<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, 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
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, 1996 AND 1995
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 12, 1997
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, 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 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.
Schedule I that accompanies the Plan's financial statements does not disclose
the historical cost of certain plan assets held by the Plan trustee. Disclosure
of this information is required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974.
/s/ PRICE WATERHOUSE LLP
Peoria, Illinois
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A
---------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
-------------------------------------------------------------------------
NOVEMBER 30, 1996
-----------------
(Dollars in 000's)
Fund Information
----------------------------------------------------------------------------------
PART 1 PART 2
------------------------- ------------------------------------------------------
Preferred Group of Mutual Funds
Caterpillar Government Caterpillar -----------------------------------------
Common Short-term Common Stable
Stock Investment Stock Principal Short-term Money
Fund Fund Fund Fund Government Market
---- ---- ---- ---- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value (Notes 2 and 4):
Cash and cash equivalent $ 35 $ $ $ $ $
Caterpillar Inc. common stock, 9,654,981
shares 763,950
Collective Government Short-Term Investment
Fund 12,649
Registered investment companies
Investment in Master Trust Net Assets 157,656 74,392 11,381 77,692
----------- ---------- ----------- --------- ---------- -------
Total cash and investments 763,965 12,649 157,656 74,392 11,381 77,692
Employer and participant contributions receivable 4,805 107
Dividends receivable 10 53
Transfers payable to EIP II (3,876) (28)
----------- ---------- ----------- --------- ----------- -------
Total net assets $ 764,924 $ 12,781 $ 157,656 $ 74,392 $ 11,381 $77,692
=========== ========== =========== ========= =========== =======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-------------------------------
PART 2
-------------------------------
Preferred Group of Mutual Funds
-------------------------------
Value International
----- -------------
<S> <C> <C>
Investments, at fair value (Notes 2 and 4):
Cash and cash equivalents $ $
Caterpillar Inc. common stock, 9,654,981
shares
Collective Government Short-Term Investment
Fund
Registered investment companies
Investment in Master Trust Net Assets 151,276 72,709
-------- ------------
Total cash and investments 151,276 72,709
Employer and participant contributions receivable
Dividends receivable
Transfers payable to EIP II
-------- -------------
Total net assets $151,276 $ 72,709
======== =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------
PART 2
------------------------------------------------------------------
Preferred Group of Mutual Funds
---------------------------------------------
Self-
Asset Fixed Small Loan Directed
Growth Allocation Income Cap Fund Fund Total
------ ---------- ------ ----- ---- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Investments at fair value (Notes 2 and 4):
Cash and cash equivalents $ $ $ $ $ $ $ 35
Caterpillar Inc. common stock, 9,654,981
shares 763,950
Collective Government Short-Term Investment
Fund 12,649
Registered investment companies 8,987 8,987
Investment in Master Trust Net Assets 161,657 42,112 20,330 14,653 14,477 798,335
---------- ---------- -------- -------- -------- ------ ----------
Total cash and Investments 161,657 42,112 20,330 14,653 14,477 8,987 1,583,956
Employer and participant contribution receivable 4,912
Dividends receivable 63
Transfers payable to EIP II (3,904)
---------- ---------- -------- -------- -------- ------ ----------
$ 161,657 $ 42,112 $ 20,330 $ 14,653 $ 14,477 $8,987 $1,585,027
========== ========== ======== ======== ======== ====== ==========
Total net assets
</TABLE>
(See notes to financial statements)
-2-
<PAGE>
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 1 PART 2
---------------------- -------------------------------------------------------------------
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
---- ---- ---- ---- ---- ---------- ------- -----
<S> <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
-------- ------- -------- ---------- ------- ------ ------- --------
Total cash and investments 610,237 12,118 145,298 65,325 9,621 53,550 104,976
Employer and participant 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
======== ======= ======== ========== ======= ====== ======= ========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------
PART 2
----------------------------------------------------------------
Preferred Group of Mutual Funds
------------------------------------------
Asset Fixed Loan
International Growth Allocation Income Fund Total
------------- ------ ---------- ------- ---- -----
<S> <C> <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 55,313 135,517 29,097 19,480 12,389 630,566
------- -------- ------- ------- ------- ----------
Total cash and investments 55,313 135,517 29,097 19,480 12,389 1,252,921
Employer and participant contributions
receivable 5,408
Dividends receivable 3,450
Other receivable/(payable) 1,154
------- -------- ------- ------- ------- ----------
