ------- ------- ------- --------
Interfund transfers, net 5,922 3,113 2,497 379
-------- ------- ------- ------- --------
Increase (decrease) in
assets for the year 16,854 4,557 3,442 1,757 114,766
Net assets:
Beginning of year 95,265 15,864 10,383 11,870 501,758
-------- ------- ------- ------- --------
End of year $112,119 $20,421 $13,825 $13,627 $616,524
======== ======= ======= ======= ========
</TABLE>
-15-
<PAGE>
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 3, 1996 related to the financial
statements of the Savings and Investment Plan, which is included in this Annual
Report on Form 11-K.
PRICE WATERHOUSE LLP
Peoria, Illinois
May 3, 1996
<PAGE>
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, 1995
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)
<PAGE>
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.
<PAGE>
CATERPILLAR INC.
EMPLOYEES' INVESTMENT PLAN
FINANCIAL STATEMENTS
AND ADDITIONAL INFORMATION
NOVEMBER 30, 1995 AND 1994
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 3, 1996
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, 1995 and 1994, and the changes in net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of the
plan's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I and II is presented for purposes of additional analysis and is not
a required part of the basic financial statements but is additional information
required by ERISA. The Fund Information in the statement of net assets
available for plan benefits and the statement of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan benefits and changes
in net assets available for plan benefits of each fund. Schedules I and II and
the Fund Information 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.
/s/ PRICE WATERHOUSE LLP
Peoria, Illinois
<PAGE>
EXHIBIT A
---------
Page 1
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
NOVEMBER 30, 1995
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------------------------------------
PART I PART II
----------------------- --------------------------------------------------------------------------------
Caterpillar Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Government Common Investment Stable --------------------------------------------
Stock Securities Stock Contract Principal Short-term Money
Fund Fund Fund Fund Fund Government Market Value International
----------- ---------- ----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cash $ 22 $ 195 $ $ $ $ $ $ $
Investments, at fair value
(Notes 2 and 4):
Caterpillar Inc. common
stock, 9,942,402 shares 610,215
U.S. Government securities,
129,523 units 11,923
Investment in Master Trust
Net Assets 145,298 65,325 9,621 53,550 104,976 55,313
-------- ------- -------- -------- ------- ------ ------- -------- -------
Total cash and
investments 610,237 12,118 145,298 65,325 9,621 53,550 104,976 55,313
Employer and employee
contributions receivable 5,248 160
Dividends receivable 3,450
Other receivable/(payable) 1,272 (118)
-------- ------- -------- -------- ------- ------ ------- -------- -------
Total net assets $620,207 $12,160 $145,298 $ -- $65,325 $9,621 $53,550 $104,976 $55,313
======== ======= ======== ======== ======= ====== ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
PART II
-----------------------------------------
Preferred Group of Mutual Funds
--------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
----------- ---------- ------- ------- ---------
<S> <C> <C> <C> <C> <C>
Cash $ $ $ $ $ 217
Investments at fair value
(Notes 2 and 4):
Caterpillar Inc. common
stock, 9,942,402 shares 610,215
U.S. Government securities,
129,523 units 11,923
Investment in Master Trust
Net Assets 135,517 29,097 19,480 12,389 630,566
-------- ------- ------- ------- ----------
Total cash and
investments 135,517 29,097 19,480 12,389 1,252,921
Employer and employee
contributions receivable 5,408
Dividends receivable 3,450
Other receivable/(payable) 1,154
-------- ------- ------- ------- ----------
Total net assets $135,517 $29,097 $19,480 $12,389 $1,262,933
======== ======= ======= ======= ==========
</TABLE>
(See notes to financial statements)
-2-
<PAGE>
EXHIBIT A
---------
Page 2
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
NOVEMBER 30, 1994
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------------------------------------
PART I PART II
----------------------- --------------------------------------------------------------------------------
Caterpillar Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Government Common Investment Stable --------------------------------------------
Stock Securities Stock Contract Principal Short-term Money
Fund Fund Fund Fund Fund Government Market Value International
----------- ---------- ----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cash $ $ 154 $ $ $ $ $ $ $
Investments, at fair value
(Notes 2 and 4):
Caterpillar Inc. common
stock, 10,190,229 shares, 551,546
U.S. Government securities,
124,000 units 10,560
Investment in Master Trust
Net Assets 119,451 21,715 49,148 9,258 41,117 66,978 58,942
-------- ------- -------- ------- ------- ------ ------- ------- -------
Total cash and
investments 551,546 10,714 119,451 21,715 49,148 9,258 41,117 66,978 58,942
Employer and employee
contributions receivable 5,181 190
-------- ------- -------- ------- ------- ------ ------- ------- -------
Total net assets $556,727 $10,904 $119,451 $21,715 $49,148 $9,258 $41,117 $66,978 $58,942
======== ======= ======== ======= ======= ====== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
PART II
-----------------------------------------
Preferred Group of Mutual Funds
--------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
----------- ---------- ------- ------- ---------
<S> <C> <C> <C> <C> <C>
Cash $ $ $ $ $ 154
Investments, at fair value
(Notes 2 and 4):
Caterpillar Inc. common
stock, 10,190,229 shares 551,546
U.S. Government securities,
124,000 units 10,560
Investment in Master Trust
Net Assets 91,055 17,276 11,764 9,736 496,440
------- ------- ------- ------- ----------
Total cash and
investments 91,055 17,276 11,764 9,736 1,058,700
Employer and employee
contributions receivable 5,371
------- ------- ------- ------- ----------
Total net assets $91,055 $17,276 $11,764 $ 9,736 $1,064,071
======= ======= ======= ======= ==========
</TABLE>
(See notes to financial statements)
-3-
<PAGE>
EXHIBIT B
---------
Page 1
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED NOVEMBER 30, 1995
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------------------------------------
PART I PART II
----------------------- --------------------------------------------------------------------------------
Caterpillar Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Government Common Investment Stable --------------------------------------------
Stock Securities Stock Contract Principal Short-term Money
Fund Fund Fund Fund Fund Government Market Value International
----------- ---------- ----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employee (Note 1) $ 39,057 $ 2,116 $ 2,584 $ $ 3,875 $ 671 $ 2,304 $ 6,054 $ 6,132
Employer (notes 1 and 2) 23,167
-------- ------- -------- ------- ------- ------- ------- -------- --------
62,224 2,116 2,584 3,875 671 2,304 6,054 6,132
-------- ------- -------- ------- ------- ------- ------- -------- --------
Investment income:--
Interest 607
Dividends 12,818
Net appreciation in fair
value of:
Common stock 75,091
Government obligations 51
Plan interest in net
investment income of
Master Trust (Note 4) 21,677 120 5,327 790 2,939 26,880 2,422
-------- ------- -------- ------- ------- ------- ------- -------- --------
Net investment
income 87,909 658 21,677 120 5,327 790 2,939 26,880 2,422
