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