Total net assets $55,313 $135,517 $29,097 $19,480 $12,389 $1,262,933
======= ======== ======= ======= ======= ==========
</TABLE>
(See notes to financial statements)
-3-
<PAGE>
EXHIBIT B
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED NOVEMBER 30, 1996
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------------------------------------
PART 1 PART 2
------------------------ --------------------------------------------------------------------------
Preferred Group of Mutual Funds
Caterpillar Government Caterpillar ------------------------------------------------------------
Common Short-Term Common Stable
Stock Investment Stock Principal Short-term Money
Fund Fund Fund Fund Government Market Value International
----------- ---------- ----------- --------- ---------- -------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participant (Note 1) $ 43,404 $ 1,803 $ 2,788 $ 3,348 $ 609 $ 2,403 $ 7,716 $ 5,816
Employer (Notes 1 and 2) 25,222
--------- ------- -------- ------- ------- -------- -------- -------
68,626 1,803 2,788 3,348 609 2,403 7,716 5,816
--------- ------- -------- ------- ------- -------- -------- -------
Investment income:-
Interest 84 825
Dividends 14,548
Net appreciation
(depreciation) in fair
value of:
Common stock 175,389
Government obligations (180)
Registered investment
companies
Plan interest in net
investment income of
Master Trust (Note 4) 41,040 3,849 544 2,978 30,918 10,214
--------- ------- -------- ------- ------- -------- -------- -------
Net investment income 190,021 645 41,040 3,849 544 2,978 30,918 10,214
--------- ------- -------- ------- ------- -------- -------- -------
Withdrawals (66,096) (1,264) (6,181) (4,982) (1,064) (11,717) (3,685) (1,724)
Transfers from other
plans, net 68 106 6 96 72 52
Interfund transfers, net (47,834) (563) (25,357) 6,746 1,665 30,382 11,279 3,038
--------- ------- -------- ------- ------- -------- -------- -------
Withdrawals and
transfers, net (113,930) (1,827) (31,470) 1,870 607 18,761 7,666 1,366
--------- ------- -------- ------- ------- -------- -------- -------
Increase in net assets 144,717 621 12,358 9,067 1,760 24,142 46,300 17,396
Net assets:
Beginning of year 620,207 12,160 145,298 65,325 9,621 53,550 104,976 55,313
--------- ------- -------- ------- ------- -------- -------- -------
End of year $ 764,924 $12,781 $157,656 $74,392 $11,381 $ 77,692 $151,276 $72,709
========= ======= ======== ======= ======= ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------
PART 2
------------------------------------------------------------------------------
Preferred Group of Mutual Funds
-----------------------------------------
Self-
Asset Fixed Small Loan Directed
Growth Allocation Income Cap Fund Fund Total
-------- ---------- ------- ------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participant (Note 1) $ 11,975 $ 2,861 $ 1,321 $ 853 $ $ $ 84,897
Employer (Notes 1 and 2) 25,222
-------- ------- ------- ------- ------- ------ ----------
11,975 2,861 1,321 853 110,119
-------- ------- ------- ------- ------- ------ ----------
Investment income:-
Interest 909
Dividends 14,548
Net appreciation
(depreciation) in fair
value of:
Common stock 175,389
Government obligations (180)
Registered investment
companies 494 494
Plan interest in net
investment income of
Master Trust (Note 4) 24,634 6,327 896 1,506 1,133 124,039
-------- ------- ------- ------- ------- ------ ----------
Net investment income 24,634 6,327 896 1,506 1,133 494 315,199
-------- ------- ------- ------- ------- ------ ----------
Withdrawals (3,934) (1,368) (1,365) (231) (222) (103,833)
Transfers from other
plans, net 122 28 23 36 609
Interfund transfers, net (6,657) 5,167 (25) 12,525 1,141 8,493
-------- ------- ------- ------- ------- ------ ----------
Withdrawals and
transfers, net (10,469) 3,827 (1,367) 12,294 955 8,493 (103,224)
-------- ------- ------- ------- ------- ------ ----------
Increase in net assets 26,140 13,015 850 14,653 2,088 8,987 322,094
Net assets:
Beginning of year 135,517 29,097 19,480 12,389 1,262,933
-------- ------- ------- ------- ------- ------ ----------
End of year $161,657 $42,112 $20,330 $14,653 $14,477 $8,987 $1,585,027
======== ======= ======= ======= ======= ====== ==========
</TABLE>
(See notes to financial statements)
-4-
<PAGE>
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 1 PART 2
---------------------- -----------------------------------------------------------------------------
Caterpillar Caterpillar Guaranteed Preferred Group of Mutual
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:
Participant (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 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>
--------------------------------------
--------------------------------------
Funds
-----------------------------
Asset Fixed Loan
Growth Allocation Income Fund Total
-------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Contributions:
Participant (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 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)
-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. Employees should refer to the
Plan agreement for a more complete description of the Plan's provisions.
General
- -------
The Plan is a defined contribution plan established by Caterpillar Inc. (the
Company) to enable eligible employees of the Company and its subsidiaries (the
employers) which adopt the Plan to accumulate funds.