-------- ------- -------- ------- ------- ------- ------- -------- --------
Withdrawals (54,428) (1,142) (7,022) (119) (3,731) (429) (6,105) (2,079) (1,676)
Return of contributions
(Note 4) (1,003) (1,689) (152) (905) (1,770) (995)
Transfers (to)/from other
plans, net 67 36 105 53 32 116 29
Interfund transfers, net (32,225) (376) 9,544 (21,752) 12,290 (570) 14,168 8,797 (9,541)
-------- ------- -------- ------- ------- ------- ------- -------- --------
Withdrawals and
transfers, net (86,653) (1,518) 1,586 (21,835) 6,975 (1,098) 7,190 5,064 (12,183)
-------- ------- -------- ------- ------- ------- ------- -------- --------
Increase (decrease) in
net assets 63,480 1,256 25,847 (21,715) 16,177 363 12,433 37,998 (3,629)
Net assets:
Beginning of year 556,727 10,904 119,451 21,715 49,148 9,258 41,117 66,978 58,942
-------- ------- -------- ------- ------- ------- ------- -------- --------
End of year $620,207 $12,160 $145,298 $ -- $65,325 $ 9,621 $53,550 $104,976 $ 55,313
======== ======= ======== ======= ======= ======= ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
PART II
-----------------------------------------
Preferred Group of Mutual Funds
--------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
----------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Contributions:
Employee (Note 1) $ 10,846 $ 2,066 $ 1,186 $ $ 76,891
Employer (notes 1 and 2) 23,167
-------- ------- ------- ------- ----------
10,846 2,066 1,186 100,058
-------- ------- ------- ------- ----------
Investment income:--
Interest 607
Dividends 12,818
Net appreciation in fair
value of:
Common stock 75,091
Government obligations 51
Plan interest in net
investment income of
Master Trust (Note 4) 30,072 6,512 2,349 858 99,946
-------- ------- ------- ------- ----------
Net investment
income 30,072 6,512 2,349 858 188,513
-------- ------- ------- ------- ----------
Withdrawals (2,202) (1,136) (653) (106) (80,828)
Return of contributions
(Note 4) (2,389) (354) (238) (9,495)
Transfers (to)/from other
plans, net 139 21 1 15 614
Interfund transfers, net 7,996 4,712 5,071 1,886
-------- ------- ------- ------- ----------
Withdrawals and
transfers, net 3,544 3,243 4,181 1,795 (89,709)
-------- ------- ------- ------- ----------
Increase (decrease) in
net assets 44,462 11,821 7,716 2,653 198,862
Net assets:
Beginning of year 91,055 17,276 11,764 9,736 1,064,071
-------- ------- ------- ------- ----------
End of year $135,517 $29,097 $19,480 $12,389 $1,262,933
======== ======= ======= ======= ==========
</TABLE>
(See notes to financial statements)
-4-
<PAGE>
EXHIBIT B
---------
Page 2
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED NOVEMBER 30, 1994
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------------------------------------
PART I PART II
----------------------- --------------------------------------------------------------------------------
Caterpillar Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Government Common Investment Stable --------------------------------------------
Stock Securities Stock Contract Principal Short-term Money
Fund Fund Fund Fund Fund Government Market Value International
----------- ---------- ----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employee (Note 1) $ 35,261 $ 2,215 $ 1,564 $ $ 4,780 $ 807 $ 1,429 $ 5,990 $ 6,401
Employer (Notes 1 and 2) 20,521
--------- -------- -------- -------- ------- ------- ------- ------- -------
55,782 2,215 1,564 4,780 807 1,429 5,990 6,401
--------- -------- -------- -------- ------- ------- ------- ------- -------
Investment income:--
Interest 349
Dividends 4,665
Net appreciation in
fair value of:
Common stock 137,095
Government obligations 34
Plan interest in net
investment income (loss)
of Master Trust (Note 4) 17,018 1,440 1,257 (60) 1,160 1,612 5,381
--------- -------- -------- -------- ------- ------- ------- ------- -------
Net investment
income (loss) 141,760 383 17,018 1,440 1,257 (60) 1,160 1,612 5,381
--------- -------- -------- -------- ------- ------- ------- ------- -------
Withdrawals (85,666) (1,813) (3,749) (930) (3,362) (292) (2,543) (1,398) (911)
Transfers (to)/from
other plans, net 37 161 67 37 10 204 76
Interfund transfers, net (71,220) (777) 40,014 (38,406) 19,370 (1,062) 26,698 (6,047) 20,684
--------- -------- -------- -------- ------- ------- ------- ------- -------
Withdrawals and
transfers, net (156,886) (2,590) 36,302 (39,175) 16,075 (1,317) 24,165 (7,241) 19,849
--------- -------- -------- -------- ------- ------- ------- ------- -------
Increase (decrease)
in net assets 40,656 8 54,884 (37,735) 22,112 (570) 26,754 361 31,631
Net assets:
Beginning of year 516,071 10,896 64,567 59,450 27,036 9,828 14,363 66,617 27,311
--------- -------- -------- -------- ------- ------- ------- ------- -------
End of year $ 556,727 $ 10,904 $119,451 $ 21,715 $49,148 $ 9,258 $41,117 $66,978 $58,942
========= ======== ======== ======== ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
PART II
-----------------------------------------
Preferred Group of Mutual Funds
--------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
----------- ---------- -------- ------- ----------
<S> <C> <C> <C> <C> <C>
Contributions:
Employee (Note 1) $11,142 $ 2,254 $ 1,300 $ $ 73,143
Employer (Notes 1 and 2) 20,521
------- ------- -------- ------ ----------
11,142 2,254 1,300 93,664
------- ------- -------- ------ ----------
Investment income:--
Interest 349
Dividends 4,665
Net appreciation in
fair value of:
Common stock 137,095
Government obligations 34
Plan interest in net
investment income (loss)
of Master Trust (Note 4) 3,016 (799) (343) 1,179 30,861
------- ------- -------- ------ ----------
Net investment
income (loss) 3,016 (799) (343) 1,179 173,004
------- ------- -------- ------ ----------
Withdrawals (1,468) (570) (342) (134) (103,178)
Transfers (to)/from other
plans, net 159 21 5 40 817
Interfund transfers, net 4,936 2,988 2,514 308
------- ------- -------- ------ ----------
Withdrawals and
transfers, net 3,627 2,439 2,177 214 (102,361)
------- ------- -------- ------ ----------
Increase (decrease)
in net assets 17,785 3,894 3,134 1,393 164,307
Net assets:
Beginning of year 73,270 13,382 8,630 8,343 899,764
------- ------- -------- ------ ----------
End of year $91,055 $17,276 $ 11,764 $9,736 $1,064,071
======= ======= ======== ====== ==========
</TABLE>
(See notes to financial statements)
-5-
<PAGE>
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. Participants 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 which
adopt the Plan (the employers) to accumulate funds. Participating employees may
acquire ownership interests in the Company through purchases of its common stock
(Part I). Additionally, eligible employees may elect to defer a portion of their
compensation until retirement under the Special Investment Supplement of the
Plan (Part II).
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.
Participant accounts
- --------------------
Accounts are maintained separately for Part I and Part II for each participant.
The participant's separate account under Part I is credited with the
participant's contribution, the employer's contribution and an allocation of
Plan earnings. The participant's account under Part II 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 II
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. 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.
-6-
<PAGE>
Contributions
- -------------
PART I -
Employee contributions are made through after-tax payroll deductions based on a
percentage (2%-6%) of total earnings as elected by the employee. Employees with
25 or more years of service may contribute an additional 1%-4% of earnings.