Participation
- -------------
Generally, employees of participating employer companies, other than those
employed under collective bargaining agreements, who meet certain age, service
and citizenship or residency requirements are eligible to participate in the
plan. Participation commences upon an eligible employee's filing of an
application with the Investment Plan Committee. Participating eligible employees
(the participants) may acquire ownership interests in the Company through
purchases of its common stock (Part 1). Additionally, the participants may
elect to defer a portion of their compensation until retirement under the
Special Investment Supplement of the Plan (Part 2).
Participant accounts
- --------------------
Accounts are maintained separately for Part 1 and Part 2 for each participant.
The participant's separate account under Part 1 is credited with the
participant's contribution, the employer's contribution and an allocation of
Plan earnings. The participant's account under Part 2 of the Plan is credited
with the participant's contribution as defined below and an allocation of Plan
earnings. Allocations of earnings are based on participant account balances, as
defined. The benefit to which a participant is entitled is the benefit that can
be provided from the participant's accounts.
Loan provisions
- ---------------
The Plan provides for participant loans against eligible participants' Part 2
separate account balances. Eligible employees obtain participant loans by
filing a loan application with the Company and receiving approval thereof. Loan
amounts are generally limited to the lesser of $50,000 or 50% of the individual
participant's account balance, within certain regulatory restrictions. Loan
repayment terms may range from 6 to 117 months depending on the type of loan and
bear interest at the prime interest rate plus 1% rounded to the nearest whole
per cent. Repayments, including interest, are made through after-tax payroll
deductions and are credited to the individual participant's account balance.
Loan transactions are treated as a transfer to (from) the applicable investment
fund (from) to the Loan fund.
Contributions
- -------------
Part 1 -
Participant contributions are made through after-tax payroll deductions based on
a percentage (2%-6%) of total earnings as elected by the employee. Participants
with 25 or more years of service with the employers may contribute an additional
1%-4% of earnings.
-6-
<PAGE>
Employer contributions are 50%, 66-2/3% or 80% of participant contributions (up
to 6% of earnings) based on the participant's years of service.
Part 2 -
Participant contributions are made through a pretax compensation deferral as
elected by the participants and are contributed to the Plan by the employer.
During 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.
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
- -------------------
Part 1 -
Employer contributions are invested entirely in Caterpillar Inc. common stock.
Participants may elect to have their contributions invested as follows: (1) 100%
in Caterpillar Inc. common stock or (2) 50% in Caterpillar Inc. common stock and
50% a Collective Government Short-Term Investment Fund (which replaced the
government securities fund option available in 1995). The Collective Government
Short-Term Investment Fund is managed by The Northern Trust Company.
Part 2 -
Participants may elect to have their contributions invested in any combination
of the funds shown on the accompanying statements of changes in net assets
available for plan benefits with fund information. In 1996, a self-directed fund
option was added to allow participants to invest in various other mutual funds
outside of the Preferred Group of Mutual Funds. Contributions to and withdrawals
from this self-directed fund occur through transfers to/from other elected
funds. State Street Bank serves as custodian for funds invested through this
self-directed fund option.
Interfund transfers
- -------------------
Transfers of assets between investment funds are recorded on a net basis in the
statement of changes in net assets available for plan benefits with fund
information.
Vesting and distribution provisions
- -----------------------------------
Part 1 -
Participants are fully vested at all times in Caterpillar Inc. common stock or
government securities purchased with participant contributions.
Participants begin vesting in shares purchased with employer contributions
generally after the end of the second year of plan participation. Participants
generally vest at the rate of 33% per year, resulting in full vesting by
participants in employer contributions after five years of service with the
Company. Any amounts not vested at withdrawal which are forfeited will be
applied to reduce the amount of future employer contributions to the Plan.
Shares become fully vested upon retirement, permanent disability or death.
-7-
<PAGE>
While an employee, a participant may elect to withdraw all participant purchased
shares of common stock, his share of the government short-term investment fund
and all earnings on participant contributions as provided by the Plan. Employer
contributions may also be withdrawn based on vested status as provided by the
Plan. Upon termination of employment, participants may elect (with spousal
consent, if applicable) to receive their shares by immediate distribution or a
deferred distribution. If termination is due to retirement or disability,
participants may elect (with spousal consent, if applicable) various annuity
payments.
Part 2 -
Participants are fully vested in their participant contributions. Upon
termination of employment for any reason, including death, retirement or total
and permanent disability, or upon Plan termination, the balance or balances in
participants' accounts are distributable.
Administration
- --------------
The Plan is administered by the Investment Plan Committee, which is responsible
for nonfinancial matters, and the Benefits Funds Committee, which is responsible
for financial aspects of the Plan. Caterpillar Inc. and the Benefit Funds
Committee have entered into trust agreements with The Northern Trust Company to
receive contributions, administer the assets of the Plan and distribute
withdrawals pursuant to the Plan. Prior to 1996, The First National Bank of
Chicago was the trustee for EIP Part 1.
Plan termination
- ----------------
In the event the Plan is terminated or partially terminated, each participant in
Part 1 shall also have a fully vested interest in the assets attributable to
employer contributions.