Employer contributions are 50%, 66-2/3% or 80% of employee contributions (up to
6% of earnings) based on the employee's years of service.
PART II -
Employee contributions are made through a pretax compensation deferral as
elected by participating employees, and are contributed to the Plan by the
employer. During 1995, the compensation deferral was limited to (a) the greater
of $4,000 or 4% of the employee's compensation (limited by the Internal Revenue
Code to $9,240 in 1995) for participants earning in excess of $62,345 or (b)
$9,240 for participants earning less than $62,345.
During 1994, the compensation deferral was limited to (a) the greater of $4,000
or 4% of the employee's compensation (limited by the Internal Revenue Code to
$9,240 in 1994) for participants earning in excess of $60,530 or (b) $9,240 for
participants earning less than $60,530.
Investment programs
- -------------------
PART I -
Employees 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 government securities. Employer contributions are invested entirely in
Caterpillar Inc. common stock.
PART II -
Employees 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.
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 I -
Participants are fully vested at all times in Caterpillar Inc. common stock or
government securities purchased with employee contributions.
-7-
<PAGE>
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.
While an employee, a participant may elect to withdraw all employee purchased
shares of common stock, his share of the government securities 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 II -
Participants are fully vested in their employee 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 First National Bank of
Chicago and 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 I 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.
-8-
<PAGE>
Investments
- -----------
The Plan's investments are stated at fair value. The Caterpillar Inc. common
stock and the U.S. Government Securities are valued at quoted market prices. The
fair value of the Plan's investment in the 401(k) Master Trust (Note 4) is based
upon the beginning of the year value of the Plan's investment plus actual
contributions, transfers and allocated investment income less actual
withdrawals. Income from investments is recorded as earned.
Contributions
- -------------
Employer contributions to the Caterpillar Common Stock Fund under Part I of the
Plan are made in-kind, as shares of Caterpillar Inc. common stock in the amount
of such contributions are purchased by the Company in the open market and
transferred to the Plan. All in-kind contributions are recorded at fair value.
Administrative expenses
- -----------------------
Trustee fees and certain investment and administrative costs are paid by the
Company.
Reclassification
- ----------------
Certain amounts in the November 30, 1994 statement of changes in net assets
available for plan benefits with fund information have been reclassified to
conform with the November 30, 1995 presentation.
NOTE 3 - UNIT VALUES:
- --------------------
Part II of the Plan assigns units to participants directing investments to any
of the Preferred Group of Mutual Funds, the Caterpillar Common Stock Fund and
the Stable Principal Fund. The unit values assigned by the Plan reflect the
current values of the individual funds. Total units held (in thousands) by the
Plan and their respective unit values at each month end are shown on the
following page.
-9-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 3 - UNIT VALUES
--------------------
NOVEMBER 30, 1995
-----------------
(units in 000's)
<TABLE>
<CAPTION>
1994 1995
---- -----------------------------------------------------------------------------------------------
December January February March April May June July August September October November
-------- ------- -------- ------ ------ ------ ------ ------ ------ --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CATERPILLAR COMMON
STOCK FUND:
Units 6,220 6,760 6,874 6,658 6,327 5,834 5,866 5,749 5,990 6,469 6,950 6,572
Unit value 19.87 18.66 18.70 20.10 21.08 21.69 23.07 25.17 24.05 20.56 20.29 22.11
STABLE PRINCIPAL FUND:
Units 6,572 6,388 6,407 6,457 6,678 6,937 7,028 7,057 6,866 6,695 6,587 6,533
Unit value 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
PREFERRED GROUP OF
MUTUAL FUNDS:-
Money Market:
Units 43,974 43,995 43,772 49,307 54,804 57,469 58,857 60,324 60,622 52,746 50,395 53,549
Unit value 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Short-Term Govern-
ment:
Units 976 946 985 998 1,025 1,039 1,020 1,007 1,008 1,011 998 978
Unit value 9.57 9.59 9.64 9.66 9.67 9.80 9.80 9.78 9.79 9.78 9.82 9.84
Value:
Unit 6,053 6,048 6,088 6,178 6,290 6,556 6,598 6,697 6,740 6,819 6,868 6,843
Unit value 11.27 11.53 12.08 12.42 12.82 11.83 13.82 14.35 14.39 14.90 14.46 15.34
Growth:
Units 6,772 6,756 6,802 6,809 6,901 7,083 7,194 7,313 7,392 7,518 7,502 7,529
Unit value 13.59 13.37 13.90 14.59 15.06 15.49 16.63 17.65 17.43 17.95 17.86 18.00
International:
Units 4,968 4,799 4,776 4,638 4,756 4,812 4,659 4,762 4,730 4,635 4,516 4,411
Unit value 11.58 11.25 11.34 11.32 11.84 12.07 12.24 12.87 12.42 12.76 12.54 12.54
Asset Allocation:
Units 1,730 1,712 1,745 1,779 1,759 1,929 2,009 2,038 2,128 2,166 2,167 2,213
Unit value 10.32 10.56 10.86 11.03 11.26 11.79 11.97 12.25 12.35 12.64 12.70 13.15
Fixed Income:
Units 1,263 1,227 1,270 1,335 1,405 1,598 1,616 1,659 1,778 1,794 1,801 1,850
Unit value 9.58 9.68 9.84 9.86 9.94 10.27 10.30 10.22 10.28 10.33 10.42 10.53
</TABLE>
-10-
<PAGE>
NOTE 4 - MASTER TRUST:
- ---------------------
Under a Master Trust agreement with The Northern Trust Company (the Trustee),
Part II of the Caterpillar Inc. Employees' Investment Plan (EIP II), 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 Short-Term Government Fund
Preferred Asset Allocation Fund
Preferred International Fund
Preferred Growth Fund
Preferred Value Fund
Preferred Money Market Fund
Preferred Fixed Income Fund
CIML manages the Preferred Short-Term Government Fund. All other funds are
managed by unrelated investment managers. Caterpillar Securities, Inc., a
wholly-owned subsidiary of CIML, distributes the shares of the mutual funds to
the Master Trust.
The percentage of the Plan's participation in the Master Trust was determined
based on the November 30, 1995 and 1994 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At November
30, 1995 and 1994, 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:
<TABLE>
<CAPTION>
1995 1994
------ ------
<S> <C> <C>
Caterpillar Inc. Common Stock Fund 87.07% 88.57%
Guaranteed Investment Contract Fund 0% 68.91%
Stable Principal Fund 68.29% 67.87%
Preferred Short-Term Government Fund 75.04% 76.17%
Preferred Money Market Fund 84.56% 85.71%
Preferred Value Fund 80.95% 79.34%
Preferred International Fund 84.77% 84.82%
Preferred Growth Fund 81.60% 81.02%
Preferred Asset Allocation Fund 86.80% 86.51%
Preferred Fixed Income Fund 87.44% 86.22%
Loan Fund 78.64% 72.41%
</TABLE>
Investment valuation
- --------------------
The Master Trust's investments are stated at fair value, except for its
investment contracts with insurance companies which are stated at contract
value, which approximates fair value. Common stock, common trust funds,
government obligations and corporate bonds and other are valued at quoted market
prices. Shares of registered investment companies are valued at quoted market
prices which represent the net asset value of shares held by the Master Trust at
year end. Participant loans are valued at cost which approximates fair value.
-11-
<PAGE>
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 13 through 16 for analyses of the net assets and
changes in net assets of the Master Trust as of November 30, 1995 and 1994.
Return of contributions
- -----------------------
These amounts represent contributions made by certain participants in EIP II
from 1989 through 1994 which exceeded the allowable amount as defined by the
Internal Revenue Code and were subsequently returned to the respective
participants with earnings thereon.
Reclassification
- ----------------
Certain amounts in the November 30, 1994 Master Trust summary of net assets and
Master Trust summary of changes in net assets have been reclassified to conform
with the November 30, 1995 presentation.
-12-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
NOVEMBER 30, 1995
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
Caterpillar Guaranteed ------------------------------------------------
Common Investment Stable
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $158,249 $ $ $ $ $ $
Registered investment
companies 12,678 62,111 128,670 64,657
Common trust funds 3,477 9,770
Corporate bonds and other 1,997
Government obligations 39,221
Participant loans
-------- -------- ------- ------- ------- -------- -------
161,726 50,988 12,678 62,111 128,670 64,657
Investment contracts with
insurance companies, at
contract value 43,896
-------- -------- ------- ------- ------- -------- -------
Total investments 161,726 94,884 12,678 62,111 128,670 64,657
Dividend and interest
receivable 27 242 63 282
Transfers receivable from
EIP I 1,357 9
Contributions receivable 397 424 70 244 649 552
Other receivable/(payable), net 3,377 108 10 678 369 40
-------- -------- ------- ------- ------- -------- -------
Net assets $166,884 $ - $95,658 $12,821 $63,324 $129,688 $65,249
======== ======== ======= ======= ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
-------- ---------- -------- ------- --------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $ $ $ $ $158,249
Registered investment
companies 164,533 33,303 21,950 487,902
Common trust funds 13,247
Corporate bonds and other 1,997
Government obligations 39,221
Participant loans 15,755 15,755
-------- ------- ------- ------- --------
164,533 33,303 21,950 15,755 716,371
Investment contracts with
insurance companies, at
contract value 43,896
-------- ------- ------- ------- --------
Total investments 164,533 33,303 21,950 15,755 760,267
Dividend and interest
receivable 106 720
Transfers receivable from
EIP I 1,366
Contributions receivable 1,138 233 128 3,835
Other receivable/(payable), net 397 (15) 95 5,059
-------- ------- ------- ------- --------
Net assets $166,068 $33,521 $22,279 $15,755 $771,247
======== ======= ======= ======= ========
</TABLE>
-13-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
NOVEMBER 30, 1994
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $125,693 $ $ $ $ $ $
Registered investment com-
panies 12,011 47,396 83,821 68,886
Common trust funds 7,342 10,295
Government obligations 43,058
Participant loans
-------- ------- ------- ------- ------- ------- -------
133,035 53,353 12,011 47,396 83,821 68,886
Investment contracts with
insurance companies,
at contract value 31,514 18,280
-------- ------- ------- ------- ------- ------- -------
Total investments 133,035 31,514 71,633 12,011 47,396 83,821 68,886
Dividend and interest
receivable 33 268 52 197
Transfers receivable from EIP I 1,121 5
Contributions receivable 319 479 80 185 491 627
Other receivable/(payable), net 361 30 12 190 104 (24)
-------- ------- ------- ------- ------- ------- -------
Net assets $134,869 $31,514 $72,410 $12,155 $47,973 $84,416 $69,489
======== ======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
---------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
--------- ---------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $ $ $ $ $125,693
Registered investment com-
panies 111,608 19,856 13,390 356,968
Common trust funds 17,637
Government obligations 43,058
Participant loans 13,446 13,446
-------- ------- ------- ------- --------
111,608 19,856 13,390 13,446 556,802
Investment contracts with
insurance companies,
at contract value 49,794
-------- ------- ------- ------- --------
Total investments 111,608 19,856 13,390 13,446 606,596
Dividend and interest
receivable 1 67 618
Transfers receivable from EIP I 1,126
Contributions receivable 957 177 114 3,429
Other receivable/(payable), net (175) (63) 73 508
-------- ------- ------- ------- --------
Net assets $112,390 $19,971 $13,644 $13,446 $612,277
======== ======= ======= ======= ========
</TABLE>
-14-
<PAGE>
CATERPILLAR INC. -- EMPLOYEES' INVESTMENT PLAN
----------------------------------------------
NOTE 4 -- MASTER TRUST -- SUMMARY OF CHANGES IN NET ASSETS
----------------------------------------------------------
FOR THE YEAR ENDED NOVEMBER 30, 1995
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
Caterpillar Guaranteed -------------------------------
Common Investment Stable
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value
----------- ---------- --------- ---------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ 474 $ 173 $ 5,610 $ $ $
Dividends 2,982
Net appreciation in
fair value of:
Common stock 21,080
Government obligations 2,161
Registered investment
companies 1,042 3,438 33,493
--------- -------- -------- --------- ------- --------
Net investment income 24,536 173 7,771 1,042 3,438 33,493
--------- -------- -------- --------- ------- --------
Contributions to all plans 4,893 5,820 991 3,492 7,329
--------- -------- -------- --------- ------- --------
Withdrawals from all plans (7,747) (277) (6,615) (539) (6,738) (3,105)
--------- -------- -------- --------- ------- --------
Return of contributions (1,003) (1,689) (152) (905) (1,770)
--------- -------- -------- --------- ------- --------
Transfers from EIP I 32,225 376
--------- -------- -------- --------- ------- --------
Interfund transfers, net (20,889) (31,410) 17,961 (676) 15,688 9,325
--------- -------- -------- --------- ------- --------
Increase (decrease) in
assets for the year 32,015 (31,514) 23,248 666 15,351 45,272
Net assets:
Beginning of year 134,869 31,514 72,410 12,155 47,973 84,416
--------- -------- -------- --------- ------- --------
End of year $ 166,884 $ -- $ 95,658 $ 12,821 $63,324 $129,688
========= ======== ======== ========= ======= ========
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
--------------------------------------------------
Asset Fixed Loan
International Growth Allocation Income Fund Total
------------- ------- ---------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ $ $ $ $ 1,075 $ 7,332
Dividends 2,982
Net appreciation in
fair value of:
Common stock 21,080
Government obligations 2,161
Registered investment
companies 2,805 36,975 7,505 2,694 87,952
--------- -------- -------- --------- ------- --------
Net investment income 2,805 36,975 7,505 2,694 1,075 121,507
--------- -------- -------- --------- ------- --------
Contributions to all plans 7,622 13,343 2,488 1,482 47,460
--------- -------- -------- --------- ------- --------
Withdrawals from all plans (2,109) (3,058) (1,306) (745) (864) (33,103)
--------- -------- -------- --------- ------- --------
Return of contributions (995) (2,389) (354) (238) (9,495)
--------- -------- -------- --------- ------- --------