Federal income tax status
- -------------------------
The Internal Revenue Service has determined and informed the Company by letter
dated March 8, 1990, that the Plan and related trust are designed in accordance
with applicable sections of the Internal Revenue Code (IRC). The Plan has been
amended subsequent to amendments covered by the determination letter; however,
the Plan administrator and the Plan's legal counsel believe that the Plan is
designed and is currently being operated in compliance with the applicable
requirements of the IRC.
NOTE 2 - SUMMARY OF SIGNIFICANT
- -------------------------------
ACCOUNTING POLICIES:
--------------------
Basis of accounting
- -------------------
The Plan's accounts are maintained on the accrual basis of accounting.
Investments
- -----------
The Plan's investments are stated at fair value. The Caterpillar Inc. common
stock and the U.S. Government securities are valued at quoted market prices.
The fair value of the Plan's investment in the Collective Government Short-Term
Investment Fund and the 401(k) Master Trust (Note 4) is based upon the beginning
of the year value of the Plan's investment plus actual contributions, transfers
and allocated investment income less actual withdrawals. Income from
investments is recorded as earned.
-8-
<PAGE>
Contributions
- -------------
Beginning in 1996, contributions to the Caterpillar Common Stock Fund under Part
1 of the Plan are made directly to the trust and shares are immediately
purchased by the trust on the open market. In 1995, participant contributions to
the Caterpillar Common Stock Fund under Part 1 of the Plan were made in-kind, as
shares of Caterpillar Inc. common stock in the amount of such contributions were
purchased by the Company on the open market and transferred to the Plan. All
in-kind contributions were recorded at fair value.
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
effect the reported amounts of assets, liabilities, income and benefit payments.
Actual results could differ from those estimates. The Company believes the
techniques and assumptions used in establishing these amounts are appropriate.
NOTE 3 - UNIT VALUES:
- ---------------------
Part 2 of the Plan assigns units to participants directing investments to 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 following page.
-9-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 3 - UNIT VALUES
--------------------
NOVEMBER 30, 1996
-----------------
(units in 000's)
<TABLE>
<CAPTION>
1 9 9 5 1 9 9 6
------- ------------------------------------------------------------------------------------------
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 6.504 6,169 5,447 5,501 5,909 5,882 6,040 6,251 5,771 5,488 6,090 5,633
Unit value 21.20 23.09 23.93 24.33 22.94 23.47 24.19 23.55 24.56 26.76 24.49 27.99
Preferred Group of
Mutual Funds:
Stable Principal Fund:
Units 6,665 6,779 7,140 7,169 7,031 7,070 7,017 6,857 7,100 7,383 7,250 7,439
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 53,515 55,190 59,649 59,501 55,409 56,420 56,511 55,487 64,365 72,390 67,921 77,693
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 970 981 1,042 1,055 1,039 1,022 977 984 1,064 1,088 1,079 1,155
Unit value 9.87 9.90 9.82 9.79 9.76 9.73 9.76 9.73 9.73 9.76 9.82 9.85
Value -
Units 7,209 7,318 7,637 7,788 7,735 7,831 7,789 7,761 7,842 7,864 7,877 8,008
Unit value 15.02 15.53 15.85 16.13 16.37 16.69 16.65 16.03 16.67 17.49 18.05 18.89
Growth -
Units 7,882 8,014 7,942 8,046 7,979 7,964 7,990 8,139 8,186 8,073 8,033 7,890
Unit value 16.90 16.89 17.62 17.60 18.57 19.02 18.52 16.87 17.75 19.14 19.00 20.49
International -
Units 4,468 4,581 4,636 4,714 4,868 4,968 4,900 4,853 4,936 5,014 4,941 5,014
Unit value 12.55 12.52 12.95 13.19 13.72 13.74 13.72 13.35 13.59 13.69 13.82 14.50
Asset Allocation
Units 2,463 2,545 2,808 2,894 2,855 2,802 2,808 2,795 2,829 2,844 2,806 2,949
Unit value 12.45 12.78 12.74 12.68 12.70 12.87 12.88 12.55 12.65 13.10 13.48 14.28
Fixed Income -
Units 1,909 1,982 2,185 2,189 2,093 1,926 1,852 1,878 1,964 1,959 1,856 1,953
Unit value 10.58 10.59 10.35 10.21 10.09 10.02 10.09 10.06 9.99 10.11 10.28 10.41
Small Cap -
Units 431 619 664 923 1,307 1,255 1,254 1,217 1,248 1,204 1,194
Unit value 10.43 10.63 10.92 11.55 11.98 11.25 10.58 11.04 11.61 11.55 12.27
</TABLE>
-10-
<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 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 November 30, 1996 and 1995 market values of net assets, as
accumulated by the Trustee for the investment funds of each plan. At November
30, 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 86.41% 87.07%
Preferred Stable Principal Fund 70.95% 68.29%
Preferred Short-Term Government Fund 76.97% 75.04%
Preferred Money Market Fund 85.58% 84.56%
Preferred Value Fund 81.47% 80.95%
Preferred International Fund 85.44% 84.77%
Preferred Growth Fund 81.37% 81.60%
Preferred Asset Allocation Fund 86.84% 86.80%
Preferred Fixed Income Fund 88.10% 87.44%
Preferred Small Cap Fund 86.35% 0%
Loan Fund 71.93% 78.64%
</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, 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.