Transfers from EIP I 32,601
--------- -------- -------- --------- ------- --------
Interfund transfers, net (11,563) 8,807 5,217 5,442 2,098
--------- -------- -------- --------- ------- --------
Increase (decrease) in
assets for the year (4,240) 53,678 13,550 8,635 2,309 158,970
Net assets:
Beginning of year 69,489 112,390 19,971 13,644 13,446 612,277
--------- -------- -------- --------- ------- --------
End of year $ 65,249 $166,068 $ 33,521 $ 22,279 $15,755 $771,247
========= ======== ======== ========= ======= ========
</TABLE>
-15-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED NOVEMBER 30, 1994
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):-
Interest $ 204 $ 2,097 $ 3,993 $ $ $ $
Dividends 974
Net appreciation
(depreciation) in fair value of:
Common stock 18,281
Government obligations (2,137)
Registered investment
companies (89) 1,214 2,025 6,296
-------- -------- ------- ------- ------- ------- -------
Net investment income
(loss) 19,459 2,097 1,856 (89) 1,214 2,025 6,296
-------- -------- ------- ------- ------- ------- -------
Contributions to all plans 2,934 8,164 1,198 2,139 7,864 8,301
-------- -------- ------- ------- ------- ------- -------
Withdrawals from all plans (4,364) (1,274) (4,908) (481) (2,842) (1,965) (1,177)
-------- -------- ------- ------- ------- ------- -------
Transfer from EIP I 71,220 777
-------- -------- ------- ------- ------- ------- -------
Interfund transfers, net (28,483) (54,097) 27,420 (1,521) 27,689 (7,089) 24,423
-------- -------- ------- ------- ------- ------- -------
Increase (decrease) in
assets for the year 60,766 (53,274) 32,532 (893) 28,977 835 37,843
Net assets:
Beginning of year 74,103 84,788 39,878 13,048 18,996 83,581 31,646
-------- -------- ------- ------- ------- ------- -------
End of year $134,869 $ 31,514 $72,410 $12,155 $47,973 $84,416 $69,489
======== ======== ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investment income (loss):- $ $ $ $ 1,578 $ 7,872
Interest 974
Dividends
Net appreciation
(depreciation) in fair value of:
Common stock 18,281
Government obligations (2,137)
Registered investment
companies 3,734 (909) (431) 11,840
-------- ------- ------- ------- --------
Net investment income
(loss) 3,734 (909) (431) 1,578 36,830
-------- ------- ------- ------- --------
Contributions to all plans 14,677 2,888 1,767 49,932
-------- ------- ------- ------- --------
Withdrawals from all plans (1,998) (650) (392) (214) (20,265)
-------- ------- ------- ------- --------
Transfer from EIP I 71,997
-------- ------- ------- ------- --------
Interfund transfers, net 5,265 3,218 2,802 373
-------- ------- ------- ------- --------
Increase (decrease) in
assets for the year 21,678 4,547 3,746 1,737 138,494
Net assets:
Beginning of year 90,712 15,424 9,898 11,709 473,783
-------- ------- ------- ------- --------
End of year $112,390 $19,971 $13,644 $13,446 $612,277
======== ======= ======= ======= ========
</TABLE>
-16-
<PAGE>
ADDITIONAL INFORMATION
----------------------
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS
-----------------------------
HELD FOR INVESTMENT PURPOSES
----------------------------
NOVEMBER 30, 1995
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
(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
------------------- ------------------------------------------- --------- ---------
<S> <C> <C> <C> <C>
* Caterpillar Inc. Common stock; 9,942,402 shares $331,822 $610,215
======== ========
U.S. Treasury Bill 1,055 maturity value, due December 14, 1995 $ 1,026 $ 1,053
U.S. Treasury Bill 235 maturity value, due December 7, 1995 228 235
U.S. Treasury Bill 1,640 maturity value, due December 28, 1995 1,596 1,633
U.S. Treasury Bill 100 maturity value, due January 4, 1996 97 99
U.S. Treasury Bill 750 maturity value, due January 11, 1996 730 745
U.S. Treasury Bill 2,760 maturity value, due February 1, 1996 2,684 2,734
U.S. Treasury Bill 1,360 maturity value, due March 14, 1996 1,324 1,339
U.S. Treasury Bill 1,640 maturity value, due March 21, 1996 1,597 1,613
U.S. Treasury Bill 285 maturity value, due April 4, 1996 277 280
U.S. Treasury Bill 205 maturity value, due April 18, 1996 200 201
U.S. Treasury Bill 308 maturity value, due April 25, 1996 300 301
U.S. Treasury Bill 1,640 maturity value, due May 9, 1996 1,597 1,602
U.S. Treasury Bill 90 maturity value, due May 30, 1996 88 88
-------- --------
$ 11,744 $ 11,923
======== ========
* Caterpillar Inc. 401(k) Master Trust $495,253 $630,566
======== ========
</TABLE>
-17-
<PAGE>
SCHEDULE II
-----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED NOVEMBER 30, 1995
------------------------------------
(Dollars in 000s)
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Current value
Expense of asset on
Identity of Description Purchase Selling Lease incurred with Cost of transaction Net gain
party involved of assets price price rental transaction asset date or (loss)
-------------- ----------- -------- ------- ------ ------------- ------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Caterpillar Inc. 401(k) Master Trust:
Series of 170 pur-
chases $68,933 $ $ $ $68,933 $68,933 $
Series of 53 sales 34,753 34,753
</TABLE>
-18-
<PAGE>
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 3, 1996 related to the financial
statements of the Employees' Investment Plan, which is included in this Annual
Report on Form 11-K.
PRICE WATERHOUSE LLP
Peoria, Illinois
May 3, 1996
<PAGE>
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, 1995
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)
<PAGE>
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.
<PAGE>
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, 1995
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
CATERPILLAR FOREIGN SERVICE EMPLOYEES'
STOCK PURCHASE 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)
<PAGE>
REQUIRED INFORMATION
ITEM 1.
Financial Statements for this Plan are not enclosed since the requirements to
file such financial statements were deemed inapplicable in accordance with the
letter from the Securities and Exchange Commission dated January 26, 1973.
ITEM 2.
(See response to Item 1).
ITEM 3.
(See response to Item 1).
ITEM 4.
Not Applicable.
<PAGE>
CATERPILLAR INC.
TAX DEFERRED SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 3, 1996
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, 1995 and 1994, 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 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 Fund
Information has been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, is fairly stated
in all material respects in relation to the basic financial statements taken
as a whole.
/s/ Price Waterhouse LLP
Peoria, Illinois
<PAGE>
EXHIBIT A
---------
Page 1
CATERPILLAR INC.
----------------
TAX DEFERRED SAVINGS PLAN
-------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
DECEMBER 31, 1995
------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value
(Notes 2 and 4):
Investment in Master Trust
Net Assets $17,832 $ - $27,736 $2,835 $8,256 $23,694 $9,423
======= ==== ======= ====== ====== ======= ======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investments at fair value
(Notes 2 and 4):
Investment in Master Trust
Net Assets $27,316 $4,217 $2,744 $2,384 $126,437
======= ====== ====== ====== ========
</TABLE>
(See notes to financial statements)
-2-
<PAGE>
EXHIBIT A
---------
Page 2
CATERPILLAR INC.