-12-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
NOVEMBER 30, 1996
-----------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-----------------------------------------------------------------------------
Caterpillar
Common Stable
Stock Principal Short-term Money Asset
Fund Fund Government Market Value International Growth Allocation
----------- --------- ---------- ------- ----- ------------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
Cash and cash equivalents $ 10,453 $ $ $ $ $ $ $
Common stock 167,535
Registered investment
companies 104,333 14,706 90,561 184,668 84,269 197,146 48,053
Participant loans
-------- -------- ---------- --------- -------- ---------- --------- ---------
Total investments 177,988 104,333 14,706 90,561 184,668 84,269 197,146 48,053
Dividend and interest receivable 28
Transfers receivable from EIP 1 3,876 28
Contributions receivable 453 436 69 445 870 592 1,260 297
Other receivable/(payable), net 103 89 10 (256) 149 239 261 146
-------- -------- ---------- --------- -------- ---------- --------- ---------
Net assets $182,448 $104,858 $14,785 $90,778 $185,687 $85,100 $198,667 $ 48,496
======== ======== ========== ========= ======== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------
Fixed Small Loan
Income Cap Fund Total
------- ----- ---- -----
<S> <C> <C> <C> <C>
Investments, at fair value
Cash and cash equivalents $ $ $ $ 10,453
Common stock 167,535
Registered investment
companies 22,954 16,772 763,462
Participant loans 20,797 20,797
------- ------- -------- --------
Total investments 22,954 16,772 20,797 962,247
Dividend and interest receivable 28
Transfers receivable from EIP 1 3,904
Contributions receivable 132 127 4,681
Other receivable/(payable), net (10) 72 (670) 133
------- ------- -------- --------
Net assets $23,076 $16,971 $ 20,127 $970,993
======= ======= ======== ========
</TABLE>
-13-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF NET ASSETS
---------------------------------------------
NOVEMBER 30, 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 $ 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 1 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 1 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>
-14-
<PAGE>
CATERPILLAR INC. - EMPLOYEES' INVESTMENT PLAN
---------------------------------------------
NOTE 4 - MASTER TRUST - SUMMARY OF CHANGES IN NET ASSETS
--------------------------------------------------------
FOR THE YEAR ENDED NOVEMBER 30, 1996
------------------------------------
(Dollars in 000's)
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
------------------------------------------------------------------------------------
Caterpillar
Common Stable
Stock Principal Short-term Money Asset Fixed
Fund Fund Government Market Value International Growth Allocation Income
---- ---- --------- ------ ----- ------------- ------ ---------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:-
Interest $ 347 $ $ $ $ $ $ $ $
Dividends 3,633
Net appreciation in fair value of:
Common stock 43,310
Registered investment companies 5,528 723 3,508 38,004 11,951 30,129 7,308 1,021
-------- -------- ------- ------- -------- ------- -------- ------- -------
Net investment income 47,290 5,528 723 3,508 38,004 11,951 30,129 7,308 1,021
-------- -------- ------- ------- -------- ------- -------- ------- -------
Contributions to all plans 5,017 6,060 969 3,720 10,170 7,538 15,965 3,759 1,864
-------- -------- ------- ------- -------- ------- -------- ------- -------
Withdrawals from all plans (7,456) (7,311) (1,202) (12,391) (4,908) (2,015) (5,228) (1,702) (1,481)
-------- -------- ------- ------- -------- ------- -------- ------- -------
Transfers from EIP 1 47,834 563
-------- -------- ------- ------- -------- ------- -------- ------- -------
Interfund transfers, net (77,121) 4,923 1,474 32,054 12,733 2,377 (8,267) 5,610 (607)
-------- -------- ------- ------- -------- ------- -------- ------- -------
Increase in assets for the year 15,564 9,200 1,964 27,454 55,999 19,851 32,599 14,975 797
Net assets:
Beginning of year 166,884 95,658 12,821 63,324 129,688 65,249 166,068 33,521 22,279
-------- -------- ------- ------- -------- ------- -------- ------- -------
End of year $182,448 $104,858 $14,785 $90,778 $185,687 $85,100 $198,667 $48,496 $23,076
======== ======== ======= ======= ======== ======= ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Preferred Group of Mutual Funds
-------------------------------
Small Loan
Cap Fund Total
----- ---- -----
<S> <C> <C> <C>
Investment income:-
Interest $ $ 1,489 $ 1,836
Dividends 3,633
Net appreciation in fair value of:
Common stock 43,310
Registered investment companies 1,707 99,879
------- ------- --------
Net investment income 1,707 1,489 148,658
------- ------- --------
Contributions to all plans 1,157 56,219
------- ------- --------
Withdrawals from all plans (240) (431) (44,365)
------- ------- --------
Transfers from EIP 1 48,397
------- ------- --------
Interfund transfers, net 14,347 3,314 (9,163)
------- ------- --------
Increase in assets for the year 16,971 4,372 199,746
Net assets:
Beginning of year 15,755 771,247
------- ------- --------
End of year $16,971 $20,127 $970,993
======= ======= ========
</TABLE>
-15-
<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 Asset Fixed
Fund Fund Fund Government Market Value International Growth Allocation Income
----------- ---------- --------- ---------- ------- -------- ------------- -------- ---------- -------
<S> <C> <C> <C> <C> <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 2,805 36,975 7,505 2,694
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Net investment income 24,536 173 7,771 1,042 3,438 33,493 2,805 36,975 7,505 2,694
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Contributions to all plans 4,893 5,820 991 3,492 7,329 7,622 13,343 2,488 1,482
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Withdrawals from all plans (7,747) (277) (6,615) (539) (6,738) (3,105) (2,109) (3,058) (1,306) (745)
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Return of contributions (1,003) (1,689) (152) (905) (1,770) (995) (2,389) (354) (238)
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Transfers from EIP 1 32,225 376
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Interfund transfers, net (20,889) (31,410) 17,961 (676) 15,688 9,325 (11,563) 8,807 5,217 5,442
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
Increase (decrease) in
assets for the year 32,015 (31,514) 23,248 666 15,351 45,272 (4,240) 53,678 13,550 8,635
Net assets:
Beginning of year 134,869 31,514 72,410 12,155 47,973 84,416 69,489 112,390 19,971 13,644
-------- ------- ------- ------- ------- -------- ------- -------- ------- -------
End of year $166,884 $ - $95,658 $12,821 $63,324 $129,688 $65,249 $166,068 $33,521 $22,279
======== ======= ======= ======= ======= ======== ======= ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Loan
Fund Total
------- --------
<S> <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 87,952
------- --------
Net investment income 1,075 121,507
------- --------
Contributions to all plans 47,460
------- --------
Withdrawals from all plans (864) (33,103)
------- --------
Return of contributions (9,495)
------- --------
Transfers from EIP 1 32,601
------- --------
Interfund transfers, net 2,098
------- --------
Increase (decrease) in
assets for the year 2,309 158,970
Net assets:
Beginning of year 13,446 612,277
------- --------
End of year $15,755 $771,247
======= ========
</TABLE>
-16-
<PAGE>
ADDITIONAL INFORMATION
----------------------
<PAGE>
SCHEDULE I
-----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1996
-----------------
(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; 9,654,981 shares $368,198 $763,950
======== ========
* Northern Trust Collective Government Short-Term Investment Fund $ 12,649 $ 12,649
======== ========
* Caterpillar Inc. 401(k) Master Trust $598,029 $798,335
======== ========
Alger Growth Portfolio; 7,592.19 units 76
Babson Value Fund; 772.11 units 30
Baird Baron Asset Fund; 1,764.03 units 63
Baron Growth and Income Fund; 1,293.33 units 24
Benham Global Gold Fund; 5,337.11 units 65
Global Natural Resources Index; 463.62 units 6
American Century - Target Maturities Trust 2005
Portfolio; 85.37 units 5
Berger Small Company Growth Fund; 2,765.68 units 12
New Generation Fund; 88.57 units 1
Brinson Brandywine Fund; 1,192.12 units 41
Bull & Bear Gold Investment Limited; 1,269.82 units 17
Cohen & Steers Realty Shares; 438.86 units 18
Colonial Newport Tiger Fund Class A; 34.75 units 0
Columbia Real Estate Fund; 389.13 units 6
Special Fund; 1,351.60 units 33
Delaware Group Delcap Fund; 31.62 units 1