----------------
TAX DEFERRED SAVINGS PLAN
-------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
DECEMBER 31, 1994
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
--------------------------------------------------------------------------------------------------------
Preferred Group of Mutual Funds
Caterpillar Guaranteed ---------------------------------------------------------------
Common Investment Stable Asset
Stock Contract Principal Short-term Money Allo- Fixed Loan
Fund Fund Fund Government Market Value International Growth cation Income Fund Total
---- ---- ---- ---------- ------ ----- ------------- ------ ------ ------ ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at
fair value
(Notes 2 and 4):
Investment in
Master Trust
Net Assets $14,425 $ 8,150 $ 20,744 $ 2,561 $ 6,058 $16,757 $ 9,467 $19,718 $ 2,628 $ 1,781 $ 2,950 $105,239
======= ======= ======== ======= ======= ======= ======= ======= ======= ======= ======= ========
</TABLE>
(See notes to financial statements)
-3-
<PAGE>
EXHIBIT B
---------
Page 1
CATERPILLAR INC.
----------------
TAX DEFERRED SAVINGS PLAN
-------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Employee contributions $ 1,741 $ - $ 1,415 $ 232 $ 992 $ 1,084 $ 1,244
------- -------- ------- ------- ------- ------- -------
Plan interest in net
investment income of
Master Trust (Note 4) 1,495 2,312 237 440 6,335 834
------- -------- ------- ------- ------- ------- -------
Withdrawals (620) (2,331) (147) (438) (884) (389)
Transfers (to)/from other
plans, net (120) (66) (23) (14) (78) (21)
Interfund transfers, net 911 (8,150) 5,662 (25) 1,218 480 (1,712)
------- ------- ------- ------ ------ ------- -------
Withdrawals and
transfers, net 171 (8,150) 3,265 (195) 766 (482) (2,122)
------- ------- ------- ------ ------ ------- -------
Increase (decrease) in net
assets 3,407 (8,150) 6,992 274 2,198 6,937 (44)
Net assets:
Beginning of year 14,425 8,150 20,744 2,561 6,058 16,757 9,467
------- ------- ------- ------ ------ ------- -------
End of year $17,832 $ - $27,736 $2,835 $8,256 $23,694 $ 9,423
======= ======= ======= ====== ====== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Employee contributions $ 2,061 $ 381 $ 264 $ - $ 9,414
------- ------ ------ ------ --------
Plan interest in net
investment income of
Master Trust (Note 4) 5,635 912 350 174 18,724
Withdrawals (700) (142) (79) (764) (6,494)
Transfers (to)/from other
plans, net (100) (11) (3) (10) (446)
Interfund transfers, net 702 449 431 34
------- ------ ------ ------ --------
Withdrawals and
transfers, net (98) 296 349 (740) (6,940)
------- ------ ------ ------ --------
Increase (decrease) in net
assets 7,598 1,589 963 (566) 21,198
Net assets:
Beginning of year 19,718 2,628 1,781 2,950 105,239
------- ------ ------ ------ --------
End of year $27,316 $4,217 $2,744 $2,384 $126,437
======= ====== ====== ====== ========
</TABLE>
(See notes to financial statements)
-4-
<PAGE>
EXHIBIT B
---------
Page 2
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, 1994
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------------------------------------
Preferred Group of Mutual Funds
Caterpillar Guaranteed ---------------------------------------------------------------
Common Investment Stable Asset
Stock Contract Principal Short-term Money Allo- Fixed Loan
Fund Fund Fund Government Market Value International Growth cation Income Fund Total
---- ---- ---- ---------- ------ ----- ------------- ------ ------ ------ ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Employee
contributions $ 996 $ $ 2,672 $ 301 $ 605 $ 1,628 $1,723 $ 3,005 $ 572 $ 422 $ $ 11,924
------- -------- ------- ------ ------ ------- ------ ------- ------ ------ ------ --------
Plan interest in
net investment
income (loss)
of Master
Trust (Note 4) 2,311 569 596 (18) 204 95 69 (261) (59) (43) 308 3,771
------- -------- ------- ------ ------ ------- ------ ------- ------ ------ ------ --------
Withdrawals (608) (563) (1,766) (202) (343) (716) (336) (563) (49) (56) (100) (5,302)
Transfers (to)/
from other
plans, net (12) (42) (121) (14) (2) (117) (37) (127) (34) (4) (24) (534)
Interfund
transfers, net 2,437 (13,710) 7,580 (390) 1,659 (758) 2,618 516 145 (32) (65)
------- -------- ------- ------ ------ ------- ------ ------- ------ ------ ------ --------
Withdrawals and
transfers, net 1,817 (14,315) 5,693 (606) 1,314 (1,591) 2,245 (174) 62 (92) (189) (5,836)
------- -------- ------- ------ ------ ------- ------ ------- ------ ------ ------ --------
Increase
(decrease) in
net assets 5,124 (13,746) 8,961 (323) 2,123 132 4,037 2,570 575 287 119 9,859
Net assets:
Beginning of year 9,301 21,896 11,783 2,884 3,935 16,625 5,430 17,148 2,053 1,494 2,831 95,380
------- -------- ------- ------ ------ ------- ------ ------- ------ ------ ------ --------
End of year $14,425 $ 8,150 $20,744 $2,561 $6,058 $16,757 $9,467 $19,718 $2,628 $1,781 $2,950 $105,239
======= ======== ======= ====== ====== ======= ====== ======= ====== ====== ====== ========
</TABLE>
(See notes to financial statements)
-5-
<PAGE>
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. Participants 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 which
adopt the Plan (the employers) to defer a portion of their compensation until
retirement.
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.
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. 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
- -------------
Employee contributions are made through a pretax compensation deferral as
elected by participating employees, and are contributed to the Plan by the
employer. During 1995, the compensation deferral was limited to (a) the greater
of $4,000 or 4% of the employee's compensation (limited by the Internal Revenue
Code to $9,240 in 1995) for participants earning in excess of $62,345 or (b)
$9,240 for particiapnts earning less than $62,345.
-6-
<PAGE>
During 1994, the compensation deferral was limited to (a) the greater of $4,000
or 4% of the employee's compensation (limited by the Internal Revenue Code to
$9,240 in 1994) for participants earning in excess of $60,530 or (b) $9,240 for
participants earning less than $60,530.
Investment programs
- -------------------
Employees 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.
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 employee 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.
-7-
<PAGE>
Investments
- -----------
The fair value of the Plan's investment in the 401(k) Master Trust (Note 4) is
based upon the beginning of the year value of the Plan's investment plus actual
contributions, transfers and allocated investment income less actual
withdrawals. Income from investments is recorded as earned.
Administrative expenses
- -----------------------
Trustee fees and certain investment and administrative costs are paid by the
Company.
Reclassification
- ----------------
Certain amounts in the December 31, 1994 statement of changes in net assets
available for plan benefits with fund information have been reclassified to
conform with the December 31, 1995 presentation.
NOTE 3 - UNIT VALUES:
- --------------------
The Plan assigns units to participants directing investments to any of the
Preferred Group of Mutual Funds, the Caterpillar Common Stock Fund and the
Stable Principal Fund. The unit values assigned by the Plan reflect the current
values of the individual funds. Total units held (in thousands) by the Plan and
their respective unit values at each month end are shown on the accompanying
schedule on the following page.
-8-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 3 - UNIT VALUES
--------------------
DECEMBER 31, 1995
-----------------
(units in 000's)
<TABLE>
<CAPTION>
January February March April May June July August September October November December
------- -------- ----- ----- ----- ----- ----- ------ --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CATERPILLAR COMMON
STOCK FUND:
Units 823 847 806 791 776 760 785 804 847 863 839 841
Unit value 18.66 18.70 20.10 21.08 21.69 23.07 25.17 24.05 20.56 20.29 22.11 21.20
STABLE PRINCIPAL FUND:
Units 2,736 2,746 2,744 2,747 2,795 2,815 2,802 2,733 2,730 2,732 2,735 2,774
Unit value 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
PREFERRED GROUP OF
MUTUAL FUNDS:-
Money Market:
Units 6,398 6,721 7,529 8,060 8,163 8,508 8,515 8,235 7,920 8,034 8,409 8,257
Unit value 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Short-Term Govern-
ment:
Units 272 272 277 278 284 294 288 284 281 286 285 287
Unit value 9.59 9.64 9.66 9.67 9.80 9.80 9.78 9.79 9.78 9.82 9.84 9.87
Value:
Unit 1,501 1,478 1,470 1,487 1,504 1,491 1,500 1,503 1,492 1,498 1,510 1,578
Unit value 11.53 12.08 12.42 12.82 13.37 13.82 14.35 14.39 14.90 14.46 15.34 15.02
Growth:
Units 1,477 1,464 1,452 1,467 1,484 1,483 1,505 1,523 1,522 1,531 1,548 1,616
Unit value 13.37 13.90 14.59 15.06 15.49 16.63 17.65 17.43 17.95 17.86 18.00 16.90
International:
Units 822 790 770 773 742 738 743 752 742 735 737 751
Unit value 11.25 11.34 11.32 11.84 12.07 12.24 12.87 12.42 12.76 12.54 12.54 12.55
Asset Allocation:
Units 258 261 262 265 267 264 265 282 290 293 308 339
Unit value 10.56 10.86 11.03 11.26 11.79 11.97 12.25 12.35 12.64 12.70 13.15 12.45
Fixed Income:
Units 191 193 194 199 199 204 207 230 238 236 246 259
Unit value 9.68 9.84 9.86 9.94 10.27 10.30 10.22 10.28 10.33 10.42 10.53 10.58
</TABLE>
-9-
<PAGE>
NOTE 4 - MASTER TRUST:
- ---------------------
Under a Master Trust agreement with The Northern Trust Company (the Trustee),
Part II of the Caterpillar Inc. Employees' Investment Plan (EIP II), 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:
<TABLE>
<CAPTION>
<S> <C> <C>
Preferred Short-Term Government Fund Preferred Growth Fund Preferred Money Market Fund
Preferred Asset Allocation Fund Preferred Value Fund Preferred Fixed Income Fund
Preferred International Fund
</TABLE>
CIML manages the Preferred Short-Term Government Fund. All other funds are
managed by unrelated investment managers. Caterpillar Securities, Inc., a
wholly-owned subsidiary of CIML, distributes the shares of the mutual funds
to the Master Trust.
The percentage of the Plan's participation in the Master Trust was determined
based on the December 31, 1995 and 1994 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At December
31, 1995 and 1994, 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:
<TABLE>
<CAPTION>
1995 1994
------ ------
<S> <C> <C>
Caterpillar Inc. Common Stock Fund 11.24% 10.36%
Guaranteed Investment Contract Fund 0% 25.97%
Stable Principal Fund 28.47% 28.87%
Preferred Short-Term Government Fund 22.11% 21.03%
Preferred Money Market Fund 13.10% 12.08%
Preferred Value Fund 17.74% 19.63%
Preferred International Fund 14.23% 14.28%
Preferred Growth Fund 16.74% 17.59%
Preferred Asset Allocation Fund 11.96% 12.87%
Preferred Fixed Income Fund 11.85% 12.88%
Loan Fund 15.16% 21.65%
</TABLE>
Investment valuation
- --------------------
The Master Trust's investments are stated at fair value, except for its
investment contracts with insurance companies which are stated at contract
value, which approximates fair value. Common stock, common trust funds,
government obligations and corporate bonds and other are valued at quoted market
prices. Shares of registered investment companies are valued at quoted market
prices which represent the net asset value of shares held by the Master Trust at
year end. Participant loans are valued at cost which approximates fair value.
-10-
<PAGE>
The net investment income or loss of the Master Trust is reflected in the
financial statements of the Plan based on the actual earnings of each investment
fund as allocated to the Plan based on average investment balances throughout
the year. Refer to pages 12 through 15 for analyses of the net assets and
changes in net assets of the investments of the Master Trust as of December 31,
1995 and 1994.
Return of contributions
- -----------------------
These amounts represent contributions made by certain participants in EIP II
from 1989 through 1994 which exceeded the allowable amount as defined by the
Internal Revenue Code and were subsequently returned to the respective
participants with earnings thereon.
Reclassification
- ----------------
Certain amounts in the December 31, 1994 Master Trust summary of net assets and
Master Trust summary of changes in net assets have been reclassified to conform
with the December 31, 1995 presentation.