Dreyfus Aggressive Growth Fund; 1,039.82 units 20
Large Company Fund; 863.26 units 17
New Leaders Fund; 336.23 units 14
Fidelity Advisor Global B Fund; 832.29 units 22
Focus Trust Investment Fund; 516.98 units 7
Founders Blue Chip Fund; 7,782.06 units 66
Fronteer Fund; 441.51 units 15
Growth Fund; 1,865.61 units 33
Discovery Fund; 496.52 units 13
Passport Fund; 2,831.10 units 39
Worldwide Fund; 1,894.57 units 42
Franklin Strategic Global Healthcare Fund; 49.95 units 1
GAM International Fund; 351.68 units 8
Govett Smaller Company Fund; 57.62 units 1
Guinness Flight China Fund; 222.41 units 4
John Hancock Special Equity B Fund; 571.43 units 14
Harbor Bond Fund; 2,556.07 units 30
International Fund; 15.83 units 1
International Growth Fund; 171.70 units 3
</TABLE>
(Continued)
-17-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1996
-----------------
(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>
Harris Associates Oakmark Fund; 2,989.00 units $ $ 103
Heartland Group Small Cap Fund; 3,307.75 units 46
Hotchkis & Wiley International Fund; 6,116.13 units 136
IAI Investments Capital Appreciation Fund; 994.59 units 15
Invesco Strategic Gold Fund; 2,506.36 units 19
Strategic Leisure Portfolio; 214.45 units 5
Strategic Utility Portfolio; 412.88 units 5
European Small Company Fund; 105.41 units 2
International European Fund; 331.91 units 5
Janus Janus Fund; 384.50 units 11
Growth and Income Fund; 2,376.50 units 51
Worldwide Fund; 8,845.01 units 318
Twenty Fund; 1,140.03 units 39
Flexible Income Fund; 2,203.90 units 22
Olympus Fund; 193.05 units 3
Enterprise Fund; 308.45 units 10
Overseas Fund; 10,584.54 units 163
Mercury Fund; 5,457.49 units 103
Balanced Fund; 130.80 units 2
Japan Fund VII Investment Fund; 279.65 units 2
Kaufmann Income Fund; 16,311.39 units 95
Lexington Strategic Silver Fund; 1,055.78 units 5
Lindner Bulwark Investors Shares; 823.72 units 7
Loomis Sayles Bond Fund; 215.43 units 3
MAS Value Fund; 140.58 units 2
Managers International Equity Fund; 189.93 units 8
Montgomery Emerging Markets Fund Class R; 2,816.76 units 39
Emerging Asia Fund Class R; 825.76 units 12
Global Communication Fund; 122.76 units 2
Small Capital Opportunities Fund; 940.18 units 14
Growth Fund; 4,637.30 units 99
Mutual Series Shares Fund Class Z; 874.09 units 87
Qualified Income Fund; 3,069.79 units 106
Beacon Fund; 1,997.81 units 83
Discovery Fund; 8,653.08 units 159
European Fund; 410.36 units 5
Neuberger and Berman Guardian Trust Fund; 2,494.22 units 41
Partners Fund; 1,423.89 units 25
Northeast Investors CTFS Beneficial Fund; 2,238.74 units 25
Oberweis Emerging Growth Fund; 2,202.28 units 70
Oppenheimer Strategic Income Fund Class C; 4,131.36 units 20
PBHG Growth Fund; 25,922.49 units 699
Large Capital Growth Fund; 2,350.28 units 39
Emerging Growth Fund; 7,150.20 units $ 178
</TABLE>
-18-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1996
-----------------
(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>
PBHG Select Equity Fund; 8,493.17 units $ $ 172
Technology and Communications Fund; 3,641.83 units 64
Core Growth Fund; 6,344.54 units 87
Pioneer Capital Growth B Fund; 25.73 units 1
Perkins Opportunity Fund; 20.28 units 0
Putnam OTC Emerging Growth Fund; 104.31 units 2
New Opportunity Class A Fund; 11.11 units 0
New Opportunity Class B Fund; 101.85 units 4
Robertson Stephens Value Fund; 4,197.94 units 110
Contrarian Fund; 2,085.16 units 35
Developing Countries Fund; 523.01 units 5
Partners Fund; 3,227.41 units 48
Growth and Income Fund; 324.15 units 5
Natural Resources Fund; 694.93 units 10
T Rowe Price Dividend Growth Fund; 153.37 units 3
Equity Income Fund; 2,471.34 units 58
Blue Chip Fund; 142.39 units 3
Mid Capital Growth Fund; 227.74 units 6
New Era Fund; 1,720.87 units 48
New Horizon Fund; 1,225.40 units 30
International Stock Fund; 1,269.23 units 18
European Fund; 1,326.22 units 23
International New Asia Fund; 789.38 units 7
Science & Technology Fund; 1,448.60 units 50
Spectrum Fund; 177.18 units 3
Rydex Ursa Fund; 5,983.49 units 41
Juno Fund; 1,340.53 units 12
Safeco Equity Income Fund; 6,704.07 units 118
Seligman Communication Fund; 113.12 units 3
Seven Seas Money Market Fund; 1,341,639.51 units 1,342
S&P 500 Index Fund; 3,302.01 units 53
Small Cap Fund; 525.76 units 9
Emerging Market Fund; 955.51 units 10
Sogen International Fund; 1,263.99 units 35