-11-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1995
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable --------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $148,480 $ $ $ $ $ $
Registered investment companies 12,721 62,552 128,442 64,790
Common trust funds 6,954 52,724
Participant loans
-------- ---- ------- ------- ------- -------- -------
155,434 52,724 12,721 62,552 128,442 64,790
Investment contracts with insurance
companies, at contract value 44,089
-------- ---- ------- ------- ------- -------- -------
Total investments 155,434 96,813 12,721 62,552 128,442 64,790
Dividend and interest receivable 26 66 59 284 4,281 929
Transfers receivable from EIP I 2,593 13
Contributions receivable 418 506 78 257 710 585
Other receivable/(payable), net 225 30 (38) (59) 163 (89)
-------- ---- ------- ------- ------- -------- -------
Net assets $158,696 $ -- $97,415 $12,820 $63,047 $133,596 $66,215
======== ==== ======= ======= ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
---------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Common stock $ $ $ $ $148,480
Registered investment companies 156,741 34,726 22,890 482,862
Common trust funds 59,678
Participant loans 16,571 16,571
-------- ------- ------- ------- --------
156,741 34,726 22,890 16,571 707,591
Investment contracts with insurance
companies, at contract value 44,089
-------- ------- ------- ------- --------
Total investments 156,741 34,726 22,890 16,571 751,680
Dividend and interest receivable 5,064 270 103 11,082
Transfers receivable from EIP I 2,606
Contributions receivable 1,202 255 149 4,160
Other receivable/(payable), net 151 17 9 (850) (441)
-------- ------- ------- ------- --------
Net assets $163,158 $35,268 $23,151 $15,721 $769,087
======== ======= ======= ======= ========
</TABLE>
-12-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
DECEMBER 31, 1994
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
Caterpillar Guaranteed ------------------------------------------------------------
Common Investment Stable Asset
Stock Contract Principal Short-term Money Interna- Allo- Fixed Loan
Fund Fund Fund Government Market Value tional Growth cation Income Fund Total
---- ---- ---- ---------- ------ ----- ------ ------ ------ ------ ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair
value:
Common stock $132,326 $ $ $ $ $ $ $ $ $ $ $132,326
Registered
investment
companies 12,023 49,764 82,196 62,475 110,183 19,684 13,611 349,936
Common trust
funds 5,494 11,502 16,996
Government
obligations 16,143 16,143
Participant
loans 13,627 13,627
-------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- --------
137,820 27,645 12,023 49,764 82,196 62,475 110,183 19,684 13,611 13,627 529,028
Investment
contracts with
insurance
companies, at
contract value 31,443 43,267 74,710
-------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- --------
Total
investments 137,820 31,443 70,912 12,023 49,764 82,196 62,475 110,183 19,684 13,611 13,627 603,738
Dividend and
interest receivable 31 118 43 185 2,519 3,003 615 514 59 7,087
Transfers receivable
from EIP I 1,062 16 1,078
Contributions
receivable 380 634 98 240 631 769 1,199 213 138 4,302
Other receivable/
(payable), net (4) (57) 200 14 (47) 7 57 122 10 17 319
-------- ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- --------
Net assets $139,289 $31,386 $71,864 $12,178 $50,158 $85,353 $66,304 $112,119 $20,421 $13,825 $13,627 $616,524
======== ======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ========
</TABLE>
-13-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Caterpillar Guaranteed Preferred Group of Mutual Funds
Common Investment Stable ------------------------------------------------
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ 441 $ $ 3,408 $ $ $ $
Dividends 3,007
Net appreciation in fair
value of:
Common stock 11,603
Government obligations 4,747
Registered investment
companies 1,120 3,492 34,119 6,180
-------- ---------- ------- ------- ------- -------- -------
Net investment income 15,051 8,155 1,120 3,492 34,119 6,180
-------- ---------- ------- ------- ------- -------- -------
Contributions to all plans 4,931 5,691 971 3,510 7,412 7,441
-------- ---------- ------- ------- ------- -------- -------
Withdrawals from all plans (8,043) (5,821) (625) (6,582) (2,927) (1,884)
-------- ---------- ------- ------- ------- -------- -------
Return of contributions (1,003) (1,689) (152) (905) (1,770) (995)
-------- ---------- ------- ------- ------- -------- -------
Transfers from EIP I 33,755 373
-------- ---------- ------- ------- ------- -------- -------
Interfund transfers, net (25,284) (31,386) 19,215 (672) 13,001 11,409 (10,831)
-------- ---------- ------- ------- ------- -------- -------
Increase (decrease) in
assets for the year 19,407 (31,386) 25,551 642 12,889 48,243 (89)
Net assets:
Beginning of year 139,289 31,386 71,864 12,178 50,158 85,353 66,304
-------- -------- ------- ------- ------- -------- --------
End of year $158,696 $ - $97,415 $12,820 $63,047 $133,596 $ 66,215
======== ======== ======= ======= ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investment income:-
Interest $ $ $ $ 1,121 $ 4,970
Dividends 3,007
Net appreciation in fair
value of:
Common stock 11,603
Government obligations 4,747
Registered investment
companies 32,918 7,478 2,919 88,226
------- ---------- ------ ------ --------
Net investment income 32,918 7,478 2,919 1,121 112,553
------- ---------- ------ ------ --------
Contributions to all plans 13,351 2,531 1,493 47,331
------- ---------- ------ ------ --------
Withdrawals from all plans (3,115) (1,313) (761) (883) (31,954)
------- ---------- ------ ------ --------
Return of contributions (2,389) (354) (238) (9,495)
------- ---------- ------ ------ --------
Transfers from EIP I 34,128
------- ---------- ------ ------ --------
Interfund transfers, net 10,274 6,505 5,913 1,856
------- ---------- ------ ------ --------
Increase (decrease) in
assets for the year 51,039 14,847 9,326 2,094 152,563
Net assets:
Beginning of year 112,119 20,421 13,825 13,627 616,524
-------- ------- -------- -------- --------
End of year $163,158 $35,268 $ 23,151 $ 15,721 $769,087
======== ======= ======== ======== ========
</TABLE>
-14-
<PAGE>
CATERPILLAR INC. - TAX DEFERRED SAVINGS PLAN
--------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1994
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
Caterpillar Guaranteed ------------------------------------------------
Common Investment Stable
Stock Contract Principal Short-term Money
Fund Fund Fund Government Market Value International
----------- ---------- --------- ---------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):-
Interest $ 231 $ 2,093 $ 4,170 $ $ $ $
Dividends 981
Net appreciation (depreciation)
in fair value of:
Common stock 18,117
Government obligations (2,101)
Registered investment
companies (158) 1,325 427 391
-------- -------- ------- ------- ------- ------- -------
Net investment income
(loss) 19,329 2,093 2,069 (158) 1,325 427 391
-------- -------- ------- ------- ------- ------- -------
Contributions to all plans 3,097 7,827 1,169 2,229 7,630 8,559
-------- -------- ------- ------- ------- ------- -------
Withdrawals from all plans (4,247) (1,430) (5,668) (510) (3,278) (1,997) (1,260)
-------- -------- ------- ------- ------- ------- -------
Transfers from EIP I 61,904 566
-------- -------- ------- ------- ------- ------- -------
Interfund transfers, net (24,173) (54,145) 26,902 (1,708) 29,589 (6,841) 18,465
-------- -------- ------- ------- ------- ------- -------
Increase (decrease) in
assets for the year 55,910 (53,482) 31,130 (1,207) 30,431 (781) 26,155
Net assets:
Beginning of year 83,379 84,868 40,734 13,385 19,727 86,134 40,149
-------- -------- ------- ------- ------- ------- -------
End of year $139,289 $ 31,386 $71,864 $12,178 $50,158 $85,353 $66,304
======== ======== ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
------- ---------- ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investment income (loss):-
Interest $ $ $ $ 1,575 $ 8,069
Dividends 981
Net appreciation (depreciation)
in fair value of:
Common stock 18,117
Government obligations (2,101)
Registered investment
companies (1,616) (800) (424) (855)
-------- ------- ------- ------- --------
Net investment income
(loss) (1,616) (800) (424) 1,575 24,211
-------- ------- ------- ------- --------
Contributions to all plans 14,452 2,825 1,731 49,519
-------- ------- ------- ------- --------
Withdrawals from all plans (1,904) (581) (362) (197) (21,434)
-------- ------- ------- ------- --------
Transfers from EIP I 62,470
-------- ------- ------- ------- --------
Interfund transfers, net 5,922 3,113 2,497 379
-------- ------- ------- ------- --------
Increase (decrease) in
assets for the year 16,854 4,557 3,442 1,757 114,766
Net assets:
Beginning of year 95,265 15,864 10,383 11,870 501,758
-------- ------- ------- ------- --------
End of year $112,119 $20,421 $13,825 $13,627 $616,524
======== ======= ======= ======= ========
</TABLE>
-15-
<PAGE>
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
3, 1996 related to the financial statements of the Tax Deferred Savings Plan,
which is included in this Annual Report on Form 11-K.
PRICE WATERHOUSE LLP
Peoria, Illinois
May 3, 1996