Stein Roe International Fund; 450.05 units 5
Young Investor Fund; 1,576.91 units 31
Capital Opportunities Fund; 12,494.61 units 365
Strong Corporate Bond Fund; 2,259.00 units 25
Growth Fund; 5,916.15 units 115
Schafer Value Fund; 216.08 units 11
Asia Pacific Fund; 1,467.64 units 14
Government Securities Fund; 2,001.51 units 21
Discovery Fund; 60.46 units 1
International Bond Fund; 1,822.78 units 22
</TABLE>
(Continued)
-19-
<PAGE>
SCHEDULE I
-----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1996
-----------------
(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>
Strong Opportunity Fund; 142.92 units $ $ 6
Templeton Developing Markets Class I Fund; 3,904.34 units 61
Developing Markets Class II Fund; 1,911.12 units 29
Foreign Fund; 5,640.44 units 58
Foreign Class II Fund; 1,613.92 units 16
Third Avenue Value Fund; 735.88 units 19
Tweedy Browne Global Value Fund; 3,022.78 units 47
American Value Fund; 934.97 units 15
Twentieth Century Value Fund; 4,477.84 units 32
Ultra Fund; 1,856.83 units 59
United Services U.S. World Gold Fund; 3,948.13 units 82
Gold Shares Fund; 50,552.94 units 76
Van Wagoner Micro-Cap Fund; 174.14 units 2
Emerging Growth Fund; 12,020.72 units 159
Mid-Cap Fund; 215.56 units 3
Vanguard Bond Index Total Bond Market Fund; 4,293.29 units 43
Windsor II Portfolio; 348.35 units 9
Index Trust Fund; 2,046.20 units 146
Value Index Fund; 966.32 units 17
Growth Index Fund; 658.67 units 11
Warburg Pincus Capital Appreciation Fund; 237.95 units 5
Emerging Growth Fund; 898.52 units 30
International Equity Fund; 3,611.51 units 78
Emerging Markets Fund; 717.93 units 9
Post-Venture Capital Fund - Common Shares;
264.07 units 4
Small Company Value Fund - Common Shares;
1,561.44 units 23
Wasatch Mid-Cap Fund; 112.17 units 2
Wright Equifund Japan Fund; 1,191.90 units 10
Equifund Netherlands Fund; 490.20 units 6
Fidelity Worldwide Fund; 130.98 units 2
Diversified International Fund; 3,166.44 units 48
International Value Fund; 5,944.29 units 71
Emerging Markets Fund; 1,196.89 units 21
Market Index Fund; 82.80 units 5
Capital & Income Fund; 1,618.80 units 15
Stock Selector Fund; 2,503.41 units 66
Asset Manager: Growth Fund; 117.79 units 2
Contra Fund; 2,266.16 units 100
Mid-Cap Stock Fund; 1,025.47 units 16
Real Estate Investment Portfolio; 6,144.90 units 102
Equity - Income II Fund; 4,641.17 units 117
</TABLE>
(Continued)
-20-
<PAGE>
SCHEDULE I
----------
CATERPILLAR INC.
----------------
EMPLOYEES' INVESTMENT PLAN
--------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
NOVEMBER 30, 1996
-----------------
(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>
Fidelity Convertible Securities Fund; 370.60 units $ $ 7
Spartan High Income Fund; 685.43 units 9
Government Securities Fund; 2,149.67 units 21
Mortgage Securities Portfolio; 2,923.69 units 32
Magellan Fund; 39.23 units 3
Growth Company Fund; 77.74 units 3
New Millennium Fund; 2,520.50 units 52
Puritan Fund; 4,277.27 units 76
Low-Priced Stock Fund; 450.34 units 9
Growth and Income Portfolio; 1,789.46 units 56
Dividend Growth Fund; 705.33 units 14
Select Energy Portfolio; 646.91 units 16
Select Technology Portfolio; 685.04 units 41
Select Health Care Portfolio; 138.81 units 15
Select Utilities Growth Portfolio; 126.14 units 6
Select Natural Gas Portfolio; 203.11 units 3
Select Developing Communications Portfolio;
638.62 units 14
Select Home Finance Portfolio; 1,712.68 units 74
Select Energy Service Portfolio; 1,908.54 units 42
Select Biotechnology; 72.80 units 2
Select American Gold Portfolio; 149.87 units 4
Select Telecommunication Portfolio; 245.14 units 11
Select Food and Agriculture Portfolio; 50.03 units 2
Select Electronics Portfolio; 3,430.44 units 125
Select Computers Portfolio; 163.67 units 8
Export Fund; 109.98 units 2
Value Fund; 1,067.18 units 62
-------
$ 8,987
=======
</TABLE>
-21-
<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 Purchase Selling Lease incurred 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>
Caterpillar Inc. Common stock:
Series of 35 purchases $78,185 $ $ $ 47 $ 78,185 $ 78,138 $
Sale 26 14 26 12
</TABLE>
-22-
<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 12, 1997 related to the financial
statements of the Employees' Investment Plan, which is included in this Annual
Report on Form 11-K.
/s/ PRICE WATERHOUSE LLP
Peoria, Illinois
May 12, 1997
